EUROPE AND CENTRAL ASIA Croatia Finance, Competitiveness and Innovation Global Practice IBRD/IDA Investment Project Financing FY 2013 Seq No: 12 ARCHIVED on 31-Oct-2018 ISR33160 Implementing Agencies: Ministry of Science, Education and Sports, Ministry of Finance, Croatia Key Dates Key Project Dates Bank Approval Date: 26-Apr-2013 Planned Mid Term Review Date: 15-Sep-2015 Original Closing Date: 30-Jun-2017 pdotable Project Development Objectives Effectiveness Date: 31-Jul-2013 Actual Mid-Term Review Date: 06-Nov-2015 Revised Closing Date: 31-Jan-2020 Project Development Objective (from Project Appraisal Document) The development objective of the proposed Project is to support Croatia to absorb EU Funds in the research and innovation sector bycapacitating selected public sector organizations and stimulating the demand for those funds from the business and scientific communities. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: Capacity Building for absorption of the EU Funds:(Cost $8.13 M) Component B: Research and innovation programs:(cost $17.67 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The progress to Project Development Objective (PDO) is satisfactory, on target to be achieved. As evidenced by the results framework indicators there is progress both in terms of outcome and output indicators. Thus, the capacity of the research and innovation public sector to absorb the EU funds has improved. Specifically, the government developed and adopted key strategic documents constituting ex-ante conditionality to use EU funds in R&D area. EUR 12.8 million have been absorbed from EU funds through a R&D grant scheme developed by the Ministry of Science and Education (MoSE), whereas the grant beneficiaries under the UKF have developed a R&D project pipeline worth EUR 24 million for the EU s Horizon 2020 program, of which some already awarded. The MoSE is well advanced in the preparation of the technical documentation for four large R&D infrastructure projects that will apply for European Regional Development Fund (ERDF), for a value estimated at EUR 159 million EUR (out of which 85% or 135 million is a grant from ERDF; and the remaining 15% will be funded from national component). The project has trained technical staff in the MoSE, and R&D practitioners in Unity for Knowledge Fund (UKF), Croatian Science Foundation (CSF) and HAMAG-BICRO in EU funds 10/31/2018 Page 1 of 7
IN00643204 management. About 200 knowledge-based companies and public research entities benefited from R&D programs of UKF/CSF and HAMAG- BICRO, which increases the pool of innovative firms and researchers groups able to apply for R&D allocations available under EU Funds. The implementation progress (IP) is satisfactory, with 90.5 of the loan funds contracted and about 84% of the loan funds disbursed. The remaining activities under Component A are mostly concentrated on the finalization of the technical documentation for the research infrastructure projects selected to be implemented with European Funds with a total value of about EUR 150 million. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- Moderate Moderate Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Increased absorption of EU funds in the research and innovation sector Prepared set of innovation and R&D policy documents required for absorption of the EU Funds (Text, Custom) Value The Strategy on The Strategy on Education, Science and Education, Science Technology was adopted and Technology was by the Parliament in adopted by the Ex ante October 2014. The Smart Parliament in October conditionalities for the No documentation is Specialization Strategy 2014. The Smart use of EU funds for available has been approved by Specialization Strategy R&D are met ( 3 the European has been approved by strategies). Commission in March the European 2016. The National Commission in March Research Infrastructure 2016. The National Roadmap has been Research 10/31/2018 Page 2 of 7
IN00643227 updated following the approval of the Smart Specialization Strategy. The strategy will be published on the MSES site. This is the last conditionality that remains to be fulfilled as to completely meet the target. Infrastructure Roadmap has been updated following the approval of the Smart Specialization Strategy. The strategy will be published on the MSES site. This is the last conditionality that remains to be fulfilled as to completely meet the target. Date 11-Feb-2013 01-Nov-2017 01-Nov-2017 31-Jan-2020 Among the documents required by EU guidelines are R&D Infrastructure Roadmap and Research and Innovation Strategy for Smart Specialization (RIS3). Six project proposals prepared for submission to EU Funds (Number, Custom) Value 0.00 5.00 5.00 6.00 Three R&D infrastructure project proposals including feasibility studies, cost-benefit and market analyses etc. submitted to ERDF. A grant scheme prepared by BICRO submitted to ERDF. A grant scheme prepared