February 2004

Highlights in this issue:
- Decade of Roma Inclusion Launched on February 2
- Russian Investment Climate Focus of Wolfensohn Visit
- EU8 Quarterly Report Launched in Brussels.
- World Bank Congratulates Yushchenko on Election Victory

Decade of Roma Inclusion Launched on February 2
Leaders from Central Europe met in Sofia on February 2, 2005, to launch the Decade of Roma Inclusion—the most sweeping effort to improve the status of Roma, Europe's most vulnerable minority. Participants included prime ministers from eight Central and Southeast European countries, as well as James Wolfensohn, Shigeo Katsu, and Open Society Institute (OSI) Chairman George Soros. OSI and the World Bank are the two principal sponsoring organizations of the initiative. Bulgaria, Croatia, the Czech Republic, Hungary, FYR Macedonia, Romania, Serbia and Montenegro, and Slovakia are the founding countries of the Decade, which will span 2005–2015. A multimedia press release was issued on Monday, January 31, which connects to video clips, sound bytes, and still photos. A documentary on the Roma, commissioned by OSI and the World Bank, was aired on BBC4 on February 4 and on select national TV stations in the Decade countries. For more information, please click here

Russian Investment Climate Focus of Wolfensohn Visit
Russia’s investment climate and competitiveness were the focus of President Jim Wolfensohn’s two-day visit to Moscow, which ended on Friday. While in the Russian capital, Wolfensohn met with President Vladimir Putin and other key representatives of the Russian federal and regional authorities. Citing the country’s ambitious reform agenda, Wolfensohn stressed the need for the Russia to identify and implement policies aimed at strengthening global competitiveness.  High level experts and officials from other advanced markets also came to Moscow, allowing for a sharing of best practice in the areas of trade and economic competitiveness. In a meeting with private sector leaders, Wolfensohn signed a Memorandum of Agreement with Alexander Shokhin, Chairman of the Coordinating Council of Business Unions of Russia (CCBU).  This marked the inclusion of Russian business associations into the Bank Group’s Network of Private Sector Liaison Officers (PSLOs). For more information, please click here and here

World Bank Quarterly Report on EU8 Launched in Brussels
The World Bank’s latest EU8 Quarterly Report, which highlights economic performances in the eight Central European and Baltic countries recently admitted to the European Union, was launched in Brussels on January 27. The report revealed that output in the countries of Central Europe and the Baltics grew by 5 percent in 2004—one percentage point higher than the previous year. Growth in the third quarter of 2004, meanwhile, slowed to 4.4 percent (year-on-year), down from 5.4 percent in the second quarter. ECA GDLN services connected Warsaw, Bratislava, Riga, and Vilnius to Brussels. Lead author Thomas Blatt Laursen presented the report in Brussels, while Country Economists were able to answer questions from journalists in Warsaw, Bratislava, Riga, and Vilnius. For more information, please click here

World Bank Congratulates Yushchenko on Election Victory
World Bank President James Wolfensohn and Shigeo Katsu congratulated Mr. Victor Yushchenko following his election as President of Ukraine. “Your personal courage and that of millions of Ukrainians in the peaceful but firm pursuit of democracy represent a watershed in the history of Ukraine and an inspiration to the rest of the world,” said Mr. Wolfensohn in his letter. Victor Yushchenko was inaugurated as Ukrainian president on January 23 in a ceremony that marked the culmination of the democratic movement known as the Orange Revolution and marks the beginning of a new era of diplomacy, especially with the European Union. The Bank team presented President Yushchenko with a paper titled “A Strategy for Modernizing Ukraine: Diversification, Governance and Social Inclusion”—describing the Bank’s perspective on the development opportunities and challenges facing the country.  It was prepared to help the new administration in Ukraine define and implement its economic and social program.

Country and Sector News

Central Asia

Central Asia: Regional Electricity Export Potential Study
Central Asia Country Unit recently finalized a report titled Central Asia: Regional Electricity Export Potential Study (REEPS). This study was carried out in response to the Central Asia Cooperation Organization’s (CACO) request for help in setting up a Water Energy Consortium (WEC). The report identifies strategic options for the development of individual countries’ electricity sectors, assesses regional least-cost generation options, and looks at the potential to access export markets within and beyond the region. Key conclusions of the study are: 1) Annual domestic demand in the Central Asian Republics can be met most cost effectively through the implementation of loss reduction measures, rehabilitation of existing generation capacity, and inter-regional trade at the margin. 2) Seasonal supply shortages will persist in winter, for which some new generation capacity will be needed. 3) Major new generation projects in Central Asia will likely only be feasible if there is assured access to export markets outside the region. The Bank is proposing to facilitate an in-depth exchange of views on this subject with CACO members and IFIs between February and April 2005.

