The World Bank Implementation Status & Results Report Costa Rica Sustainable Fisheries Development Project (P168475) Costa Rica Sustainable Fisheries Development Project (P168475) LATIN AMERICA AND CARIBBEAN | Costa Rica | Environment, Natural Resources & the Blue Economy Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 8 | ARCHIVED on 28-Jun-2024 | ISR60687 | Implementing Agencies: Instituto Costarricense de Pesca y Acuicultura (INCOPESCA), Republic of Costa Rica Key Dates Key Project Dates Bank Approval Date: 24-Mar-2020 Effectiveness Date: 19-Sep-2021 Planned Mid Term Review Date: 06-May-2025 Actual Mid-Term Review Date: Original Closing Date: 19-May-2027 Revised Closing Date: 31-Oct-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve management of priority fisheries and enhance economic opportunities from those fisheries for Costa Rica. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening the governance and management of fisheries resources:(Cost $20.67 M) Investing in sustainable fisheries value chains:(Cost $26.54 M) Strengthening mechanisms for social and environmental sustainability:(Cost $21.85 M) Project Management, Monitoring, and Communications:(Cost $6.04 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Unsatisfactory Overall Risk Rating High High Implementation Status and Key Decisions Since its approval in July 2020, the Project has encountered several challenges. These have included: (i) a gap of eighteen months from the World Bank's Board approval to the Project's declaration of effectiveness, a period necessary to fulfill the conditions of effectiveness and secure the National Legislative Assembly's approval; (ii) a delay of three months post-effectiveness to appoint a procurement specialist, funded by counterpart financing, who was later replaced after twenty months; (iii) an eight-month interval before obtaining the necessary budgetary approvals for the Project's entire duration and its inaugural year, necessitating coordination among the Project Implementation Entity (PIE), Ministry of Agriculture (MAG), Ministry of Finance (MoF), the National Legislative Assembly, and the Controller's Office; (iv) a thirty-month delay in hiring a technical services firm to support the PIE with consultant selection, recruitment, and payment processing for the Project Coordination Team (PCT); (v) a tedious period for developing terms of reference (ToR) and standard procurement documents for essential consulting services across Components 1, 2, and 3; (vi) protracted preparation of tender documents for principal infrastructure works under Component 2; and, (vii) an unsuccessful attempt 6/28/2024 Page 1 of 9 The World Bank Implementation Status & Results Report Costa Rica Sustainable Fisheries Development Project (P168475) to finalize the Marine Ecosystem Services Support Entity Agreement for Component 3 activities related to Payments for Marine Ecosystem Services (PMES). These delays were further compounded by the COVID-19 pandemic in 2020 and 2021, the Presidential election campaigns in late 2021 and early 2022, and the subsequent Cabinet reshuffle in May 2022. These factors collectively contributed to the Project receiving a moderately satisfactory (MS) rating for overall Implementation Progress (IP) in the Implementation Status and Results Report (ISR) filed in June 2022, which was later updated to moderately unsatisfactory (MU) in the ISR filed in March 2023. In response to implementation challenges, the PIE initiated an Acceleration Plan in December 2022 to prioritize activities crucial for achieving the Project Development Objective (PDO). This plan was refined after a review by the Minister of Finance and the World Bank (WB), leading to a proposed restructuring in 2023 to focus on direct benefits to fishing communities, including infrastructure works, a socioeconomic package by Instituto Mixto de Ayuda Social (IMAS), and support for the national fishing fleet. Discussions between the WB and Costa Rican officials in early 2024 introduced the possibility of either a full loan cancellation or a partial cancellation with a restructuring to align with commitments to the OECD. Despite efforts on both sides to improve project implementation, the Project has stalled since mid-2023. Ultimately, the Borrower opted to cancel the loan, close the project (with a new closing date of October, 31, 2024) and financed project activities with counterpart fundings. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial High Macroeconomic High Substantial Substantial Sector Strategies and Policies Low Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial High High Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other -- -- -- Overall Substantial High High Results PDO Indicators by Objectives / Outcomes To improve management of priority fisheries IN01427164 ►Fisheries management plans implemented (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 6/28/2024 Page 2 of 9 The World Bank Implementation Status & Results Report Costa Rica Sustainable Fisheries Development Project (P168475) Date 11-Nov-2019 06-Oct-2023 06-Oct-2023 15-Jun-2026 This indicator measures the number of fisheries management plans that have been implemented through operations supported by the World Bank. This indicator relates to the actual application and enforcement of measures to control fishing in a determined geographic area. Fishing units accessing the fisheries are identifiable (registered, marked, possibly licensed), and management measures (such as gear and spatial or period restrictions) are applied and enforced (as demonstrated by a minimum rate of control of the Comments: target fleet each year, and prosecution of identified delinquents). As of May 2023, the development of management plans has not yet begun; however, the TORs for (i) the stock assessment and management plan development for "pargo" (snapper) and "corvina" (croaker), and (ii) the development of the fisheries management plan in the Gulf of Nicoya, have been developed. IN01427165 ►Priority fisheries show signs of recovery (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 11-Nov-2019 06-Oct-2023 06-Oct-2023 15-Jun-2026 This indicator measures progress in the recovery of priority coastal fisheries as a result of the implementation of fisheries management plans following the OECD guidelines on rebuilding fisheries. The priority fisheries considered include: queen corvina, silk snapper, caribbean sea bass, Caribbean spiny lobster and white shrimp within Responsible Fishing Areas. These species were selected given their current levels of exploitation and the fact that due to their biology may show signs of recovery within the timeframe of the project as a result of management measures. Highly-migratory pelagic species are not included given that their populations can neither be managed nor monitored at national level. Given the lack of data for the application of advanced scientific methods, progress in the recovery of these fisheries Comments: will be assessed through established data-limited methods using the average length of the target species as a proxy indicator. These methods will be complemented by rapid assessments including economic and social variables, such as the FAO Fisheries Performance Assessment (FPA) methodology (currently under development) or a similar one. This indicator will count the number of Responsible Fishing Areas supported by the project where the majority of species monitored show an increase in average size. Cumulative targets. As of May 2023, the result of this indicator depends on the implementation of the management plans (see previous indicator) that have not yet been finalized. To enhance economic opportunities from those fisheries for Costa Rica IN01427162 ►Public revenue from licensing and allocation of vessel capacity in the tuna fishery (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,319,000.00 329,468.00 1,763,130.00 3,500,000.00 Date 31-Dec-2017 31-May-2022 31-May-2022 15-Jun-2026 This indicator measures the increase in public revenue generated for the country from the tuna fishery as a result of the legal and institutional reforms introduced with project support. Public revenue includes fees paid by foreign purse seine vessels for the allocation of the national fishing quota and fees licensing access to the EEZ. The baseline value for this indicator is the public revenue in 2017 as the best projection of future revenue in the absence of interventions. The target value is estimated as the sum of Comments: the expected revenue resulting from the reforms introduced by the project in the tuna fishery, as follows: Assignation of annual capacity quota in international waters: US$2,181 million per year (9,364 m3 capacity x 233 US$/m3); tuna licenses fees: US$450,000 per year (9 licenses x US$50,000 per annual license). Annual targets. From 2022 to May 2023, there has been an income of about US$329,500 in licenses in the Exclusive Economic Zone as a result of the legal reforms (via decree and law). 6/28/2024 Page 3 of 9 The World Bank Implementation Status & Results Report Costa Rica Sustainable Fisheries Development Project (P168475) IN01427163 ►Farmers reached with agricultural assets or services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000.00 Date 11-Nov-2019 06-Oct-2023 06-Oct-2023 15-Jun-2026 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, and farm and processing equipment. Biological assets may include animal agriculture breeds (e.g., livestock, 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- Comments: sanitary and food safety services, agricultural 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 engaged in agricultural activities or members of an agriculture- related business (disaggregated by men and women) targeted by the project. As of May 2023, assets and services oriented to fishermen and fish farmers have not yet been implemented. IN01427166 Farmers reached with agricultural assets or services - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,000.00 Intermediate Results Indicators by Components Strengthening the governance and management of fisheries resources IN01427167 ►Stage of INCOPESCA reform process and strengthening (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 4.