Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) EUROPE AND CENTRAL ASIA | Azerbaijan | Agriculture Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 9 | ARCHIVED on 10-Apr-2018 | ISR32074 | Implementing Agencies: Government of Azerbaijan/Ministry of Finance, State Agency on Management of Agricultural Projects and Credits under the Ministry of Agriculture Key Dates Key Project Dates Bank Approval Date:30-Sep-2013 Effectiveness Date:27-Aug-2014 Planned Mid Term Review Date:15-Jan-2018 Actual Mid-Term Review Date:15-Jan-2018 Original Closing Date:31-Dec-2018 Revised Closing Date:31-Dec-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to facilitate the access of agricultural producers to markets by strengthening sanitary and phytosantiary services, enhancing selected value chains and providing financial services to agribusiness enterprises. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Support for sanitary and phytosanitary services:(Cost $19.06 M) Agribusiness value chain development:(Cost $11.94 M) Financial services to agribusiness:(Cost $19.18 M) Project management:(Cost $2.98 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate 4/10/2018 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) Implementation Status and Key Decisions Substantial progress has been made with the agribusiness value chain development activities. Expressions of interests were received from more than 100 groups potentially interested to establish productive partnerships. The interested groups are being mobilized to facilitate productive partnerships along the selected value chains. Good progress continues to be made with the activities aimed at strengthening seed research and variety development program and upgrading seed production and processing system. The national animal disease control program is advancing well. The project aims to achieve the following results: increase in marketed output in at least 60 percent of targeted value chains and agribusinesses funded under the project credit line and grant facilities. Some 50 investment sub-loans in a wide range of agribusiness activities have been issued. 75 percent of beneficiary agribusinesses financed by the credit line report growth of 45 percent in sales already in the first year of their sub-project implementation. While the project continues to perform well, some adjustments are required in the scope of the remaining project activities and terms of the project credit line in view of the reforms of the institutional set-up in the food safety system and overall situation in the banking sector in Azerbaijan. Extension of the project closing date is also necessary as assessed to enable satisfactory completion of key remaining activities. In view of this, achievement of development objectives and implementation progress are rated as moderately satisfactory. The project is expected to achieve fully the development objective during the expected extended period and through the adjustment in some activities. 4/10/2018 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) 4/10/2018 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) 4/10/2018 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) 4/10/2018 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  Moderate  Moderate Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Increase in marketed output in at least of 60% of the targeted value chains and agribusinesses funded by the project grant facility and credit line. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 35.00 45.00 20.00 Date 31-Dec-2015 02-Oct-2017 01-Jan-2018 31-Dec-2018 Comments 75 percent of agribusinesses benefited from the project credit line demonstrate sizeable growth of 45 percent Overall Comments 4/10/2018 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) Intermediate Results Indicators PHINDIRITBL  Decreasing of prevalence of brucellosis disease in animals (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.79 0.00 0.00 35.00 Date 10-Mar-2016 02-Oct-2017 01-Jan-2018 31-Dec-2018 Comments Baseline prevalence level established per results of countrywide serosurvey completed in January 2016. Vaccination campaigns of 2016 - 2017, including initial full-flock vaccination and subsequent vaccination of young animals were completed on schedule. The final serosurvey to determine the prevalence will be conducted towards the end of the project. . PHINDIRITBL  Volume of Bank Support: Lines of Credit - SME (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 8.00 12.96 Date 01-Sep-2014 02-Oct-2017 01-Jan-2018 31-Dec-2018 Comments No changes in the amount of credit line resources allocated as there have been effectively no disbursements since the previous mission due to the sharp increase in on-lending rate to the PFIs PHINDIRITBL  SPCS labs upgraded, pest diagnostic and pest risk analysis enhanced (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Equipment list Equipment list prepared SPCS lab prepared and needs and needs assessment equipped, staff Labs are not sufficiently assessment conducted conducted for training on trained in equipped, limited pest for training on pest pest control. However, modern pest disease diagnostic Value control. However, further activities will be disease capacity, no modern pest further activities revisited as many diagnostic and risk analysis methods deferred until the future functions of the SPCS, pest risk applied. lab functions of the including all lab analysis SPCS become