The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) Strengthening Agri-Food Value Chains (P158346) MIDDLE EAST AND NORTH AFRICA | Morocco | Agriculture Global Practice | Requesting Unit: MNC01 | Responsible Unit: GFA05 IBRD/IDA | Program-for-Results Financing | FY 2018 | Team Leader(s): David Olivier Treguer, Hind Kadiri Seq No: 3 | ARCHIVED on 11-Apr-2019 | ISR36512 | Created by: David Olivier Treguer on 01-Apr-2019 | Modified by: David Olivier Treguer on 08-Apr-2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) The Program Development Objective is to increase the volume of added-value products commercialized in selected agri-food value chains in the Program area. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions Following approval by the Board on December 20, 2017 and signing of the Loan Agreement on December 21, 2017, the loan became effective on December 27, 2017 and a first disbursement of $50.5 million (including an advance of $50 million) was made on December 29, 2017 followed by disbursements for prior results of $7.29 million in July 2018 and $18 million in December 2018. Total disbursements have thus reached $75.79 million, and an additional disbursement of $17.67 million is being processed. A recent Implementation Supervision mission carried out from January 21 to 30, 2019 pointed to a high level of ownership of the Program within the Ministry of Agriculture, Fisheries, Rural Development, Water and Forests (MAPMDREF) and other implementation agencies (ONSSA, Wilaya) and noted satisfactory progress towards the achievement of the PDO. The Supervision mission also noted that the Technical Assistance team hired in September 2018 was actively supporting the PIU, including on safeguards aspects. The mission noted that particular attention should be given to the completion of 3 DLRs which were supposed to be completed by end of CY2018: DLRs: 2.1 (revision of aggregation Law), 6.1 (Signature of Agreement between Borrower and IAEA), and 8.1 (Design of the Integrated Financial Management System). These DLRs add up to $10 million and their completion is a necessary condition to achieve the subsequent results. Finally, and taking into account the overall positive progress recorded by the Program, the Task Team noted the potential interest for the extension to additional value chains other than olives and citrus and will explore this possibility with the counterparts during the next mission scheduled for June 2019. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed 4/11/2019 Page 1 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) P158346 IBRD-88150 Effective USD 200.00 200.00 0.00 75.79 124.21 38% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P158346 IBRD-88150 Effective 20-Dec-2017 21-Dec-2017 27-Dec-2017 30-Sep-2023 30-Sep-2023 Program Action Plan Action Description Recruitment of TA to strengthen PMU capacities Source DLI# Responsibility Timing Timing Value Status MAMPDREF Due Date 30-Apr-2018 Completed Completion Measurement A team of consultants from Groupement AFCI Consultants Maroc and AFC Agriculture & Finance Consultants GmbH Comments was recruited on September 17 to provide technical assistance to the PMU for a period of 60 months. (i) Program Operational Manual (POM) approved by the Bank, and (ii) instructions issued for its use by Program Action Description implementing entities Source DLI# Responsibility Timing Timing Value Status MAMPDREF, ADA, Due Date 30-Mar-2018 Completed ONSSA Completion Measurement The POM was approved by the World Bank on December 20, 2017 and shared with implementing entities on Comments February 6th, 2018. Action Description Deployment of the integrated financial management system Source DLI# Responsibility Timing Timing Value Status DLI 8 DF Due Date 31-Dec-2019 In Progress Completion Measurement The Direction Financier (DF) has started to internally design and implement the Integrated Financial Management Comments system, MISAGRI. Out of two main modules, the first has been developed and tested, the second is in the early development stage. Action Description Strengthen technical staff with dedicated technician, for managing the construction of the wholesale market 4/11/2019 Page 2 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) Source DLI# Responsibility Timing Timing Value Status RRA Due Date 29-Jun-2018 Completed Completion Measurement Comments RRA has recruited a technician for supervising the construction of the wholesale market. Periodic reporting on the construction of the wholesale market (physical and financial progress), including technical Action Description and fiduciary performance aspects Source DLI# Responsibility Timing Timing Value Status RRA Recurrent Yearly Not Yet Due Completion Measurement Comments Action Description Prepare consolidated periodic reports on contract execution with a performance analysis Source DLI# Responsibility