$ Report No: RES00163 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Agriculture Resilience and Competitiveness Project APPROVED ON 07-Apr-2022 TO Bosnia and Herzegovina Agriculture and Food Global Practice Europe and Central Asia Regional Vice President: Antonella Bassani Regional Director: Sameh Naguib Wahba Tadros Country Director: Xiaoqing Yu Practice Manager: Frauke Jungbluth Task Team Leader(s): Augusto Garcia The World Bank Agriculture Resilience and Competitiveness Project (P171266) ABBREVIATIONS AND ACRONYMS APCU Agriculture Project Coordination Unit ARCP Agriculture Resilience and Competitiveness Project BiH Bosnia and Herzegovina ESMF Environmental and Social Management Framework ESS Environmental and Social Standards FBiH Federation of Bosnia and Herzegovina MoAFWM Ministry of Agriculture, Forestry and Water Management MoAWMF Ministry of Agriculture, Water Management and Forestry M&E Monitoring and Evaluation MoF Ministry of Finance MoFT Ministry of Finance and Treasury MoFTER Ministry of Foreign Trade and Economic Relations PIU Project Implementation Unit RS Republika Srpska The World Bank Agriculture Resilience and Competitiveness Project (P171266) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P171266 Agriculture Resilience and Competitiveness Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Bosnia and Herzegovina Approval Date Current Closing Date 07-Apr-2022 31-Dec-2027 Environmental and Social Risk Classification (ESRC) Substantial Organizations Borrower Responsible Agency Ministry of Agriculture, Forestry and Water Management of RS, Bosnia and Herzegovina Ministry of Agriculture, Water Management and Forestry of FBiH, Ministry of Foreign Trade and Economic Relations of BiH @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective The Project Development Objective is to increase climate resilience and competitiveness of the agriculture sector. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Balance % Disbursed i The World Bank Agriculture Resilience and Competitiveness Project (P171266) IBRD 68.50 0.16 68.34 0.24 IDA -- -- -- 0 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Agriculture Resilience and Competitiveness Project (P171266) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................4 III. PROPOSED CHANGES ................................................................................................................................................7 IV. DETAILED CHANGE(S) ...............................................................................................................................................7 The World Bank Agriculture Resilience and Competitiveness Project (P171266) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This restructuring Paper seeks your approval to restructure the Agriculture Resilience and Competitiveness Project (ARCP), following the request of the Ministry of Finance and Treasury of Bosnia and Herzegovina (BiH MoFT) to reallocate the loan proceeds within Part B of the Project, which is implemented by the Ministry of Agriculture, Forestry and Water Management of the Republika Srpska (RS MoAFWM). Part A of the Project is implemented by the Ministry of Agriculture, Water Management and Forestry of the Federation of Bosnia and Herzegovina (FBiH MoAWMF). On February 12, 2024, the BiH MoFT, upon request from the RS Ministry of Finance (RS MoF) and RS MoAFWM, submitted to the Bank a request to restructure Part B of the Project. Between March 18 and April 26, 2024, during an implementation support mission and subsequent meetings, the Bank discussed the proposed restructuring with project authorities and obtained additional information on the required amendments. 2. The reallocation of loan proceeds is deemed necessary to finance the increased costs for project activities under Components 1 and 3, and to increase the likelihood of the Project achieving the Project Development Objective (PDO). The proposed restructuring consists of (a) reallocating EUR 1.57 million (total funds available) from Category of Expenditures No. 5 (ARCP Part B financing to activities in the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina (BiH MoFTER) and the Veterinary Office of Bosnia and Herzegovina (BiH Veterinary Office) under Components 1, 3, and 4 of the Project) to Category of Expenditures No. 4 (RS financing to institutional strengthening activities in several RS public agriculture sector institutions and for the RS MoAFWM to carry out project monitoring and evaluation (M&E) activities); (b) amending the Project Description