The World Bank Implementation Status & Results Report Dem Rep Congo - Western Growth Poles (P124720) Dem Rep Congo - Western Growth Poles (P124720) AFRICA | Congo, Democratic Republic of | Agriculture Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 11 | ARCHIVED on 08-Jan-2019 | ISR35420 | Implementing Agencies: CFEF, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 11-Jun-2013 Effectiveness Date: 16-Oct-2013 Planned Mid Term Review Date: 15-May-2017 Actual Mid-Term Review Date: 15-May-2017 Original Closing Date: 30-Aug-2019 Revised Closing Date: 30-Aug-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed Project Development Objective (PDO) is to increase productivity and employment in selected value chains in target zones. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Agriculture Value Chains Development in Bas-Congo:(Cost $48.00 M) Special Economic Zone of Maluku:(Cost $27.00 M) Proactive Business Development:(Cost $16.00 M) Coordination, Monitoring, Communication and Impact Assessment:(Cost $8.00 M) Contingencies:(Cost $11.00 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 High High Implementation Status and Key Decisions This ISR draws from the findings and decisions of the supervision mission carried out in November 2018, and from ongoing project monitoring. Overall, progress is being made on all project’s activities, despite delays in Component 2: development of the Maluku SEZ. Disbursement has increased slowly but steadily, from 38 percent at MTR in May 2017 to 61 percent today, and is expected to pick up significantly over the next six months with the acceleration of large infrastructure works under sub-components 1.2 and 2.3. 1/8/2019 Page 1 of 9 The World Bank Implementation Status & Results Report Dem Rep Congo - Western Growth Poles (P124720) Regarding Component 1: The main results achieved under this component are, in particular, to increase the availability of improved cassava cuttings and improved rice seed, as well as the distribution of better performing oil palm seedlings. In addition, the project has also made significant progress with regards to the rehabilitation of rural access roads. Similarly, with the deployment of local service providers at the six nodal poles, the strengthening of producer organizations into cooperatives has continued apace, and the project has made it possible to organize 19,395 households in 301 agricultural cooperatives, including 170 in cassava, 39 in rice and 92 in palm oil. To date , the production of improved planting material reached: (i) 32,13 tons of foundation rice seed and 87.2 tons of R1 seeds made available to farmers' organizations and seed operators; (ii) 2,086,005.69 linear meters of improved foundation cassava cuttings were produced by INERA and 6,788,966 linear meters of primary cuttings were made available to farm households by seed operators ; (iii) more than 340,000 oil palm seedlings have been produced and made available to farmers. Noticeable yields increase registered as follows: from 0.9 ton per ha to 1,7 tons per ha for rainfed rice and 1.8 tons to 4 tons per ha for irrigated rice; while for cassava, yields have increased from 12.5 tons per ha to a pic of 24 tons per ha to date. Progress for Palm oil is slow but substantial with the introduction and dissemination of new varieties among the palm oil farmers. With this improved planting material, the average productivity increased from 0.8 tons to more than 3.7 tons for rice and from 5 tons to more than 18 tons for cassava. However, some delays were experienced in the operationalization of the Matching Grant Scheme. Rural Infrastructure: To date, 515 km of rural roads along 21 axes have been completed. The impact of these roads on the populations is considerable by the reduction of the travel time (cumulative reduction of the time on the 515 km of 129 hours before rehabilitation at 15h hours in total), and concomitant reduction on the price of the transport of people and goods. The construction of the electricity line (including power substation and equipment) has experienced some delays largely due to delays experienced with regards to releasing equipment and materials from the Port Authorities in Boma. The related works on the electricity line is now expected to be completed by the end of June 2019. Agro-Industrial Platform: On the basis of technical feasibility studies, financial, economic and environmental and social impact, a specialized firm was recruited for the construction and management of the agro-industrial platform of Lukula. The contract was signed on October 4, 2018 and the platform is expected to be completed prior to the project closing date. Critical issues under this component remain the timely construction of the agro industrial platforms, the acceleration of the implementation of the MG scheme, and the finalization of the rural roads maintenance strategy and its operationalization. Regarding Component 2, following the Mid-Term review of May 2017, a restructuring was processed and approved in January 2018 that allowed the reengineering of the component for a results-oriented approach to enable the completion of critical activities within the existing timeframe of the project. Progress has been made on Component 2 with the TA provided by the transaction adviser IOS Partners, Inc. - CPCS Transcom Ltd. that was recruited in 2017 to help the Government in selecting a zone developer. The demand assessment was updated in March 2018, confirming the interest of private operators for the Maluku SEZ while also capturing their overall frustration on the slowness of the ZES development that has lasted for over 10 years since IFC initiated the program in 2008. The transaction adviser has delivered important reports since January 2018, including a benchmarking analysis, a value chain studies, a report on applicable PPP models and a report on the legal and institutional environment around the SEZ. In order to move forward with the selection of the ZES developer, the mission recommended to launch the Expression of Interest with the technical Terms of Reference attached and then proceed with a shortlist of eligible developers. A Demand for Proposal will then be sent to the eligible candidates to request their technical and financial proposals. The developer is expected to be selected competitively by March 2019 and a PPP signed before project closing in August 2019 with support from the transaction advisor. On the setting up of the Agency in charge of