Timing Timing Value Status MAPMDREF/ONSS Fiduciary Systems Recurrent Continuous Not Yet Due A/RRA Completion Report sent to the World Bank. Measurement The first periodic report covering January-June 2018 was sent to the World Bank in August 2018 and has been found Comments satisfactory (with minor revisions). The second report covering July-December 2018 was due February 15, 2019. Preparation of a technical guide and tools for environmental and social management practices and Action Description Dissemination/training of all parties involved in Program implementation Source DLI# Responsibility Timing Timing Value Status Environmental and Social MAPMDREF Due Date 29-Jun-2018 Completed Systems Completion Technical guide shared with the Bank for approval. Measurement Comments The guide was transmitted to the World Bank on January 14, 2019 and subsequently approved. Action Description Recruitment of Environmental and Social Focal Points (E&S specialists) within PMU Source DLI# Responsibility Timing Timing Value Status 4/11/2019 Page 3 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) MAPMDREF Due Date 30-Apr-2018 Completed Completion Measurement Comments An environmental specialist and a social specialist have been recruited as part of the Technical Assistance. Action Description Implementation of all procedures and tools defined in the technical manual including M&E Source DLI# Responsibility Timing Timing Value Status PMU/ Environment & Due Date 31-Dec-2018 Not Yet Due Social specialist Completion Measurement Comments Exclusion of involuntary land acquisition under the Program, ensure prior land acquisitions complies with national Action Description regulations and WB policy core principles Source DLI# Responsibility Timing Timing Value Status MI/ Wilaya/RRA/commu Due Date 29-Jun-2018 Completed nes Completion Measurement The owners of two plots (4ha) inside of the area dedicated to the wholesale market were compensate with equally Comments sized parcels in other locations, which they accepted on amicable agreement. Improvement in targeted agricultural production and processing sectors regarding compliance with existing Action Description environment and labor laws and regulations, including child labor and social security Source DLI# Responsibility Timing Timing Value Status PMU/ E & S specialist/ Due Date 31-Dec-2018 Not Yet Due Interprofession Completion Measurement Comments Part of the Technical Assistance. 4/11/2019 Page 4 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) Consultations undertaken with stakeholders of the existing wholesale market and current land users to ensure that Action Description the transfer of wholesale market activities is undertaken in a socially sustainable manner and loss of livelihood is mitigated Source DLI# Responsibility Timing Timing Value Status Wilaya/communes/M Due Date 01-Jan-2020 Not Yet Due I/RRA/SDL or SDR Completion Measurement Comments Agreement between the Borrower and IAEA duly signed for the provision of equipment and relevant training for the Action Description center for the production of sterile ceratitis males, under terms and conditions set in the POM Source DLI# Responsibility Timing Timing Value Status DLI 6 ONSSA/DRA de Other Due Date 31-Dec-2019 In Progress Souss Massa Completion Signature of the agreement between Morocco and IAAE. Measurement The documents necessary to obtain the authorization to import the irradiator from AMSSNuR are being finalized by Comments an expert in radioprotection from INRA. The agreement between Morocco and IAAE will be signed after obtaining authorization from AMSSNuR. Signature of partnership agreement and preparation of legal framework and implementation decrees relative to the Action Description conditions and modalities of spreading of liquid residues from the crushing units of olives on agricultural land Source DLI# Responsibility Timing Timing Value Status MAPMDREF/Min of Other Envt/ E&S Focal Due Date 31-Dec-2020 Not Yet Due point Completion Publication in the official gazette. Measurement The draft Decree has been prepared and was sent for signature to the Ministry of Equipment, Transport, Logistics Comments and Water (METELE). The draft Convention was sent for signature to the Ministry of Economy and Finance (MEF). Action Description Establishment of a simple integrated M&E system for Program implementation Source DLI# Responsibility Timing Timing Value Status DSS, DDFP, ADA, Due Date 31-Dec-2018 Not Yet Due DRAs 4/11/2019 Page 5 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) Completion Measurement Comments Action Description Conduct of mid-term evaluation and end-of-Program implementation evaluation of results and impacts Source DLI# Responsibility Timing Timing Value Status MAPMDREF Due Date 30-Jun-2020 Not Yet Due Completion Measurement Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other Low Low Low Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes To increase the vol of added-value products commercialized in selected agfood VC in the program area IN00686797 ►Volume of conditioned and exported citrus (Tones/year, Custom) 4/11/2019 Page 6 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) Baseline Actual (Previous) Actual (Current) End Target Value 556,800.00 659,200.00 677,792.57 750,000.