and Definition of Categories 4 and 5; and (c) adjusting downwards two project end targets related to the proposed reallocation of loan proceeds. Project Status 3. There have been significant delays in declaring the Project effective and launching project implementation in the FBiH and the RS. The ARCP was approved by the World Bank Board of Directors on April 7, 2022. The Loan Agreement No. 9359-BA was signed by the BiH MoFT and the World Bank on August 30, 2022, followed by (a) endorsement by the BiH Council of Ministers and the House of Representatives of the BiH Parliamentary Assembly and adoption by the House of Peoples of the BiH Parliamentary Assembly on March 28, 2023, and (b) ratification by the BiH Presidency on April 12, 2023. The FBiH ratified the Loan Agreement in its Parliament session held on February 16, 2023. The FBiH Subsidiary Agreement was signed by the BiH MoFT and the FBiH Ministry of Finance (FBiH MoF) on April 5, 2023. The FBiH Project Agreement was signed by the FBiH President and the World Bank on June 20, 2023. 4. The Loan Agreement No. 9359-BA between BiH and the World Bank, and the FBiH Project Agreement between the FBiH and the World Bank became effective on September 19, 2023, after which the FBiH has complied with the disbursement conditions for Part A of the Project and can start implementation, except for the FBiH Matching Grants which can start disbursements once the FBiH Matching Grants Manual has been approved by the FBiH in a manner satisfactory to the Bank. To date, the RS has yet to fulfil the disbursement conditions for Part B of the Project by (a) ratifying the Loan Agreement in its National Assembly, (b) executing the RS Subsidiary Agreement between the BiH Page 1 The World Bank Agriculture Resilience and Competitiveness Project (P171266) MoFT and the RS MoF, (c) executing the RS Project Agreement between the RS President and the World Bank, and (d) approving the RS Matching Grants Manual in a manner satisfactory to the Bank. 5. The June 2024 ISR downgraded the ratings for Progress Towards Achieving the PDO and for Overall Implementation Progress from Satisfactory to Moderately Satisfactory; an action plan to accelerate project implementation has been agreed. The BiH, FBiH, and RS authorities have confirmed that the ARCP remains relevant and responds to the country priorities for agriculture sector development. Nevertheless, the institutional actions to request the first withdrawal, and launch project activities in the FBiH, and to ratify the Project in the RS, sign the RS Subsidiary Agreement and RS Project Agreement, request the first withdrawal, and launch project activities in the RS, which had been agreed during previous implementation support missions (June and November 2023), continue to be delayed. Additionally, the FBiH Project Implementation Unit (FBiH PIU) will be absorbed in the FBiH MoAWMF following the process under the Law on Civil Service of the FBiH. The Bank and project authorities in the FBiH and RS have discussed the issues and agreed on the following action plan, which has been communicated by the Bank in a Management Letter to the BiH MoFT, dated June 3, 2024. The action plan aims to finalize the institutional procedures and launch project activities in the FBiH and the RS by mid-September. The plan will be monitored by the Bank team between July and August; progress will be reported in the next implementation support mission planned for September 2024. 6. Action plan agreed with the FBiH MoAWMF: (a) FBiH MoAWMF will carry out the Civil Service process to hire the new PIU Staff (May – December 2024); (b) meanwhile, the FBiH MoF and MoAWMF will reactivate the current PIU (consultant team) by July 12, 2024, as an interim solution to implement the Project between July – December 2024 until the new PIU staff is hired; (c) the FBiH MoAWMF and the FBiH MoF will agree on the authorized signatories by June 14, 2024 and request the first withdrawal by June 28, 2024; and (d) submit for Bank’s review the Matching Grants Manual by June 28, 2024. 