The World Bank Report No: ISR16107 Implementation Status & Results Montenegro Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) Public Disclosure Copy Operation Name: Montenegro Institutional Development and Agriculture Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive Date: 07-Nov-2014 Strengthening (MIDAS) (P107473) Country: Montenegro Approval FY: 2009 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Agriculture and Rural Development Key Dates Board Approval Date 21-Apr-2009 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 17-Sep-2012 Last Archived ISR Date 05-Apr-2014 Effectiveness Date 23-Jul-2009 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date 28-Nov-2012 Project Development Objectives Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve delivery of government assistance for sustainable agriculture and rural development in a manner consistent with the EU's pre-accession requirements. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P110602) Global Environmental Objective (from Project Appraisal Document) The Global Environment Objective is to mainstream sustainable land use and natural resource management into MAFWM's policies, programs and investments. These efforts will be particularly critical for the north of Montenegro, where there are sensitive mountain ecosystems of global importance, and where poor rural residents are largely dependent on the natural resource base for their livelihoods. Has the Global Environmental Objective been changed since Board Approval of the Program? Yes No Public Disclosure Copy Component(s) Component Name Component Cost Component 1: Strengthening MAFWM's rural development program 12.14 Component 2: Strengthening MAFWM's administrative and management capacity in accordance with 10.85 EU pre-accession requirements Component 3: Project Management, Administration and Monitoring 0.86 Overall Ratings Page 1 of 9 The World Bank Report No: ISR16107 Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Progress towards achievement of GEO Moderately Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview MIDAS implementation is continuing at a moderately satisfactory pace. In addition to the IPARD-like grants, which have been always working well, the Paying Agency, Farm Registry, and cooperation with the EU have all improved significantly. However there are stillsome implementation delays which create some risks that not all project activities will be fully completed by project closing on June 30, 2015. It will be important for the Ministry of Agriculture to implement measures to accelerate implementation. The project is significantly contributing to build the capacity of the Ministry of Agriculture and Rural Development (MARD). The main achievements since the last Implementation Supervision Report in reaching the project development objective are: (i) The design of the rehabilitation for the building to house the future IPARD Paying Agency has started. A preliminary design has already been reviewed by the World Bank and found acceptable. Bidding documents including final design and bill of quantities are expected by October 10. The rehabilitation, once completed, will help Montenegro fulfill a key requirement for IPARD accreditation; (ii) Smooth implementation of five rounds of the MIDAS grants program is continuing. Related capacity building activities of all MARD sectors involved in the design, preparation, implementation of the Sector for Rural Development, Sector for Payment and the Extension Service, and also the farmers’ learning process in applying for IPARD-like grants is proceeding without significant obstacles. Since the beginning, in five rounds of grants, 1,465 applications have been received, 747 have been approved, all funds available for grants (amounting to around EUR7 million) have been contracted and about EUR4.1 million have been transferred to beneficiaries. Investments include, inter alia: 194 tractors, 1,292 cultivators (two-wheel tractors) and other equipment, 291 cattle, 190 sheep, 395 goats, 27 stables built for more than 5,000 square meters, and improved manure management in 100 farms; (iii) The selection process of the company to design the software for the Farm Registry (FR) has been completed and contract signing is expected to take place soon; (iv) The technical assistance for the screening/classification of Food Establishments has been successfully completed; (v) The collaboration with the EU has been strengthened and led to signing an Administration Agreement for a €3.2 M Trust Fund to finance the EU/IPA Agriculture and Rural Development Institution Building Project (P144994) Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Montenegro Not Entered Zeta Montenegro Not Entered Podgorica Montenegro Not Entered national park Prokletije Montenegro Not Entered Moraca Montenegro Not Entered Kotor Page 2 of 9 The World Bank Report No: ISR16107 Country First Administrative Division Location Planned Actual Montenegro Not Entered Nacionalni Park Durmitor Public Disclosure Copy Montenegro Not Entered Nacionalni Park Biogradska Gora Montenegro Not Entered Bar Montenegro Not Entered Cijevna river Montenegro Not Entered Lovcen National Park Montenegro Not Entered Tara Biosphere Reserve Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target MAFWM capacity to disburse and track the use Text Value Limited coverage of Achieved. MARD developed a Fully compliant monitoring of rural development funds and to evaluate monitoring and verification. system to disburse & track and evaluation system, their impact in line with EU IPARD use of rural development eligible for EU accreditation. requirements. funds, procedures are improved in each forthcoming round, capacity of people involved enhanced. Accreditation package drafted includes procedures fully aligned with IPARD. M&E system developed and operational for IPARD like measures and programs for grant support. Indicators developed. