The World Bank Report No: ISR9657 Implementation Status & Results Ethiopia Tourism Development (P098132) Public Disclosure Copy Operation Name: Tourism Development (P098132) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 29-May-2013 Country: Ethiopia Approval FY: 2009 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 30-Jun-2009 Original Closing Date 30-Dec-2014 Planned Mid Term Review Date 31-May-2012 Last Archived ISR Date 01-Oct-2012 Effectiveness Date 25-Feb-2010 Revised Closing Date 30-Dec-2014 Actual Mid Term Review Date 23-Oct-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed project development objective is to contribute to enhancement of the quality and variety of tourism products and services in targeted destinations so as to increase tourist visitation, foreign exchange earnings, and jobs. The implementation of the project will yield the following key outcomes, particularly in key destinations: (i) an increase of annual international visitors; (ii) increased average spending by visitors translating into higher foreign exchange earnings; and (iii) an increased number of direct and indirect tourism-related jobs. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Destination development 15.43 Market development 7.84 Institutional development and capacity building 5.55 Public Disclosure Copy Implementation support 2.70 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Substantial Implementation Status Overview Following lifting of a partial suspension, the project team has focused on completion of a mid-term review; a restructuring and subsequent implementation mission. This ISR Page 1 of 6 The World Bank Report No: ISR9657 documents the Mid -term review and the subsequent restructuring of the project approved on March 15, 2013. It also reflects the findings of a follow up implementation support Mission from March 18 to 22, 2013. Given the connectivity of these three activities, this ISR presents a comprehensive integrated review. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Ethiopia The State of Amhara Lalibela Ethiopia Tigray Regional State Aksum Ethiopia Adis Abeba Astedader Addis Ababa Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Average annual increase of the number of Percentage Value 19.00 19.00 23.00 international visitors in the targeted Date 31-Oct-2012 31-Oct-2012 30-Dec-2014 destinations of Axum and Lalibela Comments Baseline survey conducted As the baseline for the project End target - 23% for Axum, October 2012. Baseline target was established right before 33% for Lalibela was 19% for Axum and 27% the MTR in October 2012, the for Lalibela. actual value is the same as the baseline during the MTR Increase of average foreign currency spending Percentage Value 310.00 310.00 350.00 per international tourist per day in all the three Date 31-Oct-2012 31-Oct-2012 30-Dec-2014 targeted destinations of Addis/Environs, Axum Comments Based on baseline survey As the baseline for the project Expected project closure. and Lalibela conducted in October 2012 was established right before the MTR in October 2012, the actual value is the same as the baseline during the MTR Number of jobs created in tourism related Number Value 440.00 440.00 580.00 Public Disclosure Copy industries in the targeted destinations of Axum Date 31-Oct-2012 31-Oct-2012 30-Dec-2014 and Lalibela Comments Baseline study conducted As the baseline for the project Target: Axum - 580 October 2012: was established right before Lalibela - 860 the MTR in October 2012, the Axum - 440 actual value is the same as Lalibela -650 the baseline during the MTR Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR9657 Indicator Name Core Unit of Measure Baseline Current End Target Number of historic monuments/ sites Number Value 0.00 0.00 6.00 rehabiliatetd in all the three targeted Date 31-Oct-2012 31-Oct-2012 31-Dec-2014 Public Disclosure Copy destination (Addis/environs, Axum and Laliebla Comments Due to the partial suspension on component one, no physical work was done before July, 2012. Kilometers of access/town roads rehabilitated Number Value 0.00 0.00 4.00 Sub Type Supplemental Number of Visitor service centers established Number Value 0.00 0.00 3.00 and staffed in all the three targeted Date 31-Oct-2012 31-Oct-2012 31-Dec-2014 destinations of Addis/ Environs, Axum and Comments Baseline survey, October Due to the partial suspension Lalibela 2012 on component one, no physical work was done before July, 2012. Number of Tourism product development plans Number Value 0.00 0.00 3.00 prepared in secondary destinations Date 31-Oct-2012 31-Oct-2012 31-Dec-2014 Comments Baseline survey, October As the baseline for the project 2012 was established right before the MTR in October 2012, the actual value is the same as the baseline during the MTR Number of marketing and promotion strategies Number Value 0.00 0.00 3.00 adopted with at least 3 international tourism Date 31-Dec-2009 31-Oct-2012 