The Monthly Newsletter of the World Bank’s Europe and Central Asia (ECA) Region

July 2003

Highlights in this issue
- Feature Story: Roma Conference
- Bank Hosts Evening of Bosnian Art and Music
- Johannes Linn’s Travel and Outreach

Also
- Country and Sector News
- Announcements
- New and Revised Project Documents Online

Highlights in this issue

Feature Story: Roma Conference
The "Roma in an Expanding Europe: Challenges for the Future" conference wrapped up in Budapest on July 1 with government leaders of Central and Southeast Europe endorsing a new approach to reduce poverty among Roma and include them in European society through better education, health care, housing and job opportunities.

The approach includes a Decade of Roma Inclusion and a Roma Education Fund. The Decade of Roma Inclusion, to start in 2005, will include targets to be agreed over next 12 months. They will likely include goals related to poverty reduction, health, school enrollment and employment. The Roma Education Fund will provide funding to raise the educational status and performance of the Roma. The new education fund, which is expected to take a year to set up, will provide resources for new and innovative approaches aimed at boosting Roma educational opportunities. Hungary’s Prime Minister Peter Medgyessy will lead the task force following up on next steps. Once detailed plans have been agreed, the World Bank will help organize a pledging conference.

The conference brought together an unprecedented range of top government representatives, senior officials from international organizations, and leaders from the Roma community and civil society. The event was co-sponsored by the World Bank, the Open Society Institute, and the European Commission. Other contributors included the UNDP, the Council of Europe Development Bank, and the governments of Hungary, Sweden and Finland.

For more information on the Roma Conference, visit http://www.worldbank.org/romaconference


Bank Hosts Evening of Bosnian Art and Music
High-ranking officials from Bosnia and Herzegovina and the international community, members of the US Congress, World Bank representatives, ambassadors and other officials gathered at World Bank Group headquarters on June 16 for an "Evening of Culture and Art from Bosnia and Herzegovina." The art exhibit and concert by young artists from Bosnia and Herzegovina and the United States capped a week-long celebration of Bosnian heritage, sponsored by the World Bank and the America-Bosnia Cultural Foundation. Also occurring was an art exhibition entitled "Bridges of Understanding: America-Bosnia and Herzegovina Contemporary Art." In an effort to bring the countries together through the language of visual arts, the exhibition featured artwork by seventeen artists from cities across Bosnia and Herzegovina, along with selections by three American artists. Before Monday's concert, World Bank President Wolfensohn met with a delegation of Bosnian officials including Prime Minister Adnan Terzic, Minister of Foreign Affairs Mladen Ivanic, and Bosnia and Herzegovina Ambassador to the UN Mirza Kusljugic to discuss progress made and challenges ahead for the country. For more information, click here.


Johannes Linn’s Travels
In June, World Bank Europe and Central Asia Vice President Johannes Linn traveled to Germany for the Berlin Finance Conference. He also traveled to Latvia to meet government officials and to review Bank-financed projects in Latvia in connection with the 10th anniversary of Bank operations in the country. In Lithuania, Johannes met with local and national officials, and also held discussions with important figures in Lithuania’s knowledge economy sector. He also visited the Mother and Child Care Center in Vilnius, which was financed by a Bank project. In Poland, his activities included high level meetings in Warsaw, a consultative meeting on coal mining, and a visit to an education project. Johannes next visited Slovakia, including four Roma settlements in the Spis Region. He then went on to Hungary for the Roma Conference.


Country and Sector News

ALBANIA
Social, Economic Infrastructure Supported
The World Bank’s Board of Executive Directors on June 25 approved a $15 million credit to finance a Second Community Works Project for Albania. This project will support community micro-projects for improving access to quality social and economic infrastructure and social services, as well as promote institutional development at the local level. For more information, click here.


AZERBAIJAN
Credit Supports Irrigation Distribution
On June 18,the Bank’s Board of Executive Directors approved a US$35 million equivalent credit to the Azerbaijan Republic to support the Irrigation Distribution System and Management Improvement Project, which will improve effectiveness and financial viability of irrigation water distribution and management for 56,000 hectares of land. For more information, click here.

BOSNIA AND HERZEGOVINA
Two Projects Approved
The Bank's Board of Executive Directors recently approved two credits for Bosnia and Herzegovina: the Social Insurance Technical Assistance Project for US$7.0 million, and the Forest Development and Conservation Project for US$3.74 million. The Social Insurance Technical Assistance Project will strengthen the effectiveness of health and pension insurance systems by the provision of high quality technical assistance and training to help implement existing reforms and to help design options for future social insurance reforms, while the Forest Development and Conservation Project will assist with the implementation of mandated reforms in forest organization and management. For more information, click here.


