The World Bank Report No: ISR5036 Implementation Status & Results Madagascar Integrated Growth Poles (P083351) Public Disclosure Copy Operation Name: Integrated Growth Poles (P083351) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 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 27-Mar-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 Public Disclosure Copy Component C: Tourism led growth in Nosy Be 32.00 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 Moderately Satisfactory Overall Risk Rating Page 1 of 8 The World Bank Report No: ISR5036 Implementation Status Overview Based on the recommendations of the mission of August 2009, partial disbursement of a total amount of US$3,685,000 was authorized under exceptions to OP/BP 7.30 to allow financing implementation of planned and on-going necessary activities that specifically address safeguards and reputation risks. Most of these activities have been satisfactorily implemented. Since the recent authorization of full replenishments of the Project Special Account by the World Bank management, disbursements have picked up pace. Public Disclosure Copy Disbursements between Q2 FY11 and Q2 FY 12 are US$4.76 million and overall total disbursement of CR. 4101 MAG stands at 95%. Disbursement of the additional credit (CR. 43990) is only 19% as most of the activities could not be implemented since the crisis. Overall implementation progress therefore continues to be rated as Moderately Satisfactory albeit with qualifications. This rating reflects the implementation progress and disbursement under exception measures to OP/BP 7.30, particularly focused on the satisfactory management of safeguards risks and is therefore not reflective of the achievement of the original performance indicators. It must be noted that up to the crisis of 2009, four out of the five PDO indicators were either met or exceeded and three out of four intermediate results indicators were already achieved. The economic impact of the crisis has led to a significant downturn in the number of new investments and formal jobs which has adversely affected project performance. There is now an opportunity to restructure and extend the Project to respond better to current realities (including revising some of the performance indicators) and ramp up Project implementation. 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: ISR5036 Indicator Name Core Unit of Measure Baseline Current End Target Annual private investment flows Text Value 84 808 1500 Date 31-Dec-2005 31-Dec-2010 31-Dec-2012 Public Disclosure Copy Comments drop in investment flows post crisis Number of new businesses registered in the Text Value Antsirabe: 1703 Nosy Be- Antsirabe: 2227 Nosy Be- Antananarivo-Antsirabe: 2100 three poles Diana: 400 Fort Dauphin: 82 Diana: 1124 Fort Dauphin: Nosy Be-Diana: 650 Fort 973 Dauphin: 450 Date 31-Dec-2005 31-Dec-2010 31-Dec-2012 Comments Number of new jobs created in the three poles Text Value Nosy Be: 1400 Antsirabe: 850 Nosy Be: 3836 Nosy Be: 6500 Antananarivo- Taolagnaro: 1015 Antsirabe: 3429 Taolagnaro: Antsirabe: 5000 Taolagnaro: 6222 5000 Date 31-Dec-2005 31-Dec-2010 31-Dec-2012 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Component A: Value of new loans disbursed to Text Value 0 US$31.8 million US$25 million MSMEs by participating banks through the GPP Date 30-Dec-2005 31-Dec-2008 31-Dec-2008 Comments target indicator exceeded Component A: Number of new loans disbursed Text Value 0 1,878 439 by participating bansk thhrough the GPP Date 30-Dec-2005 31-Dec-2008 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: 25 days poles:7 days Public Disclosure Copy Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments rolling back of reforms since the crisis Component A: Number of MSME recipients of Text Value 0 194 900 subsidized BDS services Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments disbursements on this activity ceased since the crisis in 2009 Page 3 of 8 The World Bank Report No: ISR5036 Indicator Name Core Unit of Measure Baseline Current End Target Component A: Expenditure on tourism Text Value 0 na 25% promotion initiatives by Regional Tourism Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Public Disclosure Copy Offices (ORTs) Comments no data available and disbursements suspended Component A: Annual sales value of assisted Text Value 0 0 15% firms in selected value chains Date 30-Dec-2005 30-Sep-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-2010 31-Dec-2012 Comments disbursements suspended since crisis Component B: Volume of products handled in Text Value 0 0 500 the agro techno pole Date 31-Dec-2005 30-Sep-2009 31-Dec-2012 Comments no progress since the political crisis Component B: % of regional MAP activities Text Value 0 0 100% supported by the project completed Date 31-Dec-2005 30-Sep-2009 31-Dec-2012 Comments MAP suspended since the crisis Component C: Number of tourist arrivals per Text Value 39,376 62,786 85,000 annum Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments Component C: Number of tourism related jobs