The World Bank Report No: ISR9053 Implementation Status & Results Cameroon Agricultural Competitiveness Project (P112635) Public Disclosure Copy Operation Name: Agricultural Competitiveness Project (P112635) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 28-Feb-2013 Country: Cameroon Approval FY: 2009 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 18-Jun-2009 Original Closing Date 30-Nov-2015 Planned Mid Term Review Date 12-Nov-2012 Last Archived ISR Date 23-Jul-2012 Effectiveness Date 29-Jan-2010 Revised Closing Date 30-Nov-2015 Actual Mid Term Review Date 03-Dec-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) Increase the competitiveness of beneficiary producer organizations working on target value chains. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Rehabilitation of Key Rural Infrastructure 21.50 Economic Partnerships 22.70 Institutional Support and Capacity Development 5.00 Project Coordination, Monitoring, and Evaluation 7.40 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview 1. This ISR has been updated based preliminary on findings of the Impact Evaluation (IE) and Beneficiary Assessment (BF) studies, and of the Mid-Term Review (MTR) that was jointly implemented by the Bank and the Government from December 3-19, 2012. Implementation progress of the two pilot projects (on fully washed coffee and processing of cassava) has been also assessed. Those two pilot projects have been financed jointly by the IDA Credit and a Bank-executed TF, the All ACP Agricultural Commodities Program (AAACP). However, this ISR is an Interim ISR since the rice irrigated perimeters question is still under review jointly by the Government and the Bank and the final conclusions and Page 1 of 7 The World Bank Report No: ISR9053 decisions on this dossier are pending. Final ISR will be prepared when the review of the rice perimeters ends and final decision is taken, and will include final outcomes of IE and BA and results framework with updates (likely on indicators, targets, milestones and ratings). For more details, see Interim Aide Memoire and Management Letter enclosed to the ISR. 2. The overall status of the Project is rated as satisfactory (S), based on the implementation progress (as presented in paragraph 4) achieved.. The disbursement rate for the IDA Public Disclosure Copy credit had reached 30 percent on December 19, 2012. Based on the forecast prepared by the PCU, disbursement will increase up to around 50 percent by June 2013. Disbursement is still relatively slow compared to the projections made at the time of appraisal, mainly because the important delay in the implementation of Component 1 on Rehabilitation of Key Rural Infrastructures that accounts for 35.8 percent (US$21.5 million) of the IDA credit. As raised in the previous ISRs, original implementation plan for Component 1 is over ambitious and unrealistic. In fact, the Project document calls for the rehabilitation of key rural infrastructure to begin in Year 1, but the rehabilitation work cannot begin until preliminary studies (respectively feasibility and detailed technical studies) are completed while those studies were not considered in the implementation schedule. Preliminary studies for the rehabilitation of rice irrigated perimeters in the SEMRY (''Société d’Expansion et de Modernisation de la Riziculture de Yagoua'') area have been fully completed and delivered only in November 2012 but not yet for Rehabilitation of rice perimeters in the area of the UNVDA (Upper Nun Valley Development Authority), and works for the rehabilitation of 50 km of rural roads have started in November 2012; so disbursement must necessarily remain low during an initial period. Eventually, the budget (US$58 million) coming out of detailed studies for full rehabilitation of the rice irrigated perimeters is far higher than the initial costs estimate (US$8.7 million) which is another important issue. 3. Progress toward the achievement of the Project Development Objectives (PDO) is moderately satisfactory (MS). The final target yields have been achieved at levels of 93 percent for rice (target: 6.10 tons per ha, result: 5.2 tons per ha) and 92.6 percent for maize (target: 3 tons per ha, result: 2.2.78 tons per ha). The final target of two Project Outcomes Indicators (POIs), namely ''Increase in value of selected market/traded products in targeted areas'' and ''Reduction of post-harvest losses from supported Producer Organizations (POs) with access to the new transport infrastructure'' are not yet available but are being assessed by the IE. Final target yields for Palm oil and Plantain cannot be measured now because the growth and production cycle of these species are quite long compared to annual species (rice and maize) and the only two years of implementation of Sub-Projects (SPs); the Project is demand-driven, for that reason only one SP has been financed in 2012 for Palm oil. Although indicators for animal value chains have not been provided in the Project Results Framework, the team has collected the information and data has showed that livestock production has improved under financed SPs: (i) average annual pig live weight: baseline: 40 kg/m2, result: 60.23 kg (150 percent); (ii) average annual poultry live weight: baseline: 21.63 kg/m2, result: 45.23 kg/m2 (209 percent); and (iii) average annual egg production: baseline: 198 eggs per hen, result: 205 eggs per hen (103 percent). 