PRSP Draft Posted
The second draft of the Bosnia and Herzegovina Poverty Reduction Strategy Paper (PRSP) has now been posted online in Bosnian and in English. For more information, visit http://www.prsp.info/

BULGARIA
Bank Supports Revenue Administration Reform
The Bank has approved a Euros 31.9 million loan for the Revenue Administration Reform Project in Bulgaria, which will help the country develop a modern and effective revenue collection system. The new system will encourage citizen voice and participation, transparency and provide a level playing field for businesses. The system ultimately should lead to the lowering of direct taxation and insurance rates. For more information, visit http://www.worldbank.bg/press/2003-8-eccbg.phtml

CROATIA
Small Grants for NGOs in Croatia
Eight Croatian NGOs were selected and awarded World Bank grants totaling US$30,000 for the implementation of projects focused on civic engagement for the empowerment of marginalized and vulnerable groups. Country Director Andrew Vorkink presented the awards during a signing ceremony in Zagreb on June 10. NGOs and projects receiving grants included the Association of Roma for Roma Croatia; the Croatian Law Center; the Women’s Center for Sexuality, Prevention and Research, and Combating Sexual Violence; and the Croatian Association of Deaf-Blind Persons. For more information about the Croatia Small Grants Program, click here.

Croatia, Bank sign EU CARDS Grant Agreement
Croatia and the World Bank signed a Grant Agreement for the Real Property Registration and Cadastre Project, in the amount of 4.9 million Euros, provided by the European Union under its CARDS 2002 (Community Assistance for Reconstruction, Development and Stabilization) program for Croatia on June 24. The grant will be used for co-financing activities aimed at building an efficient land administration system and contributing to the development of efficient real property markets.

GEORGIA
Developing Forests, Reducing Poverty
A Forests Development Project Launch Workshoptook place on June 19 in Tbilisi to discuss the project, which was approved by Bank in August 2002, and became effective in April 2003. The project will establish sound forest management systems that work to maximize the potential of Georgia's forests to reduce rural poverty on an environmentally sustainable basis. The project will work to protect existing forests while reforesting selected priority areas. For more information about the project, visit http://www4.worldbank.org/sprojects/Project.asp?pid=P044800

LATVIA
Small Grants Winners Announced
The World Bank and UNDP recently announced the awardees for the Joint Small Grants Program in Latvia. Of the 122 project applications received, 10 NGOs received awards, including the Fraternity of Prisons, Kuldiga Pensioners’ Association "Rumbina", and Valmiera district Sports Club of Children and Youngsters with Disabilities "StarsS". The World Bank’s Latvia office leveraged $15,000 in funding from the UNDP; under the joint program, $45.000 in grants were awarded to civil society organizations. For more information about the Small Grants Program, click here.

World Bank Central Europe and Baltic Director and UN Regional Representative Meet Latvian NGOs
On June 6, the World Bank and UNDP organized field visits to Livani and Garsene to view results and achievements of NGO projects supported under the Latvia Small Grants Program. World Bank Director for Central Europe and Baltic Countries Roger Grawe and UN Regional Representative Gabriele Köhler met representatives of the local authorities and acquainted themselves with the project results in the two communities.

Lithuania
Vilnius Heat Demand Management Project
In June, the Board approved a US$6.5 million grant from the Global Environment Facility (GEF) to finance the Vilnius Heat Demand Management Project, which aims to reduce greenhouse gases emissions from the Vilnius District heating system by implementing financially sustainable and replicable energy efficiency investments in the residential sector of Vilnius City. For more information, click here.

Knowledge Economy Conference Held
In Vilnius on June 17, the Bank and the Lithuania Knowledge Economy Forum hosted a conference entitled "The World Bank Knowledge Economy Study - a Roadmap for Action".Mantas Nocius, Lithuania Country Manager, delivered the address at the conference, which was held at the Lithuanian Parliament (Seimas). The event provided a venue for discussing the Lithuania Knowledge Economy report, launching the Lithuanian version of the report, and laying possible strategies for implementing report recommendations. Participants represented a wide spectrum of Lithuanian civil society, ranging from local authorities, the private sector, MPs, Government officials, academia, and NGOs. For more information, visit http://www.worldbank.lt/

MOLDOVA
Two Projects Approved
The Bank recently approved a US$7.21 million equivalent IDA credit for the Trade and Transport Facilitation in Southeast Europe Project in Moldova, with a major focus on reducing non-tariff costs to trade and transport, increasing revenue and compliance, and reducing smuggling and corruption at border crossings. The project will, among other things, specifically strengthen customs institutional capacity; modernize and integrate customs information systems for border processing and clearance of shipments; and develop a transit control system.

