The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) Food Security and Agriculture Productivity Project (P155513) SOUTH ASIA | Bhutan | IBRD/IDA | Investment Project Financing (IPF) | FY 2017 | Seq No: 14 | Archived on 13-Mar-2025 | ISR02986 Implementing Agencies: Ministry of Agriculture and Livestock 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 27-Apr-2017) The Project Development Objective (PDO) is to increase agricultural productivity and enhance access to markets for farmers in selected gewogs in south-west Bhutan. Has the Development Objective been changed since Board Approval of the Project Objective? Yes Current Development Objective (Approved as part of Additional Financing package Seq. 1 on 15-Jul-2021) The Project Development Objective (PDO) is to increase agricultural productivity and enhance access to markets for farmers in selected gewogs in south-west Bhutan. 2. COMPONENTS Name Component 1:Strengthening Farmer and Producer Groups:(Cost 1,240,000.00) Component 2: Enhancing Farmer Productivity:(Cost 8,030,000.00) Component 3: Enhancing Access to Markets:(Cost 2,420,000.00) Component 4: Project Management:(Cost 950,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Mar 13, 2025 Page 1 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions The project aimed to achieve two development objectives: (i) increase agricultural productivity, and (ii) improve market access for farmers in selected gewogs in south-west Bhutan. All PDO-level outcome indicators were met or exceeded, despite the initial challenges encountered by the project, including the impact of COVID-19 lockdown. Increased agricultural productivity The project beneficiaries more than doubled their productivity of crops like rice, vegetables, potato, and quinoa, improving food security, nutrition, and market value. They surpassed the target of 11,938 with 12,916 direct beneficiaries. Crop yield increased by 59.05 percent, exceeding the initial target of 25 percent. These gains were due to several key interventions. 1. Adaptive Research: Significant support was provided to agricultural research centers like Bajo and Samtenling, the national organic farming center, and national soil and plant health centers. This enabled the promotion of new technologies such as Quinoa, climate-resilient crop varieties for paddy, black pepper, and potatoes, and improved techniques like citrus canopy management, direct seeding for paddy, soil fertility, and plant protection. A study showed a 73.18% technology adoption rate across these centers. 2. Capacity building, training and Demonstration: Training extension agents, along with supporting adaptive research, allowed the training of Farmer and Producer Groups and the demonstration of new technologies on farms and through farmer field days. This facilitated knowledge accumulation about these improved technologies and influenced farmer adoption. A total of 10,794 beneficiaries adopted improved technology, exceeding the target of 8,300. 3. Modern Equipment: The provision of equipment such as 220 women-friendly mini-tillers, 995 polyhouses, electric fencing, power sprayers, and plastic mulch has facilitated the mechanization of farm operations. This initiative has reduced labor demands, minimized animal damages to crops, and conserved soil moisture, thereby contributing to improved crop productivity, and 4. Irrigation system: The construction and rehabilitation of community irrigation infrastructure, along with the introduction of land and water management practices such as low-cost water harvesting technologies (e.g., water harvesting tanks) and high-efficiency irrigation systems like drip and sprinkler irrigation, have been implemented, all of which are considered climate-smart practices. These measures have led to increased cropping intensity and water use efficiency, secured necessary soil moisture for effective fertilizer application, supported the growth of improved seed varieties, stabilized agricultural output, and reduced the risk of crop failure. As a result, the targeted crop area provided with irrigation—GAFSP CI #—reached 2275.12 hectares, surpassing the appraisal target of 2,244 hectares. Enhanced access to markets for farmers The project enhanced market orientation among beneficiaries through buyer-seller meetings with private sectors and links with institutional buyers, increasing produce marketed by over 40%. Sales to institutional buyers integrated Mar 13, 2025 Page 2 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) beneficiaries into domestic and export supply chains, doubling the value of sales with a 55.56% increase compared to a target of 25%. The achievement of enhanced access to market was through several mutually reinforcing interventions that lower transaction costs as follow: Post-harvest and Market Infrastructure Support: Training was provided on post-harvest handling technologies and the adoption of constructed or rehabilitated post-harvest facilities for both farmers and PGs, which directly reduce post- harvest losses, improve quality and food safety, and increase the quantity of output that farmers can sell. Overall, the project constructed or rehabilitated 28 post-harvest facilities, including markets, agro-processing mills, storage quality control facilities, Centralized Pack House (CPH) and integrated cold storage, food processing and packing equipment and material, and farmer shops. This represents 88 percent of the end-of-project targets. 