Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00005704 IMPLEMENTATION COMPLETION AND RESULTS REPORT Grants No. D104MR and No. D4660MR ON TWO GRANTS IN THE AMOUNT OF SDR 5.60 MILLION (US$ 7.75 MILLION EQUIVALENT) AND SDR 5.80 MILLION (US$ 8 MILLION EQUIVALENT) TO THE ISLAMIC REPUBLIC OF MAURITANIA FOR THE NOUADHIBOU ECO-SEAFOOD CLUSTER PROJECT (P151058) June 1, 2022 Finance, Competitiveness and Innovation Global Practice Africa West Region CURRENCY EQUIVALENTS (Exchange Rate Effective - November 1, 2021) Currency Unit = MRU 36.18 = US$1 US$ 1.41 = SDR 1 FISCAL YEAR July 1 - June 30 Regional Vice President: Ousmane Diagana Country Director: Nathan M. Belete Regional Director: Abebe Adugna Dadi Practice Manager: Consolate K. Rusagara Task Team Leader(s): Cristina Navarrete Moreno ICR Main Contributor: Nils Junge ABBREVIATIONS AND ACRONYMS AF Additional Financing ANZF Nouadhibou Free Zone Authority (Autorité de la Zone Franche de Nouadhibou) BEEP Business Environment Enhancement Project CPF Country Partnership Framework Directorate General for Private Sector Promotion (Direction Générale pour la DGPSP Promotion du Secteur Privé) EPBR Artisanal Port of Nouadhibou (Etablissement Portuaire de la Baie du Repos) ERR Economic Rate of Return GDP Gross Domestic Product ICR Implementation Completion Report IDA International Development Association IF Initial Financing ISR Implementation Supervision Report M&E Monitoring and Evaluation MEF Ministry of Economy and Finance MSME Micro, Small, and Medium Enterprise NESC Nouadhibou Eco-Seafood Cluster Project National Inspection Agency (Office National d'Inspection Sanitaire des Produits de ONISPA la Pêche et de l'Aquaculture) PAN Commercial Port of Nouadhibou (Port Autonome de Nouadhibou) PCH Fisheries Competitiveness Cluster (Pôle de Compétitivité Halieutique) PDO Project Development Objective PIU Project Implementation Unit PPD Public-Private Dialogue PPP Public-Private Partnership SCAPP Strategy for Accelerated Growth and Shared Prosperity WARFP West Africa Regional Fisheries Program TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5 A. CONTEXT AT APPRAISAL .........................................................................................................5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION ..............................................................10 II. OUTCOME .................................................................................................................... 13 Assessment of Relevance of PDOs and Rating............................................................................13 A. RELEVANCE OF PDOs ............................................................................................................13 B. ACHIEVEMENT OF PDOs (EFFICACY) ......................................................................................13 C. EFFICIENCY ...........................................................................................................................16 D. JUSTIFICATION OF OVERALL OUTCOME RATING ....................................................................17 E. OTHER OUTCOMES AND IMPACTS .........................................................................................19 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 20 A. KEY FACTORS DURING PREPARATION ...................................................................................20 B. KEY FACTORS DURING IMPLEMENTATION .............................................................................21 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 24 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................24 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE .....................................................25 C. BANK PERFORMANCE ...........................................................................................................26 D. RISK TO DEVELOPMENT OUTCOME .......................................................................................27 V. LESSONS AND RECOMMENDATIONS ............................................................................. 27 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 29 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 38 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 41 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 43 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 45 ANNEX 6. SUPPORTING DOCUMENTS - REVISIONS TO INDICATORS ...................................... 51 ANNEX 7. SUPPORTING DOCUMENTS - PLANNED AND ACTUAL ACHIEVEMENTS OF PROJECT RESULTS INDICATORS .......................................................................................................... 52 ANNEX 8. SUPPORTING DOCUMENTS - TRUST FUNDS USED DURING PROJECT PREPARATION AND IMPLEMENTATION....................................................................................................... 54 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P151058 Nouadhibou Eco-Seafood Cluster Project Country Financing Instrument Mauritania Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing Agency Ministry of Economic Affairs and the Promotion of NESC - Project Coordination Unit, Nouadhibou Free Zone Productive Sectors Authority Project Development Objective (PDO) Original PDO

The objective of the proposed project is to support the development of a seafood cluster in Nouadhibou that promotes sustainable management of fisheries and generates value for the communities.

Page 1 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 7,750,000 7,750,000 7,801,238 IDA-D1040 8,000,000 4,500,000 3,804,871 IDA-D4660 Total 15,750,000 12,250,000 11,606,109 Non-World Bank Financing 0 0 0 Borrower/Recipient 1,500,000 0 0 Total 1,500,000 0 0 Total Project Cost 17,250,000 12,250,000 11,606,108 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 24-Mar-2016 06-Jul-2016 23-Nov-2020 01-Nov-2020 01-Nov-2021 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 08-Jan-2018 4.61 Reallocation between Disbursement Categories 24-Jun-2019 5.93 Change in Components and Cost Change in Loan Closing Date(s) Reallocation between Disbursement Categories 29-Oct-2021 10.57 Cancellation of Financing Reallocation between Disbursement Categories KEY RATINGS Outcome Bank Performance M&E Quality Moderately Unsatisfactory Moderately Satisfactory Modest Page 2 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 29-Jun-2016 Satisfactory Satisfactory 2.29 02 29-Dec-2016 Satisfactory Satisfactory 2.89 03 13-Jul-2017 Satisfactory Satisfactory 4.35 04 28-Feb-2018 Satisfactory Satisfactory 4.61 05 05-Sep-2018 Satisfactory Moderately Satisfactory 5.53 06 12-Mar-2019 Satisfactory Moderately Satisfactory 5.81 07 19-Sep-2019 Satisfactory Moderately Satisfactory 5.93 08 30-Mar-2020 Satisfactory Moderately Satisfactory 7.70 09 23-Oct-2020 Moderately Satisfactory Moderately Unsatisfactory 8.74 10 26-Jan-2021 Moderately Satisfactory Moderately Unsatisfactory 8.97 11 31-Aug-2021 Moderately Satisfactory Moderately Unsatisfactory 9.92 Moderately 12 17-Feb-2022 Moderately Unsatisfactory 11.55 Unsatisfactory SECTORS AND THEMES Sectors Major Sector/Sector (%) Agriculture, Fishing and Forestry 100 Fisheries 50 Livestock 50 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Economic Policy 87 Trade 87 Trade Facilitation 87 Page 3 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Private Sector Development 4 Jobs 4 Job Creation 4 Urban and Rural Development 8 Urban Development 4 Urban Infrastructure and Service Delivery 4 Rural Development 4 Rural Infrastructure and service delivery 4 ADM STAFF Role At Approval At ICR Regional Vice President: Makhtar Diop Ousmane Diagana Country Director: Louise J. Cord Nathan M. Belete Director: Anabel Gonzalez Abebe Adugna Dadi Practice Manager: Jean Michel Noel Marchat Consolate K. Rusagara Alexandre Hugo Laure, Peter Task Team Leader(s): Cristina Navarrete Moreno Kristensen, Berengere P. C. Prince ICR Contributing Author: Nils Junge *IDA- D104 original convertible amount approved was US$7.75 million, yet the historical value of the disbursement was US$7.8 million. This discrepancy can be explained due to exchange rate fluctuations between XDR and US$. On XDR’s the amount disbursed equals the signed amount of XDR5.6 million. Page 4 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Country Context 1. Mauritania is a sparsely populated, arid, and resource-rich country with a per capita gross domestic product (GDP) of US$1,136 (2017), straddling North Africa and Sub-Saharan Africa both geographically and culturally. Just 0.5 percent of land is arable, and with a population of almost 4 million people as of 2013 1, the country’s density of 3.9 inhabitants per kilometer is extremely low. 2. At inception of the Nouadhibou Eco-Seafood Cluster (NESC) Project, Mauritania faced opportunities and challenges to transform its extractive-driven and state-dominated development model into one that leverages the country’s natural endowments. These included fisheries and promoting private sector-led diversification and sustainable job creation. In recent years, progress has been made with respect to inequality, vulnerability, and poverty reduction, the latter driven primarily by the income and consumption growth of the bottom 40 percent of the population in rural areas, who benefited from price increases for primary goods. Driven by a thriving extractive sector and high international commodity prices, Mauritania achieved lower middle-income status in 2014. Fisheries Sector Context 3. Mauritania’s fishing waters are among the most productive in the world. Its fisheries account for approximately 6 percent of GDP, contributing to wealth and job creation, public revenue, foreign exchange availability, the trade balance, and food security. Between 2008 and 2011, fish exports represented between 20 and 28 percent of total exports (US$438.5 million), yet the potential estimated annual total catch was much higher, from 1.5 to 1.8 million tons, valued at US$1.4 billion. The country’s 200-mile Exclusive Economic Zone, with a surface area of 234,000 kilometers, is known for the abundance, diversity, and commercial significance of its fisheries, key for Mauritania’s competitiveness, and with high potential for backward links and local economic development. However, the country had failed to reap the full economic and employment benefits associated with its fish resources, which are susceptible to overexploitation and climate change threats. 4. While industrial fisheries continue to dominate the sector, the artisanal and coastal fisheries sector is characterized by a low level of professionalization. The artisanal fisheries sector significantly expanded in the years preceding project launch, and its share of total Mauritanian catch increased from 5 to 16 percent between 2006 and 2011. Nonetheless, the artisanal fisheries sector was unprofitable, with over 90 percent of activity focused on octopus, a resource that had been overexploited for 30 years and left some species on the verge of extinction. 5. Established in early 2013, the Nouadhibou Free Zone is Mauritania’s main fisheries center, accounting for 80 percent of the value of all fish caught nationwide. The Free Zone (not to be confused with the Exclusive Economic Zone) 2 in the port city of Nouadhibou, considered the country’s commercial capital and the country’s main fisheries center, with natural deep seaport and ideally located for external trade. Located in northern western Mauritania, the Free 1 According to 2013 census Mauritanian Population counted 3.54 million people living in Mauritania and per official projections in 2016, the Mauritanian population will reach 3.98 million in 2018. 2 An EEZ is the area upon which a coastal state assumes jurisdiction over the exploration and exploitation of marine resources in its adjacent section of its territorial waters. Nouadhbiou Free Zone is nonetheless a Special Economic Zone aimed at attracting private investment through a special regime. Geographically Nouadhibou Free Zone includes all the conglomeration of Nouadhibou and part of the peninsula and the bay of the same name, the adjacent oceanic domain and its scope of those development zones, all coastal and territorial waters up to 2 nautical miles offshore. Page 5 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Zonewas set up to encourage entrepreneurship and job creation, promote greater business activity, and facilitate technology transfers, innovation, and competitiveness. The World Bank advised on strategy and planning of the Free Zone, and the government of Mauritania planned to invest US$10 billion by relying, in part, on donor support. The NESC was designed as an institutional initiative to help the Nouadhibou Free Zone Authority (Autorité de la Zone Franche de Nouadhibou, ANZF) engage private sector and civil society actors in developing and operating an economic cluster that would be environmentally, economically and socially sustainable. 6. At inception, project design was supported by strong client demand and informed by key government and World Bank Group technical assistance and analytical work. In its Strategy for Accelerated Growth and Shared Prosperity (SCAPP) for 2016–30, the government declared a renewed emphasis on the structural reform agenda, focusing on promoting a more competitive and sustainable private sector to generate and sustain inclusive growth. The development of a sustainable fishing sector, including a competitive post-harvest sector in Nouadhibou, was therefore at the cornerstone of the government’s pursuit of inclusive growth. Project activities were fully aligned and consistent with the government’s fisheries strategy for 2015–19, which emphasized the sustainability of the fishing sector while stressing the vision for greater revenues and job creation in the post-harvest sector. In addition, three World Bank technical assistance programs 3 and related analytical work helped to prioritize and sequence project activities. Private Sector Context 7. Mauritania’s traditional state-driven model did not sufficiently encourage private investment, limiting competition and crowding out new entrants. The private sector is concentrated around a few large groups that dominate the trade, banking, and government procurement markets with an absence of a strong and formal “middle class” of micro, small, and medium enterprises (MSMEs). New and independent firms struggle to compete with larger conglomerates that often have their own banks or state-owned enterprises. This has discouraged local suppliers and international investors and penalized the poor and vulnerable by increasing the price of basic commodities while limiting job and livelihood opportunities. 8. At project launch, a transition toward strong and diversified private sector-led growth was seen as critical to poverty reduction, income generation and employment opportunities. Building on recent macroeconomic achievements, Mauritania had the potential to increase private-sector growth and transform the country’s extractive- driven model for economic development. Nonetheless, overcoming constraints to private sector development required the government to address the investment climate; economic diversification in high-growth value chains, such as fisheries; and the support needed to generate MSME growth, among others. Rationale for World Bank Involvement 9. The World Bank’s involvement was expected to bring numerous benefits beyond financing, including: (a) synergies and coordination with other World Bank Group projects; (b) the ability to draw on additional resources, including technical expertise and trust funds by coordinating with other donors; and (c) signaling to private sector actors the value of investing in the Nouadhibou fisheries sector. The project was designed and implemented within the context of the World Bank Group’s Mauritania Country Partnership Strategy for FY14–16, which addresses constraints on the competitiveness of the country’s economy, including fisheries sector (Pillar one on growth and diversification). The project design strongly aligned with government interest in developing Nouadhibou as a seafood cluster by providing enabling conditions for private sector investment. 