InfoShop. Integrated Safeguards Data Sheet (Updated) Date ISDS Prepared/Updated: 09/06/

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized THE WORLD BANK GROUP InfoShop Integrated Safeguards Data Sheet (Updated) AWorhi dfrc of Posvrty Date Prepared/Updated: 09/06/ Section I-Basic Information September 6, 2002 A. Basic Project Data Country: YUGOSLAVIA, FED. REP. OF Project ID: P Project: PRIVATIZATION AND RESTRUCTURING Task Team Leader: Alexander Pankov OF BANKS AND ENTERPRISES TA CREDIT Authorized to Appraise Date: September 20, 2002 IBRD Amount ($m): Bank Approval: October 31, 2002 IDA Amount ($m): I 1.00 Managing Unit: ECSPF Sector: General industry and trade sector (50%); Lending Instrument: Technical Assistance Loan (TAL) Banking (50%) Status: Lending Theme: State enterprise/bank restructuring and privatizat (P) I.A.2. Project Objectives: The objective of the proposed project is to provide assistance to the Republic of Serbia in an effort to facilitate private sector-led economic growth by: (i) launching the restructuring and privatization process of some of the most problematic large socially owned enterprises (SOEs) in Serbia; and (ii) supporting the implementation of a comprehensive banking sector restructuring strategy aimed at the creation of a viable financial sector. Specifically, the project would: * Establish a consistent approach and methodology for the restructuring and privatization process of large SOEs that cannot be sold "as is". * Support the restructuring and subsequent privatization of a number of large loss-making enterprises by funding expert "restructuring agents" (i.e., investment banks, workout companies, and qualified consultancies) to prepare and implement "privatization through restructuring" plans, and privatize the saleable business units and sell the remaining assets. * Build the capacity of the Restructuring Unit at the Privatization Agency (PA) to supervise the restructuring agents in the imnplementation of the above mentioned privatization through restructuring plans. * Support the restructuring or liquidation of insolvent banks under the control of Bank Rehabilitation Agency (BRA) and the privatization of all state-majority owned banks. I.A.3. Project Description: A. Privatization tlhrough Restructuring of Socially Owned Enterprises Under this component, funding will be provided for technical assistance to the PA to support privatization through restructuring of a number of large SOEs using internationally reputed restructuring

2 2 agents hired through competitive tenders. A. 1. Privatization through Restructuring of Socially Owned Enterprises This sub-component will cover the major part of costs (namely, the retainer fee) of engaging the expert restructuring agents - investment banks, consulting companies, workout firms and other financial advisors - to implement each of the above-mentioned three stages of restructuring. Companies may be offered to agents either singly or in small "pools" of two to four companies. The success fee of the restructuring/sales agents, based on the sale of the successor companies and the remaining assets will be paid by the Government. A.2. Building the Institutional Capacity of the Restructuring Unit This sub-component will provide technical assistance to build up institutional competence of the PA to supervise the restructuring agents in the implementation of the above-mentioned restructuring/privatization plans. The assistance will cover the following: i. Advisory services for establishing the Restructuring Unit at the PA capable of monitoring the restructuring agents' performance, dealing with the enterprise creditors and employees, and negotiating with potential investors; ii. Consulting services to enhance institutional capacity of the Restructuring Unit with foreign and local expert advice and technical know-how for the restructuring and privatization process, including preparation of the company profiles, development of TORs, facilitation of contracting and bidding process for restructuring agents, organizing the creditors' meetings, and advising on legal issues; and iii. Procurement of hardware and software for the operation of the Restructuring Unit. A. 3. Project Management and Implementation This sub-component will support the work of the Project Management Unit (PMU), already established at the PA. The assistance will finance the following: i. Four local specialists: project administrator, two procurement specialists, and one disbursement/accounting specialist; and ii. Immediate operational expenses of the PMNU, including the cost of advertising in the international press for the recruitment of top-quality restructuring agents, and audit expenses. B. Bank Restructuring Program This component will support the continued implementation of the bank restructuring and privatization program by the BRA. B. 1. Bank Liquidation, Rehabilitation and Privatization This sub-component will cover the following: i. Consulting services to provide operational support for receiverships for insolvent banks currently in the BRA portfolio; ii. Consulting services to undertake the implementation of stabilization, rehabilitation and pre-privatization activities for state-owned banks in BRA portfolio that have been selected for privatization; and,

