The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Nepal Livestock Sector Innovation Project (P156797) SOUTH ASIA | Nepal | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 9 | ARCHIVED on 24-Feb-2021 | ISR45411 | Implementing Agencies: Government of Nepal, Ministry of Agriculture and Livestock Development Key Dates Key Project Dates Bank Approval Date: 07-Dec-2017 Effectiveness Date: 28-Feb-2018 Planned Mid Term Review Date: 15-Jun-2021 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2023 Revised Closing Date: 30-Jun-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objectives (PDO) are to increase productivity, enhance value addition, and improve climate resilience of smallholder farms and agro-enterprises in selected livestock value-chains in Nepal. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component E: Contingency Emergency Response Component Component A: Strengthening Critical regulatory and Institutional Capacity:(Cost $5.00 M) Component B: Promoting sector innovation and modernizing service delivery:(Cost $40.00 M) Component C: Promoting Smallholder Inclusive Value Chains for Selected Livestock Commodities:(Cost $30.00 M) Component D: Project Management and Knowledge Generation:(Cost $5.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Out of eleven actions agreed to in the last review in July 2020, the project had accomplished six: (a) submission of model documents in compliance with safeguard requirements, (b) submission of list of construction activities to be financed, (c) quarterly monitoring of field activities, (d) training on monitoring and evaluation (M&E) and project management information system (PMIS) at the cluster office level, (e) assessment of implementation capacity of Province 4 for livestock information management system (LIMS), and (f) development of a flyer for clean milk production under food safety. Activities that have bearing on the Project Development Objective (PDO), such as the initiation of a master plan for the livestock sector, call for proposals from the private entrepreneurs, and completion and running of LIMS, remain outstanding besides the submission of request from the 2/24/2021 Page 1 of 8 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Government to the World Bank for project restructuring. The ratings for both the PDO and Implementation Progress (IP) are rated Moderately Unsatisfactory. Under component A the laboratory quality manual, laboratory protocol, standard operating procedure for Veterinary Standard and Drug Regulation Laboratory (VSDRL) and the Strategy for the Development of a Livestock Information Management System and Information and Communication Technologies Platform (LIMS ICT) have been completed and cleared by the Department of Livestock Services (DLS). On formulation of the Infectious Disease Act, a concept note has been prepared and submitted to MoALD for Cabinet approval following which work will begin. The Animal Nutrition Strategy and Strategy on Animal Identification and Traceability are still under review by the DLS following which they will be submitted to MoALD for review and approval from the Cabinet. The road map for peste des petits ruminants (PPR) is prepared, but this has to be integrated into PPR Control Strategy, which is still under preparation by the DLS, and to be completed by March 31, 2021, while the road map for FMD is aligned with the risk-based strategic plan of foot and mouth disease (FMD) is submitted to MoALD. The animal breeding policy, animal breeding strategy, and Animal Health Policy have already been reviewed by the DLS and MoALD but are now being sent to the provincial government for review and inputs. One Health Action Plan and Emergency Preparedness Plan for the prevention and control of zoonoses, emerging infectious diseases (EIDs), and transboundary animal diseases (TADs) are still work in progress Component B: Of the 25 construction works that were initiated, 9 have been completed, 5 are under 80 percent completion status, 9 between 40 and 80 percent completion status, and 2 under 40 percent completed. All these construction works reportedly will be completed by June 2021. Under the disease control program, the project vaccinated 1.56 million heads of small ruminants against PPR and 509,000 large animals against FMD, bringing the cumulative total, respectively, to 15.1 and 2.3 million small ruminants and cattle since the inception of the project. To support the vaccination program and strengthen the supply chain, the project built 21 cold rooms of various sizes, provided refrigerators and cool boxes, and supplied the veterinary laboratories with tools and equipment essential for service delivery. The project has prepared a work plan for a pedigree performance recording system (PPRS) for cattle and buffaloes and performance recording system (PRS) for Boer goats. Eight forage nurseries were established and four silage making machines were procured and provided to cooperatives in Chitwan, Pokhara, and Morang based on the recommendation of Decentralized Level Support Units (DLSUs) and the state-level coordination committee. Forage production was also promoted through seed distribution and contract farming. The project has supported numerous trainings, reaching out to a total of 1,285 staffs and service providers and 1,428 various members of the POs. Similarly, the project has supported and mobilized 837 POs (Dairy 378, Goat 415 and Chyangra 44) with 592 FGs and 245 Cooperatives engaging 