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Document of The World Bank FOR OFFICIAL USE Public Disclosure Authorized Report No: ICR2399 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-47170) Public Disclosure Authorized ON A LOAN IN THE AMOUNT OF US$80 MILLION TO ROMANIA Public Disclosure Authorized FOR AN IRRIGATION REHABILITATION AND REFORM PROJECT December 27, 2012 Public Disclosure Authorized Environmentally and Socially Sustainable Development Sector Unit South Central Europe Country Unit Europe and Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective May 31, 2012) Currency Unit = RON US$ 1.00 = 3.61 RON FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AB Area Benefiting ANAR National Administration " Apele Romane" ANIF National Administration/Agency of Land Reclamation CAS Country Assistance Strategy CBA Cost Benefit Analysis EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMP Environmental Management Plan FWUOs Federation of Water User Organizations GDP Gross Domestic Product Ha Hectares HVC High Value Crops I&D Irrigation and Drainage ICB International Competitive Bidding ICR Implementation Completion and Results Report LRA Land Reclamation Agency LRC Length of Rehabilitated Canals LRD Land Reclamation Directorate MAFWE Ministry of Agriculture, Forestry, Water and Environment (then MARD) MAI Ministry of Administration and Interior MARD Ministry of Agriculture and Rural Development (former MAFWE) MIS Management Information System MPF Ministry of Public Finance NCB National Competitive Bidding NRDP National Rural Development Program OP Operational Policy O&M Operation and Maintenance PA Project Area PIA Project Impact Assessment PIP Project Implementation Plan PMU Project Management Unit PPF Project Preparation Facility PPSs Pressure Pumping Station(s) PPU Project Preparation Unit PS Pump Station PTSC Project Technical Steering Committee RAIF Autonomous Administration of Land Reclamation SCELIFs State-owned Land Reclamation Commercial Companies SNIF National Company "Land Reclamation" TI Tertiary Infrastructure USAID U.S. Agency for International Development WME Water Metering Equipment WUAs/WUOs Water User Association(s)/ Water User Organization(s) WUAMU Water User Associations Monitoring Unit (MARD) Vice President Philippe Le Houerou Acting Country Director Roland K. Peters Sector Manager Dina Umali-Deininger Project Team Leader Gabriel Ionita ICR Team Leader / Author Gabriel Ionita / Juan B. Morelli ii ROMANIA IRRIGATION REHABILITATION AND REFORM PROJECT CONTENTS DATA SHEET A. Basic Information .................................................................................................... iv B. Key Dates ................................................................................................................ iv C. Ratings Summary .................................................................................................... iv D. Sector and Theme Codes ...........................................................................................v E. Bank Staff ..................................................................................................................v F. Results Framework Analysis .....................................................................................v G. Ratings of Project Performance in ISRs ................................................................ vii H. Restructuring ......................................................................................................... viii I. Disbursement Profile ............................................................................................ viii 1. Project Context, Development Objectives and Design ..............................................1 2. Key Factors Affecting Implementation and Outcomes .............................................4 3. Assessment of Outcomes ...........................................................................................9 4. Assessment of Risk to Development Outcome ........................................................14 5. Assessment of Bank and Borrower Performance ....................................................14 6. Lessons Learned.......................................................................................................17 7. Comments on Issues Raised by Borrower/Implementing Agencies ........................18 Annex 1. Project Costs and Financing .........................................................................19 Annex 2. Outputs by Component.................................................................................20 Annex 3. Economic and Financial Analysis ................................................................27 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............33 Annex 5. Beneficiary Survey Results ..........................................................................35 Annex 6. Stakeholder Workshop Report and Results ..................................................40 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ....................43 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ......................57 Annex 9. List of Supporting Documents .....................................................................58 MAP .............................................................................................................................59 iii DATA SHEET A. Basic Information Irrigation Rehabilitation & Country: Romania Project Name: Reform Project Project ID: P043881 L/C/TF Number(s): IBRD-47170 ICR Date: 05/11/2012 ICR Type: Core ICR Lending Instrument: SIL Borrower: ROMANIA Original Total USD 80.00M Disbursed Amount: USD 74.09M Commitment: Revised Amount: USD 80.00M Environmental Category: B Implementing Agencies: Ministry of Agriculture and Rural Development Co-financiers and Other External Partners: none B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 09/15/2000 Effectiveness: 04/29/2004 04/29/2004 Appraisal: 01/27/2003 Restructuring(s): - 07/12/2010 Approval: 07/31/2003 Mid-term Review: 11/15/2006 11/14/2007 Closing: 03/31/2011 06/30/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Unsatisfactory Risk to Development Outcome: Substantial Bank Performance: Moderately Unsatisfactory Borrower Performance: Unsatisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Quality at Entry: Government: Unsatisfactory Unsatisfactory Quality of Moderately Moderately Implementing Agency: Supervision: Unsatisfactory Unsatisfactory Overall Bank Moderately Overall Borrower Unsatisfactory Performance: Unsatisfactory Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Quality at Entry No Moderately Satisfactory Project at any time (QEA): iv (Yes/No): Problem Project at any Quality of Yes Moderately Satisfactory time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Unsatisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Agricultural extension and research 1 1 Central government administration 4 4 Irrigation and drainage 94 94 Vocational training 1 1 Theme Code (as % of total Bank financing) Environmental policies and institutions 14 14 Other rural development 29 29 Rural policies and institutions 14 14 Rural services and infrastructure 14 14 Water resource management 29 29 E. Bank Staff Positions At ICR At Approval Vice President: Philippe H. Le Houerou Johaness F. Linn Country Director (Acting): Roland K. Peters Andrew N. Vorkink Sector Manager: Dina Umali-Deininger Laura Tuck Project Team Leader: Gabriel Ionita Toru Konishi ICR Team Leader: Gabriel Ionita - ICR Primary Author: Juan B. Morelli - F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) PDO were: (i) increasing agricultural productivity in project area; and (ii) more economic use of irrigation resources through change of farmers' and LRA's behavior. Revised Project Development Objectives (as approved by original approving authority) The original PDO were not revised. v (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years PDO Increase in agricultural productivity in project area (yield, gross margin, and return to Indicator 1: labor) Value Corn yield 5 tons/ha 6.5 tons/ha 7.4 tons/ha (quantitative or Veg. yield 14.2 tons/ha 20 tons/ha n/a 23 tons/ha qualitative) Gross margin 263 $/ha 350 $/ha 313 $/ha Date achieved 06/30/2003 03/31/2011 03/31/2012 06/30/2012 Comments Partially achieved: Yields achieved for corn and vegetables exceeded targets Gross (incl. % margin from agriculture in project area was expected to grow by 33+ percent. The achievement) Project Impact Assessment estimated only 6 percent increase as compared with the control area (based on actual cropping patterns and yields). PDO More economic use of irrigation facilities and resources through changes in Indicator 2: farmers’ and LRA’s behavior (irrigation intensity and cropping patterns) Value 13% of project area 41% of project area 70% of project area (quantitative or - irrigated irrigated irrigated in 2010 qualitative) in 2011 Date achieved 06/30/2003 03/31/2011 - 06/30/2012 Comments Not achieved: irrigation intensity is reduced and cropping