The World Bank Report No: ISR9857 Implementation Status & Results Cameroon Agricultural Competitiveness Project (P112635) Public Disclosure Copy Operation Name: Agricultural Competitiveness Project (P112635) Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 23-May-2013 Country: Cameroon Approval FY: 2009 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 18-Jun-2009 Original Closing Date 30-Nov-2015 Planned Mid Term Review Date 12-Nov-2012 Last Archived ISR Date 28-Feb-2013 Effectiveness Date 29-Jan-2010 Revised Closing Date 30-Nov-2015 Actual Mid Term Review Date 03-Dec-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) Increase the competitiveness of beneficiary producer organizations working on target value chains. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Rehabilitation of Key Rural Infrastructure 21.50 Economic Partnerships 22.70 Institutional Support and Capacity Development 5.00 Project Coordination, Monitoring, and Evaluation 7.40 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview 1. This ISR has been updated based on findings of the Impact Evaluation (IE) and Beneficiary Assessment (BA) studies, and of the Mid-Term Review (MTR) that was jointly implemented by the Bank and the Government from December 3-19, 2012. An interim ISR #8 was filed pending the completion of the IE and BA. Implementation progress of the two pilot projects (on fully washed coffee and processing of cassava) has been also assessed. Those two pilot projects have been financed jointly by the IDA Credit and a Bank-executed TF, the All ACP Agricultural Commodities Program (AAACP). Page 1 of 8 The World Bank Report No: ISR9857 2. The disbursement rate for the IDA credit is at 34 percent. Based on the forecast prepared by the PCU, disbursement will increase up to around 50 percent by June 2013. Disbursement is still relatively slow compared to the projections made at the time of appraisal, mainly because the important delay in the implementation of Component 1 on Rehabilitation of Key Rural Infrastructures that accounts for 35.8 percent (US$21.5 million) of the IDA credit. As raised in the previous ISRs, original implementation plan for Public Disclosure Copy Component 1 was over ambitious and unrealistic. In fact, the Project document called for the rehabilitation of key rural infrastructure to begin in Year 1, but the rehabilitation work could not begin until preliminary studies (respectively feasibility and detailed technical studies) were completed. Of the main studies needed, t the rehabilitation of rice irrigated perimeters in the SEMRY (''Société d’Expansion et de Modernisation de la Riziculture de Yagoua'') were only completed and delivered in November 2012. However, the rehabilitation of rice perimeters in the area of the UNVDA (Upper Nun Valley Development Authority) was still ongoing. At the same time, works for the rehabilitation of 50 km of rural roads have started in November 2012; so disbursement will manifestly remain low until contract execution progress substantively. The results of the studies concluded that the budget (US$58 million) for full rehabilitation of the rice irrigated perimeters is far higher than the initial costs estimate (US$8.7 million). 3. Project Development Objective (PDO). Progress toward the achievement of the PDO is moderately satisfactory (MS) as evidenced by the achievement level of Project Outcome Indicators (POI). The final target yields have been achieved at levels of 130 percent for value of selected marketed/traded products in targeted areas (target: 20 percent, result: 26 percent), at 93 percent for rice (target: 6.10 tons per ha, result: 5.2 tons per ha) and 92.6 percent for maize (target: 3 tons per ha, result: 2.78 tons per ha). The final target of one POI, namely ''Reduction of post-harvest losses from supported Producer Organizations (POs) with access to the new transport infrastructure'' is not yet available since rehabilitation of rural roads have just started. Final target yields for Palm oil and Plantain cannot be measured now because the growth and production cycle of these species are quite long compared to annual species (rice and maize) and the only two years of implementation of Sub-Projects (SPs). The Project is demand-driven and for that reason only one SP has been financed in 2012 for Palm oil. Although indicators for animal value chains have not been provided in the Project Results Framework, the team has collected the information and data has showed that livestock production financed under SPs has improved: (i) average annual pig live weight: baseline: 23 kg/m2, result: 60.23 kg (262 percent); (ii) average annual poultry live weight: baseline: 21.63 kg/m2, result: 45.23 kg/m2 (209 percent); and (iii) average annual egg production: baseline: 198 eggs per hen, result: 205 eggs per hen (103 percent). 