The World Bank Implementation Status & Results Report Madagascar Agriculture Rural Growth and Land Management Project (P151469) Madagascar Agriculture Rural Growth and Land Management Project (P151469) AFRICA EAST | Madagascar | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 12 | ARCHIVED on 30-Jan-2021 | ISR43604 | Implementing Agencies: Republic of Madagascar, MINISTERE DE L’AGRICULTURE Key Dates Key Project Dates Bank Approval Date: 22-Mar-2016 Effectiveness Date: 05-Sep-2016 Planned Mid Term Review Date: 22-May-2020 Actual Mid-Term Review Date: 25-May-2020 Original Closing Date: 30-Jun-2021 Revised Closing Date: 31-Dec-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed development objective is to improve rural land tenure security and access to markets of targeted farming households inselected agricultural value chains in the Project Areas, and to provide immediate and effective response to an Eligible Crisis or Emergency. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Agribusiness Value Chain Development:(Cost $13.49 M) Component 2. Support to Land Policy and Land Rights Registration:(Cost $9.90 M) Component 3. Support to Marketing Infrastructure Development and Maintenance:(Cost $10.57 M) Component 4. Project Management and Coordination:(Cost $6.04 M) Component 5. Contingency Emergency Response:(Cost $13.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This desk ISR being filed to report on project implementation progress based on the best information available at this time. The team was unable to mobilize a full SPN mission due to travel and other restrictions related to the COVID-19 crisis. However, the team has benefited from regular and sustained interaction with the PIU throughout the reporting period via virtual project management meetings, ad-hoc technical meetings and via written correspondence. A virtual implementation support mission was undertaken during December 7-17, 2020. The objectives of the mission were to: (i) verify the state of progress of the various components and provide the support necessary to achieve the objectives; (ii) finalize the extension of TA supporting agricultural value chains beyond March 2021; (iii) ensure the proper application of agreements that address technical and operational constraints in 1/30/2021 Page 1 of 8 The World Bank Implementation Status & Results Report Madagascar Agriculture Rural Growth and Land Management Project (P151469) terms of land certification and Local Land Occupancy Plans (PLOF); (iv) discuss with the various stakeholders the possibilities of re-launching dialogue within the land sector; and (v) assess progress in resolving the weakness related to the project's financial management. In terms of disbursements, the AWPB for the year 2020 for the initial funding is USD 9 million. Sixty-eight (68%) of this plan had been achieved as of December 29, 2020. The 2020 AWPB for the additional funding amounts is USD 10.3 million and 12% was achieved as of December 29, 2020. These low rates are largely due to delays in the implementation of field activities linked to covid-19, and to delays in launching activities planned for the additional funding. Due to the lack of a steering committee meeting, the 2020 AWPBs were not submitted for steering validation. However, the AWPBs for 2021 received validation from the steering committee in November 2020 and were sent to the Bank for assessment at the end of December 2021. During the reporting period, the project underwent a Track 2 level restructuring, which was completed on 7 December 2020. The purpose of the restructuring was to: 1) extend project closing dates; 2) revise the Results Framework to accommodate the addition of Red Meat to the list of Value Chains supported by the project; and 3) respond to a Government request for a fund reallocation in favor of land administration related investments. The restructuring enabled the project's realignment with the newly defined set of targeted agriculture Value Chains supported under Component 1 and the budget reallocations in favor of newly identified by the Government priority land-related investments under Component 2. Overall, project implementation is ongoing with progress made across technical components during the reporting period. However, the SPN mission also noted delays in the implementation of some activities that have been hampered by travel, site access, and other restrictions associated with the COVID pandemic and the Government's response. Examples of notable progress and current challenges include: For Component 1 - Agribusiness and Value Chain Development, the mission noted that the project is reasonably on good track to achieve its ODP3 targets, especially when taking into account disruptions and reductions in market demand related to the Covid-19 pandemic. The achievement rate in the Highlands is more than 80% and remains at 38% for the East Coast. To ensure achievement of the project's objectives and ensure sustainability of the impacts, the contracts of the TA providers for the target value chains will be extended (3 months and 12 months respectively for the Highlands and the East Coast). Concerning the red meat value chain, the mission noted with satisfaction the recruitment of a consultant to draft a strategy for the sustainable development of ruminant breeding (zebus and small ruminants) in the Anosy and Androy regions , as well as the recruitment of 3 technical assistants responsible for implementing concrete actions in the field to meet the needs and expectations of breeders, particularly in the field of animal health and nutrition. With regard to Sub-component 1.5 related to activities around Agriculture Data Collection and Management, activities