3The three World Bank technical assistance programs were: (a) Nouadhibou Free Zone Technical Assistance in 2013–14, (b) Competitiveness of Nouadhibou Trade Sectors and Location in 2014, and (c) and Mauritania Public Private Infrastructure Advisory Facility in 2014–15. Page 6 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) 10. Project preparation and implementation benefited from working with two IFC advisory projects teams, Green Nouadhibou, which promoted a regulatory environment in Nouadhibou to stimulate and incentivize green technology and encouraged firms to undertake eco-efficient production methods, and Mauritania Investment Climate, which provided technical support to improve the business environment and strengthen entrepreneurship (Annex 8 provides details). The three series of Mauritania Competition and Skills Development Policy Financing also complemented Component 3 of the additional financing (AF). Theory of Change (Results Chain) 11. The Project Appraisal Document (PAD) did not include an explicit theory of change (TOC) or related assumptions. However, a TOC and results chain can be inferred from the project description and results framework (Table 1). Project activities aimed to contribute to the government’s competitiveness agenda in the fisheries sector within the ANZF. It would do so by addressing the binding constraints that inhibit seafood industry competitiveness in Nouadhibou: (a) over-fishing that threatened the sustainability of supply and profitability of the fishing industry; (b) insufficient coordination among actors and insufficient product diversification; (c) inadequate fish landing infrastructure, as well as lack of private initiative in developing and managing shared facilities (including storage) and handling services; and (d) limited link effects with the rest of the economy. Table 1. Theory of Change (original) Main activities Key outputs Intermediate outcomes Outcomes Component 1. Develop a sustainable fisheries sector in Nouadhibou 1.1 Promote a public-private dialogue to develop a vision for a sustainable seafood Support to the cluster in Nouadhibou and accelerate nationwide reforms of structures impeding its development development of • Sustainable seafood cluster strategy Nouadhibou Cluster strategy and developed Seafood Cluster that consultations with Increased client capacity promotes the • Public-private dialogue (PPD) for the national stakeholders on institutional and sustainable design and implementation of seafood cluster strategy is operational physical functions of management of fisheries cluster; stronger fisheries and Legal and institutional • National public-private partnership internal governance generates value for framework revision (PPP) framework established structures; improved communities. Support for investment • Investment climate reforms business and investment climate reforms implemented climate; greater Improvement in the • Institutional framework for participation of private business investment climate agenda actors through PPPs. environment to established boost private sector Advisory services to the • ANFZ’s ability to plan, design, development in ANZF reorganize, and promote the seafood Mauritania, as cluster enhanced measured by an increase in 1.2 Generate responsible investments in the Nouadhibou Seafood investments Cluster generated by Investor promotion • Data on responsible businesses and responsible activities, media investors in the seafood cluster investors, an coverage, communication collected and became available increase in fresh fish campaign; investor • Commercial viability assessments exports, and tracking system, and conducted enhanced capacities commercial viability • Investment promotion and of local operators. studies on private sector communication strategies developed Page 7 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) opportunities • Investment forums supported Component 2. Increase the value of seafood products produced and marketed in the seafood cluster with the participation of local actors 2.1 Improve the handling of landed catch and promoting the export of fresh fish at the Nouadhibou Seafood Cluster Construction of fresh fish • Cold storage capacity for fish products More infrastructure refrigerated warehouse increased available, including new warehouse at the airport; Studies for improving the increased product value- operational efficiency of added due to improved Nouadhibou’s product traceability and Commercial Port (PAN) • Organization and management plans divestment from low and Artisanal Port (EPBR) for PAN and EPBR improved value-added sectors (such landing sites and as fishmeal); and better operationalizing their integration of small-scale extensions local suppliers and Diagnosis of needs for the vulnerable groups into facilitation of fresh fish • Trade services and regulations for target seafood value exports at the customs fresh fish ground transportation chains border post of modernized Nouadhibou 2.2 Build local suppliers’ and vulnerable groups’ capacity to capture greater benefits from productive and inclusive seafood value chains • Fisheries management training for private enterprises delivered • Environmental and quality management and certification training for private enterprises and Training of local actors institutions delivered • Reduction of post-harvest losses and good fishing and management practices training for artisanal and small-scale actors delivered The assumptions underlying this implicit theory of change were that: • The ANZF would focus on promoting a more sustainable fisheries sector by transitioning to better resources management and better industrial practices, which would in turn enhance productivity, contributing to growth and poverty reduction. • The ANZF would engage with private sector actors to scale up promotion of good fisheries management practices. • The ANZF would take advantage of the World Bank’s technical assistance to develop and implement the Seafood Cluster Strategy. • The key impediments to increasing fresh fish exports were considered refrigerated warehouse space and procedures at the PK55 border crossing. Page 8 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) • Entrepreneurs in the artisanal fisheries segment would apply the training they received through project activities to process fish more efficiently, and thereby generate increased revenue. • The central government would provide favorable political support for adopting and implementing new strategies, regulations, and so on in the Nouadhibou Free Zone. Project Development Objectives (PDOs) 12. The original PDO was: “to support the development of a seafood cluster in Nouadhibou that promotes the sustainable management of fisheries and generates value for the communities.” Key Expected Outcomes and Outcome Indicators 13. The original PDO consisted of two expected development outcomes supported by three key outcome indicators: • Objective 1: To support the development of a seafood cluster in Nouadhibou that promotes the sustainable management of fisheries in Nouadhibou. The key outcome indicators are: o Investments generated from responsible investors • Objective 2: To support the development of a seafood cluster in Nouadhibou that generates value for the. The key outcome indicators are: o Fresh fish export o Direct project beneficiaries (of which percentage of female beneficiaries) 14. The project had three PDO-level indicators: (a) investments generated from responsible investors; (b) fresh fish export; and (c) number of direct project beneficiaries and proportion of female beneficiaries. The first indicator related to investments generated from responsible investors complying with the provision of the fisheries management was expected to measure mobilization of responsible investments in the seafood cluster. The indicator related to the volume of fresh fish exports was considered a proxy for value created given that the landing and handling of fresh fish would increase business and job opportunities for local community members, including women. The third indicator was intended to capture direct benefit of those involved with or dependent upon the fishing and seafood industry in Nouadhibou, including public and private institutions (for example, ANZF, relevant ministries, and producers’ associations), MSMEs, and local actors (for example, artisanal, coastal, and industrial fishers, processing plant workers, and those who sell fish and fish products). Components 15. Under Component 1 (Develop a sustainable fisheries sector in Nouadhibou), activities were to support the fisheries sector management to generate value for communities in Nouadhibou and boost private sector investment across Mauritania. Project activities would address: (a) excess fishing activities that threaten the sustainability of raw material supplies and the profitability of the fishing industry; (b) insufficient coordination among actors and insufficient product diversification; and (c) inadequate fish landing infrastructure as well as lack of private initiative in developing and managing shared facilities (including storage) and handling services. The activities would cover technical assistance, new technology, coordination mechanisms, a legal framework, and enabling infrastructure. A local PPD platform (Seafood Taskforce), established by the ANZF during project preparation, would engage the private sector in developing Page 9 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) and implementing a strategy and action plans for the Nouadhibou fisheries and seafood sector and developing a reform agenda for the sector. 16. Under Component 2 (Increase the value of fishery and marketed products in the seafood cluster with the participation of local actors), activities would increase local stakeholder capacity and involve communities in the development of activities and decisions that affect them. The project’s seafood cluster would consist of a geographic concentration in Nouadhibou made up of interconnected businesses, suppliers, and associated public and private institutions involved in the fisheries and seafood industry. Clusters were seen as key aspects of strategic management, whereby a critical mass of resources and competencies provides a decisive competitive advantage over other producers to compete nationally and globally. 17. The two main project components, main activities, funding, and approximate disbursement levels are outlined in Annex 3. Disbursement levels by component are approximate since disbursement data in the system is calculated according to different categories. Disbursements reflect funding allocations before the cancelation of US$3.5 million during the last month of the project. B. SIGNIFICANT CHANGES DURING IMPLEMENTATION 18. The project underwent three rounds of restructuring.. The first restructuring took place on January 8, 2018, and involved the reallocation between Disbursement Categories, as unused project preparation advance funds were added to the project account. The second restructuring was an AF, requested by the government of Mauritania in November 2017, based on the project’s satisfactory progress and performance to date and the government’s desire to scale-up specific activities and add new ones to enhance development impacts. The third restructuring took place in October 2021, when US$3.5 million in funding was canceled. The second restructuring (AF) affected the scope of the project, funding, indicators, and targets while the first and third restructurings were accounting changes and did not affect the scope of the project. Table 2 presents a summary of key changes introduced through AF. Revised PDOs and Outcome Targets 19. The second restructuring, which started in 2017 and became effective in 2019, expanded the scope of the project, reflected in a change to the PDO to include business enabling environment. Original PDO: The objective of the proposed project is to support the development of a seafood cluster in Nouadhibou that promotes sustainable management of fisheries and generates value for the communities. New PDO: The objective of the proposed project is to support the development of a seafood cluster that promotes the sustainable management of fisheries and creates value for communities in Nouadhibou and to improve the business environment to boost private sector development in Mauritania. 20. The revision reflected the addition of a component focused on strengthening the investment climate in Mauritania (Component 3). The PDO, activities, and intermediate indicators were adjusted to reflect results outside of the fisheries sector, especially to account for PPP and investment climate activities that are not strictly related to the development of Nouadhibou’s eco-seafood cluster (see Annex 6 for details on revisions to indicators). Page 10 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Revised PDO Indicators 21. New PDO indicators were added (increasing the total number from 12 to 17), several PDO indicators were revised, and new targets were set. The PDO-level indicator, “Transaction requests increased from an enhanced Collateral and Business Registry (Number),” was designed to capture results of activities financed by Component 3 on private sector development. Some intermediate indicators of the original project grant were moved from Component 1 to Component 3 and new intermediate results indicators were also added (Annex 6): i. Sustainable management practices enhanced (number) ii. Landing infrastructure facilities for improved traceability of fish products built (number) iii. Women-led MSMEs in Nouadhibou (percentage) iv. Business and collateral registries computerized in Nouadhibou and Nouakchott (Yes/No) Revised Components 22. The expansion of the project scope resulted in the addition of two new components. In September 2019, through AF, the following components were added: Component 3: Strengthen the investment climate for private sector development (new) (US$5 million, out of which IDA US$2.7 million) Sub-component 3.1: Improve the investment climate Sub-component 3.2: Support the operationalization of the government’s PPP agenda Component 4: Project management (new) (US$0.5 million from counterpart funding) 23. With AF, the financing for Component 1 increased from US$5.97 to US$6.97 million, and for Component 2 from US$3.28 to US$6.28 million, while two new components were added. Component 3, “Strengthen the investment climate for private sector development,” was budgeted at US$5 million and Component 4 for project management was budgeted at US$0.5 million. Activities from the original Component 1 related to investment climate and the PPP framework were shifted to new Component 3. Eight original Component 1 activities were also removed (see AF project paper, page 52) during AF restructuring. Component 3 was designed to reflect results at the national level outside Nouadhibou and the fishing sector and was added to the project since the government of Mauritania requested assistance in this area. Since these activities somewhat linked to components within the parent project, creating a new, separate project for them would have required more time and effort, and the activities needed a “home.” 24. Component 3 “Strengthening the investment climate for private sector development” would support private sector development, focusing on investment climate and PPPs. Support to investment climate reform would be achieved, inter alia, through providing technical assistance to the technical committee in charge of monitoring and investment climate reforms and specific support to improving the commercial justice system, such as creating a special cadre of judges familiar with commercial justice law, emphasizing the separation between criminal justice and commercial justice by housing the latter in its own building, and digitalizing the business and collateral registry to improve access to credit. Support to the PPP agenda would aim to facilitate the execution of two or three pilot PPP projects based on existing PPP pipeline projects. Annex 3 provides a summary of activities and funding per component. Page 11 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Other Changes • Financing. AF in the amount of US$8 million resulted in an increase in World Bank financing from the original US$7.75 to US$15.75 million, while counterpart funding commitments increased from US$1.5 million to US$2.5 million. • Project extension. The project was extended by one year, with the Loan Closing Date changed from November 1, 2020 to November 1, 2021. A request to extend the project again, because of the pandemic, was not approved. • Project management. A new World Bank task team leader took over in early 2018. In late 2019, a new Project Implementation Unit (PIU) Coordinator (the former PIU monitoring and evaluation [M&E] specialist) was appointed. Table 2. Summary of changes following AF restructuring in 2019 Initial Financing After Additional Financing Components 2 3 + project management PDO focus seafood cluster, sustainable fisheries + improving business environment to management, value for communities boost private sector development Financing (total) US$8 million US$15.75 million Financing (World Bank) US$7.75 million US$15.75 million Financing (Borrower) US$1.5 million US$2.5 million Indicators Revised and added Targets Increased (Annex 6) Focus Nouadhibou fisheries sector + private sector nationwide Project close November 1, 2020 November 1, 2021 Rationale for Changes and Implications for Original Theory of Change 25. The rationale for AF was based on the project’s satisfactory progress and performance at the time, and the government’s desire to expand infrastructure in Nouadhibou and encourage private sector development nationally. It was expected that the new project activities would enhance the development impacts sought by the original design. Specifically, AF would support the scale-up of activities within the scope of the ongoing project, including: (a) the implementation of investment climate reforms, and (b) operationalization of the PPP law and decrees with the establishment of a PPP unit and support for the execution of pilot PPP projects. These activities would go beyond the project’s focus on Nouadhibou and provide building blocks for leveraging private sector investment nation-wide which had strong Client demand. AF would also implement new activities to stimulate greater value chain inclusion and implementation of priority recommendations in the NESC strategy. Page 12 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) II. OUTCOME Assessment of Relevance of PDOs and Rating 4 A. RELEVANCE OF PDOs 26. The relevance of PDO is rated substantial. The original PDO, given the potential for expanding the seafood sector and increasing value added, and the clear need for improving conditions in the sector and in Nouadhibou, was highly relevant. The objective remains consistent with the currently prevailing priorities, and it is reflected in government nationwide and sectoral strategic documents. The modified PDO, following AF, which incorporated the goal to “improve the business environment to boost private sector development in Mauritania,” while relevant to the country as a whole, was less relevant to the ANZF, and also did not fit in smoothly with the original focus on the seafood sector. Nonetheless, at project close Mauritania’s national private sector development strategy and pathways to developing sustainable fisheries aligned with the project’s goals. The country’s medium-term recovery and growth needs, including the recognition of the fisheries sector as an instrument for the country’s post-COVID-19 economic recovery, remained broadly relevant. At the national level, the government’s SCAPP (2016–30) emphasized promoting a more competitive private sector to generate and sustain inclusive growth. The original project and AF remained also fully aligned with the current Country Partnership Framework (CPF) for Mauritania FY18-FY23 contributing to Promoting Economic Transformation for Diversified and Resilient Growth and the strategic objective of increasing production value in the fisheries sector (Focus area one); and Strengthening Economic Governance and Private Sector-led Growth and the strategic objective of improving private sector participation in economic activities (Focus Area three). B. ACHIEVEMENT OF PDOs (EFFICACY) 27. For assessment of efficacy, the revised project’s development objective is divided into three sub-objectives as indicated below. 