Public Disclosure Copy The World Bank Implementation Status & Results Report Moldova Agriculture Competitiveness Project GEF Additional Financing (P118518) Moldova Agriculture Competitiveness Project GEF Additional Financing (P118518) EUROPE AND CENTRAL ASIA | Moldova | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2012 | Seq No: 13 | ARCHIVED on 30-Aug-2019 | ISR36471 | Implementing Agencies: Republic of Moldova, Ministry of Finance, Ministry of Finance, Ministry of Agriculture and Food Industry, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 01-May-2012 Effectiveness Date: 20-Sep-2012 Planned Mid Term Review Date: 01-May-2015 Actual Mid-Term Review Date: 30-Apr-2015 Original Closing Date: 30-Jun-2017 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to enhance the competitiveness of the agro-food sector by supporting the modernization of the food safety management system, facilitating market access for farmers, and mainstreaming agro-environmental and sustainable land management practices. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Enhancing food safety management:(Cost $14.70 M) Enhancing market access potential:(Cost $35.44 M) Enhancing land productivity through sustainable land management:(Cost $9.00 M) Project Management:(Cost $2.60 M) Contingencies:(Cost $0.40 M) Compensatory Sales Support Grants:(Cost $6.80 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 project has successfully continued implementation of activities which lay the foundations for improving the marketability and market integration of horticultural produce through productive partnerships. It also continues to make significant contributions to efforts aimed at enhancing the 8/30/2019 Page 1 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Moldova Agriculture Competitiveness Project GEF Additional Financing (P118518) technical functionality of the country’s Food Safety Agency and its key divisions - national laboratories and border inspection points. Finally, the project’s promotion of sustainable land management practices has provided extremely promising results in terms of impact on the quality of soils and productivity of land. The results indicators which continue to be tracked have been updated to August 1, 2019 for those activities that are still on-going. Disbursement estimates for FY20 stand at US$4.5 million. The Project continues to respond properly to its citizens engagement commitments. A grievance resolution mechanism has been established in 2015. There have not been any complaints filed under the mechanism in the past 24 months. The team will continue to work intently over the remaining implementation period on further promoting citizen engagement strategies and reporting, in close collaboration with dedicated citizen engagement specialists. Closing date extensions, reallocation and Additional Financing In a letter from September 12, 2018, the Government of Moldova has requested a relocation of resources from the project’s Component 2: Enhancing market access to Component 1: Enhancing food safety management, and an ensuing extension of the project’s three IDA credits: IDA- 50950, IDA-58580 and IDA-56390. In a separate communication from September 12, 2018, the Government of Moldova’s Global Environment Facility (GEF) focal point in the MARDE has provided a letter of endorsement for a proposed additional GEF-funded financing for the project’s Component 3: Enhancing land productivity through sustainable land management. The rationale for the relocation has been dictated by the dire emerging need for additional capacity at the country’s border crossing points for food safety inspections. The project has already supported the establishment of four border inspection points (BIPs), including one with facilities for quarantining live animals. Agro-food products that are exported and imported can only be moved through these four facilities. However, increasing international trade volumes have revealed the need for additional pass-through capacity on both boarders (Romania and Ukraine). An additional argument for more BIPs is the long distances over which produce has to travel to cross the boarders, a problem which is compounded on the eastern border by the Transnistrian conflict. In regard to the extension of closing dates, MARDE has presented a credible and well-structured work plan for the additionally sought implementation period.Over the past several months, the Bank task team together with MARDE the FSA, have fine-tuned the plan, making sure that the additionally proposed activities are well set-up for completion with necessary efficacy and efficiency and under a reasonable timeline. This fine- tuning exercise also allowed the two sides to gauge better the time required for the extension of the project’s three IDA credits. To this end, a determination was made that IDA-50950 will not require any additional extensions and the remaining balance will be fully disbursed by May 31, 2019. For IDA-56390, a determination was made that the credit requires a 2nd albeit shorter than initially requested extension to allow for the completion of the Cahul laboratory, as well as the procurement, delivery, installation of highly sophisticated specialized laboratory equipment for the Balti and Cahul laboratories and the delivery of the required training. Finally, for IDA-58580, which would finance the construction of at least two additional BIPs under Component 1 and the continuation of market enhancing activities under Component 2, a slightly lengthier than originally requested extension would be necessary due to a heavy reliance on small-scale local contractors (with