The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Transformation of Agriculture Sector Program 4 Phase 2 (P161876) AFRICA | Rwanda | Agriculture and Food Global Practice | Requesting Unit: AFCE2 | Responsible Unit: SAFA2 IBRD/IDA | Program-for-Results Financing | FY 2018 | Team Leader(s): Winston Dawes Seq No: 4 | ARCHIVED on 20-May-2020 | ISR41589 | Created by: Irene Bomani on 04-May-2020 | Modified by: Irene Bomani on 18-May-2020 Program Development Objectives Program Development Objective (from Program Appraisal Document) To promote the commercialization of agriculture value chains in Rwanda. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Implementation Status and Key Decisions Between March 23 - April 24, 2020, the World Bank and donors contributing to the Additional Financing Multi-Donor Trust Fund (DFID, the Kingdom of the Netherlands - Ministry of Foreign Trade and Development Cooperation, and Enabel – the Belgian development agency) conducted a mid- term review of the PForR Program to: (i) assess its overall implementation progress since effectiveness; (ii) identify critical issues that may significantly impact progress; and (iii) agree with the Government of Rwanda on measures to quickly and efficiently address the issues to ensure achievement of the intended results. Based on the review of documentation on the performance trends of the 9 Disbursement Linked Indicators and core results indicators made available by MINAGRI, progress towards achievement of the Program Development Objective (PDO) is "Satisfactory" and implementation progress is "Moderately Satisfactory". Priority actions and timelines to to help facilitate achievement of the PDO and DLI performance targets have been agreed on with the Government and are detailed in the accompanying Aide-Memoire to this report. The unexpected yet significant challenge of the COVID-19 pandemic is likely to have lasting economic, social and operational impacts both globally and within Rwanda. The GoR in collaboration with its implementing partners and development partners will need to pay special attention to crafting effective responses to the COVID 19 related challenges as they arise. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161876 IDA-62560 Effective USD 100.00 100.00 0.00 43.49 52.75 45% P161876 TF-B0153 Effective USD 17.00 17.00 0.00 17.00 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 5/20/2020 Page 1 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) P161876 IDA-62560 Effective 29-May-2018 31-May-2018 26-Jun-2018 31-Dec-2021 31-Dec-2021 P161876 TF-B0153 Effective 17-Apr-2019 16-May-2019 14-Aug-2019 31-Dec-2021 31-Dec-2021 Program Action Plan Action Description Map external capacity support against priorities of Organizational Development of MINAGRI. Source DLI# Responsibility Timing Timing Value Status Technical DLI 1 MINAGRI Due Date 30-Jun-2019 In Progress Completion Measurement External Capacity Support Strategy prepared and approved by Agriculture Sector Working Group. This PAP is an outcome of the Organizational Development (OD) Plan which is expected to be completed by June Comments 30, 2020. MINAGRI has therefore requested a change in the timing value from June 30, 2019 to June 30, 2020. Action Description Assess current Agriculture Financial Guarantee Schemes. Source DLI# Responsibility Timing Timing Value Status Technical DLI 4 MINECOFIN Due Date 01-Sep-2019 In Progress Completion Measurement Agriculture Guarantee Schemes Review undertaken and reviewed by the Agriculture Sector Working Group. The evaluation is ongoing under the design of the Rwanda Risk Sharing Facility. The World Bank has requested Comments MINAGRI to provide a status of the evaluation progress and an estimated timeframe for completion of the Risk Sharing Facility. Action Description Ensuring gender equity in all MINAGRI services and programs. Source DLI# Responsibility Timing Timing Value Status Technical MINAGRI Due Date 01-Sep-2019 Completed Completion Measurement Gender Mainstreaming Strategy developed, endorsed (by the Agriculture Sector Working Group) and implemented. The strategy was validated and launched by the Hon. Minister, MINAGRI, in October 8, 2019 and is under Comments implementation. Action Description MINAGRI strengthens the monitoring and reporting on Food Security and Nutrition. Source DLI# Responsibility Timing Timing Value Status Technical MINAGRI Due Date 01-Sep-2019 Completed Food Security and Nutrition Monitoring System developed, endorsed (by the Agriculture Sector Working Group) and Completion Measurement displayed on MINAGRI dashboard. In 2018 the Comprehensive Food Security and Vulnerability and Nutrition Analysis Survey (CFSVA) was carried out Comments which included a Food Security and Nutrition Monitoring System (FSNMS). 5/20/2020 Page 2 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Action Description Annual financial Audit Action Plan for RAB developed and endorsed by the Audit Committee. Source DLI# Responsibility Timing Timing Value Status Technical DLI 9 MINAGRI Recurrent Yearly Completed Annual action plan to address the weaknesses identified in RAB financial audit developed and endorsed by Audit Completion Measurement committee and shared with the World Bank. Completed for year 2. The Annual action plan (FY 2019/20) is available and has been shared with the World Bank. Comments MINAGRI has been requested to provide its implementation status. Action Description MINAGRI mainstreams Climate Change into the sector’s planning, budgeting, monitoring and implementation. Source DLI# Responsibility Timing Timing Value Status Technical MINAGRI Due Date 30-Sep-2018 Completed Strategy developed with action plan (including a section on building capacity focal points, new staff, links to relevant Completion Measurement ministries, projects and staff training identified) approved by the Agriculture Sector Working Group. Comments The World Bank has requested MINAGRI to provide an implementation status of the action plan. Action Description Stakeholders, beneficiaries using Grievance System and MINAGRI responding appropriately. Source DLI# Responsibility Timing Timing Value Status Technical MINAGRI Recurrent Quarterly Completed Completion Measurement Report provides a summary of grievances received by MINAGRI and the response provided annually by June 30. Quarterly reports are available for the period March to December 2019. MINAGRI is requested to share the report Comments covering January to March 2020. Action Description Public Expenditure Review Source DLI# Responsibility Timing Timing Value Status Technical MINECOFIN Due Date 15-Jan-2020 In Progress Completion Measurement A report providing detailed analysis of sector spending among all key stakeholders. A draft report has been shared with MINAGRI for comments. A final “Agricultural Policy/Expenditure” Brief and Comments Dissemination Workshop