Document of
The World Bank
Report No: ICR00003121
IMPLEMENTATION COMPLETION AND RESULTS REPORT
(IDA-H371, IDA-H390, IFAD COFN-C1110, EU-096043, SDC)
ON A
GRANT
IN THE AMOUNT OF XDR5.7 MILLION
(US$9 MILLION EQUIVALENT)
AND AN ADDITIONAL GRANT
IN THE AMOUNT OF XDR2.5 MILLION
(US$4 MILLION EQUIVALENT)
AND A GRANT
IN THE AMOUNT OF US$ 9 MILLION
AND AN ADDITIONAL GRANT
IN THE AMOUNT OF EUR 6.7 MILLION
(US$ 9.11 MILLION EQUIVALENT)
AND A GRANT
IN THE AMOUNT OF CHF 2.14 MILLION
(US$ 1.8 MILLION EQUIVALENT)
TO THE
KYRGYZ REPUBLIC
FOR AN
AGRICULTURAL INVESTMENTS AND SERVICES PROJECT
June 24, 2014
Sustainable Development Department
Central Asia Country Management Unit
Europe and Central Asia Region
CURRENCY EQUIVALENTS
(Exchange Rate Effective February 28, 2014)
Currency Unit = Som
KGS 1.00 = US$0.0196
US$1.00 = KGS 51.11
FISCAL YEAR
January 1–December 31
ABBREVIATIONS AND ACRONYMS
AO Ayil Okmotu – Village Government
AISP Agricultural Investments and Services Project
APIU Agricultural Projects Implementation Unit
ARIS Agency for Community Development and Investment
ASSP Agricultural Services Support Project
BCP Brucellosis Control Programme
CDS Country Development Strategy
CFCSF Community Food Crop Seeds Fund
CHF Swiss Frank
CPMP Community Pasture Management Plan
CSF Community Seed Fund
EA Environmental Assessment
EFA Economic and Financial Analysis
EMP Environmental Management Plan
ENPV Economic Net Present Value
EIRR Economic Internal Rate of Return
EU European Union
FFS Farmers Field School
FK Farmers Koshuun – Farmers Union
FM Financial Management
FMD Foot and Mouth Disease
FRF Food Crisis Rapid Response Facility
GDP Gross Domestic Product
GOK Government of Kyrgyzstan
IDA International Development Association
IFAD International Food and Agriculture Development Organization
ICR Implementation Completion Report
JCSS Joint Country Support Strategy
KAMIS Kyrgyz Agricultural Market Information Service
KGS Kyrgyz Som
KR Kyrgyz Republic
L&P Livestock and Pastures
LPRI Livestock and Pasture Research Institute
LSGB Local Self Governance Bodies
LSU Livestock Unit
i
MAWRPI Ministry of Agriculture, Water Resources and Processing Industry
MOAM Ministry of Agriculture and Melioration
MS Moderately Satisfactory
MTR Mid-Term Review
M&E Monitoring and Evaluation
NADIS National animal disease information system
OIE International Animal Health Organization
PAD Project Appraisal Document
PDO Project Development Objective
PMC Pasture Management Councils
PLMIP Pasture and Livestock Management Improvement Project
PUP Pasture Use Plan
PUU Pasture Users Union
RADIS Rayon animal disease information system
RAS Rural Advisory Service
RSU Rational Soil Use
SDC Swiss Development Cooperation Fund
SDR Special Drawing Rights
SMRF State Material Reserve Fund
SVD State Veterinary Department
TA Technical Assistance
TAIC Training, Advisory, and Innovation Center
TTL Task Team Leader
US$ United States dollar
WOP Without-Project
WP With-Project
Vice president: Laura Tuck
Country director: Saroj Kumar Jha
Sector manager: Dina Umali-Deininger
Project team leader: Peter Goodman
ICR primary author: Talimjan Urazov
ii
KYRGYZ REPUBLIC
Agricultural Investments and Services Project
CONTENTS
Data Sheet
A. Basic Information
B. Key Dates
C. Ratings Summary
D. Sector and Theme Codes
E. Bank Staff
F. Results Framework Analysis
G. Ratings of Project Performance in ISRs
H. Restructuring
I. Disbursement Graph
1. Project Context, Development Objectives, and Design .............................................. 1
2. Key Factors Affecting Implementation and Outcomes .............................................. 7
3. Assessment of Outcomes .......................................................................................... 13
4. Assessment of Risk to Development Outcome......................................................... 20
5. Assessment of Bank and Borrower Performance ..................................................... 20
6. Lessons Learned ....................................................................................................... 22
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 23
Annex 1. Project Costs and Financing .......................................................................... 24
Annex 2. Outputs by Component ................................................................................. 25
Annex 3. Economic and Financial Analysis ................................................................. 29
Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 36
Annex 5. Beneficiary Survey Results ........................................................................... 38
Annex 6. Stakeholder Workshop Report and Results................................................... 39
Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 40
Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 55
Annex 9. List of Supporting Documents ...................................................................... 56
MAP
iii
A. Basic Information
Agricultural Investments
Country: Kyrgyz Republic Project Name:
and Services Project
COFN-C1110,IDA-
Project ID: P096993 L/C/TF Number(s):
H3710,IDA-H3900
ICR Date: 06/24/2014 ICR Type: Core ICR
Lending Instrument: SIL Borrower: KYRGYZ REPUBLIC
Original Total
XDR 5.70M Disbursed Amount: XDR 8.20M
Commitment:
Revised Amount: XDR 8.20M
Environmental Category: B
Implementing Agencies:
Community Development and Investment Agency (ARIS)
Ministry of Agriculture and Melioration of Kyrgyz Republic
Cofinanciers and Other External Partners:
European Union (EU)
International Fund for Agriculture Development (IFAD)
Swiss Development Cooperation (SDC)
B. Key Dates
Revised / Actual
Process Date Process Original Date
Date(s)
Concept Review: 03/12/2007 Effectiveness: 08/22/2008 08/22/2008
08/22/2008
06/29/2010
Appraisal: 09/21/2007 Restructuring(s):
12/15/2011
04/04/2013
Approval: 04/29/2008 Mid-term Review: 05/16/2011 05/16/2011
Closing: 06/30/2013 06/30/2013
C. Ratings Summary
C.1 Performance Rating by ICR
Outcomes: Moderately Satisfactory
Risk to Development Outcome: Moderate
Bank Performance: Moderately Satisfactory
Borrower Performance: Moderately Satisfactory
C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)
Bank Ratings Borrower Ratings
Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory
iv
Implementing
Quality of Supervision: Moderately Satisfactory Satisfactory
Agency/Agencies:
Overall Bank Overall Borrower
Moderately Satisfactory Moderately Satisfactory
Performance: Performance:
C.3 Quality at Entry and Implementation Performance Indicators
Implementation QAG Assessments (if
Indicators Rating
Performance any)
Potential Problem Project Quality at Entry
No None
at any time (Yes/No): (QEA):
Problem Project at any time Quality of Supervision
No None
(Yes/No): (QSA):
DO rating before Moderately
Closing/Inactive status: Satisfactory
D. Sector and Theme Codes
Original Actual
Sector Code (as % of total Bank financing)
Agricultural extension and research 17 17
Animal production 29 29
Central government administration 26 26
Crops 28 28
Theme Code (as % of total Bank financing)
Other rural development 17 17
Participation and civic engagement 17 17
Rural policies and institutions 33 33
Rural services and infrastructure 33 33
E. Bank Staff
Positions At ICR At Approval
Vice President: Laura Tuck Shigeo Katsu
Country Director: Saroj Kumar Jha Annette Dixon
Sector Manager: Dina Umali-Deininger Juergen Voegele
Project Team Leader: Peter Goodman Brian G. Bedard
ICR Team Leader: Peter Goodman
ICR Primary Author: Talimjan Urazov
v
F. Results Framework Analysis
Project Development Objectives (from Project Appraisal Document)
The project objective is to improve the institutional and infrastructure environment for farmers
and herders, with a strong emphasis on the livestock sector. More specifically, the project will
increase farmers' productivity, particularly of livestock farmers in the project areas and reduce
animal diseases that have a public health impact (e.g., brucellosis). The project will provide
critical capital investments, strengthen key support services, deliver appropriate know-how, and
facilitate and support effective and sustainable management of the country's valuable pasture
resources. This would enable farmers and herders to improve the productivity, profitability and
sustainability of their enterprises and thereby help reduce poverty. Through its specific support
for a regionally focused demonstration program to control brucellosis, the project would in
addition contribute significantly to improved public health.
Revised Project Development Objectives (as approved by original approving authority)
The revised PDO is to improve the institutional and infrastructure environment for more
productive, profitable and sustainable livestock and crop production by pasture users and
smallholder farmers, as well as to reduce the economic impact of the zoonotic disease burden in
the human population.
(a) PDO Indicator(s)
Original Target Actual Value
Formally
Values (from Achieved at
Indicator Baseline Value Revised
approval Completion or
Target Values
documents) Target Years
Indicator 1 : Improved pasture infrastructure and quality
Value
quantitative or 0 350 - 454
Qualitative)
Date achieved 03/20/2008 04/30/2008 10/09/2010 04/01/2014
Comments
The figure indicates number of JCs that with improved infrastructure. This indicator
(incl. %
was dropped during 2010 restructuring. Target exceeded by 30%
achievement)
Indicator 2 : Expanded access to farm and livestock support services
Value
quantitative or 0 250 - 458
Qualitative)
Date achieved 03/20/2008 04/30/2008 10/09/2010 04/01/2014
Comments
The figure indicates number of FKs that provided services to farmers. This indicator
(incl. %
was dropped during 2010 restructuring. Target exceeded by 83%.
achievement)
Indicator 3 : Increased livestock productivity
85 lambs per 100 89 lambs per 100
Value 80 lambs per 100 ewes
ewes surviving to ewes surviving to age
quantitative or surviving to age 4 months;
age 4 months; 1935 4 months; 1960
Qualitative) 1800 liters/cow/lactation
liters/cow/lactation liters/cow/lactation
vi
Date achieved 03/20/2008 04/30/2008 04/01/2014
Comments This indicator is measured by the rate of lambs surviving to 4 months and milk yields.
(incl. % Target related to milk yields exceeded by 18.5 % and rate of lambs surviving to 4
achievement) months exceeded by 80%.
Indicator 4 : Improved food supply for poor households in the program area
Value
quantitative or 100 125 146
Qualitative)
Date achieved 03/20/2008 10/09/2010 04/01/2014
Comments
Indicator was introduced during 2010 restructuring. Data shows improvement of wheat
(incl. %
yields for 8650 members of CSF. Target exceeded by 84%.
achievement)
(b) Intermediate Outcome Indicator(s)
Original Target Actual Value
Formally
Values (from Achieved at
Indicator Baseline Value Revised Target
approval Completion or
Values
documents) Target Years
Revised legal framework reflected in Aiyl Okmotus (AO) having management authority
Indicator 1 :
for intermediate and distant pastures
Value
Legal framework Legal framework
(quantitative -
developed developed
or Qualitative)
Date achieved 03/20/2008 04/30/2008 04/01/2014
Comments
(incl. % Fully achieved
achievement)
Indicator 2 : Number of PUUs with functioning PMC established and fully operational
Value
(quantitative 0 400 454
or Qualitative)
Date achieved 03/20/2008 04/30/2008 04/01/2014
Comments
(incl. % Target exceeded by 13.5%.
achievement)
Indicator 3 : Number of CPMPs satisfactorily developed, implemented and enforced by PMCs
Value
(quantitative 0 400 400
or Qualitative)
Date achieved 03/20/2008 04/30/2008 04/01/2014
Comments
(incl. % Fully achieved
achievement)
Indicator 4 : Percentage of pasture improvement micro-projects satisfactorily maintained
Value
(quantitative 0 85 98
or Qualitative)
vii
Date achieved 03/20/2008 04/30/2008 12/31/2012
Comments
(incl. % Target exceeded by 15.3%.
achievement)
Indicator 5 : Number of FK contracting advisory services using own funds
Value
(quantitative 0 200 55
or Qualitative)
Date achieved 03/20/2008 04/30/2008 04/01/2014
Comments
(incl. % 27.5% achieved
achievement)
Indicator 6 : Percentage of Community Seed Banks stable or expanding
Value
(quantitative 0 80 74
or Qualitative)
Date achieved 03/20/2008 04/30/2008 04/01/2014
Comments
(incl. % 92.5% achieved
achievement)
Indicator 7 : Improved SVD ratings on OIE/PVS criteria
Value
The indicator
(quantitative 1 2 -
was re-worded.
or Qualitative)
Date achieved 03/20/2008 04/30/2008 10/09/2010 04/01/2014
Comments Revision of the rating was not done. This indicator was re-worded during 2010
(incl. % restructuring to specifically mention upgrade from level 1 to 2. Final rating is not
achievement) available.
Indicator 8 : Number of private veterinarians operating
Value
(quantitative 400 600 - 1708
or Qualitative)
Date achieved 03/20/2008 04/30/2008 10/09/2010 04/01/2014
Comments
(incl. % This indicator was dropped during 2010 restructuring. Target exceeded by 554%.
achievement)
Indicator 9 : Reduced prevalence of animal and human brucellosis
Value Cattle 1%; Sheep Cattle 0.26%; Sheep
Cattle 3%; Sheep 7%;
(quantitative 2.6%; Humans - 0.6%; Humans
Humans 2.5/1000
or Qualitative) 0.9/1000 0.24/1000
Date achieved 03/20/2008 04/30/2008 10/09/2010 04/01/2014
Comments
This indicator was slightly reworded during 2010 restructuring. Target for cattle, sheep,
(incl. %
and humans exceeded by 37%, 45% and 41.2% respectively.
achievement)
Coverage of vaccination programs for FMD, anthrax, rabies, brucellosis, PPR, Sheep
Indicator 10 : Pox, Echinococcus, and Tubercullosis increase to at least 80% of target animals by end
of year 2
Value 0 80 90
viii
(quantitative
or Qualitative)
Date achieved 10/09/2010 10/09/2010 04/01/2014
Comments
This indicator was introduced during 2010 restructuring. Target was fully achieved and
(incl. %
even exceeded for brucellosis by 20%.
achievement)
Increase in the condition score of livestock of target farmers of at least 0.5 points on a
Indicator 11 :
scale 1-5 by end of project
Value
(quantitative 0 0.5 -
or Qualitative)
Date achieved 10/09/2010 10/09/2010 04/01/2014
Comments
This indicator was introduced during 2010 restructuring but monitoring survey was not
(incl. %
undertaken. Final rating is not available.
achievement)
Timely and complete project status reports, satisfactory audits, and satisfactory
Indicator 12 :
supervision ratings
Value Moderately
Satisfactory
(quantitative - satisfactory rating
supervision ratings
or Qualitative) during the last ISR
Date achieved 03/20/2008 04/30/2008 04/01/2014
Comments
Almost achieved. MS rating at the last ISR was primarily due to concerns over future
(incl. %
operations of FKs
achievement)
Indicator 13 : Increased state grain storage capacity
Value
(quantitative
or Qualitative)
Date achieved
Comments This indicator was introduced during 2008 restructuring but dropped during 2010
(incl. % restructuring when the related activities were dropped from the project. No actual
achievement) measurement was made.
Indicator 14 : Increased yields of crops in targeted communities
Value
(quantitative
or Qualitative)
Date achieved
Comments This indicator was introduced during 2008 restructuring but dropped during 2010
(incl. % restructuring. Some monitoring was made and it did show increased yields in targeted
achievement) communities comparing to the country average.
G. Ratings of Project Performance in ISRs
Date ISR Actual Disbursements
No. DO IP
Archived (USD millions)
1 10/24/2008 Satisfactory Satisfactory 2.18
2 10/22/2009 Satisfactory Satisfactory 5.11
ix
3 04/28/2010 Satisfactory Satisfactory 6.16
4 02/16/2011 Satisfactory Satisfactory 8.66
5 11/09/2011 Satisfactory Moderately Satisfactory 11.85
6 03/23/2012 Satisfactory Moderately Satisfactory 12.51
7 10/24/2012 Moderately Satisfactory Moderately Satisfactory 12.64
8 01/29/2013 Moderately Satisfactory Moderately Satisfactory 12.71
9 06/29/2013 Moderately Satisfactory Moderately Satisfactory 12.71
H. Restructuring (if any)
ISR Ratings at Amount
Board
Restructuring Restructuring Disbursed at Reason for Restructuring & Key
Approved PDO
Date(s) Restructuring Changes Made
Change DO IP
in USD millions
A new component "Food Security"
08/22/2008 Y 0.00 was added and additional
financing approved
EU Grant financing was approved
06/29/2010 N S S 7.05 to strengthen livestock and
veterinary activities
Extension of EU TF Grant and
12/15/2011 S MS 12.11 reallocation of EU Grant funds
among categories
Reallocation of IDA Grant funds
04/04/2013 MS MS 12.71
among categories
If PDO and/or Key Outcome Targets were formally revised (approved by the original approving body)
enter ratings below:
Outcome Ratings
Against Original PDO/Targets Moderately Satisfactory
Against Formally Revised PDO/Targets Moderately Satisfactory
Overall (weighted) rating Moderately Satisfactory
x
I. Disbursement Profile
xi
1. Project Context, Development Objectives, and Design
1.1 Context at appraisal
1. At the time of project appraisal, agriculture contributed 34 percent of Kyrgyzstan’s
gross domestic product (GDP) and employed 39 percent of its economically active
population (2006). The agricultural sector remained a structural backbone of the national
economy and was critical for food security and consumer price stability. In spite of some decline
in the level of poverty in 2000-2006 countrywide the poverty remained high in the rural areas
where three quarters of the poor (1.8 million) and extreme poor live. Efforts to promote the
development of the agricultural sector had focused on establishing a market environment in
which growth is driven by private farms and agribusinesses, refocusing the government’s role on
policy formulation and regulatory functions, and establishing a basic array of essential support
services in the crop production sub-sector.