5 The overall outcome is assessed on the basis of achievement of each of these three objectives. The outcome-focused achievement of each objective is summarized and discussed below. Objective 1: To support the development of a seafood cluster that promotes the sustainable management of fisheries in Nouadhibou. Rating: Modest PDO Indicator 1. Investments generated from responsible investors 28. At project end, the indicator target for investments of US$100 million generated was exceeded, but validation of whether they were responsible investments (and thus met the indicator criteria) was not conducted. Based on project activities to increase awareness of investment opportunities, it is likely that the US$216 million in investments made during the life of the project can be attributed, at least in part, to the project. Interventions included: (a) raising awareness of investment opportunities through involvement and promotion of the Free Zone at international fairs and forums; (b) the development of the Free Zone’s investment promotion and communication strategy; (c) the organization of the first two editions of the Invest in Nouadhibou Forum; (d) the support of 11 investment climate 4 Because the project scope was expanded during restructuring, a split rating method is not applied, as per World Bank guidance. Implementation Completion and Results Report for Investment Project Financing Operations (2020). 5 A comparison of planned versus actual targets for both IF (March 2016–August 2019) and AF (September 2019–November 2021) is included in Annex 6. Page 13 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) reforms through which the project improved conditions in the nationwide regulatory framework; and (e) the digitalization of the commercial justice chain to improve the transparency and timely resolution of commercial justice cases.6 However, there is considerable uncertainty over this indicator—even if the general investment target was overachieved, whether or not the investments were made by responsible investors was never assessed. That is, the investments were not validated for transparency or environmental compliance, as per the definition of the indicator. Criteria for determining what is responsible were not drafted, and neither metrics developed that could have been measured. This was not a Mauritania-specific issue but an M&E implementation issue. In conclusion, while generating responsible investing was a core focus of the project, what share of the US$216 million in new investments meets the criteria remains unknown. The objective is rated Modest, given that results are weakly linked to the project. Objective 2: To support the development of a seafood cluster that creates value for communities in Nouadhibou. Rating: Modest PDO Indicator 2. Fresh fish exports 29. The project indicator for cumulative fresh fish exports of 21,400 tons was exceeded, reaching 29,097 by project end. Annual fresh fish exports increased from 996 tons in 2015 before the project started, to an average of 6,411 tons over the last three years (while fluctuating significantly on an annual basis). However, the large increase in exports over the project period cannot be attributed to the project itself, given that the inputs that would have precipitated the change were not finalized during the project. In the original project design, the increase in fresh fish exports was predicated on the introduction of new landing infrastructure and a warehouse. Two pieces of landing infrastructure— the pumping stations for EPRB and PAN—were delivered only at project closing while the refrigerator warehouse at Nouadhibou airport for exporting fresh fish was near completion but not operational. Several other infrastructure activities were planned and technical studies were conducted (including a diagnostic study to facilitate exports at the border with Morocco), but many were dropped because of insufficient remaining time for implementation. This included the building for the Seafood Cluster Governance Council in Nouadhibou, and the renovation of the commercial registry building in Nouakchott. The objective is therefore rated Modest, taking into account that while the infrastructure was delivered, it did not occur before project end, and there is uncertainty over its future sustainability. Meanwhile, there is low confidence regarding the use of the technical assistance provided. PDO Indicator 3. Direct project beneficiaries (percentage of which are female) 30. The project fell far short of achieving its goal of 6,000 project beneficiaries, benefiting only 1,551 persons directly, while it exceeded the targeted share of female beneficiaries (38 versus 30 percent). Out of all beneficiaries, 1,341 persons received training, totaling 39,952 training days. 7 A further 210 project beneficiaries received benefits not in the form of training; they attended trade fairs or workshops or participated in capacity building or other project activities. The goal of 6,000 beneficiaries may seem ambitious, but at the time of project preparation an estimated 53,000 were employed in the Nouadhibou sector (a number that increased over time), so the project was effectively targeting only about 10 percent of all employees. The sub-indicator of reaching 30 percent women was exceeded (38 percent achievement). However, most activities targeting women, such as marketing and organizational support to local women’s cooperatives operating in Nouadhibou, were dropped because of counterpart failure to disburse committed funds. An intermediate indicator, “Women-led MSMEs in Nouadhibou,” was not realized at all. Among those who did receive training, the results were mostly positive. Based on a post-project survey (n = 25), most training 6 The World Bank discontinued the Doing Business score in 2021, so it could not be used as a metric. 7 As per project data supplied by the PIU. Of these, only 916 individual beneficiaries could be verified. Page 14 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) participants found it useful and teaching quality high, with 11 reporting it changed the way they work. Beneficiaries most valued the training because it improved the quality of landed catches. Impacts of project activities on improved performance (a sub-indicator) through access to market or revenue generation were not measured. Objective 3: To improve the business environment to boost private sector development in Mauritania. Rating: Modest PDO Indicator 4. Transaction requests increased from an enhanced Collateral and Business Registry 31. The Collateral and Business Registry was not activated by project close, and the achievement was zero, compared to the indicator target of 1,000. The indicator was intended to capture changes in private sector development. However, the activities to computerize business and collateral registries in Nouadhibou and Nouakchott were not implemented. Related activities that would have supported the private sector—such as the renovation of the Commercial Justice building in Nouakchott—were not implemented. However, given that it was linked to a single activity, the registry, it was not able to fully capture business activity that occurred. Therefore, the objective is rated as Negligible. 32. While the project’s impact was modest relative to the PDO achievement, it nonetheless moved the sustainable fisheries and private sector development up the agenda for both policymakers and the public and increased technical know-how. This was thanks to the continuous technical assistance and policy dialogue provided over the course of the project’s duration. The project provided a significant amount of technical assistance and financing for capacity building and analytical support in areas pertaining to key private sector opportunities. These are areas where government know-how was limited. For example, international best practices and knowledge was provided on issues, including women’s economic empowerment in the fisheries sector, investment climate reforms, fisheries competitiveness, and investment promotion. Justification of Overall Efficacy Rating 33. The overall efficacy rating is assessed as Modest. A significant amount of time and financing were spent on capacity building and technical studies, including the Fisheries Competitiveness Cluster (PCH) Strategy. However, these efforts did not yield expected results on institutional capacity building of ANZF, given the low interest and high turnover experienced, which led to the dropping of key infrastructure projects. Combined with the nearly one-year stoppage in public procurement between 2020/21, this meant numerous final project outputs and outcomes were never completed. The low disbursement of counterpart funding (18.3 percent) also negatively affected implementation of structural project activities, notably those targeting women. Activities related to communication, marketing, and gender were reported to be a low priority for government and the PIU, and implementation of these was correspondingly slower. The disconnect between ANZF implementation priorities and PCH priorities contributed to the low rating. 34. Some project data was not validated and corroborated by other information sources, and attribution of indicator changes was weak. While 10 out of 17 indicators were fully or mostly achieved, 1 was partially, and 6 indicators had nil results (Table 3). Attribution of outcomes that were achieved related to investments and exports of fresh fish is weak, and in the latter case likely non-existent, for reasons discussed earlier. The PIU did not attempt to validate the indicator data it was collecting. Page 15 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Table 3. Summary of Achievement of Final Results Indicators Mostly Partially Not Component/PDO Achieved achieved achieved achieved Dropped Total PDO 2 0 1 1 0 4 Intermediate results indicators Component 1. Develop a sustainable seafood cluster in Nouadhibou 1 0 0 2 0 3 Component 2. Increase the value of seafood products produced and marketed in the seafood cluster with the participation of local actors 2 1 0 2 0 5 Component 3. Strengthen the investment climate for private sector development 3 1 0 1 0 5 TOTAL 8 2 1 6 0 17 35. NESC is best described as a tale of two projects, a successful original project phase and an unsuccessful AF phase. Unfortunately, the second phase dragged down the many achievements of the first phase. The project started well, with disbursements and implementation on track, but following the 2019 restructuring, things were derailed. The first phase saw the implementation of a large number of successful activities, most of them technical assistance activities, complemented by parallel IFC and World Bank Trust Funds. This reflected good cooperation between the Bank and the Borrower and started to show promising results at output level. Then, during the post-AF phase, the project ran into a proverbial wall of political economy issues, the COVID-19 pandemic, and implementation of a new component that neither fit well into the existing project framework, nor was aligned with the mandate of the ANZF. Numerous activities were dropped, some at the last minute after lengthy preparation, and two key infrastructure activities were only completed in the final days of the project and thus could not deliver expected outcomes. Procurement during AF was slow and ineffective, and the disbursement rate fell from 100 percent (IF) to 46.9 percent (AF), with US$3.5 million ultimately cancelled. C. EFFICIENCY Assessment of Efficiency and Rating 36. Efficiency over the life of the project is rated Modest. Under the original project many activities were successfully carried out. These included the dissemination of the Seafood Cluster Strategy, establishment of the first PPD mechanism in Mauritania (Seafood Taskforce), capacity building for local operators in the fisheries sector, the adoption of the law 2017-006 governing PPP, and the adoption of various investment climate reforms. On the other hand, during AF, project implementation suffered from delays and cancellations. This included several activities for which significant preparation work had been completed (such as training of women entrepreneurs, Radio Pêche, and digitalization of commercial registry). As a result, of the four project PDO indicators, one (exports of fresh fish) could not be linked to project activities, and a second (total beneficiaries) fell short of the target. 37. Several factors reduced project efficiency: (a) one of the major project goals, the refrigerated warehouse, was only completed at project end, and the fish hall was not built; (b) repeated delays in delivering M&E and fiduciary documentation; (c) US$3.5 million in financing cancelled at project end, indicating that the project was unable to Page 16 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) implement this amount of activities within the timeframe; and (d) although several activities were prepared, they were not implemented. In addition, significant staff turnover at the PIU and with key government counterparts meant that new staff were frequently getting up to speed and new relationships had to be formed. Weighing project outputs against outcomes, the project’s efficiency did not fully meet expectations. Several key activities were not completed by project close, or were dropped, and 6 out of 17 indicators were not achieved. 38. During project preparation quantitative cost-benefit analysis was limited to Sub-component 2.1. The economic analysis focused on fresh fish exports, based on the assumption that the project would promote them through the refrigerated warehouse and associated one-stop shop, plus the streamlining of procedures at the border crossing with Morocco. However, the warehouse did not become operational during the project. The one-stop shop was to be moved to a building near the warehouse after project close. The economic rate of return (ERR) was only calculated for Sub-component 2.1, originally estimated at US$2.155 million (or 24.7 percent of the original parent project funding). The economic analysis focused on monetary benefits, attributed to project interventions in the targeted value chains. The expected value of the project was based on the returns to the refrigerated warehouse for fish export at the Nouadhibou International Airport (Sub-component 2.1), through the increase in value of seafood products and new revenue generated by the warehouse. 39. Out of 110 planned activities, 23 were put on hold or stopped (that is, suspended) at project end. Several activities that had been launched were abandoned. Partly related to this, the disbursement rate was low, at 46.9 percent of the original (3.75 million out of 8.0 million), and 80 percent after the cancellation of 3.5 million in financing (3.75 million out of 4.5 million). The abandonment of activities has implications for project outcomes and sustainability. 40. Quantitative analysis of economic impact was not conducted for the Implementation Completion Report (ICR). This is because the activity, which was to generate the return on investment, did not become operational and therefore could have no impact on economic returns. Annex 4 provides details of the efficiency analysis. D. JUSTIFICATION OF OVERALL OUTCOME RATING 41. The rating of the overall outcome is Moderately Unsatisfactory and is based on the ratings for (a) relevance of PDOs; (b) efficacy; and (c) efficiency. As discussed earlier, relevance of the PDO is rated Substantial, and efficacy and efficiency rated as Modest. Based on this, in line with relevant OPCS guidelines, the overall outcome is rated as Moderately Unsatisfactory. The rating is based on the following findings: The first two components were highly relevant to the government priorities and sector development, while the third component, focused on the national level, was of somewhat limited relevance to the Nouadhibou fisheries sector. Project efficacy was rated as Modest given that several major infrastructure projects were only completed at project close, so that the respective outcomes linked to these inputs were not realized, and several other key projects were dropped because of lengthy delays and weak public procurement. Most of the gender activities were not implemented. The economic returns to the project were not satisfactory and the number of beneficiaries reached was a fraction of the target. 