The World Bank Report No: ISR6836 Implementation Status & Results Moldova Rural Investment & Services Project (APL #2) (P090673) Public Disclosure Copy Operation Name: Rural Investment & Services Project (APL #2) (P090673) Project Stage: Implementation Seq.No: 13 Status: ARCHIVED Archive Date: 11-Mar-2012 Country: Moldova Approval FY: 2006 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Adaptable Program Loan Implementing Agency(ies): Key Dates Board Approval Date 28-Mar-2006 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date 15-Oct-2008 Last Archived ISR Date 11-Mar-2012 Effectiveness Date 07-Jul-2006 Revised Closing Date 30-Jun-2013 Actual Mid Term Review Date 20-Sep-2008 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project is the second Phase of a two-phase Rural Investment and Services Program. The Program objective is to provide long-term support to accelerate agricultural recovery and growth so that Moldova's agricultural and rural sectors can play their full role in providing the underpinnings for future income growth and poverty reduction. Under this overarching objective, the project will strive to continue foster the post-privatization growth in the agricultural and rural sectors of Moldova by improving access of farmers and rural entrepreneurs to legal ownership status, know-how, knowledge and financial services, while building the capacity of the private and public institutions to ensure the sustainability of the activities. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Rural Advisory Services 7.50 Rural Business Development 1.10 Rural Finance 21.10 Public Disclosure Copy Land Re-parceling 0.75 Drought Adaptation 5.84 Project Management 0.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Page 1 of 7 The World Bank Report No: ISR6836 Implementation Status Overview The project's closing date was recently extended from June 30, 2012 to June 30, 2013. It continues to register satisfactory progress towards the achievement of the PDO and the implementation outlook for the remainder of its effectiveness is positive. The PDO indicators and the majority of component-related results indicators are expected to be met by the closing date (see detailed information on indicators in Annex 1). The only indicator which is still problematic (although improving) relates to the Portfolio at Risk for the SCA industry. Public Disclosure Copy Approximately 89% of IDA and SIDA resources were disbursed as of May 1, 2012. The original IDA financing (Credit 4157-MD/Grant H2110-MD) is expected to be fully disbursed and close in line with the original closing date of June 30, 2012. The disbursement outlook for the remaining sources of funding, mainly IDA Credit 4416-MD, IDA Credit 4563-MD and TF99549 remains favorable. The Bank team carried out an implementation support visit during April 25 – May 7, 2012 to focus primarily on the factors that could ensure the successful implementation of the Rural Finance Component’s credit line, which was recently augmented with additional resources from the Drought Adaptation Component (October, 2011). Macro factors have stabilized and lending by the banking sector has generally resumed, after the contraction cause by the 2008 financial crisis. However, there were two specific constraints the team focused on: (i) Interest rate competitiveness; and (ii) Co-financing by the participating banks. The team proposed mitigation measures for both constraints (see details under status of component). Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Growth in lending to agricultural and rural Text Value 2,140,000,000.00 Moldovan 4,020,000,000 2,850,000,000.00 Moldovan sectors in the portfolios of financial Lei Lei intermediaries Date 30-Jun-2006 31-Dec-2011 30-Jun-2013 Comments Percentage of beneficiaries whose income has Text Value 0 (as beneficiaries are yet to 76% 80% increased be determined) Date 28-Sep-2006 30-Jun-2010 30-Jun-2013 Comments The indicator will be updated through an impact assessment to be carried out Public Disclosure Copy in 2012. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of beneficiaries of the Rural Advisory Text Value 300,000 (per year) 372,000 350,000 (per year) Services Date 31-Aug-2006 05-Jan-2012 30-Jun-2013 Comments There 113,000 beneficiaries in the first quarter of 2012. Page 2 of 7 The World Bank Report No: ISR6836 Percentage of revenues of regional and local Text Value <3% 41.35 25% consultants derived from users fees or other Date 31-Aug-2006 30-Jun-2010 30-Jun-2013 sources outside central government budget Comments The indicator will be updated Public Disclosure Copy through an impact assessment to be carried out in 2012. Number of businesses created and registered Text Value 0 (zero) 968 600 Date 31-Aug-2006 31-Mar-2012 30-Jun-2013 Comments Number of loans disbursed from the credit Text Value 0 (zero) 615 450 facility Date 31-Aug-2006 31-Mar-2012 30-Jun-2013 Comments Portfolio quality in the SCA industry maintained Text Value 5% 8.2 <5% at current levels (measured as Portfolio at Risk Date 31-Aug-2006 31-Mar-2012 30-Jun-2013 30 days) Comments The situation is leveling out for deposit taking SCAs. Land re-parceling implemented with Text Value 0 (zero) 40 30% participation of at least 30% of the population in Date 31-Aug-2006 30-Jun-2010 30-Jun-2010 6 villages Comments Activity completed Average number of and distance to parcels per Text Value 0 31 30% household is reduced as result of land Date 30-Jun-2006 30-Sep-2010 30-Jun-2010 reparceling component Comments Activity completed. Number of land transactions are increased