The World Bank
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
1818 H Street N.W.
Washington, D.C. 20433
U.S.A.
(202) 477-1000
Cable Address: INTBAFRAD
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
Loan) to the Loan Agreement is amended as set forth in Attachment 1 hereto.
the
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/
Name:
Title:
Date:
Zoran Stavreski
Zoran Stavreski
Vice President of the Government and the Minister of Finance of the FYR Macedonia
October 26, 2010
Attachment 1
SCHEDULE 1
(Withdrawal of the Proceeds of the Loan)
Category
Amount of the Loan
Allocated
Expressed in Euro
% of
Expenditures
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
TOTAL
44,000
6,400,000
Amount due under
Section 2.04 of this
Agreement
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
Strengthening of the capacity of the
Government to improve selected
areas of the business environment in
an-EU oriented context.
Outcome Indicators
Number of EU Directives dealing
with business regulation and
operation transposed in the national
legislation.
Use of Outcome Information
Orient Government efforts to further
improve business environment and
further integrate with the EU.
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
One per Component
Business Regulation Component:
Results Indicators for Each
Component
Business Regulation Component:
Government has well functioning
mechanisms and policies in place
for applying the Guillotine and other
RIA complementary mechanism to
business sector regulations.
Cumulative number of regulatory
regimes in business law streamlined
using Regulatory Impact
Assessment.
Cumulative number of laws and bylaws streamlined using Regulatory
Guillotine.
Use of Results Monitoring
Business Regulation Component:
Reports, consultation with the
business community, results of
surveys are used to identify
regulatory regimes for reform;
adjust current ongoing reform
activities, and/or re-focus on
regulatory and institutional
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),
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.
Cumulative number of trained
technical staff at the MSTQ
institutions.
Internal statistics are used to: (i)
guide the implementation and
update of the development strategy
of each MSTQ institution; and (ii)
adjust service delivery, procurement
plans for new equipment, and scope
and content of training programs.
Cumulative number of types of
measurements (field+ranges) in
which the Bureau of Metrology is
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
and Competitiveness Support
Component:
Industrial and Enterprise Policy
and Competitiveness Support
Component:
Industrial and Enterprise Policy
and Competitiveness Support
Component:
The Industrial Policy Unit 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.
Cumulative number of national
policies and strategies on
competitiveness developed and
adopted by Government in line with
EU.
The MoE website include
information on the activities,
strategies, trainings and new
legislation affecting industrial,
competitiveness, and competition
policies.
Access to Information
Component:
Access to Information
Component:
Access to Information
Component:
The Central Registry implements a
simple and transparent business
registration system.
Cumulative number of days required to
register a business (in working days).
Internal statistics are used to adjust
business registration procedures as
required.
Project Coordination Support
Component:
Project Coordination Support
Component:
Project Coordination Support
Component:
The PIU/MOE and the SER have
acquired the capacity to monitor and
evaluate progress in improving the
business environment.
Annual number of workshops
organized by the MoE and SER to
discuss Government’s progress in
business environment reforms with
relevant stakeholders, including
progress made in BERIS-supported
reforms.
Workshops are used to discuss
progress towards development
objective, and indicate steps to be
taken for timely achievement of the
objective.
Cumulative number of Government
officials trained in implementation
and monitoring of national
competitiveness policies.
Cumulative number of business
registrations .
Reports, consultation with the
business community, results of
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.
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.
PDO Level Results
Indicators*
Core
Revised Project Development Objective:
Not revised
D=Dropp
ed
C=Contin
Unit of
ue
Measure
N= New
R=Revised
Target Values
Baseline
2005
Frequency
YR 1
YR 2
YR 3
YR 4
YR5
Data
Source/
Methodolog
y
Responsibili
ty for Data
Collection
Indicator One:
New
Number of EU
Directives dealing
with business
regulation and
operation transposed
in the national
legislation.
Ranking on the ease
of doing business in
the Doing Business
Report.