4. Implementation Progress (IP). Overall IP is downgraded moderately satisfactory (MS) due to the delay in the disbursement and in the implementation of the Rehabilitation of Key Rural Infrastructures component. However, significant progress has been achieved as evidenced by the achievement level of Intermediate Outcomes Indicators (IOIs) as follows: (i) 52 percent SPs profitable (positive Gross Profit) 1 year after completion compared to the target of 80 percent (achieved 60 percent); 90 percent unqualified technical and safeguards audits compared to a target of 80 percent (achieved at 112 percent); (iii) 100 percent of POs (744 POs out of the 744 financed) adopted a business compared to the target of 70 (achieved at 143 percent); (iv) 660 POs engaged in economic partnerships compared to the final target of 1000 ( achieved at 66 percent); (v) 793 SPs have been presented by POs compared to the final target of 2000 (achieved at 39 percent); (vi) 744 SPs have been approved (and agreements signed), compared to the final target of 1000 SPs (achieved at 74.4 percent); (vii) 37 percent of POs in targeted areas are satisfied with support services received from apex POs compared to the final target of 80 percent (achieved at 46.25 per cent); (viii) 267 POs receiving support services through apex POs compared to the final target of 500 POs (achieved at 53.4 percent); (ix) 87 percent of POs managed effectively (hold regular meeting, record their decision, open and manage a bank account and have regularly elected officials) compared to the target of 80 percent (achieved at 109 percent); (x) 700 tons of annual certified seeds produced against a final target of 500 tons (achieved at 140 percent). Data are not available for three of the four IOIs of Component 1 due to the delay in the implementation of that component. 5. Thanks to local forums with POs, suppliers and buyers that have been launched and are being facilitated by the Project Regional Coordination Units since 2011, POs have made good progress in establishing 662 commercial partnerships and 199 contracts marketing contracts respectively with suppliers and buyers to get inputs (fertilizers, seeds, small Public Disclosure Copy agricultural equipment) and sell their products (maize, rice, poultry, pig). Thanks to the support of the Project through the provision of advices and training (technical and financial management) and investments, POs are not only making better technical and financial results but also paying full rental fee/services royalty to SEMRY. Moreover, since the September 2011 national forum focusing on access to rural finance, practical solutions to the problem of lack of access to finance rural producers are being supported within the Project through partnerships between the Project Coordination Unit and Micro-Finance Institutions. .With the facilitation of the Project, about 48 conventions have been signed between POs and microfinance institutions to raise a credit in the total amount of more than CFA176 million through the signed contracts. It is important to mention in this ISR that the organization of that national forum on access to rural finance was recommended by the January 2011 supervision and support mission to the Project. To strengthen the rural finance initiative, the Project is participating in the AgriFin Project (P130376) in order to benefit with its support on credit assessment and capacity building on micro-finance for beneficiary producers and relevant staff of the Project. 6. In addition, the Project has contributed to the employment of more than 30,000 people. This figure includes employment generated through the financing and implementation of the SPs for POs, as well as jobs created for local consultants and service providers (about 900 people). Page 2 of 8 The World Bank Report No: ISR9857 7. The MTR reassessed deeply and comprehensively the PDO in the face of the challenge on the Rehabilitation of Rural Infrastructure (RRI) component and concluded that: (i) the PDO is still relevant but lacks realism in milestones and targets for RRI and Palm Oil value chain; and (ii) based on the new roadmap for the rehabilitation of rural roads prepared by the Ministry of Public Works, rehabilitation of rural roads is feasible and will be completed by December 2014, (iii) based on the outcomes of the detailed studies, Rehabilitation of Public Disclosure Copy Rice Irrigated Perimeters (RRIP) is not feasible by the actual Project's resources because (a) final costs are far higher compared to the initial IDA allocation, and (b) rehabilitation will last five years, meaning to be completed not before 2018 three years after the current Project closing date of November 30, 2015. 