The World Bank Report No: ISR13794 Implementation Status & Results Burkina Faso Agricultural Diversification and Market Development Project (P081567) Public Disclosure Copy Operation Name: Agricultural Diversification and Market Development Project Project Stage: Implementation Seq.No: 13 Status: ARCHIVED Archive Date: 25-Mar-2014 (P081567) Country: Burkina Faso Approval FY: 2006 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 20-Jun-2006 Original Closing Date 31-Mar-2013 Planned Mid Term Review Date Last Archived ISR Date 24-Nov-2013 Effectiveness Date 11-Dec-2006 Revised Closing Date 31-Mar-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to increase the competitiveness of selected agricultural subsectors that target national and regional markets, thereby contributing to broad-based agricultural growth in Burkina-Faso. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Improvement of Agro-sylvo-pastoral supply chains 39.50 DEVELOPMENT OF IRRIGATION AND MARKETING INFRASTRUCTURE 33.70 IMPROVING OF THE BUSINESS ENVIRONMENT, REGULATORY FRAMEWORK AND 11.30 PROVISION OF ADVISORY SERVICES Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The purpose of this ISR is to provide (i) an update on activities carried in the project since the last ISR of November 2013 and the supervision mission of December 2013, and (ii) summarize findings of activities related to the identification, preparation and pre-appraisal of an Additional Financing following the January 2014 mission . Page 1 of 6 The World Bank Report No: ISR13794 Project has continued its progress towards achieving its development objectives with the completion of the final activities for the project undertaken in the second semester of 2013 and related primarily to (i) implementation of the last 119 micro- projects funded by the supply chain promotion fund, (ii) completion of marketing infrastructure investments (vaccination facilities, and livestock and fruits and vegetables markets) and (iii) work on small-scale irrigation for 795 ha under development since October 2013. An analysis on a sample of 1,411 micro- projects among the 3067 funded by the project and having completed at least one cycle of production was conducted to assess progress with one of the four Public Disclosure Copy indicators for the PDO. It was found that 68% of the producers (compared to an end-of-project target of 60%) having benefited from project support have been able to increase their revenue by at least 50%. Results achieved in terms of exports to international and sub-regional exports have been satisfactory. In 2012, the target of 35,000 tonnes was already met. Exports on international markets totaled approximately 72,000 tonnes. These exports are almost exclusively drawn by the sesame performance, which alone accounted for 91 % of exports. Mango exports (one of the main products targeted by the project) have increased from 2,300 tons in 2006 to 6,000 tons in 2012. In terms of exports to the sub-region , the current volume of 83,000 tonnes is almost four times the initial objective of the project ( end-of-project target of 20,000 tonnes in 2012). These exports are also drawn heavily by the sesame performance which concentrates 44% of the growth followed by onions in second place with 30% and cowpea in third with 20%. Mango, exports grew from 2500 tons in 2006 to 6,000 tons in 2012. It is hoped that a greater contribution in the coming years will materialize with the entry into production of new plantations financed by the project and the impact of IPM against fruit fly established by the project and implemented by project beneficiaries. But in general, overall progress for the activities related to irrigation expansion, improvement in cotton productivity and access to credit remained slow even though there was a slight improvement in the performance of the guarantee fund which allowed an increasing access to bank financing mainly for actors in the livestock /meat supply chain, and to a lesser extent for the mangoes supply chain (only 794 million FCFA in loans could be granted owing to the guarantee Fund against 2.5 billion projected at end of project). Preparation of a Additional Financing has been conducted in parallel with the completion of remaining activities under the parent project. To allow more time for the completion of some preparatory activities necessary towards a Board Date target of May 27 ,2014, an extension of 6 months has been granted to the parent project. A preliminary impact assessment for activities covered by Component 1 and marketing infrastructure under Component 2 have been conducted. Lessons are being drawn to sharpen the focus of the activities to be covered by the AF. Authorities, stakeholders and the Bank Team have been discussing the nature and focus of the scale-up activities (extension to new value chains and geographic zones), general principles for the principal orientation of the project (1. consolidation of micro-projects and their upgrading into micro-enterprises; 2. capitalization on the successful experiences of the parent project; 3. support to small and medium enterprises with a tailored offer of quality services) and steps required for a successful preparation of the AF (updating environmental and social safeguards framework/plans, updating the economic and financial analysis, adjustments to the results framework and in particular key indicators, and changes in the institutional arrangements for implementation to accommodate the new nature of the scale-up). The only new activity added for the AF is a Technical Assistance to be provided to the Permanent Secretariat in charge of the Rural Sector Reforms. Support will be provided to authorities to accompany specific measures adopted by government with the Growth and Sustainable Development Strategy (SCADD). These measures include but are not limited to (i) establishment of an Agricultural Development Fund, (ii) prepar ation of a mechanism to support small and medium