2. Among the key challenges facing Kyrgyz agriculture were the limited supply of
arable land and the unsatisfactory management of the extensive pasture resources. The
rural population remained heavily dependent on pastures since herding was the dominant
livelihood system, particularly beyond the major crop producing valleys. Further agricultural
growth and gains in rural incomes therefore depended greatly on the efficient use of this
resource. Yet pasture conditions have deteriorated significantly during the recent past. A key
problem was the fragmentation of administrative control over pastures among three
administrative layers – oblast, rayon and village. This was compounded by inconsistencies
within the legal framework governing pasture management. This was leading to pasture
degradation, undermining confidence in local government and creating conflicts over pasture
access.
3. Livestock production has always been a critical element of the agricultural sector in
the Kyrgyz Republic. Much progress had been made in establishing an institutional environment
conducive to the new production system and market economy but a largely unfinished agenda
remained in the livestock sector. The main constraints that needed to be addressed were
inadequate animal nutrition and poor animal health. Major diseases such as brucellosis and foot-
and-mouth disease as well as parasites were widespread, severely impacting productivity and
farm profitability, and posing a considerable risk to humans. Vaccination coverage was poor and
availability of quality veterinary drugs was wholly inadequate. Farms management practices
were deficient and extensive training and information provision was needed to improve farmers ’
understanding of good management practices and the importance of adequate nutrition and
health care. Inconsistent approaches were under-mining the effectiveness disease control
programs. Public confidence in State Veterinary Department (SVD) was very low not least
because of allegation of corruption related to procurement and low vaccine effectiveness in the
field.
4. The Kyrgyz Republic was one of the countries in ECA, worst affected by the food
price crisis. More than third of the population were food insecure with one fifth being severely
food insecure. Transmission of global food price increases to Kyrgyzstan was very high and the
1
country was strongly affected by economic crises and restrictive food export policies in
neighboring countries during food price crises. The rural poor were some of the most affected
and used livestock as a social safety net.
5. Bank assistance in the agricultural and rural sector has been important and
effective over the last decade, and both the Government of Kyrgyzstan (GOK) and the donor
community desired to see the Bank continue its important role in this sphere. The Bank’s
essential role had also been reflected in the strong portfolio of investment operations supported
by IDA. Particularly important had been the introduction of private ownership of arable land, the
creation of rural extension and market information services, the modernization of the seed
industry, and other activities. To sustain and deepen this process it was important to ensure the
further institutional development of the main support services established in recent years and to
modernize others that will meet the particular needs of the livestock sector.
6. The ultimate objective, achievement of which the project was designed to
contribute to, was the reduction of rural poverty. Alleviation of poverty and improvements in
the level and quality of living standards were among three of its overall policy objectives, as
outlined in the “Country Development Strategy” (CDS) for 2006-2010 issued in December 2006.
In agriculture, the main goals were increases in productivity income growth and environmental
soundness, placing high priority on the development of agricultural support services and on
improving the legislative base governing agriculture. The “Agrarian Policy Concept of the
Kyrgyz Republic to 2010,” of 2004 highlighted the importance of introducing a more sustainable
system of pasture management, strengthening agricultural advisory and information services, and
improvement veterinary service provision as priority tasks.
7. To enhance aid effectiveness, a Joint Country Support Strategy (JCSS) supported
by a number of donors including the Bank was developed. The project was an explicit part of
the JCSS and supported programmatic JCSS areas. It was built upon the partnership arrangement
with International Food and Agriculture Development Organization (IFAD) and Swiss
Development Cooperation Fund (SDC) that was already used to implement Agricultural Services
Support Project (ASSP). IFAD intended to provide US$ 9 million in grant co-financing for all
project activities, to be administered by IDA, and the Swiss SDC was planning to provide CHF
2.14 million of parallel financing in support of a final phase of institutional development
assistance for the Rural Advisory System (RAS).
1.2 Original project development objectives (PDO) and key indicators
8. The project sought to improve the institutional and infrastructure environment for
farmers and herders, with a strong emphasis on the livestock sector. More specifically, it
sought to increase farmers’ productivity, particularly of livestock farmers in the project areas and
reduce animal diseases that have a public health impact (e.g. brucellosis).
9. The following were the project’s original targets for key indicators of outcome:
Improved pasture infrastructure and quality;
Expanded access to farm and livestock support serviced;
Increased livestock productivity.
2
10. The following were the project’s original targets for the key indicators of output:
Revised legal framework reflected in Aiyl Okmotus (AO) having management authority
for intermediate and distant pastures;
Number of Pasture Users Unions (PUU) with functioning Pasture Management Councils
(PMC) established and fully operational;
Number of Community Pasture Management Plans (CPMP) satisfactorily developed,
implemented and enforced by PMCs;
Percentage of pasture improvement micro-projects satisfactorily maintained;
Number of Farmers Koshuuns (FK) contracting advisory services using own funds;
Percentage of Community Seed Banks stable or expanding;
Improved State Veterinary Department (SVD) ratings on OIE/PVS criteria;
Number of private veterinarians operating;
Reduced prevalence of animal and human brucellosis;
Timely and complete project status reports, satisfactory audits, and satisfactory
supervision ratings.
1.3 Revised PDO and key indicators and reasons or justification
11. The PDO was modified after the project approval to reflect additional financing for
the food security (SDR 2.5 million (US$4.0 million equivalent)) and livestock productivity (EUR
6.7 million (US$ 9.11 million equivalent)). Food and Energy Crisis of 2006-2007 jeopardized
food security in Kyrgyz Republic. The crisis pronounced itself in a sharp increase in consumer
prices (20.1 percent) between 2006 and 2007 that the Kyrgyz economy faced. This reflected the
increase in food prices that make up about 46.6 percent of the official CPI. On main food items
the price escalation reached 62.6 percent (e.g. flour and bakery products). Since the project did
not anticipate a sharp food price increase there was a need for an urgent intervention to mitigate
consequences. Under these circumstances additional financing of SDR 2.5 million was approved
to finance provision of food crops seeds and strengthen community based grain storage.
12. By project mid-term the implementing agencies have made noticeable progress in
carrying out the activities under the AISP, which was well reflected in increases of procurement
and disbursement. The Government had already completed major project activities such as the
implementation of a Brucellosis vaccination program in one oblast. However, it became clear
that the project success in combating zoonotic diseases may be cut short unless scaled up to the
whole country. Up on a request from GOK the Bank team secured additional financing from EU
Special Facility Support to Animal Health and Feeding in amount of EUR 6.7 million to scale up
original project activities in the veterinary sector to all regions of Kyrgyz Republic.
13. As a result of additional financing the PDO was revised to following: To improve the
institutional and infrastructure environment for more productive, profitable and sustainable
livestock and crop production by pasture users and smallholder farmers, as well as to reduce the
economic impact of the zoonotic disease burden in the human population. Modification included
inclusion of the smallholder farmers as well as stressed importance of the crop production along
with livestock.
3
14. A number of indicators were revised as the Bank and implementing agency looked
for ways to better reflect project outcomes. Following modifications were made upon
approval of additional IDA financing and EU FRF Grant later on:
Improved pasture infrastructure and quality - Dropped upon approval of the EU Grant;
Expanded access to farm and livestock support serviced - Dropped upon approval of the
EU Grant. It was done due to redundancy of those indicators to show the project
outcome, which was “Increased livestock productivity”.
Improved food supply for poor households in the program area – Introduced upon
approval of the EU Grant to reflect outcomes of the crop production activities.
Improved SVD ratings on OIE/PVS criteria – Re-worded as “SVD ratings based
OIE/PVS criteria increase from 1 to 2” upon approval of the EU Grant.
Number of private veterinarians operating - Dropped upon approval of the EU Grant;
Reduced prevalence of animal and human brucellosis - Re-worded as “Statistically
significant decline in prevalence of animal and human cases of target diseases by end of
project”.
Coverage of vaccination programs for FMD, anthrax, rabies, brucellosis, PPR, Sheep
Pox, Echinococcosus, and Tubercullosis increase to at least 80% of target animals by end
of year 2 – Introduced upon approval of the EU Grant to reflect increased financing of
the vaccination program.
Increase in the condition score of livestock of target farmers of at least 0.5 points on a
scale 1-5 by end of project – Introduced upon approval of the EU Grant.
Increased state grain storage capacity – Introduced upon approval of additional financing
but then Dropped upon approval of the EU Grant along with related activities.
Increased yields of crops in targeted communities – Introduced upon approval of
additional financing but then Dropped upon approval of the EU Grant.
1.4 Main beneficiaries
15. Although the project did not target a specific group of farmers, individual farmers
(usually small size family farms) were the main beneficiaries. Beneficiaries included:
livestock owners in almost all aiyl okmotu nationwide, who benefited from improved access to
pastures and improved veterinary services; about 45,000 farmers who benefited from improved
rural advisory services; and a further 16,000 farmers who benefited from improved seed supply
through community seed funds. In addition, the entire rural population benefited from reduced
exposure to Brucellosis and in selected locations exposure to other zoonotic diseases (rabies,
anthrax) and FMD. National level state institutions which benefited from capacity building
included the State Veterinary Department, the Veterinary Research Institute (VRI), veterinary
laboratories, the Pasture Department, the Livestock and Pasture Research Institute (LPRI) and
the State Material Reserve Fund (SMRF). Non government and community based organizations
which benefited from capacity building included the rural advisory services providers, the
Kyrgyz Agricultural Market Information Service (KAMIS), the Veterinary Chamber, over 1100
private veterinarians, and others.
4
1.5 Original components (total project cost US$23.397 million: IDA US$9 million1, IFAD
US$9 million, GOK US$0.487 million, beneficiaries US$3.058 million, SDC US$1.852
million)2
Component 1, Pasture Management and Improvement (US$9.643 million: IDA US$4.372
million, IFAD US$4.363 million, GOK US$0.003 million, beneficiaries US$0.755 million, SDC
US$0.15 million)3
16. This component sought to foster integrated, equitable, socially and environmentally
sustainable pasture use and management by devolving responsibility to the local level and
applying a community based approach to their management. It had three subcomponents.
17. Subcomponent 1.1, Legal and Regulatory Reforms, included technical assistance to
develop and adopt an adequate legal and institutional framework governing the management and
use of pastures. It involved development of new pasture legislation and amendments to other
laws and regulations to ensure consistency. The new law requires (i) the demarcation of the
external boundaries of pastures as a basis for their management; (ii) the delegation of the legal
right for the management of pastures from Oblast/Rayon level government to local self-
governance bodies (LSGB) and the delegation of these rights from LSGB to community-based
Pasture Users Unions (PUUs) that had a legal status of the Territorial community self-
governance body; (iii) a shift from area-based to livestock headage-based pasture rights
allocation; (iv) Pasture Committees (or Jait Committees in Kyrgyz) as executive bodies of
PUUs to collect user fees to maintain and improve pastures; and (v) Pasture Committees of
PUUs together with LSGB to prepare community pasture management and use plans.
18. Subcomponent 1.2, Capacity Building for Community Based Pasture Management.
It proposed to provide information and training to pasture users, local self-governments and the
communities as a whole followed by establishment of Pasture Users Unions (PUUs) and their
representative executive bodies know as Pasture Management Councils (PMCs) (later referred to
as Pasture Committees). The project planned to provide assistance to PMC in developing
Community Pasture Management Plans (CPMPs) and annual Pasture Use Plans (PUPs).
Activities of the subcomponent also included demarcation of pasture boundaries between AOs
and support for the establishment and operation of a dispute resolution mechanism to settle
disputes between and among AOs over pasture boundaries and user rights.
19. Subcomponent 1.3, Community Pasture Investment Grants. The project included a
small grants facility for pasture related investments to help to resolve some of the issues to be
identified in the CPMPs such as rehabilitation of critical infrastructure (e.g. watering points,
stock routes, bridges, etc.). Each PUU was to receive a small block grant of Som 200,000 for the
first year of its participation in the project to implement such priority micro-projects.
1
Due to fluctuations of the SDR exchange rate the amount actually received was IDA 371 – US$ 8,848,128; IFAD
– US$ 8,591,368
2
Including contingencies
3
The amount actually disbursed was US$ 13 million including beneficiaries’ contribution.
5
Component 2, Agricultural Support Services (US$12.898 million: IDA US$4.217 million, IFAD
US$4.197 million, GOK US$0.479 million, beneficiaries US$2.303 million, SDC US$1.702
million) 4
20. This component sought to support the development and operation of market-
oriented support services that will assist farmers with agronomic and farm management advice,
market information, and animal husbandry, nutrition and health care. It had four subcomponents.
21. Subcomponent 2.1, Rural Advisory Services & Agricultural Market Information,
proposed to support with annually declining funds the final phase of institutional development of
the seven regional Rural Advisory Services (RASs) established under the ASSP through their
restructuring into legally independent foundations which would compete for service contracts
with other service providers. The objective was to put the system in a position where it could
function without further budgetary support from external donors. Funding for contracting of
extension services by the farming communities through FKs was planned on an annually
declining scale. Also, the subcomponent planned to finance on a declining basis the collection
and dissemination of essential agricultural market information, undertaken by the Kyrgyz
Agricultural Market Information Service (KAMIS)
22. Subcomponent 2.2, Community Fodder Seed Banks, proposed to provide
approximately 100 start-up grants for revolving community fodder seed funds to increase access
to quality forage crops for winter feed production.
23. Subcomponent 2.3, Livestock and Veterinary Services, sought to promote the
effective and country-wide provision of essential livestock and veterinary services including
vaccination, deworming, and pre- and post-slaughter inspection. This included provision of the
technical assistance for developing a suitable and regulatory framework, financing capital
investment and capacity building for SVD and for the Livestock and Pasture Research Institute
(LPRI), development of a public-private contracting system for veterinary services, provision of
small start-up grants for private veterinarians and their training, as well as a special program to
upgrade farmer knowledge on animal husbandry practices.
Component 3, Project Management (US$0.615 million: IDA US$0.305 million, IFAD US$0.305
million, GOK US$0.005 million)5
24. This component sought to support the coordination of the major project activities
and the fiduciary functions of the Agricultural Projects Implementation Unit (APIU) in the
Ministry of Agriculture, Water Resources and Processing Industry (MAWRPI) that was lately
reorganized to the Ministry of Agriculture and Melioration (MOAM). It planned to finance
incremental staff, consultants, operating costs, some technical assistance and training, M&E
activities, special studies, information dissemination and annual audits.
1.6 Revised components
4
The amount actually disbursed was US$16.85 million including beneficiaries’ contribution.
5
The amount actually disbursed was US$ 1 million because of the additional financing.
6
25. Two sources of additional financing were made available at short notice in response
to the food price crisis. IDA 6 Global Food Crisis Response Program Additional Financing
funded (i) provision of seed and fertilizer to an additional 191 CSF for food crops; and (ii)
improvement of State Material Reserve Fund (responsible for government food distribution
programs for the poor) grain storage facilities7, both aimed at having a rapid impact on food
security of the poorest. These activities were placed under new Food Security Component. This
modification was approved by the board as part of the additional financing approval.
26. European Union Food Crisis Rapid Response Facility Additional Financing (6.7
million Euro) was available to only four countries, of which Kyrgyzstan was one of them. The
EU TF funded implementation of the Strategy for Development of Veterinary Services, the
preparation of which had been supported by previous EU TA. Activities were placed under
existing project components: Part A Animal Health funded: (i) expansion of the pilot Brucellosis
Control Program nationwide; (ii) implementation of five additional disease control strategies and
(iii) training, equipping and contracting over 1100 private vets including to undertake
vaccination; Part B Animal Feeding funded: (i) 342 additional animal feeding and soil
management demonstrations; (ii) seed and fertilizer for an additional 193 CSF; (iii) provision of
an additional US$ 1.8 million in pasture improvement grants to communities and related training.
Activities were well aligned with the original project development objective.
1.7 Other significant changes
27. Overall, the project was restructured four times: in 2008, 2010, 2011 and 2013. As
discussed above the first change was introduced immediately after the project approval prior to
project effectiveness to introduce a new component on food security to be financed by the
additional IDA grant. The second restructuring was done in June 2010 to benefit from the
European Union Food Crisis Rapid Response Facility (FRF), which was signed on October 9,
2010. Other restructurings were done mainly to reallocate funds among categories. The third
restructuring was done in December 2011 to provide a six months extension of the closing date
for the EU FRF including some reallocation of EU FRF funds among categories. The purpose of
restructuring was to remove activities of the EU TF for which related procurement was unlikely
to be completed before the closing date for the EU TF and to add activities for which
procurement could be completed by this date. The restructuring was also used to drop
community grain storage investments because of a lack of clarity about their ownership and
management. The last restructuring was finalized in April 2013 and included reallocation of IDA
funds among categories. The reallocations were done between different expenditure categories
and didn’t affect the objectives of component.
2. Key Factors Affecting Implementation and Outcomes
2.1 Project preparation, design, and quality at entry
6
IDA H-390 approved on June 13, 2008
7
A community based grain storage activity was not initiated and removed during restructuring.
7
28. The project was strategically relevant, and the technical justification was rigorous.
A thorough economic and financial analysis estimated an economic rate of return of 56 percent
for brucellosis control program and 171 percent for pasture improvement. These estimates
assumed both livestock and human health benefits of the brucellosis control program as well as
declining relative stocking rate as the result of the pasture improvement activities that would lead
to higher pasture yields and higher live weight at slaughter. A social assessment and an
environmental review were also conducted, helping to identify potential risks and challenges.
Several technical background notes, including the Agricultural Policy Update (2004) and the
Livestock Sector Review (2006), and the key lessons learned from a number of on-going IDA-
funded operations in the Kyrgyz Republic as well as from other donors’ operations informed the
technical design of the project.
29. The PAD identified a broad set of lessons learned in other operations that were used
to design project activities. The project was prepared in partnership with several government
agencies, the private sector, and civil society. Several alternatives were considered and rejected
after careful consideration. The institutional arrangements were thought through, with primary
responsibility for implementation being assigned to the APIU, including fiduciary
responsibilities such as financial management and procurement. Activities that required
community mobilization in different components were to be implemented with support of
specialized agencies such as ARIS, which had extensive experience in community mobilization.
The Rural Advisory Services (RASs), TAIC and other service providers were to provide the
necessary technical advice to livestock owners, farmers FKs, and PUUs.
