The World Bank 1818 H Street N.W. (202) 477-1000
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD
INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS
CONFORMED COPY
October 13, 2010
H.E. Zoran Stavreski
Deputy Prime Minister and Minister of Finance
Ministry of Finance
Mito Hadzivasilev Jasmin bb
Skopje
Re: Loan No. MK-4793 Business Environment Reform and Institutional Strengthening
Project (BERIS)
Amendment Letter
Excellency:
We refer to the Loan Agreement (Business Environment Reform and Institutional Strengthening
Project) between the former Yugoslav Republic of Macedonia (the Borrower) and the International Bank
for Reconstruction and Development (the Bank) dated October 14, 2005, for the above-referenced
Project, as amended (Loan Agreement). We also refer to your requests on behalf of the Borrower
contained in your letters dated June 10, 2010 and June 29, 2010, to amend provisions of the Loan
Agreement.
I am pleased to inform you that, after careful consideration, the Bank has acceded to the
aforementioned requests. Therefore, the Loan Agreement is hereby amended as follows:
1. The table set forth in paragraph A.1 of Schedule 1 (Withdrawal of the Proceeds of the
Loan) to the Loan Agreement is amended as set forth in Attachment 1 hereto.
2. Part C of Schedule 2 (Description of the Project) to the Loan Agreement is amended to
read as follows:
“Part C: Industrial Policy and Enterprise Competitiveness Support
The provision for institutional development and capacity building of the Borrower’s
capacity to implement a European Union-compliant industrial policy, enterprise
competitiveness support and competition regime through (i) strengthening of the
institutional capacity of the IPU to design and implement industrial policy measures in
line with European Union requirements; (ii) strengthening of the institutional capacity of
the MOE and the SER to design and implement sector competitiveness policies in line
with European Union requirements and best practices; (iii) increasing public awareness
of industrial and competition policy issues; and (iv) providing training and seminars for
relevant stakeholders in industrial, competitiveness and competition policies, through the
provision of technical assistance, training, equipment, goods and study tours.”
All the other terms and conditions of the Loan Agreement, as amended hereby, shall remain in
full force and effect.
Please confirm your agreement to the foregoing amendment by signing and dating the
confirmation on the enclosed copy of this Amendment Letter and returning it to us. This amendment will
come into force and effect as of the date of your countersignature upon receipt by the Bank of the said
duly countersigned original Amendment Letter.
Sincerely,
By /s/ Jane Armitage
Country Director and Regional Coordinator
for South East Europe
Europe and Central Asia Region
CONFIRMED AND AGREED:
BORROWER
By /s/ Zoran Stavreski
Name: Zoran Stavreski
Title: Vice President of the Government and the Minister of Finance of the FYR Macedonia
Date: October 26, 2010
Attachment 1
SCHEDULE 1
(Withdrawal of the Proceeds of the Loan)
Amount of the Loan % of
Allocated Expenditures
Category Expressed in Euro to be financed
(1) Goods, consultants’
services, including auditing
services, Incremental
operating costs and Training 5,356,000 100%
(2) Goods under Part B (i)
of the Project for the
Bureau of Metrology 1,000,000 100%
(3) Front-end fee 44,000 Amount due under
Section 2.04 of this
Agreement
TOTAL 6,400,000
CONFORMED COPY
Supplemental Letter No. 2
REPUBLIC OF MACEDONIA
October 13, 2010
International Bank for
Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Re: Loan Number 4793-MK
(Business Environment Reform and Institutional Strengthening Project)
Revised Project Monitoring Indicators
Dear Sirs and Mesdames:
This refers to the provisions of Section B.1 (b) and Section C.1 (a) of Schedule 5 to the Loan
Agreement between the Borrower and the International Bank for Reconstruction and Development (the
Bank) for the above-captioned Project. The Borrower hereby confirms to the Bank that the revised
indicators set out in the attachment to this letter shall serve as the basis for the Borrower to monitor and
evaluate the progress of the Project and the achievement of the objectives thereof.
Very truly yours,
REPUBLIC OF MACEDONIA
By /s/ Zoran Stavreski
Authorized Representative
Attachment
Attachment to Supplemental Letter No. 2
Performance Monitoring Indicators
PDO Outcome Indicators Use of Outcome Information
Strengthening of the capacity of the Number of EU Directives dealing Orient Government efforts to further
Government to improve selected with business regulation and improve business environment and
areas of the business environment in operation transposed in the national further integrate with the EU.
an-EU oriented context. legislation.