7. Action plan agreed with the RS MoAFWM: (a) once Part B of the Project is restructured, the RS MoAFWM, in coordination with the RS MoF, will submit the Loan Agreement and amendment letter for ratification by the RS National Assembly in its session scheduled for late June 2024, and complete the remaining disbursement conditions for Part B by August 30, 2024; (b) set up the project accounts, designate the authorized signatories, and request the first withdrawal by September 13, 2023; and (c) submit for Bank’s review the Matching Grants Manual by June 28, 2024. Rationale for Restructuring of Part B of the Project 8. Per the initial project design, Part B of the Project would strengthen the capacities of several public agriculture sector institutions in the RS and BiH. Component 1 “Enhancing Public Support Resilience and Traceability (EUR 3.93 million funding under Part B) and Component 3 “Enhancing Food Quality and Safety” (EUR 4.12 million funding under Part B) were designed to support institutional strengthening and capacity building activities for, inter alia, the RS Veterinary Institute, RS Agriculture Institute, RS Faculty of Agriculture, RS Administration for Inspection Activities, and Sectors of the MoAFWM Agriculture, Food Processing, Rural Development, Agriculture Extension Services, and Veterinary Sectors (total EUR 6.55 million under both Components), as well as to support similar activities for the BiH Veterinary Office and BiH MoFTER (total EUR 1.5 million under both Components). Also, Component 4 “Project Management” (EUR 1.3 million funding under Part B) includes EUR 0.07 million in project support for the BiH MoFTER to carry out project M&E Page 2 The World Bank Agriculture Resilience and Competitiveness Project (P171266) and reporting activities for Part B. Altogether, project funds allocated to activities in the BiH MoFTER and BiH Veterinary Office amount EUR 1.57 million, which the BiH MoFT requests to be reallocated from Category 5 to Category 4 of the Loan Agreement. 9. The costs of previously agreed goods, civil works, and consultancy services to strengthen the capacity of RS public agriculture sector institutions with investments under Components 1 and 3 have increased since project preparation in 2021 (in some cases approximately 20 percent). The RS Agriculture Project Coordination Unit (RS APCU) has prepared several technical documents that would help initiate project implementation on the ground once project funds begin to flow and the team is enabled to operate. These documents were prepared in 2021, before project appraisal, and include draft Terms of Reference and Technical Specifications for consultancies, equipment, and civil works prioritized as part of institutional strengthening and capacity building for the RS public agriculture sector institutions. While the start of project implementation has been delayed, the estimated budgets for priority activities with RS institutions have been updated several times to reflect the increased market prices, since project preparation in 2021 and after Board approval in 2022. 10. The proposed reallocation will increase the funds allocated to Category of Expenditures No. 4 of the Loan Agreement by six percent and help the Project (RS Part B) to adapt to increased project costs, after the two-year delayed start of implementation. The increased costs and updated priorities have been discussed with the Bank’s team during implementation support missions in 2023 and 2024. Adapting to the increased costs to maintain the initially planned improvements of services in several public sector institutions in the RS agriculture sector is relevant and would contribute to achieving the PDO. The requested reallocation will also include the provision of project support to (a) improve the digital agriculture study program and upgrade laboratory capacities (equipment and staff training for monitoring plant diseases and pests, and analysis of food and feed quality) in the RS Faculty of Agriculture of the University of East Sarajevo and help the laboratory to fulfill the requirements for accreditation for soil quality monitoring, and (b) finance additional needs for software and hardware to improve the processing of applications in the Agriculture Payment Agency. 11. The MoFTER will continue to participate in the Project, and activities, now not being funded under the Project due to the proposed reallocation of loan proceeds, will be implemented with other budget sources. The BiH and RS authorities have confirmed that the project activities initially envisaged to be carried out with the BiH MoFTER and BiH Veterinary Office (for instance, IT system upgrade for veterinary, phyto-sanitary, and food safety systems) would be implemented with other funding, for instance, European Union funds or BiH’s national budget. Also, similar activities envisaged to support the BiH MoFTER under Part A (FBiH) of the Project will continue as planned. The BiH MoFTER will continue to coordinate the Technical Working Group for the Project, as indicated in the Loan Agreement. The RS MoAFWM confirmed that the RS APCU will carry out M&E and reporting activities for Part B under Component 4 and will provide the MoFTER with the reports and survey data for consolidation in project reports. 