30. The additional financing from IDA and EU later on increased the complexity of the
project design. The Bank team displayed strong client commitment and responsiveness by
processing the additional financing to respond to the food crisis in the country. As it was
necessary to attach the food crisis response additional financing to an existing operation, a
decision was made to add a new component, which was described in para 25, although it was not
directly related to the originally planned project activities.
31. The project was closely aligned with government’s own strategies and priorities and
consequently enjoyed strong government support including through a number of internal
crises. Specifically the Project contributed to implementation of the Pasture law, signed by the
President of KR, and dated January 26, 2009, #30, and the Strategic Plan for Development of
Veterinary Services 2008-2012, which were two of government’s priorities for the sector. This
became possible due to the Bank team, APIU, and other executive agencies of the project,
particularly Pasture Department of MOAM that played a significant role in explaining benefits of
the reform and guiding the process overall. The GOK was grateful for the additional financing
secured by the Bank that allowed institutional strengthening of a number of government
agencies.
32. The identification of critical risks was comprehensive at appraisal and included
reasonable corresponding mitigation measures. Overall, project risks were rated as “moderate”
with “substantial” rating assigned only to the political instability and frequent government
turnover risk that indeed materialized later on.
8
2.2 Implementation
33. The project helped to ensure that essential strategies and institutional reforms were
in place at national level as a foundation for activities at community level. The Project
worked closely with national institutions to help ensure that the legislative reform, strategies and
technical guidelines required for community level activities were in place. Examples include the
preparation of animal disease control strategies in cooperation with the animal and human health
agencies, preparation of pasture boundary demarcation guidelines in cooperation with
Gosregister and related agencies and preparation of community pasture management planning
guidelines in cooperation with the Pasture Department.
34. Implementation of the Project through the relevant technical agencies (rather than
in parallel) was challenging given their administrative and staffing constraints but critical
for implementation. SVD and other agencies faced constraints in terms of their administrative
and staff capacity. The APIU addressed this by placing project consultants within the technical
agencies to support them. This approach was far preferable to implementing the project in
parallel and in isolation from national agencies. This approach helped to ensure strong support of
national and local level government, helped ensure a consistent approach across the country and
helped build capacity in these institutions for their operations beyond the project. The APIU was
successful in coordinating the work with a large number of technical agencies and ARIS
demonstrated a good level willingness to cooperate with these agencies in implementing
community based support in the field. The direct involvement of the technical agencies was
crucial to ensuring the continued support for project activities, a good example being the
strenuous efforts of the Pasture Department to maintain support for the pasture reforms through
periods of internal conflict in Kyrgyzstan.
35. The 2010 political turmoil caused a temporary stall in the economy as well as in
Government decision-making, which caused implementation delays for the Project.
Political turmoil in April 2010 and prolonged absence of government led to delays in project
implementation, in particular the signing of the agreement on EU Food Crisis Rapid Response
Facility (FRF). Delays in signing added to the higher workload of the project implementation
and supervision teams due to the shorter implementation period and led to an additional
restructuring to extend the closing date for 6 months.
36. Collaboration with other donors worked out as planned and proved to be very
successful as achievement of project results wouldn’t be possible without their contribution. As
discussed earlier in para 12 the additional financing from EU FRF significantly enhanced project
results by scaling up original project activities to all regions of Kyrgyz Republic. IFAD co-
financed all project activities (except for the new component on food security) and participated
in supervision.
37. Several twinning programs between SVD, LPRI, TAIC and respective Swiss
counterparts were financed by SDC. The programs successfully started in 2009 and greatly
contributed to the capacity building and exchange of opinion. However, in 2010 due to the
political turmoil those programs were curtailed and in 2011-2012 didn’t continue due to the
9
sequestration of SDC budget. Therefore, less than 16% of the SDC funds budgeted at the project
appraisal stage were finally disbursed.
38. A rigorous Mid Term Review (MTR) of the project was done in May-June 2011 that
summarized changes in the project up to the moment, identified potential issues and discussed
actions to be taken by the project teams. Detailed review of the project progress at that time
undoubtedly helped to fine-tune project activities and most of the agreed actions were completed
in time.
39. The project team including Pasture Department of MOAM proactively pushed for
the passing of the new pasture law, including closely working with other partners and meeting
with the parliamentarians to build support for its approval. The pasture reform initiated by the
project was innovative and involved significant change in the existing arrangements. In the
beginning, governments at the local levels opposed the creation of pasture committees as those
committees were supposed to manage pasture revenues. Tax authorities were also concerned that
land/pasture taxes would diminish after the reform. The project launched a number of
information campaigns and extensive community mobilization which fostered better
understanding of reforms and generated acceptance by different stakeholders. Extensive follow
up by the Bank team including multiple meetings with Government officials and Parliament
members ensured the successful passing of the Pasture Law.
40. The pace of implementation was also slowed by conflicts between some AOs over
pasture boundaries. Pasture demarcation was an important prerequisite to the PUUs assuming
responsibility for pasture management. Some conflicts arose due to discrepancies between
cadaster boundaries and traditional usage of pastures. In many cases it was possible to resolve
conflicts through negotiations between opposing parties. However, in 11 AO delimitation of
pasture boundaries are not finished as parties cannot reach consensus. The pasture department of
the MOAM is determined to complete delimitation in 2014 by taking open cases up to the Oblast
level and if still unresolved to the national commission level.
41. Intensive field supervision of the pilot brucellosis vaccination campaign of sheep and
goats helped identify weakness in implementation as a basis for a stronger national vaccination
program. Both SVD and the Bank (including through local consultants) undertook intensive field
supervision of the pilot vaccination program. This was important in identifying basic logistical
and administrative constraints to the vaccination program and helped ensure the success of the
national program.
42. The vaccination program faced problems with vaccine quality issues, but this was
effectively addressed through the Bank and Project team’s proactive follow up. The
vaccination program’s effectiveness was threatened by the government’s practice of buying
vaccines from a local producer called “Altyn Tamyr”, although Altyn Tamyr never supplied
vaccines to the project. GOK preferred to procure some vaccines from Altyn Tamyr, as a means
to support a local vaccine producer. In response, the Bank team persistently pushed the OIE to
undertake an assessment of Altyn Tamyr. The OIE found that the vaccines produced by Altyn
Tamyr were not in compliance with OIE standards, was of low efficacy, and moreover posed a
threat to biological security in the region. Following these findings, the Bank held extensive
10
dialogue with the government and SVD, and coordinated with other donor, to push for a stop in
using the Altyn Tamyr vaccine. As a result of the Bank team’s persistence, agreement was
reached with SVD that Altyn Tamyr will not be allowed to participate in the future tenders to be
organized by GOK to procure brucellosis and other vaccines.
43. Community mobilization (both for PUU and FKs) was carried out very effectively
by ARIS thanks to its substantial experience in this field. This was possible because of ARIS
nationwide network of CDSO’s and substantial prior experience in social mobilization. Strong
cooperation with existing community organizations including schools, village health committees
and PUUs, helped to ensure the success of the BCP, particularly in terms of public awareness.
44. Financial sustainability of majority of FKs proved to be challenging. The original
idea was to pilot them in selected areas to study farmers interest in such unions. However due to
a delayed start-up of this activity, a decision was made to organize FKs on a nationwide basis
from the start. FKs were planned to be an important part of the RAS reform. Although some
organizational changes in the RAS system were implemented, eventual success of the reform is
not guaranteed given cessation of the majority of FKs.
45. As project funding involved a number of currencies (SDR, US Dollar, Euro, and the
local currency Kyrgyz Som) exchange rate fluctuations affected availability of funds and
complicated financial reporting. Procurement of equipment was affected the most as exchange
rate could change significantly during the tender posing additional difficulties related to covering
unexpected financial gaps.
2.3 Monitoring and evaluation (M&E) design, implementation, and utilization
46. Project’s complex structure made it challenging to design an effective Results
Framework that captures all project achievements with a strong link to the PDO. The project
objective—to improve the institutional and infrastructure environment—was difficult to measure
directly. Instead, achievement of the objective was suggested to be monitored with an effect such
an improvement would have on productivity and beneficiaries’ behavior. This way, to large
extent adequate indicators were identified to monitor project progress, and arrangements were
done to identify entities responsible for maintaining the M&E system.
47. However, due to numerous restructurings and revisions of various components the
M&E system did not capture fully all project outcomes, although it was detailed and
cumbersome. Introduction and dropping of several indicators created confusion for APIU which
indicators to follow, so the M&E system was not continuously maintained, and the impact of
project activities was not assessed on a regular basis. APIU in coordination with other
implementing agencies was able to gather good information on project outputs but had
insufficient resources to regularly assess project outcomes and impact of different activities. In
fact, considering vast amount of project activities it would be too costly to properly estimate the
impact of all of them.
48. The project, nevertheless, contributed to improving data collection related to animal
disease and human zoonotic disease incidence. Several aspects of partner institutions
11
monitoring and evaluation systems have improved as a result of the project: (i) A national animal
disease information system (KyrgyzVet) has been established with regional connections to
improve reporting on disease incidence and vaccination; and (ii) the partnership between the
State Inspectorate and the Ministry of Health in terms of joint reporting has improved.
Aggregate data on pasture fee collection as well as number of brucellosis incidences among
humans clearly show success of the project activities and this has facilitated decision making on
resource allocation in future.
49. Lessons have been drawn from the weaknesses in the project M&E system and the
proposed Bank funds for the follow on PLMIP includes substantial resources for the design and
testing of systems for monitoring and reporting the performance of PUU and private vets.
2.4 Safeguard and fiduciary compliance
50. Two safeguards were triggered under the project: Environmental Assessment
(OP/BP 4.01) and Pest Management (OP 4.09), although no large-scale, significant, or
irreversible negative impacts were likely. Environmental assessment (EA) and the environmental
management plan (EMP) were prepared during the project preparation. EA showed that the pest
management issues are of limited nature so preparation of a separate pest management plan was
considered not necessary. The main environmental issues related to sustainable management of
pastureland, integrated production and pest management, small-scale infrastructure investments
for improving pasture management, and management of laboratory and medical wastes.
51. Overall, the project was implemented in compliance with the Bank and national
environmental assessment rules and procedures as well as existing environmental
requirements. Initially, capacity for record keeping to address potential issues was low, so the
Bank team strongly suggested during MTR to hire an environmental specialist in the APIU. This
suggestion was accepted and capacity improved. After MTR the Bank team relied mostly on the
desk review of the APIU reports to confirm safeguards compliance and did not include an
environmental specialist in the field visiting missions. However, a more rigorous review of some
subprojects (e.g. A dead pile facility rehabilitation or Pasture road construction) implemented by
the pasture communities might have been needed due to their potential hazards. Many
subprojects related to pasture rehabilitation are likely to have produced a positive environmental
effect because of the decreased land degradation and better grazing practices.
52. The procurement performance under the project was satisfactory, with majority of
contracts awarded according to schedule and a few suffering some delays due to factors
beyond the control of the implementing agency. The implementing agency had sufficient
procurement capacity with two-three procurement specialists with experience in international
procurement employed full time depending on the workload. The filing system was adequate,
and no major issues were noted. Ex post reviews of procurement were conducted regularly.
53. During the project’s life, the financial management (FM) arrangements including
accounting, budgeting and planning, reporting, internal controls, external audits, and
funds flow have been at the satisfactory level. The FM capacity at both implementing agencies
APIU and ARIS, including organization and staffing was satisfactory. The level and timeliness
12
of counterpart funding was assessed to be adequate. The internal control systems at APIU and
ARIS were acceptable to the Bank and assessed to be capable of providing timely information
and reporting. The Financial Management Manuals in both agencies properly document specific
project related internal control procedures, including authorization of expenditures and approval
of the payments; bank reconciliation, verification of expenditures eligibility by the Financial
Managers; description of financial documents flow/circulation; indication of eligible cash
transactions, budgeting procedures, formal reconciliation procedures of project records,
safeguards for assets, etc.
54. However, during the last supervision mission in January 2013, the ratings of the
financial management and overall implementation progress were downgraded to MS due to
the delay in submission of the audit report for 2011 for almost four months. The late submission
was caused by the need to change the service provider as the Bank updated the list of eligible
auditors and delays in preparation of the report by the new auditor. The audit report for 2012 was
submitted on May 13, 2013 and was found to be acceptable to the Bank and financial
management rating was upgraded in the FM supervision.
2.5 Post-completion operation/next phase
55. Project’s achievements in the pasture management and veterinary will be
consolidated by the follow-up projects: Pasture and Livestock Management Improvement
Project to be financed by IDA and Livestock and Market Development Project to be financed by
IFAD. Objectives of those projects will be to take forward reforms started under the AISP,
particularly to address outstanding issues in community based pasture management, private
veterinarians capacity, and marketing of the agricultural products.
56. All institutional agencies employed by the project remain fully in place. APIU is
properly staffed and continue its functions and will be a leading implementing agency for the
above mentioned projects. Pasture committees, private veterinarians, and other entities organized
during the AISP implementation are fully supported by all stakeholders and will further build
their capacity with financial support by the international donor community. Performance
indicators of the follow up activities are being developed by the team. It is recommended that
some of the outcome indicators used by AISP (such as livestock productivity, etc.) are included
to the results framework of the future projects. This way it will be possible to continue tracking
benefits generated by AISP.
3. Assessment of Outcomes
3.1 Relevance of objectives, design, and implementation
Rating: Relevant
57. The project’s objectives were well aligned with the World Bank’s Joint Country
Support Strategy (JCSS) for 2007–2010, which builds on the Government’s development goals.
JCSS contains three key objectives: (a) economic management consistent with strong and
sustained pro-poor growth; (b) reducing corruption, improving governance, and effective public
13
administration; and (c) building sustainable human and social capital through education. The
project was an integral part of Pillar 1 of the JCSS, “Economic management consistent with
strong and sustained pro-poor growth.”
58. Achievement of project objectives remains highly relevant to the recently approved
Country Partnership Strategy (CPS) for 2014-2017. Area of engagement 3: “Natural
Resources and Physical Infrastructure – the state as steward and the citizen as user of natural
resources and public assets” is explicitly mentioned to support country development goal to
improve management of agriculture, livestock, pastureland, etc.
59. The project has logical connections among its components and their expected
contribution to the project’s objective. Each component was designed to address specific
problems. Changing circumstances due to crisis of 2007-2008 did not change long and medium
term priorities but lead to inclusion of additional activities at early stages of project
implementation to overcome short term challenges and ensure achievement of project objectives.
These changes tangled the project’s original design and somewhat complicated implementation;
however the team succeeded in completing all project major activities in time and achievement
of project development objectives did not suffer.
3.2 Achievement of project development objectives
Rating: Moderately Satisfactory
60. The objectives of the project — to improve the institutional and infrastructure
environment for more productive, profitable and sustainable livestock and crop production
by pasture users and smallholder farmers, as well as to reduce the economic impact of the
zoonotic disease burden in the human population — were achieved as confirmed by the project
outcome indicators. Although the impact of all project activities is not feasible to quantify there
is a clear indication of success in key project activities related to the pasture reform, control of
zoonotic diseases and others. Moderately Satisfactory rating recognizes overall success of the
project activities but acknowledges a few shortcomings in achievement of the intermediate
outcome indicators.
57. Did pasture infrastructure and quality improve?
(a) The Project strongly facilitated the development and adoption of the Pasture Law in
2009 by raising the awareness of decision makers and recommended legislative reforms. Broad-
based support for the law has been sustained through several internal crises through a strong
public awareness effort by Project partners. Principles of the new law included: (i) delegation of
pasture management responsibility to community-based inclusive and representative PUUs; (ii) a
shift from area-based to livestock headage-based pasture rights allocation; and (iii) integrated
management of low, middle and upper altitude pastures allowing better seasonal movement of
livestock.
14
(b) The Project demarcated external boundaries (between AO) of the pastures under
almost all (97%) PUU’s nationwide. This provided an important legal basis for their operations.
Public disclosure and dispute resolution mechanisms were established at local and national level.
(c) PUU capacity for managing community based investments has been well established
providing a foundation for further community funded investments after the project. Community
based investment proved to be an effective means of improving pasture infrastructure nationwide,
providing improved access to an additional 430,000 ha of pastures. High beneficiary contribution
(25%) to almost 1000 micro-projects demonstrated strong demand and willingness to pay for
such investments.
(d) The increase in the pasture use fees collected from negligible levels in 2008 to about
KGS 111 million in 2013 clearly demonstrates increasing demand for PUU services and access
to pastures and strongly suggests improvement in pasture infrastructure and quality.
61. Did access to farm and livestock support services expand? The Project employed two
alternative models to expand access to farm and livestock support services (i) Farmer Field
Schools and Demonstrations and (ii) Farmers Koshuuns. The Project improved the knowledge of
about 17,000 farmers through delivery of field demonstrations and farmer field schools (FFS) on
a broad range of crop management, soil management and livestock management topics. About
100 FFS trainers were also trained and are now well equipped to deliver further farmer field
schools training for the rural advisory services in future. Farmers' Koshuuns (FKs) successfully
delivered advisory services to members during the project but their potential for long-term
sustainability is low. The rationale for the establishment of FKs was that given the decision of
donors to phase out funding for advisory services and the low likelihood of government funding,
there was a need to establish a mechanism to allow small farmers to collectively procure
advisory services. The Project tested the willingness of farmers to pay for services through a
declining project contribution to costs. The outcome was that while the FKs did effectively
procure advisory services during the project, delivering services to about 26,000 farmers, farmers
were not sufficiently willing to pay for services once project funding declined. Consequently the
majority of FKs (90 percent) are expecting to cease their operations after the project.
62. Did livestock productivity increase? The baseline for this indicator was 80 percent of
lambs surviving to age 4 months. According to MOAM in 2013 lambs’ survival rate to age 4
months is 89 percent in project territory, which confirms increase of the livestock productivity as
target was only 85 percent. While a survival rate depends on many factors and cannot be 100
percent attributed to the project activities, other indirect measures of productivity including cattle
and sheep brucellosis incidences, pasture improvements, and satisfaction of beneficiaries of the
“Livestock and Pastures” training program confirm the project attribution. Other specific project
outcomes were as follows:
(a) The Ministry of Agriculture endorsed strategies for control of six diseases prepared
under the Project, including both zoonotic and trans-boundary diseases drawing on specialist
international expertise. Inconsistencies in approach which existed before the Project had
undermined the effectiveness of disease control programs.
