The World Bank Report No: ISR7717 Implementation Status & Results Peru Sierra Rural Development Project (P079165) Public Disclosure Copy Operation Name: Sierra Rural Development Project (P079165) Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 26-Sep-2012 Country: Peru Approval FY: 2007 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): ALIADOS, MINAG (Ministry of Agriculture) Key Dates Board Approval Date 24-Apr-2007 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 05-Dec-2010 Last Archived ISR Date 31-Jan-2012 Effectiveness Date 09-Jul-2008 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date 05-Dec-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project objective is to improve the assets and economic conditions of approximately 53,600 rural families in the selected areas of Apurimac, Ayacucho, Huancavelica, Junin, Huanuco, and Pasco, and strengthen government capacity to implement an integrated Sierra development strategy. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Rural Businesses 15.61 Community Development 13.58 Sierra Coordination and Project Mgmt. 5.74 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview As of June 30 2012, the Project has approved and financed 1,714 subprojects (850 rural businesses, 864 community development), benefiting some 53,500 families. These figures represent 137% and 99% of the target, respectively. Currently, 371 subprojects are under implementation and 86% of IBRD funds have been disbursed. On June 12, 2012, the Borrower requested an extension of the closing date to June 30, 2013. This would allow for completion of the ongoing subprojects, achievement of 100% Page 1 of 5 The World Bank Report No: ISR7717 disbursement, continuity of the project team, and smooth transition to the additional financing. Key impacts to date, according to the mid-term evaluation carried out in 2011, are: -Increased income of Project beneficiaries by 24% (final goal is 25%); Public Disclosure Copy -Net value of Production increased by 20% of Project beneficiaries (final goal is 20%); and -Increase of tangible assets of Project beneficiaries by 93% (final goal is 30%). Supervision missions were conducted in February, April, and June 2012 confirmed that the Project is currently on track to achieve its development objectives and likely to exceed its expected goals. Audit report for 2010 and 2011 are overdue. Locations Country First Administrative Division Location Planned Actual Peru Not Entered Departamento de Huánuco Peru Not Entered Departamento de Cajamarca Peru Not Entered Departamento de Puno Peru Not Entered Departamento de Pasco Peru Not Entered Departamento de Junín Peru Not Entered Departamento de Huancavelica Peru Not Entered Departamento de Ayacucho Peru Not Entered Departamento de Apurímac Results Project Development Objective Indicators Public Disclosure Copy Page 2 of 5 The World Bank Report No: ISR7717 Indicator Name Core Unit of Measure Baseline Current End Target Net value of production of participating rural Text Value Net profits of Agricultural Increaed by 20% Increased by 20% families increased by 20% (as measured by a Production: S/. 762.33; Public Disclosure Copy composite index) Livestock: S/. 413.52; Agric ultural subproducts: S/. 198.27; Livestock subproducts: S/. 1339.13 Date 30-Oct-2007 30-Jun-2012 31-Dec-2012 Comments Based on estimates from 29 subprojects assessed during the December mid-term review. Value of principal productive assets of 75% of Text Value -Land holdings: 22.0% of Increased by 93% Increase of 30% for at least beneficiaries increased by 30% farmers 0 a 0.5 Has. - 26,000 families Percentage of households with various agricultural activities. 24.1 % household s have Plowshares animal 6.5 years old. -Household land plot improvement Date 30-Oct-2007 11-Nov-2011 31-Dec-2012 Comments Methodology to calculate this indicator will be reviewed and updated with the AF. Sierra's economic production as a share of Text Value 20% of the national GDP Increased national GDP has increased. Date 30-Oct-2007 11-Nov-2011 31-Dec-2012 Comments This result is beyond the project control. It will be removed from the ISR starting from its next issue, in order to better align the results framework with the proposed Public Disclosure Copy AF. National Government's development Text Value investments in the Sierra have increased by at Date 11-Nov-2011 31-Dec-2012 least 30% Comments This result is beyond the project control. It will be removed from the ISR starting from its next issue, in order to better align the results Page 3 of 5 The World Bank Report No: ISR7717 framework with the proposed AF. Intermediate Results Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target At least 18,600 beneficiary families Text Value 0 families / profits TBD at time 18,600 families / profits implementing rural business subprojects have subprojects awarded increase by 25% increased profits by at least 25% Date 30-Oct-2007 30-Jun-2012 31-Dec-2012 Comments At least 620 business plans implemented Text Value 0 887 620 Date 30-Oct-2007 30-Jun-2012 31-Dec-2012 Comments At least 875 community development Text Value 0 865 875 subprojects / 35,000 subprojects implemented, benefiting at least families 35,000 families. Date 30-Oct-2007 30-Jun-2012 31-Dec-2012 Comments Sierra Development Unit (SDU) established Text Value No SDU Functioning SDU and functioning Date 30-Oct-2007 03-Jan-2011 31-Dec-2012 Comments Integrated Sierra Development Program Text Value No integrated program Integrated program approved approved by government of Peru Date 30-Oct-2007 14-May-2010 31-Dec-2012 Comments MARENASS Information Management System, Text Value Systems in preparation Systems operational Systems operational Financial Management System, and M&E Date 30-Oct-2007 17-Oct-2010 31-Dec-2012 System established and operational Comments This result is not relevant anymore and will be dropped from the ISR at its next issue. Public Disclosure Copy Data on Financial Performance (as of 18-Jul-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P079165 IBRD-74430 Effective 24-Apr-2007 26-May-2008 09-Jul-2008 31-Dec-2012 31-Dec-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P079165 IBRD-74430 Effective USD 20.00 20.00 0.00 17.24 2.76 86.00 Page 4 of 5 The World Bank Report No: ISR7717 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The implementing agency is working with the auditors to submit the overdue audit reports shortly. The Bank will address the request for extension of the closing date after reviewing the overdue audit reports. Restructuring History There has been no restructuring to date. Related Projects P127801-Additional Financing to Sierra Rural Development Project Public Disclosure Copy Page 5 of 5