as a Text Value 0 10 15% result of land reparceling component Date 30-Jun-2006 31-Mar-2010 30-Jun-2010 Comments Data from the original 6 villages, therefore unchanged since last ISR (when activities were completed). Public Disclosure Copy Land Reparceling implemented with Percentage Value 0.00 17.00 15.00 participation of at least 15% of the population in Date 30-Jun-2009 05-Jan-2012 05-Jan-2012 the 40 additional villages Comments Activity completed. Total number of parcels owned by participating Percentage Value 0.00 10.00 15.00 villages is reduced in the 40 additional villages Date 31-Dec-2009 05-Jan-2012 05-Jan-2012 Comments Activity completed. Page 3 of 7 The World Bank Report No: ISR6836 Average number of parcels per participating Percentage Value 0.00 10.00 15.00 household is reduced in 40 additional villages Date 30-Jun-2009 05-Jan-2012 05-Jan-2012 Comments Activity completed. Public Disclosure Copy Number of rehabilitated hectares of irrigated Text Value 0 625 700 land (cumulative) Date 30-Jun-2008 05-Jan-2012 30-Jun-2013 Comments Size of investment in irrigation Text Value 0 US1.15 million US$1.2million Date 30-Jun-2008 31-Mar-2012 30-Jun-2013 Comments Number of beneficiaries trained on topics Text Value 0 38,000 25,000 related to irrigation Date 30-Jun-2008 05-Jan-2012 30-Jun-2012 Comments Adoption rates of drought adaptation Text Value 0% 30 30% agronomics Date 30-Jun-2008 31-Dec-2010 30-Jun-2012 Comments Volume of Bank Support: Lines of Credit - Amount(USD) Value 710000.00 0.00 Microfinance Date 31-Mar-2012 30-Jun-2013 Comments Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 25100000.00 24600000.00 Date 31-Mar-2012 30-Jun-2013 Comments Volume of Bank Support: Enabling Amount(USD) Value 500000.00 410000.00 Environment - Microfinance Date 31-Mar-2012 30-Jun-2013 Comments No of active loan accounts -Microfinance Number Value 20000.00 40494.00 40000.00 Date 31-Mar-2012 30-Jun-2013 Public Disclosure Copy Comments Indicators for monitoring It is a normal decrease Indicators for monitoring purpose only. Conventional considering the situation in purpose only. baselines set at 20000. the SCA industry. Percentage of project-supported institutions Percentage Value 100.00 100.00 100.00 that are reporting on this indicator Sub Type Supplemental No of active loan accounts -SME Number Value 1033.00 Date 31-Mar-2012 30-Jun-2013 Page 4 of 7 The World Bank Report No: ISR6836 Comments Indicator set for monitoring purposes only. No target for the project Public Disclosure Copy % active loans to women - Microfinance Percentage Value 10.00 37.00 20.00 Date 31-Mar-2012 30-Jun-2013 Comments Indicator for monitoring The indicator is calculated as Indicator for monitoring purpose only. Conventional a weighted average for SME purpose only. baseline set at 10. and SCA lending. Percentage of project-supported institutions Percentage Value 0.00 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Outstanding SME Loan Portfolio Amount(USD) Value 83200000.00 Date 31-Mar-2012 30-Jun-2013 Comments Indicator for monitoring purpose only. No target set for the project Percentage of project-supported institutions Percentage Value 100.00 that are reporting on this indicator Sub Type Supplemental Outstanding Microfinance Loan Portfolio Amount(USD) Value 22000000.00 Date 31-Mar-2011 30-Jun-2013 Comments Indicator for monitoring purpose only. No target set for project. Percentage of project-supported institutions Percentage Value 100.00 that are reporting on this indicator Sub Type Supplemental Volume of Bank Support: Institutional Amount(USD) Value 120000.00 50000.00 Public Disclosure Copy Development - Microfinance Date 31-Mar-2014 30-Jun-2013 Comments Volume of Bank Support: Institutional Amount(USD) Value 300000.00 280000.00 Development - SME Date 31-Mar-2012 30-Jun-2013 Comments Data on Financial Performance (as of 05-Jun-2012) Financial Agreement(s) Key Dates Page 5 of 7 The World Bank Report No: ISR6836 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P090673 IDA-41570 Effective 28-Mar-2006 13-Apr-2006 07-Jul-2006 30-Jun-2010 30-Jun-2012 P090673 IDA-44160 Effective 13-May-2008 02-Jun-2008 19-Aug-2008 30-Jun-2010 30-Jun-2013 Public Disclosure Copy P090673 IDA-45630 Effective 14-May-2009 11-Jun-2009 08-Oct-2009 30-Jun-2012 30-Jun-2013 P090673 IDA-H2110 Effective 28-Mar-2006 13-Apr-2006 07-Jul-2006 30-Jun-2010 30-Jun-2012 P090673 TF-54222 Closed 16-Dec-2004 16-Dec-2004 16-Dec-2004 09-Sep-2008 31-Dec-2009 P090673 TF-57273 Closed 10-Oct-2006 10-Oct-2006 10-Oct-2006 30-Jun-2010 30-Apr-2012 P090673 TF-99549 Effective 23-May-2011 02-Jun-2011 02-Jun-2011 30-Apr-2012 31-Dec-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P090673 IDA-41570 Effective USD 7.50 7.50 0.00 7.94 0.05 106.00 P090673 IDA-44160 Effective USD 6.00 6.00 0.00 2.29 3.44 38.00 P090673 IDA-45630 Effective USD 10.00 10.00 0.00 10.48 0.00 105.00 P090673 IDA-H2110 Effective USD 7.50 7.50 0.00 7.94 0.05 106.00 P090673 TF-54222 Closed USD 1.73 1.71 0.01 1.71 0.00 100.00 P090673 TF-57273 Closed USD 6.30 7.27 0.00 6.33 0.00 87.00 P090673 TF-99549 Effective USD 1.84 1.70 0.00 0.97 0.70 57.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR6836 Key Decisions Regarding Implementation Currently there are no key decision for disclosure Public Disclosure Copy Restructuring History CD Approved on 17-Mar-2009, Level two Approved on 11-Oct-2011, Level two Approved on 13-Apr-2012 Related Projects P110421-Rural Investment & Services Project 2 - Additional Financing, P116321-Rural Investment and Services Project II- Additional Financing Public Disclosure Copy Page 7 of 7