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686798 ►Volume of conditioned and exported olives (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 73,129.00 32,475.00 68,569.89 98,000.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 The value as of end of November 2018 was 68,569.89 tons, but estimates for the full 2018 year were Comments 75,000 tons. IN00686799 ►Volume of high quality olive oil commercialized (i.e. quality is higher than lampante) (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10,000.00 10,000.00 10,000.00 20,000.00 Date 29-Nov-2017 12-Mar-2018 03-Apr-2019 31-Dec-2022 Comments Intermediate Results Indicators by Results Areas Increased market efficiency and integration IN00686800 ►Interprofessions with business plans approved and intra-branch agreements adopted to ensure sust. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686802 ►Private investments in conditioning, cold storage and/or processing units (olive, citrus) generated (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 18.00 70.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686804 4/11/2019 Page 7 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) ►Amended Law no. 4-12 on agricultural aggregation dated 2012 is under implementation (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686806 ►Additional producers aggregated (olives, citrus) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 297.00 312.00 1,500.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686808 ►At least one wholesale market is operating and applying the new management model (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686810 ►Use of market information services for mobile phones and of the application Publi-Asaar (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200,000.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 The activity is being prepared at a good pace: the call for tender for price coverage in the Casablanca Comments region has been completed and the development of the Publi-ASAAR application is being finalized. IN00686812 ►At least one public consultation on the Program carried out each year by MAMPDREF (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 A public consultation on the olive value chain was held on April 3, 2019 in Meknes. Comments Improved added-value of agri-food products IN00686801 ►Small and/or medium enterprises agri-food authorized by ONSSA (Number, Custom) 4/11/2019 Page 8 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) Baseline Actual (Previous) Actual (Current) End Target Value 5,000.00 5,243.00 5,243.00 6,000.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686803 ►Area treated for Mediterranean fruit fly through the new Center (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20,000.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686805 ►Producers with an input register in the Souss-Massa region (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,000.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686807 ►SDOQ Products certified by the OCC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 8.00 8.00 28.00 Date 29-Nov-2017 12-Mar-2018 03-Apr-2019 31-Dec-2022 Comments IN00686809 ►Small- and/or medium-size producers and/or enterprises assisted by the Agri-food Innovation Center (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 Comments IN00686811 ►Projects using green practices and technologies implemented by beneficiaries of the Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 29-Nov-2017 24-Sep-2018 03-Apr-2019 31-Dec-2022 4/11/2019 Page 9 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Number of Interprofessions with business plans approved and intra-branch agreements (Accords Interprofessionnels) adopted to ensure sustainability (Intermediate Outcome, 10,000,000.00, 0%) December 27 2017 to December 31 Baseline Actual (Previous) Actual (Current) 2022 Value 0.00 0.00 0.00 2.00 Date -- 24-Sep-2018 03-Apr-2019 -- Two specific agreements (MAPMDREF - Maroc Citrus and MAPMDREF - Interprolive) to support the preparation of the two business plans were signed in November 2018 (the amount committed by MAPMDREF was MAD 1 million for each interprofession); Comments The ToRs for a study aimed at preparing the business plan was agreed between DDFP and Maroc Citrus and the bidding procedure was launched. The same actions are about to be completed for Interprolive too. ►DLI 2 Amended Law no. 4-12 on Agricultural Aggregation dated 2012 