The World Bank Implementation Status & Results Report Agriculture Modernization Project (P158372) Agriculture Modernization Project (P158372) EUROPE AND CENTRAL ASIA | Uzbekistan | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 8 | ARCHIVED on 29-Aug-2023 | ISR57631 | Implementing Agencies: Ministry of Agriculture - International Center for Strategic Development and Research on Food Securi, Ministry of Finance, Ministry of Investment and Foreign Trade, Republic of Uzbekistan Key Dates Key Project Dates Bank Approval Date: 20-Mar-2020 Effectiveness Date: 24-Aug-2020 Planned Mid Term Review Date: 18-Jan-2024 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2026 Revised Closing Date: 30-Jun-2026 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the project are to (i) enhance productivity-supporting agricultural services and (ii) promote market-led, high-value horticulture value chains. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name 1. Enhancing productivity-supporting agricultural services:(Cost $212.80 M) 2. Supporting investments in high-value horticulture value chains:(Cost $200.00 M) 3. Facilitating trade and marketing:(Cost $77.50 M) 4. Supporting project management:(Cost $9.00 M) Front-End Fees:(Cost $0.70 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions This is the report of the Bank's sixth implementation support mission. The project became effective on August 24, 2020. The project has made significant progress in all its key components since the last Bank mission undertaken in December 2022. During the past eight months, the Ministry of Agriculture (MA) and the PIU were able to advance a number of important activities including: (i) preparation of the strategic development and investment plans for seven agriculture research institutes and for agriculture advisory services and commenced the implementation; (ii) construction of the regional Agricultural Knowledge and Innovation System (AKIS) centers; (iii) approval and commencement of 38 new investment subprojects with the value of more than US$30 million in horticulture sector; (iv) advancing the process for 8/29/2023 Page 1 of 8 The World Bank Implementation Status & Results Report Agriculture Modernization Project (P158372) establishing the small-scale Agro-Logistics Centers (ALCs); and (v) procurement of goods and services. The disbursement increased from US$50.00 million to US$83.2 million. During the mission, the Bank team discussed with the Government counterparts the key implementation bottlenecks and agreed on a time-bound action plan to address them. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Substantial Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Enhanced productivity-supporting agricultural services IN01335221 ►Farmers adopting improved agricultural technology (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12,000.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 This indicator measures the number of farmers (of agricultural products) who have adopted an improved agricultural technology promoted by operations supported by the World Bank. Comments: NB: "Agriculture" or "Agricultural" includes: crops, livestock, capture fisheries, aquaculture, agroforestry, timber and non-timber forest products. Adoption refers to a change of practice or change in use of a technology that was introduced or promoted by the project. 8/29/2023 Page 2 of 8 The World Bank Implementation Status & Results Report Agriculture Modernization Project (P158372) Technology includes a change in practices compared to currently used practices or technologies (seed preparation, planting time, feeding schedule, feeding ingredients, postharvest storage/ processing, etc.). If the project introduces or promotes a technology package in which the benefit depends on the application of the entire package (e.g., a combination of inputs such as a new variety and advice on agronomic practices such as soil preparation, changes in seeding time, fertilizer schedule, plant protection, etc.), this counts as one technology. Farmers are people engaged in farming of agricultural products or members of an agriculture related business (disaggregated by men and women) targeted by the project. IN01335224 Farmers adopting improved agricultural technology - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,500.00 IN01335225 Farmers adopting improved agricultural technology - male (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,500.00 IN01335226 ►Beneficiaries satisfied with the project supported services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 22-Dec-2022 27-Jun-2023 21-Aug-2023 22-Dec-2022 The Client is currently in a process of advancing the contract for the environmental and social audit that will include beneficiary satisfaction survey. The ToR for this exercise has been developed earlier on and bidding initiated but not completed due to the lack of the submissions by interested bidders. The ToR is currently being revised to ensure the qualification requirements allow for broader interest from the potential bidders. The expected contract award is planned for June 2023. PIU has designated Comments: stakeholder engagement consultant and The Client is well