to present findings to stakeholders are expected to be done in July 2020. Establish within MINAGRI a mechanism for assessing progress toward establishing systems for IT, Monitoring and Action Description Evaluation and Statistics. Source DLI# Responsibility Timing Timing Value Status 5/20/2020 Page 3 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Technical MINAGRI Recurrent Yearly Completed Annual report on the quality of information systems, key challenges and action plan to be provided annually by June Completion Measurement 30th. Comments Completed for year 1 and 2. Action Description Systems for tracking the quality of coordination designed and operational. Source DLI# Responsibility Timing Timing Value Status Technical DLI 1 MINAGRI Due Date 01-Sep-2018 Completed Completion Measurement Methodology agreed, action approved, and implementation plan agreed. Comments Action Description Review of Medium Term Expenditure Framework. Source DLI# Responsibility Timing Timing Value Status MINAGRI and Technical Due Date 31-Dec-2018 Completed MINECOFIN Completion Measurement Medium Term Expenditure Framework review completed. Comments Develop and implement capacity building training program on ESIM to improve understanding and application of GoR Action Description E&S policies for National and District level staff. Audience should include any private sector entities participating in the Program. Source DLI# Responsibility Timing Timing Value Status Technical RAB, MINAGRI Recurrent Yearly In Progress Completion Measurement Increase in trained staff at the national and district levels. Delayed for year 2. Training for District level staff planned for the month of March 2020 was postponed due to Comments COVID-19. Compliance Checklist to ensure that activities that are not legally permissible are not undertaken and that requisite Action Description permissions are taken before any scheme/intervention is financed. Source DLI# Responsibility Timing Timing Value Status Environmental and Social DLI 2 MINAGRI Due Date 30-Jun-2019 Completed Systems The checklist should follow the criteria for ineligible infrastructure for financing under PforR Program, presented in the Completion Measurement ESSA 5/20/2020 Page 4 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Completed in October 31, 2019 and included in the Private Sector Leveraging Strategy. However, the use of the Comments screening checklist remains a challenge. Private Sector Leveraging Strategy, establish selection/performance criteria for private sector consistent with ESIM & Action Description gov E&S regs. For selected private sector orgs, required quality ESMS developed & adopted prior to participation in PforR Program. Source DLI# Responsibility Timing Timing Value Status Environmental and Social DLI 2 MINAGRI Due Date 30-Jun-2019 Completed Systems Mechanism for selection of private sector entities with sufficient capacity for diligent environmental and social Completion Measurement management. Increased capacity of other private sector entities participating in the implementation of the PforR Program. The mechanism is included in the Private Sector Leveraging Strategy. However, implementation is inadequate. As of Comments yet, there is no evidence of existence of ESMS for selected private sector entities. Private Sector Leveraging Strategy to include conditions for GoR land acquisition and compensation management Action Description and exclude high risk investments financing. Source DLI# Responsibility Timing Timing Value Status Environmental and Social DLI 2 MINAGRI Due Date 30-Jun-2019 Completed Systems Design model for PPP investments that reduces potential negative environmental and social risks and continues good Completion Measurement practices established by the districts under MINAGRI publicly financed projects. Comments Completed in October 31, 2019 as part of the Private Sector Leveraging Strategy. Action Description PPP Agreement to include a requirement to comply with ESIM through implementation. Source DLI# Responsibility Timing Timing Value Status Environmental and Social MINAGRI Due Date 30-Jun-2019 Completed Systems Establish a legal requirement to comply with established sectoral and environmental and social risk management Completion Measurement practices. Comments Completed in October 31, 2019 as part of the Private Sector Leveraging Strategy. Action Description Conduct an audit to assess application of the private sector screening procedure. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Office of the Auditor Due Date 30-Jun-2021 Not Yet Due Systems General 5/20/2020 Page 5 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Assess effectiveness of the private sector screening to establish the quality and application of the environmental and Completion Measurement social system of the participating private sector entities. Comments To be conducted in year 3. Action Description Procurement Action Plan developed to address procurement risks. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems MINAGRI and RAB Due Date 30-Sep-2018 In Progress Procurement action plan addresses: exclusion of Bank debarred firms, negotiating on bid prices, delays in contract Completion Measurement award, incomplete Program procurement records, and use of inappropriate selection methods. Additional recommendations to strengthen completion measurement actions proposed by the Bank in the previous Comments mission have not yet been completed. MINAGRI needs to address them to fully complete the PAP action. MINAGRI to report on screening and management of Land Acquisition and Resettlement (LAR) issues in program Action Description activities. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Report only due if there MINAGRI Other Not Yet Due Systems is any land acquisition. Completion Measurement Consolidated program resettlement and expropriation completion report Not yet applicable. Report only due if there is any land acquisition. So far, no action on land with the private sector Comments has been recorded. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Low Low Low Macroeconomic Low Low Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- -- -- 5/20/2020 Page 6 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Overall Substantial Substantial Substantial RiskComments Comments The macroeconomic risk rating has been adjusted from "Low" to "Moderate". The global impact of COVID-19 could potentially impact the level of investments in DLIs 5, 6 and 7 and the ability of the GoR to attract PPPs. It could also impact DLI 9 (RAB reforms) Results PDO Indicators by Objectives / Outcomes To promote the commercialization of agriculture value chains in Rwanda. IN00837562 ►Performance of MINAGRI and RAB in achieving the milestones established in their respective Organizational Development or Restructuring implementation plan (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 30-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 MINAGRI has recognized the need to realign with a rapidly changing and complex environment. It therefore is committed to an organizational change process being defined in an organizational development plan (OD) and approved by cabinet. The objective of OD is to improve the organization's capacity to handle its internal and external functioning and relationships. An OD plan defines change objectives, interventions, intended results, process milestones and measures of success (i.e., indicators). Guided by an OD performance measurement framework (to be laid out in the OD), these indicators will be regularly monitored and evaluated, and eventually combined into a ‘composite performance score’* measuring progress towards achieving organizational development goals as established in the OD. RAB is about to launch a Comments restructuring process that will be guided by new Prime Minister Order (expected to be approved within FY 17/18). The implementation plan of the restructuring will have agreed time-bound deliverables. Their achievement/non-achievement will be combined into a ‘restructuring performance score’ that is measured annually against annual targets as set in the restructuring implementation plan. NOTE: It is critical that the OD plan / restructuring implementation plan has a robust M&E framework in order to arrive at a reliable performance score. *A composite score measures two or more individual/component performance measure scores combined into one score for each accountable entity. Individual or component performance measures may refer, for example, to measures in the area of (i) skills and competencies (ii) knowledge management and learning (iii) leadership and management (iv) governance and transparency etc. IN00837563 MINAGRI (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 IN00837564 RAB (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 IN00837565 ►Improvements in the Enabling Business of Agriculture (EBA) Scores (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 5/20/2020 Page 7 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Value 0.00 0.00 0.00 0.00 Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 EBA is a World Bank Group initiative that identifies and monitors regulations and policies that affect agriculture and agribusiness markets. It measures legal barriers for businesses operating in agriculture for a country economy across 12 topic areas. It provides quantitative indicators on regulation for seed, fertilizer, Comments machinery, finance, markets, transport, information and communication technology (ICT), and water. For the PforR purpose the focus will be on three poorly performing regulatory scores, namely seeds, fertilizer and markets IN00837571 Seed (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 20.20 20.20 24.20 32.00 IN00837572 Fertilizer (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 52.60 52.60 53.00 56.00 IN00837573 Markets (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 49.30 49.30 50.00 53.00 IN00837574 ►Private investment in agriculture value chain services (US$) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 101.50 101.50 101.50 200.00 Date 29-Jun-2018 04-Oct-2019 04-Oct-2019 30-Jun-2021 Actual capital investment by national and international investors in the agricultural sector in a given year A ‘value chain’ in agriculture describes the range of activities and set of actors that bring agricultural product from production in the field to final consumption, wherein at each stage value is added to the product. The Comments Rwandan Development Board facilitates and enables private sector investment in agriculture by providing incentives and advertising specific investment opportunities ( http://www.rdb.rw/rdb/agriculture.html) This indicator only refers to new investments channeled through RDB and that have received an “investment registration certificate” (http://www.rdb.rw/one-stop-centre/investment-registration.html) Intermediate Results Indicators by Results Areas Policy and Organizational Reform IN00837575 ►Organizational Development plan successfully prepared and implementation on track. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The organizational The approved review has been Organizational Review Upgrade of HR Value None completed. MINAGRI is Document and official management function ready to submit the final management response completed version of the letter are available. 5/20/2020 Page 8 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) organizational review MINAGRI with technical report, along with an assistance from Ernst & official management Young contracted by response letter, for the the World Bank, is appropriate verification preparing the protocol. The World Bank Organizational has agreed to provide Development Plan as technical assistance to the year 2 deliverable. help prepare the Organizational Development Plan to be delivered in year 2. Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 (i) Organizational review, including capacity needs assessment of MINAGRI completed. Organizational review refers to a systematic assessment of the functional structure, business processes and staffing (i.e., staffing numbers, designations, team structures, competencies, salary scales), the organizational culture, the processes for building and managing work and teams (e.g., training, management processes, performance management, incentive structures and motivation), and the supporting infrastructure. The capacity needs assessment comprises an analysis of the current organizational and individual capacities and defines the capacities needed to fulfill the goals of the organization. (ii) Organizational Development (OD) Plan for MINAGRI prepared and approved. Organizational Development is a planned, systematic approach to improving organizational effectiveness – one that aligns strategy, people and processes. The Comments Organizational Development plan addresses: • Purpose – strategy, vision, values, objectives; • People Factors – leadership, behaviors & skills; • Place Factors – logistics, infrastructure; • Systems/Processes – governance, HR, finance, information technology, communications; and • Performance – performance indicators, benefits realization. The OD plan will also address: (i) the approach and methods to be taken for OD; (ii) the timeline; (iii) assumptions, risks and risk mitigation measures; and (iv) a framework for monitoring and evaluation of progress and results. (iii) Upgrade of HR management function completed. The scope of the upgrades to the HR management function by end of year 3, will be laid out in the OD Plan. Completion of the upgrade will be assessed against the milestones that MINAGRI has committed in its OD plan. IN00837579 ►Improved analytical and policy reform competencies demonstrated. