The World Bank Implementation Status & Results Report Second Agriculture Sector Wide Approach Support Project (P164445) Second Agriculture Sector Wide Approach Support Project (P164445) AFRICA | Malawi | Agriculture Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2018 | Seq No: 3 | ARCHIVED on 09-May-2019 | ISR35025 | Implementing Agencies: Ministry of Agriculture, Irrigation and Water Development, Malawi Roads Authority, Ministry of Finance, Economic Planning and Development Key Dates Key Project Dates Bank Approval Date: 07-Apr-2018 Effectiveness Date: 25-Apr-2018 Planned Mid Term Review Date: 19-Aug-2019 Actual Mid-Term Review Date: -- Original Closing Date: 31-Dec-2019 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the productivity of small-holder farmers and market access of selected commodities for small-holder farmers in Selected Districts of the Recipient's territory Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Sustainable Agricultural Productivity and Diversification:(Cost $17.21 M) Improvement of Roads Infrastructure for Market Access:(Cost $30.64 M) Institutional Capacity Building for the Implementation of the National Agricultural Investment Plan (NAIP):(Cost $4.49 M) Project Coordination and Management:(Cost $2.66 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Generally, implementation of project activities has started on a good note and the project facilitation team has conducted sensitization and awareness campaigns involving all implementing agencies, district councils and beneficiaries. All the necessary preparatory activities to allow the project kick off especially under component 2 (improving rural roads Infrastructure) have been completed. However, the project faced challenges related to delayed disbursement of funds to implementing agencies and late opening of operating accounts for the Agricultural Development Divisions (ADDs) and District Councils. Although there were some improvements in the time it is taking to finalize a payment process, the mission noted that there is still room for improvement to shorten the payment approval process further and improve on disbursement. The delays in payment 5/9/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Second Agriculture Sector Wide Approach Support Project (P164445) processing affected timely distribution of inputs for demonstrations. The project disbursed about USD14.5 million which represents a disbursement rate of 26.4 percent of the project’s total cost. To date, USD 7.141 million has been expended and this represent utilization rate of 13 percent of total project cost and 23 percent of the planned budget for the 2018/19 season. The closing date of the project is December 31, 2019. The key actions agreed during the mission include the following: 1. Government, through Ministry of Agriculture, Irrigation and Water Development, should decentralize procurement of inputs for demonstration not later than July 1, 2019. 2. In order to draw lessons from the 2018/19 FISP programme as an input into the upcoming season, Government was requested to prepare and submit terms of reference for the evaluation of 2018/19 Farm Input Subsidy Programme by March 15, 2019. 3. The project has been supporting the Ministry of Agriculture to review the extension policy and develop a new strategy. This was one of the retroactive activities that started in ASWAp SP I and carried over to this new project. Although the review of the policy and development of the strategy was completed and validated, it has taken time to incorporate the comments. The Ministry of Agriculture was urged to complete, disseminate and launch the National Extension and Advisory Services Strategy by March 30, 2019. 3. Government through the Ministry of Agriculture, Irrigation and Water Development should seriously work on reducing payment processing time to allow timely implementation of the project. The mission was informed that the Ministry developed a strategy to improve delayed payment processing. It was noted during the mission that there were some improvements but not enough to accelerate implementation. The mission urged the Ministry to further review the process and identify areas where they could improve the payment system to be more efficient by May 15, 2019. 4. Government through Roads Authority were urged to complete screening for all roads and finalize all ESMPs/RAPs for review and approval before commencement of works. The exercise was not completed on time due to failure by District Councils to follow agreed road selection criteria which delayed all the subsequent activities. In addition, RA was advised to compensate all PAPs before commencement of road works where PAPs are identified. 5. Under the Component 2 (Improved Road Infrastructure), it was agreed that funds will flow direct to the District Councils but will require that finance staff are trained before funds start flowing. The arrangement was that while the ASWAp SPII will train contractors, the Rural Road Improvement Program (RRImP) financed by EU, will train government staff including staff in the finance departments in the councils. while the accounts are ready, the finance staff have not yet been trained. The Task Team engaged the EU who committed to undertake the trainings as soon as possible to allow funds flow and avoid disrupting implementation. 6. Failure by District Councils to follow agreed road selection criteria delayed processes of road selection, screening and designs which in turn affected the procurement of contractors. This has since been resolved and RA launched tenders and closing date was on March 22, 2019. Implementation of the works is expected to commence in April 2019. In order to avoid further delays, RA was urged to intensify supervision and avoid any slippages. In compliance with the advice to strengthen supervision, the RA have recruited four individual consultants and are procuring supervision consulting firms. 7. The Ministry of Agriculture has now completed production of 322 maps, with major elements for 25 districts (except Likoma and Mzimba districts) and 48 maps for trace elements for 12 districts using data disaggregated at Extension Planning Area (EPA) level. Area specific fertilizer recommendations have been developed and validation trials for area specific fertilizers being conducted. This is a good development considering the time it has taken to produce these maps which will shape the future of agriculture in the country. However, the maps have not been widely disseminated to stakeholders in the sector. The task Team agreed with government that the dissemination road map shared during the mission will guide the finalization of soil maps and this exercise will be completed by June 2019. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate 5/9/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Second Agriculture Sector Wide Approach Support Project (P164445) Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes To improve the productivity of small-holder farmers and market access of selected commodities IN00649850 ►Number of agricultural marketing centers connected by rehabilitated roads. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 The road works have not started as RA is evaluating bids for contractors. Works are expected to Comments: commence on April 1, 2019 IN00649851 ►Farmers reached with agricultural assets or services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 81,444.00 300,000.00 Date 31-May-2018 24-Sep-2018 12-Mar-2019 30-Apr-2020 IN00649852 Farmers reached with agricultural assets or services - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 43,717.00 150,000.00 IN00649853 ►Increased volume of production of selected agricultural commodities from targeted district. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 Intermediate Results Indicators by Components Sustainable Agricultural Productivity and Diversification IN00649854 ►Farmers adopting improved agricultural technology (Number, Corporate) 5/9/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Second Agriculture Sector Wide Approach Support Project (P164445) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 255.00 150,000.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 IN00649861 Farmers adopting improved agricultural technology - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 85.00 60,000.00 IN00649864 Farmers adopting improved agricultural technology - male (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 170.00 90,000.00 IN00649865 ►Yield increased for selected commodities in targetted districts. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 Measurement not done as the crop is still in the field. this will be reported in the next report Comments: IN00649868 Yield increased for improved maize varieties in targetted districts. (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 IN00649870 Yield increased for bananas in targetted districts. (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 IN00649871 Yield increased for ground nuts in targetted districts. (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 35.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 IN00649874 Yield increased for sweet potatoes in targetted districts. (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 5/9/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Second Agriculture Sector Wide Approach Support Project (P164445) IN00649875 ►Increased soil organic matter content in targetted areas with CSA practices (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 0.00 0.00 1.20 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 Note yet measured as this is the first year of implementation Comments: Improvement of Roads Infrastructure for Market Access IN00649855 ►Roads rehablitated (Kilometers, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,200.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 Civil works not yet started but it is expected to start on April 1, 2019 Comments: IN00649860 Roads rehabilitated - rural (Kilometers, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,200.00 IN00649863 Roads rehabilitated using Low Volume Seal technology (Kilometers, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 84.00 Date 31-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 IN00649866 Roads rehabilitated using Labour Intensive Methods (Kilometers, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,116.00 Date 05-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 IN00649867 Roads rehabilitated - non-rural (Kilometers, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 IN00649869 ►Beneficiaries of job-focused interventions (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12,000.00 5/9/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Second Agriculture Sector Wide Approach Support Project (P164445) Date 05-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 IN00649872 Beneficiaries of job-focused interventions - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6,000.00 IN00649873 ►Percentage change in motorized traffic volume on targeted rural roads. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 05-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 Institutional Capacity Building for the Implementation of the National Agricultural Investment Plan (NAIP) IN00649856 ►Number of staff trained (long term training – diploma and MSc) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 20.00 220.00 Date 05-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 Students are still in college in their second and final year of study Comments: IN00649858 ►M&E System for the NAIP in place (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 05-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 Consultant to develop the system was recruited ad full development is expected by end of June 2019 Comments: IN00649862 ►Joint sector reporting mechanism for the NAIP in place (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 05-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 The first draft JSR report has been prepared and a JSR meeting which was scheduled for end February is Comments: now planned in March 2019 Project Coordination and Management IN00649857 ►Intended Beneficiaries that are aware of project information and project supported investments (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 5/9/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Second Agriculture Sector Wide Approach Support Project (P164445) Value 0.00 40.00 60.00 80.00 Date 05-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 IN00649859 ►Grievances registered and responded to within agreed specified time (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes No Yes Date 05-Oct-2017 24-Sep-2018 12-Mar-2019 30-Apr-2020 GRM manual has been prepared but is yet to be rolled out Comments: Overall Comments IR Most of the indicators are still below the targets largely because the project is in its first year of implementation and most indicators will be recorded at the end of the growing season. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164445 TF-A7166 Effective USD 35.00 35.00 0.00 0.00 35.00 0%% P164445 TF-A7167 Effective USD 20.00 20.00 0.00 14.50 5.50 73% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164445 TF-A7166 Effective 13-Apr-2018 13-Apr-2018 25-Apr-2018 31-Dec-2019 31-Dec-2019 P164445 TF-A7167 Effective 13-Apr-2018 13-Apr-2018 25-Apr-2018 31-Dec-2019 31-Dec-2019 Cumulative Disbursements 5/9/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Second Agriculture Sector Wide Approach Support Project (P164445) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 5/9/2019 Page 8 of 8