World Bank Launches a Social and Institutional Development and Economic Management Technical Assistance Program (SIDEM) for Eligible Members of the European Union
On January 25, 2005, the World Bank’s Executive Directors confirmed their support for SIDEM for eligible members of the European Union (EU) with an aggregate lending limit up to US$100 million. The objective of SIDEM is to promote social and institutional development and economic management in EU member countries which are eligible to borrow from the World Bank. Examples of activities that could be financed through loans under SIDEM include support for the formulation of National Development Plans, creation of knowledge-based economies, reform of judicial systems, modernization of health and education sectors, and effective utilization of EU assistance. The first constituent loan under SIDEM, approved by the World Bank’s Board of Directors on the same day, is for a Human Capital Technical Assistance Project for the Slovak Republic in the amount of €5 million. For more information, please click here

Albania

Finance Minister H.E. Arben Malaj Signs Japanese Grant Agreement for Albanian Health System Modernization Project.  On January 7, the Ministry of Finance held a signing ceremony for the Japanese Grant Agreement for the Albanian Health System Modernization Project. The agreement was signed by Finance Minister Arben Malaj, World Bank Country Manager Nadir Mohammed, and the Honorary Consul of Japan in Albania, Bujar Dida. The Japanese Grant will be used to modernize the Albanian health system and will be managed by the World Bank (IDA). For more information, please click here

Armenia

Grant Agreement Signed
Acting Finance and Economy Minister and Chief Treasurer Atom Janjughazyan and World Bank Country Manager Roger Robinson on January 11 signed a €4.7 million Grant Agreement for Armenia. The grant, which is co-financed by the Dutch Government, together with the first Poverty Reduction Support Credit (PRSC) proceeds, will support the State budget. The PRSC supports policy and institutional reforms reflected in the Government's Poverty Reduction Strategy (PRS).

Croatia

Launch of Croatia Country Assistance Strategy 2005-08
On January 19, the Croatia Country Office and the Croatian Ministry of Finance held the official launch of the new Croatia Country Assistance Strategy (CAS), covering the period 2005–2008. The new partnership strategy for Croatia envisages lending up to US$1.5 billion. Minister of Finance Ivan Suker explained that the CAS was developed in full partnership with the government and will support EU integration efforts. The CAS includes plans for increased efficiency of public spending, streamlining of public administration, judiciary reform, and improvement of the investment environment. Regional Director for Bulgaria, Croatia, and Romania, Anand K. Seth, stressed that some of the reforms will necessarily be painful in the short run, but the strategy also envisages a set of instruments that will help alleviate the consequences for citizens. The strategy will be implemented through a series of Programmatic Adjustment Loans (PALs), a series of investment loans and social welfare, education, and health sector projects. The partnership strategy was endorsed by the Board of Executive Directors in December 2004. For more information, please click here

Kazakhstan

Central Asian Countries Complete Negotiations on Regional HIV/AIDS Project
The World Bank and four delegations representing the Central Asia Cooperation Organization (CACO) completed negotiations on January 26 on the first regional Central Asia AIDS Control Project in Almaty. The goal of the project is to minimize the potential negative human and economic impact of a generalized HIV/AIDS epidemic in Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan. The project will ensure the necessary regional coordination and harmonization of approaches to control HIV/AIDS in Central Asia and complement country-specific programs and projects financed by governments, the Bank, and other partner organizations such as DFID, UNAIDS, GFATM, and USAID. For more information on HIV/AIDS in Central Asia, please click here

Moldova

Board Approves New CAS for Moldova
The new CAS for Moldova, which covers the period 2005–2008, envisages IDA lending from $90 million to $137 million. The new CAS was discussed and endorsed by the Bank’s Board on December 14, 2004.  The new CAS reflects the current country context, the Economic Growth and Poverty Reduction Strategy (EGPRSP) framework, and the country’s European Union aspirations. The CAS focuses: (i) Promoting conditions for economic stability, growth, and employment creation; (ii) Improving access to social services, capital, and community infrastructure, and minimizing environmental risks; and (iii) Improving public sector governance and combating corruption.  The CAS was prepared in partnership with the Government of Moldova and in consultation with the business community, civil society/NGOs, and donors.
For more information, please click here

