The World Bank Report No: ISR6306 Implementation Status & Results Mongolia MN-Index-Based Livestock Insurance (P088816) Public Disclosure Copy Operation Name: MN-Index-Based Livestock Insurance (P088816) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 29-Dec-2010 Country: Mongolia Approval FY: 2005 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): IBLIP Project Implementation Unit Key Dates Board Approval Date 26-May-2005 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date 06-Oct-2008 Last Archived ISR Date 29-Dec-2010 Effectiveness Date 01-Sep-2005 Revised Closing Date 31-Mar-2014 Actual Mid Term Review Date 09-Oct-2007 Project Development Objectives Project Development Objective (from Project Appraisal Document) To ascertain the viability of Index Based Livestock Insurance in Mongolia to reduce the impact of livestock mortality for herders' livelihoods through: (i) scaling up Index Based Livestock Insurance Program in Selected Aimags; and (ii) building the institutional capacity and legal and institutional framework for the sustainability of the Index Based Livestock Insurance Program. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Index-Based Livestock Insurance Program 12.79 Promotion and Public Awareness 0.96 Institutional Capacity Building 0.67 Monitoring & Evaluation 0.39 Project Management 2.02 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview As of February 2012, the project had completed five full insurance cycles and the scaling-up of the insurance to nationwide coverage is proceeding on schedule. As of the sixth sales Page 1 of 6 The World Bank Report No: ISR6306 season (2011), 15 (out of 21) provinces (aimags) had the insurance product available, and there are 10,910 herders who had purchased insurance and are covered for the current winter (2011-12). The total premium collected for the current (sixth) cycle is approximately USD650,000. International reinsurance has been contracted, further reducing the exposure of the participating insurance companies and increasing the likelihood of sustainability of the program after the project closes. In 2012 the project will scale up to be nationwide in coverage. The focus is now of the second part of the development objective - to build the institutional and legal and institutional framework for the sustainability of the Public Disclosure Copy program. In this regard, work has now started on a feasibility study, which will build upon the legal concept note already under discussion by government. Once the feasibility study is completed by June 2012, further consultation will be conducted which would inform the finalization of the draft legislation to establish the policy and regulatory framework. Locations Country First Administrative Division Location Planned Actual Mongolia Uvs Aymag Uvs Aymag Mongolia Bayanhongor Aymag Bayanhongor Aymag Mongolia Central Aimak Tov Aymag Mongolia Not Entered Mongolia Mongolia Hentiy Aymag Hentiy Aymag Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Government commitment to IBLI demonstrated Text Value no legislation Concept paper for new law is New law passes by adoption of enabling legislation being discussed. Law is drafted Date 14-Mar-2012 31-Mar-2014 Comments Insurance sector indicates its intention to Text Value none, as this product does not There are currently 5 At least two local insurance continue to offer IBLI products beyond the exist insurance firms participating. companies participate in the lifetime of the project. program. Public Disclosure Copy Date 21-Oct-2005 14-Mar-2012 31-Mar-2014 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of soums where cost effective new Number Value 0.00 251.00 200.00 methods for NSO livestock data collection and Date 18-Jan-2010 14-Mar-2012 31-Mar-2014 statistics introduced Comments Page 2 of 6 The World Bank Report No: ISR6306 Regulations for IBLI drafted. Text Value Not drafted law has been drafted Drafted Date 18-Jan-2010 14-Mar-2012 31-Dec-2011 Comments Public Disclosure Copy % of herders in the pilot area receiving Percentage Value 50.00 31.60 50.00 information from project public awareness Date 18-Jan-2010 14-Mar-2012 31-Mar-2014 activities . Comments Note that there is an issue with this indicator. It should be herders who received information from all media sources, though actuallyit currently only measures herders who received face to face training (in those provinces where face to face training