15
(b) The government adopted and practiced a policy of public service provision through
private veterinarians funded under the project. This was a corner-stone of the 2008-2012
Strategy for Development of Veterinary Services. Over 1100 private veterinarians were involved
in the national Brucellosis control program under the project. This has created a strong incentive
for private veterinarians to operate and increased enrollment rates in veterinary science.
(c) As a result, the Project has directly contributed to a nationwide reduction in the
incidence of human Brucellosis from 4400 cases per annum in 2011 to 1200 cases per
annum in 2013. Figure 1 shows changes in incidence of human Brucellosis in the first pilot
rayon (Ak Tala) Reduction of the brucellosis incidences is a result of significant improvement of
government capacity to implement animal disease control programs including: (i) vaccine
procurement; (ii) vaccination planning in cooperation with communities and private vets; (iii)
vaccine cold chain inventory and maintenance; (iv) public awareness in cooperation with village
health committees, schools and other community level organizations; and (v) surveillance,
diagnosis and reporting. Milk yields also exceeded the project target: i.e. 1960 liters per cow per
lactation compared to the target 1935 liters/cow/year. Thus, both components of the livestock
productivity show achievement of target.
Figure 1. Changes in incidence of Human Brucellosis in Kyrgyzstan
Source: Kyrgyzstan Brucellosis Control Program Results, Ron Jackson (Bank Team Epidemiologist), 2014
63. Did food supply for poor households improve in the program area? This is an
indicator that was introduced to evaluate impact of project crop production activities especially
Food Security component. Analysis of yields received by CSF member farmers and poor
families that received support from the project showed that calorific food availability increased
by 46% for 8650 families that exceed target of 25%. In addition yields of various crops including
spring and winter wheat, barley, potato, etc. received by CSF members are higher than those who
are not members of CSF as well as national average provided by the Statistical Agency.
64. Were intermediate outcome indicators achieved? According to the project reports
following results were achieved: Revised legal framework reflected in AOs having management
authority for intermediate and distant pastures – Achieved; Number of PUUs with functioning
PMCs established and fully operational – 454 (target was 400); Number of CPMPs satisfactorily
developed, implemented and enforced by PMCs – 400 (target achieved); Percentage of pasture
improvement micro-projects satisfactorily maintained – 98% (target was 85%); Number of FKs
contracting advisory services using own funds – 55 (partially achieved as target was 200);
Percentage of Community Seed Banks stable or expanding – 74% (target was 80%); SVD ratings
based OIE/PVS criteria increase from 1 to 2 – Review of upgraded SVD ratings is not yet done;
Statistically significant decline in prevalence of animal and human cases of target diseases by
16
end of project – Cattle – 0.25% (target was 1%); Sheep – 0.6% (target was 2.6%); Coverage of
vaccination programs for FMD, anthrax, rabies, brucellosis, PPR, Sheep Pox, Echinococcosus,
and Tubercullosis increase to at least 80% of target animals by end of year 2 – 90% (target was
80%); Increase in the condition score of livestock of target farmers of at least 0.5 points on a
scale 1-5 by end of project – No Data8; Timely and complete project status reports, satisfactory
audits, and satisfactory supervision ratings – Mostly Achieved; As can be seen most intermediate
outcome indicators were fully achieved and many overshot planned targets significantly.
65. The linkage between Project outputs and outcomes is clearly illustrated by the
accomplishment in the area of pasture management. Although it was not included in the project
results framework as a specific target, revenues from the collection of pasture use fees raised
steadily starting from 2011 when new legislation was mostly adopted. In 2011 over KGS 66
million, in 2012 over KGS 82 million, and in 2013 KGS 111 million were collected in form of
pasture use fees while prior to the reform only about KGS 8 million of land tax on pastures were
collected annually. Increased amount of pasture fees collected shows mostly people’s willingness
to pay since the project neither envisaged nor financed any activity related to the enforcement of
the fees collection. PUU members are willing to pay pasture fees (KGS 50-100 per head of
livestock) as they perceive better quality of pastures and better management of pastures by self-
governing PUUs. The trend of annual increase in pasture fees collected also shows more
productive, profitable and sustainable livestock from year to year, which is exactly the project’s
development objective.
3.3 Efficiency
Rating: Satisfactory
66. The Economic and Financial Analysis (EFA) showed that the project investments
were both economically viable and financially profitable for farmers. To make it consistent
with the PAD, separate analyses were undertaken for the three major project investments –
pasture improvement, RAS, and brucellosis control. For PMI the EFA estimates that the project
generated an economic internal rate of return of 143 percent and financial net incremental
benefits of 99 USD per farm. RAS activities of the project generated EIRR of 118 percent and
financial net incremental benefits of 61 USD per farm in the south and 132 USD per farm in the
north. The Brucellosis Control Program (BCP) generated an EIRR of 69% and financial net
incremental benefits of 38 USD per farm. Sensitivity analysis was undertaken to examine the
effect of changes in benefit assumptions at ICR on economic viability. Given a 20% decline in
project benefits the PMI component was moderately sensitive to a change in assumed benefits
with the EIRR falling from 143% to 125%, the RAS investments were highly sensitive to a
change in assumed benefits with the EIRR falling from 118% to 40%, and the BCP model was
moderately sensitive to a change in assumed benefits with the EIRR falling from 69% to 65%.
8
This indicator was acknowledged as weak and was dropped by the project unit based on the opinion of an
international consultant. Alternative monitoring tools like animal live weight were used. The amendment was not
processed and agreed officially, though.
17
67. The economic and financial analyses looked at the key quantifiable benefits. Net
incremental benefits of the PMI were generated primarily through (i) the establishment of
community based pasture user unions to manage pastures and (ii) community based investment
in pasture infrastructure providing improved access to pastures (4.84%), resulting in reduced
stocking rates (2,39 LSU/ha) and consequently higher livestock productivity in terms of meat
and milk yields which increase by about 1.5 percent and 4.5 percent respectively. Net
incremental benefits of the RAS were generated primarily through extension advice and training
to farmers which resulted in higher crop and livestock yields. Net incremental benefits of the
BCP were generated through (i) reduced incidence of the brucellosis in animals and
consequently higher livestock productivity (reduced mortality and higher birthing rates) and (ii)
reduced incidence in humans which resulted in reduced treatment and care costs and losses from
labour due to illness.
3.4 Justification of overall outcome rating
Rating: Moderately Satisfactory
68. Based on the relevance, achievement of development objectives, and efficiency, the
project’s overall outcome is regarded as moderately satisfactory. The development rationale
behind the Project remained relevant throughout implementation and continues to be relevant.
The project ratings stayed at the Moderately Satisfactory level through last two years of the
project implementation due to ongoing issues that project was facing and which were described
in section 2.2. It is recognized that there are minor shortcomings in the project’s achievement of
its objectives related to the achievement of intermediate outcome objectives (e.g. number of FKs
contracting advisory services using own funds) as well as weaknesses in the project M&E system
that was not continuously maintained.
3.5 Overarching themes, other outcomes, and impacts
(a) Poverty impacts, gender aspects, and social development
69. The Food security component was added to respond to the food crisis of 2007-2008
and was specifically targeted to the most vulnerable social groups, including poor
households, female headed households, and families of work migrants. About 19,500 vulnerable
households received material support in the form of various crops seeds and fertilizers, and about
5,000 poor households received potatoes seeds for free, which boosted their incomes. In 2010-
2011 the project organized programs to support vulnerable rural female groups and families of
work migrants. Under these programs they were provided with vegetable seeds and participated
in various theoretical and practical seminars on agronomy, economy, and marketing, with
number of beneficiaries exceeding 1,500 people. Social review that was done as part of the
midterm review showed that social mobilization procedures for the establishment of FKs, PUUs,
and CSFs had been robust and reflected good practice. Well targeted Focus Group Discussions
have been convened in most communities to ensure appropriate consideration of views and
interests across stakeholder groups, including vulnerable and marginalized population segments.
Anecdotal evidences show that women play a notable leadership role in CSF governance as well
18
as substantial capacity and knowledge that was gained from the training and activities associated
with CSFs.
(b) Institutional change and strengthening
70. The project successfully organized the major institutional change in pasture
management at the national level. The new law “On Pastures” revised pasture management
that was fractured between different national and local administrative bodies and empowered
local communities by creating self-governing PUUs. After several years of operations these
committees remain both financially sustainable and administratively independent. In spite of the
initial skepticism showed by some officials at the national and local levels nowadays PUUs are
widely supported because of the greater land tax revenues received by local administrations and
better land management and increased farm productivity seen countrywide.
71. A number of other organizations including CSF, SMRF, RAS, SVD and others
received support by the project and were significantly strengthened. Although majority of FKs
terminated their activities after project closure, a number of them turned out to be sustainable and
continue their operations. Number of private veterinarians almost tripled thanks to the project.
The project implementing agencies APIU and ARIS increased their capacity throughout project
implementation. This shall facilitate follow-up operations and other activities they are engaged in.
(c) Other unintended outcomes and impacts (positive or negative)
72. Although project activities targeted mainly livestock a significant (almost four
times) reduction in brucellosis incidences among humans was recorded. 3630 cases of
brucellosis among humans were recorded in 2009, whereas only 1363 in 2013 after
implementation of BCP. The figures are from the official health statistics and more reliable than
a number of brucellosis incidences in livestock, as human cases are not easily concealable. This
indirect benefit of the project has been widely recognized by the Kyrgyz authorities.
73. The project changed the state practice of the livestock vaccines procurement. GOK
used to allocate funds to procure livestock vaccines from a local company Altyn Tamyr that
produced vaccines with questionable quality. In order to ensure sustainability of the project
results this practice had to be revised.
74. Pasture reform unexpectedly brought up a number of cases of frozen conflicts over
pasture territories between neighboring AOs. As mentioned earlier in para 40 the pasture
department of the MOAM is determined to complete delimitation in 2014 by taking open cases
up to Oblast level and if still unresolved to the national commission level.
75. Thanks to the project activities on development of agricultural support services and
expanding the access to update knowledge for farmers, the crop productivity of several thousand
farmers was increased. This positive outcome brought a problem of overproduction as many
farmers started to complain about difficulties in marketing. Follow up operations should include
activities to facilitate marketing of the agricultural products.
19
76. The project by promoting sustainable pasture management practices has
contributed to the regeneration of previously degraded pastures and thus to the increased carbon
sequestration in these pasture areas.
3.6 Summary of findings of beneficiary survey and stakeholder workshops
Not applicable.
4. Assessment of Risk to Development Outcomes
Rating: Moderate
77. The risk to development outcomes is assessed as moderate and mainly related to the
factors beyond control of the project stakeholders. Risk of political instability persists.
However, continuous communities’ support to the established institutional arrangements as well
as the follow-up project on pastures largely mitigates this risk. Economic and financial risks may
affect GOK budget revenues. Availability of the national budget to continue vaccination
program is very important for sustainability of the project results. Due to insufficient supervision
there is not enough information on risks associated with environmental hazards that some of the
pasture rehabilitation subprojects may present. Other risks including technical, social, etc., are
considered to be low as there is stakeholders’ commitment to follow good practices established
under the project.
5. Assessment of Bank and Borrower Performance
5.1 Bank performance
(a) Bank performance in ensuring quality at entry
Rating: Moderately satisfactory
78. As discussed in section 2.1, all aspects of the project were well worked out, and the
project’s components were designed to address key challenges for the sector. Previous and
current CAS and government strategy confirm that the objective continues to be relevant.
Implementation arrangements were well thought through and all relevant project agents were
engaged in accordance with their capacity and competencies. The PAD is clear and covers all
aspects of the project design.
79. As the first additional financing was processed before project effectiveness the
project design at entry became different from what it was at approval. It is recognized that the
additional financing brought significant benefits on the ground and showed team’s
responsiveness to client needs. It is also clear that additional financing complicated project
design and tangled monitoring and evaluation. In retrospect, the project results framework does
not seem to fully reflect project achievements, especially in pasture management and training
programs. This may be caused by uncertainty over results of the planned pasture reform;
however it seems that a bit more effort could have been spent to streamline project activities and
20
outcome indicators to make multiple restructurings of the project components less likely. In view
of these issues and weaknesses in the M&E system described in para 47 quality at entry is
considered to be moderately satisfactory.
(b) Quality of supervision
Rating: Moderately satisfactory
80. The World Bank team made a significant effort to ensure timely implementation of
project activities. The project team supported the project in its entirety, advising the
implementation units’ counterparts and issuing no objections irrespective of the source of
funding. This enabled proper coordination of different project activities and linked short term
measures to the medium term objectives. Implementation support missions were conducted
semiannually until 2012, when only one mission was conducted. Final mission was carried out in
January 2013, which summarized project achievements to date. There were no missions after that
as most of the funds had been utilized and the project was informally supervised with preparation
missions for the next project.
81. The Bank team outstanding support and intense consultations ensured successful
completion of the pasture reform and implementation of the project veterinary agenda. Rigorous
MTR was carried out in May 2011 that mobilized all team members including environment,
social, and fiduciary facilitating implementation by clearing existing bottlenecks. The team was
client oriented and most of the client’s proposals were supported.
82. A moderate shortcoming in the Bank supervision relates to the lack of
environmental and social specialists in the Bank team after the MTR due to the shortage of the
in-house specialists and overall constraints in the supervision budget. In these areas the Bank
team relied on reports made by consultants hired by the project implementing agencies, making
safeguards supervision vulnerable to the conflict of interest and less watchful of potential risks
and issues than the Bank routine supervision could be.
83. It seems that the Bank team could also try to address some of the issues of the RAS
reform once it became clear that most FKs were unlikely to stay financially sustainable. Full
disbursement of the Bank funds ahead of the project official closure complicated supervision
during the last year of the project implementation as project related information was not updated.
(c) Justification of rating for overall bank performance
Rating: Moderately Satisfactory
84. The rating is based on the moderately satisfactory rating on the quality at entry and the
moderately satisfactory rating on the quality of supervision.
5.2 Borrower performance
(a) Government performance
21
Rating: Moderately satisfactory
85. The project came about as a result of the strong government interest in alleviating
rural poverty and promoting development in the agriculture sector. Government agencies
strongly supported the project and welcomed financial support offered by the donor community.
The government supported institutional reforms and as the Altyn Tamyr example shows made
uneasy decisions when needed in favor of efficiency and long term benefits.
86. Political crisis in 2010 caused delays with signing of EU FRF grant agreement as
well as implementation of some components. This risked losing the project momentum and
caused downgrade in the project implementation progress rating. High turnover in management
of key beneficiary agencies made decision making difficult and put additional stress on the
project implementation team. Prompt resolution of the implementation issues was not in place
and required extensive follow-up from both APIU and the Bank.
(b) Implementing agency or agencies performance
Rating: Satisfactory
87. APIU and ARIS played the central role in the Project success. Both staff and
management showed competencies and commitment to achieve project results. They met
regularly with the Bank’s project team, openly discussed project issues, and diligently followed
up on the agreed actions. Both teams effectively interacted with each other and carried out their
activities in a well-coordinated manner. MOAM supported APIU on the daily basis and
facilitated interaction with beneficiary agencies. Both APIU and ARIS had information systems
to record and monitor project activities and reported regularly to the Bank team. ARIS was very
successful in social mobilization to organize PUUs and FKs. In response to the Bank suggestion
APIU strengthened safeguards monitoring by hiring an environment specialist. Fiduciary aspects
of implementation were well handled by the APIU. Minor shortcoming is related to the delay
with submission of 2011 audit report but the issue was resolved and financial management rating
upgraded.
(c) Justification of rating for overall borrower performance
Rating: Moderately satisfactory
88. The rating is based on the moderately satisfactory rating of the Government
performance and the satisfactory rating of the implementing agency performance.
6. Lessons Learned
89. The project confirmed the importance of the implementing agencies’ capacity for
the project success. Social mobilization activities were carried out by an organization with wide
experience and with great commitment. Coordination of financing from multiple donors to be
spent on multiple components requires considerable fiduciary and management capacity. In short,
22
it was shown that an experienced implementing agency can overcome emerging difficulties and
speed up implementation.
90. The establishment of an appropriate legal framework is a critical pre-condition for
sustainable community-based pasture management. The Pasture Law provided a clear legal
basis for PUUs to assume the responsibility for managing the pastures and collect fees to
maintain them. This is essential for their longer term operations.
91. Monitoring and evaluation systems need to be established and tested within the first
year of the project or prior to project effectiveness using retroactive, or project preparation
funding where possible. Lessons have been drawn from the weaknesses in the project M&E
system and the proposed Bank funds for the follow on PLMIP includes substantial resources for
the design and testing of systems for monitoring and reporting the performance of PUU and
private vets.
92. The effort required to obtain the EUR 6.7 million EU TF additional financing was
well justified but future operations should carefully consider the administrative costs and
expected benefits of such AF and ensure that there are sufficient fiduciary management resources
in the PIU to deal with them before agreeing to them. In particular, caution is needed in
employing emergency or crisis funds with a short implementation timeframe to implement
medium development activities.
7. Comments on Issues Raised by Borrower, Implementing Agencies, and Partners
7.1 Borrower and implementing agencies
93. Borrower supported satisfactory rating of the project results and noted a highly positive
impact of many project activities (veterinary, pasture infrastructure, etc.) on the competitiveness
of the agricultural sector in Kyrgyzstan. MOAM asked the Bank for further assistance in
modernizing agro processing industry and international certification of veterinary facilities. Such
assistance may be provided in the framework of the follow-up projects.
7.2 Co-financiers
94. Along with IDA main co-financiers of the project were IFAD, EU, and Swiss Fund.
In the EU Final Report on the project implementation it is noted that the program had delivered
the expected outcomes. The Project has laid the foundations for cost effective disease control
programs, a private veterinary service, and radically new nationwide arrangements for pasture
management and improved fodder production.
