The World Bank Report No: ISR6873 Implementation Status & Results Madagascar Integrated Growth Poles (P083351) Public Disclosure Copy Operation Name: Integrated Growth Poles (P083351) Project Stage: Implementation Seq.No: 16 Status: ARCHIVED Archive Date: 12-Dec-2011 Country: Madagascar Approval FY: 2006 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): National Secretariat, Economic Development Board of Madagascar Key Dates Board Approval Date 12-Jul-2005 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date Last Archived ISR Date 12-Dec-2011 Effectiveness Date 28-Sep-2005 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall purpose of the proposed project is to help provide the adequate business environment to stimulate and lead economic growth in three selected regional poles. The specific objectives are to assist the GOM to: (i) construct and rehabilitate critical infrastructure essential for sustained economic activity in the tourism, manufacturing, agribusiness and mining sectors; (ii) put in place appropriate incentive measures to achieve rapid growth; (iii) develop the instruments to ensure equitable, sustainable growth; and (iv) strengthen the capacity of local authorities to formulate, prepare, implement, and manage medium- and long-term integrated of future regional development projects Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component A: Strengthening the business environment 21.00 Component B: Export-led growth in Antananarivo 6.00 Component C: Tourism led growth in Nosy Be 32.00 Public Disclosure Copy Component D: Mining and Tourism led growth in Tolagnaro (Fort Dauphin) 55.00 Component E: Program and Project Implementation, Evaluation and Monitoring 15.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Page 1 of 8 The World Bank Report No: ISR6873 Partial disbursement of a total amount of US$3,685,000 was authorized under exceptions to OP/BP 7.30 in the fall of 2009 to allow financing implementation of planned and on-going necessary activities that specifically address safeguards and reputation risks. Most of these activities were satisfactorily implemented. Since the authorization in May 2011 of full replenishments of the Project Special Account by the World Bank management, implementation progress and disbursements have picked up pace. Disbursements in Q1-Q2 FY 12 were US$4.8 million; up from US$3.4 million in Q3-Q4 FY11. The overall total disbursement of CR. 4101 MAG stands at 94%, including the US$2.3mn refund from IFC for the PCGS Public Disclosure Copy sub-component, and it is expected to be completely exhausted before October 31, 2012, when the credit is closing. Disbursement of the additional credit CR. 4399 is 21% as most of the activities could not be implemented since the crisis. However, the level 1 restructuring prepared for Q4 FY will seek to ensure that remaining funds are disbursed by the proposed two-year extended deadline (December 31, 2014). Overall implementation progress is rated Satisfactory while Progress towards achievement of PDO is rated Moderately Satisfactory. Four of the six PDO outcomes are achieved or exceed the projected results for 2011 (EDBM is fully staffed and operational, the number of new businesses is 95% above target, a new Investment Law and amended Free Zone law was adopted in 2007, regional development plans have been adopted and implemented). A fifth PDO outcome (jobs created) is achieved on an aggregate level but not for each individual pole while the sixth PDO outcome (FDI inflows) is lagging since 2010 due to the crisis. The economic impact of the crisis has led to a significant downturn in the number of new investments but the Project's efforts to formalize businesses have been very successful and job creation in the formal sector has grown well in all the poles. The restructured Project will respond better to current realities and accelerate Project implementation further. However, the political situation in Madagascar remains far from stable and Project implementation within the framework of OP/BP 7.30 is expected to continue to be challenging. Locations Country First Administrative Division Location Planned Actual Madagascar Not Entered Fort Dauphin Madagascar Not Entered Nosy Tanihely Madagascar Not Entered Nosy Be Madagascar Not Entered Lakandava Madagascar Not Entered Baie d' Hellville Madagascar Not Entered Fausse Baie des Galions Madagascar Not Entered Antsirabe Madagascar Not Entered Antsirabe Madagascar Analamanga Antananarivo Madagascar