The World Bank Implementation Status & Results Report Honduras Rural Competitiveness Project (P101209) Honduras Rural Competitiveness Project (P101209) LATIN AMERICA AND CARIBBEAN | Honduras | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2008 | Seq No: 26 | ARCHIVED on 26-Jun-2020 | ISR41943 | Implementing Agencies: Republica de Honduras -, Secretaria de Agricultura y Ganaderia, Honduran Strategic Investment Office (InvEst-H) Key Dates Key Project Dates Bank Approval Date: 17-Jun-2008 Effectiveness Date: 28-May-2010 Planned Mid Term Review Date: 04-Feb-2013 Actual Mid-Term Review Date: 04-Feb-2013 Original Closing Date: 30-Nov-2015 Revised Closing Date: 30-Nov-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective of COMRURAL is to contribute to increased productivity and competitiveness among organized ruralsmall-scale producers through their participation in productive alliances. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) The revised PDO is (a) to contribute to increased productivity and competitiveness among organized rural small-scale producers through their participation in productive alliances and (b) to enable the Government to respond promptly and effectively to an eligible emergency. Components Table Name Support for Productive Alliances:(Cost $10.50 M) Productive Investments:(Cost $24.30 M) Project Coordination, Monitoring and Evaluation:(Cost $7.70 M) IRM Contingency Cross-Cutting Institutional Strengthening:(Cost $1.90 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This ISR is based on continuous virtual implementation support provided between February and June 2020, in the context of the COVID-19 emergency in Honduras. The next (virtual) implementation support mission is planned for August 2020. 6/26/2020 Page 1 of 8 The World Bank Implementation Status & Results Report Honduras Rural Competitiveness Project (P101209) Overall project performance ratings are considered Satisfactory. Most intermediate indicators are being achieved or surpassed. The last batch of 35 business plans is under implementation with a total investment of about US$27.9 million, which includes over US$12.5 million under the COMRURAL matching grant facility, over US$10.4 million leveraged in private sector financing, and about US$5.0 million in beneficiary contributions. These business plans are benefiting 4,478 families; 26 percent are women beneficiaries; 875 families belong to indigenous (Lencas) and afro-descendant communities. The Project is supporting Honduras' strategy to respond to COVID-19. The Government of Honduras has included COMRURAL as one of its priority projects to help reactivate the agricultural sector amidst the COVID-19 emergency. Also, the Project is activating its Immediate Response Emergency Component to support the provision of sanitary inputs for public health services. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Substantial Macroeconomic -- Moderate Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and -- Substantial Substantial Sustainability Fiduciary -- Substantial Substantial Environment and Social -- Substantial Substantial Stakeholders -- Moderate Moderate Other -- Moderate Substantial Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Contribute to increased productivity and competitiveness of organized rural small-scale producers... IN00848031 ►Percentage increase in the value of gross sales of the rural producer organizations based on implementation of the business plan. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23.00 0.00 10.00 Date 30-Jul-2008 15-Nov-2018 02-Jun-2020 30-Sep-2020 The business plans are being implemented and most investments, such as equipment, are being procured Comments: or installed. Progress with this indicator will be monitored and reported after the 2020 agricultural cycle. It is important to highlight that the COVID-19 crisis is delaying the investments and overall productive 6/26/2020 Page 2 of 8 The World Bank Implementation Status & Results Report Honduras Rural Competitiveness Project (P101209) activity supported by business plans, which could potentially impact productivity and access to markets by producer organizations. IN00848032 ►Percentage of rural producer organizations that are working under an alliance approach 24 mos after first disbursement (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 80.00 Date 30-Jul-2008 15-Nov-2018 02-Jun-2020 30-Sep-2020 100 percent of participating Rural Producer Organizations (RPOs) are currently working under a Productive Alliance as they all are implementing their business plans. Continuity of the Alliances will be Comments: monitored during next months of implementation. IN00848033 ►Percentage increase in land and labor productivity by rural producers participating in the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 24.00 0.00 20.00 Date 30-Jul-2008 15-Nov-2018 02-Jun-2020 30-Sep-2020 This indicator depends of the implementation progress of business plans, which are still in the early stage of procuring and installing equipment. Progress with this indicator will be monitored and reported during the 2020 agricultural cycle. It is important to note that the COVID-19 crisis is delaying the investments and Comments: overall productive activity supported by business plans, which could potentially impact productivity and access to markets by producer organizations. IN00848034 ►Percentage of rural producer organizations without a loan in arrears (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 95.00 Date 31-Dec-2016 15-Nov-2018 02-Jun-2020 30-Sep-2020 No RPOs have a loan in arrears at the moment. Comments: IN00848035 ►Time taken to disburse funds requested by the Government for an eligible emergency (Weeks, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 31-Dec-2016 15-Nov-2018 02-Jun-2020 30-Sep-2020 On May 29, 2020, the Task Team received a notification from the CMU indicating the the client had requested to activate the Immediate Response Mechanism (IRM) Component of the Project, with a reallocation of US$2.2 million to carry out activities under the country's emergency response to COVID-19. The team has worked with the DRM, Health, Safeguards, Legal, and CMU teams to prepare the activation Comments: package which has been approved on June 17. Disbursement conditions were lifted so the Government can request the disbursement. Time taken to disburse funds to the Government will be reported in the next ISR. 6/26/2020 Page 3 of 8 The World Bank Implementation Status & Results Report Honduras Rural Competitiveness Project (P101209) Intermediate Results Indicators by Components Component 1. Support to Value Chains as Prioritized under Public Policy IN00848036 ►Number of technical service providers are approved to provide support to rural producer organizations (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23.00 25.00 55.00 Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 IN00848041 ►Number of rural producer organizations have produced a profile that is approved to become a business plan. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 259.00 259.00 235.00 Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 The actual value includes 159 profiles approved under the original credit, 77 profiles approved after calls for new external proposals carried out by the additional financing, and 23 internal proposals Comments: from RPOs under the additional financing. Component 2. Productive Investments in value Chains as Prioritized under Public Policy IN00848037 ►Number of productive alliances under implementation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 152.00 158.00 190.00 Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 The actual value includes 123 alliances from the original credit and 35 currently supported under the additional financing. However, it is worth mentioning that the average size of the investments carried out Comments: under each productive alliance is above the one established at the appraisal stage, reducing the number of business plans but increasing the average number of households participating in each proposal. IN00848042 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11,369.00 11,678.00 10,780.00 Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 7,200 beneficiaries from the original credit and 4,478 from the additional financing, of which 1,186 are Comments: women and 875 are indigenous people and afro-descendants. IN00848045 6/26/2020 Page 4 of 8 The World Bank Implementation Status & Results Report Honduras Rural Competitiveness Project (P101209) Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 28.00 26.00 25.00 IN00848046 ►Percentage of investments identified in the business plans are completed on schedule (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 94.00 80.00 Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 IN00848047 ►Percentage of business plans financed by the project are implemented using good environmental practices (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 70.00 Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 IN00848048 ►Percentage of business plans in the project successfully implement measures that target the youth and indigenous communities,when applicable, as identified in the business plan. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 70.00 Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 IN00848049 ►Targeted clients satisfied with agricultural services (percentage) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 74.00 74.00 80.00 Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 The PIU and Task Team are assessing the use of ICT based solutions to undertake a rapid assessment over the next months, including through virtual supervision as needed in the context of COVID-19. This Comments: indicator will be updated in the next ISR. IN00848050 Targeted clients satisfied with agricultural services - male (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,893.00 3,893.00 6,468.00 IN00848051 Targeted clients satisfied with agricultural services - female (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,607.00 1,607.00 2,156.00 6/26/2020 Page 5 of 8 The World Bank Implementation Status & Results Report Honduras Rural Competitiveness Project (P101209) IN00848052 Targeted clients- male (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5,184.00 5,184.00 8,085.00 IN00848053 Targeted clients – female (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,016.00 2,016.00 2,695.00 IN00848054 ►Private Capital Mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14,200,000.00 29,321,845.00 24,350,000.00 Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 The actual value of Private Capital Mobilized (PCM) under the original project was US$ 13,921,845. Under the additional financing, PCM is US$15.4 million, of which US$ 10.4 million correspond to private Comments: financial allies (PFA) and US$5.0 million to rural producer organizations (RPOs). Component 3. Project Management, Monitoring and Evaluation IN00848038 ►MIS fully functional and producing all required products (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 IN00848043 ►Satisfactory financial audits (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jul-2008 15-Nov-2019 02-Jun-2020 30-Sep-2020 Component 4. Cross-Cutting Institutional Strengthening IN00848039 ►National competitiveness policy designed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes 6/26/2020 Page 6 of 8 The World Bank Implementation Status & Results Report Honduras Rural Competitiveness Project (P101209) Date 31-Dec-2016 30-Apr-2019 02-Jun-2020 30-Sep-2020 To be prepared in 2020; coordination activities with the Secretariat of Agriculture are underway now as Comments: part of COVID-19 food security & early recovery strategy. IN00848044 ►Establishment of a market intelligence unit (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2016 30-Apr-2019 02-Jun-2020 30-Sep-2020 To be established in 2020; coordination with the Secretariat of Agriculture is underway. Comments: Component 5. Immediate Response Mechanism IN00848040 ►IRM established and ready to provide access to financial resources to Honduras in case of an eligible emergency (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2016 30-Apr-2019 02-Jun-2020 30-Sep-2020 The Ministry of Finance of Honduras requested to activate the IRM component for US$ 2.2 million, once the COVID-19 Emergency Decree was issued. The IRM activation was approved on June 17, 2020. The Comments: task team is currently processing the disbursement. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P101209 IDA-44650 Closed USD 30.00 22.95 7.05 20.90 0.00 100% P101209 IDA-60460 Effective USD 25.00 25.00 0.00 19.05 5.95 76% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P101209 IDA-44650 Closed 17-Jun-2008 17-Sep-2008 28-May-2010 30-Nov-2015 31-Dec-2018 P101209 IDA-60460 Effective 18-May-2017 14-Nov-2017 14-Aug-2018 30-Nov-2020 30-Nov-2020 6/26/2020 Page 7 of 8 The World Bank Implementation Status & Results Report Honduras Rural Competitiveness Project (P101209) Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level Approved on 01-Feb-2012 ,Level 2 Approved on 19-Nov-2015 ,Level 2 Approved on 15-Nov-2016 ,Level 2 Approved on 11-Sep-2017 Related Project(s) P158086-Additional Financing for Rural Competitiveness Project (COMRURAL) 6/26/2020 Page 8 of 8