Ranking on the ease of doing
business in the Doing Business
Report.
Overall assessment of the business
environment areas supported by the
Project in the annual EU Progress
Report.
Intermediate Results Results Indicators for Each Use of Results Monitoring
One per Component Component
Business Regulation Component: Business Regulation Component: Business Regulation Component:
Government has well functioning Cumulative number of regulatory Reports, consultation with the
mechanisms and policies in place regimes in business law streamlined business community, results of
for applying the Guillotine and other using Regulatory Impact surveys are used to identify
RIA complementary mechanism to Assessment. regulatory regimes for reform;
business sector regulations. adjust current ongoing reform
Cumulative number of laws and by- activities, and/or re-focus on
laws streamlined using Regulatory regulatory and institutional
Guillotine. weaknesses so as to ensure
alignment between development
objectives and business environment
sector needs. Adjustments might
include decisions to: (i) change
scope/content of the training on RIA
and complementary methodologies;
(ii) further strengthen consultation
mechanisms with the business
community; etc.
MSTQ Component: MSTQ Component: MSTQ Component:
The Bureau of Metrology (BoM), Cumulative number of trained Internal statistics are used to: (i)
Institute for Standardization (ISRM) technical staff at the MSTQ guide the implementation and
and Institute for Accreditation institutions. update of the development strategy
(IARM) have acquired the ability to of each MSTQ institution; and (ii)
monitor and evaluate business sector Cumulative number of types of adjust service delivery, procurement
needs for metrology, testing, measurements (field+ranges) in plans for new equipment, and scope
standards and quality services. which the Bureau of Metrology is and content of training programs.
able to provide calibration services
Annual number of calibrations done
by the Bureau of Metrology in line
with EU standards.
Cumulative number of
accreditations granted in accordance
with European cooperation for
Accreditation (EA) standards.
Cumulative number of standards
harmonized with EU (CEN and
CENELEC).
Industrial and Enterprise Policy Industrial and Enterprise Policy Industrial and Enterprise Policy
and Competitiveness Support and Competitiveness Support and Competitiveness Support
Component: Component: Component:
The Industrial Policy Unit and SME Cumulative number of national The MoE website include
Department at the Ministry of policies and strategies on information on the activities,
Economy (MOE) and the General competitiveness developed and strategies, trainings and new
Secretariat-Sector for Regulatory adopted by Government in line with legislation affecting industrial,
Reforms (SER) have developed the EU. competitiveness, and competition
capacity to effectively implement policies.
the national Industrial Policy Cumulative number of Government
Strategy 2009-2020 and SME officials trained in implementation Reports, consultation with the
competitiveness strategies in line and monitoring of national business community, results of
with EU. competitiveness policies. surveys and internal statistics are
used by the MoE and SER to decide
whether MoE and SER should
organize additional seminars for
government or selected line
ministries and other stakeholders.
Access to Information Access to Information Access to Information
Component: Component: Component:
The Central Registry implements a Cumulative number of days required to Internal statistics are used to adjust
simple and transparent business register a business (in working days). business registration procedures as
registration system. required.
Cumulative number of business
registrations .
Project Coordination Support Project Coordination Support Project Coordination Support
Component: Component: Component:
The PIU/MOE and the SER have Annual number of workshops Workshops are used to discuss
acquired the capacity to monitor and organized by the MoE and SER to progress towards development
evaluate progress in improving the discuss Government’s progress in objective, and indicate steps to be
business environment. business environment reforms with taken for timely achievement of the
relevant stakeholders, including objective.
progress made in BERIS-supported
reforms.
Arrangements for results monitoring
MACEDONIA, FORMER YUGOSLAV REPUBLIC OF: BUSINESS ENVIRONMENT REFORM & INSTITUTION
STRENGTHENING PROJECT
Project Development Objective (PDO):
Strengthening of the capacity of the Government to improve selected areas of the business environment in an-EU oriented context.
