The World Bank Lesotho Smallholder Agriculture Development Project (P119432) REPORT NO.: RES38571 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF LESOTHO SMALLHOLDER AGRICULTURE DEVELOPMENT PROJECT APPROVED ON NOVEMBER 10, 2011 TO GOVERNMENT OF LESOTHO AGRICULTURE AND FOOD AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Marie Francoise Marie-Nelly Regional Director: Simeon Kacou Ehui Practice Manager/Manager: Holger A. Kray Task Team Leader: Bobojon Yatimov, Meeta Sehgal The World Bank Lesotho Smallholder Agriculture Development Project (P119432) ABBREVIATIONS AND ACRONYMS The World Bank Lesotho Smallholder Agriculture Development Project (P119432) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P119432 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 10-Nov-2011 28-Feb-2020 Organizations Borrower Responsible Agency Government of Lesotho Ministry of Agriculture and Food Security Project Development Objective (PDO) Original PDO To increase marketed output among project beneficiaries in Lesotho's smallholder agriculture sector. Current PDO Increase in marketed output among project beneficiaries in Lesotho s smallholder agriculture sector and, to improve the Recipient s capacity to respond promptly and effectively to an Eligible Crisis or Emergency. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed COFN-C1250 19-Dec-2011 19-Dec-2011 13-Mar-2012 31-Mar-2020 5.00 3.97 .49 COFN-C1260 19-Dec-2011 19-Dec-2011 13-Mar-2012 31-Mar-2020 5.00 3.97 .49 IDA-61440 29-Sep-2017 11-Oct-2017 20-Nov-2017 28-Feb-2020 10.00 4.57 5.39 The World Bank Lesotho Smallholder Agriculture Development Project (P119432) IDA-50170 10-Nov-2011 16-Nov-2011 09-Mar-2012 28-Feb-2020 10.00 8.87 .11 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Note: Formatting instructions for this document. A. Header 1. [All sub-sections must have a continuous paragraph numbering for the entire main text or for each annex per institutional standard.] (a) This is the sub-para numbering for this level. This is the sub-para numbering for this level. This is the sub-para numbering for this level. (i) This is the sub-para numbering for this level. This is the sub-para numbering for this level. (ii) This is the sub-para numbering for this level. This is the sub-para numbering for this level. (iii) This is the sub-para numbering for this level. This is the sub-para numbering for this level. The World Bank Lesotho Smallholder Agriculture Development Project (P119432) II. DESCRIPTION OF PROPOSED CHANGES Note: Formatting instructions for this document. B. Header 1. [All sub-sections must have a continuous paragraph numbering for the entire main text or for each annex per institutional standard.] (b) This is the sub-para numbering for this level. This is the sub-para numbering for this level. This is the sub-para numbering for this level. (iv) This is the sub-para numbering for this level. This is the sub-para numbering for this level. (v) This is the sub-para numbering for this level. This is the sub-para numbering for this level. (vi) This is the sub-para numbering for this level. This is the sub-para numbering for this level. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ The World Bank Lesotho Smallholder Agriculture Development Project (P119432) Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-50170-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: gds,wks,noncs,cs,train,not cov cat3 1,770,000.00 1,006,919.89 1,024,070.00 50.00 50.00 iLap Category Sequence No: 2 Current Expenditure Category: operating costs 304,000.00 341,963.80 411,897.00 50.00 50.00 iLap Category Sequence No: 3 Current Expenditure Category: gds,wks,noncs,cs,train under subgra 2,886,000.00 2,950,010.28 3,792,829.00 50.00 50.00 iLap Category Sequence No: 4 Current Expenditure Category: PPF REFINANCING 324,000.00 323,504.72 323,509.00 The World Bank Lesotho Smallholder Agriculture Development Project (P119432) iLap Category Sequence No: 5 Current Expenditure Category: Emergency Expenditures under CERC 1,016,000.00 744,746.80 747,695.00 50.00 100 Total 6,300,000.00 5,367,145.49 6,300,000.00 IDA-61440-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Gds,Wks,Ncs,Cs,trg 3,600,000.00 997,165.39 3,021,511.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Operating Costs 250,000.00 232,150.75 419,974.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Gds,Wks,Ncs,Cs,trg sub-grants 3,350,000.00 633,790.94 3,758,515.00 50.00 100 iLap Category Sequence No: 4 Current Expenditure Category: Emergency Expenditures,part D 0.00 0.00 0.00 100.00 100.00 Total 7,200,000.00 1,863,107.08 7,200,000.00 . The World Bank Lesotho Smallholder Agriculture Development Project (P119432) . Results framework COUNTRY: Lesotho Lesotho Smallholder Agriculture Development Project Project Development Objectives(s) Increase in marketed output among project beneficiaries in Lesotho s smallholder agriculture sector and, to improve the Recipient s capacity to respond promptly and effectively to an Eligible Crisis or Emergency. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Increase marketed output of smallholder farms Direct project 0.00 54,338.00 75,000.00 beneficiaries (Number) Rationale: Direct Project Beneficiaries: No change was made to the original target for this indicator during the 2017 restructuring, despite the expansion of project coverage from four districts to seven. This increase should be moderate for the following reasons: (i) the original project target was based on an unrealistically high Action: This indicator has estimate of the number of households in beneficiary farm groups, and (ii) the project’s recent emphasis on support for individual grant beneficiaries rather than been Revised farmer groups has further reduced the number of potential beneficiaries. Recommendation: Target revised from 66,000 to 75,000 beneficiaries. Female beneficiaries 0.00 50.00 50.00 50.00 (Percentage) Household commercialization level 15.00 40.00 in project areas (Percentage) Change in total cash crop 5.50 10.00 production (Tones/year) The World Bank Lesotho Smallholder Agriculture Development Project (P119432) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Action: This indicator has been Marked for Deletion Change in Yields of Major 0.00 15.00 Cash Crops (Percentage) Rationale: Percent Change in Yields of Major Cash Crops: This indicator was added in the 2017 restructuring. Baseline and target values were added after the restructuring based on available secondary data. Subsequent examination has shown that the baseline values and targets set were based on suspect analysis. Recommendation: the indicator is replaced with a simpler crop yield measure, drawn from available project (M&E information system) and other secondary data for selected crops. The revised end target is based on reliable baseline values and a target of 15% above baseline yields: Action: This indicator has Crops Unit Baseline Target been Revised Potatoes tons/ha 16.5 19.0 Carrots tons/ha 15.0 17.0 Cabbage tons/ha 28.0 32.0 Tomatoes tons/ha 26.0 29.0 Change in livestock 0.00 10.00 productivity (Percentage) Rationale: Average Change in Smallholder Livestock Production in Target Area (by type of livestock): this indicator was added in the 2017 restructuring. Baseline and target values were added after the restructuring based on available secondary data. Subsequent examination has shown that the baseline values and targets set were based on suspect analysis. Action: This indicator has Recommendation: The indicator is replaced with a more straightforward performance measure, drawn from the available project and other secondary data for been Revised selected livestock performance indicators. The revised end target is based on reliable baseline values and a target of 10% above baseline yields: PI Unit Baseline Target Milk/cow Liters 1385 1525 Eggs/hen Number 112 123 The World Bank Lesotho Smallholder Agriculture Development Project (P119432) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Wool/sheep Kg 2.1 2.3 Piglets weaned/sow/year Number 12 13 PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Increasing Agricultural Market Opportunities Number of CGP projects completed that are 0.00 12.00 35.00 70.00 90.00 270.00 120.00 commercially viable. (Number) Client days of training provided under the Competitive Grants 0.00 900.00 2,600.00 5,000.00 7,800.00 15,000.00 30,000.00 60,000.00 Program Component (Number) Client days of training provided : Female 0.00 450.00 1,300.00 2,500.00 3,900.00 7,500.00 15,000.00 30,000.00 clients (Number) Client days of training provided : Male 0.00 450.00 1,300.00 2,500.00 3,900.00 7,500.00 15,000.00 30,000.00 Clients (Number) Targeted beneficiaries 234.00 500.00 3,000.00 3,000.00 who have adopted The World Bank Lesotho Smallholder Agriculture Development Project (P119432) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 improved production technologies / farming practices in targeted areas (Number) Female beneficiaries 20.00 50.00 50.00 50.00 (Percentage) Farmers and traders in project districts who use 50.00 80.00 public market information (Percentage) Increasing Market Oriented Smallholder Production Number of new business contracts between farmer groups and the private sector as a result 0.00 2,000.00 of the projects market facilitation activities. (Number) Targeted beneficiaries recording better access 0.00 15.00 50.00 50.00 to markets (Percentage) Targeted beneficiaries satisfied with improved performance of 15.00 70.00 agricultural service providers (Percentage) Action: This indicator has Rationale: been Revised The World Bank Lesotho Smallholder Agriculture Development Project (P119432) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 Targeted Beneficiaries Satisfied With Improved Performance of Agricultural Service Providers (Percentage): The original target adjusted based on trends reflected in the project M&E data and progress reports. Recommendation: End target revised from 50% to 70% beneficiaries. Client days of training provided under the 0.00 60,000.00 Agriculture Investment Plan (Days) Client days of training provided: Male clients 0.00 30,000.00 (Days) Client days of training provided: Female 0.00 30,000.00 clients (Days) Contingent Emergency Response Component (CERC) If the CERC is triggered: number of beneficiaries benefiting from 0.00 5,000.00 emergency response and recovery activities. (Number) IO Table SPACE The World Bank Lesotho Smallholder Agriculture Development Project (P119432) Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document