The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) Rural Economy Development Project (P168326) EUROPE AND CENTRAL ASIA | Tajikistan | IBRD/IDA | Investment Project Financing (IPF) | FY 2019 | Seq No: 11 | Archived on 24-Jan-2025 | ISR03042 Implementing Agencies: The Ministry of Finance 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 20-Jun-2019) Project Development Objective is to improve the sources of livelihood for local populations in GBAO and Khatlon through tourism and agribusiness. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Component 1 - Improve public infrastructure for development of tourism, agribusiness and related sectors:(Cost 12,000,000.00) Component 2 - Support to MSMEs and entrepreneurs in the tourism, agribusiness, and related sectors:(Cost 8,200,000.00) Component 3 - Capacity building and business development services in tourism, agribusiness and related sectors:(Cost 6,900,000.00) Component 4 - Project coordination, implementation and Grant Program Management and Administration:(Cost 2,900,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Jan 24, 2025 Page 1 of 10 The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions The Implementation Support Mission held in December 2024 rated the progress toward achieving the Project Development Objective (PDO) as Satisfactory. The mission also upgraded the PIU’s procurement performance from Moderately Satisfactory to Satisfactory, recognizing the PIU’s efforts to increase its procurement capacity, which allowed it to process several procurement packages in record time. Following up on the guidance from the WB's project team, the PIU ensured public awareness by hiring a dedicated PR specialist who generated over 50 video materials highlighting the project’s results in mass and social media. The landscape rehabilitation of the three cultural heritage sites in the Khatlon region (Hulbuk Castle, Khoja Mashad Madrassa, and Chiluchorchashma) has been either completed or is close to completion. The project’s matching grants program resulted in 603 sub-projects being implemented or completed by MSMEs. Construction to reinforce the Yamchun Fortress and rehabilitate its landscape started in May 2024, with 35-40% of the work completed by December 2024. Once construction resumes in spring after its postponement due to the winter season, the project will need to complete works by the project's closing date, December 31, 2025. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 010 - 26 Jul Proposed Rating 20 Jun 2019 2024 Political and Governance Substantial Moderate Moderate Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Moderate Moderate Technical Design of Project or Program Substantial Low Low Institutional Capacity for Implementation and Substantial Moderate Moderate Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Substantial Low Low Jan 24, 2025 Page 2 of 10 The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) Overall Substantial Moderate Moderate Jan 24, 2025 Page 3 of 10 The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes To improve the livelihood for local populations in GBAO and Khatlon through tourism and agribusiness Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 20,000.00 Jul/2019 416,457.00 28-Jun-2024 746,811.00 09-Dec-2024 800,000.00 Dec/2025 Increased number of tourists Comments on The target of this indicator was adjusted during the Restructuring to reflect the higher in GBAO and Khatllon achieving targets number of tourists arriving in Tajikistan compared to what was expected during the project's (Number) inception. The reasons behind this include the introduction of a one-side visa-free regime in 52 countries, and the lifting of visa requirements between Tajikistan and Uzbekistan. 10,000,000.00 Jul/2019 19,803,000.00 28-Jun-2024 20,303,000.00 09-Dec-2024 18,000,000.00 Jun/2024 Comments on The target of this indicator overperformed and it is at 113%. This overperformance is related Increased tourism spending achieving targets to the higher number of tourists arriving in Tajikistan compared to what was expected in GBAO and Khatlon during the project's inception. The reasons behind this include the introduction of a one-side (Amount(USD)) visa-free regime in 52 countries and the lifting of visa requirements between Tajikistan and Uzbekistan Increase in the volume of 0.00 Jul/2019 341.00 30-Nov-2023 341.00 09-Dec-2024 400.00 Dec/2025 processed agrifood products Comments on This target was increased during the Restructuring to reflect the higher volume of processed in GBAO and Khatlon achieving targets agrifood products than expected, given the use of more sophisticated equipment available (Tones/year) under the matching grants. Number of jobs created 0.00 Jul/2019 3,107 28-Jun-2024 3,107 09-Dec-2024 3,500.00 Dec/2025 through the project Comments on This target was adjusted during the Restructuring to reflect only documented jobs generated interventions in GBAO and achieving targets under the project. Khatlon, of which 50% for women and youth (Number) CRI Jan 24, 2025 Page 4 of 10 The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) Young people (15-24 years 0.00 Jul/2019 1,104 28-Jun-2024 1,106 09-Dec-2024 1,500.00 Dec/2025 old) who acquired skills Comments on This indicator was revised during the Restructuring to include two indicators to allow through the project, achieving targets monitoring of the number of young people who acquired skills under the project to work in disaggregated by age and the agribusiness and tourism sectors. gender (Percentage) (Percentage, Custom) (Percentage) 6.2 Intermediate Results Indicators by Components Component 1 - Improve public infrastructure for development of tourism, agribusiness and related sectors Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of