are off to slow to start. In the absence of a clear perspective of donor community contribution to the agricultural census, MAEP is preparing another action plan to develop agricultural statistical systems. Under Component 2 - Land Policy and Local Land Rights Registration, significant progress was made to address critical challenges impeding implementation. As of early January 2021, the situation, which was still critical in September 2020, has been largely remedied among the various stakeholders who were able to achieve a convergence of views on a strategy to deliver the target of two million additional land certificates and 438 operational municipal land offices. Procurement for satellite images and the feasibility of the land information system are well under way. Procurement regarding the hiring of qualified service providers for land security field operations is to be completed by mid-February. Nevertheless, the streamlined provisions agreed with the MATP to speed up the land registration procedures are to be effectively implemented in all project areas. The extension of land activities in the coming months is expected to lead to a significant increase of the project workload and the PIU has strengthened its staff at the regional and central level accordingly. With regard to Component 3's Support to Marketing Infrastructure Development and Maintenance, the mission observed notable delays with the implementation of activities. The preparation of technical, environmental, and social safeguard studies has been delayed due largely to the Covid-19 situation requiring the acquisition of specific authorizations for travel between regions, the difficulty of organizing field visits and meetings with beneficiaries and the insufficiency of resource personnel. As of mid-December 2020, only the APS reports had been drawn up and transmitted to the PMU. On the basis of the APS reports delivered, it was noted that the costs of the works obtained after the results of the studies are much higher (4.5 times higher) than the budget allocated to this component. In addition, the levels of development proposed by the Design Offices for certain axes exceed the requirements of the DAO. Thus, the PMU has requested the development of studies on an additional variant that better fits the available budget and meets the requirements of the tender dossier. The implementation of this component needs to be accelerated to ensure that the work is completed ahead of project closing. Close monitoring of the finalization of technical, environmental and social studies being finalized to ensure that they are delivered within the agreed time frame so that the road works can commence. 20. Concerning project management and M&E activities, despite recent efforts of the PIU to address the shortcomings in financial management identified during the previous mission, the persistence of some weaknesses in financial management still poses a high risk to the project. The Bank’s FM team has been conducting in recent weeks a follow up review with the PIU in an attempt to address some of the critical concerns initially raised. These included: i) project budget gaps associated with delayed submission of DRFs; ii) inconsistencies in adhering to FM protocols; and iii) outstanding payment arears. Therefore, FM rating remains unchanged: moderately unsatisfactory. However, the PIU —with added support from the new FM Specialist who came on board in December— has now the potential to rectify all outstanding issues in compliance with a time-bound action plan. By mid-March, an agile supervision mission will take stock of the progress made in FM and could propose an upgrading subject to significant improvement in accounting, replenishment of the designated accounts and settlement of all arrears. Risks Systematic Operations Risk-rating Tool 1/30/2021 Page 2 of 8 The World Bank Implementation Status & Results Report Madagascar Agriculture Rural Growth and Land Management Project (P151469) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies High High High 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 Moderate Moderate Moderate Stakeholders Substantial Substantial Substantial Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Direct project beneficiaries IN00941149 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 76,366.00 85,106.00 708,000.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 Direct beneficiaries are people or groups who directly derive benefits from an intervention (i.e., children who benefit from an immunization program; families that have a new piped water connection). Please note that this indicator requires supplemental information. Supplemental Value: Female beneficiaries (percentage). Based on the assessment and definition of direct project beneficiaries, specify what Comments: proportion of the direct project beneficiaries are female. This indicator is calculated as a percentage. This indicator did not increase as expected (for May 2020) due to the limited number of land certificates delivered (please see comment on indicator on land certificate) IN00941181 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 40.00 40.00 IN00941171 ►Targeted farmers’ with perception of improved access to markets (disaggregated by value chain) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/30/2021 Page 3 of 8 The World Bank Implementation Status & Results Report Madagascar Agriculture Rural Growth and Land Management Project (P151469) Value 0.00 41.03 41.00 60.