42. Although the overall project’s rating is Moderately Unsatisfactory, it should be noted that the Project achieved some critical output level results. During IF implementation, numerous high-quality and relevant studies were produced. The most critical of these were the PCH strategy, a major technical accomplishment developed through an extensive consultative process, and regulatory support for investment climate reforms and a PPP framework, which was revised during project implementation. The strategy provided a common vision for the development of the Free Zone and was used as a basis for dialogue and consensus building, while also alerting the private sector to the Free Zone’s potential as well as the World Bank’s involvement. Page 17 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) 43. The project was also successful in implementing over 80 activities, helping the government to move in the direction of its investment climate goals, even if several indicator targets were not met. Below are examples of successfully implemented activities, by component: Component 1 • Seafood Cluster Strategy: The most noteworthy achievement relates to the development, consensus building, and dissemination of the Seafood Cluster Strategy. A committee presided by the General Secretary of the Free Zone has been put in place to operationalize and disseminate the Seafood Cluster Strategy among the Ministry of Fisheries, the Ministry of Employment and the Ministry of Commerce. As part of the follow up work of the strategy, the project supported the organization of the Second Investment Forum in Nouadhibou, April 2–3, 2018. • Seafood Taskforce: Another important milestone is the setup of the first PPD mechanism in Mauritania, the Seafood Taskforce. This tripartite platform had representation from 12 key actors from: (a) the public sector, including members of both ports (PAN and EPBR) and the ANZF; (b) private sector; and (c) civil society. Its objective was to establish a continuous dialogue on promoting better conditions for private sector development, improving the investment climate and reducing poverty, through a transparent environment of mutual trust among all stakeholders. Six meetings took place from project inception through the end of 2018. The taskforce is no longer operational. • Establishment of an investor tracking system. The project funded the development and implementation of computer software to monitor investors in the Free Zone and enable the collection of relevant information. Component 2 • Capacity building for local operators in the fisheries sector: This was based on a thorough diagnostic of capacity building needs of local operations in Nouadhibou. The vocational training and capacity building program reached over 1,300 actors, including 800 women. In addition, numerous knowledge exchange and capacity building activities were implemented. These included: (a) a knowledge exchange mission to Namibia and South Korea on sustainable fisheries management; (b) development of eco- seafood clusters; and (c) organization of several workshops on quality certifications and standards in the fisheries sector. • Refrigerated warehouse: Even if it was delivered only on the last day of the project, the project supported the construction of a refrigerated warehouse and two pumping stations. Component 3 • PPPs: The project supported the adoption of the law 2017-006 governing PPPs, followed by the approval of its executive decree in October 2017. Following the setting of an effective regulatory framework on PPP, the project supported the development of tools needed to conduct PPP operations including conducting feasibility studies and the establishment of a PPP unit. • Investment climate: Key output-level results included support to improving the conditions of the nationwide regulatory framework through the support and enacting of 11 investment climate reforms in areas such as enforcing contracts, trading across borders reforms, and insolvency. The project also provided critical support to upgrade and modernize the one-stop shop in Nouakchott and the commercial justice system, together with the delivery of a strong capacity building program on commercial justice. Page 18 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) E. OTHER OUTCOMES AND IMPACTS Gender 44. The project was weak in following through on planned support for women in the fisheries sector. Component 2.2 was designed to support women working in the fisheries sector (mostly as low-paid processing plant workers and fish products sellers), linked to building the capacity of vulnerable groups to help them capture economic benefits. The intermediate results indicator, “Women-led MSMEs in Nouadhibou,” had a zero achievement, compared to a target of 10. The gender activities were to have been financed by counterpart funds, but only 17.3 percent of committed funds were disbursed, while the ANZF demonstrated weak interest in implementing Component 2.2. Planned activities included training for women in cooperatives, promotion of new export markets for women through study tours, and promotion of products produced by women. However, with the exception of a training that 659 women participated in, all activities which would have supported women in the fish sector were abandoned. Abandoned activities included a personal initiative training for women, which had been fully prepared but never implemented due to lack of counterpart funds. Of the women who participated in a post-project survey, most could not identify how the training helped them, specifically as women, in the labor market. Institutional Strengthening 45. Institutional strengthening was a key objective under the project and relevant to the first and third component. The project supported important activities related to capacity development and institutional strengthening in key public and private sector institutions involved in private sector development and governance in Nouakchott (national) and Nouadhibou. While most of the planned activities were successfully completed for the first two project objectives the assessment of the impact of these shows weak results as described below. 46. Component 1: It is unlikely that ANZF institutional capacity was increased. Institutional instability at the ANZF— three different Directorate Generals for Development during the life of the project—contributed to the Seafood Taskforce’s lack of effectiveness. This was in line with high turnover of ANZF leadership more generally and intermittently low cooperation levels with the PIU and Ministry of Economy and Finance (MEF). According to private sector representatives, dealing with ANZF has proven difficult, given that it is heavily bureaucratic. The World Bank had been provided significant and complementary support through trust fund resources, and when this funding disappeared, the achieved momentum for the implementation of PCH and related convening and managing bodies died. The failure of the Seafood Taskforce to convene and fulfill its mandate for the last two years of the project must be considered a significant institutional failure with consequences for the PCH cluster’s sustainability. In addition, a PCH Steering Committee was designed to oversee the implementation of the PCH strategy. It was led by the head of the ANZF Directorate General for Development and comprised eight members: the Ministry of Economic Affairs and Development, Ministry of Fisheries and Maritime Economy, Fisheries Federation (representing its artisanal and industrial sections), and Nouadhibou civil society. This Steering Committee never became operational. The new PCH building was designed but construction was then dropped, as there was insufficient time left in the project. Given that the Seafood Taskforce was no longer meeting during the last two years of the project and the PCH Steering Committee was not operational, its prospect of continuing in the post-project period is considered low. While unfortunate, this also mitigates that a PCH building was not built. It is likely that the building would not have been used by the Steering Committee. 47. Component 3: Notable progress was made on investment climate reforms and capacity building in commercial justice. Judges, arbitrators, and mediators received training in commercial justice, which was deemed highly useful Page 19 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) and helped to build capacity, notably related to commercial justice reforms. However, two out of three core activities under this component were dropped: (a) digitalization of the commercial registry was not completed by project close, even if the procurement process had been launched; and b) the Commercial Justice building was not moved to new premises. An existing building was to be renovated and designs were commissioned (US$35,000) but due to ANZF procurement delays, the renovation (US$770,000) was dropped, and the move did not take place. Mobilizing Private Sector Financing 48. The share of investments (US$216 million) in the Nouadhibou fisheries sector that can be linked to the project is difficult to ascertain, mainly as a result of the World Bank’s efforts to promote the Economic Free Zone at various international fairs and forums, including the Brussels Seafood Expo. However, while it is likely that these activities, and the support of the development of a major Seafood Cluster Strategy, contributed to investor interest in the fisheries sector, the lion’s share of new investments during the life of the project were likely driven by other factors, especially the establishment of the free zone and overall market conditions. This conclusion is based on interviews with major investors, five of six of whom had not heard of the NESC project, and that the infrastructure supported by the project had not come online by project end. Poverty Reduction and Shared Prosperity 49. It was expected that achieving the project’s objectives would enable the fishing and seafood sector to sustainably contribute to a reduction in extreme poverty and the promotion of shared prosperity in Mauritania, where the sector has substantial potential. Income and expenditure data was not collected on project beneficiaries, nor was an impact evaluation conducted to measure before or after and with or without changes, which would have allowed the project to estimate distributional impacts and poverty impacts. The findings, based on a small post-project survey of beneficiaries, suggest that the impacts on income generation derived from the training are modest and indirect. Other Unintended Outcomes and Impacts 50. No other significant unintended impacts were identified. III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION IF Preparation 51. Project design effectively incorporated government goals and binding constraints. The selected PDO and the supporting activities—related to exports, investments, beneficiaries, and business transactions—clearly reflected the project’s goals of increasing economic activity. Project design identified and considered binding constraints inhibiting sector growth: overfishing, lack of stakeholder coordination, inadequate fish landing infrastructure, and links between the fishing sector and the rest of the economy. 52. The project also drew on experience from earlier national and regional project implementation as well as from broader economic and sector lessons. Lessons incorporated into the project design included the awareness that Page 20 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) special economic zones are not a substitute for a country’s larger trade and investment reforms efforts, leading the project to broaden its scope to investment climate more generally. It also took into account the fact that the fisheries sector was not eligible for the Free Zone regime and included activities to address this regulatory shortcoming by supporting an institutional framework to ensure adequate regulation and facilitation. Project preparation also focused on private rather than the public development by supporting the ANZF to identify private developers and operators of the seafood cluster. Another key lesson concerned the importance of managing all fishing segments and the value chain approach. It was believed that a value chain and logistics approach would facilitate an improved understanding of challenges to competitiveness, among other things. 53. Project preparation was facilitated by strong support across project teams. World Bank task team leaders on the West Africa Regional Fisheries Program (WARFP) were task team members on NESC, and vice versa. The coordination between WARFP and the project preparation team was particularly useful in fostering sustainability with both the public and private sectors. The project was also able to draw on previous World Bank technical assistance, for Nouadhibou Free Zone technical assistance in 2013–14, Competitiveness of Nouadhibou Trade Sectors and Location in 2014, and Mauritania Public-Private Infrastructure Advisory Facility (PPIAF) in 2014–15, which helped prioritize the focal sector. A large technical assistance program was running during project preparation, which the project design was able to draw upon. 54. Project preparation took place soon after the establishment of the ANZF in 2013, aimed at attracting economic activity and investments to Nouadhibou. The embedding of the project Free Zone had several implications that would impact the project. One, for the first time, a project management unit would be located outside a ministry’s control, since it would be housed within the ANZF. The ANZF, however, was still new and its institutional mandate and powers (such as powers to collect tax and transfers) were still being worked out. Two, questions over how much authority the ANZF would have led to a power struggle with central authorities, and relations depended on the personal relationship between the ANZF president and central authorities. The relationship between the government and Free Zone authorities was not cooperative. 55. Only two project interventions were modeled in the economic analysis. The economic analysis was limited to a calculation of the ERR from the construction of the refrigerated warehouse and the one-stop shop. It is presumed that the economic return to other activities, most of which were in the form of technical assistance, was deemed too uncertain and indirect. B. KEY FACTORS DURING IMPLEMENTATION Positive Factors 56. Project goals were highly relevant to the government and the economy. The government’s focus on promoting private sector development, moving away from reliance on extractive industries, presented a strong enabling environment. The large but poorly managed fisheries sector had strong potential to increase value-added by increasing investments and income in the sector. Government ownership over the PPP agenda was strong and reinforced by the creation of a PPP unit within MEF. 57. Capable and experienced personnel and staff were key to a strong initial project implementation. The ability to use staff from an already existing PIU (from another World Bank project) that moved to Nouadhibou initially allowed the transfer of management experience to the project. Building on expertise gained from IFC projects, including the use of its PIU staff, helped NESC get off to a strong start. A number of tools and strategies were developed for use by the MEF and ANZF. The presence of task team leaders, in the region and then in-country (at Page 21 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) least until the onset of the COVID-19 pandemic), greatly facilitated regular communication and coordination between team members. 58. Project preparation and implementation benefited from cooperation and support from other World Bank Group projects and development partners. Project preparation was facilitated through the rapid mobilization of a multidisciplinary team with experience in the Mauritania private sector. The project team was able to draw on significant complementary trust fund support (the two IFC advisory services projects), Business Environment Enhancement Project (BEEP), and WARFP. This contributed to the project’s design and effectiveness in the early years of implementation. 59. The World Bank’s relationship with bilateral donors enabled it to leverage additional resources and mobilize financing through various trust funds to support the project. Drawing on trust fund financing enabled the project to capitalize on technical expertise in a range of areas, including competitiveness, gender-targeted activities, the legal and regulatory environment for PPP, and green technology. The project worked with the Competitiveness Industries and Innovation Program to increase the productivity of entrepreneurs, generate private investment, and create links with the formal economy. It also worked with the program to develop a community radio program (Radio Pêche), although this activity was ultimately abandoned. Between October 2014 (during project preparation) and September 2021, US$1.42 million in trust fund financing was mobilized to support various project preparation activities. Annex 6 provides more details. Negative Factors 60. Political economy dynamics were disruptive for the project and were reflected in low cooperation between key stakeholders. For most of the life of the project, especially the later part, tensions existed between the ANZF and the central government over their respective authority and responsibilities. The ANZF and PIU also had a periodically strained relationship, which reached a nadir in 2020 when procurement stopped completely as cooperation ground to a halt. The PIU was unwilling to share key project and activity documentation, and the ANZF was unwilling to authorize procurement for said activities. Private sector representatives expressed frustration that, instead of facilitating private sector engagement or acting on its behalf, the ANZF blocked initiatives and did not engage with them. Low motivation was also a serious issue. By project end the focus of both the central government and the ANZF on the core project goals of sustainable investments and assisting small entrepreneurs appeared to have diminished. 61. The MEF failure to disburse counterpart funds, despite regular and repeated requests, negatively affected activities and counterpart engagement. The MEF was non-compliant with the project Legal Agreement, repeatedly failing to disburse committed funds, which were not included as budget line items. By project end, it had disbursed only 18.3 percent of its commitment of US$2.5 million in counterpart funds. Beyond the disbursement issue, lack of leadership and commitment to achieving project outcomes, as noted above, was evident. One unfortunate result of the borrower’s non-disbursal was that most women-focused activities were dropped. These activities had been grouped under the government 62. The COVID-19 pandemic, which began six months after AF became effective, increased implementation challenges. With travel and in-person meetings restricted, coordination and communication between the key stakeholders—administration, beneficiaries, consultants, and borrowing entity—became more difficult and paralyzed many activities, slowing down implementation. This was one factor behind numerous activity cancellations. Page 22 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) 63. Having the responsible agency external to the central government created challenges. The NESC was the first time a project was managed outside of the government structure, which created challenges. The ANZF was located a considerable distance from the capital, and government ministries added a logistics challenge to the political challenge. The addition of Component 3, which had a nationwide scope (PPP), made the ANZF even less suitable, as this went beyond its institutional mandate as well as interest. This issue was compounded by what was described as a weak culture of planning and prioritizing within the government. 