8. The Project cannot fully satisfy its original objectives that relate to RRIP (however, they were not properly assessed). By focusing on institutional support to SEMRY and UNVDA, about 50-70% of the objective of the project could be achieved. Therefore, with regard to RRIP, based on conclusions of the MTR, the Government and the Bank have decided to drop down investments of the RRIP under Component 1and reallocate funds (US$7 million) to the institutional support of SEMRY (US$5.4 million) and UNVDA (US$1.5 million). The aim of the restructuring is to establish sufficient institutional capacity to provide key agricultural services to farmers, as well as training and equipment needed to undertake its mission and responsibilities. An institutional and strategic audit has already been done for UNVDA and will be carried out for SEMRY to define its new institutional requirements (in terms of mandate and responsibilities, organization, staffing, management, budget, etc.). At the requested of the Ministry of Livestock and subject to resources availability, the Project would support (i) small ruminants value chains; and (ii) animal diseases surveillance and control. The RRIP component has been incorporated in the Emergency Floods Operation (P143940) which is under preparation. 9. Based on the above, the MTR concluded that the Project is to be restructured. The PCU has prepared the draft restructuring package including reallocation of the IDA Credit Proceeds and updates of the Results Framework (see Aide Memoire and Management Letter enclosed to the present ISR). The MTR has reviewed the draft restructuring package in order to allow the Government submits it for Bank’s approval promptly. Once the restructuring of the Project is approved by the Bank, the Project’s original Disbursement Schedule and Results Framework will be updated in the system. The team remains confident that the IDA credit will be fully disbursed by the Project closing date on November 30, 2015 if the necessary measures and adjustment (restructuring) are undertaken. Locations Country First Administrative Division Location Planned Actual Cameroon South Province South Region Cameroon West Province West Region Cameroon North-West Province North-West Region Cameroon North Region North Region Cameroon Littoral Province Littoral Region Public Disclosure Copy Cameroon Far North Province Far North Region Cameroon Centre Region Centre Region Cameroon Adamaoua Region Adamaoua Region Results Project Development Objective Indicators Page 3 of 8 The World Bank Report No: ISR9857 Indicator Name Core Unit of Measure Baseline Current End Target Increase in the value of sales from Producer Percentage Value 0.00 26.00 20.00 Organizations supported by the Proejct Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Public Disclosure Copy Comments Target value reached at 130 percent. Based on the outcomes of the IE on maize and rice sub-projects. Reduction of post-harvest losses from Percentage Value 0.00 0.00 20.00 supported POs with access to the new Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 transport infrastructures Comments Data are not yet available as rehabilitation of rural roads is not completed yet. Increase in average rice yields in the Number Value 5.20 5.66 6.10 rehabilitated irrigated areas (tons/ha) Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 92.8 percent. Based on the outcomes of the IE on financed Sub-Projects. The indicator has been revised in the restructuring paper. Increase in crop yields for three other targeted Number Value 2.50 2.78 3.00 crop value chains (tons/ha) Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 92.6 percent for maize. Based on the outcomes of the IE. Maize Number Value 2.50 2.78 3.00 Sub Type Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Breakdown Comments Target value reached at 92.6 percent. Based on the outcomes of the IE. Public Disclosure Copy Plantain Number Value 6.50 6.50 7.50 Sub Type Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Breakdown Comments Too early to measure towards the growth and production cycle of plantain. Palm oil Number Value 1.50 4.20 2.10 Sub Type Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Page 4 of 8 The World Bank Report No: ISR9857 Breakdown Comments Too early to measure towards the growth and production cycle of palm oil. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Reduction in transportation time to closest Percentage Value 0.00 0.00 20.00 market Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Work on rural roads has just started and not yet completed. Rehabilitation of the first 50 km will be completed by end of May 2013. Increase in rice production in rehabilitated Number Value 45000.00 25000.00 90000.00 perimeters (tons) Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 28 percent but Rehabilitation of rice perimeters is not feasible by the actual project resources and state.The indicator has been revised in the restructuring paper. Roads rehabilitated, Rural Kilometers Value 0.00 0.00 500.00 Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Rehabilitation of 50 km is underway. Irrigation area rehabilitated (ha) Number Value 0.00 0.00 11500.00 Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Rehabilitation of rice Public Disclosure Copy perimeters is not feasible by the actual project resources and state. The indicator has been revised in the restructuring paper. Sub-projects profitable (positive gross profit) 1 Percentage Value 0.00 52.00 80.00 year after completion Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Page 5 of 8 The World Bank Report No: ISR9857 Comments Target value reached at 65 percent. Based on the outcomes of IE and BA. Public Disclosure Copy Unqualified technical and safeguards audits Percentage Value 0.00 90.00 70.00 Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 112 percent. Based on the outcomes of IE and BA. POs engaged in economic partnerships Number Value 0.00 660.00 1000.00 Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 66 percent. Based on the outcomes of IE and BA. Sub-projects approved Number Value 0.00 744.00 1000.00 Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 74.4 percent. Based on the outcomes of IE and BA. POs in targeted areas satisfed with support Percentage Value 0.00 37.00 80.00 services received from apex organizations Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 46.25 percent. Based on the outcomes of IE and BA. POs receiving support services through apex Number Value 0.00 267.00 500.00 organizations Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 53.4 percent. Based on the outcomes of IE and BA. POs managed effectively (hold regular Percentage Value 0.00 87.34 80.00 Public Disclosure Copy meeting, record their decision, open and Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 manage a bank account and have regularly Comments Target value reached at 109 elected officials) percent. Based on the outcomes of IE and BA. Incremental volume of annual certified seeds Number Value 0.00 700.00 500.00 produced (tons) Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 140 percent. Based on the outcomes of IE and BA. Page 6 of 8 The World Bank Report No: ISR9857 Sub-projects presented Number Value 0.00 795.00 2000.00 Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments Target value reached at 39 Public Disclosure Copy percent. Based on the outcomes of IE and BA. POs aopting business plans Percentage Value 0.00 100.00 70.00 Date 30-Jun-2009 31-Dec-2012 30-Nov-2015 Comments 744 POs out of 744 for which sub-projects have been approved have adopted a satisfactory business plan. Data on Financial Performance (as of 13-Mar-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P112635 IDA-46120 Effective 18-Jun-2009 16-Sep-2009 29-Jan-2010 30-Nov-2015 30-Nov-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112635 IDA-46120 Effective XDR 40.30 40.30 0.00 13.58 26.72 34.00 Disbursement Graph Public Disclosure Copy Page 7 of 8 The World Bank Report No: ISR9857 Public Disclosure Copy Key Decisions Regarding Implementation 1. Rehabilitation of the Rice Irrigated Perimeters is not feasible within the actual project resources time. The project will be scaled-down. 2. The Project is to be restructured including reallocation of the Credit Proceeds. 3. If effective, Rehabilitation of Rice Irrigated Perimeters in the SEMRY area should be coordinated as much as possible with rehabilitation of the Dam of the Lake of Maga and the Dyke of the Logone River which is planned within the new emergency operation. 4. Given the necessary changes to be made with the restructuring of the Project, conventions that have been between the PCU, the sectoral ministries in charge of agriculture, livestock and public works, SEMRY and UNVDA will be revised and updated. Restructuring History There has been no restructuring to date. Related Projects Public Disclosure Copy There are no related projects. Page 8 of 8