1. Linkage to Domestic and Export Markets. The project facilitated commercial partnerships with multiple stakeholders, ensuring access to output markets and addressing constraints faced by individual beneficiaries in accessing these markets. Project beneficiaries, through the Farmers' Sales Outlets (FSO), executed sales contracts with institutional buyers, such as the school feeding program, to supply fresh vegetables. As a result, the FSP now has consistent sources of locally produced fresh vegetables. Another initiative to improve market access was the Buyer-Seller Meetings (BSM), which led to the implementation of almost all 42 signed contracts with private sectors, some targeting export markets. Participants of the BSM program integrated into the global value chain by exporting products like moringa and hibiscus tea to Singapore. The BSM activities also had a spillover effect, as participants who did not sign contracts during BSM sourced from Producer Groups (PGs). Additionally, the project participated in food and regional trade fairs. These activities, along with improved access to market information and guaranteed output markets, encouraged the PGs to sell more to the market. 2. Improved productivity indirectly increases market access. Generating marketable surplus is a precondition for participating in the output market, and this requires equitable access to water from irrigation and other technologies that enhance productivity, leading to higher yields through intensification. Improved nutrition Improved agricultural productivity and market access are vital for better nutrition, increasing food availability and affordability for vulnerable groups. The Behavioral Communication Campaign project, involving Agricultural Extension Officers, ARDCS, FAO-TA, and CRPs, significantly boosted nutrition among project beneficiaries. The project exceeded its target, reaching 6834 people with improved nutrition services against a goal of 6000. Additionally, 4856 received nutrition counseling/education, and 1978 received extension support, surpassing targets of 4000 and 2000, respectively. Female beneficiaries notably benefited, with 3456 receiving nutrition services compared to a target of 2400. Consequently, 84% of beneficiaries achieved a medium or high Household Dietary Diversity Score, exceeding the 70% target. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 013 - 27 Jun Proposed Rating 27 Apr 2017 2024 Mar 13, 2025 Page 3 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) Political and Governance Low Low Low Macroeconomic Low Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Low Low Low Other Low Low Low Overall Moderate Moderate Moderate Mar 13, 2025 Page 4 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Enhance productivity and marketable surplus Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Apr/2017 19.00 23-May-2024 59.05 30-Nov-2024 25.00 Dec/2024 Productivity of targeted Comments on The PDO target for productivity of targeted crops, which was previously surpassed, dropped crops increased by at least 25 achieving targets during this ISM to around 76% of the target. This is mainly because of the decrease in citrus percent in project areas productivity, a trend that has been observed nationwide, and is more pronounced in the (Percentage) group of farmers that did not receive FSAPP project support Increase in volume of 0.00 Apr/2017 28.00 23-May-2024 42.33 30-Nov-2024 25.00 Dec/2024 produce marketed by at least 25 percent (Percentage) Increase in value of produce 0.00 Apr/2017 39.00 23-May-2024 55.56 30-Nov-2024 25.00 Dec/2024 marketed by at least 25 percent (Percentage) Number of direct project 0.00 Apr/2017 12,198.00 23-May-2024 12,897 30-Nov-2024 11,938.00 Dec/2024 beneficiaries (Number) Female Beneficiaries 0.00 59.00 59.60 34.00 (Percentage) 6.2 Intermediate Results Indicators by Components Component 1:Strengthening Farmer and Producer Groups Mar 13, 2025 Page 5 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 1.1 Number of beneficiary 0.00 Apr/2017 315.00 23-May-2024 335 30-Nov-2024 310.00 Dec/2024 groups receiving technical Comments on Achievement during the previous ISM (May 2023) was revised downward to 257 due to trainings and other capacity achieving targets double counting building support (Number) 0.00 Apr/2017 9,345.00 23-May-2024 10,076 30-Nov-2024 5,898.00 Dec/2024 Comments on The original target of 11,938 households is revised to 5,890 households.Initially, the target for achieving targets this indicator was set as the total of the project beneficiary households (11,938 households) in 1.2 Number of farmers who are members