Text Value 1,386 2,687 5,900 Public Disclosure Copy created in Nosy Be Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments Component C: % increase in the number of Text Value 0 43% 70% hotel rooms Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments Page 4 of 8 The World Bank Report No: ISR5036 Component C: % of population with access to Text Value 35% 40% 75% portable water and electricity Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments data needs to be validated Public Disclosure Copy Component C: % increase in km of Text Value 0 30% 60% rehabilitated roads Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments data needs to be updated Component C: Completion of the rehabilitation Text Value no action of Hellville and Ankify ports Date 30-Sep-2011 Comments this activity will be dropped in 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 Be Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments slippage in days since the crisis as support to the Municipality was suspended Component C: Value of additional Municipal Text Value 0 56% 150% revenue generated Date 30-Dec-2005 31-Dec-2010 31-Dec-2012 Comments support to the Municipality suspended since the crisis Component C: % of regional MAP activities Text Value 0 0 100% supported by the project completed Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments MAP activities suspended since the crisis Public Disclosure Copy Component D: Number of tourist arrivals in Text Value 13,011 14,688 40,000 Taolagnaro per annum Date 30-Dec-2005 30-Sep-2011 31-May-2012 Comments Component D: Number of tourism related jobs Text Value 111 1694 1,800 created in Taolagnaro Date 30-Dec-2005 31-Dec-2010 31-Dec-2012 Comments Page 5 of 8 The World Bank Report No: ISR5036 Component D: % increase in number of hotel Text Value 0 98% 35% rooms Date 30-Dec-2005 31-Dec-2010 31-Dec-2012 Comments Public Disclosure Copy Component D: % of population with access to Text Value 45% 75% 75% portable water and electricity Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments data only for water; target attained Component D: Length (km) of roads Text Value o 40% 60% rehabilitated Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments data to be updated Component D: Time required to issue a Text Value 42 days 45 days 15 days construction permit by the Municipality of Taolagnaro Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments slippage since the crisis Component D: Value of additional Municipal Text Value 0 313% 300% revenue generated Date 30-Dec-2005 30-Sep-2011 31-Dec-2012 Comments support to the Municipality was suspended since 2009 Component D: Volume of traffic handled by Text Value 0 450 750 Ehoala Port (*000 tonnes) Date 30-Dec-2005 31-Dec-2010 31-Dec-2012 Comments Component D: Number of new jobs in mining Text Value 904 2334 2,000 and construction Date 30-Dec-2005 30-Sep-2009 31-Dec-2012 Comments target exceeded Public Disclosure Copy Component D: % of regional MAP activities Text Value 0 0 100% supported by the project completed Date 30-Dec-2005 30-Sep-2009 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 30-Sep-2009 31-Dec-2012 Comments Page 6 of 8 The World Bank Report No: ISR5036 Component E: Timely submission of Text Value S S S satisfactory monitoring reports Date 30-Dec-2005 30-Sep-2009 31-May-2012 Comments Public Disclosure Copy Component E: Text Value No No Yes Operational budgets are managed locally Date 30-Dec-2005 30-Sep-2009 31-Dec-2012 Comments Component E: Text Value NA MS S Timely submission of satisfactory reports for the income restoration program in Fort Dauphin Date 30-Dec-2005 30-Sep-2009 31-Dec-2012 Comments report was submitted after delay Component E: Text Value NA MU S Monitoring and evaluation rating is satisfactory Date 30-Dec-2005 30-Sep-2009 31-Dec-2012 Comments M&E was neglected since project came under OP 7.30 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 Date 30-Dec-2005 31-Dec-2008 31-Dec-2012 Comments Data gathered from retrofit exercise Active Loan Accounts Number Value 0.00 1496.00 439.00 Date 30-Dec-2005 31-Dec-2008 31-Dec-2012 Public Disclosure Copy Comments Data gathered from retrofit exercise Data on Financial Performance (as of 18-Nov-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P083351 IDA-41010 Effective 12-Jul-2005 13-Jul-2005 28-Sep-2005 31-Dec-2011 P083351 IDA-43990 Effective 17-Apr-2008 08-May-2008 06-Aug-2008 31-Dec-2012 Page 7 of 8 The World Bank Report No: ISR5036 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P083351 IDA-41010 Effective XDR 85.90 85.90 0.00 82.11 3.79 96.00 P083351 IDA-43990 Effective XDR 25.00 25.00 0.00 4.73 20.27 19.00 Public Disclosure Copy Disbursement Graph 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 and extended to better respond to current challenges and improve project performance under existing conditions in Madagascar. Restructuring History Public Disclosure Copy RVP Approved on 13-Dec-2007, Level two Approved on 14-Nov-2011 Related Projects P110405-MG - Integrated Growth Poles Additional Financing Credit Page 8 of 8