7.3 Other partners and stakeholders
95. Local communities were prominent stakeholders of the project. All communities
visited during the ICR mission noted successful results of the project and expressed hope for
further support of the communities’ development by the international financial organizations.
23
Annex 1. Project Costs and Financing
Table A1.1 Project Cost, by Component (in US$ million equivalent)9
Actual/latest
Appraisal estimate estimate
Components (US$ million) (US$ million) % of appraisal
Pasture Management and Improvement 8.9 11.5 119.8
Agricultural Support Services 10.6 16.2 125.6
Food Security 0.0 3.8 -
Project Management 0.6 1.0 166.6
Total baseline cost 20.1 32.5 140.7
Physical contingencies 1.20 0.00 0.00
Price contingencies 2.10 0.00 0.00
Total project costs 23.4 32.5 138.9
Table A1.2 Project Cost, by Source of Funds 10
Actual/latest
Appraisal estimate estimate % of
Source of funds (US$ million) (US$ million) appraisal
IDA 9.0 13.3 147.8
IFAD 9.0 8.9 98.9
EU 0.0 8.8 -
SDC 1.9 0.3 15.8
Borrower 0.5 1.2 240
Local beneficiaries 3.0 2.12 70.7
9
Excluding beneficiaries contribution
10
Including beneficiaries contribution
24
Annex 2. Outputs by Component
The project’s outputs are summarized in the following table.
Table 2A.1. Outputs, by Component
Component 1 Component 2 Component 3
Pasture Management and Agriculture Support Services Food Security
Activity Improvement
Core New Law “On Pastures” adopted Veterinary Chamber was Total 292 community seed
activities on January 26, 2009 established (April 25, 2011) funds on food and fodder
448 JCs were formed of which in More than 12,000,000 heads of crops were established
427 JCs demarcation of boundaries livestock were vaccinated against 301 tons of barley seeds, 22
is completed; brucellosis and other diseases tons of alfalfa seeds, 50 tons
1110 trainings attended by 20,500 National animal disease of seeds of sainfoin and 2 tons
participants were organized; information system (NADIS) was of maize seed were distributed
820 seminars, 1350 focus groups set up and running to 101 fodder CSFs by tender.
meetings, 1748 information 1122 Private veterinarians received 1,205 tons of wheat seed, 360
campaigns attended by 50,000 equipment and training support tons of barley seeds and 800
participants were organized to More than 12,000 farmers tons of seed potatoes, 3133.45
raise capacity of JCs; benefited from training programs tons of mineral fertilizers were
1003 micro-projects were In addition, two special training procured and distributed.
implemented to improve pasture programs “Livestock and Pastures” More than 19,600 poor
infrastructure and “Rational Soil Use” were farmers in 628 villages of 37
400 Pasture Management Plans are organized. In 420 demo farms rayons received quality seeds
developed about 20,000 farmers received on and fertilizers and increase
field training their income.
Component 1, Pasture Management and Improvement, fostered integrated, equitable,
socially and environmentally sustainable pasture use and management by supporting the pasture
reform that was carried out nationwide.
Subcomponent 1.1, Legal and Regulatory Reforms, helped to draft and discuss main
legislative documents in order to advance the pasture reform. Those include: a new law “On
Pastures”, amendments to a number of laws (Customs Code, Administrative Code, etc.), Pasture
Development Program, approved by the Government, Pasture Usage rules, international
agreements with Tajik Republic, agreements between Environment and Forestry Protection
Agency and Pasture Department, guidelines for development of pasture usage plans, pasture
assessment, pasture demarcation, micro projects assessment and monitoring and many others.
185,000 pasture tickets were printed and given to the Jait Committees. In 2013 about KGS 111.1
million were collected in form of pasture usage fees.
Subcomponent 1.2, Capacity Building for Community Based Pasture Management,
included a number of activities to make community based pasture management sustainable.
Those include: demarcation of boundaries in 427 Pasture Committees; 1110 trainings attended
by 20,500 participants were organized on different topics. 114 special trainings for making
Pasture Usage Plans were conducted in all regions attended by 2500 participants. Educatory
brochures “Main pasture grasses” (5750 copies), “Effect of grazing on grasses” (2300 copies),
“Pasture improvement techniques” were printed. Roundtables and study tours between regions
25
were organized. Work on 400 Pasture Usage Plans is completed. The project financed Kyrgyz
Livestock and Pasture Scientific Research Institute to develop scientifically justified methods of
pasture monitoring and improvement. This included creation of 8 demo sites, laboratory analysis
of pasture grasses, study tours, regional seminars and trainings. The institute also received help
in form of office refurbishment, vehicles (2 units), computer equipment and communication
means, office and laboratory equipment, as well as some field tools (sowers, reapers, tractor,
plough, etc.). In addition, material support was provided to the Pasture Department of MOAM
that included premises refurbishment, procurement of vehicles (10 units), computers (20 units),
office furniture, GIS equipment and GPS receivers.
Subcomponent 1.3, Community Pasture Investment Grants, included grant support to Jait
Committees for pasture infrastructure improvement. 452 Jait Committees received 899 grants to
implement 1003 subprojects for the total amount of KGS 271.2 million of which KGS 68.8
million was beneficiary contribution. As a result 532 bridges, 1494 km of pasture roads, and 243
watering points were rehabilitated. Size of additional pastures that were put back to usage as a
result of rehabilitation equaled to 431,000 ha. Grant program was accompanied by 820
seminars, 1350 focus groups meetings, 1748 information campaigns and secondary groups
meetings attended by 50,000 participants; more than 200 trainings were organized on
monitoring, procurement, accounting and other related subjects for JC members. In addition 3
subprojects to improve livestock migration paths were implemented by the Pasture Department.
Component 2, Agricultural Support Services, sought to support the development and
operation of market-oriented support services that will assist farmers with agronomic and
farm management advice, market information, and animal husbandry.
Subcomponent 2.1, Rural Advisory Services, included following activities: 32 trainings of
trainers were organized for the regional RAS, attended by 732 participants; about 50 different
brochures and leaflets (200-250 copies of each) on topics related to livestock husbandry and
pasture management were developed and printed; 458 Farmer Koshuuns were organized that
contracted with service providers and identified priorities of community needs in consulting
services. More than 12,000 farmers have improved reproductive performance of their animals
and increased productivity of cultivated agricultural crops. The results of the main activities
undertaken by the special program “L&P” (Livestock and Pastures) were the organization of
168 farmer demonstration farms, which conducted field days for 15,707 farmers. As a result,
farmers have learned to make a full feed ration for dairy cows. Training for 11,426 farmers was
organized and 1459 villagers were provided with advice. Under the special program “RSU”
(rational soil use) 252 demonstration sites were laid with 1457 field days showing RSU
technology for 23,336 farmers. Also 716 training to improve soil fertility were conducted for
8,000 farmers and 2,092 individual consultations were provided for 3,090 villagers.
Subcomponent 2.2, Agricultural Market Information, supported monthly edition of the
“Bazar-Tamyry” magazine (1,500 copies) that included essential agriculture market information.
One or two agricultural crop or type of agricultural activity was described in each edition.
Subcomponent 2.3, Community Fodder Seed Banks, supported creation of 101 new CFSF
with 1754 farmers-members. Amount of seeds that were purchased with project support are
summarized in the table below (in tons):
26
Table 2A.2. Procurement of fodder crop seeds for CFSFs (tons)
Fodder Crop 2009 2010 2011 2012 Total
Maize seeds 2 - - - 2
Spring Barley 50 81 85 85 301
Lucerne 4 6 6 6 22
Sainfoin (Esparcet) 25 25 - 50
Total (US Dollars) 44 043 77 400 71 000 53000 245443
Subcomponent 2.4, Livestock and Veterinary Services, supported a vast amount of different
activities in the veterinary field. A Veterinary Chamber was created to support development of
private veterinarians; the chamber was supported with equipment and trainings; a number of
legislative acts in veterinary were drafted and publicly consulted; 6 strategies to combat animal
diseases were developed and approved; to implement those strategies following vaccines were
purchased:
Table 2A.3. Procurement of vaccines by the project
Vaccine Amount Sum (USD)
Vaccine REV-1 (brucellosis) 11 890 000 doses 974 450
Anthrax Vaccine 5 086 000 doses 54 630
Rabies Vaccine 632 500 doses 23 814
Anthelmintic Azinoks to control Echinococcosis 5 175 000 tablets 277 927
Rinderpest Vaccine 2 137 200 doses 126 094,8
FMD Vaccine 946 673 doses 584 117
Anti-Anthrax Human Immunoglobulin 3,1 liters 66 960
Regional and rayon offices of the state veterinary service procured industrial refrigerators,
which allow observing the “cold chain” for vaccines and biologics; generators that maintain
electricity in case of power failure and also allow observing the “cold chain”; cars, office
equipment, mobile disinfection station on vehicle and other disinfectants, specialized
publications, etc.; 1122 private veterinaries across the country received refrigerators, thermal
containers and other veterinary and medical instruments and drugs to observe the “cold chain”
and improve the quality of their services, they also were trained on establishment and
development of private veterinary services (PVS); 1,000 private veterinarians received training
and consulting; Modern laboratory equipment was procured for the Kyrgyz Scientific Research
Veterinary Institute; Laboratory and diagnostic equipment was procured for Republican Center
of Veterinary Diagnostic: laboratory and diagnostic equipment for about USD 500 thousand.
Procured and installed: microscopes, centrifuges, biosafety cabinets, freezers, autoclaves for
thermal disinfection and sterilization, thermostats, bactericidal irradiators, crematorium,
preparations for diagnosis of animal diseases.
National animal disease information system (NADIS) and Regional animal disease information
system RADIS are implemented in all SVD structures at the rayon level; a large-scale
communication campaign for public awareness of zoonotic diseases in animals is implemented,
information materials are distributed, and media coverage is conducted; Publications, radio and
TV programs about the need to de-worm dogs and cats were issued; The project also supported
serological research of blood samples to identify livestock infection rate.
Component 3, Project Management, financed work of implementing agencies APIU and
ARIS. They implemented, controlled, and monitored AISP activity under the provisions of
27
major project documents, annual work plans, procurement plans and budgets coordinated and
approved by the World Bank, the Ministry of Finance and the Ministry of Agriculture and
Melioration of the Kyrgyz Republic.
On an annual basis the independent auditing firms conduct audit of the project financing activity.
All tenders and procurement work are carried out according to the World Bank procedures. On a
quarterly basis and by request of MOAM, the Ministry of Finance, Jogorku Kenesh the reports
and information on the progress of the project are prepared and provided.
Component 4, Food Security, this is a new component that was added with an objective to
support vulnerable farmers and raise productivity of farmers by providing high quality seeds of
agricultural crops and fertilizes.
The Project supported creation of 191 Community Seed Funds (CSF) for food crops. 5912
farmers became members of CSFs, of which 576 were female farmers.
Table 2A.4. Procurement of seeds and fertilizers for CSFs (tons)
Crop / Fertilizer 2008-2009 2010 2011 2012 Total
Winter Wheat 350 300 - 150 800
Spring Wheat 200 - 140 65 405
Spring Barley 240 - 60 60 360
Seed Potato 100 - 600 100 800
Ammophos 504 - 166.5 775.95 1446.45
Ammonia Nitrate 750 300 60 577 1687
Total (USD) 1 499 028 221 980 790 523 737 1 3 249 302
478 trainings for CSF members were organized, which were attended by 1630 participants. 4
training sessions for 55 trainers were held for the regional RAS. 2500 agro technical brochures
and booklets were issued in Russian and Kyrgyz languages.
Apart from CSF three programs were run by the component: Potato seeds for the poor families,
which supported 5000 families in 508 villages with 200 tons of potato seeds; Support to the
vulnerable female groups, which supported more than 300 female headed families with
vegetable seeds; and Support to the vulnerable families of labor migrants, which provided
vegetable seeds and trainings to 1490 families of labor migrants.
The project supported a program to improve the institutional capacity of the Fund for state
material reserves. Repair works at the laboratory room were carried out for KGS 1,014.3
thousand. Laboratory equipment for 161 812.66 euro was installed. Laboratory staff has been
trained. Currently, the laboratory operates and conducts laboratory quality analysis of wheat
grain and flour.
28
Annex 3. Economic and Financial Analysis
The project investment in Component 1 Pasture Management Improvement was both
economically viable and financial profitable for farmers. Net incremental benefits were
generated primarily through (i) the establishment of community based pasture user unions to
manage pastures and (ii) community based investment in pasture infrastructure providing
improved access to pastures (4.84%), resulting in reduced stocking rates (2,39 LSU/ha) and
consequently higher livestock productivity in terms of meat and milk yields which increase by
about 1.5 percent and 4.5 percent respectively. The ICR analysis estimates that the project
generated an economic internal rate of return of 143 percent (compared to 171% at appraisal)
and financial net incremental benefits of 99USD per farm (compared to 191 USD at appraisal).
Financial and economic returns were lower than those projected at appraisal due to: (i) a lower
than projected increase in the area of pastures accessible for grazing (4,84% versus 20% at
appraisal); (ii) delayed disbursement of micro-project funds (2011-2012 versus 2008-2010 at
appraisal); (iii) higher livestock growth rates (4,51% versus 3% at appraisal); and (iv) increased
input costs and higher exchange rate (52 som/USD versus 34 som/USD at appraisal).
The component supported legal reforms in the pasture sector and the formation and
strengthening of Pasture User Unions (PUU) through capacity building, training and grants to
PUUs for pasture improvement, primarily through improvement of pasture infrastructure
including grazing tracks, bridges and watering points. As a result the new Law on Pastures was
adopted and the responsibility for use and management of all three categories of pastures (close-
in, intermediate and distant) was transferred to the Aiyl Okmotu level and further delegated to
PUUs.
The Economic and Financial Analysis (EFA) for the component was prepared at appraisal to
estimate the financial and economic viability of investments in pasture infrastructure, capacity
building and technical training to PUUs and relevant government institutions including the
Pasture Department, and the Kyrgyz Scientific Research Institute on Livestock and Pastures. A
standard Without-Project (WOP) and With-Project (WP) scenario approach was used and the
project life period was 20 years. Project benefits result from lower stocking rates in the WP
compared to WOP scenario because more pasture is made accessible due to infrastructure
investment and better pasture management. Lower stocking rates result in more available dry
matter, higher weight gains and higher milk yields. The critical assumptions which drove the
analysis were therefore as follows: Utilised Pasture Area: In the WP scenario, the area of utilized
pasture gradually increases by 20% over a 5 year period from 70% to 90 % and then stabilises.
This assumed that PUUs implement infrastructure micro-projects (e.g. bridges, roads, watering
points) which provide access to additional pastures within 5 years and assumes that thereafter the
same level of access to pastures is maintained. Livestock Numbers: In the WP scenario, livestock
numbers are assumed to increase more slowly than in the WOP scenario as PUU’s influence
livestock numbers allowed onto pastures through community pasture management plans and
allocation of pasture tickets. Stocking Rates: Consequently as the utilised pasture area increases
the stocking rate declines rapidly in the WP scenario from 1.95 LSU 11 /ha in year 1 to 1.67
11
LSU in Kyrgyzstan means sheep equivalent: 1Ewe = LSU, 1 Adult Breeding Cow = 5 LSU.
29
LSU/ha in year 5 but in the WOP scenario increases from 1.95 LSU/ha in year 1 to 2.19 LSU/ha
in year 5. Thereafter, stocking rates increase and stabilise in year 10 but growth is slower in the
WP scenario. Other critical factors which drove the analysis which remain constant in the WOP
and WP scenarios were pasture forage DM production response to stocking rate and feed
conversion ratios. Projected benefits were conservatively assumed to be achieved on 70% of the
pasture area based on the assumption that PUU establishment may only be achieved in 70
percent of the project area. The total cost of component was estimated at 8,648,213 USD, micro-
projects at 2,794,118 USD and PUU contributions to micro-projects at 698,529 USD. The EFA
at appraisal provided estimates of financial viability for farmers (who are assumed to contribute
25 percent to the cost of microprojects) and economic viability as shown in Table 1.
The EFA for Pasture Management and Improvement Component at the ICR stage were prepared
using the original model used at the appraisal. In addition to field trips the sources of data
included reports by APIU and statistical agencies. Key assumptions were revised based on actual
data. The actual increase in access to additional pasture areas was 4.84%, the actual growth of
livestock population was 4.51%. Consequently and the actual stocking rates in WOP without any
increase in utilisable pasture area would have been 2.46 LSU/ ha in year 5 and the stocking rate
in the WP scenarios was 2.39 LSU/ ha in year 5. Due to additional funding from EC the actual
component cost was increased to 11,870,764 USD, micro-project costs to 4,405,717 USD and
PUU contributions to 1,467,863 USD. The analysis showed healthy NPVs, IRRs and cost benefit
ratios. However actual financial and economic performance was lower than estimated at
appraisal due to smaller areas of additional pastures made available through micro-project
investments (4.84% versus estimated 20%), delayed disbursement of micro-project funds (2011-
2012 years versus planned 2008-2010), higher livestock number growth rates (4.51% versus
estimated 3%), increased input costs and higher exchange rate (52som/USD used at ICR versus
34som/USD used at appraisal).Below is the Table 1 presenting key results of the EFA at
appraisal and ICR.
Table 1. EFA for the Pasture Management and Improvement Component at appraisal and ICR
Appraisal ICR
Financial Results
Incremental gross margin per farm (USD) 191 99
Incremental gross margin per ha total pasture area (USD) 5 3
FNPV of net incremental benefits (million USD) 227 94
FNPV of net incremental benefits per ha of pasture (USD) 26 11
Economic Results
ENPV of net incremental benefits (million USD) 152 86
ENPV of net incremental benefits per ha of pasture (USD) 17 10
EIRR (%) 171 143
Economic cost benefit ratio 32 20
Sensitivity analysis was undertaken to examine the effect of changes in benefit assumptions at
ICR on economic viability. The Pasture Management Improvement Component was moderately
30
sensitive to a change in assumed benefits with the EIRR falling from 143% to 125% given a 20%
decline in Project benefits.