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Public Disclosure Copy Comments EU IPARD compatible rural development Text Value No EU IPARD compatible Achieved. Rural development Rural development measures measures fully integrated in MAFWM support rural development measures measures (101, 103, and 302) defined in EU IPARD program programs. in MAFWM support programs included in IPARD program. Measure 101 integrated in MARD support through MIDAS grants program round 1 and 4. Agro-environmental measures integrated in MARD support program through Page 3 of 9 The World Bank Report No: ISR16107 MIDAS grants program round 2, 3 and5. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Public Disclosure Copy Comments Food safety system upgraded in EU compliant Text Value Reference Labs lacking Partially achieved. Veterinary Lab accreditation completed, manner. equipment and/or facilities, Diagnositc Lab equipped, 16 supply of BIP equipment, full BIPs and food processing methods accredited; Kotor monitoring of water and establishments not meeting Marine Biology Institute aquaculture products, full EU standards, animal by- rehabilitated, furnished and disposal of animal by- products not safely disposed equipped. Bar Border products, food establishments of Inspection Post under meeting EU standards for construction; gap analysis on approval legal/insitutional, adminsitrative and technical aspects of food system completed, TA to create animal by-products legal and regulatory framework, and increase administrative and technical capacity under implementation. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Agri-environmental measures integrated into Text Value Rural Development Unit has Achieved. Agri-environmental Evaluation and analysis of MAFWM's development program. no staff assigned for agri- measures integrated into applications for agri- environmental issues MARD MIDAS grants environmental measures Limited integration of agri- program, MARD staff involved continuing. environmental measures in in the preparation and support programs implementation of measures. Public Disclosure Copy Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments Improved capacity of extension and advisory Text Value Extension Service has no Achieved. Code of Good All Extension Officers services to introduce agri-environmental training program for or staff Agriculture Practice delivering comprehensive measures specialized in agri- developed and adopted, service for agri-environmental environment. included as mandatory measures. requirements for the grants program. Capacity of extension service to advice and monitor on the Page 4 of 9 The World Bank Report No: ISR16107 implementation of the Code developed through study tour and on-the-job practice. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Public Disclosure Copy Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Investments in agricultural and rural Text Value Number of commercial 327 commercially oriented 400 agro-holdings development in line with IPARD measures orientated farmers availing of agro-holdings market driven support measures is 0 (zero) Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments Before the project, the Government provided investment support to 1200 farmers, but not in line with IPARD measures Adoption of agri-environmental measures Text Value No awareness and use of 130 agricultural households 200 agricultural households among beneficiaries. agri-environmental measures adopted agro-environmental among farmers, processors, measures and rural communities. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments Amount of IPARD-like grant funding awarded Number Value 0.00 7300000.00 7000000.00 (Euros) Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments "Awarded" means that a grant contract was signed. Amount of grant fund disbursed (Euros) Number Value 0.00 3900000.00 5925925.90 Date 23-Mar-2009 02-Aug-2014 Public Disclosure Copy Comments Original target in Euros. Original target in Euros. Assumed exchange rate 1.35 Assumed exchange rate 1.35 Client days of training provided (number) Number Value 0.00 5492.00 5330.00 Date 23-Mar-2011 02-Aug-2014 30-Jun-2015 Comments No training was provided on IPARD-like grants before the project Page 5 of 9 The World Bank Report No: ISR16107 Client days of training provided - Female Number Value 0.00 805.00 800.00 (number) Sub Type Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Breakdown Comments No training was provided on Public Disclosure Copy IPARD-like grants before the project Clients who have adopted an improved Number Value 0.00 1107.00 1500.00 agricultural technology promoted by the project Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 (number) Comments Direct project beneficiaries Number Value 0.00 5717.00 5500.00 Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments 15% of direct project beneficiaries are women. Female beneficiaries Percentage Value 0.00 889.00 825.00 Sub Type Supplemental Land area where sustainable land mgt. Hectare(Ha) Value 0.00 1883.00 2000.00 practices were adopted as a result of proj Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments Supports toward Montenegro IPARD Text Value No structure in place Partially achieved. Bodies IPARD program II approved accreditation required to implement IPARD by EU, updated accreditation program established, i.e. package according to IPARD Directorate for IPARD program II and submitted for Payments/Paying Agency, national accreditation, Paying Department for Rural Agency building, IT and Farm Development/Managing Registry system functional. Authority; staff trained and implementing IPARD like program. Accreditation package submitted for national accreditation, under Public Disclosure Copy revison to address auditors findings, Software for Farm Registry in preparation. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments EU IPARD compatible Rural Development Text Value No EU IPARD compatible In progress. The final IPARD Final IPARD Program II Plan, including agri-environmental measures, Rural Development Unit or Program I and draft IPARD submitted to EU submitted to EU. Plan. Program II submitted to EC DG Agri Page 6 of 9 The World Bank Report No: ISR16107 Date 23-Mar-2009 02-Aug-2014 30-Jun-2014 Comments Rural Development Unit was During the project life EU established in PY2. The IPARD programming I ended Public Disclosure Copy Guidelines were completed in its cycle (2013), and IPARD PY3 and the Monitoring programming phase II Committee started to review 2014-2020 started. outcomes from PY4. All agricultural and rural development Text Value Non-compliant system. Achieved. MARD and its Proto-Paying Agency remains investments executed through an EU IPARD Directorate for IPARD operational. compatible Proto-Paying Agency (as approved Payments approved by the by the World Bank). Bank to be fully in charge for execution of payments as detailed in the grants fourth and fifth round operational manual. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments End date revised Agricultural Census is implemented and results Text Value No agricultural census data Achieved. Census Main agricultural census disseminated. available. implemented and results implemented. Statistical disseminated. register established Date 23-Mar-2009 02-Aug-2014 30-Jun-2014 Comments Integrated farm register operational Text Value No farm register in place. In progress. Regulation on Farm Register software and register of agricultural hardware system in place, holdings and register of registration of farms initiated entities adopted. Hired and ongoing. company to develop Farm Register software. Farm registration process awareness campaign conducted and registration requirement introduced in fifth Public Disclosure Copy round of MIDAS grants program. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments Number of analysis methods of the Veterinary Text Value No accreditation at present, Achieved. Vet Diagnostic Achieved. Vet Diagnostic Diagnostic Laboratory in Podgorica ISO 17025 overlapping competence in Laboratory in Podgorica has Laboratory in Podgorica has accredited. food safety system. 16 analysis methods 16 analysis methods ISO17025 accredited ISO17025 accredited Date 23-Mar-2009 02-Aug-2014 30-Jun-2014 Page 7 of 9 The World Bank Report No: ISR16107 Comments Justification for the change: the ISO17025 standard is a more precise indicator since it refers to specific analysis Public Disclosure Copy methods ratherthan the lab facility as a whole Marine Biology Institute in Kotor functioning as Text Value No suitable facilities in place. Partially achieved. Marine Full monitoring of sea waters NRL in adequate facilities. No clearly defined role in food Biology Institute rehabilitated, and aquaculture products in safety system, no routine provided with lab furniture and line with national legislation. testing performed. equipment. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments End date revised Veterinary and phyto-sanitary border controls Text Value No suitable facility in place In progress. All necessary Building completed, performed in EU-compliant facility in Bar. approvals obtained, Bar equipment procured and Border Inspection Post installed. construction started. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments Feasibility Study on safe disposal of animal by- Text Value National, non-EU compliant Legal framework on safe Legal framework on safe products prepared and legal framework system of safe disposal of disposal of animal by- disposal of animal by- improved. ABPs in place products under preparation. products drafted. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments Target revised Food establishments classified and annual Text Value No system in place Preliminary classification and Procedures for classification control plans prepared. annual control plans of food establishments and completed. annual control plans completed according to EU standards. Date 23-Mar-2009 02-Aug-2014 30-Jun-2015 Comments Public Disclosure Copy Data on Financial Performance (as of 27-Aug-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P107473 IBRD-77160 Effective 21-Apr-2009 27-May-2009 23-Jul-2009 30-Jun-2014 30-Jun-2015 P110602 TF-93405 Effective 27-May-2009 27-May-2009 23-Jul-2009 30-Jun-2014 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Page 8 of 9 The World Bank Report No: ISR16107 P107473 IBRD-77160 Effective USD 15.70 15.70 0.00 10.20 4.85 65.00 P110602 TF-93405 Effective USD 15.70 4.00 0.00 2.19 1.81 55.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation The project closing date was recently extended from June 30, 2014 to June 30, 2015 Restructuring History Level 2 CD Decision on 20-May-2014 Related Projects Public Disclosure Copy P110602-Montenegro Institutional Development and Agriculture Strengthening (MIDAS) Page 9 of 9