12. The restructuring will help the RS to overcome project implementation delays, adjust to increased project costs, and launch field activities in the short term. The proposed restructuring will allow the RS authorities to complete the ratification of the Project by the RS National Assembly by the end of June, promptly fulfill the disbursement conditions in July-August, adjust for increased project costs, and take advantage of technical readiness for implementation to Page 3 The World Bank Agriculture Resilience and Competitiveness Project (P171266) launch field activities by mid-September 2024. The restructuring comes timely to support the action plan agreed to start and accelerate project disbursements. II. DESCRIPTION OF PROPOSED CHANGES Reallocation of Loan Proceeds and Changes in Categories of Expenditures No. 4 and No. 5 13. The total amount allocated to Category 5 (EUR 1,576,000) will be reallocated to Category 4 of the Loan Agreement (Schedule 2, section III.A). Category 4 will have total EUR 26,873,250 available for the RS MoAFWM to implement Parts B.1(a), B.1(b), B.2(b), B.3(a), B.4(a), B.4(b), B.4(c), and B.4(d) of the Project, per Schedule 1 of the Loan Agreement. The reallocation of loan proceeds will help the RS MoAFWM to implement institutional strengthening and capacity building activities with RS public agriculture sector institutions as planned and respond to increased costs of some activities. 14. Due to the reallocation, M&E activities under Part B.4(b) of the Project will now be implemented by the RS APCU and will be included in the updated description of Category 4, which will now include goods, works, non-consulting services, consulting services, training, and operating costs for Part B of the Project. Furthermore, Part B of the Project will no longer provide financial support for activities with the BiH MoFTER and the BiH Veterinary Office; Parts B.1(c) and B.3(b) will be removed from the project Description (Schedule 1) and from the description of Category 5 in the Table of Categories of Expenditures (Schedule 2, Section III.A of the Loan Agreement). Category 5 will have no more expenditures and funds and will be removed from the Table of Categories of Expenditures. Category 6, Matching Grants under Part B.2(a) of the Project, will remain unchanged. The proposed changes for the Categories of Expenditures are described in Table 1. Table 1 – Proposed changes to the Categories of Expenditures Change of Definition of Category of Percentage of Amount of the Loan Expenditures Expenditures to be Allocated financed (inclusive of Current Category of Expenditure (Expressed in EUR) Taxes) Current Proposed Current Proposed (1) Goods, works, non-consulting services, No change consulting services, Training and Operating 26,797,250 26,797,250 100% 100% Costs for Part A of the Project, except Parts A.1 No change (c), 3 (c) and 4 (b). (2) Goods, works, non-consulting services, No change consulting services, Training and Operating 1,576,000 1,576,000 100% 100% Costs for Part A.1 (c), 3 (c) and 4 (b) of the No change Project. (3) Matching Grants under Part A.2 (a) of the No change 2,250,000 2,250,000 100% 100% Project. No change (4) Goods, works, non-consulting services, (4) Goods, works, 25,297,250 26,873,250 100% 100% consulting services, Training and Operating non-consulting Reallocation New amount Page 4 The World Bank Agriculture Resilience and Competitiveness Project (P171266) Costs for Part B of the Project, except Parts B.1 services, consulting (c), 3 (b) and 4 (b). services, Training and Operating Costs for Part B or the Project. (5) Goods, works, non-consulting services, Category 5 to be consulting services, Training and Operating removed from the 1,576,000 0 100% 0 Costs for Parts B.1 (c), 3 (b) and 4 (b) of the Table. Reallocation New amount Project. No change 100% of the 100% of the (6) Matching Grants under Part B.2 (a) of the 3,750,000 3,750,000 disbursed disbursed Project. No change amount amount No change Amount Amount payable payable pursuant to pursuant to Section Section 2.03 2.03 of this of this Agreement 153,500 Agreement (7) Front-end Fee. 153,500 in No Change in accordance accordance with with Section Section 2.07(b) of 2.07(b) of the General the General Conditions Conditions No change Amount Amount due due pursuant to pursuant to (8) Interest Rate Cap or Interest Rate Collar 0 Section 4.05 