SEZ regulation (called AZES), the HR firm Core Advice-Boyden-FTHM-JNC Consulting was recruited in October 2017 to support the GoDRC in the competitive selection of key AZES personnel, such as the (i) General Manager Marketing, (ii) Promotion and Communication Director, (iii) Legal Director, and (iv) Environmental and Social expert. The shortlist was submitted to IDA for clearance in June 2018. Based on IDA's observations, the selection report was revised and resubmitted to IDA in November 2019. This process is expected to be completed within two months. Following the recruitments, capacity building will be provided to the AZES to make it fully operational. On infrastructure works, it was anticipated during the MTR that the project will only be able to finance the construction of critical infrastructure around the zone in the remaining timeframe for the limited amount of US$3m. All safeguards documents have now been approved. The mission urged CFEF to launch the procurement for those works immediately, with an expected completion date of August 2019. The Component 3 is mostly financing studies to support business climate reforms. As of now, all studies have been completed. The mission agreed on the implementation of key recommendations that came out of those studies, particularly on streamlining the process for obtaining construction permits to facilitate investments. A US$ 300,000 IFC Trust Fund has been mobilized to support the deployment of the construction permit software in the DRC. The 1/8/2019 Page 2 of 9 The World Bank Implementation Status & Results Report Dem Rep Congo - Western Growth Poles (P124720) project will finance the deployment of the software at the Ministry of Urban Planning and two urban divisions of Kinshasa. In addition, it will finance the acquisition of computers, installation of the network infrastructure as well as the adaptation of the software by a local firm. 1/8/2019 Page 3 of 9 The World Bank Implementation Status & Results Report Dem Rep Congo - Western Growth Poles (P124720) 1/8/2019 Page 4 of 9 The World Bank Implementation Status & Results Report Dem Rep Congo - Western Growth Poles (P124720) 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 -- Moderate Moderate Technical Design of Project or Program -- High High Institutional Capacity for Implementation and Sustainability -- High High Fiduciary -- High High Environment and Social -- Moderate Moderate Stakeholders -- Substantial Substantial Other -- -- -- Overall -- High High Results PDO Indicators by Objectives / Outcomes Increased employment IN00612822 ►Number of jobs created in select value chains (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,000.00 4,037.00 5,000.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612877 Of which female (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 20.00 50.00 Increased productivity in selected value chains IN00612824 1/8/2019 Page 5 of 9 The World Bank Implementation Status & Results Report Dem Rep Congo - Western Growth Poles (P124720) ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40,000.00 30,104.00 50,000.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612881 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 44.00 40.00 IN00612825 ►Productivity of food crops in select value chains inter-alia: (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612882 (iii) Palm oil (Metric ton, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 3.00 3.00 15.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612883 (ii) Rice (Metric ton, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 1.80 4.00 3.10 3.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612884 (i) Cassava (Metric ton, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 19.00 18.40 20.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 Intermediate Results Indicators by Components Agriculture Value Chains Development in Bas-Congo IN00612823 ►Volume of food crops produced by the supported farmers organizations and agro-industrial farms, inter-alia: (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 1/8/2019 Page 6 of 9 The World Bank Implementation Status & Results Report Dem Rep Congo - Western Growth Poles (P124720) Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612878 (iii) Palm oil (Metric ton, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 100.00 100.00 750.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612879 (ii) Rice (Metric ton, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 20.00 20.00 37.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612880 (i) Cassava (Metric ton, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 1,000.00 1,000.00 1,000.00 3,900.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2018 IN00612873 ►Rural roads rehabilitated to link production centers to markets (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 542.00 515.00 500.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612872 ►Volume of food processed at technical food processing centers (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 Special Economic Zone of Maluku IN00612874 ►Number of enterprises in the SEZ (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 10.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612871 ►AZES put in place (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/8/2019 Page 7 of 9 The World Bank Implementation Status & Results Report Dem Rep Congo - Western Growth Poles (P124720) Value No -- No Yes Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 Proactive Business Development IN00612875 ►Number of feasability studies supported by the project which resulted in investments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 11-Jun-2013 26-Jun-2018 30-Nov-2018 30-Aug-2019 IN00612876 ►Time to export (Doing Business) (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,213.00 1,213.00 488.00 600.00 Date 02-Jan-2017 26-Jun-2018 30-Nov-2018 30-Aug-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P124720 IDA-H8600 Effective USD 110.00 110.00 0.00 65.06 36.94 64% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P124720 IDA-H8600 Effective 11-Jun-2013 22-Jul-2013 16-Oct-2013 30-Aug-2019 30-Aug-2019 Cumulative Disbursements 1/8/2019 Page 8 of 9 The World Bank Implementation Status & Results Report Dem Rep Congo - Western Growth Poles (P124720) Restructuring History Level 2 Approved on 09-Sep-2015 ,Level 2 Approved on 29-Jan-2018 Related Project(s) There are no related projects. 1/8/2019 Page 9 of 9