64. AF doubled project financing, with a significant share going to a new component covering PPPs and investment climate. This was not closely linked to the original project sector goals. Attaching the PPP and investment climate, which had nationwide coverage, to a project being implemented outside of central government structures (that is, under the ANZF) posed a risk, in light of the latter’s mandate and poor institutional relationships between the ANZF and the central government. In addition, there was limited time for implementation of planned activities—just two years—during the AF period, between effectiveness in September 2019 and project closure in November 2021, even as the project budget doubled in size. The challenges posted by this short timeline were then exacerbated by the travel and in-person meetings restrictions resulting from the pandemic, and the public procurement 65. PIU performance was not as effective as it could have been, reflecting staffing issues and reluctance to share M&E documents. While comprised of experienced professionals, high staff turnover at the PIU contributed to implementation delays. Attracting staff to work for the PIU, located in Nouadhibou five hours outside the capital and suffering from poor services and infrastructure, proved to be difficult. Toward project end, the PIU was severely short-staffed. The financial management, procurement specialists, and accountant left the PIU with six months of project time remaining. The safeguards specialist left two months prior to project closing. The PIU did not share all M&E indicators with the World Bank, and those that it did share had not been validated. It did not use M&E for learning or course corrections. Financial management and procurement documentation was often submitted or uploaded into STEP only after significant delays due to connection issues. 66. The ANZF was a new and untested institution, lacking project implementation experience. When the project became effective in 2016, the authority, created only in 2013, was still in the process of clarifying its authority and its relationship with the central government, and developing its own procedures. The government was eager to have the World Bank active in Nouadhibou to support the Free Zone. It had no relationships with other donors. However, the entity was set up. The ANZF did not have a clear mandate regarding either the fisheries sector or the port. Turnover of ANZF leadership and management posed further challenges. During the life of the project, the ANZF went through three different presidents, general secretaries (also responsible for public procurement), and director generals (responsible for the investment climate agenda). The ANZF was also criticized by private sector actors as being highly bureaucratic, and in 2020 the central government even considered shutting it down. Instead of acting as a facilitator for promoting the private sector needs and priorities, many saw the ANZF as merely adding another level of bureaucracy. Procurement delays were also due to rivalries between Nouakchott and Nouadhibou and leadership changes in the latter. Beyond exhibiting little interest in supporting the private sector, ANZF was not proactive in promoting social and environmental issues. It showed little interest in supporting women in the sector, and during the seven years since project launch it operated without an environmental specialist in a protected bay. 67. A core sector constraint—weak governance and institutions—was to be partially addressed through a PPD, which was not in place. The Seafood Taskforce, intended as a forum for PPD that would meet every month, met infrequently in 2017–19 (three times in 2017, two times in 2018, and one time in 2019) and stopped meeting altogether for the project’s last two years until one final meeting in October 2022 as the project was winding down. The project aimed to help the investment climate committee with capacity building and organization by promoting Page 23 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) greater communication and use of in-house experts. However, after coming to meetings a few times, the ANZF stopped participating altogether. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 68. Although project parent project indicators were broadly reflective of PDOs, they could have more fully captured several expected project outcomes. A review of the four PDO indicators shows they were clearly linked to measurable key private sector activity outcomes. Increased investments, fresh fish exports, and benefits going to local actors are reasonable proxies for economic activity in Nouadhibou. On the other hand, the new AF indicator, transactions requests from an enhanced collateral and business registry, was to be a proxy for business activity, but this was not the case, and other indicators could have reflected business activity more clearly. The most ambitious target, 6,000 project beneficiaries, was just over 10 percent of the estimated employees in the sector. Had training activities been launched during year one as opposed to the final year of the project, this target might have been met. However, the indicators did not fully measure changes in client capacity, either of institutional clients (ANZF) or direct beneficiaries. Some indicators could have been more clearly defined. For example, guidelines for who are “responsible investors” were never fully defined. There is a useful description in the project document as “investors whose investments contribute, for example, to the implementation of fisheries management plans and only use fish from fisheries that are sustainably managed.” The next step was never taken, however. This would have clarified criteria for “sustainable management” to distinguish responsible from not responsible investors. In other words, the definition was not operationalized so it could be applied. 69. A theory of change in diagram form, developed for AF, was helpful in linking different activities with outputs and intermediate indicators leading to the PDOs, which had not been done for IF. The diagram could have been made stronger if specific activities were directly linked to outputs and then outcomes (many crisscrossing arrows made the connections difficult to conceptualize), and if the underlying assumptions had been made more explicit, that is, if a discussion had determined why the activities would lead to specific outputs, intermediate outcomes, and overall project objectives. M&E Implementation 70. Data collection and analysis, conducted by the PIU, had significant weaknesses. Concluding that M&E design was not the main problem, M&E failure must be ascribed to its implementation. Not all indicators were kept updated during the project, and at project end several indicators were missing. Critical deficiencies were identified in the data collection, notably on data validation and compliance with definitions and data collection methods noted in the PAD. Not all data supporting indicators was collected. Some indicators were not clearly defined, and their calculation remained contentious until project end. In addition to weak data collection practices, not all data was shared with the World Bank, raising questions about the reliability and validity of some of the aggregate indicator numbers. The World Bank received only partially completed documents for indicator targets, M&E plans, and data collection methodology. It also did not receive underlying supporting data, despite repeated requests. The PIU reportedly did not allocate Page 24 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) sufficient funding for M&E activities, despite having resources for earmarked for this in its annual budget, further illustrating failure by the PIU to fully commit to an M&E system. 71. Validation of secondary data collected for project indicators was not conducted by the PIU. The PIU argued it was not responsible for validation of data and did not contact stakeholders, such as private investors, or training participants, to follow up on whether they experienced an impact on their activities. This also concerned the “responsible investors” definition. The project neither determined the criteria nor followed up with investors. Follow- up data collection was conducted by the World Bank after project close to assess attribution issues and stakeholder perspectives on project impacts. There was no validation of whether the investments made met the indicator criteria (that is, responsible). A mid-term evaluation was carried out, but it narrowly focused on activity implementation and disbursement and did not collect or analyze data or interview stakeholders. M&E Usage 72. M&E was not used to support the project or to draw lessons learned. With weak M&E implementation, the data that was collected was not used for learning, decision making, or adjusting project activities. By the midterm review of November 2020, project challenges were so substantial that project cancellation was proposed. In addition, because key activities had not been implemented, there was little to measure in terms of benefits. Justification of Overall Rating of Quality of M&E 73. The overall quality of the project M&E is rated Moderately Unsatisfactory. The basis for the rating is the PIU’s failure to share M&E documentation with the World Bank throughout project life, not regularly updating indicators, and not validating them. While the World Bank used additional resources for M&E—sending a consultant on mission to collect data and documentation for select indicators, and a second consultant after project end to fill information gaps and validate several indicators—the PIU’s M&E contribution was suboptimal. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 74. Financial management is rated Moderately Satisfactory. Financial management is rated Moderately Satisfactory given external unqualified audits during the life of the project and reporting quality, but there were systemic delays in processing reports and payments. Financial monitoring reports were submitted within the required deadlines and were acceptable quality, and the project accounts were kept up to date. The actual operating expenses were regularly submitted to the World Bank on a monthly basis. Internal control recommendations were considered satisfactory. However, repayment of the withholding tax on consultant fees were not systematically respected and documents pertaining to works completed (such as the refrigerated warehouse or pumping stations) were not always delivered on a timely basis. Low disbursement rates were a continuous issue during the AF period. The PIU struggled to implement closing provisions in a timely manner. 75. The procurement performance is rated Moderately Unsatisfactory. Procurement was Satisfactory under the parent project and Moderately Unsatisfactory under AF. However, the consequences of the latter period outweigh the earlier positive performance. Public procurement delays, which lasted for most of the year 2020 and froze nearly all contract approvals toward the end of the project life, led to major implementation delays and non-implementation of key activities, totaling US$2.4 million in the procurement plan. Once the impasse between the ANZF and the PIU was finally resolved following changes in procurement personnel at ANZF, insufficient time remained before project end to complete all activities. Among other things, this meant that the activity to computerize business and collateral registries Page 25 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) in Nouadhibou and Nouakchott was not implemented (so that the PDO indicator “Transaction requests increased from an enhanced Collateral and Business Registry” 1,000 transactions was zero), and neither the Commercial Justice building in Nouakchott nor the fish hall in Nouadhibou were renovated. These delays contributed to the low project rating, and also point to uncertainties around project sustainability. Finally, Aide-Memoire recommendations on procurement were frequently not applied. 76. Environmental and social compliance is Moderately Satisfactory. The project was categorized under Environmental Assessment Category B because of the risks associated with one activity, the construction of the refrigerated warehouse at the airport. Two environmental and social impact analysis studies were conducted, for the construction activity and artisanal port activities (pumping stations). By the end of the project, the only potential major negative environmental impact concerned the mobile pumping stations, related to a change in location of the EPBR. Plans for management of liquid waste from the pumping station at the EPBR were not fully developed and remained a concern at project end. The EPBR continued to use septic tanks, and the ANZF did not proceed with the construction of a treatment plant. Obtaining supporting documents and analysis relating to environmental and social risks in a timely manner was a recurring issue. The ANZF did not have an environmental and social specialist to ensure environmental and social compliance until project close, when one was finally hired. The Grievance Redress Service did not receive a single complaint throughout the project life, which raises questions about how effective it was. C. BANK PERFORMANCE Quality at Entry 77. Moderately Satisfactory: Indicators and components were highly relevant to Mauritania’s knowledge gained from previous projects, although AF restructuring introduced a component that was not well aligned with IF. The PDO was realistic, given the high level of counterpart interest in promoting sector growth through private sector-led development, which signaled political buy-in. The low value-added of landed catch in Nouadhibou also suggested high potential for growth. However, certain elements, especially how “responsible investments” would be assessed, were left unaddressed by the design, and were not defined later. The Results Framework targets were set at reasonable levels. The project included Sub-component 2.1, which primarily targeted informal sector workers (in the artisanal fisheries sector), many of whom are women, so that the project design had a strong social inclusion element. The stakeholders targeted a combination of public sector and large and small private sector actors, who were representative of the sector and the project’s goals. The project structure was straightforward and simple: the IF project had just four sub- components (under two components) and AF restructuring added two more sub-components. Including a nationwide component (PPP) for a project managed locally created challenges. Quality of Supervision 78. Moderately Satisfactory: Overall supervision was effective in what became a challenging institutional environment, but attention could have been paid to monitoring results. The project team was based in the region. A change in task team leaders in 2017 occurred, and the transition went smoothly. The new task team leader moved to the country in 2017, officially taking over in early 2018, which facilitated project supervision. As everywhere, supervision challenges emerged following the start of the COVID-19 pandemic. Supervision missions were conducted remotely, placing constraints on communication and oversight. The problems with M&E were obvious early on, and the World Bank hired a consultant in 2018 to support M&E data collection efforts. However, by project end, M&E problems with transparency and data validity remained. Moreover, some ineligible PIU expenses were detected, but this issue was solved (reimbursed by government) once the World Bank discovered the errors. During AF implementation, the project team was aware of the many project shortcomings, specifically those related to public procurement delays, extremely Page 26 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) low counterpart disbursement, and lack of engagement by the ANZF with the PPD, and sought permission to cancel the project in March 2021. However, while cancellation was given strong consideration, with many in World Bank management in favor, ultimately a decision was made against taking this step, with political economy dynamics playing a role. Justification of Overall Rating of World Bank Performance 79. World Bank performance is rated Moderately Satisfactory, on the basis of successfully introducing a new strategy and vision to the sector through technical assistance and infrastructure. The World Bank supported a substantial number of technical activities during the first three years, giving the government practically everything it needed to achieve project outcomes. However, over the final two project years, the activities gained little traction on the Borrower side. Whether because of weak motivation, institutional discord, or pandemic-related disruptions, the ANZF failed to translate the large amount of analytical and strategic work into action. And without having taken root during the project’s lifetime, confidence that it will yield results later is low. The project prepared the groundwork for sector growth through significant technical assistance, leveraging collaboration with other projects, especially the two IFC projects, and some limited infrastructure. Nonetheless, the World Bank struggled to hold the Borrower accountable for repeated failures to disburse its committed funds (that is, counterpart funds), and there was an internal disagreement over project cancellation. Implementation supervision report ratings during AF may have been overly generous, in the expectation that project targets would be met (six had nil outcomes and two were only achieved at project close) and that the M&E system would perform. D. RISK TO DEVELOPMENT OUTCOME 80. The risk to development outcome is rated as Substantial. A strong emphasis on preparation and extensive technical assistance has laid the groundwork and provided both the government of Mauritania and the ANZF the tools for achieving its goals of a stronger fisheries sector that increases the product value-added. This could form a strong basis for continued implementation, should the government continue the work that was started. However, the ANZF was not built up as an institution able to perform as a facilitator of economic growth. Risks are high that project outcomes will not be sustained, given weak political will to strengthen governance and institution building, engage with the private sector, or support women in the fisheries sector, evident even when the World Bank was engaged as a partner. The ANZF was not proactive in addressing environmental and social risks during the life of the project. The consensus view among the six PPD actors interviewed after project closure was that, while the technical assistance supported by the project was valuable and relevant, proposals and strategies simply did not get to the implementation stage. If this was the case during the life of the project, this issue is unlikely to be solved post-project. The ownership by the ANZF and MEF over project outputs is thus highly uncertain. V. LESSONS AND RECOMMENDATIONS 81. While the project faced challenges on a number of fronts, it has yielded a number of important lessons for other Bank projects 82. Lesson 1. Projects should carefully weigh the pros and cons of anchoring projects outside of central government agencies for three reasons: experience, political economy, and location. Locating the PIU outside of central government agencies, especially at an institution without previous project management experience, increased project risks. The agency Page 27 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) was young, untested, and located far from the capital, which had implications for recruitment and retention of PIU staff. It had never housed a PIU before and had no established relationships with other donors. The agency was still negotiating its mandate and contesting its relationship with the central government. 