67,300 members. In all these activities, the overall participation of women was 42 percent. It appears that the target of 3,000 ‘producer organizations/cooperatives newly established or formalized and offering an increased range of services to member’ will not be achieved. This is essentially related to the unforeseen administrative complexity of this task and the limitation on fieldwork due to COVID-19 control measures. The indicator will likely have to be revisited at the MTR. Component C: The project invited Project Concept Notes (PCNs) from cooperatives and farmer groups on June 10, 2020, and from producer associations in June 30, 2020. The project received 808 PCNs: 436 from farmers groups, 361 from cooperatives, and 11 from producer organizations. Of the 808 PCNs, 385 were for dairy value chain, 376 for goat value chain, and 47 for Pashmina value chain, which are being reviewed by the project team with the support from the Technical Service Provider (TA) and the business service provider – Nepal Agribusiness Innovation Center (NABIC). In addition, the project has completed business plan training in 26 out of 28 project districts, where 663 subproject proponents were trained. The mission was informed that although the project team has received a large number of technically viable proposals, securing financial assistance from banks and financial institutions (BFIs) might be a challenge for the farmer groups. The project team is in discussions with BFIs that have special windows to finance farmer groups, ensuring eligible applicants are able to secure 30 percent contribution to the business plan from a BFI. The project is yet to announce the third call for private entrepreneurs, the deadline of which has been rescheduled to end of January following the selection of the PCNs from the first two calls. It was reiterated that both the TA and NABIC need to (a) build the capacity of key project staff and stakeholders at all levels; support the preselected grant applicants in the preparation of bankable business plans; and prepare a well-articulated plan of action on how TA, NABIC, and PMU may accomplish these; (b) mentor the recipients throughout the implementation of business plans; and (c) ensure that the grant recipients have access to finances from the banks. It was also suggested that the project first screens technically and business viable proposals and then develop them into proposals which will help attract financing from the lending institutions. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating 2/24/2021 Page 2 of 8 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Political and Governance High Substantial High Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and High Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Substantial Substantial Other Moderate High Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Productivity of targeted livestock commodities (milk, goat meat, chyangra) among beneficiaries IN00951239 ►Percentage increase of average milk production per cow/buffalo (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 31-Jan-2018 15-Jun-2020 26-Jan-2021 30-Jun-2023 The baseline data will be available after finalization of baseline report by the end of January 2021 and progress data will be available by the end of June 2021 after conducting the first annual household Comments: survey following which the indicators will be assigned with values/achievements. IN00951276 ►Percentage increase in offtake rate expressed as carcass weight for goats (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 31-Jan-2018 15-Jun-2020 26-Jan-2021 30-Jun-2023 The baseline data will be available after finalization of baseline report by the end of January 2021 and progress data will be available by the end of June 2021 after conducting the first annual household Comments: survey following which the indicators will be assigned with values/achievements. IN00951278 ►Percentage increase in Chyangra wool production (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 2/24/2021 Page 3 of 8 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 Yr 1 (baseline) - 0; Yr 2 -10%; Yr 3 - 30%; Yr 4- 50%; Yr 5-80 The baseline data will be available after finalization of baseline report by the end of January 2021 and progress data will be available by the end of June 2021 after conducting the first annual household Comments: survey following which the indicators will be assigned with values/achievements. Increased sales of value added products in targeted value chains through increase in production IN00951238 ►Increased sales value in targeted value chains (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 The baseline data will be available after finalization of baseline report by the end of January 2021 and progress data will be available by the end of June 2021 after conducting the first annual household Comments: survey following which the indicators will be assigned with values/achievements. Farmers Adopting Climate Smart Agricultural Technology by target farmers IN00951240 ►Farmers adopting improved agricultural technology (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 14.75 75.00 Date 31-Jan-2018 15-Jun-2020 26-Jan-2021 30-Jun-2023 A total of 14,752 farmers have already benefited from improved technologies on improved Comments: agriculture. The annual household survey in June 2021 will provide an update. IN00951277 Farmers adopting improved agricultural technology - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 38.64 45.00 Farmers reached with agricultural assets or services IN00951279 ►Farmers reached with agricultural assets or services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 76.95 200.00 Date 31-Jan-2018 15-Jun-2020 26-Jan-2021 30-Jun-2023 IN00951280 2/24/2021 Page 4 of 8 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Farmers reached with agricultural assets or services - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 37.00 42.00 45.00 Overall Comments PDO Total number of farmers reached with assets/services till Dec 2020 was 76,946 out of which the number of women farmers was 32,144 (42%). Intermediate Results Indicators by Components Component A: Strengthening Critical regulatory and Institutional Capacity IN00951282 ►Livestock Master Plan updated and endorsed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 There has been delay on this activity pending government approval. Comments: IN00951285 ►Client days of training provided (of which female) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,952.00 4,596.00 5,500.00 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 IN00951288 ►Livestock Management Information System (LMIS) developed and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 It is now clear that the development of LIMS at the national level is a huge undertaking and not feasible with very low capacity at the central, provincial and local government levels plus lack of qualified human resources at all levels. Hence, it has been agreed that the project will develop prototype LIMS for State 4 Comments: (Gandaki) and if found to be useful, relevant and feasible within the prevailing institutional arrangement and resources the model will be adjusted and applied in the remaining states. Component B: Promoting sector innovation and modernizing service delivery IN00951283 2/24/2021 Page 5 of 8 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) ►Number of Producer Organizations/Cooperatives newly established or formalized and offering an increased range of services to members. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 491.00 835.00 3,000.00 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 Is a continuous activity. Comments: IN00951286 ►Incremental number of animals vaccinated against PPR and FMD through the project - PPR for small ruminants (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.30 2,065.00 9.60 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 Small ruminants against PPR is 1,556,000 heads while for FMD it is 509,000 thousand heads. Comments: IN00951289 ►Beneficiary satisfaction rate with relevance, timeliness and effectiveness of sercies provided by the project for the livestock sector (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 While baseline data on beneficiary will be entered by February 15, 2021 the figure will be updated in Comments: June/July 2021 after the household level survey is carried out. IN00951291 Of which Female (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 Component C: Promoting Smallholder Inclusive Value Chains for Selected Livestock Commodities IN00951281 ►Dialog platform between actors of the targeted value chains established and operational at district level (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 30.00 25.00 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 Stakeholder Platform has been approved by the Ministry of Agriculture and Livestock Development and Comments: has been operational from July 2019. IN00951284 2/24/2021 Page 6 of 8 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) ►Number of business plans financed by the project on a matching grant basis (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 500.00 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 A total of 808 proposals have been received by the project through two calls. The third call for proposal will be placed mid February 2021 targeted for private entrepreneurs. The first two were for farmer Comments: organizations and cooperatives. Out of the first two calls approximately 350 proposals will be financed while from the third call it would be 150 proposals making a total of 500 proposals. IN00951287 ►Share of project beneficiaries with a livestock risk insurance policy (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 Considerable effort needs to be done to collect information on this as well as in linking project farmers to insurance. The provision of information to farmers or linking them to insurance companies is to be Comments: provided to both direct and indirect beneficiaries and those interested to insure. Component D: Project Management and Knowledge Generation IN00951290 ►Grievances registered related to delivery of project benefits satisfactorily addressed. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 61.00 75.00 Date 03-Jul-2017 15-Jun-2020 26-Jan-2021 30-Jun-2023 Out of 37 grievances registered 32 were responded to. The rest are in the process of being addressed. Comments: Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156797 IDA-61490 Effective USD 80.00 80.00 0.00 8.85 72.49 11% Key Dates (by loan) 2/24/2021 Page 7 of 8 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156797 IDA-61490 Effective 07-Dec-2017 21-Jan-2018 28-Feb-2018 30-Jun-2023 30-Jun-2023 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 19-Dec-2018 ,Level 2 Approved on 19-May-2020 Related Project(s) There are no related projects. 2/24/2021 Page 8 of 8