0 Section premium No change (c) of the 4.05 (c) of General the General Conditions Conditions TOTAL AMOUNT 61,400,000 61,400,000 Amendment of Schedule 2, Section III. B. 1. (c) 15. Category 5 will be removed and Schedule 2, Section III. B. 1. (c) will now read: Under Categories (4) and (6) unless: (i) The RS Project Agreement has been executed by its parties; and (ii) The RS Subsidiary Agreement has been executed by its parties. Changes to Project End Targets in the Results Framework 16. The project end targets of two intermediate outcome indicators have been adjusted downwards to consider the reduced activities with the BiH MoFTER and the BiH Veterinary Office under Part B of the Project. The project end targets of the following two intermediate outcome indicators under Component 3 “Enhancing Food Quality and Safety”, Page 5 The World Bank Agriculture Resilience and Competitiveness Project (P171266) which are associated with the reduced activities with the BiH MoFTER and the BiH Veterinary Office and funds being reallocated, will be adjusted downwards as follows in Table 2. Table 2: Proposed change of project end targets in two intermediate results indicators Indicator Project end target Current Proposed IT systems for veterinary, food safety, and plant health fully adopted and 3 2 implemented, with long-term maintenance plan in place (Number) Number of official veterinary, food safety, and plant health staff using the sectoral IT 200 100 systems (Number) - Of which female staff (Number) 60 50 17. No changes to fiduciary and safeguards arrangements are required. There are currently no disbursements (except for the front-end fee of EUR 153,500) hence there are no due quarterly Interim Unaudited Financial Statement (IUFRs) and/or audited project financial statements. Changes in the Financial Management or Procurement arrangements are not expected as part of the restructuring of Part B of the Project. The Environmental and Social Management Framework (ESMF) instruments, already in place, will not require any major changes due to project restructuring. Following the restructuring, the RS MoAFWM will update the Project Operational Manual to include the latest changes described above in paragraphs 13, 14, 15, and 16, the ESMF, and the Procurement Plan in a manner satisfactory to the Bank. Section I.B.1(a) of the RS Project Agreement will be amended to reflect the revisions to the Project Operational Manual. Summary of Performance of E&S Risk Compliance 18. All appraisal ESF requirements have been met and the Restructuring process for Republika Srpska has not warranted amendments to the ESF instruments. Agreed Actions from November 2023 have not been completed in any of the two Entities, which affected development of ESF instruments by the PIUs. Republika Srpska is however modestly progressing ion development of ES due diligence and risk management instruments (for Brod and Modrica). Page 6 The World Bank Agriculture Resilience and Competitiveness Project (P171266) @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Results Yes Reallocations Yes Conditions Yes Loan Closing Date Extension No Development Objective No Loan Cancellations No Summary Description No Financial Management No (Operation Abstract) Legal Operational Policies No Procurement No MFD/PCE No Institutional Arrangement No Risks No Implementation Schedule No Legal Covenants No Implementation Modalities No Disbursements Estimates No Disbursements Arrangements No DDO No Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? Page 7 The World Bank Agriculture Resilience and Competitiveness Project (P171266) LOANS Reallocations IBRD-93590-001 Cancellations (if any): New Allocation: Currency: EUR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G,W,nCS,CS,TR,OC P 26,797,250.00 0.00 26,797,250.00 100.00 100.00 A exc A1c,3c,4b; 2 G,W,nCS,CS,TR,OC P 1,576,000.00 0.00 1,576,000.00 100.00 100.00 A1c,3c,4b; 3 Matching Grants P 2,250,000.00 0.00 2,250,000.00 100.00 100.00 A2a; 4 G,W,nCS,CS,TR,OC P 25,297,250.00 0.00 26,873,250.00 100.00 100.00 B; 5 G,W,nCS,CS,TR,OC P 1,576,000.00 0.00 0.00 100.00 0.00 B1c,3b,4b; 6 Matching Grants P 3,750,000.00 0.00 3,750,000.00 100.00 100.00 B2a; 8 Int Rate Cap or Int 0.00 0.00 0.00 0.00 0.00 Rate Collar pre; FRONT END FEE; 153,500.00 153,500.00 153,500.00 0.00 0.00 Total 61,400,000.00 61,400,000.00 ENVIRONMENTAL & SOCIAL Environmental & Social Assessment According to the E/S Specialist are there changes proposed to the operation’s design that No would impact the Bank’s E&S assessment?” Conditions Type Description of Conditions