is under implementation: 2.1) Adoption by the Council of Government; 2.2) Amended Law published; 2.3) Implementation Decree and arrêté publ (Output, 10,000,000.00, 0%) December 27 2017 to December 31 Baseline Actual (Previous) Actual (Current) 2022 Value No No No Yes Date -- 24-Sep-2018 03-Apr-2019 -- MAPMDREF sent a response to the General Secretariat of the Government (SGG) on November 29, 2018 following the comments received on the Draft Law. The Direction of Legal Affairs from MAPMDREF (DAAJ) Comments was recently put in charge of speeding up the approval process. ►DLI 3 Number of new/upgraded conditioning, cold storage and/or processing units in selected agri-food value chains under operation (Intermediate Outcome, 70,000,000.00, 0%) December 27 2017 to December 31 Baseline Actual (Previous) Actual (Current) 2022 Value 0.00 0.00 18.00 70.00 Date -- 24-Sep-2018 03-Apr-2019 -- The Independent Verification Agency (General Inspectorate of Agriculture--IGA) is carrying out the verification of a list of 17 olive crushing units with environmental acceptability certificates and another list of 6 units (conditioning, cold storage); A joint decision between MAPMDREF and the Environment Department (SEDD) for the environmental Comments monitoring of olive crushing units was signed; Between January 1, 2018 and December 31, 2018, 30 subsidy applications (19 refrigerated units, 6 packaging units, 5 olive crushing units) were approved. 4/11/2019 Page 10 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) ►DLI 4 At least one wholesale market operating and applying the new management model as defined in the POM: 4.1 SDL/SDR established and registered; 4.2 Wholesale market constructed and fully equipped; 4.3 Ne (Intermediate Outcome, 34,500,000.00, 0%) December 27 2017 to December 31 Baseline Actual (Previous) Actual (Current) 2022 Value No No No Yes Date -- 24-Sep-2018 03-Apr-2019 -- Comments ►DLI 5 Number of small- and/or medium-size agri-food enterprises authorized by ONSSA (Intermediate Outcome, 30,000,000.00, 24%) December 27 2017 to December 31 Baseline Actual (Previous) Actual (Current) 2022 Value 5,000.00 5,243.00 5,243.00 6,000.00 Date -- 24-Sep-2018 03-Apr-2019 -- A disbursement of $17,670,000 is pending, following the successful verification of 589 units. Comments ►DLI 6 The Borrower’s center for the production of sterile ceratitis males providing farm treatment services to citrus producers: 6.1 Agreement between the Borrower and IAEA signed for the provision of equip (Intermediate Outcome, 15,000,000.00, 0%) December 27 2017 to December 31 Baseline Actual (Previous) Actual (Current) 2022 Value No No No Yes Date -- 24-Sep-2018 03-Apr-2019 -- The construction works for the center are in progress, with expected completion in June 2019. In addition, the documents necessary to obtain the authorization to import the irradiator from AMSSNuR are being finalized by an expert in radioprotection of INRA. Comments A building belonging to INRA (located in Tangiers) has already been equipped to temporarily house the irradiator. Lastly, the agreement between Morocco and IAAE will be signed after obtaining authorization from AMSSNuR. ►DLI 7 Number of small- and/or medium-size enterprises assisted by the Agri-food Innovation Centers (CIAs): 7.1 Two Agri- food Innovation Centers (CIAs) constructed/rehabilitated and fully equipped, and are o (Intermediate Outcome, 20,000,000.00, 0%) December 27 2017 to December 31 Baseline Actual (Previous) Actual (Current) 2022 Value 0.00 0.00 0.00 50.00 4/11/2019 Page 11 of 12 The World Bank Implementation Status & Results Report Strengthening Agri-Food Value Chains (P158346) Date -- 24-Sep-2018 03-Apr-2019 -- A feasibility study was launched on December, 21 2018 for the establishment of two innovation centers in the regions of Fès-Meknes and Oriental. This study will be conducted in three phases for a period of five (5) months, as follows: - Phase 1: International benchmark (45 days); - Phase 2: Definition of the concept and Comments procedures for setting up CIAs (60 days); - Phase 3: Definition of CIA management procedures and introduction of a call for projects mechanism for agro-industrial innovation (45 days). ►DLI 8 Establishment of Integrated Financial Management system to improve program management: 8.1 System designed; 8.2 System fully operational (Process, 10,000,000.00, 0%) December 27 2017 to December 31 Baseline Actual (Previous) Actual (Current) 2022 Value No No No Yes Date -- 24-Sep-2018 03-Apr-2019 -- The DF has agreed with the WB to postpone the disbursement of the first DLR to 2019 pending the completion of the second tranche, following a change in approach to the implementation of the integrated financial Comments management system. Thus, this DLI does not pose any particular problem and DLR 8.1 and 8.2 should be achieved concomitantly, before the end of 2019. 4/11/2019 Page 12 of 12