of an the 5 project Dzongkhags/Gewogs (29 Gewogs), meaning the project aimed to cover every association including beneficiary household under farmer group formation. However, it is unrealistic to assume that producer groups, all the project beneficiary households would become members of farmer groups. Therefore, cooperatives etc. the revised measurement of this indicator is calculated as the product of the targeted number (disaggregated by gender) – of farmer groups supported by the project (IRI1.1) and the average number of members GAFSP Core Indicator # 14 within farmer groups. Based on the data from the Department of Agricultural Marketing and (Number) Cooperatives (which shows that, there are 695 farmer grups in Bhutan with a total of 12,975 members), an average member size of 19 is assumed for farmer groups. The restructuring proposes to revise the target for IRI 1.2 to 5,890 households (310 * 19). Number of Female 0.00 Apr/2017 4,238.00 23-May-2024 4,490 30-Nov-2024 2,005.00 Dec/2024 members of an association including producer groups, cooperatives etc (Number) 1.3 Number of people 0.00 Apr/2017 6,589.00 23-May-2024 6,834 30-Nov-2024 6,000.00 Dec/2024 receiving improved nutrition Comments on The targets for sub-indicator 1.3.1 will be swapped with those of 1.3.2 without affecting the services and products achieving targets overall target of 6,000 individuals for IRI 1.3, with 34% being female. These sub-indicators through the project - GAFSP were added during the MTR, but their targets need to be adjusted based on ground realities. Mar 13, 2025 Page 6 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) Core Indicator # 11 (new In Bhutan, limitations exist in expanding extension services, so BBC nutrition counseling is GAFSP indicators) (Number) offered to a larger beneficiary pool, while nutrition extension is offered to a subset of beneficiaries only. As a result, the targt for IRI 1.3.1, 'Number of people who received nutrition counseling/education,' will be doubled from the initial goal of 2,000 individuals to 4,000 individuals. Conversely, the target for IRI 1.3.2, 'Number of people receiving extension support for nutrition-relevant techniques,' will be reduced from 4,000 individuals to 2,000 individuals. 1.3.1 Number of people 0.00 5,077.00 4,856 4,000.00 who received nutrition counseling/education (Number) 1.3.2 Number of people 0.00 1,512.00 1,978 2,000.00 receiving extension support for nutrition- relevant techniques (Number) Number of Females 0.00 Apr/2017 3,703.00 23-May-2024 3,456 30-Nov-2024 2,400.00 Dec/2024 beneficiaries receiving improved nutrition services and products through the project- GAFSP Core Indicator # 11 (new GAFSP indicators) (Number) Component 2: Enhancing Farmer Productivity Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 2.1 Targeted crop area 0.00 Apr/2017 2,275.12 23-May-2024 2,275.12 30-Nov-2024 2,244.00 Dec/2024 provided with irrigation – GAFSP CI # 6 (Number) Mar 13, 2025 Page 7 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) Area covered by Flood 0.00 Nov/2022 1,924.00 23-May-2024 1,924.00 30-Nov-2024 1,914.00 Dec/2024 Irrigation (Number) Area covered by Micro 0.00 Apr/2017 351.12 23-May-2024 351.12 30-Nov-2024 330.00 Dec/2024 Irrigation (Number) 2.2 Number of water users 0.00 Apr/2017 2,130.00 23-May-2024 2,395 30-Nov-2024 2,767.00 Dec/2024 with new/improved irrigation services – GAFSP Core Indicator # 8 (Number) New users with Flood 0.00 761.00 761.00 744.00 Irrigation (Number) New users with Micro 0.00 1,369.00 1,634 2,023.00 Irrigation (Number) 0.00 Apr/2017 8,438.00 26-May-2023 10,794 30-Nov-2024 8,300.00 Dec/2024 Comments on The target for this IRI will be revised as the project's design unrealistically assumed that achieving targets all project beneficiary households (11,938) in the 29 project Gewogs would adopt improved technologies. The initial target for IRI 2.3 'Number of farmers who have adopted an improved agricultural technology promoted by the project in targeted project areas' will be reduced by 25.19 percent from 11,938 to 8,300 households. 2.3 Number of farmers who have adopted an improved agricultural technology The first category includes inputs and technologies that are already established and known by promoted by the project in farmers, such as seeds, fertilizer, and green/polyhouses. The number of adopters of these targeted project areas technologies will be measured as the number of project beneficiaries that received the input (Number) or technology multiplied by the adoption rate as measured by the Annual Outcome Surveys organized by FSAPP. To revise the target, an adoption rate of 80% is assume to account for near-perfect adoption of known technologies. Thus, it is expected that 80% of the 6,000 intended beneficiaries will adopt known technologies, resulting in a revised target of 4,800. The second category consists of new and improved crop mangement practices that FSAPP promoted and demonstrated to farmers for the first time. The number of adopters of these Mar 13, 2025 Page 8 