Revised Project Development Objective:
Not revised
D=Dropp Target Values
ed Data
Responsibili
Core
PDO Level Results C=Contin Unit of Baseline Source/
ue
Frequency ty for Data
Indicators* Measure 2005 YR 1 YR 2 YR 3 YR 4 YR5 Methodolog
N= New Collection
y
R=Revised
Indicator One:
New Number
Number of EU and Text N/A 1 N/A 1 1 Company Law Annual Reports, Ministry of
Directives dealing and Securities interviews, Economy
with business Business Competitio Corporate Shareholde Law EU Progress and Sector
regulation and regulation n policies governan r rights fully Report, for Economic
operation transposed not in strengthene ce strengthen compatible and
in the national compliance d regulation ed with EU Regulatory
legislation. with EU in line directives Reforms at
requirement with EU the General
s Secretariat
Ranking on the ease New Number
of doing business in N/A N/A 100 80 70 50 Annual Doing
the Doing Business Business
Report. Report
RCA 248423. WUI 64145 FAX (202) 477-6391
-8-
Overall assessment of New Text N/A N/A Improvem Significant Recommendati Annual EU Progress
the business ent noted improveme on to start Report
environment areas in the nt noted in negotiations for
supported by the Free Free accession to the
Project in the annual Movemen Movement European
EU Progress Report. t of of Goods, Union
Goods, Free
Free Movement
Movemen of Capital,
t of Company
Capital Law,
and Competitio
Company n Policy
Law and
Chapters Industrial
of the Policy
acquis Chapters
of the
acquis
INTERMEDIATE RESULTS
Intermediate Result (Component One – Business Regulation): Government has well functioning mechanisms and policies in place for applying the Guillotine and other RIA
complementary mechanism to business sector regulations.
Revised Intermediate Result (Component One): Not revised
Intermediate Result
R Number 0 0 0 1 2 2
indicator One: Semi-annual Reports, Ministry
Cumulative number of results of of
regulatory regimes in surveys, Economy/
business law interviews PIU
streamlined using
Regulatory Impact
Assessment
Intermediate Result R Number 0 0 0 0 50 laws 500 by-laws Semi-annual Progress Ministry
indicator Two: reports, of
Cumulative number of publications Economy/
laws and by-laws , PCU in
streamlined using amendment Coordinat
-9-
Regulatory Guillotine to ion with
legislation, the
interviews General
Secretaria
t
:
Intermediate Result (Component Two – MSTQ System): The Bureau of Metrology (BoM), Institute for Standardization (ISRM) and Institute for Accreditation (IARM)
have acquired the ability to monitor and evaluate business sector needs for metrology, testing, standards and quality services.
Revised Intermediate Result (Component Two): Not revised
Intermediate Result New Number 40 N/A 50 60 70 80 Semi-annual/ Reports, MoE,
indicator One: Annual results of BoM,
Cumulative number of surveys, ISRM,
trained technical staff interviews IARM,
at the MSTQ
institutions
Intermediate Result R Number 0 0 0 10 20 30 Semi-annual/ Reports, BoM and
indicator Two: Annual results of MoE/PCU
Cumulative number of surveys,
types of measurements interviews
(field+ranges) in
which the Bureau of
Metrology is able to
provide calibration
services.
Intermediate Result R Number 0 0 0 10 50 100 Semi- Reports, BoM and
indicator Three: annual/Annual results of MoE/PCU
Annual number of surveys,
calibrations done by interviews
the Bureau of
Metrology in line with
EU standards
- 10 -
Intermediate Result R Number 3 0 10 10 20 10 Semi- Reports, IARM and
Indicator Four: annual/Annual results of MoE/PCU
Cumulative number of surveys,
accreditations granted interviews
in accordance with
European cooperation
for Accreditation (EA)
standards
Intermediate Result R Number 18 1,00 1,000 1,000 2,000 Semi- Reports, ISRM and
Indicator Five: 0 0 annual/Annual results of MoE/PCU
Cumulative number of surveys,
standards harmonized interviews
with EU (CEN and
CENELEC)
:
Intermediate Result (Component Three – Competition Policy): The Commission for Protection of Competition (CPC) and State Aid Commission (SaC) have developed the
capacity to implement effectively competition and state aid policies and have strengthened their advocacy role.
