The World Bank Implementation Status & Results Report Madagascar Integrated Growth Poles and Corridor SOP-2 (P164536) Madagascar Integrated Growth Poles and Corridor SOP-2 (P164536) AFRICA | Madagascar | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 2 | ARCHIVED on 23-Sep-2019 | ISR38499 | Implementing Agencies: PIC National Project Secretariat, Republic of Madagascar Key Dates Key Project Dates Bank Approval Date: 18-Sep-2018 Effectiveness Date: 08-May-2019 Planned Mid Term Review Date: 29-Oct-2021 Actual Mid-Term Review Date: Original Closing Date: 18-Dec-2023 Revised Closing Date: 18-Dec-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective is to contribute to the sustainable growth of the tourism and agribusiness sectors by enhancing access to enabling infrastructure and services in the Target Regions of Madagascar. PIC 2.1 (SOP1) has supported economic recovery by improving the investment climate, increasing investor confidence, investing in key infrastructure and restoring economic governance, to lay the foundation for inclusive growth and shared prosperity in the target regions. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Leveraging private investment in tourism and agribusiness:(Cost $11.50 M) Removing key binding constraints for private investment in tourism:(Cost $32.50 M) Removing key binding constraints for private investment in agribusiness:(Cost $22.00 M) Project Implementation:(Cost $4.00 M) Immediate Response Mechanism Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Interim ISR. Full ISR will be prepared in October 2019 following end of first supervision mission. The Project became effective on May 08 2019. Line Ministries formally confirmed to Ministry of Economy and Finance (chair of the Steering Committee) the adequateness of activities and the alignment of all TA and CB activities to the Madagascar Emergence Plan. Implementation has initiated, and initial disbursement took place in June 2019. An official launch mission has started on September 04, 2019, with the main objective to 9/23/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Madagascar Integrated Growth Poles and Corridor SOP-2 (P164536) present project objectives and activities to public sector stakeholders (at the regional and national levels) and other stakeholders. A detailed implementation plan for the next 12 months will be prepared during the mission. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Moderate Moderate Moderate Fiduciary Moderate Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Contribute to the sustainable growth of the tourism and agribusiness sectors in Target Regions IN00742213 ►Number of formal jobs created in Target Regions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10,214.00 10,214.00 10,214.00 17,800.00 Date 31-Dec-2017 31-Jan-2019 30-Aug-2019 31-Dec-2023 Formal jobs are defined as employment as reported by employers to the CNaPS. This is the number of new workers entering the formal sector in the targeted regions per year in the tourism and agribusiness Comments: sectors as declared by employers. The number of jobs is disaggregated by sector. Targets are IN00742214 cumulative. The baseline is the 31 December 2017 value cumulative over 3 years under PIC2.1 (SOP1). Of which in tourism (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 3,554.00 3,554.00 3,554.00 7,300.00 9/23/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Madagascar Integrated Growth Poles and Corridor SOP-2 (P164536) Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 IN00742215 Of which in agribusiness (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 6,660.00 6,660.00 6,660.00 10,500.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 IN00742226 ►Value of private investment enabled by the projecty (in million) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 The indicator tracks the amount of investment committed by supported investors using private financing in the form of equity and/or debt. This will include: (i) private co-investments committed from MBIF Comments: recipients; (ii) Supported PPPs: the private contribution will be verified through signed legal documents ; (iii) Agribusiness and tourism enabled through investment promotion activities, tracked through regular reports. Investments are counted the year signed commitments are made. Targets are cumulative. Intermediate Results Indicators by Components Leveraging private investment in tourism and agribusiness IN00742230 ►Number of formal businesses newly registered in the Target Regions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15,005.00 15,005.00 15,005.00 25,000.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 Flow data of registered formal sector businesses at INSTAT/EDBM/DRI, including sole proprietorships. Comments: Reported for the Targeted Regions. Targets are cumulative. The baseline is the 31 December 2017 value cumulative over 3 years under PIC2.1 (SOP1). IN00742231 ►Increase in annual sales revenue for MBIF BPC recipient enterprises (MGA million) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3,000.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 This indicator measures the total incremental sales revenue of project-supported businesses through the MBIF BPC window. Baseline sales will be zero for startups, or previous year’s sales for existing firms. Comments: Data will be collected from firms’ financial statements, subject to monitoring and verification by the PIU, on a yearly basis. Targets are cumulative. Sex disaggregation of sales assumes 40% of beneficiaries are IN00742236 women-owned enterprises. Of which increase in annual sales revenue for women-owned enterprises (MGA million) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target 9/23/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Madagascar Integrated Growth Poles and Corridor SOP-2 (P164536) Value 0.00 0.00 0.00 1,200.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 Removing key binding constraints for private investment in tourism IN00742229 ►Passengers traffic by air per annum (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,296.00 1,296.00 1,296.00 1,735.00 Date 31-Dec-2018 30-Jan-2019 30-Aug-2019 31-Dec-2023 Passenger traffic includes all visitors by air per annum to targeted poles (Diego, Nosy Be, Fort Dauphin and Tulear, plus Sainte Marie) as well as traffic in Ivato International Airport in Antananarivo. This will ensure project adequately reflects increased visitors to the poles (not limited to tourists) and arrivals and Comments: departures at Ivato airport, which has benefited from the partial liberalization of skies and route development activities. Passenger traffic includes both departures and arrivals as per International Civil IN00742233 Aviation Organization definition. Baselines are as of December 31, 2017 (latest available). Of which at Ivato (Number (Thousand), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 908.00 908.00 908.00 1,215.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 IN00742235 Of which in Target Regions (Number (Thousand), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 388.00 388.00 388.00 520.