by UKF submitted to ESF. A grant scheme prepared by MSESfor technology transfer. IN00643230 Total value of projects in the pipeline for funding through the grant scheme managed by HAMAG-BICRO (in million Euro) (Amount(USD), Custom) Value 3.60 42.50 42.50 46.00 Building the future demand for projects that will be used to absorb EU funds. (The baseline is the value of projects in the pipeline during project preparation advance.) IN00643234 Total value of projects in the pipeline for funding by EU Funds originated from UKF funded projects (in million Euro) (Amount(USD), Custom) Value 0.00 25.30 25.30 24.00 Building the future demand for projects that will be used to absorb EU funds. (This indicator corresponds to the total value of project applications to EU Funds originated from UKF financed projects). IN00643235 Total value of projects funded by UKF and HAMAG-BICRO under the Project sub-financing (in million Euro) (Amount(USD), Custom) Value 2.50 17.50 17.50 19.50 10/31/2018 Page 3 of 7
IN00643228 IN00643232 IN00643243 IN00643244 Total value includes all HAMAG-BICRO and UKF programs supported under the Project. Total value of projects funded by CSF/UKF under the project subfinancing (EUR million) (Amount(USD), Custom Breakdown) Value 0.00 4.36 4.36 5.36 Total value of projects funded by Hamag-Bicro under the Project sub-financing (million EUR) (Amount(USD), Custom Breakdown) Value 2.50 13.14 13.14 14.14 Intermediate Results Indicators by Components Component A IN00643205 Number of trained staff in the MSES and its organizations and R&D institutions (e.g. HAMAG-BICRO, UKF, TTOs, CSF) on EU procedures for project preparation and implementation (Number, Custom) Value 8.00 135.00 135.00 30.00 Capacity building in the institutions that will receive the EU funds Number of workshops and conferences delivered to R&D institutions and beneficiaries (Number, Custom) Value 0.00 3.00 3.00 4.00 To share the findings and recommendations of the reports by consultants to finalize training process of MSES staff on EU procedures Information system established, functional and accessible to clients (Number, Custom) Value 0.00 0.00 0.00 1.00 10/31/2018 Page 4 of 7
IN00643226 IN00643229 IN00643236 IN00643237 IN00643238 Component B Total number of projects financed by HAMAG-BICRO (Number, Custom) Value 44.00 196.00 196.00 188.00 Total value of projects financed by HAMAG-BICRO (in million Euro) (Amount(USD), Custom) Value 2.50 20.30 20.30 17.80 IN00643231 Number of products/processes/designs developed in projects within HAMAG-BICRO for which IPR will be sought (Number, Custom) Value 0.00 92.00 92.00 72.00 IN00643233 Number of researchers from the public sector included in Program II and III projects within HAMAG-BICRO (Number, Custom) Value 4.00 88.00 88.00 80.00 Number of foreign research institutions collaborated with by UKF projects (Number, Custom) Value 0.00 53.00 53.00 49.00 Total value of projects committed and financed by UKF (in million Euros) (Amount(USD), Custom) Value 0.00 4.75 4.75 4.60 Number of collaboration projects between Diaspora and homeland researchers by UKF (Number, Custom) 10/31/2018 Page 5 of 7
IN00643239 IN00643240 IN00643245 IN00643246 Value 0.00 36.00 36.00 32.00 Number of commercialization and collaboration agreements signed with industry (Number, Custom) Value 0.00 0.00 0.00 4.00 Value of collaboration and commercialization agreements signed with industry (in thousands Euro) (Amount(USD), Custom) Value 0.00 0.00 0.00 200.00 IN00643241 The share of UKF grants submitted by female applicants (and the share of HAMAG- BICRO's projects submitted) by female applicants) (Percentage, Custom) Value 20.00 42.25 42.25 42.25 Date 13-Feb-2013 01-Nov-2017 01-Nov-2017 31-Jan-2020 For monitoring purposes only, gender oriented monitoring indicators in all supported programs The share of Hamag-Bicro's projects submitted by female applicants (Percentage, Custom Supplement) Value 0.00 26.60 26.60 26.60 IN00643242 The share of UKF grants assigned to female researchers (and the share of HAMAG-BICRO's projects assigned to female applicants) (Percentage, Custom) Value 10.00 43.74 43.74 31.43 Date 13-Feb-2013 01-Nov-2017 01-Nov-2017 31-Jan-2020 For monitoring purposes only, gender oriented monitoring indicators in all supported programs The share of Hamag-Bicro's projects assigned to female applicants (Percentage, Custom Supplement) Value 0.00 20.10 20.10 20.10 Data on Financial Performance 10/31/2018 Page 6 of 7
Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P127308 IBRD-82580 Effective USD 26.24 26.24 0.00 20.42 3.77 84% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127308 IBRD-82580 Effective 26-Apr-2013 22-May-2013 31-Jul-2013 30-Jun-2017 31-Jan-2020 Cumulative Disbursements Restructuring History Level 2 Approved on 11-Feb-2015,Level 2 Approved on 04-Apr-2017,Level 2 Approved on 01-Oct-2018 Related Project(s) There are no related projects. 10/31/2018 Page 7 of 7