Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) EUROPE AND CENTRAL ASIA | Montenegro | Agriculture Global Practice | IBRD/IDA | Investment Project Financing | FY 2009 | Seq No: 19 | ARCHIVED on 28-Jun-2019 | ISR36208 | Implementing Agencies: Ministry of Finance, Ministry of Agriculture and Rural Development Key Dates Key Project Dates Bank Approval Date: 21-Apr-2009 Effectiveness Date: 23-Jul-2009 Planned Mid Term Review Date: 17-Sep-2012 Actual Mid-Term Review Date: 28-Nov-2012 Original Closing Date: 30-Jun-2014 Revised Closing Date: 30-Sep-2019 pdoTable Project Development Objectives 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 Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)HRPDODELs The new objectives of the Project are: (i) to improve delivery of government assistance for sustainable agriculture and rural development in a manner consistent with the EU's pre-accession requirements; (ii) to increase the experience of Montenegrin authorities in administering rural development grants in accordance with EU-IPARD core rules, and (iii) to support a selected number of agricultural holdings and food establishments in upgrading towards EU standards. Components Table Name Component 1: Strengthening MARD's rural development program:(Cost $13.13 M) Component 2: Strengthening MARD's administrative and management capacity in accordance with EU pre- accession requirements:(Cost $12.87 M) Component 3: Project Management, Monitoring and Evaluation:(Cost $1.20 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Moderate Moderate 6/28/2019 Page 1 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) Implementation Status and Key Decisions The project has made good progress since the last reporting period in December 2018. The PDO has been successfully achieved and all key project indicators have either achieved or surpassed their target values. The IBRD loan (AF of EUR3 million) closed as scheduled March 31, 2019 with all planned project activities completed. The current disbursement rate is 99 percent (against 34% reported in the previous ISR in December 2018). The second round of implementation of direct payments sub-measures, namely organic production and plant production related to areas under olive, vineyards and aromatic plants has been successfully completed and payments processed as planned. The learning by doing approach with direct implementation of the sub-measures using first the pilot and later the fully developed system has allowed staff of the extension staff in the regional offices to become fully acquainted with the use of the Land Parcel Information System as well as developed the capacity of the DfP to implement transparent and traceable internal control procedures in line with EU compliant direct payments and for the administration of Common Agricultural Policy (CAP) required for eventual EU membership. At the completion of the project the Aid Application management system with Geospatial Aid application system (i.e. the main IACS module) will be fully developed, and its use will be tested with the implementation of the next round of support The EU Trust Fund or IPARD-like 2 Project was extended for additional six months, i.e. from March 31, 2019 to September 30, 2019. The extension will allow for the implementation of additional activities, including: (i) strengthening capacity of the Directorate for Payments (DFP) through establishment of a regional office in Bijelo Polje to serve as a Disaster Recovery Center for the entire IT systems and data of the DFP, which is in line with EU requirements for a fully functional Paying Agency; and (ii) the expansion of the hardware and software systems, the development of the Document Management System (for the electronic archiving and filing of documents), the improvement of workflow management according to IPARD procedures; strengthening of capacity for advisory services, and training for the DFP, Advisory Services and Food Safety Agency. The current disbursement rate of the EU TF stands at 78% or EUR3.66 million (against 50% reported in the last ISR of December 2018). The Bank team is currently preparing the Implementation Completion Report (ICR). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Low Low Other -- Low Low Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes improve delivery of Gov sustainable ag & rural dvlp assistance consistent with EU requirements IN00676492 6/28/2019 Page 2 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) ►EU IPARD compatible rural development measures fully integrated in MAFWM support programs. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. Rural development measures (101, 103, and 302) included in IPARD program. Measure 101 No EU IPARD integrated in MARD compatible rural Rural development support through Value development measures -- measures defined in MIDAS grants program in MAFWM support EU IPARD program round 1 and 4. Agro- programs environmental measures integrated in MARD support program through MIDAS grants program round 2, 3 and 5. Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676495 ►Measures for direct payments implemented and paid (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 303,526.00 653,742.00 500,000.00 Date 22-Mar-2016 05-Jun-2018 31-May-2019 30-Sep-2019 Target overachieved. Measures for direct payments were paid in the amount of EUR653,742 against the Comments: target value of EUR500,000. increase Mn authorities experience in administering rural dvlp grants as per EU-IPARD core rules IN00676493 ►MAFWM capacity to disburse and track the use of rural development funds and to evaluate their impact in line with EU IPARD requirements. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. MARD developed a system and capacity to disburse & track use of rural development IPARD funds, procedures are improved in each forthcoming round, Fully compliant Limited coverage of and the capacity of monitoring and Value monitoring and -- both beneficiaries and evaluation system, verification. processors is eligible for EU enhanced. accreditation. Accreditation package including procedures fully aligned with IPARD requirements submitted to EU and audited. M&E system developed and operational for IPARD 6/28/2019 Page 3 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) like measures and programs for grant support. Indicators developed. Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 support selected number of agric holdings and food establishments in upgrading towards EU standards IN00676494 ►Number of agro-processors compliant toward EU food safety/hygiene regulations (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 18.00 115.00 224.00 120.00 Date 23-Oct-2015 05-Jun-2018 31-May-2019 31-Mar-2019 IN00676506 ►Critical elements of the food safety system upgraded in EU compliant manner. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. Veterinary Diagnostic Lab equipped, 16 methods accredited; Kotor Marine Biology Institute rehabilitated, furnished and equipped; Bar Border Inspection Post constructed, furnished, Lab accreditation Reference Labs lacking equipped and in completed, supply of equipment and/or operation; gap BIP equipment, full facilities, BIPs and food analysis on monitoring of water processing legal/institutional, Value -- and aquaculture establishments not administrative and products, food meeting EU standards, technical aspects of establishments animal by-products not food system meeting EU standards safely disposed of completed; TA to for approval create animal by- products legal and regulatory framework, and increase administrative and technical capacity completed; trainings to veterinary inspectors and veterinary directorate carried out. Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 Intermediate Results Indicators by Components Component 1: Strengthening MARD's rural development program IN00676507 6/28/2019 Page 4 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) ►Adoption of agri-environmental measures among beneficiaries. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No awareness and use Overachieved. 278 of agri-environmental agricultural 200 agricultural Value measures among -- households adopted households farmers, processors, and agro-environmental rural communities. measures Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676511 ►All agricultural and rural development investments executed through an EU IPARD compatible Proto-Paying Agency (as approved by the World Bank). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. MARD and its Directorate for IPARD Payments approved by the Bank to be fully in charge for Proto-Paying Agency Value Non-compliant system. -- execution of payments remains operational. as detailed in the grants fourth and fifth round operational manual. Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676514 ►Clients who have adopted an improved agricultural technology promoted by the project (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,511.00 1,511.00 1,500.00 Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 IN00676517 ►EU IPARD compatible Rural Development Plan, including agri-environmental measures, submitted to EU. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. Directorate for Rural Development EU IPARD compatible No EU IPARD in place, final IPARD compatible Rural Final IPARD Program Value -- Program II adopted by Development Unit or II submitted to EU EU on July 20, 2015 Plan. and Montenegro Government on September 10, 2015. Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676519 ►Amount of grant fund disbursed (Euros) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6,502,733.10 6,502,733.10 5,925,925.90 Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 IN00676521 6/28/2019 Page 5 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 63.00 6,337.00 6,200.00 Date 23-Mar-2009 02-Oct-2018 31-May-2019 31-Mar-2019 IN00676523 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 17.00 17.00 15.00 IN00676525 ►Land area where sustainable land mgt. practices were adopted as a result of proj (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,142.00 2,142.00 2,000.00 Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676527 ►Amount of IPARD-like grant funding awarded (Euros) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,700,000.00 7,700,000.00 7,000,000.00 Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676528 ►Number of applications for Food Establishments Grant approved (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 98.00 98.00 80.00 Date 23-Oct-2015 28-Dec-2018 31-May-2019 31-Mar-2019 IN00676529 Number of grants for Food Establishments successfully completed (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 37.00 67.00 65.00 Date 23-Oct-2015 28-Dec-2018 31-May-2019 31-Mar-2019 IN00676530 ►Investments in agricultural and rural development in line with IPARD measures (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Number of commercial orientated farmers Overachieved. 658 Value availing of market driven -- commercially oriented 400 agro-holdings support measures is 0 agro-holdings (zero) Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 IN00676531 6/28/2019 Page 6 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) ►Amount of IPARD-like grant funding awarded (percentage) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 101.00 101.00 90.00 Date 23-Oct-2015 05-Jun-2018 31-May-2019 31-Mar-2019 It was possible to award 87.5% (against the target value of 75%) of IPARD-like grant funding after re- allocation of funds between project disbursement categories was completed through project Comments: restructuring. IN00676532 Amount of grant funding disbursed (percentage) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.00 87.50 75.00 Date 23-Oct-2015 02-Oct-2018 31-May-2019 31-Mar-2019 IN00676533 ►Direct payments EU-compatible policy measures developed and adopted by the Ministry (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target EU-compatible Direct EU-compatible direct No EU-compatible direct Payment policy Value -- payments policy payments measures measure developed measures adopted and adopted Date 22-Mar-2016 02-Oct-2018 18-Jan-2019 30-Jun-2018 Component 2: Strengthening MARD's administrative and management capacity in accordance with EU pre-accession requirements IN00676509 ►Agricultural Census is implemented and results disseminated. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Main agricultural Achieved. Census No agricultural census census implemented. Value -- implemented and data available. Statistical register results disseminated. established Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676512 ►Veterinary and phyto-sanitary border controls performed in EU-compliant facility in Bar. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. Bar Border Inspection Post construction works Building completed, No suitable facility in completed, lab Value -- equipment procured place furniture and and installed. equipment installed, staffed moved in and operational. Date 23-Mar-2009 01-Jun-2016 01-Jun-2016 30-Sep-2016 IN00676515 6/28/2019 Page 7 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) ►Marine Biology Institute in Kotor functioning as NRL in adequate facilities. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. Marine Biology Institute rehabilitated, provided No suitable facilities in Full monitoring of sea with lab furniture and place. No clearly defined waters and equipment, regular Value role in food safety -- aquaculture products testing ongoing. In late system, no routine in line with national February 2015 the MBI testing performed. legislation. accredited Microbiological testing of sea water methods. Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676516 ►Integrated farm register operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. Farm Farm Register Register software and software and hardware hardware system in Value No farm register in place. -- system in place, place, registration of registration of farms farms ongoing initiated and ongoing. electronically. Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 IN00676518 ►Food establishments classified and annual control plans prepared. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. Procedures for classification of food establishments and annual control Procedures for plans completed classification of food according to EU establishments and Value No system in place -- standards, preliminary annual control plans classification completed according completed. Training to to EU standards. Veterinary Directorate and Inspectors conducted. Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676520 ►IT system to manage the flow of funds for implementation of direct payments measures established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No IT system in place -- Pilot IT system IT system established designed and tested with the first round of direct payments implemented under the project, the full LPIS system is in use, while aid application was pilot version, for the second round of direct 6/28/2019 Page 8 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) payments. IT system established. Date 22-Mar-2016 02-Oct-2018 18-Jan-2019 30-Mar-2019 IN00676522 ►Feasibility Study on safe disposal of animal by-products prepared and legal framework improved. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. Legal framework on safe disposal of animal by- National, non-EU products Legal framework on Value compliant system of safe -- improvements safe disposal of animal disposal of ABPs in place completed, training to by-products drafted. Veterinary Directorate and Inspectors conducted. Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676524 ►Number of analysis methods of the Veterinary Diagnostic Laboratory in Podgorica ISO 17025 accredited. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. Vet Achieved. Vet No accreditation at Diagnostic Laboratory Diagnostic Laboratory present, overlapping Value -- in Podgorica has 16 in Podgorica has 16 competence in food analysis methods analysis methods safety system. ISO17025 accredited ISO17025 accredited Date 23-Mar-2009 23-Oct-2015 23-Oct-2015 30-Sep-2016 IN00676526 ►Actions implemented toward Montenegro IPARD accreditation: adoption by Government of the IPARD program; Accreditation package submitted to EU;Paying Agency premises according to EU standards completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved. IPARD Program II adopted by EU on July 20, 2015 IPARD program II and Mn Gov on Sept approved by EU, 10, 2015. Accreditation updated accreditation package submitted to package according to EU for Accreditation IPARD program II and Value No structure in place -- on August 14, 2015. submitted for national EU-compliant Paying accreditation, Paying Agency premises Agency building, IT completed and Farm and Farm Registry Registry software system functional. installed and IT system operational. Date 23-Mar-2009 30-Sep-2015 30-Sep-2015 30-Sep-2016 Component 3: Project Management, Monitoring and Evaluation IN00676508 ►Client days of training provided (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6,678.00 6,678.00 6,000.00 6/28/2019 Page 9 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) Date 23-Mar-2011 02-Oct-2018 31-May-2019 31-Mar-2019 IN00676510 Client days of training provided - Female (number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,014.00 1,014.00 900.00 Date 23-Mar-2009 02-Oct-2018 31-May-2019 31-Mar-2019 IN00676513 ►Targeted beneficiaries are satisfied with timeliness and transparency of payout of EU-compatible direct payments (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 22-Mar-2016 28-Jun-2018 31-May-2019 30-Mar-2019 The survey is ongoing, the indicator will be updated in the end of July 2019. Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P107473 IBRD-77160 Closed USD 15.70 15.44 0.26 13.88 0.00 100% P107473 IBRD-86430 Closed USD 3.34 3.34 0.00 3.39 0.02 99% P110602 TF-93405 Closed USD 4.00 3.95 0.05 3.95 0.00 100% P107473 TF-A1293 Effective USD 5.27 5.27 0.00 4.24 1.19 78% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P107473 IBRD-77160 Closed 21-Apr-2009 27-May-2009 23-Jul-2009 30-Jun-2014 30-Sep-2016 P107473 IBRD-86430 Closed 09-Sep-2016 05-Oct-2016 14-Dec-2016 30-Mar-2019 30-Mar-2019 P110602 TF-93405 Closed 27-May-2009 27-May-2009 23-Jul-2009 30-Jun-2014 30-Jun-2017 P107473 TF-A1293 Effective 24-Dec-2015 30-Dec-2015 23-Feb-2016 30-Jun-2018 30-Sep-2019 Cumulative Disbursements 6/28/2019 Page 10 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P107473) Restructuring History Level 2 Approved on 20-May-2014 ,Level 2 Approved on 03-Jun-2015 ,Level 2 Approved on 28-Mar-2016 ,Level 2 Approved on 16-Mar-2018 ,Level 2 Approved on 27-Mar-2019 Related Project(s) P110602-Montenegro Institutional Development and Agriculture Strengthening (MIDAS) ,P154111-Montenegro Additional Financing EU/IPA Ag & RD Institution Build. Proj ,P159115-Additional Financing to MIDAS 6/28/2019 Page 11 of 11