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 IN00742238 ►Hotel rooms available in the Target Regions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6,575.00 6,575.00 6,575.00 7,000.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 This cumulative number includes all tourist accommodation, (constructed or under construction) including Comments: villas, in all Target Regions. Baseline is the total number of hotel rooms in December 2017 in the Target Regions plus Sainte Marie. IN00742239 ►Increase in average daily tourist expenditures on products and services for overnight tourists (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 01-Jan-2019 30-Jan-2019 30-Aug-2019 31-Dec-2023 Tourism expenditures include accommodation, costs of tickets for site visits, local transportation, food and Comments: beverages, souvenirs and local shopping, etc. The baseline USD value of the average daily tourist 9/23/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Madagascar Integrated Growth Poles and Corridor SOP-2 (P164536) expenditures on products and services for overnight tourists will be conducted in 2019, and serve as a reference for years 3 and 5 to calculate the percentage increase and compare with targets. By definition the increase is therefore 0% at baseline. IN00742240 ►Kilometers of urban roads rehabilitated (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 12.00 12.00 50.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 Roads rehabilitated under the project include urban and peri-urban roads in Target Regions. Targets are Comments: cumulative. Baseline value is the cumulative SOP1 end of project target, which is already achieved (from 2014 baseline of 0). IN00742241 ►Number of People provided with access to improved water sources (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 250.00 250.00 250.00 325.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 Number of people who, under the project, are provided with access to improved water sources in targeted urban areas. This is the sum of the residents in neighbourhoods (fokontany) where improved water Comments: sources are available. Improved water sources includes piped household connections and community water points. Targets are cumulative. Baseline value is the cumulative SOP1 end of project target, which is on track to be achieved (from 2014 baseline of 0). IN00742242 ►Percentage of municipal budgets executed for investment by targeted municipalities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 6.00 6.00 7.00 Date 31-Dec-2018 30-Jan-2019 30-Aug-2019 31-Dec-2023 The share of the annual budget of the seven urban communes supported by the project spent on investment in and repair and maintenance of public infrastructures. This indicator captures results of Comments: project support to municipalities to improve local governance, increase financial revenues and improve capacity to maintain rehabilitated infrastructure. Baseline value is as of December 31, 2016 (latest available executed budget value), from a SOP1 baseline of close to 0. IN00742243 ►Annual municipal revenues collected in the supported municipalities (MGA billion) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.72 5.72 5.72 6.85 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 Municipal revenues are the amount of money collected by municipalities (communes) every year, excluding state subsidies. This includes all 75 communes in the target regions, rural (68) and urban (7). Comments: The targets measure the cumulative increase in annual revenues. Baseline value as of December 2017 IN00742244 (latest available). Of which urban (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 3.75 3.75 3.75 4.60 9/23/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Madagascar Integrated Growth Poles and Corridor SOP-2 (P164536) Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 IN00742245 Of which rural (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 1.97 1.97 1.97 2.25 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 Removing key binding constraints for private investment in agribusiness IN00742228 ►Increase in the value of exports of the selected crops in the Target Regions (US$ million) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 11.00 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 The indicator measures the cumulative increase in the value of exported volumes (measured in US$ using constant value of 2017). * The actual value of exported crops in US$ (taking into account price volatility) Comments: will also be tracked internally and reported along with this indicator at each ISR. * A set of indicators for internal tracking will also be established to monitor quality improvements in the key supported value IN00742232 chains (i. e average unit value of exports). Of which cocoa (Amount(USD), Corporate Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.45 Date 31-Dec-2017 30-Jan-2019 30-Aug-2019 31-Dec-2023 IN00742234 ►Increase in revenues from target cash crop production for smallholders in the Target Regions (MGA billion) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.00 Date 31-Dec-2018 30-Jan-2019 30-Aug-2019 31-Dec-2024 Smallholders supported by the Project are defined as follows: smallholders producing or processing one or more of the targeted cash crops in the poles and corridors and receiving project interventions (training Comments: and/or inputs). Crops supported may be added or removed throughout the project. The targets measure cumulative increase in annual revenues earned by supported smallholders’ sale of target crops IN00742237 ►Kilometers of rural roads rehabilitated (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 55.00 Date 31-Dec-2017 30-Jan-2019 30-Jan-2019 31-Dec-2023 Rural roads rehabilitated by the project include rural access, feeder, market, agricultural, irrigation, Comments: forestry, or community roads. Roads must have a maintenance plans with earmarked funds in place managed by local institutions, organizations or PPPs to be counted. 9/23/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Madagascar Integrated Growth Poles and Corridor SOP-2 (P164536) Project Implementation IN00742227 ►Percentage of registered complaints that have been addressed by the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 31-Dec-2018 30-Jan-2019 30-Aug-2019 29-Dec-2023 Complaints are to be tracked through a formal, institutionalized, project grievance redress mechanism (GRM). Addressing a complaint entails efficiently and effectively responding to queries and resolving Comments: implementation problems. The indicator measures the share of complaints addressed by the project compared to the number of complaints logged by the end of each calendar year. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164536 IDA-63150 Effective USD 70.00 70.00 0.00 5.39 62.93 7.9% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164536 IDA-63150 Effective 18-Sep-2018 24-Oct-2018 08-May-2019 18-Dec-2023 18-Dec-2023 Cumulative Disbursements 9/23/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Madagascar Integrated Growth Poles and Corridor SOP-2 (P164536) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/23/2019 Page 8 of 8