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Implementation of the PSLS is ongoing. An annual implementation The Strategy for progress report was leveraging Private shared with the Bank in Investment and March 2020 for review. Implementation Plan has MINAGRI needs to been prepared and was Agricultural input strengthen the report, a endorsed by the ASWG subsidy schemes requisite for meeting the on September 24, 2019 reviewed, alternative year 2 DLI target by Value NA subject to MINAGRI models for increasing including: (i) a detailed incorporating final efficiency assessed, description of the Public comments from the reforms agreed and Private Investments; (ii) ASWG. The final version implemented progress on sector will be submitted for policy reforms to validation in MINAGRI's leverage private sector next Planning cluster resources; and (iii) meeting. updated progress on the implementation plan. Date 31-May-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 Comments The output of capacity development interventions financed through the PforR Program will be improved competencies of MINAGRI staff in the area of macro-economic and policy analysis in order to strengthen the effectiveness of MINAGRI’s policy-making efforts. Applying the new skills and competencies is expected to result in tangible products that are instrumental for the policy-making process. The actually delivery of 5/20/2020 Page 9 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) three products will be measured. For quality assurance purposes, it is expected that each product would have undergone a technical review process (also involving Agricultural Sector Working Group and the World Bank) before it is finalized. (1) Private Sector Leveraging Strategy. The strategy document with implementation plan will lay out how MINAGRI seeks to crowed in private investment to the sector, by detailing: (i) regulatory reform priorities that are based on analytical work undertaken or commissioned by MINAGRI, (ii) criteria for appraising proposed public investments for their capacity to generate private investment, (iii) standards and guidelines for environmental and social risk assessment when involving private sector investors, the standards must draw upon the principles of PSTA 3 Environmental, Social, Implementation Manual (ESIM), (iv) Public-Private engagement mechanisms (including the conceptual design and implementation arrangements for Public-Private Dialogues, VC platforms, Competitive Matching Funding Programs), (v) Principles and guidelines for the design and implementation of competitive funding programs of public-private partnerships, (vi) Feasibility (incl. mission, objective, financing, organizational structure and implementation arrangements) of a future Agricultural Investment Fund, and (vii) Analysis of opportunities for contracting of private advisory service providers, including quality assurance mechanisms of private service delivery (e.g., performance standards, accreditation requirements, contractual models). (2) Annual Report on Public-Private Investment in Agriculture published by MINAGRI. The report will outline MINAGRI’s performance (quantitative and qualitative) in: (i) leveraging private resources; (ii) improving the agriculture business environment; and (iii) regulatory and policy reforms to public sector services. (3) Agricultural Input Subsidy Review and Reform package, composed of: (i) an agricultural input subsidy schemes review, including an assessment of alternative models for increasing efficiency and effectiveness; and (ii) a subsidy reform document approved by the Cabinet. IN00837582 ►Digital information platforms designed and operational. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Development is ongoing. The current dashboard, data collection, reporting The Livestock infrastructure and registration application aggregation processes (holding cow data with across MINAGRI national coverage) will presented as part of the be interfaced with MIS, completed year 1 phase ALIS I and II, Farmer need significant registration application improvement. MINAGRI in the common data needs to to develop a warehouse platform Development ongoing; comprehensive set of prototype expected interactive dashboards Sector Performance around mid-April 2019, to allow analysis with Value NA Dash Board is in place and finalization of year 1 different levels of and publicly accessible phase before the end of granularity; strengthen online, whereby it May 2019 its current and long- provides reports on term IT capacity by national agricultural recruiting 2 MIS macro indicators, specialists, renewing national Indicator of the contract of the Food Security and external vendor who PSTA 4 results was supporting the indicators CDW development; and adding skills in Database admin and ETL development; data management; and data analysis. Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 Comments MINAGRI will install a Smart Agricultural Information System (SAIS), that integrates agricultural data management and analysis. During the first three years, the key building blocks of the platform will be programmed and populated by using a data warehouse system. This also includes the installation of nationwide field data collection systems (e.g., gender disaggregated farmer register, livestock register, land profiles). MINAGRI also commits to making data from the platform publicly available through a web-based 5/20/2020 Page 10 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Sector Performance Dash Board, featuring national agricultural sector and food security information. As such the delivery of the following products is expected: • A common data warehouse platform designed and ready for use, whereby existing data in MIS and ALIS I will be fully interfaced (at least down to the level of all districts) – (year 1); • The Farmer registration application and ALIS II will be fully interfaced with MIS and ALIS I in the common data warehouse platform; both, farmer registration application and ALIS II, will hold data covering all districts – (year 2); • A livestock registration application (holding at least cow data with national coverage) will be interfaced with MIS, ALIS I and II, Farmer registration application in the common data warehouse platform – (year 3); and • Sector Performance Dash Board is in place and publicly accessible online, whereby it provides reports on national agricultural macro indicators, national Indicator of Food Security and PSTA4 results indicators – (year 3). IN00837586 ►Mechanism to strengthen Agriculture Public-Private Dialogues and Agriculture Value Chain Platforms designed and implemented. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The year 1 deliverable was met. Work to meet the year 2 target is ongoing. To fully meet the year 2 target, MINAGRI needs to Additional 2 strengthen the VC Agriculture PPDs held platforms bi-annual The year 1 deliverable reporting. A reporting Agriculture VC has been met. The Ag format has been agreed platforms are fully Value NA PPD and VC Platform on. It should provide functional and yielded were designed, piloted details on the quality of evidence of and budgeted for. implementation of the satisfactory results (as agriculture PPDs and per M&E of operating alignment with the Agri- plan PPD strategy; and budget allocation for VCPs and Agri-PPDs per activity, phase and funding sources (public & private sources). Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 Agriculture Public-Private Dialogues and Agriculture Value Chain Platforms are two mechanisms for strengthening engagement with the private sector and other stakeholders both for attracting new investment and retaining profitable businesses in the agricultural sector. Value chain platforms aim to build cooperation, trust, and to streamline operations in the targeted value chains. VC Platforms develop a joint sub-sector Comments vision, address specific challenges, ensure a coherent enabling environment and promote stronger market orientation in the targeted value chain. Platforms would support the PPD mechanisms whereby business- enabling factors and challenges are identified and addressed. The lack of services and inputs are primary themes for exploring business opportunity and investment promotion. IN00837589 Improvement in functional performance of interagency coordination mechanisms. (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Stakeholder Perception Stakeholder Perception surveys of the ASWG, surveys of the ASWG, JSR, and Joint Imihigos JSR, and Joint Imihigos Value none are to be reported. The are to be reported. The >20% satisfaction survey satisfaction survey conducted by the ASWG conducted by the ASWG is ongoing. was completed. Enabling Agric Commercialization IN00837576 ►Share of small scale farmers using improved seeds. (Percentage, Custom) 5/20/2020 Page 11 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Baseline Actual (Previous) Actual (Current) End Target Value 18.00 20.00 25.00 30.00 Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 This indicator refers to the definition being used, and the data reported by NISR in their regular Seasonal Agricultural Surveys. Comments NISR has changed its reporting methodology. It now reports on number of plots with improved seeds instead of number of farmers with improved seeds. IN00837580 ►New irrigation area identified, developed and/or managed where commercial viability has been a determining appraisal criterion. (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,260.00 1,680.00 Date 02-Apr-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 The indicator refers to a defined share of the total new irrigation area to be developed under PSTA 4. The AREA (in ha) eligible for inclusion in the measure must be subject to a Public-Private Partnership (where commercial viability is a key characteristic). The development of the AREA was approved by the authorities based on a feasibility analysis that has met standards and criteria laid out in the new strategy for leveraging Private Sector Investment. PPP: A long-term contractual arrangement between a public entity or authority and a private entity for providing a public asset or service in which the private party bears significant risk and management responsibility. Project feasibility analysis: Refers to a series of feasibility or appraisal criteria against which the project is tested to assess its suitability as a PPP, and which includes the notion of sustainability both in terms of the scheme itself, its benefits to the ultimate users and its bankability. Such feasibility analysis is typically undertaken once the business case has been made for the proposed project to proceed as a PPP and the project has been designed to a preliminary level. Commercial viability: The commercial viability of a PPP project describes the extent to which it has the potential to offer a private firm a sufficient financial return to enable it to recover any capital and operational costs as well as a suitable financial return on any investment given the opportunity cost involved. Private partner in the PPP can be: • a Comments commercial farmer serving as a private irrigation operator, or as an outgrower farm scheme manager; • Farmers/Water User Groups/Youth cooperatives formally made responsible for maintaining the tertiary irrigation network; or • a private operator that is responsible for operating and maintaining the entire system, and farmers pay a tariff that covers operating and maintenance costs. Main contractual forms • Operation, Management and Maintenance (OMM) contract; • Infrastructure concession; • Farm service agreement; and • Hub farm agreement. Formally agreed ‘Productive Alliances’ would also fall under the category of a recognized PPP (see indicator reference sheets of core results indicators for more details). Descriptions for each contractual form can be found here: http://ppp.worldbank.org/ppp/ppp-sector/water-sanitation/ppps- irrigation World Bank, How To Develop Sustainable Irrigation Projects with Private Sector Participation, 2016; https://ppiaf.org/documents/2864?ref_site=ppiaf Linking Farmers to Markets through Productive Alliances : An Assessment of the World Bank Experience in Latin America; https://openknowledge.worldbank.org/handle/10986/25752. This will be reported on in year 2. IN00837583 ►New terracing area identified, developed and/or managed where commercial viability has been a determining appraisal criterion. (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 745.00 2,310.00 Date 02-Apr-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 Comments The indicator refers to a defined share of the total new terracing area to be developed under PSTA4. The AREA (in ha) eligible for inclusion in the measure must be subject to a Public-Private Partnership (where commercial viability is a key characteristic). The development of the AREA was approved by the authorities based on a feasibility analysis that has met standards and criteria laid out in the new strategy for leveraging Private Sector Investment. PPP: A long-term contractual arrangement between a public entity or authority and a private entity for providing a public asset or service in which the private party bears significant risk and 5/20/2020 Page 12 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) management responsibility. Project feasibility analysis: Refers to a series of feasibility or appraisal criteria against which the project is tested to assess its suitability as a PPP, and which includes the notion of sustainability both in terms of the scheme itself, its benefits to the ultimate users and its bankability. Such feasibility analysis is typically