Not Entered Fascene Airport Public Disclosure Copy Results Project Development Objective Indicators Page 2 of 8 The World Bank Report No: ISR6873 Indicator Name Core Unit of Measure Baseline Current End Target Annual private investment flows Text Value 84 1500 Date 31-Dec-2005 31-Dec-2010 31-Dec-2012 Public Disclosure Copy Comments Drop in investment flows post- crisis from $1,296mn to $808mn in 2010. Number of new businesses registered in the Text Value Antsirabe: 1703 Nosy Be- Antsirabe: 3,188; Nosy Be: Antananarivo-Antsirabe: 2100 three poles Diana: 400 Fort Dauphin: 82 1,517; Fort Dauphin: 1,135 Nosy Be-Diana: 650 Fort Dauphin: 450 Date 31-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Number of new jobs created in the three poles Text Value Nosy Be: 1400 Antsirabe: 850 Nosy Be: 4,822; Antsirabe: Nosy Be: 6500 Antananarivo- Taolagnaro: 1015 4,164; Fort Dauphin: 7,487 Antsirabe: 5000 Taolagnaro: 5000 Date 31-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Component D: % increase in number of hotel Text Value 0 97% 35% rooms Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Target exceeded. There is no new investment in hotels since the crisis. Component D: % of population with access to Text Value 45% 84% 75% portable water and electricity Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments data only for water; target exceeded. Component D: Length (km) of roads Text Value o 45% 60% Public Disclosure Copy rehabilitated Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments New roads program in progress. Component D: Time required to issue a Text Value 42 days 45 days 15 days construction permit by the Municipality of Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Taolagnaro Comments Slippage since the crisis. New TA program in place in February 2012. Page 3 of 8 The World Bank Report No: ISR6873 Component D: Value of additional Municipal Text Value 0 432% 300% revenue generated Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Target exceeded. Public Disclosure Copy Component D: Volume of traffic handled by Text Value 0 525 750 Ehoala Port (*000 tonnes) Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Component D: Number of new jobs in mining Text Value 904 2,539 2,000 and construction Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Target exceeded Component D: % of regional MAP activities Text Value 0 0 100% supported by the project completed Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments MAP activities suspended since the crisis. Component E: Project is rated satisfactory at Text Value S MS S supervision Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Restructuring underway. Component E: Timely submission of Text Value S S S satisfactory monitoring reports Date 30-Dec-2005 31-Dec-2011 31-May-2012 Comments Target attained. Component E: Text Value No No Yes Operational budgets are managed locally Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Component E: Text Value NA MS S Timely submission of satisfactory reports for Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 the income restoration program in Fort Dauphin Comments Report was submitted after delay and QMM agreed to improve it. Public Disclosure Copy Component E: Text Value NA MS S Monitoring and evaluation rating is satisfactory Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments M&E has been improved. Institutional development, World Bank Amount(USD) Value 0.00 5626000.00 11109382.00 financing, On-lending Date 31-Dec-2005 31-Mar-2009 31-Dec-2012 Comments Data gathered from retrofit exercise Total Outstanding Loan Portfolio Amount(USD) Value 0.00 41742499.00 25000000.00 Page 4 of 8 The World Bank Report No: ISR6873 Date 30-Dec-2005 31-Dec-2008 31-Dec-2012 Comments Data gathered from retrofit exercise Public Disclosure Copy Active Loan Accounts Number Value 0.00 1496.00 439.00 Date 30-Dec-2005 31-Dec-2008 31-Dec-2012 Comments Data gathered from retrofit exercise Component D: Number of tourism related jobs Text Value 111 2,959 1,800 created in Taolagnaro Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Target exceeded. Component A: Value of new loans disbursed to Text Value 0 Not measured US$25 million MSMEs by participating banks through the Date 30-Dec-2005 31-Dec-2011 31-Dec-2008 GPP Comments target indicator exceeded Component A: Number of new loans disbursed Text Value 0 Not measured. 