was conducted), based on a sample survey under the Annual Field based Monitoring exercise. The amount of face to face is being reduced year on year. The monitoring team will be informed that for this year, they should collect data related to all media for public awareness (TV,radio, pamphlets etc) % of herders in the selected area aware of the Percentage Value 80.00 46.30 80.00 products. Date 18-Jan-2010 14-Mar-2012 31-Mar-2014 Comments This reflects data from the Annual Field based Monitoring exercise conducted in August 2011 Public Disclosure Copy (sample survey). The decline in awareness is expected as the project extends into new provinces and should recover in coming years. % of due indemnity payments received by Percentage Value 100.00 100.00 100.00 herders. Date 18-Jan-2010 14-Mar-2012 31-Mar-2014 Comments Page 3 of 6 The World Bank Report No: ISR6306 % of due indemnity payments distributed to Percentage Value 100.00 100.00 100.00 soum-level institutions (banks, etc.). Date 18-Jan-2010 14-Mar-2012 31-Mar-2014 Comments Public Disclosure Copy Participating insurance companies provide Percentage Value 100.00 100.00 100.00 contractual payments into LIIP and LRI Date 18-Jan-2010 14-Mar-2012 01-Mar-2013 reserves as contractually required. Comments % of herders in contact with insurance agents Percentage Value 68.00 62.20 60.00 offering LRI Date 18-Jan-2010 14-Mar-2012 31-Mar-2014 Comments This has declined since 2010 due to the expansion of the insurance into new provinces. It is likely to pick up when more agents arecertified. % of total soums in selected aimags offering Percentage Value 100.00 100.00 90.00 IBLI Date 18-Jan-2010 14-Mar-2012 31-Mar-2014 Comments Number of insurance companies participating Number Value 4.00 5.00 4.00 in IBLIP Date 18-Jan-2010 14-Mar-2012 01-Mar-2013 Comments For the 2012-13 cycle, there Note, this indicator is different are 5 identified participating to the PDO indicator above, companies. as it reflects participation in the project, rather than the intent of insurance companies to continue after project closes. Percentage of herders participating in the DRP. Text Value none, as this product does not dropped 5% exist Date 21-Oct-2005 26-Nov-2009 31-Dec-2009 Comments Note: This target has been Public Disclosure Copy met. The DRP was discontinued for the project's scale up and extension and this will no longer be monitored. Percentage of herders purchasing the BIP (at Text Value none, as no index-based 9.13 15% commercial rates) during the pilot livestock insurance product exists Date 21-Oct-2005 14-Mar-2012 31-Mar-2014 Page 4 of 6 The World Bank Report No: ISR6306 Comments Note this figure has dropped, Note the target date and as expected, as the project value was changed when has moved into new Additional Financing was provinces. approved. Public Disclosure Copy Data on Financial Performance (as of 14-Mar-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P088816 IDA-40690 Effective 26-May-2005 17-Jun-2005 01-Sep-2005 31-Mar-2014 P088816 IDA-46870 Effective 23-Feb-2010 18-Mar-2010 16-Aug-2010 31-Mar-2014 P088816 TF-54740 Closed 17-Jun-2005 17-Jun-2005 17-Jun-2005 30-Jun-2010 P088816 TF-94002 Closed 06-Apr-2009 06-Apr-2009 02-Jul-2009 30-Jun-2011 P088816 TF-94827 Effective 28-Apr-2010 28-Apr-2010 16-Aug-2010 31-Mar-2014 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P088816 IDA-40690 Effective USD 7.75 7.75 0.00 4.47 3.46 58.00 P088816 IDA-46870 Effective USD 10.00 10.00 0.00 1.61 8.11 16.00 P088816 TF-54740 Closed USD 1.32 1.32 0.00 1.32 0.00 100.00 P088816 TF-94002 Closed USD 0.55 0.55 0.00 0.61 0.07 112.00 P088816 TF-94827 Effective USD 0.70 0.70 0.00 0.44 0.26 63.00 Disbursement Graph Public Disclosure Copy Page 5 of 6 The World Bank Report No: ISR6306 Public Disclosure Copy Key Decisions Regarding Implementation Work on the institutional feasibility study for the sustainability of the insurance has been initiated. It is agreed that this would be completed in draft by May 2012, and would thereafter form the basis for further consultation (to coincide with the next technical support mission by IDA scheduled for June 4, 2012). An extension of the closing date to firmly establish the institutional framework within the project period will be discussed. Restructuring History There has been no restructuring to date. Related Projects P115119-Index based Livestock Insurance Project Additional Financing Public Disclosure Copy Page 6 of 6