Revised Intermediate Result (Component Three - Industrial and Enterprise Policy and Competitiveness Support): The Department for Industrial Policy and SME
Department at the Ministry of Economy (MOE) and the General Secretariat-Sector for Regulatory Reforms (SER) have developed the capacity to effectively implement the
national Industrial Policy Strategy 2009-2020 and SME competitiveness strategies in line with EU.
Intermediate Result New Numbe 0 0 0 1 1 2 Semi- EU progress MoE and
indicator One: r annual/Annual report, SER
Cumulative number of MOE’s
national policies and website and
strategies on progress
competitiveness reports,
developed and interviews.
adopted by
Government in line
with EU
Intermediate Result New Numbe 0 N/A N/A 10 20 20 Semi- Reports, MoE and
indicator Two: r annual/Annual surveys SER
Cumulative number of
Government officials
trained in
implementation and
monitoring of national
competitiveness
policies
- 11 -
:
Intermediate Result (Component Four – Access to Information): The Central Registry implements a simple and transparent business registration system.
Revised Intermediate Result (Component Four): Not revised
Intermediate Result C Number 40 40 30 10 8 5 Semi- Internal CRM and
indicator One: annual/Annual statistics MoE/PCU
Cumulative number of and Doing
days required to Business
register a business (in Report
working days)
Intermediate Result New Number N/A 80,000 90,000 95,000 100,000 105,000 Semi- Reports, CRM and
Indicator Two: annual/Annual internal MoE/PCU
Cumulative number of statistics
business registrations
:
Intermediate Result (Component Five – Project Coordination Support): The PCU/MOE and the SER have acquired the capacity to monitor and evaluate progress in
improving the business environment.
Revised Intermediate Result (Component Five): Not revised
Annual number of R Number 0 2 2 4 8 4 Semi Reports,
workshops organized annual/Annual interviews,
by the MoE and SER meetings
to discuss
Government’s
progress in business
environment reforms
with relevant
stakeholders,
including progress
made in BERIS-
supported reforms.
:
The World Bank 1818 H Street N.W. (202) 477-1000
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD
INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS
October 14, 2010
H.E. Zoran Stavreski
Deputy Prime Minister and Minister of Finance
Ministry of Finance
Mito Hadzivasilev Jasmin bb
Skopje
Dear Excellency,
Re: Business Environment Reform and Institutional Strengthening Project (Loan 4793-
MK) Notification of Project Restructuring
I am pleased to inform you that the International Bank for Reconstruction and
Development (the Bank) approved on October 6, 2010, the proposal to restructure the
FYR Macedonia Business Environment Reform and Institution Strengthening Project
(Loan No. 4793-MK). Following the approval, the Restructuring Paper (attached), setting
for the restructuring proposal, will now be made publicly available, in accordance with
World Bank procedures that apply to disclosure of Project Appraisal Documents.
Please confirm your concurrence by counter-signing and returning to us one
countersigned Amendment Letter and a signed Supplemental letter No.2 to the Loan
Agreement.
Sincerely,
Jane Armitage
Country Director and Regional Coordinator
for Southeast Europe
Europe and Central Asia Region
Attachments:
Project Paper
Loan Amendment Letter
Supplemental Letter No.2 to Loan Agreement
RCA 248423. WUI 64145 FAX (202) 477-6391
- 13 -
cc: H.E. Vladimir Pesevski, Deputy Prime Minister for Economic Affairs
H.E. Fatmir Besimi, Minister of Economy
Ms. Suzana Peneva, Head of EU Harmonization and International Finance
Department, Ministry of Finance
Mr. Rudolf Jan Treffers, Executive Director, World Bank
Cleared with and Julie Rieger / Nikolai Soubbotin (LEGEM), Nicholai Chistyakov
bcc: (LOA), Aleksandar Crnomarkovic (FM), Lalit Raina (ECSPF)
Distribution: Macedonia DL; ECSPF Sector Staff; ECACA Sector Staff;
ECSOQ Sector Staff; FINCR ECA; loa-eca; Sophie Sirtaine,
Sylvie Bossoutrot, Paula Genis (ECSF2); Gordana Popovik,
Anne T. John (ECSF1); Nicholay Chistyakov, Hannah Koilpillai
(CTRFC); Aleksandar Crnomarkovic (ECSO3); Arben Maho
(ECSO2); Evgenij Najdov (ECSP2), Lilia Burunciuc, Denis
Boskovski, Luan Aliu (ECCMK);