undertaken once the business case has been made for the proposed project to proceed as a PPP and the project has been designed to a preliminary level. Commercial viability: The commercial viability of a PPP project describes the extent to which it has the potential to offer a private firm a sufficient financial return to enable it to recover any capital and operational costs as well as a suitable financial return on any investment given the opportunity cost involved. Private partner in the PPP can be: • a commercial farmer serving as an outgrower farm scheme manager; • Farmers/Water User Groups/Youth cooperatives formally made responsible for maintaining terracing structures; and • a private operator that is responsible for operating and maintaining the entire system, and farmers pay a tariff that covers operating and maintenance costs. Main contractual forms • Operation, Management and Maintenance (OMM) contract; • Infrastructure concession; • Farm service agreement; and • Hub farm agreement. Formally agreed ‘Productive Alliances’ would also fall under the category of a recognized PPP (see indicator reference sheets of core results indicators for more details). Linking Farmers to Markets through Productive Alliances : An Assessment of the World Bank Experience in Latin America https://openknowledge.worldbank.org/handle/10986/25752. This will be reported on in year 2. IN00837587 ►Volume of private sector investment (in US$) matching public financing in PPP infrastructure projects. (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 4,000,000.00 7,150,000.00 Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 Private sector investment refers to the capital or development investment by private firms into the agricultural and food value chain. The basis for establishing the ‘volume’ of a private sector investment’ is the PPP agreement signed between the private firm and the government and brokered through a competitive financing program (established as per the Private Investment Strategy launched by MINAGRI). Comments The unit of measurement is US$. Public-Private Partnership (PPP) refers to a long-term contractual arrangement between a public entity or authority and a private entity for providing a public asset or service in which the private party bears significant risk and management responsibility. This will be reported on in year 2. Delivery of Improved Agric Value Chain Services. IN00837577 ►Number of different models of service delivery contracts signed and pilot under implementation. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 3.00 5.00 Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 This will be reported in year 2. Competitive Fund(s) Administrator; Annual Report Funding agreements. Comments IN00837581 ►Number of farm households reached by private advisory services (non-outgrower schemes) has increased. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 8,000.00 Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 Private sector extension services can complement public extension service delivery. There is experience Comments with a variety of partnership models between the public sector, farmers' organizations or communities, and private-sector providers, which will be assessed for possible adaptation opportunities to the Rwandan 5/20/2020 Page 13 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) context. Commercially viable service delivery models (in partnership with public extension where suitable) will be identified, also taking into account clearly specified performance expectations and delivery standards. Possible models of ‘private advisory service’ delivery are: - Arrangements where a private firm, non-governmental organization, or a specific group of professionals (e.g., paravets) are contracted/accredited by government to provide fee-based advisory services to farmers; and - certain types of contract farming (e.g., outgrower schemes). Outgrower schemes, also known as contract farming, are broadly defined as binding arrangements through which a firm ensures its supply of agricultural products by individual or groups of farmers. Farm households participating in outgrower schemes will be tracked and reported separately from other forms of private advisory services. MINAGRI/RAB will reach out to possible service provider or specialized professional associations (e.g. the Rwanda Council of Veterinary Doctors), and explore interest in piloting a mutually negotiated service delivery model. Measure of success is the number of farmers reached by private advisory services (i.e., fee-based advisory services, certain types of contract farming). IN00837584 ►Number of new farm households participating in outgrower schemes has increased. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6,000.00 10,000.00 Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 Comments IN00837588 ►Number of Productive Alliances under implementation. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 30-Jun-2021 The Productive Alliance approach involves three core agents: (i) a group of smallholder producers; (ii) one or more buyers; and (iii) the public sector. The three agents are connected through a business proposition, or “business plan”, which describes the capital and services needed by the producers and proposes improvements that would allow them to upgrade their production capacities and skills to strengthen their linkage with the markets, i.e. the buyer(s). The implementation of this business plan within a PA project is Comments typically supported through three core inputs and/ or activities associated with producers’ needs: (i) productive investments; (ii) technical assistance; and, (iii) business development. The core inputs to support the business plan are financed through grants provided by the public sector, which are matched by contributions from the producers and in some cases also from the buyer(s). Details on the definition of Productive Alliances can be found here https://openknowledge.worldbank.org/handle/10986/25752 IN00837590 Number of Productive Alliances under implementation in Livestock Value Chain. (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 IN00837591 Number of Productive Alliances under implementation high value crops Value Chain. (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 IN00837592 ►Business leader’s perceptions about agricultural investment climate in Rwanda. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 5/20/2020 Page 14 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Pending. The baseline is Pending. The baseline to be established using a is to be established survey of business using a survey of leader. World Bank will business leader. World Value NA assist with the survey Bank will assist with the >15% template. NAEB and survey template. NAEB RDB will support with list and RDB will support of Agric. Business with list of Agric. leaders. Business leaders. Date 28-Jun-2019 04-Oct-2019 24-Apr-2020 30-Jun-2021 Composite indicator measuring interested and current investor perceptions across 8 themes: (1) Legal framework; (2) Governance; (3) Taxation and investment framework; (4) Infrastructure; (5) Access to finance; (6) Domestic resources; (7) Support services; and (8) Trading across borders. Investors responded Comments to questions on a number of sub-theme issues, providing ratings on a scale of 1 to 7 where 1 indicates that this issue is very problematic and 7 indicates that the issue is not a problem at all. The score will be measured at baseline and in year 3, and the % change will be calculated. Efficiency in Public Expenditures IN00837578 ►Reform of RAB. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The year 1 deliverable was met. Implementation the RAB reforms is ongoing. However a review of the implementation progress of the Office of the Auditor General (OAG) recommendations The year 1 deliverable (Financial and was met. The Compliance Audit as at Implementation Plan for 31 December 2019 Unqualified audit Value NA the new RAB shows that about 42% opinion on financial Restructuring Order was of the recommendations statement of RAB prepared and approved are either partially or not by its Board. yet implemented. RAB Management has been advised to conduct monthly monitoring of the implementation status of the audit recommendations and submit an action plan for partially implemented or not implemented by 15 May 2020. Date 22-Apr-2019 04-Oct-2019 24-Apr-2020 30-Jun-2021 RAB is in the middle of an institutional change process involving substantial governance and structural reforms. A Prime Minister Order on the restructuring of RAB is under preparation and is expected to be approved within this fiscal year. Key milestones in implementing the reforms are: Year 1: a plan for the Comments implementation of RAB’s restructuring prepared and approved by its Board; Year 2: a more efficient planning, budgeting and execution process, resulting in no deviation between budget and outturn expenditure; and Year 3: the use of good practices in financial management leading to an unqualified audit. The achievement of these three milestones will each trigger disbursements. IN00837585 5/20/2020 Page 15 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) ►Annual increase of earmarked transfers from MINAGRI to local government. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 4.00 5.00 Date 29-Jun-2018 04-Oct-2019 24-Apr-2020 31-Mar-2021 Comments Percentages of agriculture earmarked transfer in the total district expenditures. Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Organizational Development Plan successfully prepared and implementation on track. (Output, 17,888,889.00, 0%) Baseline Actual (Previous) Actual (Current) 2020/2021 Upgrade of HR Value NA NA NA management function completed Date -- 04-Oct-2019 24-Apr-2020 -- The year 1 DLI-1 target (completion of organizational review and official management response letter) was met, and the corresponding amount of US$ 7.98 million (IDA and MDTF, combined), was disbursed on Comments November 26, 2019. The year 2 DLI deliverable (final Organizational Development Plan signed by the Minister of Agriculture and Animal Resources) is expected by the end of June 2020. ►DLI 2 Improved analytical and policy reform competencies demonstrated. (Output, 17,888,889.00, 0%) Baseline Actual (Previous) Actual (Current) 2020/2021 Agricultural input subsidy schemes reviewed, alternative models for Value NA NA NA increasing efficiency assessed, reforms agreed and implemented Date -- 04-Oct-2019 24-Apr-2020 -- The year 1 target, preparation of a Private Sector Leveraging Strategy (PSLS) and its implementation plan was met and the Bank made the corresponding disbursement in November 2019. Implementation of the PSLS is ongoing. MINAGRI shared with the Bank its annual implementation progress report (year 2 deliverable) for comments in March 2020 and the Bank recommended areas for it improvement, Comments i.e. inclusion of detailed description of PPP investments; progress on sector policy reforms to leverage private sector resources; and updated progress on the implementation plan of the private sector leveraging strategy. The improved report is necessary to fully meet the year 2 target and trigger the corresponding disbursement, subject to the full verification process. ►DLI 3 Digital information platforms designed and operational. (Output, 15,888,889.00, 0%) Baseline Actual (Previous) Actual (Current) 2020/2021 5/20/2020 Page 16 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) The Livestock registration application (holding cow data with national coverage) will be interfaced with MIS, ALIS I and II, Farmer registration application in the common data warehouse platform Value None none none Sector Performance Dash Board is in place and publicly accessible online, whereby it provides reports on national agricultural macro indicators, national Indicator of Food Security and PSTA4 results indicators Date -- 04-Oct-2019 24-Apr-2020 -- MINAGRI successfully interfaced MIS and ALIS and the corresponding dashboard is available to MINAGRI management and staff. This constitutes a critical step towards the completion of a full-fledged data warehouse before the end of the Program. Based on the progress to date, the year 1 target has been achieved. Disbursement can proceed subject to successful completion of the verification requirements. However, there is still a significant amount of work to be done to develop, maintain and manage a full-fledged common data Comments warehouse system. Supplementary specialized IT skills are needed to ensure full achievement of the DLI by year 3 as planned. Next steps and milestones for MINAGRI to be achieved in the next two years have been agreed on. As a key step, MINAGRI takes decisive action to address IT staffing and skills gaps. The World Bank will also mobilize complementary technical support to MINAGRI, to improve and complete the common data warehouse in the required timeframe. ►DLI 4 Mechanism to strengthen Agriculture Public-Private Dialogues and Agriculture Value Chain Platforms designed and implemented. (Output, 15,888,889.00, 0%) Baseline Actual (Previous) Actual (Current) 2020/2021 Additional 2 Agriculture PPDs held Agriculture VC Value NA NA NA platforms are fully functional and yielded evidence of satisfactory results (as per M&E of operating plan) Date -- 04-Oct-2019 24-Apr-2020 -- MINAGRI successfully met the year 1 target and the corresponding disbursement was made before the end of Comments the end of June 2019. Work to meet the year 2 deliverable is ongoing ►DLI 5 New irrigation area identified, developed and/or managed where commercial viability has been a determining appraisal criterion. (Output, 17,888,888.00, 0%) 5/20/2020 