31-Dec-2014 market segments Comments Based on baseline survey, As the baseline for the project October 2012 was established right before the MTR in October 2012, the actual value is the same as the baseline during the MTR Public Disclosure Copy Number of beneficiary firms utilized the Number Value 0.00 31.00 50.00 Matching grants financing Date 14-Dec-2009 31-Oct-2012 31-Dec-2014 Comments Number of community based and tourism Number Value 0.00 0.00 45.00 related business ventures established Date 31-Dec-2009 31-Oct-2012 31-Dec-2014 Comments Revised IR indicator during The community intervention MTR in October 2012 has focused on training and capacity building so far Page 3 of 6 The World Bank Report No: ISR9657 A strategy with a detailed 3-5 year action plan Text Value 0.00 0.00 1 to support the implementation of the national Date 31-Oct-2012 31-Oct-2012 31-Dec-2014 tourism strategy developed Comments Revised based on MTR Public Disclosure Copy restructuring in march 2013 A lodging grading regime compatible to Number Value 0.00 0.00 1.00 international standards developed and pilot Date 31-Oct-2012 31-Oct-2012 31-Dec-2014 tested Comments Restructured in March 2013 A national tourism statistics system upgraded Number Value 0.00 0.00 1.00 that is capable of capturing basic tourism Date 31-Dec-2009 31-Oct-2012 31-Dec-2014 indicators Comments Revised during restructuring, March 2013 Number of instructors/ trainers trained on Number Value 0.00 0.00 40.00 training curricula developed under the project Date 31-Oct-2012 31-Oct-2012 31-Dec-2014 at vocational schools Comments Revised during restructuring, march 2013 Number of people in the tourism industry Number Value 0.00 0.00 200.00 trained in Addis/ environs, Axum and lalibela Date 31-Dec-2009 31-Oct-2012 31-Dec-2014 Comments Revised during restructuring dated March 2013 Direct project beneficiaries Number Value 0.00 0.00 500.00 Date 31-Oct-2012 31-Oct-2012 31-Dec-2014 Comments To be determined in each of Annual based on baseline the three targeted destinations Female beneficiaries Percentage Value 0.00 0.00 50.00 Sub Type Supplemental Public Disclosure Copy Data on Financial Performance (as of 10-May-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P098132 IDA-46240 Effective 30-Jun-2009 16-Sep-2009 25-Feb-2010 30-Dec-2014 30-Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P098132 IDA-46240 Effective XDR 23.60 23.60 0.00 6.34 17.26 27.00 Page 4 of 6 The World Bank Report No: ISR9657 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Following the lifting of the partial suspension of the project on June 27, 2012, a Mid-Term Review of the project was conducted from October 22 to November 2, 2012. The MTR found that Project implementation up to the mid-term review has been substantially delayed due to many factors including: (i) the partial suspension of the project, (ii) extensive delays in finalizing the consultancy services for the development of marketing strategy and baseline study; (iii) lengthy development of the marketing and promotional materials for the Matching Grant Scheme; and (iv) unusually high turnover of the project staff. In addition, designs for project works, which account for almost one third of the project budget, found that planned works are more complicated and significantly more expensive than expected or planned.The main finding of the MTR is that while disbursement to date is low, the main components of the project do not need to be significantly modified. However, reallocation of funds with greater realism regarding what can be done in the remaining time and budget of the project was needed. Accordingly, a level II restructuring of the project was done that reallocated project proceeds across disbursement categories and amended the results monitoring framework to streamline the indicators to be in alignment with the interventions. Public Disclosure Copy Based upon the MTR and restructuring, an immediate follow-up Mission was carried out from March 18 to 22, with the main objectives to: (i) review advances on RAP implementation informed by a site visit to Lalibela; (ii) assess progress in procurement and disbursement since the October-November 2012 Mid-Term Review (MTR); and (iii) determine steps for improved project implementation and achieving upcoming milestones.The mission noted that the project has made good progress since the October/November 2012 midterm review. Disbursement has increased from 17.5% to 26.85% and major procurements have been contracted. A total contract amount of about USD 16.4 million has been committed, out of which USD 5.2 million has been paid out (disbursed) by the project. Physical works in Axum and Lalibela sites have been started and are progressing well. Restructuring History Level two Approved on 13-Mar-2013 Related Projects Page 5 of 6 The World Bank Report No: ISR9657 There are no related projects. Public Disclosure Copy Public Disclosure Copy Page 6 of 6