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) technologies will be measured as the number of project beneficiaries supported by FSAPP promotion and demonstration activities multiplied by the adoption rates from such activities. The latter is measured through specific surveys conducted by the Agricultural Research and Development centers responsible for promoting these technologies. The adoption rate of new and improved practices or technologies is assumed to be 70%, based on global literature on agricultural technology adoption. Therefore, it is expected that 70% of the 5,000 intended beneficiaries will adopt these new technologies, resulting in a revised target of 3,500. Adding the revised targets of 4,800 farmers for the first category of technologies and 3,500 farmers for the second category of technologies yields a revised target of 8,300 farmers for IRI 2.3. Number of Female 0.00 Apr/2017 2,860.00 23-May-2024 4,476 30-Nov-2024 4,059.00 Dec/2024 farmers who have adopted an improved agricultural technology promoted by the project in targeted project areas (Number) 2.4 Total land area under 0.00 Apr/2017 5.70 23-May-2024 5.70 30-Nov-2024 6.00 Dec/2024 cultivation for citrus and Comments on The indicator is measured as the average of the percentage increase of sub indicators cardamom increased by 6 achieving targets cardammon (4.8) and citrus (6.8) giving equal weights to each commodity. percent (Percentage) Cardamom- cultivated 1,140.00 1,195.00 1,211 1,208.00 area (Number) Mar 13, 2025 Page 9 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) Citrus- cultivated area 3,744.00 3,998.00 3,998.00 3,968.00 (Number) 2.5 Number of beneficiaries 0.00 Apr/2017 6,875.00 23-May-2024 9,946 30-Nov-2024 1,500.00 Dec/2024 reached, who have been Comments on This achievement is now measured using the delivery of CSA technologies in the PMS (the helped to cope with impact achieving targets following activities were tagged in the AF as CSA: kitchen garden, Nutrition Garden, low cost of climate change; GAFSP polyhouse, fabricated polyhouse and water harveting technology) Core Indicator # 1 (Number) Number of female 0.00 3,018.00 4,150 510.00 beneficiaries reached, who have been helped to cope with impact of climate change (Number) Component 3: Enhancing Access to Markets Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Apr/2017 59.00 23-May-2024 64 30-Nov-2024 59.00 Dec/2024 3.1 Number of beneficiaries Comments on IRI 3.1 will report on the number of beneficiary households of the project-supported market of project supported market achieving targets infrastructure infrastructure (Number) 3.2 Number of producer 0.00 Apr/2017 80.00 23-May-2024 54 30-Nov-2024 40.00 Dec/2024 groups receiving market Comments on This achievement is measured using the data from AOS information (Number) achieving targets 3.3 Number of farmer groups 0.00 Apr/2017 23.00 23-May-2024 23.00 30-Nov-2024 25.00 Dec/2024 linked to schools (Number) 3.5 Proportion of 50.00 Apr/2017 69.00 23-May-2024 83.73 30-Nov-2024 70.00 Dec/2024 beneficiaries with medium or high (>7) Household Dietary Mar 13, 2025 Page 10 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) Diversity Score (Percentage) 3.6 Number of post-harvest 0.00 Apr/2017 28.00 23-May-2024 28.00 30-Nov-2024 32.00 Dec/2024 facilities constructed and or rehabilitated includes markets, agro- processing/storage/quality control facilities (Number) Component 4: Project Management Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 4.1 Learning notes or case 0.00 Apr/2017 4.00 23-May-2024 4.00 30-Nov-2024 4.00 Dec/2024 studies published and disseminated (Number) reports Apr/2017 Progress 23-May-2024 Progress 30-Nov-2024 Accurate and Dec/2024 prepared Reports are Reports are timely reports 4.2 Progress reports submitted submitted satisfactory (Text) biannually and biannually and current current reports Apr/2017 Upgraded to 23-May-2024 Upgraded to 30-Nov-2024 Contracts Dec/2024 4.3 Procurement satisfactory prepared MS MS awarded and (Text) completed on schedule. 4.4 Percentage of 0.00 Apr/2017 94.00 23-May-2024 99.28 30-Nov-2024 50.00 Dec/2022 beneficiaries satisfied with services provided by the project. (Percentage) Mar 13, 2025 Page 11 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed TF-A4224 Closed 8.00 8.00 0.00 7.74 0.26 96.72% TF-B6044 Closed 4.64 4.64 0.00 4.64 0.00 99.96% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing TF-A4224 Closed 27-Apr-2017 18-May-2017 08-Aug-2017 30-Dec-2022 30-Dec-2024 Mar 13, 2025 Page 12 of 13 The World Bank Implementation Status & Results Report Food Security and Agriculture Productivity Project (P155513) TF-B6044 Closed 15-Jul-2021 07-Aug-2021 07-Aug-2021 30-Dec-2024 30-Dec-2024 8. KEY DATES Key Events Planned Actual Approval 28-Apr-2017 27-Apr-2017 Effectiveness 08-Aug-2017 08-Aug-2017 Mid-Term Review No. 01 20-Oct-2020 30-Oct-2020 Operation Closing/Cancellation 30-Dec-2024 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 02-May-2024 10. ASSOCIATED OPERATION(S) There are no associated operations Mar 13, 2025 Page 13 of 13