The project investment in Rural Advisory Services under Component 2 was both
economically and financially viable for farmers. Net incremental benefits were generated
primarily through extension advice and training to farmers which resulted in higher crop and
livestock yields. The ICR analysis estimates that the project generated EIRR of 118 percent
(compared to 195% at appraisal) and financial net incremental benefits of 61 USD per farm in
the south (compared to 121 USD at appraisal) and 132 USD per farm in the north (compared to
226 USD at appraisal).The lower incremental gross margins per farm and ha of land were caused
by lower crop yields than was estimated at appraisal.
The Component included the provision of Rural Advisory Services to farmers; funding of
Community Seed Funds (CSF) to improve the of quality seed provided to farmers (further
funding was also provided through the Food Security Component); and the development
Livestock and Veterinary Services including a Brucellosis Control Programme in sheep and
goats. At appraisal an EFA was undertaken for Rural Advisory Services and the Brucellosis
Control Program.
Rural Advisory Services. Rural advisory services were provided under the project through a
two main sets of activities:
(i) Farmer Field Schools and Special Programs involving demonstrations covering
topics including integrated pest management, soil fertility and animal husbandry, in selected
locations – these activities were undertaken through contracts with TAIC which contracted
the regional Rural Advisory Services (RAS) to implement the field work between 2008 and
2012.
(ii) Nationwide Rural Advisory Services (that is covering all aiyl okmotu) including
mainly training, advice and demonstrations but also including services such as facilitation of
group purchase of inputs and marketing. This was essentially a continuation of the provision
of advisory services previously funded under ASSP through funding of the regional RAS’s
annual budget. Under AISP, these services were initially provided through direct contracts
with RAS in 2008 and part of 2009 (essentially a continuation of financing of the RAS
budget). Following the restructuring of regional RAS (as independent foundations) and the
establishment of farmers koshuns (to procure advisory services for farmers), grants were
provided to farmers koshuns to procure a similar range of advisory services from RAS and
other smaller service providers on a competitive basis.
The number of farmers benefiting from these services changed annually with demand but for the
purposes of the EFA it is conservatively assumed that 43,717 farmers benefited consistently
through the project from these service provision arrangements. Specifically, 17,332 farmers
benefited from the farmer field schools and special programs and further 26,385 farmers
benefited from nationwide services.
The EFA at appraisal assumed that the above advisory services would serve 42,933 farmers
(clients) covering the total area of 206,000 ha of irrigated and non-irrigated land or 17% of the
31
national arable land. The analyses were based on separate models for the South and North. The
extension advice was assumed to result in yield increase of 10% in crops, a 5% in milk yields
and a 2% increase in lambing and calving rates due to improved nutrition and animal health. It
was also assumed that the adoption rate of advice would be at 25%. The rural advisory services
cost at appraisal was estimated at 8,377,347 USD. The EFA at appraisal provided estimates of
financial viability for farmers (who were assumed to contribute about 30 percent to the cost of
advisory services) and estimates of economic viability as shown in Table 2.
The EFA for ICR were prepared using the same models which were updated with the actual
figures of clients served, input prices, output prices and crop yields. The actual number of clients
served under the Rural Advisory Services is 43,717 covering the total area of 170,000 ha or 14%
of the national arable land. The actual crop yields were based on the National Statistics Agency
data, input rates and prices were provided by the ministry of agriculture and output prices are
market prices (based on Kyrgyz Agricultural Market Information Service information).The
assumptions of 5% increase in milk yields and 2% increase in lambing and calving rates were
used. The actual cost of rural advisory services at ICR is 6,800,716 USD. The Table 2 below
presents key results of the EFA at appraisal and ICR. The analysis showed healthy NPVs, IRRs
and Cost-benefit ratios. The lower incremental gross margins per farm and ha of land are caused
by lower crop yields than was estimated at appraisal.
Table 2. EFA for RAS/TAIC/FK impact at appraisal and ICR
Financial Results Appraisal ICR
SOUTH: Incremental gross margin per farm (USD) 121 61
SOUTH: Incremental gross margin per ha land area (USD) 44 32
NORTH: Incremental gross margin per farm (USD) 226 132
NORTH: Incremental gross margin per ha land area (USD) 46 24
ALL FNPV Net incremental benefits (million USD) 12 2,6
ALL FNPV Net incremental benefits per ha land area (USD) 164 66
ALL IRR (%) N/A N/A
ALL Cost benefit ratio 4 1,45
Economic Results
NPV Net incremental benefits (million USD) 9 2,2
NPV Net incremental benefits per ha land area (USD) 126 55
EIRR (%) 195 118
Economic cost benefit ratio 2 1,3
Sensitivity analysis was undertaken to examine the effect of changes in benefit assumptions at
ICR on economic viability. The Rural Advisory Services model, were highly sensitive to a
change in assumed benefits with the EIRR falling from 118% to 40% given a 20% decline in
Project benefits.
Community Seed Funds (CSF). The CSFs were successfully established under the Agricultural
Services Support Project (ASSP) (1998 to 2007) and further supported under AISP to enhance
32
the food security in the country by ensuring farmers have access to quality seed. No IRR was
calculated for the CSF component at appraisal as it was a follow-on operation to ASSP. Under
the AISP Food Security Enhancement Component farmers received quality cash crop seed
(spring/winter wheat, spring barley, potato, beans) and under the Agricultural Support Services
Component farmers received quality fodder crop seed (spring barley, lucerne, sainfoin, wheat
and soya). In case of fodder crops, farmers were liable to repay a cash equivalent of seed
borrowed and in case of cash crops they were allowed to repay in kind using 1:2 ratio for
uncleaned seed and 1:1.2 for cleaned seed. The rate of recovery was at nearly 100% except for
losses incurred due to bad weather conditions (floods, hails, frosts etc). In rare cases CSFs opted
to procure alternative crop seed (e.g. beans, soya). The Table 3 below presents information on
inputs distributed under the Food Security Enhancement Component. In total 191 CSFs and
15,727 farmers have benefited. The total area planted amounted to 22,480 ha.
Table 3. Seed and fertiliser distributed under the Food Security Enhancement Component
Quantity/Item Wheat Barley Potato Beans Fertiliser
(Note 1)
Original volume procured in 2008 1205 360 800 N/A 3133
– 2012 (tons)
Multiplied volume of seed as of 4528 1611 2671 29 N/A
end of 2013 (tons)
Note 1 Amorphous and ammonium nitrate fertiliser
The Table 4 below presents information on inputs distributed under the Agricultural Support
Services Component. In total 101 CSFs and 3,866 farmers have benefited. The total area planted
amounted to 5,161 ha.
Table 4. Seed distributed under the Agricultural Support Services Component
Quantity/Item Barley Lucerne Sainfoin Corn Wheat Soya
Original volume procured in 2009- 301 22 50 2 N/A N/A
2013 (tons)
Multiplied volume of seed as of 839 46 89 5 12 0,24
end of 2013 (tons)
In 2009-2013, the average yields attained by CSF farmers were higher than the national average
and are presented in Table 5.
Table 5.Comparison of yields achieved by CSF farmers and national average yields.
Yield/Crop Winter Spring wheat Barley Potato Lucerne Sainfoin
wheat
CSF yield (ton/ha) 2,61 2,24 2,05 22,67 9 4,5
33
National average (ton/ha) 2,27 1,97 1,86 16,03 7 3,5
Growth (%) 15 14 10 41 29 29
Finally the project investment in the Brucellosis Control Program under Component 2
yielded healthy economic and financial returns to farmers. Net incremental benefits were
generated through (i) reduced incidence of the brucellosis in animals and consequently higher
livestock productivity (reduced mortality and higher birthing rates) and (ii) reduced incidence in
humans which resulted in reduced treatment and care costs and losses from labour due to illness.
The ICR analysis estimates that the project generated an EIRR of 69% (compared to 56% at
appraisal) and financial net incremental benefits of 38 USD per farm (compared to 32 USD at
appraisal). Financial and economic returns were higher than those projected at appraisal due to
the expansion of the program from a pilot to a nationwide program.
The original BCP aimed to vaccinate sheep/goats on a pilot basis in Ak-Talaa raion of Naryn
oblast in 2008 and extend the coverage to the entire Naryn oblast in 2009. Vaccination was
complemented by a public information campaign and capacity building of the State Veterinary
Department, Veterinary Laboratories, the Veterinary Chamber and Private Vets all of which
contributed to the implementation the BCP. Additional funding from EC in 2010 allowed
coverage to be extended to cover, Issyk-Kul and Chui oblasts in 2010 and the whole country in
2011-2013. The EFA analysis at appraisal examined a 10-year BCP and was prepared for Naryn
oblast. The following assumptions were made: 80% of the flock (350,000 breeding ewes plus
young stock) would be successfully vaccinated and 80% efficacy of vaccinations achieved; the
initial infection rate was 7% (this was based on the rate in AkTala raion, the initial pilot raion,
which had a considerably higher rate of infection than the national average) and an assumed
decline in the infection rate over a 10 year period to 2% as a result of the BCP. The rate of
human infection was assumed to decline at a similar rate from 250 cases in 100,000 to 90 cases
in 100,000 by year 5 and to 70 cases by year 10 resulting in reduced treatment and care costs and
reduced loss of earnings from labour.The EFA at appraisal provided estimates of the financial
viability for farmers (who were assumed to contribute 50 percent of the cost of veterinarians fees
for vaccination in year 2 and 100 percent in year 3) and of economic viability. The total cost was
estimated at 2,223,679 USD, including vaccination costs of 1,448,029 USD (Vaccine REV1+ vet
charge).
The EFA at the ICR stage were prepared using the same model and approach used at the
appraisal. The model was updated with the following actual data: the total 13,722,363
sheep/goats were vaccinated in 2008-2013; the breeding stock was estimated at 70% of the adult
sheep population; 80% efficacy was assumed; the initial infection rate (nationwide) was 1.9% in
2008 and declined to 0.4% in 2013. The actual rate of human infection was 521 cases in 100,000
in 2008 and declined to 183 cases in 2013. Due to additional funding from EC the coverage of
brucellosis vaccinations was extended to the entire country and the total cost of the Livestock
and Veterinary Services sub-component was increased to 9,968,885 USD.The economic and
financial NPVs and IRRs per farm were calculated. The analysis showed healthy NPVs, IRRs
and cost benefit ratios. The Table 6 below presents key results of the EFA at appraisal and ICR.
Table 6. EFA for the Brucellosis Control Programme at appraisal and ICR
34
Financial Results Appraisal ICR
Incremental gross margin per ewe (USD) 4 1
Incremental gross margin per farm (USD) 32 38
FNPV Net incremental benefits (million USD) 6.2 27
FNPV Net incremental benefits per ewe (USD) 18 2.54
Economic Results
ENPV Net incremental benefits (million USD) 2.9 96
ENPV Net incremental benefits per ewe (USD) 8 9
EIRR (%) 56 69
Cost benefit ratio 5 24
Sensitivity analysis was undertaken to examine the effect of changes in benefit assumptions at
ICR on economic viability. The Brucellosis model was moderately sensitive to a change in
assumed benefits with the EIRR falling from 69% to 65% given a 20% decline in Project
benefits.
35
Annex 4. Bank Lending and Implementation Support/Supervision Processes
Table 4A.1 Task Team Members
Responsibility/
Names Title Unit specialty
Lending
Brian Bedard Sr. Livestock Specialist ECSSD Task Team Leader
Talaibek Koshmatov Operations Officer ECSSD
Natalia Cherevatova Program Assistant ECSSD Team Assistant
Maurizio Guadagni Sr. Rural Development Specialist ECSSD
Gotz Schreiber Economist & Rural Development Specialist ECSSD Consultant
Asyl Underland Rural & Social Development Specialist ECSSD Consultant
Sandra Schnellert Rural Development Specialist ECSSD Consultant
Peter Goodman Agricultural Economist ECSSD Consultant
Renee Giovarelli Rural Development & Land Reform Lawyer ECSSD Consultant
Stan Peabody Social Scientist ECSSD Consultant
John Ogallo Sr. Financial Management Specialist ECSPS
Nurbek Kurmanaliev Procurement Officer ECSPS
Hannah Koilpillai Sr. Financial Officer LOAG1
Anarkan Akerova Counsel LEGEC
Kenneth Mwenda Sr. Counsel LEGEM
Josef Nosberger Pasture Management Specialist SDC Consultant
David Lugg Agricultural economist FAO
David Colbert Environment Specialist FAO
Kees Eveleens IPM Specialist FAO Consultant
Terry Hunt Veterinary Policy & Institutions Specialist FAO Consultant
Tian Ya Country Portfolio Manager IFAD
Antoon van Engelen Livestock and Rural Development Specialist IFAD Consultant
Sarath Mananwatte Targeting Specialist IFAD Consultant
Supervision/ICR
Brian Bedard Sr. Livestock Specialist ECSAR Task Team Leader
Talaibek Koshmatov Sr. Rural Development Specialist ECSAR
Irina Goncharova Program Assistant ECSAR Team Assistant
Peter Goodman Sr. Agricultural Specialist ECSAR Task Team Leader
Gotz Schreiber Economist & Rural Development Specialist ECSAR Consultant
Brant Kirychuk Pasture Management Specialist ECSAR Consultant
Aliya Kim Financial management Analyst ECSO3
Alexander Balakov Sr. Procurement Specialist ECSO2 Procurement
Galina Alagardova Financial Management Specialist ECSO3
John Ogallo Sr. Financial Management Specialist ECSPS
Kenneth Mwenda Sr. Counsel LEGEM
Nurbek Kurmanaliev Procurement Officer ECSPS
Naushad Khan Lead Procurement Specialist ECSPS
Hannah Koilpillai Sr. Financial Officer LOAG1
Egli Ilic Finance Analyst CTRLA
Maurizio Guadagni Sr. Rural Development Specialist ECSSD Task Team Leader
36
Eustacius Betubiza Sr. Rural Finance Specialist ECSSD Task Team Leader
Talimjan Urazov Operations officer ECSAR ICR
Amy Evans Environmental Specialist ECSH2 Consultant
Michael Carroll Lead Natural Resources Management Specialist ECSAR
Jeren Kabayeva Rural Development Specialist ECSAR
Aly Rahim Social Development Specialist ECSSO
David Lugg Agricultural Economist FAO
Nico Van Wageninger Agricultural Specialist SDC Consultant
Frits Jepsen Agricultural Specialist IFAD Consultant
Maripa Kichinebatyrova Agricultural Specialist EC Consultant
Table 4A.2 Staff Time and Cost (Bank Budget Only)
Cost, including travel and
Stage of project cycle Number of staff weeks consultant costs (US$ thousand)
Lending
FY07 271.38
FY08 302.72
Total 574.10
Supervision/ICR
FY09 261.71
FY10 281.55
FY11 116.83
FY12 147.34
FY13 173.07
FY14 33.00
Total: 1013.50
Table 4A.3 Staff Time and Cost (FAO Budget)
Cost, including travel and
Stage of project cycle Number of staff weeks consultant costs (US$ thousand)
Lending
FY07 56.10
FY08 20.63
Total 76.73
Supervision/ICR
FY09 36.58
FY10 24.80
FY11 29.21
FY12 35.56
FY13 30.55
Total: 156.70
37
Annex 5. Beneficiary Survey Results
Not applicable
38
Annex 6. Stakeholder Workshop Report and Results
Not applicable
39
Annex 7. Summary of Borrower’s ICR and/or Comments on Draft ICR
А1. Pasture management related issues
The rural population, accounting for about two thirds of the country's total population, is
heavily dependent on the further agricultural growth and gains in rural incomes on the efficient
use of pastures.
STATISTICS. Over 93% of Kyrgyzstan territory is occupied with two greatest Tien-Shan and
Pamir-Alai mountain ranges, which covered by large mass of natural pastures, the total area is
9 mln.147 thousand ha and they occupy more than 85% of the total area of agricultural lands.
Only 7% of the total land area is suitable for arable cropping, while approximately 50% is
classified as pastures. The remainder is mountains, rocks and glaciers.
Pasture conditions have deteriorated significantly, as village and close-in pastures being
severely overused and degraded, while the more remote summer pastures were underutilized. As
a result, pasture productivity has declined and pasture use has become environmentally and
socially unsustainable.
One of the key problems was inconsistency of pasture management control among three
administrative layers – oblast, rayon and village.
Regional State Rayon State Administration Rural Okrug
Administration
Summer Pastures Spring-Autumn Pastures Winter Pastures
This problem is compounded by inconsistencies within the legal framework governing
pasture management. The problem can be resolved by consolidation of management
responsibility of all three types of pastures and retention of pasture revenues at the Aiyl Okrug
level, and direct and active involvement of the pasture users themselves in the pasture
management process.
А2. Livestock development related issues
Despite the significant contribution of livestock to the overall growth volume and export of
agricultural products, the productivity of this sector is small and much less than potential
productivity. The main constrains that need to be eliminated are inadequate animal nutrition,
poor animal health, that do not satisfy the requirements of farm management practices, and weak
livestock marketing and processing.
The current feed supply per animal is insufficient, covering only about half of that required.
Winter feed supply per animal has dropped by almost 60% since 1990. Many animals lose up to
40
half of their body weight during the winter, fertility is low, and mortality rate among young
animals is high.
Major diseases, such as brucellosis and foot and mouth disease, as well as parasites are
widespread, severely impact productivity and farm profitability, and pose considerable risk to
human health.
Indicators of vaccination coverage and the availability of quality veterinary drugs are
wholly inadequate. The state veterinary service suffers from numerous deficiencies, including
outdated operational approaches and management that do not fit with the changed structure and
requirements of the privatized livestock sector, while disease monitoring and reporting do not
meet the existing requirements.
The role of private veterinarians remains marginal, and the state veterinary service has yet
to adapt to the fact that primary animal health care is the best left to private service providers.
At the same time, the farmers do not yet fully perceive the veterinary services as a private
good, since this is used to be provided free of charge.
А3. Issues related to farm husbandry management
Livestock management and productivity improvements also largely depend on the farmers
levels of information, knowledge and skills in the appropriate farm management practices. The
new farmers are predominantly former collective and state farm employees, who, in general,
have limited technical skills in areas such as pasture and fodder management, feeding and
breeding practices, animal housing and health care. Extensive training and information provision
is thus needed to improve the farmers understanding of effective management practices and the
importance of adequate nutrition and health care.