4. Overall implementation progress is still satisfactory (S), as significant progress has been achieved: (i) 100 percent of POs (744 POs out of the 744 financed) adopted a business compared to the target of 70 (achieved at 143 percent); (ii) 536 POs engaged in economic partnerships compared to the final target of 1000 ( achieved at 53.6 percent); (iii) 795 SPs have been presented by POs compared to the final target of 2000 (achieved at 39.75 percent); (iv) 744 SPs have been approved (and agreements signed), compared to the final target of 1000 SPs (achieved at 74.4 percent); (v) 50 percent of POs in targeted areas are satisfied with support services received from apex POs compared to the final target of 80 percent (achieved at 62.5 per cent); (vi) 267 POs receiving support services through apex POs compared to the final target of 500 POs (achieved at 53.4 percent); (vii) 87 percent of POs managed effectively (hold regular meeting, record their decision, open and manage a bank account and have regularly elected officials) compared to the target of 80 percent (achieved at 109 percent); (viii) 700 tons of annual certified seeds produced against a final target of 500 tons (achieved at 140 percent). Data are being monitored by the IE and BA for two Intermediate Outcomes Indicators (IOIs): ''SPs profitable (positive Gross Profit) 1 year after completion'' and ''Unqualified technical and safeguards audits''. Data are not available for IOIs of Component 1 due to the delay in the implementation of that component. 5. Thanks to local forums with POs, suppliers and buyers that have been launched and being facilitated by the Project Regional Coordination Units since 2011, POs have made good Public Disclosure Copy progress in establishing 662 commercial partnerships and 199 contracts marketing contracts respectively with suppliers and buyers to get inputs (fertilizers, seeds, small agricultural equipment) and sell their products (maize, rice, poultry, pig). Thanks to the support of the project through the provision of advices and training (technical and financial management) and investments, POs are not only making better technical and financial results but also paying entirely rental fee/services royalty to SEMRY. Moreover, since the September 2011 national forum focusing on access (that was initiated by the Bank team and organized by the Project) to rural finance are being implemented. In addition, practical solutions to the problem of lack of access to finance rural producers that are being supported within the Project. With the facilitation of the project, about 48 conventions have been signed between POs and microfinance institutions to raise a credit in the total amount of more than CFA176 million through the signed contracts. It is important to mention in this ISR that the organization of that national forum on access to rural finance was recommended by the January 2011 supervision and support mission to the Project. 6. In addition, the Project has contributed to the employment of more than 30,000 people. This figure includes employment generated through the financing and implementation of the SPs for POs, as well as jobs created for local consultants and service providers (about 900 people). Outcomes of the IE and BA will provide more accurate information with regard to job creation. Page 2 of 7 The World Bank Report No: ISR9053 7. To conclude, the MTR reassessed deeply and comprehensively PDO as well as Rehabilitation of Rural Infrastructure (RRI) and concluded: (i) PDO is still relevant but lacks realism in milestones and targets for RRI and Palm Oil value chain; and (i i) based on the new roadmap for the rehabilitation of rural roads prepared by the Ministry of Public Works, rehabilitation of rural roads is feasible and will be completed by December 2014, (iii) based on the outcomes of the detailed studies, Rehabilitation of Rice Irrigated Perimeters (RRIP) is not feasible by the actual Project's resources because (a) final costs are far high compared to the initial budget and to the IDA amount, and (b) rehabilitation will last five years, Public Disclosure Copy meaning to be completed not before 2018 three years after the project closing date on November 30, 2015. The Project cannot fully satisfy its original objectives that relate to RRIP (however, they were not properly assessed) and by focusing on institutional support to SEMRY and UNVDA, about 50-70% of the objectives could be achieved. Therefore, with regard to RRIP, based on preliminary conclusions of the MTR, the following option seems to be suitable for the Government: drop down rehabilitation of rice perimeters and reallocate funds to the institutional support of SEMRY and UNVDA based on the recommendations of the institutional and strategic audit (already done for UNVDA and to be carry out for SEMRY) that will define the new shape of SEMRY and UNVDA (missions and responsibilities, organization, staffing, equipment, management, budget, etc.) which has capacity to maintain 11,500 ha of rice perimeters and provide key agricultural works to farmers. Based on the above, the MTR concluded that the Project is to be restructured. The team remains confident that the IDA credit will be fully disbursed by the Project closing date on November 30, 2015 if the necessary measures and adjustment (restructuring) are undertaken. Locations Country First Administrative Division Location Planned Actual Cameroon South Province South Region Cameroon West Province West Region Cameroon North-West Province North-West Region Cameroon North Region North Region Cameroon Littoral Province Littoral Region Cameroon Far North Province Far North Region Cameroon Centre