bazaars and other 0.00 Jul/2019 5.00 28-Jun-2024 6 09-Dec-2024 10.00 Dec/2025 agribusiness related Comments on This target remains achievable. infrastructure improved achieving targets under the project (Number) 0.00 Jul/2019 421.00 28-Jun-2024 421.00 09-Dec-2024 7.00 Jun/2024 Number of sites with tourism Comments on This target has been overachieved with many smaller tourist signs installed in GBAO and signage installed (Number) achieving targets Khatlon. Number of upgraded food 0.00 Jul/2019 25.00 28-Jun-2024 25.00 09-Dec-2024 25.00 Jun/2024 safety laboratories Comments on This target has been achieved prior to the project's closing date. (Number) achieving targets Number of tourist sites 0.00 Jul/2019 1 28-Jun-2024 1 28-Jun-2024 4.00 May/2024 rehabilitated under the Comments on Three sites in Khatlon are either completed or close to completion by the implementation project (Number) achieving targets schedule (and in some cases, prior to the implementation schedule). The site in GBAO Jan 24, 2025 Page 5 of 10 The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) (Yamchun Fortress) is in line with the implementation schedule established during the Restructuring. Component 2 - Support to MSMEs and entrepreneurs in the tourism, agribusiness, and related sectors Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of homestays, rest 0.00 Jul/2019 148 28-Jun-2024 170 09-Dec-2024 54.00 Jun/2024 stops and restaurants Comments on This target has been overachieved prior to the project's original closing date. improved (Number) achieving targets Number of small scale post 0.00 Jul/2019 192 28-Jun-2024 209 09-Dec-2024 265.00 Dec/2025 harvesting processing and Comments on This target remains achievable. cold storage facilities achieving targets established (Number) Percentage of beneficiaries 0.00 Jul/2019 100 28-Jun-2024 100 09-Dec-2024 70.00 May/2024 reporting improved Comments on This target remains achievable. satisfaction with the achieving targets transparency and responsiveness of the beneficiary feedback mechanism for the grants programs. (Percentage) Number of collection points 0.00 Jul/2019 20.00 28-Jun-2024 20.00 09-Dec-2024 20.00 May/2024 for agricultural products Comments on This target has been achieved prior to the project's original closing date. established (Number) achieving targets Incremental increase in visits 0.00 Jul/2019 101,000 30-Nov-2022 105,000 09-Dec-2024 15.00 May/2024 to the sites after they are Comments on This target has been overachieved even with one completed cultural heritage site. rehabilitated under the achieving targets project (Number (Thousand)) Component 3 - Capacity building and business development services in tourism, agribusiness and related sectors Jan 24, 2025 Page 6 of 10 The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jul/2019 373 28-Jun-2024 1209/774 09-Dec-2024 500.00 Jun/2024 Number of people trained, Comments on Number of people trained under the program, including those who possess higher-level 50% of which are women achieving targets education (hotel/catering managers), semi-level education (tourist guides) and on-the-job (Number) training for low-skilled workers (waiters, cleaning staff, and landscaping crews, with preference given to individuals from vulnerable groups) Number of familiarization 0.00 Jul/2019 5.00 28-Jun-2024 5.00 09-Dec-2024 3.00 May/2024 tours organized for external Comments on Number of familiarization tours organized to bring international tour operators into tour operators to see what achieving targets Tajikistan for their familiarization with the country and its offering to various segments of Tajikistan may offer to tourists tourists (Number) Number of local and 0.00 Jul/2019 7.00 28-Jun-2024 7.00 28-Jun-2024 4.00 May/2024 international trade fairs Comments on Trade fairs held for promotion of both tourism-related and agribusiness activities together attended by representatives achieving targets and separately of Tajik tourism and agribusiness sectors to promote their sectors (Number) Component 4 - Project coordination, implementation and Grant Program Management and Administration Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of outreach 0.00 Jul/2019 10 28-Jun-2024 10 09-Dec-2024 10.00 May/2024 campaigns for potential Comments on Enablers held public consultations as part of the outreach campaign for potential grants beneficiaries held achieving targets beneficiaries in GBAO and Khatlon to (i) present the matching grants program and (ii) to under the project to ensure consult with potential beneficiaries on any improvement of the program based on the direct inclusiveness (Number) feedback. 0.00 Jul/2019 169.00 30-Nov-2023 169.00 09-Dec-2024 50.00 May/2024 Jan 24, 2025 Page 7 of 10 The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) Number of proposals Comments on This target has been overachieved prior to the project's original closing date. collected by the Grant achieving targets Management Company from each facilitator after each round of Calls of Proposals (Number) Jan 24, 2025 Page 8 of 10 The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA-D4980 Effective 30.00 28.32 0.00 28.09 0.92 96.83% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-D4980 Effective 20-Jun-2019 15-Jan-2020 27-Jun-2020 02-Dec-2024 31-Dec-2025 8. KEY DATES Jan 24, 2025 Page 9 of 10 The World Bank Implementation Status & Results Report Rural Economy Development Project (P168326) Key Events Planned Actual Approval 20-Jun-2019 20-Jun-2019 Effectiveness 27-Jun-2020 27-Jun-2020 Mid-Term Review No. 01 14-Apr-2023 14-Apr-2023 Operation Closing/Cancellation 31-Dec-2025 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 20-Feb-2024 10. ASSOCIATED OPERATION(S) There are no associated operations Jan 24, 2025 Page 10 of 10