Page 17 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) Baseline Actual (Previous) Actual (Current) 2020/2021 Value 0.00 0.00 0.00 1,680.00 Date -- 04-Oct-2019 24-Apr-2020 -- There are no targets for year 1. Work towards achieving the year 2 target is progressing. The World Bank and MINAGRI have clarified the guiding principles for implementation of this DLI, which are complementary to the provisions of the legal and technical program documents. To be eligible, all investment projects need to have been approved after PSTA4 came into effect. Eligible investments can come through two tracks: (a) large- scale irrigation schemes developed in line with the provisions of the Law no. 14/2016 governing PPPs in Rwanda; and (b) smaller-to-medium scale irrigation schemes, provided that: (i) the investment decisions were Comments based on a feasibility analysis, with due focus on commercial viability and compliance with social and environmental requirements; and (ii) the relationship between the public and private partners is long-term and formalized through Memoranda of Understanding (MoUs) or other relevant contractual arrangements. For the second track projects, MINAGRI will define specific eligibility criteria that are consistent with the general PPP approaches but also recognize that some adaptations are needed to the sector and scale. The WB will assist MINAGRI in developing the eligibility criteria, in line with international good practices on agri-PPPs. ►DLI 6 New terracing area identified, developed and/or managed where commercial viability has been a determining appraisal criterion. (Output, 17,888,888.00, 0%) Baseline Actual (Previous) Actual (Current) 2020/2021 Value 0.00 0.00 0.00 2,310.00 Date -- 04-Oct-2019 24-Apr-2020 -- There are no targets for year 1. Work is progressing towards achieving the year 2 target. Guiding principles for the DLI implementation, which are complementary to the provisions in the legal and technical program documents were clarified. To be eligible, all investment project decisions must have been made after PSTA4 came into effect. Given the specifics of terracing in the Rwandan context, it is expected that eligible projects will be selected from a pool of small- to medium-scale developments. Such projects can be eligible provided that: (i) the investment decisions were based on a feasibility analysis, with due focus on commercial viability Comments and compliance with social and environmental requirements; and (ii) the relationship between the public and private partners is long-term and formalized through Memoranda of Understanding (MoUs) or other relevant contractual arrangements. MINAGRI will define specific eligibility criteria that are consistent with the general PPP approaches and adapted to the sector and scale. The WB will assist MINAGRI in developing these eligibility criteria, in line with international good practice on agri-PPPs. ►DLI 7 Volume of private sector investment (in US$) matching public financing in PPP infrastructure project. (Output, 27,888,888.00, 0%) Baseline Actual (Previous) Actual (Current) 2020/2021 7.15 million US$ or Value NA NA NA more Date -- 04-Oct-2019 24-Apr-2020 -- Comments There are no year 1 targets. Work towards achieving the year 2 target is underway. To be eligible, all investment project approvals must have been made after PSTA4 came into effect. Eligible investments can be presented either as: (i) large-scale irrigation schemes, developed in line with the provisions of the Law no. 14/2016 governing PPPs in Rwanda. MINAGRI and NAEB have PPP projects in the pipeline, however no private partners have committed as of yet; or (ii) smaller-to-medium scale agri-infrastructure development schemes, provided that: (i) the investment decisions were based on a feasibility analysis, with due focus on commercial viability and compliance with social and environmental requirements; and (ii) the relationship between the public and private partners is long-term and formalized through Memoranda of Understanding (MoUs) or other relevant contractual arrangements. For the second track projects, MINAGRI will define specific eligibility criteria that are consistent with the general PPP approaches and which need to be adapted 5/20/2020 Page 18 of 19 The World Bank Implementation Status & Results Report Transformation of Agriculture Sector Program 4 Phase 2 (P161876) to the sector and scale. The World Bank will assist MINAGRI in developing these eligibility criteria, in line with international good practice on agri-PPPs ►DLI 8 Private sector extension service models designed, launched and achieving positive response. (Intermediate Outcome, 22,888,889.00, 0%) Baseline Actual (Previous) Actual (Current) 2020/2021 Number of farm households reached by private advisory services (non- outgrower schemes) has increased: 8000 Value NA NA NA Number of new farm households participating in outgrower schemes has increased: 10,000 Date -- 04-Oct-2019 24-Apr-2020 -- There are no year 1 targets, however work on this DLI was started in year 1, as a result the year 2 target has been achieved through the provision of fee based veterinary services by para-vets and will be put forward for verification. A workplan to achieve the year 3 target is now being developed. The World Bank team, MINAGRI and RAB jointly reviewed various existing private sector extension service models developed under PSTA4, to Comments identify those that meet the requirements of this DLI and year 3 target. Promising models were identified; e.g. agronomic services through contract farming arrangements and technical services to cooperatives by youth groups. ►DLI 9 Reform of RAB. (Output, 16,888,890.00, 0%) Baseline Actual (Previous) Actual (Current) 2020/2021 Implementation Plan for Implementation Plan for Unqualified audit RAB Restructuring RAB Restructuring Value None opinion on financial approved by Cabinet and approved by Cabinet and statement of RAB RAB Board RAB Board Date -- 04-Oct-2019 24-Apr-2020 -- The year 1 target has been met. A restructuring strategy for RAB, the first phase of this process, was prepared and a disbursement of US$6.37 million against it was made on June 208, 2019. Implementation of the RAB restructuring is ongoing as planned. RAB has improved its internal auditing capacity by increasing the number of internal auditors from 2 to 5, and by assigning more specific oversight responsibilities to them. These measures are intended to help tighten internal controls and ensure that RAB will achieve a clean audit opinion Comments by the end of the Program. Identified staff gaps (about 15% of the needs) are awaiting Cabinet approval. RAB’s Procedures Manual was approved and proposed Internal Rules and Regulations are expected to be approved in October 2019. Preparation of RAB’s Strategic Plan for the next 5 years is slotted to start in October 2019. 5/20/2020 Page 19 of 19