Romania

WB Supports Rehabilitation of Romania Hydropower Station
The World Bank’s Board of Executive Directors approved on January 27 a €66 million (US$84.3 million equivalent) loan to Romanian hydropower generator Hidroelectrica S.A., with the guarantee of the Government of Romania, in support of the first phase of the US$1 billion Energy Community of South East Europe (APL) program. Romania is one of the first participants in the multi-country effort to develop the energy market. The loan will help finance the rehabilitation of Hidroelectrica’s Lotru Hydropower Station and technical assistance for its institutional development and project implementation. For more information, please click here

Government of Romania and the World Bank Sign Four EU Related Loans for US$475 Million
The Government of Romania and the World Bank recently signed four Loan Agreements worth US$475 million; US$850 million is committed for FY05. The loans will support the following projects: Transport Restructuring (US$ 225 million); Modernizing Agricultural Knowledge and Information Systems (MAKIS) (US$50 million); Mine Closure and Environmental and Socio-Economic Regeneration (US$120 million); and Health Sector Reform (US$80 million).  The loans promote the overall strategy of the World Bank to support Romania’s efforts in meeting the European Union requirements in view of the country’s accession and membership in the Union. For more information, please  click here

Slovakia

World Bank Approves Human Capital Technical Assistance Project for Slovakia
On January 25, the World Bank's Board of Directors approved a €5 million Human Capital Technical Assistance Project (HCTAP) for the Slovak Republic. The Project will assist the government in modernizing its systems for employment, education, and social cohesion. The Project will be implemented by two Ministries over the next 3 years and will be completed in 2008. The HCTAP is the first technical assistance project to be presented under the new Social and Institutional Development and Economic Management (SIDEM) Technical Assistance Program that establishes a provision for up to US$100 million of technical assistance during FY2005–2007 available to the EU8 countries (Poland, Czech Republic, Hungary, Slovakia, Slovenia, Lithuania, Latvia, and Estonia) as a group. For more information, please click here

Ukraine

World Bank Opens Information Center in Ukraine in Partnership with the British Council
The World Bank Public Information Center was opened in Kyiv on January 31, 2005.  The Center is hosted by the British Council’s Resource and Information Center. At the opening ceremony, a Memorandum of Partnership and Agreement on Co-operation were signed by Liliana Biglou, Director of the British Council Ukraine, and Dusan Vujovic, World Bank Country Manager for Ukraine. The Memorandum envisages and outlines the basis for cooperation and joint actions of two organizations in the knowledge dissemination, learning and capacity building for development arena. The Public Information Center is located in the heart of the campus of the famous Ukrainian University “Kyiv-Mohyla Academy.” It aims to bring the World Bank and its publications closer to stakeholders, students, and the general public looking for information on social and economic development, environment, education, health, anti-corruption, and European integration. In the near future, the PIC team is planning visits to the main Ukrainian universities and Students’ Science Societies to promote and publicize World Bank knowledge databases and encourage university communities to use Bank resources. A number of outreach events—seminars, conferences, press briefings, launches of the key publications—are planned for the year 2005 in Ukraine by the World Bank and the British Council.  For more information, please click here

Uzbekistan

World Bank Helps Uzbekistan Reduce Water Losses
On January 14, the Government of Uzbekistan and the World Bank signed a US$1,694,419 Grant Agreement to help the people of Bukhara and Samarkand to reduce water losses. Funding for the Grant is provided by the Government of Japan to support implementation of the World Bank’s “Bukhara and Samarkand Water Supply” Project. The Grant will help develop a community-based approach to the preparation and implementation of repair and maintenance programs for water supply installations and appliances within multi-story houses.

New and Revised Project Documents Online

ARMENIA - Renewable Energy

BOSNIA-HERZEGOVINA - Corporate Restructuring

BULGARIA - Third Programmatic Adjustment Loan

GEORGIA - Rural Development

FORMER YUGOSLAVIAN REPUBLIC OF MACEDONIA - Real Estate Cadastre Registration

MACEDONIA - Second Trade and Transport Facilitation Program

POLAND - Second Road Maintenance and Rehabilitation Project

ROMANIA - Jiu Valley Development

SERBIA AND MONTENEGRO - Third Energy Community of South East Europe

Your Subscription

To unsubscribe from this newsletter and other ECA updates, simply reply to this
e-mail with "unsubscribe" in the subject line.

For more information on the World Bank's work in Europe and Central Asia, visit
http://www.worldbank.org/eca