unpredictable performance), as well as give the project a longer time horizon for satisfying potential demand from farmers for setting up producer groups and absorbing matching investment grants under Component 2. These proposed adjustments in the implementation timeline have been formulated in a follow-up request from the Government of Moldova dated April 18, 2019. The closing date extension of IDA-58580 will also provide the platform for securing and implementing the additional GEF-funded financing mentioned earlier, which is expected to be fully blended with MACP. The successful implementation of Component 3 has created a positive consensus among stakeholders that its activities should be continued and scaled up. The feedback from farmers was particularly encouraging, as they seek more and more information and opportunities to adopt sustainable land management practices in a country where land is the main productive asset. In this context, MARDE has provided to the World Bank an endorsement letter for a an additional GEF-7 Grant of US$3.4 million to provide additional financing for Component 3. The rationale for scaling up such activities is solidified by impact assessments that revealed demonstrably positive results and externalities on soil quality, land productivity, and alleviation of anthropogenic pressures on productive agricultural/rural ecosystems. The process for securing the additional GEF funding culminated on June 13, 2019, when the GEF Council endorsed the award of resources. There have also been extensive discussions earlier in 2019 on the possibility of another Additional Financing to supplement Component 1 activities with resources for an animal by-product management sub-component, which, however, following the change in the composition of the Government of Moldova in June 2019, have not yet resulted in a firm request for such funding. Nevertheless, a concept note for this Additional Financing has already been prepared and the task team is ready to proceed quickly with preparation, should a request from the Government of Moldova come in. 8/30/2019 Page 2 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Moldova Agriculture Competitiveness Project GEF Additional Financing (P118518) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- High Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Enhance competitiveness through modernization of the food safety system IN00732078 ►Completion of targeted food safety actions for approximation to EU SPS requirements (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 110.00 100.00 Date 01-Jul-2012 26-Jul-2018 01-Aug-2019 30-Jun-2017 (1) Operating procedures and operational manuals for two food safety laboratories in place; (2) Draft national legislation and regulations for official controls harmonized with EC Regulation 82 finalized; (3) Comments: Draft national legislation and regulations on self-controls for food business operators harmonized with EC regulations finalized; (4) Strengthened capacity of the FSA; (5) Strengthened capacity of 2 food safety laboratories; (6) Establishment of 4 Border Inspection Points. 8/30/2019 Page 3 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Moldova Agriculture Competitiveness Project GEF Additional Financing (P118518) Enhance competitiveness through facilitation of market access IN00732079 ►Increased sales (domestic and exports) of high value crops by targeted partnerships that receive investment support grants (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 101.90 101.90 50.00 Date 01-Jul-2012 26-Jul-2018 01-Aug-2019 30-Jun-2019 The increase will be measured from a baseline of sales by individual agricultural producers before joining Comments: the productive partnership. The indicator will measure value of sales. IN00732086 ►Stabilized levels of production of apples, plums and grapes among beneficiaries of compensatory grants (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 90.00 90.00 85.00 Date 01-Dec-2014 01-Dec-2015 01-Dec-2015 01-Dec-2015 Enhance the competitiveness of the agro-food sector by mainstreaming agro-environmental and sustaina IN00732080 ►Increased on-farm area benefitting from sustainable land management practices supported by the project (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 51,500.00 57,500.00 10,000.00 Date 01-Jul-2012 26-Jul-2018 01-Feb-2019 30-Jun-2017 Comments: The indicator will measure the farm-level magnitude of SLM investments supported by the project. IN00732087 ►Increased area protected by robust anti-erosion shelterbelts rehabilitated under the project (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 64,382.00 64,382.00 50,000.00 Date 01-Jul-2012 26-Jul-2018 26-Jul-2018 30-Jun-2017 Comments: Measurement of the indicator will be limited to the Southern part of the country. Intermediate Results Indicators by Components Enhancing food safety management IN00732082 ►Food safety agency is functional (Text, Custom) 8/30/2019 Page 4 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Moldova Agriculture Competitiveness Project GEF Additional Financing (P118518) Baseline Actual (Previous) Actual (Current) End Target The Food agency is Food safety agency is Food safety agency is Value -- presently not functional functional functional Date 01-Jan-2012 30-Oct-2014 30-Oct-2014 01-Jan-2014 Agency staff hired and working; Agency's building rehabilitated; Technical, communication and computing Comments: equipment procured and installed; Integrating software developed. IN00732089 ►Number of laboratories compliant with standards for international accreditation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 