83. Lesson 2. Take into account that in some countries, institutional processes and relationships are subordinated to personal relationships. Mauritania’s weak institutions had implications for cooperation between project stakeholders, heavily dependent on the individuals occupying key positions. Had the project factored this into the design, for example, by conducting a political economy analysis during project preparation, implementation effectiveness might have increased. However, there is no guarantee that a greater focus on political economy would have enabled the Bank to resolve institutional/personal issues between national and local entities. As an external party, the Bank always faces certain constraints on its influence. Identifying champions and stable institutions to work with is especially critical in weak institutional environments. While initially the project team was able to collaborate with champions in the Ministry of Justice, staff turnover led to a loss of momentum. The project team tried to bring the analytical work and dialogue into discussions with new staff, but this proved insufficient, underlining the importance of devoting significant attention to working closely with institutions that are stable, even those outside of government. 84. Lesson 3. Private sector actors need meaningful engagement and understanding of their priorities. In projects targeting the private sector, businesses should be more involved than was the case with NESC. Although a PPD forum was created, the private sector was not able to participate at a meaningful level, as its priorities (such as basic service needs) were reportedly given little consideration. This was largely attributed to the ANZF’s limited willingness to engage with private sector actors. Meetings were not held during the last two years of the project, except for a final meeting at project end. This may have been because the ANZF, despite its mandate to attract investments, reportedly had minimal interest in engaging with the private sector. 85. Lesson 4. Adding a component weakly linked to project goals can increase project complexity and affect performance. Component 3, covering PPP and investment climate, which was national in scope, was added to the project as part of the second restructuring mainly to avoid the need to prepare an entirely new project. The PPP and investment climate goals were only tangentially linked to the initial project core objectives, and the ANZF was an awkward fit as an anchor for the component, given that it is located in Nouadhibou and does not have a national mandate. The result was to increase the project’s complexity contributing to the project’s low rating. 86. Lesson 5. Allow sufficient time for implementing new activities. AF had approximately two years for implementation, from effectiveness in September 2019 to closure on November 1, 2021. Even without the disruptions related to the pandemic and the severe public procurement delays, the program of activities would have been ambitious for such a short timeframe. 87. Lesson 6. The World Bank should devote sufficient attention to M&E. While acknowledging that M&E is not always prioritized in development projects, M&E implementation could have been more rigorous. Data and documentation for the indicators should be made available to the project supervision team periodically throughout the project, so that the validity of indicators can be assessed. Measurable indicator definitions should be developed. In the case of NESC, the inability to ascertain whether new investments were “responsible” contributed to the project’s low outcome rating. In addition, independently conducted assessments, using surveys, should be included as part of the M&E process. M&E was not used to inform project implementation or to make course adjustments, which represented a lost opportunity to address core problems, many of which came to light only during the ICR phase. . Page 28 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: Support the development of a seafood cluster Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Investments generated from Amount(USD) 0.00 80,000,000.00 100,000,000.00 216,700,000.00 responsible investors 21-Jan-2016 01-Nov-2021 01-Nov-2021 01-Nov-2021 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Fresh fish export Metric 936.00 2,600.00 5,600.00 29,097.00 tons/year 07-Jan-2016 01-Nov-2020 01-Nov-2021 01-Nov-2021 Comments (achievements against targets): Page 29 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Direct project beneficiaries Number 0.00 6,000.00 6,000.00 2,471.00 07-Jan-2016 01-Nov-2020 01-Nov-2021 01-Nov-2021 Female beneficiaries Percentage 0.00 30.00 30.00 38.00 Comments (achievements against targets): Objective/Outcome: Enhanced collateral and business registry Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Transaction requests Number 0.00 1,000.00 0.00 increased from an enhanced Collateral and Business 01-Mar-2019 01-Nov-2021 01-Nov-2021 Registry Comments (achievements against targets): Page 30 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) A.2 Intermediate Results Indicators Component: Developing a sustainable seafood cluster in Nouadhibou Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Strategic cluster framework Yes/No No Yes Yes documents (consistent with WARFP program objective) 07-Jan-2016 30-Jun-2017 01-Nov-2021 adopted and published Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Tripartite PPD stakeholders Percentage 0.00 70.00 70.00 57.00 (public, private, and civil society) reporting 07-Jan-2016 01-Nov-2020 01-Nov-2021 01-Nov-2021 satisfaction with their involvement in the design and implementation of the cluster strategy Comments (achievements against targets): Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at Page 31 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Target Completion Sustainable management Number 0.00 3.00 0.00 practices enhanced 01-Mar-2019 01-Nov-2021 01-Nov-2021 Comments (achievements against targets): Component: Increasing the value of seafood products produced and marketed in the seafood cluster with the participation of local actors Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Cold storage capacity for fish Metric ton 0.00 30.00 30.00 30.00 products built 21-Jan-2016 30-Jun-2018 01-Nov-2021 01-Nov-2021 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Landing infrastructure Number 0.00 3.00 2.00 facilities for improved traceability of fish products 01-Mar-2019 01-Nov-2021 01-Nov-2021 built Comments (achievements against targets): Page 32 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Client days of training Number 0.00 3,500.00 3,500.00 41,407.00 provided (number) 07-Jan-2016 01-Nov-2020 01-Nov-2021 01-Nov-2021 Client days of training Number 0.00 1,225.00 1,500.00 26,603.00 provided - Female (number) 07-Jan-2016 01-Nov-2020 01-Nov-2021 01-Nov-2021 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Entities reporting improved Number 0.00 5.00 0.00 performance (for example, improvements in business 21-Jan-2016 01-Nov-2021 01-Nov-2021 strategy, access to market, or revenue generation) Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Page 33 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Women-led MSMEs in Percentage 0.00 10.00 0.00 Nouadhibou 01-Apr-2019 01-Nov-2021 01-Nov-2021 Comments (achievements against targets): Component: Strengthening the enabling environment for private sector development Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Investment climate reforms Number 0.00 3.00 10.00 11.00 implemented 07-Jan-2016 01-Nov-2020 01-Nov-2021 01-Nov-2021 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Business and collateral Yes/No No No No registries computerized in Nouadhibou and Nouakchott 01-Mar-2019 28-Jul-2021 01-Nov-2021 Comments (achievements against targets): Page 34 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion PPP policy framework Yes/No No Yes Yes adopted 07-Jan-2016 30-Jun-2017 01-Nov-2021 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Commercial viability studies Number 0.00 2.00 2.00 4.00 for PPP conducted 07-Jan-2016 01-Nov-2020 01-Nov-2021 01-Nov-2021 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Commitments by investors Number 1.00 5.00 5.00 3.00 and private partnerships signed 07-Jan-2016 01-Nov-2020 01-Nov-2021 01-Nov-2021 Comments (achievements against targets): Page 35 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) B. OUTPUTS BY COMPONENT Objective/Outcome 1. To support the development of a seafood cluster that promotes the sustainable management of fisheries in Nouadhibou 1. Investments generated from responsible investors Outcome Indicators 1. Strategic cluster framework documents (consistent with WARFP objective) adopted and published 2. Sustainable management practices enhanced Intermediate Results Indicators 3. Entities reporting improved performance (for example, improvements in business strategy, access to market, or revenue generation) Key Outputs by Component 1. PCH strategy developed (linked to the achievement of the 2. Training conducted for SMEs and entrepreneurs Objective/Outcome 1) Page 36 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Objective/Outcome 2: To support the development of a seafood cluster that creates value for communities in Nouadhibou. 1. Fresh fish exports Outcome Indicators 2. Direct project beneficiaries / female beneficiaries 1. Tripartite PPD stakeholders (public, private, and civil society) reporting satisfaction with their involvement in the design and implementation of the cluster strategy 2. Cold storage capacity for fish products built Intermediate Results Indicators 3. Landing infrastructure facilities for improved traceability of fish products built 4. Client days of training provided (number) / female 5. Women-led MSMEs in Nouadhibou 1. Seafood Cluster PPD Taskforce established Key Outputs by Component 2. Training conducted for local actors (Linked to the achievement of the Objective/Outcome 3) 3. Refrigerated warehouse constructed 4. Two pumping stations built Objective/Outcome 3. To improve the business environment to boost private sector development in Mauritania Outcome Indicators 1. Enhanced collateral and business registry 1. Investment climate reforms implemented 2. Business and collateral registries computerized in Nouadhibou and Nouakchott Intermediate Results Indicators 3. PPP policy framework adopted 4. Commercial viability studies for PPP conducted 5. Commitments by investors and private partnerships signed 1. PPP framework adopted Key Outputs by Component 2. Four commercial viability studies (Linked to the achievement of the 3. Eleven investment climate reforms Objective/Outcome 3) 4. Judges received training in commercial justice Page 37 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Alexandre Hugo Laure, Peter Kristensen, Berengere P. Task Team Leader(s) C. Prince Moustapha Ould El Bechir Procurement Specialist(s) Fatou Fall Samba Financial Management Specialist Salamata Bal Social Specialist Chantal Andriamilamina Team Member Ramatou Magagi Team Member Ibou Diouf Team Member Siobhan McInerney-Lankford Counsel Aissatou Diallo Team Member Gilles Marie Veuillot Team Member Batouly Dieng Team Member Louis Jean Michel Desvaux De Marigny Team Member Olivier Hartmann Team Member Laurent Olivier Corthay Team Member Etienne Raffi Kechichian Peer Reviewer Xavier F. P. Vincent Peer Reviewer Julien Emmanuel Galant Team Member Matthieu Jean Simon Gilquin Team Member Birima Fall Team Member Page 38 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Steve Denis Jean Utterwulghe Team Member El Hadramy Oubeid Team Member Gilles Philippe Dominique Pasc Cols Team Member Mimako Kobayashi Team Member Mimako Kobayashi Team Member Anne Cecile Sophie Souhaid Team Member Gianluca Mele Team Member Emiliano Duch Navarro Peer Reviewer Lina Sawaqed Team Member Melissa C. Landesz Social Specialist Irene Marguerite Nnomo Ayinda-Mah Team Member Martin Maxwell Norman Team Member Supervision/ICR Cristina Navarrete Moreno Task Team Leader(s) Brahim Hamed Procurement Specialist(s) Angelo Donou Financial Management Specialist Samuel Ruben Alexander Garoni Procurement Team Mamadou Moustapha Ndoye Social Specialist Teslem Zein Team Member William Welsh Paterson Team Member Sophie Martine Olivia Wernert Team Member Ahmed Fall Environmental Specialist Faly Diallo Team Member David Theodore Anthonioz Team Member Irene Marguerite Nnomo Ayinda-Mah Procurement Team Julien Emmanuel Galant Team Member Page 39 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Philippe Ambrosi Team Member Laurent Olivier Corthay Team Member Maimouna Toure Procurement Team Ganna Musakova Team Member B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY15 13.353 107,817.39 FY16 33.668 556,520.10 FY17 1.487 18,647.36 FY18 0 289.33 FY20 0 362.95 Total 48.51 683,637.13 Supervision/ICR FY16 0 11,132.22 FY17 27.237 399,941.61 FY18 18.480 351,738.91 FY19 11.762 75,639.40 FY20 19.505 199,665.43 Total 76.98 1,038,117.57 Page 40 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) ANNEX 3. PROJECT COST BY COMPONENT Component/Sub-component Initial financing Additional Total Achievement (US$ million) financing (US$ million) rate (US$ million) 1. Develop a sustainable 5.97 1 6.97 84.5% fisheries sector in Nouadhibou 1.1. Promote a PPD to develop a • Support the Free Zone’s investment promotion strategy vision for a sustainable fisheries • Support a PPD platform pole in Nouadhibou and • Construct a PCH building (dropped) accelerate reforms at the • Operationalize eco-seafood cluster strategy-related infrastructure activities national level, encouraging its development • Provide technical assistance to the ANZF to support the operationalization of the PPP law in the Free Zone • Support a pre-feasibility study for PPP for the Deep Water Port Project 1.2. Encourage responsible • Support a responsible investment promotion strategy at the Free Zone investment in the Nouadhibou (under the investment promotion agency) fisheries cluster • Support a Seafood Taskforce • Promote adoption of better environmental, social, and governance practices at the ANZF • Research organizing the collection and disposal of used oils and lubricants in the cluster 2. Increase the value of fishery 3.28 3 6.28 48.3% and marketed products in the seafood cluster with the participation of local stakeholders 2.1. Improve the handling of • Construct a refrigerated warehouse at Nouadhibou International Airport landed catch and promote the • Construct a fish hall for cephalopods at EPBR for improving handling of export of fresh fish at the landed fish (dropped) Nouadhibou Seafood Cluster • Provide technical assistance to improve the operational efficiency of the EPBR and PAN landing sites and operationalize their extensions • Provide technical assistance to modernize trade services and regulations and increase fresh fish exports through ground transportation and procurement of pumping stations • Create an online one-stop shop (guichet unique) to facilitate fresh fish exports 2.2. Build the capacities of local • Manage and invest training to support the transition of private enterprises to suppliers and vulnerable groups the new fisheries management regime to capture greater benefits from productive and inclusive seafood Page 41 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) value chains • Provide technical assistance to help industries and institutions comply with internal product quality control procedures and acquire and retain important certifications • Build the capacity of local actors through training in reducing post-harvest losses and promote good fishing and management practices • Pilot a radio program (Radio Pêche) for fishing stakeholders in Mauritania (dropped) 3. Strengthen the investment NA 5 5 28.6% climate for private sector development 3.1. Improve the investment • Build physical infrastructure, such as the digitalization of the commercial climate registry or the renovation of the commercial tribunal building in Nouakchott, to address key business environment constraints • Support the establishment of a formal institutional framework to implement the investment climate agenda • Develop commercial justice chain management software; rehabilitate Commercial Justice building (dropped) • Digitalize central and local business and collateral registries in Nouakchott and Nouadhibou; hiring of a communications agency to support improving the business climate in Mauritania • Support a technical committee to support PPP 3.2 Support the • Implement PPP reforms; monitor and implement investment climate reforms operationalization of the • Develop investment promotion and communication initiatives to support government’s PPP agenda dialogue between public and private stakeholders • Revise the PPP law and related implementing decrees • Conduct a feasibility assessment and facilitate the execution of two or three pilot PPP projects • Provide technical assistance for PPP studies 4 Project management Page 42 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) ANNEX 4. EFFICIENCY ANALYSIS Summary 88. During project preparation, quantitative cost-benefit analysis was only conducted for Sub-component 2.1, because the refrigerated warehouse was not operational. The ERR was only calculated for Sub-component 2.1, originally estimated at US$2.155 million (or 24.7 percent of the original parent project funding). The economic analysis focused on monetary benefits, attributed to project interventions in the targeted value chains. The expected value of the project was based on the returns to the refrigerated warehouse for fish export at the Nouadhibou International Airport (Sub- component 2.1), through the increase in the value of seafood products and new revenue generated by the warehouse. 