А4. Food security related issues
Security of grain reserves in the Kyrgyz Republic is still remained a difficult problem.
Arable land area is very limited (7% of the total area) and depends on irrigation. Grain yield is
low and does not reach capacity (average of 2.4 tons ha).The causes of low productivity are
numerous, but the main ones are the limited access to productive resources, particularly, to high-
quality seeds, fertilizers and machinery.
B. PROJECT INITIAL AND REVISED GOALS, OBJECTIVES, COMPONENTS
Overall, the project went four times through restructuring quite difficult and long interstate
agreement and approval procedures.
B1. Initial goals, objectives, indicators and components of the Project
The higher-level Project objective was to improve the productivity and ensure sustainable
pasture management, this Project, ultimately, was designed to reduce rural poverty.
Key outcome indicators are: (i) improved pasture infrastructure and quality, (ii) expanded
access to farm and livestock support services, and (iii) increased livestock productivity.
The initial objective of the project development was stated in the following edition:
Improve the institutional and infrastructural environment for more profitable and sustainable crop
and livestock husbandry. More specifically, the project is intended to increase farmer’s
productivity, particularly of livestock farmer in the project areas and reduce animal diseases that
have a public health impact (e.g., brucellosis).
41
Initial components of the project were as follows:
Component 1: Pasture Management and Improvement
Component 2: Agricultural Support Services Development
Component 3: Project Management, Coordination, Monitoring and Evaluation
B2. The revised goals, objectives, components of the Project
In spite of the all above-listed modifications and amendments, the objective of the high level
Project was to support the Government of the Kyrgyz Republic in poverty reduction among rural
population.
The final objective of the Project was stated as follows:
«Improving institutional and infrastructural conditions for more productive, profitable and
sustainable livestock-breeding and cropping by pasture users and small farmers as well as reducing
economic consequences from zoonotic diseases in humans».
The main objectives of the Project were defined through the components such as:
Component 1 «Pasture Management and Improvement»
Component 2 «Agricultural Support Services Development»
Component 3 «Project Management, Coordination, Monitoring and Evaluation»
Component 4 «Project Management»
General conclusions on the project goals and objectives:
All changes and amendments were aimed at increasing of the amount of financing,
improvement of assigned goals and objectives and, mainly, ensuring sustainable results and
positive effects of the project.
Initial and revised goals and objectives of the project is completely conform to the national
development strategies of Kyrgyzstan and are based on the most country's priority tasks:
improvement of the natural resources management, sustainable development of livestock and
crop production, provision of adequate human and animal health, increased access of the farmers
to quality agricultural services.
C. EVALUATION OF PROJECT OUTCOMES IN ACCORDANCE WITH ITS GOALS
AND OBJECTIVES
C1. Project Input to rural poverty reduction
The Project higher level objective was to assist the KR Government in poverty reduction in
the rural sector.
According to the National Statistical Committee of the Kyrgyz Republic the poverty level in
Kyrgyzstan reduced to almost 2 times over the last 12 years. In 2000 this indicator was at the
level of 62.6% by the Republic, in 2012 the poverty rate was 38%, and extreme poverty was
4.4%.
42
The main project contributions to poverty reduction are as follows:
Fundamental change in pasture management system with devolution of pasture
management and use by pasture users;
Improved and enhanced access of poor population to all types of pastures;
Attraction and effective commitment of external and local investments in the amount
more than US$5.8 million to improve pastures;
Integrated assistance in improving the quality and accessibility of public and private
veterinary services at the local level;
Reduced brucellosis incidence in humans almost three times;
Improved and expanded access of small householders to agricultures services and
market information;
Provision of more than 19 500 small farmers by quality food and feed crop seeds and
fertilizers.
C2. EVALUATION OF PROJECT COMPONENTS OUTCOMES
C2.1. EVALUATION OF OUCTOMES OF COMOPONENT 1 «PASTURE
MANAGEMENT AND IMPROVEMENT»
This component comprised the following sub-components:
1. The legal and regulatory reform in pasture management and improvement.
2. Community-based pasture management.
3. Pasture investment grants.
C2.1.1. Sub-component «Legal and regulatory reform»
The main agreed result of sub-component «Legal and regulatory reform» was to establish an
adequate legal and regulatory framework for devolution of the responsibility for pasture
management and use to the local level.
The following Regulations has been adopted and developed by the Parliament and Jogorku
Kenesh of the Kyrgyz Republic with the technical assistance of the Project and Pasture
Department since August 2008 to 31 December 2013:
KR Law «On pastures» (№ 30 dated 26 January 2009)
GKR Regulation «On implementation measures of KR Law «On pastures» (№ 386 dated
19 June 2009) with the appropriate annexes:
GKR Regulation «On procedures of provision of pasture resource use rights in other
purposes not associated with the animal grazing» (№ 515 dated 13 September 2013) with
standard regulation and agreement.
In addition, the Land Code of the Kyrgyz Republic, the Tax Code of the Kyrgyz Republic,
the Customs Code of the KR, Administrative Responsibility Code of the KR, the Law "On Local
Self Government" have changed and amended which is intended to promote the rights and
powers of the direct and indirect pasture users, PUU, LSGB regarding the pasture management
and use.
Demarcation of pasture boundaries allowed to prevent considerably the conflicts associated
with using the pasture area not only between neighboring AOs, but also at the rayon level.
43
The cadastral works on demarcation of pasture external boundaries between AOs have
arranged and completed under the project and the preliminary state registration of pasture maps in
rayon directorates of the State Registration Service of the Kyrgyz Republic have conducted in the
territory of 440 aiyl okrugs (AO), which is more than 95% of the total number of AOs in the
Kyrgyz Republic.
More than 1000 training, consultations and meetings have been carried out throughout the
country to provide the pasture users, Jait Committees, LSG representatives with adequate
knowledge and information on adopted pasture regulations.
One of the important effects of pasture reform can be considered an increase in fees for pasture use. In
2013 the fees increased 10 times and amounted to 111 million soms in comparison with up to the
adoption of the new Law "On pastures".
The delegation from Tajikistan, Kazakhstan arrived in Kyrgyzstan with a view of
experience of our country in the consistent implementation of pasture reforms.
C2.1.2. Sub-component «Community-based management»
The main agreed outcome of the sub-component “Community-based pasture management”
was the fact that the pasture users jointly with LSG started efficiently manage pastures and use it
in environmental and socially sustainable manner. And for the successful achievement of this
result, a large-scale social mobilization and awareness campaign was carried out in all villages,
aiyl okrugs participating in the project, assisted by ARIS with the cooperation of PD, PRSG. As a
result, one PUU was established for each 454 aiyl aimaks territory at the initiative of pasture users
and they all registered in the state regional offices of the Ministry of Justice of the Kyrgyz
Republic with the legal status of Body of Territorial Public Self-Government (BTSG). And LSG
in accordance with the requirements of the Kyrgyz Republic Law "On pastures" and GKR
Regulation # 386 devolved their responsibility on pasture management and use to PUU with their
executive bodies - Jait Committees on a contractual basis.
Following receipt of such rights the representatives of each Jait Committee, LSG attended
special trainings and consultations within the Project, and Aiyl Okmotu jointly with PUU
developed and approved medium term Community Pasture Management Plan (CPMP) by local
kenesh in the medium term and annual PUP.
And currently 454 PUUs operate successfully with active functioning Jait Committees
instead of the expected 400 PUUs that indicates performing the assigned objective by 114%.
At least 400 PUUs had to develop and realize their CPMP and PUP by the end of the
project. In fact, all 454 PUUs have developed and implemented their CPMP and PUP, 400 PUUs
of which performed their plans to a satisfactory standard. The task was completed by 100%.
C2.1.3. Sub-component «Community pasture investment grants»
The main objective of this sub-component was to increase access to improved pasture
infrastructure. To achieve this result, all Jait Committees, micro-project groups (MPG) have
received the necessary project trainings and advices through ARIS. The most priority issues in
pasture improvement were primarily defined at the level of focus groups, village meetings and
microprojects (MP) have been prepared, and selected MP were included in the PUP as part of
CPMP and approved by local keneshes.
450 000 soms, including EU additional funds, were allocated to each PUU within the
Project. As a result, over 270 million soms (about 5.8 million USD) were allocated for pasture
44
improvement during the project implementation throughout the country, 202 million soms (about
4.3 million USD) of which was the project contribution, pasture users contribution - 69 million
soms (about 1.5 million USD). Contribution of communities made 34% instead of the required
25% of the total project grant.
As a result, more than 270 million soms (about 5.8 million USD) were allocated for
pasture improvement throughout the country during the project implementation, of which the
share of the project amounted to 202 million soms (about 4.3 million USD), the contribution of
pastures was 69 million soms (about 1.5 million USD). Contribution of communities amounted
to 34% instead of the required 25% of the total project grant.
In general 1003 micro-projects were implemented and all of them have been devolved to
Aiyl Okmotu. And today more than 98% (instead of the expected 85%) implemented MP are
rated as satisfactory.
The main results of investment in pastures, as expected, became improving access to distant
and remote pastures for more than 1 million pasture users and increasing graze pasture area
added for more than 432 000 ha.
C2.2. EVALUATION OF THE OUTCOMES OF THE COMPONENT 2
«AGRICULTURAL SUPPORT SERVICES DEVELOPMENT»
This component consisted of the following sub-components:
1. Rural advisory services
2. Feed crop community seed funds
3. Animal health
4. Animal feed and cropping
C2.2.1. Sub-component «Rural advisory services» (RAS)
Project support under the given sub-component was aimed at the improvement the quality,
range and coverage of rural advisory services and arrangement of conditions for direct and
decentralized contracts between advisory services and farming communities.
458 koshuun farmers (KF) were established throughout the country under the Project with
the help of ARIS in order to ensure this result. 12 636 events (focus groups, rural meetings,
report-election meetings, etc.) have been conducted with the participation of more than 266 435
people in order to involve the great masses of population in decision-making and priority needs
for advisory services during the implementation of the Project. Thanks to the efforts of ARIS
Community Development Support Officer it was conducted 4398 trainings and consultations for
35.856 member farmers of KF aimed at preparation of KF for independent tendering and
contract award.
KF awarded 3102 contracts to PK for a total amount of 80.6 million soms (about US$1.7
million) during the project implementation period of which the Project share amounted to 0.5
million soms (about 1 million USD), and input of KF members – 30.1 mln. soms (more than 0.65
million USD), that made almost 60% of the total project grant.
According to the ARIS more than 400 KF closed their activities upon project completion,
and currently about 55 KF instead of the expected 200 KF continue to operate independently.
Despite this actual result, it should be noted that the Koshuun farmers fulfilled all the project
procurement and own contributions requirements during the project implementation period.
PKFhave practices with farmers, and most of them continue to work with independent farmers
45 for the Famer between PKF.
and their groups. There was effective competition
The project also funded special programs such as (1) «Livestock and pastures» (LP), (2)
"Integrated production management" (IPM) and "Rational use of soils" (RUS), concluding a
direct contract with the TAIC, who worked on the basis of subcontracts with regional RAS.
The results of the major activities undertaken by the special "LP" program was the
organization of 168 demonstration farms, which conducted field days for 15.707 farmers, where
the farmers have learned how to draw up adequate feed ration for dairy cows. 11,426 farmers
have received trainings and advices have been provided for 1459 rural population.
According to the special RUS program 1457 field days – demonstration of RUS
technologies for 23 336 farmers were conducted in 252 demonstration sites. Also 716 training
courses on increasing of soil fertility were conducted for 8000 farmers and 2092 individual
advices were provided for 3090 rural population. The average additional income of farmers (171
farmers) per 1 hectare using RUS methods was 25 210 soms throughout the country. The largest
income was received by farmers from introduction of the method “River silt deposition”.
For example, three farmers received an additional average income per hectare by 79 430 soms
demonstrating this RUS method in Batken oblast. And in Chui oblast Badakeeva Roza, the farmer
from Jon-Aryk village of Jayil rayon, received an additional income per 1 ha by 331 500 soms using
«Biohumus» in tomato.
Implementation of IPM program allowed to 4550 farmers increase the yield of
agricultural corps from 20 to 40%. And net income in production of sheep and goats in Issyk-Kul
oblast increased to more than 90%.
C2.2.2. Sub-component «Community Seed Funds on Fodder Crops»
101 CSFFC (1754 members-farmers, 174 of them are women) were established to
increase an access of farmers/pasture users to quality
fodder crop seeds under the Project throughout the
country and 301 tons of barley seeds, 22 tons of alfalfa
seeds, 50 tons of sainfoin seeds and 2 tons of maize
seeds were procured on the basis of tender and
distributed for a total amount of 245 443 USD.
All CSF on fodder crops returned and distributed
to 1461 members-farmers of CSF: 362.3 t spring barley
seeds, 12.1 t alfalfa seeds, 17 t sainfoin seeds, 14.0 t spring wheat seeds, and 0.9 t maize seeds.
The share of sustainable and increased Community Seed Funds was 74 CSF as of 1 January 2014
instead of planned 80, i.e. this indicator was carried out to 92,5%.
C2.2.3. Sub-component «Animal health»
The following results had to be achieved under the component:
(i)Strengthening the capacity of State Veterinary Department (SVD) in veterinary
surveillance and monitoring;
46
(ii) Increasing awareness and development of capacity of rural communities in disease
control;
(iii) Increasing of the coverage of vaccination and testing program by target diseases (foot
and mouth disease, anthrax, rabies, brucellosis, sheep pox, PPR, echinococcosis,
tuberculosis);
(iv) Sustainable reduction of incidence and spread of infectious diseases in animals, and
zoonotic diseases in humans.
(i) Strengthening the capacity of SVD in veterinary surveillance and monitoring
The strategies on control of four zoonotic diseases such as brucellosis, echinococcosis,
rabies and anthrax were developed and approved at the level of the Ministry of Agriculture and
Ministry of Health of the Kyrgyz Republic under the Project with the active involvement of
public and private veterinary services, international consultants. The strategies on control of two
transboundary animal diseases, namely FMD and PPR have also been developed and approved at
the level of the Ministry of Agriculture. The specific plans of special events and communications
were drawn up and the equipment has been purchased for providing the "cold" chain during
transportation and storage of vaccines and veterinary drugs from the center to the villages,
quality vaccines have been procured against above six animal diseases.
KSRVI, RCVD were provided with modern laboratory equipment, office equipment,
reagents, diagnostics, standard operating procedures for qualitative research and veterinary
diagnostics.
National Animal Disease Information System (NADIS) with appropriate modules
VAXIT, RADIS was established as a basis for controlling the movement of vaccines and to
ensure prompt and accurate information about animal diseases. The responsible specialists of all
SVD directorates attended special training courses on using NADIS and all SVD rayon offices
were provided with appropriate office equipment. Currently, a new project, IFAD is actively
supported the further implementation of this system while ensuring continued access to the
Internet.
The initial communication has been established between veterinary and medical services
on exchange of information, data on animal and human diseases and basis for an active
cooperation in the further implementation of strategies for the control of brucellosis and
echinococcosis.
The draft law "On Veterinary" was developed in a new edition under the Project in order
to improve the legal framework, and after much discussions, the objective and subjective
obstacles this Law was approved by by the Parliament of the Kyrgyz Republic in the first reading
at the end of May this year.
Project has provided considerable financial, technical, expert advice in enhancing
logistics, personnel, management capacity of SVD/SIVPS in ensuring the epizootic welfare
when regular state lack of funding even priority needs of veterinary services. In the following
attachment you can further be informed about the project assistance.
The APIU concluded a direct contract with the OIE under the new IFAD project, and the
OIE experts will determine the current rating capacity of the State Veterinary Service in carrying
out its functions in the nearest future.
The project has also provided substantial financial and material, advisory and
informational assistance to strengthen the capacity of private veterinary services. For example,
47
since the project launch as of December 31, 2012 more than US$1.79 million were allocated
from AISP funds for the services of the private veterinarians in vaccination of animals against
brucellosis, 1122 sets of the veterinary equipment and veterinary drugs, thermo bags, forceps,
personal protective equipment were procured for a total amount more than US$1 million. As a
result of this support the number of licensed PVS has been increased by more than 60% (in 2007
- 604, and in 2012 - 963).
Electronic database of almost all veterinary specialists of Kyrgyzstan was established in
Kyrgyzstan for the first time and actively maintained by the Veterinary Chamber on the basis of
studies conducted by TAIC in the framework of AISP.
(ii) Increasing of public awareness and capacity of rural communities in disease control
A nation-wide public information campaign has been conducted throughout the country
to increase knowledge and awareness in the control of zoonotic diseases. For example, it was
conducted 802 training courses for 49,984 students, 1116 training courses for 36,201 farmers, 61
training courses for 926 distributors of meat and dairy products, and about 91,700 people were
provided with information and handouts on zoonotic diseases under a single contract with RAS
in 39 rayons of the country.
Under the agreement 7 social mobilizers were carried out social mobilization activities
and public awareness on zoonotic diseases, such as PPR, FMD throughout the country, which
were attended by more than 135 thousand people.
The Project put an emphasis on the issue and dissemination of printed and video
materials, cartoons, television and radio broadcasts, and publications in printed press.
The Community Fund «Rural Development Fund» conducted a research to assess the
level of public knowledge about zoonotic diseases in order to evaluate the communication
activities of the Project. And more than 70% of 800 respondents showed a good level of zoonotic
diseases knowledge.
(iii-iv) Increasing the coverage of vaccination and testing program on targeted diseases.
Sustainable decrease of incidence and distribution of infectious diseases in animals, and
zoonotic diseases – in humans.
The main effort of the Project was aimed at combating brucellosis, which began in the
pilot rayon of Naryn oblast with further expansion throughout the country. Since August 2008 to
December 31, 2012 more than 12 million 257 thousand sheep and goats were vaccinated in
Kyrgyzstan. And according to official data of the Ministry of Health of KR the incidence of
brucellosis in humans has reduced by nearly four times. The results of animal serological
monitoring conducted by KSRVI showed that the incidence of brucellosis among sheep and
goats and cattle has been reduced by almost three times.