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 Perception index including triggers related to pre-identified market access barriers (ex: time from closer Comments: marketing point, number of taxes paid, etc.). Annual targets. IN00941182 Targeted farmers’ with perception of improved access to markets (disaggregated by value chain) of which female (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 46.17 40.00 60.00 Date 30-Oct-2015 15-May-2020 15-May-2020 31-Dec-2022 Volume of local agricultural products sourced from the targeted areas by agribusiness companies in s IN00941150 ►Dairy value chain (milk) (Liters (Million), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.90 6.02 4.56 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 IN00941168 ►Horticulture value chains (green beans) (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,082.20 740.00 840.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 IN00941172 ►Cereals for and animal feed (maize and soya) (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 530.00 3,274.00 4,100.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 IN00941175 ►Spices and fruits (Grenadilla, litchi, cinnamon and curcuma) (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 592.00 1,280.00 3,304.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 Following the value chain analysis carried out by the TAs and the agreement during the restructuring, the Comments: support of the project will be limited to the following value chains: Grenadilla, cinamum and curcuma 1/30/2021 Page 4 of 8 The World Bank Implementation Status & Results Report Madagascar Agriculture Rural Growth and Land Management Project (P151469) IN00941178 ►Red meat value chain in the South: animal feed (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1,900.00 Date 05-Oct-2020 -- 15-Dec-2020 31-Dec-2022 IN00941179 ►Red meat value chain in the South: number of animal (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 25,600.00 Date 05-Oct-2020 -- 15-Dec-2020 31-Dec-2022 Improve rural land tenure IN00941148 ►Targeted farmers’ with improved perception of land tenure rights being recognized by a public authority (civic engagement indicator, gender indicator) (disaggregated by gender) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 56.10 70.00 80.00 Date 22-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 Perception index where farmers would give rankings on indicators such as fear of his/her land getting Comments: stolen, risk of conflict within the family, trust of rental agreement, etc. Annual targets. IN00941180 Targeted farmers’ with improved perception of land tenure rights being recognized of which female (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 37.78 40.00 40.00 Date 30-Oct-2015 15-May-2020 15-May-2020 31-Dec-2022 IN00941174 ►Land parcels with use or ownership rights recorded as a result of the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 186,107.00 137,911.00 2,501,200.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 Comments: Intermediate Results Indicators by Components 1/30/2021 Page 5 of 8 The World Bank Implementation Status & Results Report Madagascar Agriculture Rural Growth and Land Management Project (P151469) Component 1. Agribusiness Value Chain Development IN00941166 ►Targeted farming households reporting larger volumes of agricultural products brought by buyers (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.74 30.74 50.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 IN00941169 ►Client days of training provided (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 32,217.00 66,557.00 50,000.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 IN00941176 ►Targeted farming households reporting hiring additional paid non-family labour (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 49.56 49.56 60.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 IN00949652 ►Statistical datasets made available to the Ministry (on indications made by the TA contractors) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 5.00 Date 15-Feb-2019 -- 15-Dec-2020 31-Dec-2022 Component 2. Support to Land Policy and Land Rights Registration IN00941167 ►Communal land offices that have land certification capacity operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 72.00 149.00 191.00 438.00 Date 30-Oct-2015 15-May-2020 15-May-2020 31-Dec-2022 Communal land offices that have the capacity to deliver at least 10 land certificates per month. Cumulative Comments: targets. IN00949653 ►Land tenure deals with the private sector following the principles for responsible agriculture investments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/30/2021 Page 6 of 8 The World Bank Implementation Status & Results Report Madagascar Agriculture Rural Growth and Land Management Project (P151469) Value 0.00 -- 0.00 10.00 Date 30-Oct-2015 -- 15-Dec-2020 31-Dec-2022 Component 3. Support to Marketing Infrastructure Development and Maintenance IN00941170 ►Roads constructed or rehabilitated (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 30-Oct-2015 15-May-2020 15-Dec-2020 31-Dec-2022 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P151469 IDA-57750 Effective USD 53.00 53.00 0.00 34.70 19.28 64% P151469 IDA-D4320 Effective USD 52.00 52.00 0.00 7.46 45.93 14% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P151469 IDA-57750 Effective 22-Mar-2016 08-Apr-2016 05-Sep-2016 30-Jun-2021 31-Dec-2022 P151469 IDA-D4320 Effective 01-Mar-2019 26-Mar-2019 24-Jun-2019 30-Jun-2022 31-Dec-2022 Cumulative Disbursements 1/30/2021 Page 7 of 8 The World Bank Implementation Status & Results Report Madagascar Agriculture Rural Growth and Land Management Project (P151469) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 07-Aug-2017 ,Level Approved on 09-Dec-2020 Related Project(s) P166133-Madagascar Agriculture Rural Growth and Land Management - Additional Financing 1/30/2021 Page 8 of 8