New
Number
and Text
N/A
1
Business
regulation
not in
compliance
with EU
requirement
s
Competitio
n policies
strengthene
d
N/A
N/A
N/A
1
1
Corporate
governan
ce
regulation
in line
with EU
Shareholde
r rights
strengthen
ed
80
70
Company Law
and Securities
Law
fully
compatible
with EU
directives
Annual
Reports,
interviews,
EU Progress
Report,
50
Annual
Doing
Business
Report
Number
RCA 248423.  WUI 64145  FAX (202) 477-6391
100
Ministry of
Economy
and Sector
for Economic
and
Regulatory
Reforms at
the General
Secretariat
-8-
Overall assessment of
the business
environment areas
supported by the
Project in the annual
EU Progress Report.
New
Text
N/A
N/A
Improvem
ent noted
in the
Free
Movemen
t of
Goods,
Free
Movemen
t of
Capital
and
Company
Law
Chapters
of the
acquis
Significant
improveme
nt noted in
Free
Movement
of Goods,
Free
Movement
of Capital,
Company
Law,
Competitio
n Policy
and
Industrial
Policy
Chapters
of the
acquis
Recommendati
on to start
negotiations for
accession to the
European
Union
Annual
EU Progress
Report
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
indicator One:
Cumulative number of
regulatory regimes in
business law
streamlined using
Regulatory Impact
Assessment
Intermediate Result
indicator Two:
Cumulative number of
laws and by-laws
streamlined using
R
Number
0
0
0
1
2
2
Semi-annual
Reports,
results of
surveys,
interviews
Ministry
of
Economy/
PIU
R
Number
0
0
0
0
50 laws
500 by-laws
Semi-annual
Progress
reports,
publications
,
amendment
Ministry
of
Economy/
PCU in
Coordinat
-9-
Regulatory Guillotine
to
legislation,
interviews
ion with
the
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
indicator One:
Cumulative number of
trained technical staff
at the MSTQ
institutions
Intermediate Result
indicator Two:
Cumulative number of
types of measurements
(field+ranges) in
which the Bureau of
Metrology is able to
provide calibration
services.
Intermediate Result
indicator Three:
Annual number of
calibrations done by
the Bureau of
Metrology in line with
EU standards
New
Number
40
N/A
50
60
70
80
Semi-annual/
Annual
Reports,
results of
surveys,
interviews
MoE,
BoM,
ISRM,
IARM,
R
Number
0
0
0
10
20
30
Semi-annual/
Annual
Reports,
results of
surveys,
interviews
BoM and
MoE/PCU
R
Number
0
0
0
10
50
100
Semiannual/Annual
Reports,
results of
surveys,
interviews
BoM and
MoE/PCU
- 10 -
Intermediate Result
Indicator Four:
Cumulative number of
accreditations granted
in accordance with
European cooperation
for Accreditation (EA)
standards
Intermediate Result
Indicator Five:
Cumulative number of
standards harmonized
with EU (CEN and
CENELEC)
R
Number
3
R
Number
18
0
10
10
20
10
Semiannual/Annual
Reports,
results of
surveys,
interviews
IARM and
MoE/PCU
1,00
0
1,000
1,000
2,000
0
Semiannual/Annual
Reports,
results of
surveys,
interviews
ISRM and
MoE/PCU
:
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
0
0
1
1
2
SemiEU progress MoE and
New
Numbe 0
indicator One:
annual/Annual
report,
SER
r
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
N/A
N/A 10
20
20
SemiReports,
MoE and
New
Numbe 0
indicator Two:
annual/Annual
surveys
SER
r
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
indicator One:
Cumulative number of
days required to
register a business (in
working days)
Intermediate Result
Indicator Two:
Cumulative number of
business registrations
C
Number
40
40
30
10
8
5
Semiannual/Annual
Internal
statistics
and Doing
Business
Report
CRM and
MoE/PCU
New
Number
N/A
80,000
90,000
95,000
100,000
105,000
Semiannual/Annual
Reports,
internal
statistics
CRM and
MoE/PCU
:
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
workshops organized
by the MoE and SER
to discuss
Government’s
progress in business
environment reforms
with relevant
stakeholders,
including progress
made in BERISsupported reforms.
:
R
Number
0
2
2
4
8
4
Semi
annual/Annual
Reports,
interviews,
meetings
The World Bank
1818 H Street N.W.
Washington, D.C. 20433
U.S.A.
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
(202) 477-1000
Cable Address: INTBAFRAD
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 4793MK) 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);