Thanks to the additional financing of EU the vaccination covered another four animal
diseases and dehelmintization of dogs. The detailed information of vaccine procurement under
the whole Project including REV-1 against brucellosis is represented in the table below.
48
Table 1. Procurement of vaccines and «Azinox» anthelminthic
Description Unit Quantity Amount (USD)
1. Brucellosis vaccine REV-1 dose 11 890 000 974 450
2. Anthrax vaccine dose 5 086 000 54 630
3. Rabies vaccine dose 632 500 23 814
4. Anthelminthic to control echinococcosis tablet 5 175 000 277 927
5. Vaccine against sheep and goat pox dose 2 137 200 126 095
6. FMD vaccine dose 946 673 584 117
Total: 2 041 033
C2.2.4. Sub-component «Animal Feeding and Cropping»
Special extension program in animal husbandry and crop production: This program
included (i) mass distribution of information on animal husbandry and crop production; (ii) field
demonstrations on animal husbandry and sustainable use of land resources; and (iii) intensive
preparation on animal husbandry and crop production through field farmer schools. According
to the contract the TAIC issued monthly electronic magazine on animal products, which was
distributed among 20 local advisory agencies, and issued six technical newsletters over the radio
and newspaper. 342 demonstrations were established as a basis for more than 300 field days and
trainings with participation of 4200 farmers. 45 farmer field schools were opened and the
training courses have conducted for 45 trainings to educate of 900 farmers.
Training of JC PUU on preparation for drought: A contract was concluded with the TAIC,
which in turn concluded the sub-contracts with the regional RAS, and the trainings and
consultations were conducted for all the leaders of the Jait Committees on preparation and
implementation of CPMP and PUP.
Pasture investment grants: see above item C2.1.3.
Community Seed Funds: the Project provided 216 tons of alfalfa, wheat and barley, 100
tons of seed potato and 1112 tons of fertilizers for 138 existing CSF and 55 new CSF, including
food crops (wheat, potato, vegetables) and fodder crops (barley, sainfoin, alfalfa). The CSF
program was also aimed at stimulation of demand on quality seeds, demonstrating the
advantages. All seeds provided for CSF were procured at the local seed farmers.
C2.3. EVALUATION OF THE RESULTS OF COMPONENT 3 «PROJECT
MANAGEMENT»
Agreed outcome of this component is to achieve effective project management and the
target value is timely and complete reports on project status, satisfactory audit and satisfactory
evaluation of the surveillance results.
The APIU served as the main agency of the project under the AISP that provided overall
coordination and monitoring of implementation progress, and was also responsible for the
financial management and procurement.
ARIS was responsible for mobilization of communities, education and strengthening the
capacity, as well as allocation of pasture investment grants for service provision and expansion
of knowledge and skills of appropriate communities and/or local agencies, as well as for
reporting and audit of these grants.
49
Project progress and implementation has been evaluated on the basis of the results and
indicators set out by Financial Agreements of the Project.
Finance and Audit. Financial management (FM) mechanisms for the project including
accounting, budgeting and planning, reporting, internal control system, external audits, and flow
of funds were satisfactory during the project. And commitment on audit has also been performed
satisfactorily: audit reports were submitted in time and the auditor issued an unconditional
conclusion in a letter to the leadership of the project that the financial statements of the project
do not have any serious problems associated with the internal control. Whereas it was necessary
to change the service provider after updating the list of approved auditors by the Bank there was
a delay in providing the audit report for 2011. Audit reports for 2012 and 2013 were submitted in
time and considered satisfactory to the Bank.
The potential of both executive bodies, APIU and ARIS, by financial management,
including arrangement and staff assistance, was satisfactory.
Procurements. APIU was responsible for procurement. All procurements were carried
with the World Bank’s “Procurement Guidelines”, under IBRD Loans and IDA Credits, and the
provisions of Financial Agreement. 308 contracts were concluded for the whole period of the
project at the level of APIU, including supply of goods - 176 (57%), the provision of consulting
services - 121 (39%) and execution of works - 11 (4%).
Procurement indicators of all missions of the WB assessed as satisfactory.
Monitoring and evaluation. APIU, despite the limited human and financial resources, in
cooperation with other executive bodies of the Project was able to create an operating system of
M&E and collected enough good quantitative and qualitative information on the results of the
project. With the international and local technical assistance for the first time in Kyrgyzstan for
SVD/SIVPS were established: (a) information (electronic) animal disease monitoring system; (b)
electronic database of almost all veterinary specialists; (c) automated information management
system - at the level of APIU.
M&E activities of TAIC, RAS, PU "CSF", Koshuun Farmers, effectiveness of
communication campaigns on dissemination animal disease control information have been
carried out under the Project with the involvement of the external contractors. Two field
specialists of APIU conducted regular supervision on selected private companies in
implementation of cadastral works on demarcation of the external pasture boundaries.
ARIS monitored and evaluated the activities of JC/PUU, MPG, Koshuun Farmers on a
regular basis.
The data on collection of pasture use fees were accumulated by each PPU at the level of
PD.
ARIS veterinary experts kept under constant control the progress of the program against
brucellosis and vaccination coverage of five other animal diseases. The electronic data on
zoonotic diseases in humans, especially brucellosis, have been received from the Ministry of
Health of the Kyrgyz Republic and analyzed on a quarterly basis.
APIU regularly monitored the targeted and efficient use of vaccines, veterinary
equipment, seeds and fertilizers and other goods procured under the Project for public
institutions and its other target groups.
Descriptive and financial reports to the relevant government institutions, donors have
been prepared on a quarterly basis.
At the same time, as noted in the report of IDA the M&E system did not fully reflect
all the results of the project upon project completion because of the many revisions and
50
restructuring of different components, although it was detailed and time-consuming.
Introduction and elimination of several indicators created confusion in APIU about how monitor
the indicators, so M&E system has not maintained constantly, and the impact of the project
activities was not evaluated on a regular basis.
Substantial financial resources were allocated for further improvement of the M&E
system under the IFAD and the World Bank-financed new projects.
C2.4. EVALUATION OF THE RESULTS OF COMPONENT 4 «Food Security»
The improvement of food security of poor households in the program area was planned
under this component. 191 new CSF on food crops covering 5912 small farmers, including 576
women were established to fulfill this assignment under the overall coordination and
responsibility of the PU "CSF" throughout the country.
Table 2. Procurement of seeds and fertilizers by years
Seeds and fertilizers 2008+2009 2010 2011 2012 Total
Winter wheat 350 300 - 150 800
Spring wheat 200 - 140 65 405
Spring barley 240 - 60 60 360
Seed potato 100 - 600 100 800
Ammophos 504 - 167 776 1446
Ammonium nitrate 750 300 60 577 1687
Amount (USD) 1 499 028 221 980 790 523 737 771 3 249 302
The average yield of wheat and barley of farmers-members of CSF is 2.6-3.1 t/ha higher
than the non-farmers-members of CSF, and 1.6-2.1 t/ha higher than the average yield according
to the National Statistical Committee of the Kyrgyz Republic.
In addition to CSF, three programs have been implemented in the framework of the
components: the provision of seed potatoes for poor families (200 tons of seed potatoes were
distributed to 5 000 families in 508 villages,); support to vulnerable women's groups (more than
300 families headed by women have received vegetable seeds); support for vulnerable families
of migrant workers (1490 migrant families received vegetable seeds and trainings).
The program on improving the institutional capacity of the State Material Reserve Fund
was implemented under the project. The laboratory offices were repaired in the amount of
1014,3 thousand soms. It was established the laboratory equipment at the cost of 161 812,66
Euro. The laboratory personnel were trained. Currently the laboratory operates and conducts the
laboratory analysis of the wheat and flour quality.
D. EVALUATION OF RESULTS OF RECEIPIENT AND EXECUTORS OF THE
PROJECT. LESSONS LEARNED, CONCLUSIONS. SOME CONCLUSIONS AND
SUGGESTIONS.
51
Jogorku Kenesh (the Parliament) KR. JK KR provided constant support for the timely
adoption of the Law of the KR on ratification and restructuring of financial agreements by AISP.
The Parliament provided special support in adoption of a number of revolutionary Regulations
on pasture management.
The Government of KR (GKR). GKR, having defined AISP as one of the priority
projects, provided continued assistance in the successful negotiations between the Kyrgyz
Republic and IDA, the signing and approval of the Financial Agreements by AISP at the level of
JK KR. GKR fulfilled the liabilities through the Ministry of Finance of the Kyrgyz Republic by
100% under co-financing of AISP despite some delays in co-financing of the Project regarding
the EU additional financing. The total contribution of GKR in monetary terms amounted to more
than US$1.2 million, representing 4% of the total project costs. As Parliament, GKR contributed
to the preparation and release of the Regulations on pastures management and use. At the same
time, long reforms in GKR and private veterinary services and often changes their leaders
created some difficulties in updating the veterinary legislation, strengthening the management
capacity of the state veterinary services.
The Ministry of Agriculture and Melioration of the Kyrgyz Republic (MOAM).
MOAM as leading implementing agency of the Project regularly provided substantial assistance
in the work of the Parliament of the Kyrgyz Republic, the GKR, the direct contractors of the
Project and Donor missions. First person MSKHM, especially N. Duisheev as National
Coordinator and the State Secretary of the Ministry, always resolve issues related to the approval
of annual work plans, budgets and procurement plans of the Project, the provision of additional
classrooms for new employees. The MOAM leaders, particularly N.Duisheev as national
coordinator of the Project and Secretary of State of the Ministry, always promptly decided issues
concerning approval of annual work plans, budgets and project procurement plans, provision
with additional offices for new employees. At the same time the frequent changes of Ministers
created certain difficulties in the ongoing project. And direct work with each new leader and
support of the Bank team helped in the rapid establishment of a good working relationship. It is
necessary to pay special attention and provide adequate financial and technical assistance to
strengthen the capacity of both central agencies and ministries РУАР.
ARIS. There were no particular disagreements and conflicts in working with ARIS.
Agency as one of the leading contractor of the Project performed their duties satisfactorily and
submitted all necessary reports, information for their common analysis and joint reports to the
APIU in proper time. Specialists from the ARIS central and regional offices, its field staff
(EPRO) conducted extensive work in the mobilization and development of PUU, KF and
coordination their grant activities. Under the new projects the ARIS need to intensify efforts in
organizational development of PUU, improving joint M&E systems, quality control of field work.
Pasture Department (PD). PD team under general and professional governance of the
Director Mr A.Egemberdiev and with the assistance of the Project and the Bank team managed
to carry out the pasture reforms. Under the new projects the leadership of Pasture Department
should focus on strengthening the capacity of their own regional structures, training of young
managers on pasture management, creation and development of the capacity of PUU rayon
associations, strengthening the partnership relations with РУАР, ГАООСЛХ and other
international projects, evaluation of pasture state at the national level.
State Inspectorate for Veterinary and Phyto-Sanitary Security under the GKR
(SIVPS). Thanks to the assistance of the Project and the professional team of the Bank, in
particular Mr. B.Bedard and Mr P.Goodman, the logistics, human resources and management
52
capacity of SVD/SIVPS both at the central and rayon and oblast levels has significantly
improved as compared to the first years of the Project implementation. It happened despite the
structural reorganization of state veterinary service and often changes of its leaders. The
partnership relations of SIVPS with PVS, the farmers and health care services have improved;
vaccination plans are prepared at a better level, epizootic events are provided, the "cold" chain is
observed in the transportation and storage of vaccines and veterinary drugs there is a progress in
use of NADIS, RADIS.
At the same time, the missing of an updated strategic plan for the development of the
veterinary services, the long delay in the adoption of the new Law "On Veterinary" and other
sub-legislative acts, regulations, and most importantly, insufficiency of government financing in
providing with the quality vaccines and veterinary preparations the state and private veterinary
services to control particularly dangerous animal diseases that strongly constrain the
implementation of fundamental reforms in the veterinary field and improving the quality and
availability of veterinary services at the local level.
Other project contractors. The other contractors of various components and sub-
components of the project were: the Veterinary Chamber, PU "CSF", KSRVI, RCVD, KSRLPI,
KNAU, TAIC, RAS, and others. All of them will receive substantial assistance of the new IFAD
and WB projects to improve their logistics, personnel and management capacity. In general, all
the above mentioned organization they performed all their roles and functions at a satisfactory
level. New projects IFAD and the World Bank many of them will continue to support and they
will be carried out certain roles and responsibilities in achieving the goals and objectives of the
project. Most likely, all of the above organizations have to perform deep institutional analyze
independently and to define its strong and weak sides, to develop long-term, medium-term and
operational plans for the development and improve the quality and accessibility of services.
Communities. Project at the community level mainly worked with PUU and their
executive bodies – Jait Committees, animal health groups, the private veterinarians (PV),
koshuun farmers, small farmers-members of CSF, micro-project groups, vulnerable groups of
women, LSG and others. All of the above target groups of the project received both training,
advisory information, and financial, technical and material assistance. The access was expanded
for millions of pasture users to all types of pastures, the small farmers, women's groups have
improved their food security, PV were equipped with a new veterinary equipment, drugs, they
received more than 1.7 million USD for vaccination of sheep and goats against brucellosis, etc.
In general, it was improved the local capacity to manage and use of pastures, livestock and crop
development, animal of human and health care. And it is necessary to continue systematic and
integrated work in all directions under the AISP with active involvement of the rural and urban
communities, LSG, government agencies, public and private organizations at all levels.
G. EVALUATION OF RESULTS OF THE WORLD BANK ACTIVITIES AND OTHER
DONORS PARTICIPATED IN CO-FINANCING OF THE PROJECT
The results of activities of the World Bank teams, EU, IFAD in providing technical,
advisory, supervisory assistance in the preparation and implementation of the Project by its direct
executors are valued at a high level.
All team members of the Bank: managers, coordinators components, leading experts in
financial management, procurement, national experts constantly provide consulting, technical,
information assistance at all stages of project preparation, implementation and the successful
achievement of its goals and objectives.
53
Such assistance has been provided during donor missions through video conferences, via
emails, telephone communication.
Difficulties associated with the procurement of quality vaccines, the reorganization of the
Pasture Department, adoption of Regulation on pastures and veterinary have been resolved
through meetings, negotiations at the level of the Ministry, Government of the Kyrgyz Republic,
Deputies of Parliament of the Kyrgyz Republic.
Plans and reports on financial management, procurement, audit, and all projects were
considered and approved by the Bank in a timely manner.
After each mission, Video Conference and other meetings and negotiations, the Bank
team timely provided memos, constructive comments, recommendations and suggestions.
The management of the Bank team has provided special assistance to improve the M&E
system, coordinate the implementing the Project with other donors, attract new investment in the
project, prepare and conduct of all project restructuring agreement.
54
Annex 8. Comments of Co-financiers and Other Partners/Stakeholders
55
Annex 9. List of Supporting Documents
1) Project Appraisal Document of March 20, 2008 (Report # 43107-KG)
2) Financing Agreement between Kyrgyz Republic and IDA, H371 KG, June 20, 2008
3) Financing Agreement between Kyrgyz Republic and IDA, H390 KG, June 20, 2008
4) EU Food Crisis Rapid Response Facility, Grant NoTF096043, October 9, 2010
5) Project Restructuring Papers:
- Restructuring Paper of December 15, 2011 (Report # 65902-KG)
- Restructuring Paper of April 4, 2013 (Report #RES9842)
6) Aide-mémoires for the missions of:
- January 27–February 5, 2009
- September 21–October 2, 2009
- March 15–April 2, 2010
- September 13–November 13, 2010
- May 16–June 3, 2011
- November 6–December 9, 2011
- June 13–July 13, 2012
- January 16–30, 2013
7) Implementation Status and Results Reports (sequence #1–#9).
8) Country Partnership Strategy for the Kyrgyz Republic for the period FY14–FY17 (June
24, 2013; Report # 78500-KG)
9) European Union Food Crisis Rapid Response Facility, Final Report for the Agricultural
Investment and Services Project (AISP) (EUFRF P096993)
10) APIU of MOAM, AISP General Report on Completed Activities
11) Newsletter of APIU, January 2014
12) Pasture Boundaries Demarcation Management and Conflict Resolutions, Report by
Zahifa Omorbekova, FAO, March 10-31, 2013
56
72E 74E 76E 78E 80E
K A Z A K H S TA N 44N
KYRGYZ
REPUBLIC
To
To Ushtobe
Burylbaytal To
Panfilov
Chu
BISHKEK
ts.
u M
Kara-Balta Tokmok ata Tyup
Kirov ey -Al Cholpon-Ata
To
Shymkent
T
Talas
alas CHUI K ung Karakol
Balykchi Lake Issyk-Kul
Peak Pobedy
TA L A S Tunuk
ISSYK-KUL 7439 m
Barskaun Enilchek 42N
42N
tkal
ha Toktogul Toktogul
C Chaek
Reservoir Shyirak
JALAL-ABAD T i Lake Sonkul
a n n
S h a
Kara-Kul Kara-Say
N a ry n
Tash-Kumyr Nar yn
Naryn
U Z B E K I S TAN NARYN
At-Bashy
To
Tashkent
Jalal-Abad say
Ak
Lake 0 25 50 75 100 Kilometers
Charyi-Kel'
Kurs
hab
Osh
0 25 50 75 Miles
78E 80E
Gul'cha
To Kyzyl-Kiya
Bukhoro
40N
Sulyukta OSH 40N
Batken
KYRGYZ REPUBLIC
B AT K E N Sary-Tash
To
Daraut- K
yz yl Suu Hotan CHINA SELECTED CITIES AND TOWNS
Korgan OBLAST CAPITALS
NATIONAL CAPITAL
RIVERS
TA J I K I S TA N MAIN ROADS
To
Murghab This map was produced by the Map Design Unit of The World Bank. RAILROADS
SEPTEMBER 2004
IBRD 33430
The boundaries, colors, denominations and any other information
shown on this map do not imply, on the part of The World Bank OBLAST BOUNDARIES
Group, any judgment on the legal status of any territory, or any
endorsement or acceptance of such boundaries.
INTERNATIONAL BOUNDARIES
70E 72E 74E 76E