aware of consultation procedures that is part of the application process for Component 1,2 and 3. Regular consultations take place in Machala communities as well as Agroprom offices in various provinces (Agroprom is Ministry of Agriculture representative bodies at the local level). Upcoming round of consultations are being planned for June 2023. Further update on the CE indicators progress will be presented in next ISR Increased market-led, high-value horticulture value chains IN01335222 ►Agribusinesses that have established and maintained productive partnerships with farmers (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 48.00 48.00 80.00 Date 31-Mar-2020 22-Dec-2022 21-Aug-2023 30-Jun-2026 The share of agribusinesses, who received credit from the project to establish formal contracts with farmers and farm cooperatives, and maintained and invested in these partnerships by the end of the Comments: project IN01335223 ►Horticulture in total arable land area (Percentage, Custom) 8/29/2023 Page 3 of 8 The World Bank Implementation Status & Results Report Agriculture Modernization Project (P158372) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 25.00 25.00 30.00 Date 31-Mar-2020 22-Dec-2022 21-Aug-2023 30-Jun-2026 The availability of funds under AMP for supporting horticulture development has been contributing to the continued agricultural diversification in Uzbekistan, including the increase in area devoted to horticulture production. The authorities prepared several decrees and resolutions, for example for development of horticulture clusters, agri-logistics, leasing arrangements for intensive orchards, and credit line that are soon be used to support investments and further expansion of horticulture land areas. Horticulture land area in 2018 was 791,000 ha. It included 87,000 ha of potatoes; 219,000 ha of Comments: vegetables; 52,600 ha of melons; 319,200 ha of orchards; and 113,300 ha of vine grapes. Total arable land was 3,828,500 ha. At the beginning of 2020, the total arable land was 3,373,376 ha. It included 93,118 ha of potatoes; 224,207 ha of vegetables; 60,631 ha of melons; 341,113 ha of orchards; and 125,957 ha of vine grapes. As result, the total horticulture area was 845,026 ha or 25% of total arable land. Intermediate Results Indicators by Components 1. Enhancing productivity-supporting agricultural services IN01335229 ►Increase in the share of applied research on local adoption and climate-smart agriculture (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 40.00 50.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Share of research projects of the participating research institutes that focus on solutions for local adoption Comments: of agricultural technologies and climate-smart agriculture out of total number of research projects. IN01335230 ►Increase in production volume of elite and super-elite seeds and seedlings (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 30.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Elite and super elite seeds are being produced by the Seed Production Center under the MOA. Seedlings Comments: are produced by various research institutes participating in the project. IN01335233 ►Area with updated agro-technology maps (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 30.00 10,000.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Land area for which new or updated agro-technological maps are prepared based on soil tests supported Comments: by the project. 8/29/2023 Page 4 of 8 The World Bank Implementation Status & Results Report Agriculture Modernization Project (P158372) IN01335236 ►Farmers reached with agricultural assets or services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2,723.00 15,000.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 This is the Citizens Engagement Indicator and the Corporate Results Indicator. Definition: It measures the number of farmers provided with agricultural assets or services as a result of the project support. "Agriculture" or "Agricultural" includes crops, livestock, capture fisheries, aquaculture, agroforestry, timber, and non-timber forest products. Assets include property, biological assets, and farm and processing equipment. Biological assets may include animal agriculture breeds (e.g., livestock, fisheries) and genetic material of livestock, crops, trees, and shrubs (including fiber and fuel crops). Services include research, extension, training, education, ICTs, inputs (e.g., fertilizers, pesticides, labor), production-related services (e.g., soil testing, animal health/veterinary services), phytosanitary and food safety services, agricultural marketing support services (e.g., price monitoring, export promotion), access to farm and post-harvest machinery and storage facilities, employment, irrigation and drainage, and finance. Farmers are people engaged in agricultural activities or members of an agriculture-related business (disaggregated by men and women) targeted by the project. Progress: The project is at the initial stage, only beginning to strengthen the capacity of agricultural public Comments: institutions to deliver services to farmers and other citizens. During 2021, under component 1, consultations