Action The Subsidiary Agreement between the Borrower and Effectiveness No Change the Project Implementing Entity referred to in Section Page 8 The World Bank Agriculture Resilience and Competitiveness Project (P171266) 9.01 of the General Conditions has been executed by its parties. The Project Agreement for the Project Implementing Effectiveness Entity referred to in Section 9.01 of the General No Change Conditions has been executed by its parties. Under Categories (1), (2) and (3) unless: (i) the FBiH Project Agreement has been executed by its parties; and Disbursement No Change (ii) the FBiH Subsidiary Agreement has been executed by its parties. Under Categories (4) and (6) unless: (i) the RS Project Agreement has been executed by its parties; and (ii) the Disbursement Revised RS Subsidiary Agreement has been executed by its parties. Under Category (3) unless the Matching Grants Manual Disbursement has been approved by the FBiH in a manner satisfactory No Change to the Bank. Under Category (6) unless the Matching Grants Manual Disbursement has been approved by the RS in a manner satisfactory to No Change the Bank. Page 9 The World Bank Agriculture Resilience and Competitiveness Project (P171266) RESULTS COUNTRY: Agriculture Resilience and Competitiveness Project @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes Increase agriculture sector climate resilience Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 3,000.00 Dec/2026 Comments on achieving targets This indicator measures the number of farmers (of agricultural products) who have adopted an improved agricultural technology promoted by operations supported by the World Bank. NB: "Agriculture" or "Agricultural" includes: crops, livestock, capture fisheries, aquaculture, agroforestry, timber and non-timber forest products. Adoption refers to a change of practice or change in use of a technology that was introduced or Farmers adopting improved promoted by the project. Technology includes a change in practices compared to currently used pactices or agricultural technology (Number) technologies (seed preparation, planting time, feeding schedule, feeding ingredients, postharvest storage/ processing, etc.). If the project introduces or promotes a technology package in which the benefit depends on the application of the entire package (e.g., a combination of inputs such as a new variety and advice on agronomic practices such as soil preparation, changes in seeding time, fertilizer schedule, plant protection, etc.), this counts as one technology. Farmers are people engaged in farming of agricultural products or members of an agriculture related business (disaggregated by men and women) targeted by the project. Farmers adopting improved 0.00 0.00 0.00 1,000.00 agricultural technology - Female (Number) Farmers adopting improved 0.00 0.00 0.00 2,000.00 agricultural technology - male (Number) 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 10,000.00 Dec/2026 Page 10 The World Bank Agriculture Resilience and Competitiveness Project (P171266) Farmers with access to Comments on achieving targets This indicator measures the number of farmers with access to irrigation/drainage services through the irrigation/drainage services irrigation/drainage rehabilitation, modernization and development activities financed by the project. supported by the project (Number) Increase competitiveness Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Percentage of aggregators supported 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 50.00 Dec/2026 by the project reporting increases in Comments on achieving targets This indicator measures increased competitiveness of agri-food companies and local production on domestic sales (Percentage) and export markets through sales growth including volumes and/or value added. Increase in percentage of improved 10.00 Jun/2021 10.00 25-May-2024 10.00 25-May-2024 50.00 Dec/2026 risk-based official controls by the Comments on achieving targets This indicator measures the increase in percentage of improved risk-based official controls by the veterinary, veterinary, food safety and plant food safety and plant health sectors. health sectors (Percentage) Intermediate Results Indicators by Components Enhancing Public Support Resilience and Traceability Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year No Jun/2021 No 25-May-2024 No 25-May-2024 Yes Dec/2026 Improved farm and client registry Comments on achieving targets This indicator measures whether the overall farm and client registry be improved, which will include updates