439 by participating bansk thhrough the GPP Date 30-Dec-2005 31-Dec-2011 31-Dec-2008 Comments target indicator exceeded Component A: Number of days required to set Text Value Nationally: 21 days In the Nationally: 4 days, in the Nationally: 3 days In the three up a business three poles: > 30 days poles: 7 days. poles:7 days Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Target attained. Component A: Number of MSME recipients of Text Value 0 2,167 900 subsidized BDS services Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Target exceeded. Component A: Expenditure on tourism Text Value 0 na 25% promotion initiatives by Regional Tourism Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Offices (ORTs) Comments no data available and disbursements suspended Public Disclosure Copy Component A: Annual sales value of assisted Text Value 0 0 15% firms in selected value chains Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments disbursements suspended since the crisis Component B: Number of workers trained in Text Value 0 313 900 the textile industry Date 31-Dec-2005 31-Dec-2011 31-Dec-2012 Comments disbursements suspended since crisis Page 5 of 8 The World Bank Report No: ISR6873 Component B: Volume of products handled in Text Value 0 0 500 the agro techno pole Date 31-Dec-2005 31-Dec-2011 31-Dec-2012 Comments no progress since the political Public Disclosure Copy crisis Component B: % of regional MAP activities Text Value 0 na 100% supported by the project completed Date 31-Dec-2005 31-Dec-2011 31-Dec-2012 Comments MAP suspended since the crisis Component C: Number of tourist arrivals per Text Value 39,376 65,187 85,000 annum Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Component C: Number of tourism related jobs Text Value 1,386 2,754 5,900 created in Nosy Be Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Component C: % increase in the number of Text Value 0 78% 70% hotel rooms Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments Target exceeded. Component C: % of population with access to Text Value 35% 60% 75% portable water and electricity Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments for water only. Component C: % increase in km of Text Value 0 43% 60% rehabilitated roads Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments New roads program in progress. Component C: Completion of the rehabilitation Text Value Emergency repairs under way of Hellville and Ankify ports Date 31-Dec-2011 Comments this activity will be dropped in Public Disclosure Copy the restructuring due to non compliance with the disbursement condition Component C: Time required to issue a Text Value 50 days 45 days 20 days construction permit by the municipality of Nosy Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Be Comments slippage in days since the crisis as support to the Municipality was suspended. New TA program in progress. Page 6 of 8 The World Bank Report No: ISR6873 Component C: Value of additional Municipal Text Value 0 75% 150% revenue generated Date 30-Dec-2005 31-Dec-2010 31-Dec-2012 Comments support to the Municipality Public Disclosure Copy suspended since the crisis. New TA program in progress. Component C: % of regional MAP activities Text Value 0 na 100% supported by the project completed Date 30-Dec-2005 31-Dec-2011 31-Dec-2012 Comments MAP activities suspended since the crisis Component D: Number of tourist arrivals in Text Value 13,011 22,300 40,000 Taolagnaro per annum Date 30-Dec-2005 31-Dec-2011 31-May-2012 Comments Data on Financial Performance (as of 11-May-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P083351 IDA-41010 Effective 12-Jul-2005 13-Jul-2005 28-Sep-2005 31-Dec-2010 31-Oct-2012 P083351 IDA-43990 Effective 17-Apr-2008 08-May-2008 06-Aug-2008 31-Dec-2012 31-Dec-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P083351 IDA-41010 Effective XDR 85.90 82.65 3.25 82.61 0.04 100.00 P083351 IDA-43990 Effective XDR 25.00 25.00 0.00 5.46 19.54 22.00 Disbursement Graph Public Disclosure Copy Page 7 of 8 The World Bank Report No: ISR6873 Public Disclosure Copy Key Decisions Regarding Implementation The Project continues to operate under OP/BP 7.30 while resuming full disbursements for activities. The Project will be restructured (level one) and extended to better respond to current challenges and improve project performance under existing conditions in Madagascar. Restructuring History RVP Approved on 13-Dec-2007, Level two Approved on 14-Nov-2011, Level two Approved on 21-Dec-2011 Related Projects P110405-MG - Integrated Growth Poles Additional Financing Credit Public Disclosure Copy Page 8 of 8