89. Project efficiency for infrastructure projects, including the warehouse and pumping stations, was low, since they were not completed by project close, and thus no outcomes could be linked to them. In addition, the fish hall construction was dropped. Quantitative analysis of economic impact was not conducted for the ICR, because the basis for the return on investment was not operational and therefore could have no impact on economic returns. Economic analysis at baseline 90. Economic analysis for the project was only conducted for Sub-component 2.1, which accounted for just under one quarter of the original parent project funding (approximately one eighth of total project funding, including additional funding). The calculations for the ERR were based on two groups of activities: (a) the construction and use of a refrigerated warehouse for fish export at the Nouadhibou International Airport (estimated cost of US$0.805 million), and (b) technical assistance for fish exports (estimated cost of US$0.45 million). 91. The refrigerated warehouse was conceived as a new income center under private management. Its revenue was projected at US$2.5 million over 15 years, with net present value of US$1.7 million (at a discount rate of 5 percent), and an internal rate of return of 9 percent. It was expected to increase ANZF tax revenue by US$20,000 and contribute US$200,000 in GDP growth. Initial consultations estimated that the warehouse would be completed in 2018 and would facilitate the export of 2,400 to 2,880 tons of fresh fish over a 15-year period while generating 25 percent in taxes on revenue. Technical assistance supported the development of a one-stop shop through which exporters could quickly and efficiently handle all export procedures. The combined ERR for these two groups of activities was estimated at 24.8 percent, at US$2.155 million net present value. Actual expenditures were about 5 percent higher, at US$1.06 million for the warehouse (including supervision costs) and US$1.16 million in consultancy fees, for a total of US$2.26 million. The economic analysis conducted for the project focused on monetary benefits, attributed to project interventions in the targeted value chains. The expected value of the project was based on the returns to the refrigerated warehouse for fish export at the Nouadhibou International Airport (Sub-component 2.1), through the increase in the value of seafood products produced and marketed and the revenue generated by the warehouse. Economic outcomes 92. Unfortunately, there were no economic returns to the refrigerated warehouse and one-stop shop combined. For these inputs, a quantitative financial and economic analysis of project impacts for the ICR was not feasible. The warehouse was only completed at project end and had not begun operating. The effect of technical assistance, in terms of increased revenue to stakeholders and other contributors, could not be assessed because the system had not yet come online. Page 43 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Attribution 93. Fresh fish exports increased significantly, from 2,770 tons in 2017 to 5,232 tons in 2021 (peaking at 8,146 tons in 2020) for a total of 29,097 tons from January 2016 to November 2021. However, these increases are not attributable to project activities. At the national level, no assessment was conducted at project end to measure the increased value of fisheries and state fish resources in Mauritania. This would have been done by comparing the volume of fish catch, average export price of octopus and other fish, octopus’ stock, and the number of domestic versus foreign fishing vessels against the scenarios described in the initial analysis prepared for the PAD (Annex 5. Detailed Economic and Financial Analysis). Increased commercial opportunities 94. Increased commercial opportunities available to the artisanal fisheries sector, especially women, was one of the key outcomes but was not measured. Training of beneficiaries, drawn from the artisanal fisheries sector, was described as useful by almost all 24 respondents surveyed after project close. The beneficiaries most valued the training because it improved the quality of landed catches. One beneficiary valued the trainings most for their contribution to business and strategy, while another valued its improvement of the transformation process. Almost half of respondents said the training had changed the way they work in terms of techniques and methods, attention to safety and hygiene, and identification of species. However, six months after the training was completed, only 4 out of 24 said it had contributed to their activity. Most female beneficiaries did not identify ways the training helped them specifically as women in the labor market. Sustainability 95. Although the two inputs were not measured, this does not mean they will have no effect. The refrigerated warehouse and the one-stop shop are under the purview of the ANZF, which is responsible for their operation, and their functioning and value-added will depend on this institution. Outstanding questions concern the likelihood of ANZF overseeing the warehouse, for which a PPP is planned, and managing the one-stop shop, and whether economic returns will be in line with projections. a) Refrigerated warehouse. Based on the assessment of the project activities and the ANZF, the likelihood of the warehouse generating expected returns in the future is rated as Substantial. That is, its sustainability as a going concern now that the project has closed is positive. This is based on the expectation that the warehouse will be run by the private sector, which is incentivized to generate high returns. At the same time, to the extent that the warehouse relies on the ANZF as the public partner, returns may be lower than projected by consultant estimates, mitigating a higher rating. According to feedback from numerous stakeholders, the ANZF has relatively low interest in supporting the private sector and suffers from heavy bureaucracy and high turnover. The warehouse not being operational almost six months after project close further underscores this assessment. b) One-stop shop. The expected sustainability of the one-stop shop is low. This assessment is based on the position of the ANZF outlined above. There is a significant risk that the one-stop shop will not begin operations and that if it does, it will not function as intended or be used by export firms, who are its target population. Page 44 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS The following presents the Borrower’s comments to the Bank’s ICR and a summary of the Borrower’s ICR Borrower’s comments to Bank’s ICR. We thank you for the quality of the report. Given the nature of certain difficulties identified at the level of the report, we believe that in view of the context of implementation particularly marked by: 1. A health situation of extreme complexity and unprecedented gravity. For a year and six months, the project lived to the rhythm of the closures of the land and air borders between the cities and an emergency situation which prevented the regrouping of people. 2. Institutional instability at the level of project supervision which saw the appointment of two Presidents and three Secretaries General and institutional instability of the project beneficiary structures and focal points. In addition to the above, we highlight the results obtained with the achievement of 11 out of 17 indicators. We want thus to propose upgrading the project's rating from moderately unsatisfactory to moderately satisfactory. Summary of Borrower’s ICR. Project’s key achievements and impact 96. As part of its implementation, the project was able to carry out several important and varied activities for the benefit of its beneficiaries. The main activities include those listed below. Component 1. Develop a sustainable seafood cluster in Nouadhibou • Realization and operationalization of the development strategy of the Fisheries Competitiveness Cluster. • Realization of the study of pre-feasibility and commercial viability of the future Deep Water Port of Nouadhibou. • Updating of the pre-feasibility and commercial viability studies of the future Deep Water Port of Nouadhibou and development of preparatory studies for its realization in PPP prior assessment and budgetary sustainability. Organization of market sourcing to survey and raise awareness among operators who experienced the participation of a dozen international private investors. • Completion of the pre-feasibility and commercial viability study of the new Nouadhibou International Airport. • Establishment of an investor tracking system. The project funded the development and implementation of computer software to monitor investors in the Free Zone and enable the collection of relevant information. • Establishment of a working group on fishery products, called the Seafood Taskforce, a tripartite composed of representatives of the public sector, private sector, and civil society. • Doing Business investment climate reforms that led to a significant improvement in the country's ranking in 2016, 2017, and 2018. Page 45 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) • Support for the implementation of the first alternative settlement mechanism for commercial disputes, through capacity building of the International Centre for Mediation and Arbitration of Mauritania (CIMAM) and the Regulatory Centre of the Free Zone of Nouadhibou (CRZF). • Establishment and operationalization of the first legal and institutional framework for PPPs in Mauritania, through Law 2017-006 and its implementing texts. Thus, an important operation was carried out and others are being prepared. • Support for the investment promotion strategy of the Free Zone by financing the first two editions of the Invest in Nouadhibou Forum. • Financing and organization of the first Entrepreneurship Marathon in Mauritania. • Support for the operationalization of the investment promotion agency in Mauritania. Component 2. Increase the value of seafood products produced and marketed in the seafood cluster with the participation of local actors • Construction of a cold store at Nouadhibou International Airport to boost fresh fish exports. • Supply and installation of two fish pumping stations at the PAN and EPBR ports to improve the quality and traceability of fishery resources. • Vocational training and capacity building of economic operators in Nouadhibou fisheries for the benefit of more than 1,300 actors, including 800 women. • Execution of a rich program of knowledge exchange and capacity building of actors in the fisheries sector, through: management and organization of a study tour for 12 people from the public and private sectors and civil society in Namibia to familiarize stakeholders with the sustainable management of fisheries resources; and introduction of higher value-added activities and quality standards. The results and lessons learned from the study tour were disseminated in the framework of a restitution workshop organized in Nouadhibou. • Seven-person knowledge exchange mission to Busan, South Korea, to study the Korean experience in eco-industrial parks and fish hubs. • Support and organization of study tours for public and private sector actors within the framework of the Brussels Seafood Forum. • Support and organization of the participation of a delegation of actors from the public and private sectors at the Halieutis fair in Agadir to prepare the implementation of a “Made In Nouadhibou” label. • Organization of several workshops on certifications, standards, and quality in the fisheries sector. • Development and deployment of a promotion and communication strategy for the Nouadhibou Free Zone. Component 3. Strengthen the investment climate for private sector development • Revision of the PPP law and its implementing texts with a view to adapting it to the new context and broadening its national scope, in particular to the Nouadhibou Free Zone, which was excluded. • Development of the information system for the management of the chain of commercial justice and the training of actors, including computer equipment and furniture for the benefit of commercial registers in Nouakchott, Nouadhibou, and commercial chambers of all regional delegations. Technical assistance to the Ministry of Justice in commercial justice matters. Realization of the integrated information system for the benefit of Nouakchott's one-stop shop. • Support for the establishment, operationalization, and functioning of the PPP Unit of the Ministry of the Economy. • Technical assistance to update the feasibility studies, evaluation, and budgetary sustainability of two PPP pilot projects: social housing in Nouakchott and wastewater treatment in the Nouadhibou Page 46 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) fisheries competitiveness cluster. 97. The most important impact of the project will be: a) An operational ANZF with strengthened capacities, which is the main reason for the creation of the project and its anchoring within this institution. This was done through the preparation and launch of the main structuring projects of the Free Zone, which are the development and establishment of a fisheries competitiveness cluster; the demonstration, after study, of technical pre-feasibility and commercial viability of the deep sea port project in Nouadhibou; more recently, the updating of these studies with a view to preparing the launch of the PPP project; and finally, the realization of the study of technical pre-feasibility and commercial viability of the future international airport of Nouadhibou. In addition, the definition and implementation of important training and capacity building programs for economic actors in the Free Zone for sustainable exploitation of the resource, as well as the launch of the foundations of its promotion and communication strategy. b) The first legal and institutional framework for PPPs in Mauritania developed and implemented, in response to the government's strategic direction to develop this mode of financing for development. c) A significantly improved business climate, allowing the country’s ranking to rise in this area for several years in a row. The maintenance of this trend will be secured, in particular through the support provided to the chain of commercial justice. d) The laying of the foundations for more incentives and an attractive system for investment in the country. Project performance 98. The overall disbursement of IDA financing for the project, as of October 31, 2021, stands at US$8,245,512.1 out of US$15,750,000 of the combined initial and additional financing, that is, 52.4 percent, to which will be added the US$2,206,462.9 committed to activities received or in the process of being received and to be disbursed during the grace period. This will result in a final disbursement rate of 66.4 percent. 99. The main observation is that the disbursement of the project mainly suffered from: the low level of mobilization of counterpart funds and additional funding due to the lack of time allocated to the extension in proportion to the volume of financing; the blockages of procurement; and the consequences of the COVID-19 crisis, which led to a virtual halt in the project’s execution. 100. However, at 66.4 percent, the level of disbursement of the project is well above the average of the World Bank's portfolio in Mauritania and even higher than the national portfolio of projects on external financing, which is 43 percent, all donors combined. 101. In addition, the implementation context of this project was characterized by: a decentralization in Nouadhibou, far from the support services of the World Bank; the counters of the Central Bank, which managed its accounts in foreign currency (the branch in Nouadhibou did not issue any), and the Public Treasury, where the counterpart funds were housed at a time when the Rachad system was not yet deployed in Nouadhibou; and the bottlenecks of the procurement and control commissions to which it belonged. 102. The M&E of progress toward the achievement of the project’s development objective was subject to regular reviews by the donor on the basis of reports produced by the PIU, using data collected from the beneficiaries and stakeholders of the project, including the ANZF; Ministries of Economy, Finance and Fisheries; Central Bank; Mauritanian Institute for Oceanographic and Fisheries Research; National Inspection Agency; EPBR and PAN ports; and some private Page 47 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) actors. However, it seems that this collection, which was to be coordinated by the ANZF, encountered methodological difficulties and did not always allow the desired results to be achieved within the required time frame. 103. Overall, project indicators have been reached at 60 percent. This review highlights a level of performance that is more than average but below expectations, because it is weighed down by the performance of Component 3, which linked to additional funding and whose indicators have not reached their targets. But this is not surprising, since much of this component’s activities lacked funding due to the unavailability of counterpart funds that supported them, never got out of the procurement bottleneck, or finally, were abandoned. Project implementation 104. As a cooperation operation between the government of Mauritania and the World Bank, the project was prepared, negotiated, and implemented in an environment and by actors whose interactions, level of accountability, and performance could only influence this implementation. The objective of this section is to describe these interactions and assess their impact on the implementation of the project and its performance. 105. Government role. The project benefited, within the framework of the implementation and throughout it, from the support and accompaniment of the government. The government was involved in the preparation phase and conducted the negotiations of the project in an inclusive and diligent manner. This made it possible to shorten the preparation phase and move quickly into project implementation. The ANZF, the project's supervisory administration, fully supported it and gave administrative, technical, and financial support. It facilitated the integration of the PIU into its membership and mobilized all its services in favor of project implementation. 