3 3 iii. Financial advisors to undertake the marketing and implementation of privatization tenders for state-majority owned banks under the control of the BRA. B.2. Project Management and Implementation This sub-component will support the work of the Project Management Unit (PMU), already established at the BRA. The assistance will finance the following: i. Four local specialists: project director, project administrator, procurement specialist, and disbursement/accounting specialist; and ii. Immediate operational expenses of the PMU, including audit expenses. Components: A. Privatization through Restructuring of Socially Owned Enterprises B. Bank Restructuring Program I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) The project would set in motion a privatization process for a group of large enterprises across Serbia that could ultimately have some environmental effect. However, none of the enterprises scheduled for privatization are located in proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas. B. Check Environmental Classification: F (Financial Intermediary Assessment) Comments: In accorance with the Bank's OP 4.01 on Environmental Assessment, the project is assigned environmental category Fl as the enterprises to be privatized/restructured will be decided after project implementation begins. The environmental section of the operations manual describing procedures and arrangements to address environmental liability issues under the project will be submitted to ECSSD for review prior to Appraisal. C Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) * Yes C No 0 TBD Forestry (OP/GP 4.36) 0 Yes * No 0 TBD

4 4 Natural Habitats (OP/BP 4.04) C: Yes 0 No CD TBD Safety of Dams (OP/BP 4.37) O Yes *No -C TBD Pest Management (OP 4.09) 0 Yes 0 No C TBD Involuntary Resettlement (OP/BP 4.12) 0 Yes * No O TBD Indigenous Peoples (OD 4.20) 0 Yes * No C TBD Cultural Property (OP 4.11) C 'Yes * No 'C TBD Projects in Disputed Territories (OP/BP/GP 7.60)* O Yes * No 0 TBD Projects in International Waterways (OP/BP/GP 7.50) 0 Yes 0 No C TBD *By supporting the proposed project, the Bank does not intend to prejudice thefinal determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.la. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. The environmental concerns primarily relate to environmental liability and compliance issues during the privatization of the socially-owned enterprises. II.D. I b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. Not applicable II.D.1c Describe any potential long term impacts due to anticipated future activities in the project area. Not applicable II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) Not applicable Il.D.3. Describe arrangement for the borrower to address safeguard issues The project does not involve any physical investments with direct environmental impacts; however, due attention will be given to environmental liability and compliance issues during the privatization process. As is the case in the tender privatization program undertaken by the Privatization Agency under existing WB PSD TA Grant, it was agreed with the Government that environmental assessment studies would be undertaken for each company that is to be sold under the proposed project. The PA will allocate funds to develop capacity in environmental screening where required and be able to call on private sector companies to undertake specialist assessment studies. The studies will be conducted by the qualified local and foreign firms, working under the guidance of restructuring agents responsible for preparation of privatization program for each enterprise. In each case, the environmental assessment will ascertain past liabilities and future environmental obligations, and its results will be made available to potential investors as part of the information memorandum for each enterprise put on sale. The Privatization Agency will share the assessment results with the Ministry of Environment to ensure that the compliance plans are prepared according to the standards of Serbia's environmental legislation. It was agreed with the Government that both the policies and regulatory aspects of environmental liability in privatization, and the environmental policies and procedures for implementing these regulations would be reviewed and, if necessary, strengthened. Under the proposed amendments to the Privatization Law, prepared in coordination with the Ministry of Environment, the state will be responsible for environmental

5 5 remediation for past environmental damage. The World Bank will support these amendments in the context of the next adjustment operation (PFSAC 2), which is scheduled for 1st quarter of 2003). While subject to negotiation, it is expected that in most cases the upgrading of facilities to meet Serbian environment regulations, where necessary, will be the responsibility of buyers. Il.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Ministry of Environment, Ministry of Finance, Ministry of Labor and Employment, and the business community are other key stakeholders who have also been involved in the design of the proposed project. E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [ ] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [ ] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [ ] S3. - No safeguard issues [X] SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues.

6 6 F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan. Expected Actual 9/15/2002 9/15/2002 9/16/2002 Date of distributing the Exec. Summary of the EA to the ED (For category A projects) Resettlement Action Plan/Framework. Expected Actual Indigenous Peoples Development Plan/Framework: Expected Actual Pest Management Plan: Expected Actual Dam Safety Management Plan: Expected Actual If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Alexander Pankov September 3, 2002 Project Safeguards Specialists 1: Project Safeguards Specialists 2: Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Marjory-Anne Bromhead September 6, 2002 Sector Manager/Director: Khaled F. Sherif September 6, 2002 For a list of World Bank news releases on projects and reports, click here SLARCH j FEEDOArK -' iuap _ HOWUCASE U