clear. functions, have been methods 4/10/2018 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) transferred to the Food Safety Agency. Further details provided in comment section below. Date 01-Sep-2014 02-Oct-2017 01-Jan-2018 31-Dec-2018 Comments Many functions of the SPCS, which are planned to be supported by ACIP investments, have been transferred to the Food Safety Agency. All SPCS labs are transferred to the FSA by Decree of 26 January 2018. Other mandates of the SPCS, such as pest control and pest rick analysis, will likely be affected too. The SPCS and SSMAPC will prepare a proposal on adjustments required along with the revised indicators. PHINDIRITBL  New productive partnerships established and supported by the project . (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 4.00 15.00 Date 01-Sep-2014 02-Oct-2017 01-Mar-2018 29-Jun-2018 Comments Over 100 groups established their interest to establish productive partnerships. In a first round, concept notes for the fifteen sub-projects have been prepared. Eight concept notes and four sub-project proposals were approved by the Grant Committee and the Bank. Implementation of the first two sub-projects has started. PHINDIRITBL  Percentage of women participating in sub-projects funded by the project grant facility. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 01-Sep-2014 02-Oct-2017 01-Mar-2018 29-Jun-2018 4/10/2018 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) PHINDIRITBL  Volume of quality seeds increased in total production of seeds using modern seed cleaning equipment in the seed farms supported by the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 5.00 10.00 Date 01-Sep-2014 02-Oct-2017 01-Jan-2018 31-Dec-2018 PHINDIRITBL  NRICH seed lab upgraded and meet criteria for accreditation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Equipment and Procurement of training Targeted lab require Procurement of analytical equipment provided to additional equipment and analytical equipment for Value for the NRICH grain seed lab at training to become ISTA the NRICH grain quality quality laboratory NRICH. Labs compliant laboratory complete complete meet criteria for accreditation Date 01-Sep-2014 02-Oct-2017 01-Jan-2018 31-Dec-2018 Comments The project envisages upgrading the seed quality laboratory to become International Seed Trading Association (ISTA) compliant testing facility. By the project design, it was planned to upgrade the NRICH lab to make it prepared for accreditation. However, by the organigram of the newly created State Service on Variety Registration and Seed Control (SSVRCS), the premises of the exiting Chemical Laboratory of the SSVRCS will be expanded to house also a new ISTA compliance seed testing laboratory. Therefore, this indicator will need to be adjusted and PMU will prepare a proposal. The work for ISTA accreditation can only begin when the new seed testing laboratory building has been constructed and the new equipment has been installed and staff trained. PHINDIRITBL  Client days of training provided (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,129.00 1,129.00 1,000.00 Date 01-Sep-2014 02-Oct-2017 01-Jan-2018 30-Nov-2018 4/10/2018 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) PHINDIRITBL  Client days of training provided - Female (number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 225.00 225.00 200.00 Date 01-Sep-2014 02-Oct-2017 01-Jan-2018 30-Nov-2018 PHINDIRITBL  Volume of Bank Support: Institutional Development - SME (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 71.80 71.80 565.00 Date 01-Sep-2014 02-Oct-2017 01-Jan-2018 31-Dec-2018 PHINDIRITBL  Number of sub-projects financed by the project credit line (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 51.00 51.00 85.00 Date 01-Sep-2014 02-Oct-2017 01-Jan-2018 28-Dec-2018 PHINDIRITBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,177.00 1,221.00 10,000.00 Date 01-Sep-2014 02-Oct-2017 01-Jan-2018 31-Dec-2018 Comments Direct project beneficiaries include veterinarians (403) and students of Vet Faculty (166) benefited from the project training program on vaccination techniques and participating in the vaccination campaign, number of new jobs (510) created in agribusinesses benefited by the project credit line, and lab staff of SSVRSC (21) and SVCS (26), and 51 employees of seed stations and private seed growers, 44 participants of the first two value chin sub-projects that have started implementation and others. The number of beneficiaries will pick up in coming months with implementation of value chain sub-projects that have been approved and will receive financing from the project in March-June 2018. In addition, 90,000 livestock owners have been indirectly benefited from the vaccination of their animals under the project animal health control program. 4/10/2018 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) PHINDIRITBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 17.60 18.40 20.00 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P122812 IBRD-82860 Effective USD 34.50 34.50 0.00 18.00 16.50 52% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P122812 IBRD-82860 Effective 30-Sep-2013 12-Jun-2014 27-Aug-2014 31-Dec-2018 31-Dec-2018 Cumulative Disbursements 4/10/2018 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report AGRICULTURAL COMPETITIVENESS IMPROVEMENT PROJECT (P122812) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/10/2018 Page 12 of 12 Public Disclosure Copy