enterprises in the rural areas, (iii) preparation of an agricultural mechanization action plan, (iv) setup of an agricultural insurance scheme, (v) implementation of an agricultural extension strategy, and (vi) preparation of an irrigation strategy and policy. All these activities have a direct link with the main focus of the project: improving the performance and competitiveness of agro-sylvo-pastoral value chains. Along with an extension of the closing date to September 2014, A request for re-allocation of funds by category has been granted to the borrower to accommodate the following changes: a reallocation from the surplus Category 1 under goods to the deficit Category 3 (matching-grants scheme), Category 4 (consultants) and Category 5 (training) and category Public Disclosure Copy 6 (coordination/management). The reallocation is due to the following factors: (i) Category 1 has work planned under irrigation and market infrastructure for which studies have been done and are available but work could not be initiated and would not be completed in the current time frame of the project; (ii) several expenditures conducted under studies for irrigation have been planned under Category 1 when they should have been under Category 4 (consultants) hence the gap faced in the category; an increase in the commitments under training due to higher provision of support services to farmers and producers organizations through protocols signed with decentralized levels of the Ministry of Agriculture. Locations Country First Administrative Division Location Planned Actual Burkina-Faso Boucle du Mouhoun Boucle du Mouhoun ✔ Page 2 of 6 The World Bank Report No: ISR13794 Results Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Project direct beneficiaries Number Value 0.00 290500.00 200000.00 Date 27-Mar-2006 30-Jun-2013 31-Mar-2013 Comments This covers direct and indirect This indicator was added at beneficiaries. Number is mid-term. estimated according to methodology agreed at MTR. Percentage of beneficiary producers income Percentage Value 68.00 60.00 increase for targeted commodities Date 30-Jun-2013 31-Mar-2013 Comments Estimations were based on a survey of 2363 beneficiaries and 807 control farmers conducted during the period Feb-May 2013. Resultswere shared with the SPN mission in June 2013. Agricultural exports (cotton excluded) for the Text Value 17,500 tons 35,000 tons targeted supply chains reach 35,000 tons on Date 27-Mar-2006 30-Jun-2013 31-Mar-2013 international markets, by project closure. Comments Based on Customs Data for 2012 including 5975 tons of mangoes, 65686 tons of sesame and 533 tons of niebe. Agricultural exports (cotton excluded) for the Text Value 6,000 tons 20,000 tons targeted supply chains reach 20,000 tons on Date 27-Mar-2006 30-Jun-2013 31-Mar-2013 sub-regional markets, by project closure. Comments Based on Customs Data for 2012 including 3302 tons of Public Disclosure Copy mangoes, 17172 tons of oignons, 33068 tons of sesame and 14319 tons of niebe and 15323 tons of maize Intermediate Results Indicators Page 3 of 6 The World Bank Report No: ISR13794 Indicator Name Core Unit of Measure Baseline Current End Target Number of interprofessional organization Number Value 0.00 4.00 2.00 established Date 27-Mar-2006 30-Jun-2013 13-Mar-2013 Public Disclosure Copy Comments The inter-profession for Mangoes, cattle/beef, Poultry and onions have been created and have all an operational plan. Nombre of micro-projects implemented Number Value 0.00 2912.00 2500.00 Date 27-Mar-2006 05-Dec-2013 13-Mar-2013 Comments There are 3070 micro-projects (MP) approved for co- financed as of Nov 2013. 2912 is the number of MPs successfully implemented or under implementation. 158 MPs will be qualified as unsuccessful (136 approved for financing but not started and 22 have received financing but closed due to poor performance). Increase in non cotton targetted commodities Percentage Value 30.00 25.00 production Date 27-Mar-2006 30-Jun-2013 13-Mar-2013 Comments Hectares of land irrigated Text Value 0 5000 hectares Date 28-Apr-2006 30-Jun-2013 13-Mar-2013 Comments Large scale development in Bagre (1300ha) contract was canceled as part of restructuring. Only small- Public Disclosure Copy scale irrigation remained under project. Increase in cotton yield Text Value Cotton yield: 1,050 kg/ha 15%. Date 31-Dec-2004 30-Jun-2013 13-Mar-2013 Comments DGPER MOA Data for 2012 Data on Financial Performance (as of 03-Jan-2014) Financial Agreement(s) Key Dates Page 4 of 6 The World Bank Report No: ISR13794 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P081567 IDA-41950 Effective 20-Jun-2006 22-Jun-2006 11-Dec-2006 31-Mar-2013 31-Mar-2014 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P081567 IDA-41950 Effective XDR 46.00 46.00 0.00 43.48 2.52 95.00 Disbursement Graph Key Decisions Regarding Implementation 1. Pursue discussions on the harmonization of donors financed activities related to the improvement of access to finance for small and medium enterprises operating in the rural areas. 2. Establish arrangements with Maison de l' Entreprise du Burkina Faso (MEBF) for the delivery of business development services to rural and agro-business SMEs. Public Disclosure Copy 3. Update safeguards frameworks (environmental and social management framework, resettlement and pests/pesticides management. 4. Prepare a Project Document for the AF outlining new focus, choice of new targeted value chains and geographic areas and crieria for selection of enterprises allowed to access the matching grant scheme. 5. Process an extension and re-allocation of funds for the parent project. 6. Prepare updated implementation manuals and take actions on hiring of new staff in the PIU. Restructuring History There has been no restructuring to date. Related Projects Page 5 of 6 The World Bank Report No: ISR13794 P147978-AF-Agricultural Diversification and Market Development Project Public Disclosure Copy Public Disclosure Copy Page 6 of 6