Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) Rural Alliances Project II (P127743) LATIN AMERICA AND CARIBBEAN | Bolivia | Agriculture Global Practice | IBRD/IDA | Specific Investment Loan | FY 2013 | Seq No: 6 | ARCHIVED on 16-Sep-2015 | ISR19095 | Implementing Agencies: EMPODERAR Key Dates Key Project Dates Board Approval date:23-Oct-2012 Effectiveness Date:09-May-2013 Planned Mid Term Review Date:04-May-2015 Actual Mid-Term Review Date:04-May-2015 Original Closing Date:30-Nov-2017 Revised Closing Date:30-Nov-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to improve accessibility to markets for small rural producers in the Selected Areas by: (a) promoting productive alliances between different small rural producer organizations and purchasers; (b) empowering rural producers through the establishment and strengthening of self-managed grass-root organizations; (c) increasing access to productive assets, technologyand financial services; (d) promoting more effective, responsive and accountable service organizations at the local level; and (e)enhancing environmental sustainability of productive practices. The Project is a follow on operation to the successful PAR I, whichtested the model for improving market access. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Institutional Strengthening:(Cost $3.79 M) Implementation of Rural Alliances:(Cost $52.05 M) Project Management, Monitoring and Evaluation:(Cost $8.70 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate 9/16/2015 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) Implementation Status and Key Decisions This ISR presents the findings and recommendations of the MTR, which took place on May 4-15, 2015. During the mission, field visits to six beneficiary producer organizations were carried out in the municipalities of Buena Vista, Yacaparni, Samaipata, el Torno and Coroico. An external MTR was commissioned by the implementing agency; during the evaluation, visits were held at ten beneficiary organizations, as well as meetings with regional project staff. Overall assessment and main achievements. The Project is progressing satisfactorily towards the achievement of outputs and intermediary indicators, which suggest a high likelihood of achieving the project development objectives. The emerging results of the impact evaluation of PAR I highlight the relevance of the Project design to the promotion of small producer integration into markets and enhancement of farmer income. These results therefore suggest a high probability of positive impacts from PAR II and a high relevance in the context of public policy for supporting smallholder market integration. In terms of efficiency in the implementation, there are significant milestones. The targets expected for the second year of implementation, in relation to the number of financial agreements signed for alliance model 1, has been surpassed. PAR II has established 288 financial transfer agreements with RPOs; a number that exceeds by 63% the target for the second year of project implementation (estimated at 176 agreements signed). By the end of August 2015, it is expected that a total of 356 partnerships agreements will be signed (from the first call), exceeding the target by 102% for the second year of the project. Under Component 1, the two calls for proposals undertaken by the project for alliances model 1 have been supported by massive campaigns—a total of 375 information & communication events have been held, with about 15,508 participants (37% of event participants were women). At the time of the MTR, under Component 2, the project had received a total of 1064 request for support from RPOs. The piloting of alliance models 2 and 3 is behind scheduled, however; but the speed of implementation is expected to accelerate, as the instruments for implementation have already been developed, including significant progress in details of the partnership with the financial institution, to pilot alliance model 3. Furthermore, of a total of 26 productive infrastructure projects to be targeted, feasibility studies have been carried out for three, two are in the bidding process and twenty-two subprojects have been identified. It is projected that by the end of 2016, all work will be either contracted, under implementation or completed. Component 3- M&E & Project Management. The project M&E system is in place and functional, however, plans for updating the system are facing important delays, as the scope of improvements proposed, to make the system more user friendly and operational off-line and online all across the regional offices, were underestimated. Currently, project management and monitoring are done using modules from both the system used under PAR I and the one currently under development for PAR II. A milestone in the M&E has been the establishment of the baseline for the impact evaluation of the project. A key activity that is facing delays is the development of the public information system. Plans for accelerating progress were agreed upon during the mission and included in the agreements of the Aide Memoire. The project has completed the recruitment of personnel at the PMU and regional offices, with the exception of two regional financial officers and infrastructure experts. The process for filling these positions is ongoing, with