106. However, this commitment has not been constant and may, at times, have been lacking, particularly on important issues. Matching funds, which were supposed to amount to US$1.5 million for initial funding and US$1 million for additional funding, were never available at the agreed level and time. In the end, only 18.3 percent were mobilized. This unbalanced the project’s operation, leading to the abandonment of 13 additional funding activities and jeopardizing the achievement of 4 indicators, including a result indicator. Repeated blockages of the public procurement commission, particularly in 2020, wasted valuable time on project implementation at a crucial time, and will have been largely responsible for implementation delays and the abandonment of important project activities. Lack of ownership and support of certain stakeholders for their activities within the project caused several changes to the project’s action plan and led to many delays. These points counted in the deterioration of the project's performance. In addition, the multiple institutional and approach changes among key stakeholders wasted time and led to an unnecessary disruption of the pace of implementation for a few months. 107. World Bank role. The World Bank spared no effort to ensure the successful preparation and implementation of the project, starting with the rapid implementation of its financing, in the form of a grant, and the release of an advance to facilitate its preparation. It also mobilized very early a multidisciplinary preparation team composed of motivated professionals who develop the project quickly and set up at the right time to capitalize on the achievements of its previous operation in favor of the private sector and the business climate in Mauritania, the BEEP. The constant commitment and availability of the successive task team leaders of the project were also decisive in the success of its implementation, undoubtedly facilitated by the World Bank’s decision to base them in the sub-region and finally in Nouakchott, thus allowing a fluid and regular interaction between the different teams, which benefited implementation. 108. The investment of the World Bank and its recognition of the interest of the project and its coherence with its commitments in Mauritania were again confirmed through additional funding. This new funding was intended to deepen Page 48 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) the reforms launched and begin implementation of the main recommendations of the development strategy of the PCH, to strengthen Mauritania's positioning in terms of business climate and to increase investment, particularly through the PPP. Its implementation was compromised by the lack of time initially allocated to it, which was also lost due to COVID- 19. 109. However, greater involvement of stakeholders in the preparation phase of this additional funding, and of the project more generally, would have allowed for more buy-in and ownership, which in turn would have avoided certain delays, led to more speed in implementation, and facilitated the measurement of impact (targets of the results framework). Similarly, the limitation of the extension of the project to a single year, on the occasion of the introduction of the additional funding, may have been marked by excessive optimism and confidence in the stability of the implementation environment, which multiple institutional changes and the COVID-19 crisis shattered. As a corrective measure, an additional extension could have been granted to the project to compensate for the time lost due to COVID- 19. 110. Project Coordination Unit role. The Project Coordination Unit assumed operational and fiduciary responsibility for project implementation and coordination with all stakeholders, in Nouadhibou and Nouakchott. It is anchored within the ANZF and based in this city. This project decentralization, if it brought it closer to the supervision and beneficiaries of the majority of the activities, also distanced it from other stakeholders and from the services and facilities available in Nouakchott, in particular those offered by the World Bank. The result has been a waste of time and energy compared to other projects, a dispersion of resources and, in particular, a difficulty in access to the World Bank's online support systems, including ClientConnection and STEP used in the fiduciary management of operations. 111. Finally, the team found itself, a few months before the project’s closure, stripped of two key staff. The administrative and financial manager and the procurement officer left for other projects at a time when their presence was more necessary than ever. The deadlines no longer allowed their replacements. Main constraints to implementation 112. In summary, the constraints to project implementation were multiple and varied: • Lack of alignment between the main stakeholders in implementation. • Difficulties arising from the relocation of the project to Nouadhibou. • Low support and responsiveness of the beneficiary administrations of the project. • Weak professional and technical capacity of procurement structures. • Unavailability of government counterpart funds that unbalanced the implementation. • Distance from the supervision of the World Bank, especially since the COVID-19 crisis. • Inadequacy of the extension granted to the project on the occasion of the restructuring, by only 50 percent of the initial duration, even though the volume of funding doubled and the beneficiaries increased. • Departure of the project’s fiduciary experts and subsequently the accountant, at a time when the workload was increasing significantly due to the approach of closure. They were not replaced. • Weak connectivity from Nouadhibou, making it uncertain to access the World Bank’s online systems. • Consequences, global and specific, of COVID-19, which disrupted interactions between the project teams on the one hand, and between the project teams and other implementation actors on the other hand: administrations, beneficiaries, consultants, and service providers. Failure to consider the total paralysis of activities that resulted, over more than a year, factored in the actual duration of the project. Key lessons learned Page 49 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) 113. The examination of the implementation environment described above, and the interaction of different actors and stakeholders in project implementation, shows that this has not been facilitated—either by its imprecise design, the general environment not always being favorable, or the fluctuating circumstances of its implementation. Thus, several principles were essential to the success of this implementation. These issues, which at different levels may not have received the importance they deserved, include: (a) a concept reconciling flexibility and precision; (b) the formulation of objectives and distribution of components taking into account the real needs and capacities of beneficiaries and actors; (c) the clarity of the result framework and indicators and their measurability; (d) the permanent mobilization of various actors and their level of commitment; (e) compliance with the parties’ commitments to each other; (f) building and strengthening the capacity of executing agencies, particularly in procurement; (g) the stability of the project team to avoid unnecessary overload or loss of time; (h) the organization of close monitoring missions; (i) the existence of review mechanisms to deal with unforeseen situations; and (j) the maintenance of a high level of dialogue and mutual intelligence between all stakeholders. 114. Despite these findings, the project has been able to carry out important structuring actions, whose continuation and sustainability should remain at the heart of the concerns of the public authorities. This is the case for the main structuring projects of the free zones (development strategy of the fisheries competitiveness cluster, deep water port projects, and Nouadhibou International Airport); the new legal and institutional framework for PPPs that remains to be established and operationalized, and the recent progress on the business climate that remains to be consolidated. The project also made it possible to create a dynamic of consultation and collaboration between institutions which, even if they remain different and geographically dispersed, must be able to work toward the definition and achievement of common development objectives. This dynamic must be maintained and strengthened. Page 50 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) ANNEX 6. SUPPORTING DOCUMENTS - REVISIONS TO INDICATORS PDO Indicators AF Revisions Investments generated from responsible investors (amount in End target increased from US$80 million to US$100 million US$) Fresh fish export (metric tons per year) End target increased from 2,600 tons to 5,600 tons Direct project beneficiaries (number) No change - Female beneficiaries (percentage Transaction requests increased from an enhanced Collateral New indicator and Business Registry (number) Intermediate Results Indicators AF Revisions Component 1. Develop a sustainable seafood cluster in Revised Nouadhibou Strategic cluster framework documents (consistent with Final target revised from “2” to “Yes” WARFP program objective) adopted and published (Yes/No) Tripartite PPD stakeholders (public, private, and civil society) Moved from Component 1 to 3 reporting satisfaction with their involvement in the design and implementation of the cluster strategy (Percentage) Sustainable management practices enhanced (number) New indicator Component 2. Increase the value of seafood products produced and marketed in the seafood cluster with the participation of local actors Cold storage capacity for fish products built (metric ton) Annual target moved from year 3 to year 5 Landing infrastructure facilities for improved traceability of New indicator fish products built (number) Client days of training provided (number) (number) Intermediate annual targets revised; end target kept Client days of training provided - Female (number) (number) End target revised from 1,225 to 1,500 Entities reporting improved performance (for example, No change improvements in business strategy, access to market, or revenue generation) (number) Women-led MSMEs in Nouadhibou (percentage) New indicator Component 3. Strengthen the investment climate for private New component sector development (Action: This Component is New) Investment climate reforms implemented (number) End target increased from 3 to 10 Business and collateral registries computerized in Nouadhibou New indicator and Nouakchott (Yes/No) PPP policy framework adopted (Yes/No) Indicator moved from Component 1 to 3 Commercial viability studies for PPP conducted (number) Indicator moved from Component 1 to 3 Commitments by investors and private partnerships signed Indicator moved from Component 1 to 3 (number) Page 51 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) ANNEX 7. SUPPORTING DOCUMENTS - PLANNED AND ACTUAL ACHIEVEMENTS OF PROJECT RESULTS INDICATORS PDO-level 2015 2016 2017 2018 2019 2020 2021 Cumulative Indicator name Investments generated from Target 20 20 40 60 80 100 NA responsible investors (US$ million) Actual 0 47.2 60.5 62.5 189.1 198.7 216.7 NA Fresh fish export (tons/year) Target 1000 1800 3400 4000 5600 5600 21400 Actual 936 2779 7086 5854 8146 5232 29097 Direct project beneficiaries Target 100 300 1500 3000 6000 6000 6000 (number) Actual 0 356 746 771 843 920 2471 2471 Female beneficiaries (%) Target 15 20 20 25 30 30 NA Actual 0 6.00 11.00 11.00 11.00 11.00 38.00 NA Transaction requests Target NA NA NA NA NA 1000 1000 increased from an enhanced Collateral and Business Registry (number) Actual NA NA NA NA NA NA 0 0 Intermediate Results Indicators Component 1: Develop a sustainable seafood cluster in Nouadhibou Strategic cluster framework Target No Yes Yes Yes Yes Yes Yes documents (consistent with WARFP program objective) adopted and published (Yes/No) Actual 0 0 Yes Yes Yes Yes Yes Yes Tripartite PPD stakeholders Target 30 40 50 70 NA (public, private, civil society) 60.0 70.0 reporting satisfaction with their involvement in the design and implementation of the cluster strategy (%) Actual 0 33 0 57 0 0 57 NA Sustainable management Target 0 0 3 3 practices enhanced (number) Actual 0 0 0 0 0 Component 2. Increase the value of seafood products produced and marketed in the seafood cluster with the participation of local actors Cold storage capacity for fish Target 30 30 30 products built (metric ton) Actual 0 30 30 Page 52 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Landing infrastructure Target 3 3 facilities for improved traceability of fish products built (number) Actual 2 2 Client days of training Target 200 400 1200 2000 3000 3500 3500 provided (number) (number) Actual 0 990 416 183 375 390 41407 41407 Client days of training Target 75 250 625 975 1225 1500 1500 provided - Female (number) Actual 0 32 113 6 40 57 26603 26603 Entities reporting improved Target 0 1 2 4 5 5 5 performance (for example, improvements in business strategy, access to market, or revenue generation) (number) Actual 0 0 0 0 0 0 0 0 Women-led MSMEs in Target 0 0 0 0 0 10 10 Nouadhibou (percentage) Actual 0 0 0 0 0 0 0 0 Component 3. Strengthen the investment climate for private sector development (Action: This Component is New) Investment climate reforms Target 0 1 2 2 5 10 10 implemented (number) Actual 4 5 3 8 6 11 11 Business and collateral Target 0 No No Yes Yes registries computerized in Nouadhibou and Nouakchott (Yes/No) Actual 0 No No No No PPP policy framework Target 0 Yes Yes Yes Yes Yes Yes adopted (Yes/No) Actual 0 Yes Yes Yes Yes Yes Yes Commercial viability studies Target 1 1 2 2 2 2 2 for PPP conducted (number) Actual 0 2 2 2 2 2 2 4 Commitments by investors Target 0 1 2 3 4 5 5 and private partnerships signed (number) Actual 0 0 0 2 0 0 3 3 Page 53 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) ANNEX 8. SUPPORTING DOCUMENTS - TRUST FUNDS USED DURING PROJECT PREPARATION AND IMPLEMENTATION World Bank Trust Funds Trust Fund Name Objective Duration Amount (US$) Investment-Enabling • Support the parent project PDO as it will support the September 81,620 Environment in government of Mauritania in improving the business 2020– Arica, Caribbean and environment to boost private sector development. September Pacific Countries • Support the government in raising awareness and building 2021 (IEE-ACP)Rapid the capacity of public and private actors on the revised Response Mauritania insolvency framework to facilitate the practice of insolvency (TF0B4082) procedures. Fostering women and • Implement inclusion activities initiated under the NESC April 191,459.26 vulnerable economic Project to expand local populations’ productivity, generate 2019– operators’ engagement private investment, and create links with the formal December in the Nouadhibou Free economy, thereby enhancing the resilience and economic 2020 Zone (CIIP Phase opportunities of targeted households. 2, TF0B0235) • Deliver two supporting activities: (a) gender-targeted activities—basic training in micro-entrepreneurship and organizational capacity and personal Initiative training for women economic operators in the Nouadhibou Free Zone, and (b) Component 2: Pilot Community Radio. Mauritania - NESC • Attract private investments and create jobs through the May 443,534.79 Cluster (CIIP Phase 1, establishment of an eco-seafood competitive cluster and 2015– TF0A0279) support of SMEs servicing it. This PDO will be achieved March through the following instruments and using the full menu 2018 of integrated solutions: Nouadhibou Bay/Free Zone as a Growth Pole for Mauritania, Fresh Fish Value Chain, Green/Competitive/Logistics Cluster, Integration Zone-City. • Support: technical assistance for the creation of a privately operated eco-seafood competitive cluster in Nouadhibou bay with the required amount of PPP; catalytic support to firms, particularly youth- and women-led local MSMEs, with targeted business development services, technical trainings, and technical assistance to MSME program design; and active support to the establishment of strong and sustained competitive industries PPDs in Mauritania at local and industry levels. Mauritania - • Build a strong PPP program along with a solid institutional May 401,307.72 Development of policy arrangement to drive the PPP agenda in Mauritania. 2016– and institutional • Focus on: (a) setting up the PPP national institutional December mechanisms for PPP and framework, (b) creating consensus among stakeholders and 2017 identification of viable decision makers around the PPP concept and strategy, and PPP projects (PPIAF, (c) preparing the country for PPP transaction by a strong Phase 2, TF0A2677) hand holding for a short period of time Page 54 of 55 The World Bank Nouadhibou Eco-Seafood Cluster Project (P151058) Mauritania - • Undertake a rapid assessment of Mauritania’s legal and October 304,109.59 Assessment of the PPP- regulatory environment for implementing PPPs and provide 2014– enabling environment recommendations. November and development of PPP • Provide institutional capacity building on PPPs through a 2015 pipeline (PPIAF, Phase 1, training workshop with government staff. TF018416) • Undertake a preliminary assessment of potential infrastructure PPP projects. • Develop a pipeline of feasible PPP projects, including recommendations on sequencing and the required actions to strengthen the enabling environment. TOTAL 1,422,031 IFC Advisory Services Trust Fund Name Objective Duration Amount (US$) Green Nouadhibou • Achieve increased eco-efficiency and private sector September 990,000 (#600598) competitiveness in the fisheries sector in Nouadhibou 2015– with two main objectives: (a) promote a regulatory December environment in Nouadhibou that will stimulate and 2018 incentivize green technology and eco-efficient production methods in the economic zone and seafood cluster; and (b) encourage firms to undertake needed reforms to achieve improved production efficiency. Mauritania Investment • Improve the business environment and strengthen October 1,391,000 Climate (#60222) entrepreneurship to pave the way for increased private 2017– investment and better women and youth jobs in March Mauritania. 2021 • Aim to: (a) improve the business environment by strengthening the legal and regulatory framework for property rights; improving the effectiveness, quality, and transparency of commercial justice; and improving procedures to trade across borders; (b) foster private sector development and inclusion by supporting inclusive MSMEs and entrepreneurship development; fostering PPD on key private sector issues; and raising awareness and understanding of entrepreneurship and inclusion of women and youth in businesses. TOTAL 2,381,000 Page 55 of 55