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 Stages: 0: no reform; 1: Regulatory instruments for tuna fisheries management drafted or revised (allocation of fishing capacity quotas and licenses to foreign tuna vessels); 2: National Fisheries Development Plan updated with inter-institutional responsibilities assigned; 3: Public Expenditure and Institutional Review of the fisheries sector undertaken; 4: Proposal for institutional reform of INCOPESCA Comments: submitted; 5: Implementation of reform including strengthening of research capacity. Cumulative targets. As of May 2023, the indicator value reflects the approved regulations for the management of tuna fishing (allocation of fishing capacity quotas to foreign tuna vessels). IN01427170 ►National Fisheries Information System established at INCOPESCA and publicly accessible (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/28/2024 Page 4 of 9 The World Bank Implementation Status & Results Report Costa Rica Sustainable Fisheries Development Project (P168475) Value 0.00 0.00 0.00 4.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 This indicator measures the establishment and operation of a National Fisheries Information System ("INCOPESCA Digital") containing the following components: 1. Fisheries Registry: including all fisheries segments (purse seine, long line, small scale, shrimp trawl) with clear regulations for entry, exit and substitution protocols, based on sustainable fishing capacity management criteria; 2. Online user services: (i) licenses; (ii) authorizations; (iii) fisher ID cards (carnets); (iv) inspections; (v) research permissions and reports; (vi) fuel subsidy applications; 3. Monitoring and Control: (i) satellite signal shared with Coast Guard Service; (ii) certificates of vessel compliance; 4. Statistical information: (i) fishing activity reports Comments: (catch and landings); (ii) aquaculture area and production; 5. Marine and Fisheries Natural Capital Accounts linked to the Central Bank. Public access is defined as access to the data through the INCOPESCA website. Baseline value (zero) reflects current status of limited and scattered information on INCOPESCA's website. Cumulative targets. As of May 2023, the TORs for hiring a firm to carry out the analysis of system requirements have been prepared. IN01427176 ►Share of registered fleet monitored through national Vessel Monitoring System (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 9.30 9.30 85.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 This indicator measures the coverage of the registered fleet by the Vessel Monitoring System. The baseline value (vessels monitored/registered) is set as follows: (i) Licensed foreign tuna purse seiners and national long-liners: 280/520; (ii) Small-scale vessels: 0/2528; (iii) Shrimp trawlers: 3/3. Annual targets. Comments: Investing in sustainable fisheries value chains IN01427168 ►Landing sites and processing facilities supported by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 11-Nov-2019 31-May-2023 31-May-2023 27-Jun-2025 This indicator measures the number of key fisheries infrastructure (landing terminals and storage and processing facilities) built under the project. Cumulative targets. As of May 2023, agreements are being signed with municipalities and government institutions for the use Comments: of land where infrastructure works will be built. The documentation (terms of reference) for the development studies have been prepared. IN01427171 ►Fishing organizations trained in business and seafood handling skills (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 6/28/2024 Page 5 of 9 The World Bank Implementation Status & Results Report Costa Rica Sustainable Fisheries Development Project (P168475) This indicator measures the number of fishing and fish farming organizations who receive capacity- building in business management, organizational development, seafood handling, marketing and trade with the intention of qualifying for receiving concessions for the operation of fisheries storage and processing facilities. The target of FO that will benefit from the upgrade of processing facilities are Comments: included in the target value. This indicator also includes FOs that will benefit from training in value addition and business skill development. Cumulative targets. As of May 2023, the capacity building plan for the different sector stakeholders has been finalized. However, the project has not yet begun to implement related training activities. IN01427173 ►Value chain Action Plans and Traceability System developed for priority species (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 This indicator measures the number of (at least four) Value Chain Action Plans developed for priority species through the Competitive Reinforcement Initiative methodology (or similar). This includes the carrying out of multi-stakeholder workshops to train key actors in value chain analysis, identify value chain opportunities and develop coordinated action plans. It also measures the establishment of a National Fisheries and Aquaculture Traceability System to trace information on the origin and legality of fisheries and aquaculture products, integrated with food safety information. The Traceability System will be Comments: considered established and operational following certification by a third party (e.g. ISO 22000 through an external audit). Priority species may include: tuna, swordfish, snapper, dorado/dolphin fish. Cumulative targets. As of May 2023, TORs for the development of the national market study as well as a training plan for the promotion of fishing and aquaculture products, have been finalized. Strengthening mechanisms for social and environmental sustainability IN01427169 ►Fishing areas under participatory management plans (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 125,300.00 0.00 0.00 250,000.