The World Bank Implementation Status & Results Report Private Sector Rehabilitation & Agribusiness Development (P127209) Private Sector Rehabilitation & Agribusiness Development (P127209) AFRICA | Guinea-Bissau | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 10 | ARCHIVED on 15-Oct-2019 | ISR38632 | Implementing Agencies: Republic of Guinea-Bissau, Ministry of Economy and Finance Key Dates Key Project Dates Bank Approval Date: 22-May-2014 Effectiveness Date: 08-Sep-2014 Planned Mid Term Review Date: 29-Sep-2017 Actual Mid-Term Review Date: 29-Sep-2017 Original Closing Date: 31-Dec-2019 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to support inclusive development of the cashew agribusiness sector and to promote entrepreneurship in other sectors of the economy. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Promoting the Development of Agribusiness:(Cost $5.40 M) Developing Entrepreneurship:(Cost $1.80 M) Project Coordination:(Cost $1.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Private Sector Rehabilitation & Agribusiness Development was approved on May 22, 2014. The Financing Agreement was signed on June 12, 2014. The project is effective since September 8, 2014. Disbursements are at 92%, an increase of 12 percentage points since last Implementation Status and Results Report. Outcomes: The PRSPDA is providing through a linkages program between cashew producers and processors higher and more stable returns to cashew production. This is helping achieve one of the major objectives of the project of improving the bargaining power of producers. In 2017 and 2018, the agreement between producers and processing plants allowed for receiving 33% and 37% more than similar producers that are not part of 10/15/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Private Sector Rehabilitation & Agribusiness Development (P127209) the program. In 2019, initial indications of average prices in the market suggest a similar 33% difference benefiting the participants in the program. Impacts are higher when considering the indirect effects through improved skills, seeds and materials. The support to the development of cashew processing partially achieved the original target in terms of employment creation (173 jobs for a target of 250). Following a set of important reviews of experiences in Guinea-Bissau, the project has focused these activities in supporting efficiently the sustainability of a small number of medium-size cashew processing plants that can grow linked to producer associations, as opposed to large number of small companies. This implies a lower number of plants initially, but companies and employment that are more sustainable beyond the duration of the project and that can grow beyond its existence. In fact, the capacity supported in the project are investing to grow soon in number of plants and jobs. The business plan competition has been a major success, with grants disbursed and continuous mentoring to support business development. About 80% of the firms supported with capital infusion under the business plan competition are operating well, which compares with under 40% in a comparable control group. The comparison of performance will be updated in the late October mission. The project-supported reform of customs procedures was approved by the Minister of Finance and implemented in collaboration with the WB- financed Public Sector Reform Project. The project also contributed to reforms in the business registration procedures, including the reduction of the minimum capital. It also implemented a simplified system of registration for small scale entrepreneurs achieving over 500 registrations as of September 2019 (five times the initial expectations). The project helped create the CIMAN, which contributed to improving coordination and implementation oversight of various reforms. The continuity of this institutional mechanism, critical for progress in business environment reforms, is under discussion within the new government. Outputs: The project has exceeded the number of producers targeted to be supported and surpassed the targets to support the diversification into rice for cashew producers. It has rehabilitated warehouses in rural areas as planned, and has on top of that rehabilitated four drying areas to guarantee quality of cashew before delivery to off-takers. While the drying areas are beyond the initial targets, the project assisted directly the processing capacity of three plants (instead of four initially planned), including for producing cashew kernel, but also for cashew juices and other by- products. In addition, and not considered in the output measures, the project provided technical assistance to an additional dozen cashew processing plants in Guinea-Bissau. The 25 female and 25 male entrepreneurs that won the Business Plan Competition have received the in-kind grants to implement their business plans. This program included 4,000 applicants, over 500 of people trained on business plans, and 50 winners of grants. The program implemented a Grievance Redressal Mechanism. The project updated the translation of the OHADA (Organization for the Harmonization of Business Law in Africa) from French to Portuguese and developed the OHADA-designed entrepreneur status to Guinea Bissau. It also prepared and assessment of corruption at customs based on behavioral economics. Finally, it helped support the dialogue between public and private sector embedded in a Commission of Business Environment reforms. The project has leveraged funding from a complementary US$1.2 million IFC Advisory Services project (Cashew Sector Development Project - #601016) under implementation with the objective of raising awareness on environmental, social and trade standards (EST) among actors in the cashew value chain in collaboration with PRSPDA’s rural extension activities, and supporting reforms in property and business registration. On EST standards, the IFC AS project has (i) organized awareness raising meetings reaching 3,000 cashew producers in two producer groups and enrolled over 800 to implement traceability tools; (ii) raised awareness of other cashew sector actors on the importance of EST standards among other cashew actors, including a study tour and the creation of a facilitation committee; (iii) developed a visual identity for an origin label, a good practice manual; and (iv) supported an audit of HACCP food safety standards in cashew processing facilities. The project also supported the reform of the fee schedule for property, commerce, and automobile registration. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- High High Sector Strategies and Policies -- Substantial Substantial 10/15/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Private Sector Rehabilitation & Agribusiness Development (P127209) Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Substantial Substantial Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Support inclusive development of the cashew agribusiness sector and to promote entrepreneurship IN00746431 ►Farm-gate price of cashew farmers supported by project relative to price of similar farmers identified at the beginning of project (control group) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 37.00 33.00 10.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 Rate in the 2019 campaign was 33% higher for those in the linkages program than the average for those selling to be exported (FCFA 400/Kg versus FCFA 300/Kg). Rate in the 2018 campaign was 37% higher for those in the linkages program than the average for those Comments: selling to be exported (FCFA 650/Kg versus FCFA 474/Kg). Rate in the 2017 campaign was 32.9% higher for those in the linkages program than the average for those selling to be exported. IN00746432 ►Number of jobs created by the cashew agro-processing units directly supported by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 173.00 173.00 250.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 Comments: Number of jobs are measured as an average of full-time equivalent number of workers in a given year IN00746433 Number of female jobs created by the cashew agro-processing units directly supported by the project (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 110.00 110.00 165.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 IN00746434 ►Percentage of firms (supported by BPC) in operation relative to control group (Percentage, Custom) 10/15/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Private Sector Rehabilitation & Agribusiness Development (P127209) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 40.00 30.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 Data is being collected and indicator will be updated during the year. Comments: Data is measured in percentage points. Intermediate Results Indicators by Components Promoting the Development of Agribusiness IN00746435 ►Number of smalholder cashew farmers receiving extension services and price information system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,500.00 1,578.00 400.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 Comments: Smallholder cashew farmers are those with less than 3 hectares IN00746437 ►Area of rice production (ha) cultivated with improved seed and adequate dosage of fertilizer (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,650.00 1,650.00 1,500.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 Comments: By adequate dosage fertilizer, it is meant 40kg of nitrogen and 60kg of N-P-K per hectare IN00746439 ►Number of cashew communal storage facilities installed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 4.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 IN00746441 ►Number of cashew nuts community processing plants installed with direct project support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 4.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 Includes production facility for cashew kernel production in linkages with producer organizations, as well Comments: as two other community level processing units of cashew by-products such as juices, and other food. 10/15/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Private Sector Rehabilitation & Agribusiness Development (P127209) Developing Entrepreneurship IN00746436 ►Number of entrepreneurs receiving in-kind grants following business plan competition (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 50.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 IN00746438 Number of female entrepreneurs receiving in-kind grants following business plan competition (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 25.00 25.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 IN00746440 ►Number of customs-related procedures it takes to clear goods (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 32.00 28.00 28.00 Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 Pending the evaluation of number of import/export procedures at the end of project for an update. Comments: IN00746442 ►OHADA entreprenant status for MSMEs created (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 22-May-2014 21-Mar-2019 02-Oct-2019 31-Dec-2019 608 entrepreneurs registered at CFE according to this status in 2019. Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P127209 IDA-54640 Effective USD 8.20 8.20 0.00 6.79 0.60 92% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 10/15/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Private Sector Rehabilitation & Agribusiness Development (P127209) P127209 IDA-54640 Effective 22-May-2014 12-Jun-2014 08-Sep-2014 31-Dec-2019 31-Dec-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/15/2019 Page 6 of 6