Region Centre Region Cameroon Adamaoua Region Adamaoua Region Results Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Increase in the value of sales from Producer Percentage Value 0.00 0.00 20.00 Organizations supported by the Proejct Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Awaiting outcomes of the IE which is near completion. Reduction of post-harvest losses from Percentage Value 0.00 0.00 20.00 supported POs with access to the new Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 transport infrastructures Comments Awaiting outcomes of the IE which is near completion. Page 3 of 7 The World Bank Report No: ISR9053 Increase in average rice yields in the Number Value 5.20 5.66 6.10 rehabilitated irrigated areas (tons/ha) Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Target value reached at 92 Public Disclosure Copy percent. Increase in crop yields for three other targeted Number Value 2.50 2.78 3.00 crop value chains (tons/ha) Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Based on preliminary data for maize as surveys are in progress. Maize Number Value 2.50 2.78 3.00 Sub Type Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Breakdown Comments Based on preliminary data for maize as surveys are in progress. Plantain Number Value 6.50 6.50 7.50 Sub Type Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Breakdown Comments Too early to measure towards the growth and production cycle of plantain. Palm oil Number Value 1.50 4.20 2.10 Sub Type Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Breakdown Comments Too early to measure towards the growth and production cycle of palm oil. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Reduction in transportation time to closest Percentage Value 0.00 0.00 20.00 market Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Public Disclosure Copy Comments Work on rural roads has just started and not yet completed. Increase in rice production in rehabilitated Number Value 45000.00 45000.00 90000.00 perimeters (tons) Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Rehabilitation of rice perimeters is not feasible by the actual project resources and state. Page 4 of 7 The World Bank Report No: ISR9053 Roads rehabilitated, Rural Kilometers Value 0.00 0.00 500.00 Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Rehabilitation of 50 km is Public Disclosure Copy underway. Irrigation area rehabilitated (ha) Number Value 0.00 0.00 11500.00 Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Rehabilitation of rice perimeters is not feasible by the actual project resources and state. Sub-projects profitable (positive gross profit) 1 Percentage Value 0.00 0.00 80.00 year after completion Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Sub-projects not yet completed; waiting outcomes of IE and BA. Unqualified technical and safeguards audits Percentage Value 0.00 100.00 70.00 Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Awaiting outcomes of ongoing IE and BA. POs engaged in economic partnerships Number Value 0.00 536.00 1000.00 Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Sub-projects approved Number Value 0.00 744.00 1000.00 Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments POs in targeted areas satisfed with support Percentage Value 0.00 50.00 80.00 services received from apex organizations Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Final data to be provided by Public Disclosure Copy the BA. POs receiving support services through apex Number Value 0.00 267.00 500.00 organizations Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Final data to be provided by the BA. POs managed effectively (hold regular Percentage Value 0.00 87.30 80.00 meeting, record their decision, open and Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 manage a bank account and have regularly Comments Final data to be provided by elected officials) the IE and BA. Page 5 of 7 The World Bank Report No: ISR9053 Incremental volume of annual certified seeds Number Value 0.00 700.00 500.00 produced (tons) Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Based on results from rice Public Disclosure Copy and maize sub-projects. Sub-projects presented Number Value 0.00 795.00 2000.00 Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments Target value reached at 38 percent. POs aopting business plans Percentage Value 0.00 100.00 70.00 Date 30-Jun-2009 03-Dec-2012 30-Nov-2015 Comments 744 POs out of 744 for which sub-projects have been approved have adopted a satisfactory business plan. Data on Financial Performance (as of 27-Dec-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P112635 IDA-46120 Effective 18-Jun-2009 16-Sep-2009 29-Jan-2010 30-Nov-2015 30-Nov-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112635 IDA-46120 Effective XDR 40.30 40.30 0.00 12.28 28.02 30.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR9053 Public Disclosure Copy Key Decisions Regarding Implementation The World Bank team and the PCU agreed on the following actions: 1. Rehabilitation of the Rice Irrigated Perimeters is not feasible within the actual resources of and state of the rehabilitation and should be removed from the Project. 2. The project is to be restructured. 3. Rehabilitation of Rice Irrigated Perimeters in the the SEMRY area should be synchronized with rehabilitation of the Dam of the Lake of Maga and the Dyke of the Logone River which is planned within the new emergency operation to be prepared during the second half of the FY 2013. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7