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 This indicator measures the marine area under co-management schemes developed in a participatory manner with local fishermen communities, such as Responsible Fishing Area formally adopted by the INCOPESCA Board of Directors and/or other co-management schemes. Cumulative targets. Status as of May 2023: Since the formulation of the project, the number of hectares of Marine Area for Comments: Responsible Fishing (AMPR) has increased as a result of 3 additional zones (Papagayo, Barra Colorado and Area 201-Golfo Nicoya). In this sense, the area where co-management plans could be implemented has been expanded to 207130 ha. IN01427172 ►Payment for Marine Ecosystem Services schemes piloted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 6/28/2024 Page 6 of 9 The World Bank Implementation Status & Results Report Costa Rica Sustainable Fisheries Development Project (P168475) This indicator measures the establishment of payments for Marine Ecosystem Services pilot schemes or similar mechanisms with the aim of incentivizing the transition to sustainable fisheries management and to maintain or improve the provision of marine ecosystem goods and services. The schemes will be formalized through Marine Ecosystem Services contracts with target beneficiaries based on a detailed Procedures Manual. Cumulative targets. Comments: As of May 2023, the institutional agreement between INCOPESCA and, as institution responsible for implementing the payment mechanism, Fundacion Banco Ambiental (FUNBAM), has been negotiated and drafted. . IN01427174 ►Women-led alternative livelihood initiatives supported by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 This indicator measures the number of new alternative livelihood and income generation initiatives supported by the Project that specifically target women-led associations or businesses (i.e. organizations with a majority of women in the Board or leadership positions) in the fisheries sector. Types of supported activities include specialized skills training (accompanied by provision of child care during training session) Comments: and business development, selected in consultation with women-led organizations. Cumulative targets. Status as of May 2023, the procurement process for the Socioeconomic and Labor Market Diagnostic study is under way. It will be carried out prior to the initiation of related activities. IN01427175 ►Share of target beneficiaries with rating ‘Satisfied’ or above on project interventions and participation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 The indicator is a citizen engagement indicator and captures the degree of satisfaction of the target population with the project, related to the following: fisheries management, job creation, livelihoods, value capture, and participation in decision making processes. It will be administered through a semi-structured survey with project beneficiaries and include sex-disaggregated information. Annual targets. Status as of May 2023: Given the project was slow to begin implementation, very limited field activities Comments: have taken place, therefore surveys have not yet started. INCOPESCA has a dedicated specialist assigned with GRM management as well as any beneficiary surveys. In addition the PIU has started developing a communications strategy that will include carrying out satisfaction surveys with the identified beneficiaries in the intervention sites. IN01427177 ►Grievances registered related to the project addressed (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 95.00 Date 11-Nov-2019 31-May-2023 31-May-2023 15-Jun-2026 This indicator measures the transparency and accountability mechanisms established by the project so that potential grievances related to the project are addressed promptly. Annual targets. Comments: As of May 2023, all inquiries received in the INCOPESCA web system were addressed. There were no inquiries received during the first semester of 2023. 6/28/2024 Page 7 of 9 The World Bank Implementation Status & Results Report Costa Rica Sustainable Fisheries Development Project (P168475) Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P168475 IBRD-90500 Effective USD 75.10 5.19 69.91 5.19 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P168475 IBRD-90500 Effective 24-Mar-2020 31-Jul-2020 19-Sep-2021 19-May-2027 31-Oct-2024 Cumulative Disbursements 6/28/2024 Page 8 of 9 The World Bank Implementation Status & Results Report Costa Rica Sustainable Fisheries Development Project (P168475) Restructuring History Level 2 Approved on 06-Jun-2024 Related Project(s) There are no related projects. 6/28/2024 Page 9 of 9