Date 01-Jul-2012 26-Jul-2018 01-Aug-2019 30-Jun-2021 The project will support the elaboration of laboratory Standard Operating Procedures based on Comments: international practice which will guide compliance with international accreditation standards; staff assigned; facilities rehabilitated; equipment supplied and software installed; staff trained; IN00732093 ►Operational Border Inspection Points (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 6.00 Date 01-Jul-2012 01-Jun-2017 01-Aug-2019 30-Jun-2021 Staff assigned; Facilities renovated; Equipment supplied; Software installed; Agriculture and Food Comments: Shipments Inspected. Enhancing market access potential IN00732083 ►Capacity for post-harvest handling created in targeted productive partnerships. (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30,000.00 30,000.00 30,000.00 Date 01-Jul-2012 26-Jul-2018 01-Aug-2019 30-Jun-2019 Comments: Total throughput capacity for post-harvest handling of primary agricultural produce. IN00732090 ►Productive partnerships created with project support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 52.00 50.00 Date 01-Jul-2012 26-Jul-2018 01-Aug-2019 30-Jun-2019 Awareness and outreach campaign implemented with a minimum 30% participation rate of economically Comments: active women from rural areas; Business development support services provided to emerging productive partnerships. Enhancing land productivity through sustainable land management IN00732084 8/30/2019 Page 5 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Moldova Agriculture Competitiveness Project GEF Additional Financing (P118518) ►Analytical solutions for site-specific SLM technologies developed and disseminated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Analytical solutions Analytical options Limited analytical work Value -- ready for application ready for application exists to date by famrers by farmers. Date 01-Jul-2012 01-Jun-2017 01-Jun-2017 30-Jun-2017 Analytical options ready for application by farmers; Awareness and outreach campaign implemented with Comments: a minimum 30% participation rate of economically active women from rural areas; Best-practice experience resulting from implementation disseminated. IN00732091 ►Mechanized mobile squads are operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 2.00 Date 01-Jul-2012 15-Mar-2014 15-Mar-2014 30-Jun-2013 Formal assignment of the dislocation of the mobile squads to forestry enterprises; Equipment procured; Comments: Staff trained. IN00732094 ►Anti-erosion shelterbelts rehabilitated (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,242.00 2,242.00 2,000.00 Date 01-Jul-2012 01-Jun-2017 01-Jun-2017 30-Jun-2017 Comments: Area measurements are confirmed by communities. Project Management IN00732085 ►Grievance mechanism established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Grievance mechanism Grievance mechanism Value No grievance mechanism -- established established Date 15-Feb-2015 26-Jul-2018 01-Aug-2019 30-Jun-2021 IN00732092 ►Published report on the functioning of the grievance mechanism, including resolution rates (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No report -- Report published Report published Date 15-Feb-2015 01-Dec-2015 01-Dec-2015 01-Dec-2015 Compensatory Sales Support Grants IN00732081 ►Amount provided as compensatory grants (Amount(USD), Custom) 8/30/2019 Page 6 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Moldova Agriculture Competitiveness Project GEF Additional Financing (P118518) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,000,000.00 7,000,000.00 7,000,000.00 Date 15-Feb-2015 26-Jul-2018 26-Jul-2018 01-Dec-2015 IN00732088 ►Beneficiaries of job-focused interventions (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4,800.00 4,800.00 5,000.00 Date 15-Feb-2015 26-Jul-2018 26-Jul-2018 01-Dec-2015 IN00732095 Beneficiaries of job-focused interventions - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,200.00 1,200.00 1,000.00 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P118518 IDA-50950 Closed USD 18.00 18.00 0.00 16.39 0.01 100% P118518 IDA-56390 Effective USD 12.00 12.00 0.00 9.76 2.36 81% P118518 IDA-58580 Effective USD 10.00 10.00 0.00 3.51 6.29 36% P127125 TF-12145 Closed USD 4.44 4.44 0.00 4.44 0.00 100% P118518 TF-14946 Closed USD 2.11 2.11 0.00 2.26 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P118518 IDA-50950 Closed 01-May-2012 28-May-2012 20-Sep-2012 30-Jun-2017 31-May-2019 P118518 IDA-56390 Effective 19-May-2015 21-May-2015 07-Jul-2015 30-Jun-2017 31-May-2020 P118518 IDA-58580 Effective 07-Jul-2016 08-Jul-2016 20-Dec-2016 30-Jun-2019 30-Jun-2021 P127125 TF-12145 Closed 28-May-2012 28-May-2012 20-Sep-2012 30-Jun-2017 31-May-2019 P118518 TF-14946 Closed 15-Nov-2013 15-Nov-2013 15-Nov-2013 30-Jun-2015 30-Jun-2016 Cumulative Disbursements 8/30/2019 Page 7 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Moldova Agriculture Competitiveness Project GEF Additional Financing (P118518) Restructuring History Level 1 Approved on 06-Aug-2014 ,Level 2 Approved on 06-Jun-2017 ,Level 2 Approved on 02-May-2019 Related Project(s) P127125-MOLDOVA AGRICULTURE COMPETITIVENESS PROJECT (GEF) ,P154238-Moldova Agriculture Competitiveness Project Additional Financing ,P157765-Moldova Agriculture Competitiveness Project 2nd Additional Financing ,P169944-MACP AF ,P169946-Moldova Agriculture Competitiveness Project 3rd Additional Financing ,P170853-Moldova Agriculture Competitiveness Project GEF Additional Financing ,P170918- Follow up of OPSREM-4105 ,P171284-Moldova Agriculture Competitiveness Project 4th Additional Financing 8/30/2019 Page 8 of 8