the full project staff, national and regionally, expected to be assembled by September 2015. The Mission provided a set of recommendations and agreement was reached on a set of activities to be undertaken in the next few months in order to improve efficiencies in the implementation of the project. The proposed recommendations centered on: i) simplifying procedures and improving instruments aligned with business plan cycles; ii) enhancing capacities of the consultants supporting project implementation and adjusting the range of financial incentives in alignment with responsibilities; iii) defining procedures to ensure the quality of the design of infrastructure subprojects; and iv) clarifying methodologies for monitoring specific project indicators (at the PDO and intermediary levels). Budget commitments. Resources committed to addressing agreements signed with RPOs at the moment of the MTR (288 agreements) represent 51% of total resources allocated for supporting rural partnerships (Business Plans- BPs). At the closing of the first call for proposals period (June-August 2015), financial commitments would reach 63% of the total project allocation to BPs. During the first quarter of 2016, it is estimated that the project will have committed all the budget allocated to support financial transfers to producer organizations (US$ 33.8 million). The project will commit the totality of the funds with only two calls for proposals, rather than four, as originally planned. The project faces a budget shortfall for achieving the goal set in the number of partnerships to be financed. Due to a number of factors, the average cost per beneficiary partnership (i.e. sub-project) has risen; therefore, in order to achieve the goal set by the project, in terms of the number of transfer agreements/business plans (645 in total), the project would face a deficit of $US6.6 million from the budget originally allocated. To cover this deficit, PAR II could reallocate $US2.4 million from other categories. With this reallocation, the project would be able to finance a total of 574 partnerships; this is 71 alliances less than the expected goal. Consequently, at least $US4.2 million in additional funding would be required to cover this deficit. The government is also interested in expanding project activities in current and new areas, which would translate into additional financing (AF) needs, initially estimated at about $US40 million. Thus, the AF would mainly focus on: i) the coverage of financial needs for approved plans by PAR II and ii ) expansion/scaling-up project activities in the departments/municipalities of current coverage, as well as in new departments/municipalities (e.g. Beni). Additional activities identified during the mission, with potential to be included in the AF of PAR II, are support for strengthening producer networks and services by RPOs to members, particularly aligned with value addition activities. Disbursements. At the time of the MTR, the project has disbursed 28.2% of the total funds (with a disbursement lag of two months). At the preparation of the ISR, the disbursement rate increased to 33.7%. Disbursements are expected to increase significantly during the 1st, 2nd and 3rd quarters of FY16 to complete commitments for alliances approved under calls 1 and 2. 9/16/2015 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) Fiduciary issues. Based on the last supervisory visit made by the FMS to the project in June 2015, the FM performance rate remains Satisfactory (S), taking into account that the SIGG system has the alert system fully functional and is adequately monitoring the subprojects. Procurement is downgraded from Satisfactory (S) to Moderately Satisfactory (MF); the independent procurement audit performed by PWC (may 2015) review (IPR) demonstrated some issues in the procurement; specially related to the procurement planning and process. Safeguard issues. Safeguards are rated Satisfactory. The project promotes a proactive approach to environmental management, focusing on enhancing the positive environmental outcomes of the project activities. For doing so, mitigation measures to address identified short and long-term environmental risks are included as part of the business plans. The project has also designed instruments to monitor their implementation. An upcoming visit to the field in September/October 2015 by WB staff, to assess the application of the instruments, was agreed upon during the mission. In the social aspects, the project promotes the social assessment of the business plan (alliance plan), including the application of guidelines to assess capacities of the RPOs. Capacity building activities for different RPO members is at the core of the support provided by the project. The project promotes the participation of women in the productive alliances (32% of the beneficiaries to date are women). A total of 26 dissemination events, specifically targeting women, were held during the call for proposals. 9/16/2015 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Increase in the average volume of sales of the product(s) involved in the alliances (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 18-Aug-2017 Comments None of the alliances has finalized its cycle; the indicator will be reported as progress is made with the implementation of the alliances. PHINDPDOTBL  Producer organizations that register income and costs, and are accountable to their members (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/16/2015 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) Value 0.00 0.00 0.00 80.