The Board of Executive Directors also approved an IDA grant of US$5.5 million equivalent for the Moldova AIDS Control Project, which will help improve Moldova’s health conditions by reducing mortality, morbidity and transmission of HIV/AIDS and other sexually transmitted infections. For more information about the AIDS Control project, click here.

For more on the Trade and Transport Facilitation Project, click here.

ROMANIA
Farewell to Ziad Alahdad
The World Bank’s Romania Country office and the Romanian government have wished a fond farewell to outgoing Country Manager Ziad Alahdad. A number of events marked Ziad's departure, including a reception organized by the country office, which was attended by over 200 guests including Cabinet members, the Governor of the Central Bank, and many collaborators and friends. President Iliescu opened the ceremony, and declared his admiration for Ziad. On June 25, Ziad was invited to attend the Cabinet meeting and to stand beside the Prime Minister, an honor meant to mark Ziad's contribution to Romania's reform process. For more information about the World Bank’s work in Romania, visit http://www.worldbank.org.ro/

SERBIA
PFSAC II Approved
The Bank’s Board of Directors recently approved a US$80 million IDA credit for Serbia and Montenegro for the Private and Financial Structural Adjustment Credit (PFSAC II) that will provide financing for the Government of Serbia with the aim of supporting regulatory, institutional, and structural reforms in private and financial sectors. The overall objective of the PFSAC II is to help the Government of Serbia improve the business environment, strengthen the financial system, privatize and/or liquidate majority state-owned banks, and privatize and restructure socially-owned enterprises. For more information, click here.


SLOVAK REPUBLIC
Bank Supports Public Finance Reform
The World Bank has approved a Euros 5 million Public Finance Management Project for Slovakia, which will support the government’s Public Finance Reform Strategy by strengthening the country’s institutional capacity to use public resources more effectively, efficiently and in line with government priorities. For more information, click here.

"European Integration, Regional Policy, and Growth" Presentation
The Bank’s Bratislava office, together with the Institute for Financial Policy at the Ministry of Finance in Slovakia, held a presentation on June 24 on the recently published book "European Integration, Regional Policy, and Growth," edited by Bernard Funck and Lodovico Pizzati. The presentation was attended by government ministers, representatives of the national bank and other financial institutions, and participants from academia and think tanks. To read the publication overview or to purchase the study, visit publications.

UKRAINE
Two Projects Approved
The Bank recently approved a US$40 millionloan for theFirst State Tax Service Modernization Project in Ukraine. The loan is the first of two proposed loans under an adaptable program lending instrument. The program will supporta decade-long, comprehensive modernization of tax administration, and will lay the foundation for a sustainable tax system in Ukraine.

A US$195.13 million loan for the Rural Land Titling and Cadastre Development Project in Ukraine has also been approved. The project will establish a national cadastre and title registry system, privatize land parcels to individuals in rural areas on an equitable basis, establish their property rights by issuing state deeds for land, and encourage the restructuring of farms into more efficient units, with due consideration for environmental and social safeguards. For more information on the land reform project, click here.


Announcements

New ECA Corporate Governance Regional Website Unveiled
On June 30, a regional website for institutes of directors in the ECA Region was launched to provide a dynamic interactive forum for discussion by the corporate governance community, both within the ECA Region and with developing and industrialized countries. The website is the first of its kind in the ECA Region and one of the first in the world. To register for the site, see www1.worldbank.org/gdln/cg.htm and click on "self registration."
For more information, contact Pasquale di Benedetta at pdibenedetta@worldbank.org

Irrigation in Central Asia Explored in New Report
The Central Asian countries in the Aral Sea Basin - Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan- have some of the largest irrigation schemes in the world. Some 22 million people depend directly or indirectly on irrigated agriculture in these countries. Yet in the absence of maintenance, much of the infrastructure is fast approaching collapse. Although there is need to maintain the most critical infrastructure, there is disagreement regarding the scale, nature, timing and criteria for selecting these investments. The new World Bank study aims to help the governments in Central Asia weigh these arguments. To read the study in English or Russian, click here.

New and Revised Project Documents Online

NOTE -- Links to document files are temporarily unavailable, but will return to the newsletter as soon as a new cataloging system is in place. Documents will be posted on the Bank’s Documents and Reports page within 7-10 days.
http://www-wds.worldbank.org/
If you require the document(s) urgently, send an email to pic@worldbank.org


Miriam Van Dyck
Europe and Central Asia External Affairs
The World Bank
Telephone (202) 458-2931
Fax (202) 614-1008