with beneficiary communities and local hokimiyats were conducted by the PIU regarding the project investments in the regional Agricultural Knowledge and Innovations System (AKIS) centers and pilots for establishment of intensive orchards (subcomponent 1.4) in ten regions of Uzbekistan. During these meetings, many farmers confirmed their interest in taking part in intensive orchards, which will be established with the support of the project, and their feedback was incorporated into design of pilots, including on selection of fruit orchards and their suitability for agro-ecology of specific communities. So far, the project selected 44 ha land plot and screening about 300 ha to establish collectively managed intensive orchards. In addition, about 50 farmers expressed the interest to establish intensive orchards on their farmland. This initial citizen engagement will be followed by more consultations with communities led by the PIU after orchards are established and interested farmers begin leasing it on a long-term basis. IN01335238 Farmers reached with agricultural assets or services - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,956.00 2,250.00 IN01335239 ►Women recruited as agricultural extension officers (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.50 40.00 15.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Comments: Women recruited by the extension offices supported by the project IN01335240 ►Area under intensive orchards demonstration pilots (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 47.00 2,700.00 8/29/2023 Page 5 of 8 The World Bank Implementation Status & Results Report Agriculture Modernization Project (P158372) Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Land area of demonstration pilots for intensive orchards supported by the project Comments: 2. Supporting investments in high-value horticulture value chains IN01335227 ►Farmers participating in horticulture value chains through cooperatives and productive partnerships (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 650.00 650.00 3,000.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Farmers are the members of the farm cooperatives and the productive partnerships established under the Comments: project IN01335231 Percent of women farmers participating in value chain projects (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 40.00 10.00 IN01335232 ►Productive partnerships established under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 34.00 10.00 27.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Productive partnerships is the partnership between agro-enterprise, borrowing under the credit line Comments: window, and farmers or farm cooperatives, with formal contractual relationships. IN01335234 ►Beneficiaries, who report that participatory processes in farm cooperatives and productive partnerships are effective (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 75.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Beneficiaries include farmers, who are the members of farm cooperatives and productive partnerships with agri-enterprises. Citizen engagement: As of June 27, 2023, 100 farmers have reported positive feedback with their project Comments: experience. The credit line will further accelerate in the second part of 2023, which will be members of farm cooperation and productive partnerships. IN01335237 ►Non-performing loans in total outstanding credit to the project beneficiaries (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 9.00 5.00 8/29/2023 Page 6 of 8 The World Bank Implementation Status & Results Report Agriculture Modernization Project (P158372) Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Non-performing loan means any payments overdue for 90 days or more – both interest and principal. End Comments: target should be interpreted as "not more than 5%" 3. Facilitating trade and marketing IN01335228 ►Share of horticulture produce that flows through agro-logistical centers supported by the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 13.00 30.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Horticulture produce is calculated as a volume of horticulture production in regions where agro-logistical Comments: centers are established. IN01335235 ►Beneficiaries reporting the use of market information system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 237.00 10,000.00 Date 31-Mar-2020 27-Jun-2023 21-Aug-2023 30-Jun-2026 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P158372 IBRD-90520 Effective USD 181.00 181.00 0.00 63.29 117.71 35% P158372 IDA-65490 Effective USD 219.00 219.00 0.00 20.11 198.89 9.2% P158372 IDA-65500 Effective USD 100.00 100.00 0.00 1.85 98.15 1.9% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P158372 IBRD-90520 Effective 20-Mar-2020 11-Jul-2020 24-Aug-2020 30-Jun-2026 30-Jun-2026 P158372 IDA-65490 Effective 20-Mar-2020 11-Jul-2020 24-Aug-2020 30-Jun-2026 30-Jun-2026 P158372 IDA-65500 Effective 20-Mar-2020 11-Jul-2020 24-Aug-2020 30-Jun-2026 30-Jun-2026 8/29/2023 Page 7 of 8 The World Bank Implementation Status & Results Report Agriculture Modernization Project (P158372) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 8/29/2023 Page 8 of 8