in (Yes/No) terms of hardware and software and connection with other registers, either currently existing or to be developed under the project for priority value chains and other registers. No Jun/2021 No 25-May-2024 No 25-May-2024 Yes Dec/2026 New registers for priority value chains established (Yes/No) Comments on achieving targets Establishment of priority new registers. Share of agriculture support 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 70.00 Dec/2026 programs implemented through Comments on achieving targets This indicator measures the usage of payment system online applications instead of paper applications for the upgraded Payment systems agriculture support programs implementation. (Percentage) Page 11 The World Bank Agriculture Resilience and Competitiveness Project (P171266) No Jun/2021 No 25-May-2024 No 25-May-2024 Yes Dec/2026 Farm Sustainability Data Network Comments on achieving targets Establishment of the Farm Sustainability Data Network (FSDN) to improve information (FSDN) established (Yes/No) collection and data use for policy analysis. Increased number of seeds and 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 5.00 Dec/2026 seedling varieties registered Comments on achieving targets This indicator measures the improvement of seed quality and production, including improvement of local (Number) varieties to be better adapted to climate change (e.g. drought-resistant, heat tolerant and flood tolerant) in RS. Extension staff trained in climate 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 150.00 Dec/2026 smart production practices and/or Comments on achieving targets This indicator measures the number of extension staff trained through at least one training session on technologies (Number) improving extension service delivery of climate smart production practices and/or technologies. Extension staff trained in 0.00 0.00 0.00 45.00 climate smart production practices and/or technologies - Female (Number) 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 3,000.00 Dec/2026 Client days of training provided for extension staff (Number) Comments on achieving targets This indicator aggregates the number of client days of training provided for extension staff during the project period. Improved access to local climate No Jun/2021 No 25-May-2024 No 25-May-2024 Yes Dec/2026 information services with digital Comments on achieving targets This indicator measures the improvement of access to local climate information services enabled by the digital information platforms (Yes/No) information platforms by measuring the numbers of access to the platforms. Improving Agriculture Productivity, Adaptation to Climate Change, and Enhancing Linkages with Markets Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 2,000.00 Dec/2026 Comments on achieving targets This indicator measures the number of farmers who were provided with agricultural assets or services as a result of World Bank project support. "Agriculture" or "Agricultural" includes: crops, livestock, capture fisheries, aquaculture, agroforestry, timber, and non-timber forest products. Assets include property, biological assets, Farmers reached with agricultural and farm and processing equipment. Biological assets may include animal agriculture breeds (e.g., livestock, assets or services (Number) fisheries) and genetic material of livestock, crops, trees, and shrubs (including fiber and fuel crops). Services include research, extension, training, education, ICTs, inputs (e.g., fertilizers, pesticides, labor), production- related services (e.g., soil testing, animal health/veterinary services), phyto-sanitary and food safety services, agricltural marketing support services (e.g., price monitoring, export promotion), access to farm and post- harvest machinery and storage facilities, employment, irrigation and drainage, and finance. Farmers are people Page 12 The World Bank Agriculture Resilience and Competitiveness Project (P171266) engaged in agricultural activities or members of a agriculture-related business (disaggregated by men and women) targeted by the project. Farmers reached with 0.00 0.00 0.00 600.00 agricultural assets or services - Female (Number) Sales of agricultural produce from 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 25,000.00 Dec/2026 farmers supported by the Comments on achieving targets This indicator measures the volume of sales (tons) of agricultural produce from farmers supported by the aggregators (Metric ton) aggregators. 