The World Bank Report No: ISR11472 Implementation Status & Results Burkina Faso Burkina Faso - Bagre Growth Pole Project (P119662) Public Disclosure Copy Operation Name: Burkina Faso - Bagre Growth Pole Project (P119662) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 20-Dec-2013 Country: Burkina Faso Approval FY: 2011 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 21-Jun-2011 Original Closing Date 30-Sep-2017 Planned Mid Term Review Date 30-Nov-2014 Last Archived ISR Date 28-Jun-2013 Effectiveness Date 01-Nov-2011 Revised Closing Date 30-Sep-2017 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to contribute to increased economic activity in the Project Area, resulting in an increase in private investment, employment generation, and agricultural production. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Improvement of institutional capacity for better zone management and investment climate in the 20.50 Project Area Development of Critical Infrastructure 78.50 Development of Critical Services and direct support to smallholders and SMEs 12.50 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating High High Implementation Status Overview Project approved by the Board of Directors on June 21, 2011. The project has been effective since December 2011. The project was officially launched in April 2012. As the Project moves forward with the expression of interest by the private sector, public perception of risk on land allocation will be high. It is critical that implementation of the resettlement action plan be central to the project progressing. Page 1 of 5 The World Bank Report No: ISR11472 Locations Country First Administrative Division Location Planned Actual Burkina-Faso Centre-Sud Centre-Sud ✔ Public Disclosure Copy Burkina-Faso Not Entered Bagre Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Volume of cereals and horticulture production Metric ton Value 157867.00 13439.00 450000.00 (rice, maize, sorghum, millet beans, fruits & Date 27-May-2011 30-Sep-2013 30-Sep-2017 vegetables, etc.) Comments Figure is not cumulative. Production as of September 2013 is 13439 MT. Value of investment flows Amount(USD) Value 0.00 3476141.00 20000000.00 Date 27-May-2011 30-Sep-2013 30-Sep-2017 Comments This amount corresponds to funding during 2012 and the first half of 2013 to critical services and direct support to small farmers and SMEs.This is the same figure as the SME support metric below in the ISR. Number of jobs created Number Value 0.00 3584.00 30000.00 Date 27-May-2011 30-Sep-2013 30-Sep-2017 Comments Jobs were created as a result of farming 1200 hectares plus including associated services. Public Disclosure Copy Direct project beneficiaries Number Value 0.00 5237.00 20000.00 Date 27-May-2011 30-Sep-2013 30-Sep-2017 Comments Female beneficiaries Percentage Value 0.00 18.00 30.00 Sub Type Supplemental Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR11472 Indicator Name Core Unit of Measure Baseline Current End Target Number of Agribusiness firms investing in more Number Value 0.00 0.00 3.00 than 500 hectares Date 27-May-2011 16-Jul-2013 30-Sep-2017 Public Disclosure Copy Comments Volume of Bank Support: Institutional Amount(USD) Value 0.00 1251972.00 6000000.00 Development - SME Date 27-May-2011 30-Sep-2013 30-Sep-2017 Comments This amount corresponds to funding during 2012 and up to Sep 2013 to critical services and direct support to small farmers and SMEs.This is the same figure as the SME support metric below in the ISR. Number of enterprises established Number Value 3.00 28.00 40.00 Date 27-May-2011 16-Jul-2013 30-Sep-2017 Comments Current number of service providers and enterprises in agribusiness, solar power etc. reported by Bagre Pole as of Sep 2013 Irrigated hectares developed and under Hectare(Ha) Value 3000.00 0.00 15000.00 production Date 27-May-2011 30-Sep-2013 30-Sep-2017 Comments None developed. No increase over baseline yet. Data on Financial Performance (as of 05-Dec-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P119662 IDA-H7270 Effective 21-Jun-2011 04-Jul-2011 01-Nov-2011 30-Sep-2017 30-Sep-2017 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P119662 IDA-H7270 Effective XDR 71.00 71.00 0.00 5.63 65.37 8.00 Disbursement Graph Page 3 of 5 The World Bank Report No: ISR11472 Public Disclosure Copy Key Decisions Regarding Implementation All project activities are being implemented consistent with the sequencing plan developed during project preparation. 1. The project financed the preparation of a Zone Development Plan (ZDP) that embodies a shared vision for the development of the Project Area and feasibility studies and bidding documents for: (i) a first phase land of 2582ha to be developed for compensation and for small and medium investors (ii) a second phase of land of around 9000ha North and East of the project area (the concentration Zone) for medium and large size investors (iii) access roads and (iv) extension of the electric lines to the production sites. The RAPs and PARs for the 2582ha have been prepared and reviewed by the Bank. The critical next steps are the following: (i) The Gov to disburse the 1.5billion CFA allocated in the 2013 budget to compensate the project affected people on the 2582ha to be developed (ii) the Gov to prepare the RAPs and ESIAs for the remaining sites to be developed for irrigation and civil work and (iii) the Gov to implement these RAPs and ESIAs once finalized and have adequate resources for possible compensations. 2. The project helped restructure the legacy public agency previously managing the project area. This transformation resulted in the creation of a new organization, BagrePole, adapted to managing the evolving needs of a growth pole. Support to BagrePole included developing a business plan (the implementation of which required downsizing of the Public Disclosure Copy agency's workforce to a level that is cost effective), and providing diverse TA so the organization could fulfill its mission. There remain legal and regulatory actions that the government must take to empower BagrePole to perform its duties. These are (i) payment by SONABEL (the electricity company) of water charges to BagrePole for using water from the Bagre reservoir for electricity generation, (ii) a decree conferring sole authority to manage the water in the Bagre reservoir to BagrePole, and conferring to BagrePole authority to procure and sign lease contracts on behalf of the government. 3.Investment generation: PPCB released a Request for Expressions of Interest letter to investors. More than 700 firms responded. The Bagre team now has to move quickly to meet the expectation of these potential investors. A transaction advisor has been working since April 2013 to help Bagre move to the next stage of the process. The investment advisor is helping Bagre to shortlist anchor investors (those expressing interest in >3000 hectares) who will receive a request for offers by the end of July 2013. For small and medium potential investors, the investment advisor will assist Bagre in developing selection criteria to select and conclude contractual arrangements with these investors as well. This process needs to occur in a transparent, efficient fashion. The project will need to be able to justify its selection of anchor investors, and other investors publicly. It must be shown that the criteria used and terms negotiated indicate that the best interests of Burkina Faso were taken into consideration. Page 4 of 5 The World Bank Report No: ISR11472 5. The next six months are critical for project success. As BagrePole has released tenders for the infrastructure works for the 2582ha, the resettlement and compensation process will take place, and must be successful for works to begin. The signing of contract for the civil work may boost the disbursement this FY rate as the project will make a down payment after contract signing. Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5