The World Bank Report No: ISR7732 Implementation Status & Results Kyrgyz Republic Agribusiness & Marketing Project (P049724) Public Disclosure Copy Operation Name: Agribusiness & Marketing Project (P049724) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 26-Aug-2012 Country: Kyrgyz Republic Approval FY: 2005 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Finance, Ministry of Economic Regulation Key Dates Board Approval Date 14-Dec-2004 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date 30-Mar-2009 Last Archived ISR Date 26-Jun-2012 Effectiveness Date 02-May-2005 Revised Closing Date 30-Nov-2012 Actual Mid Term Review Date 13-Apr-2009 Project Development Objectives Project Development Objective (from Project Appraisal Document) Original PDO: To expand the level of activity of processing, marketing, and trade enterprises downstream of the farmgate, to increase the number and economic importance of producer organizations, and to improve the functioning of markets and trade linkages between producers, and primary and secondary level trade organizations. Current PDO: The objective of the Project is to assist the Borrower in increasing and enhancing the business activities of the Beneficiary agribusinesses supporting the Borrower#s economic growth. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost MARKET DEVELOPMENT 2.64 ACCESS TO CREDIT 5.27 PROJECT MONITORING AND ADVISORY 0.02 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The project has continued to maintain good progress and achieve its results. All activities have been completed by June 30, 2012, except for setting up of the Food Technology Training Center (FTTC) under the Kyrgyz State Technical University (KSTU), completion of which has been extended until November 30, 2012. The establishment of the FTTC is progressing very well. The refurbishment of the building has been completed, and the focus of the project activities of the next four months will be procurement of the equipment for Page 1 of 5 The World Bank Report No: ISR7732 the FTTC and staff training. Overall, the project achieved the following results. Results under the Enterprise Development Subcomponent and the Market Development Services trade facilitation deserve high praise. The Agribusiness Competitiveness Center (ABCC) under the Enterprise Development activity extended support to 42 agri-businesses, and it has resulted in new product development, identification of new markets, increased sales and profits in the client companies. ABCC also continued to monitor the markets, identify the trade and administrative barriers and develop proposals for their mitigation or removal, Public Disclosure Copy as well as provide technical assistance and advice to the agribusiness companies, which was highly demanded. The Market Development Service (MDS) continued to successfully facilitate the trading and promotion of Kyrgyz agricultural products both domestically and abroad. Since its inception in 2006, the MDS has facilitated 1,971 client contacts on various matters, including 142 trade deals for almost 54,000 tons of agricultural products for a total value of US$17.5 million (of which 89% were sold to export markets). Under the Access to Credit Component, the credit line was fully disbursed, and the commercial bank training activities have been done very cost-effectively and far exceeding the original targets. A total of 108 sub-loans have been financed under the project directly from the Credit Line (including 11 sub-loans to cooperatives) and from the reflows in the total amount of almost US$6.76 million equivalent. Total investments mobilized into the agribusiness sector amount to about US$14.8 million equivalent, including the required co-financing by Participating Financial Institutions and beneficiaries. 58 matching grants in the total amount of US$0.8 million have been granted to cooperatives towards co-financing their investments in An extensive training program of loan officers of commercial banks has also been provided under the project, with almost 900 loan officers and branch managers trained in various subjects. The Market Conditions Analysis Unit (MCAU) continued to collect and provide the Ministry of Agriculture with the current price information and market analysis on key food items. These were posted regularly on the ABCC website. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase in sales of agribusinesses supported Percentage Value 0.00 85.00 25.00 by the Project, nominal Date 02-May-2005 23-May-2012 30-Nov-2012 Comments No agribusinesses were Target exceeded more than 3 supported before the start of times. the project Increase in profits of agribusinesses supprted Percentage Value 0.00 40.00 20.00 by the Project, nominal Date 02-May-2005 23-May-2012 30-Nov-2012 Comments No agribusinesses supported Results are double the end before the project target. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Volume (in US$) of trade deals facilitated Amount(USD) Value 0.00 17500000.00 2000000.00 Date 02-May-2005 23-May-2012 30-Nov-2012 Comments MDS was set up under the End target significantly project exceeded. Page 2 of 5 The World Bank Report No: ISR7732 Number of agribusinesses receiving assistance Number Value 0.00 42.00 40.00 from ABCC Date 02-May-2005 23-May-2012 30-Nov-2012 Comments No enterprises supported End target exceeded. Public Disclosure Copy before the project 20 were supported under the first TA package; 24 (including 17 new) under the second TA package; 18 (including 5 new) under the second package extension Number of key business environment Number Value 0.00 3.00 3.00 constraints identified and tackled Date 02-May-2009 23-May-2012 30-Nov-2012 Comments End target achieved. Two VAT calculation on agricultural produce issues (for exports to Kazakhstan and exports to Russia) tackled;one more issue - on illegal payments in key selected transit corridors being monitored Number of public service staff trained Number Value 0.00 1070.00 50.00 Date 02-May-2005 23-May-2012 30-Nov-2012 Comments End target significantly exceeded. Public sector staff trained during seminars and presentations-discussions. Total volume of investments attracted to Amount(USD) Value 0.00 14861509.00 10000000.00 beneficiary agribusinesses Date 02-May-2009 23-May-2012 30-Nov-2012 Comments End target exceeded by almost 50%. Number of loan officers trained in the banking Number Value 0.00 883.00 150.00 Public Disclosure Copy sector Date 02-May-2009 23-May-2012 30-Nov-2012 Comments End target significantly exceeded. Including: 380 in Investment Lending and Leasing, 337 in Structured Finance, 166 in Environmental Training Number of Grants to producer organizations/ Number Value 0.00 58.00 50.00 cooperatives Date 17-Jul-2009 24-Jul-2012 30-Nov-2012 Page 3 of 5 The World Bank Report No: ISR7732 Comments 58 grants have been disbursed in the total amount of US$800,000 equivalent. Target exceeded. Public Disclosure Copy Number of market analysis reports prepared Number Value 0.00 52.00 20.00 and disseminated Date 02-May-2005 23-May-2012 30-Nov-2011 Comments Market Conditions Analysis End target significantly Unit, which prepares reports, exceeded. set up under the project Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 5032678.00 2500000.00 Date 02-May-2005 23-May-2012 30-Nov-2012 Comments Disbursements for agribusiness development. End target significantly exceeded. Volume of Bank Support: Institutional Amount(USD) Value 0.00 564646.00 200000.00 Development - SME Date 02-May-2005 23-May-2012 30-Nov-2012 Comments Project-specific TA to the banking sector. End target significantly exceeded. Data on Financial Performance (as of 13-Jul-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P049724 IDA-40150 Effective 14-Dec-2004 03-Feb-2005 02-May-2005 31-Dec-2010 30-Nov-2012 P049724 TF-53554 Effective 03-Feb-2005 03-Feb-2005 02-May-2005 31-Dec-2010 30-Nov-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P049724 IDA-40150 Effective USD 8.10 8.10 0.00 7.70 0.72 95.00 P049724 TF-53554 Effective USD 4.75 4.75 0.00 4.75 0.00 100.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR7732 Public Disclosure Copy Key Decisions Regarding Implementation There are no decisions for disclosure. Restructuring History Board Approved on 17-Jul-2009, Level two Approved on 17-Dec-2010, Level two Approved on 28-Dec-2010, Level two Approved on 08-Dec-2011, Level two Approved on 23- Dec-2011, Level two Approved on 28-May-2012 Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5