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 50.00 Dec/2026 Sub-projects financed by the project (Number) Comments on achieving targets This indicator measures the number of sub-projects financed through the matching grants provided by the Project. Matching grant information and 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 10.00 Dec/2026 awareness campaigns targeting Comments on achieving targets This indicator measures the number of matching grant information and awareness campaigns carried out women (Number) specifically for potential women beneficiaries. 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 5,500.00 Dec/2026 Area provided with new/improved irrigation or drainage services Comments on achieving targets This indicator measures the total area of land provided with irrigation and drainage services under the project, (Hectare(Ha)) including in (i) the area provided with new irrigation and drainage services, and (ii) the area provided with improved irrigation and drainage services, expressed in hectare (ha). Area provided with new 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 5,000.00 Dec/2026 irrigation or drainage services Comments on achieving targets Measures in hectares the total area of land provided with new or improved irrigation or drainage services in (Hectare(Ha)) operations supported by the World Bank. Area provided with improved 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 500.00 Dec/2026 irrigation or drainage services Comments on achieving targets Measures in hectares the total area of land provided with new or improved irrigation or drainage services in (Hectare(Ha)) operations supported by the World Bank. 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 14.00 Dec/2026 Number of end-user O&M agreements signed and adopted Comments on achieving targets This indicator measures the development of O&M arrangements by facilitating signing tripartite O&M (Number) agreements among the end beneficiaries/WUA, the ministry/canton (assets owner), and the municipality/utility (i.e. the O&M service provider), to ensure the sustainability of introduced off-farm infrastructure/facilities. 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 15.00 Dec/2026 Increase in irrigation efficiency Comments on achieving targets This indicator measures the increase in irrigation efficiency realized by the reduction of conveyance losses. (Percentage) Values and targets refer to efficiency increase, in absolute percentage points from baseline, averaged over project schemes. Page 13 The World Bank Agriculture Resilience and Competitiveness Project (P171266) Enhancing Food Quality and Safety Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Number of officially designated 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 10.00 Dec/2026 veterinary, food safety and plant Comments on achieving targets This indicator aggregates the number of officially designated veterinary, food safety and plant health health laboratories upgraded laboratories that will be upgraded through the provision of specific laboratory equipment etc.. (Number) Revise IT Systems for veterinary, food 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 2.00 Dec/2026 safety and plant health fully adopted and implemented, with long-term maintenance plan in place (Number) Revise Number of official veterinary, 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 100.00 Dec/2026 food safety and plant health staff using the sectoral IT systems (Number) Revise Number of official 0.00 0.00 0.00 50.00 veterinary, food safety and plant health staff using the sectoral IT systems - Female (Number) Project Management Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 80.00 Dec/2026 Citizen Engagement – Direct Beneficiaries that report project Comments on achieving targets This indicator measures the percentage of project beneficiaries that provide a feedback including through investments reflected their needs scorecards, to generate recommendations on how to strengthen participation based on gender representation and provide feedback (Percentage) of direct beneficiaries and other stakeholders, and how to strengthen implementation throughout the project’s lifetime. Grievances responded and/or 0.00 Jun/2021 0.00 25-May-2024 0.00 25-May-2024 80.00 Dec/2026 resolved within 90 days Comments on achieving targets This indicator measures the implementation of grievance redress mechanisms by the percentage of total (Percentage) received grievances be responded and/or resolved within 90 days. Page 14 The World Bank Agriculture Resilience and Competitiveness Project (P171266) Page 15