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 18-Aug-2017 Comments None of the alliances has finalized its cycle; the indicator will be reported as progress is made with the implementation of the alliances. PHINDPDOTBL  Producer organizations that maintain or improve their commercial relations (alliances) for at least two productive cycles (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 18-Aug-2017 Overall Comments None of the alliances has finalized its cycle; the indicator will be reported as progress is made with the implementation of the alliances. Intermediate Results Indicators PHINDIRITBL  1.1 Producer organizations that receive assistance to be formalized (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 60.00 137.00 300.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 31-Aug-2016 PHINDIRITBL  1.2 Alliances with signed financing agreement for integral support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 31.00 288.00 645.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 31-Aug-2016 9/16/2015 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) PHINDIRITBL  1.3 Alliances with signed financing agreement for technical assistance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 100.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 31-Aug-2016 PHINDIRITBL  1.4 Public investment subprojects with signed financing agreement (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 26.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 31-Aug-2016 PHINDIRITBL  1.5 Organizations’ members that receive managerial training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 124.00 2830.00 4305.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 30-Jun-2017 PHINDIRITBL  1.5.1 Women that receive managerial training (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 36.00 30.00 9/16/2015 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) PHINDIRITBL  2.1 Supported alliances that fulfill their commercial aims in the framework of agreed arrangements (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 85.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 18-Aug-2017 PHINDIRITBL  2.2 Households in alliances that receive financing support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 858.00 11003.00 25000.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 18-Aug-2017 PHINDIRITBL  SPO households represented by women that receive financing support (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 33.00 30.00 PHINDIRITBL  2.3 Producer organizations that obtain positive net incremental real income from alliance product(s) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 18-Aug-2017 9/16/2015 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) PHINDIRITBL  2.4 Producer organizations whose leaders are periodically accountable to their members (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 15-Jan-2013 21-Feb-2014 14-May-2015 18-Aug-2017 PHINDIRITBL  2.5 Executed public investment subprojects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 26.00 Date 15-Jan-2013 21-Feb-2014 14-May-2015 18-Aug-2017 PHINDIRITBL  2.6 Households that benefit from public investment subprojects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10100.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 18-Aug-2017 PHINDIRITBL  2.7 Alliances that apply environmental measures satisfactorily (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 18-Aug-2017 9/16/2015 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) PHINDIRITBL  3.1 Level of financial execution of the Project's Annual Operational Plan (POA) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 42.00 99.15 80.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 18-Aug-2017 Comments The percentage reported relates to the execution of the POA for calendar year 2014. PHINDIRITBL  3.2 Producer Organization Subprojects without delays in the verification of expenses (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 -- 85.00 Date 15-Jan-2013 22-Sep-2014 14-May-2015 30-Jun-2017 PHINDIRITBL  3.3 Project's Public Information System installed and operating (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- No No yes Date 15-Jan-2013 22-Sep-2014 14-May-2015 15-Mar-2017 Overall Comments The project is progressing well, achieving or surpassing some of its targets. There are delays in the achievement of some of the intermediary indicators, such as the ones aligned with the piloting of alliance models 2 and 3 and the establishment of the public information system. Plans to accelerate progress were agreed upon during the MTR mission. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P127743 IDA-51700 Effective XDR 32.90 32.90 0.00 11.07 21.83 34% 9/16/2015 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Alliances Project II (P127743) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127743 IDA-51700 Effective 23-Oct-2012 12-Dec-2012 09-May-2013 30-Nov-2017 30-Nov-2017 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/16/2015 Page 10 of 10 Public Disclosure Copy