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World Bank Document The World Bank Report No: ISR4075 Implementation Status & Results Philippines Mindanao Rural Development Project - Phase 2 (P084967) Operation Name: Mindanao Rural Development Project - Phase 2 (P084967) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: Country: Philippines Approval FY: 2007 Public Disclosure Authorized Product Line:IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Adaptable Program Loan Implementing Agency(ies): Department of Agriculture Key Dates Board Approval Date 22-Mar-2007 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 01-Mar-2011 Last Archived ISR Date 28-Dec-2010 Public Disclosure Copy Effectiveness Date 03-Jul-2007 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date 07-Jun-2011 Project Development Objectives Mindanao Rural Development Project - Phase 2 (P084967) Project Development Objective (from Project Appraisal Document) MRDP 2 aims to (i) improve livelihood opportunities of targeted communities and (ii) institutionalize a decentralized system for agriculture and fisheries service delivery that promotes participation, transparency and accountability. Has the Project Development Objective been changed since Board Approval of the Program? Public Disclosure Authorized Yes No Component(s) Component Name Component Cost Investments for Governance Reforms and Program Administration 4.40 Rural Infrastructure Component 56.45 Community Fund for Agricultural Development (CFAD) Component 18.00 Natural Resource Management Component 4.40 Overall Ratings Previous Rating Current Rating Public Disclosure Authorized Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Progress towards achievement of GEO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial High Public Disclosure Copy Implementation Status Overview This ISR presents the findings of the the Sixth Implementation/ Mid-term Review Mission (June 7-17, 2011). Page 1 of 16 Public Disclosure Authorized The World Bank Report No: ISR4075 Implementation progress continue to accelerate as shown by the following achievements since the 5th Mission in September-October 2010: i) the completion of an additional PhP170 million worth of rural infrastructure (RI) sub-projects representing a 76% increase so that there are now a total of PhP391 million worth of completed RI sub-projects as of May 2011; ii) 108 percent increase in the number of households benefiting from livelihood projects under the Community Fund for Agricultural Development (CFAD) component so that there are now a total of nearly 50,000 beneficiaries; iii) substantial progress in the processing of the RI and CFAD subprojects since the last mission so that further acceleration in project physical and financial accomplishments are expected in the near term; and iv) the coverage of all 35 target municipal local government units (MLGUs) under the Natural Resources Management (NRM) component. There are also indications that there is already progress in the achievement of the PDOs. The economic benefits of completed RI, CFAD and NRM sub-projects are likely already being felt by the target LGUs and households. In the NRM component, for instance, initial estimates show that the establishment of almost 600 hectares of marine and fish sanctuaries may provide a total of about PhP19 million pesos annually in additional income to communities, the 390 hectares of mangroves is likely to contribute about PhP130 million annually, while agro-forestry activities are projected to contribute to increasing farmers' income by PhP4,000/hectare (after 5 years) to about PhP7,000/hectare (after 10 years). Moreover, the institutionalization of a devolved system of agri/fishery services delivery can already be seen in the mainstreaming of project implementation at the sub-national Public Disclosure Copy level, e.g, in the local development planning process, and in the regular functions of the Department of Agriculture's (DA) Regional Field Units (RFUs). The current scale of these accomplishments, however, still fell short of what is being targeted at this stage of the project due to continuing implementation difficulties. With only some 20% of the loan disbursed as of June 2011, it will not be possible to fully utilize the loan by loan closing on December 31, 2012. Given the current implementation trajectory, it is estimated that at least a one year extension of the loan would be required to fully utilize the funds. It should, however, be noted that there had been an 18-month implementation hiatus brought about by the uncertainties generated by discussions between the DA and the Oversight agencies on the NG-LGU cost sharing arrangement in the project. Factoring out this hiatus, project implementation is delayed by only about six months. By component, disbursements are approximately on track for Natural Resources Management (NRM) and Implementation for Governance Reform (IGR), and lagging in the case of the Rural Infrastructure (RI) and the Community Fund for Agricultural Development (CFAD). The pace of RI and CFAD implementation is, however, accelerating such that, by December 2011, it is estimated that 20% of the RI allocation and 30% of the CFAD allocation would have been utilized. Locations Country First Administrative Division Location Planned Actual Philippines Zamboanga Peninsula Province of Zamboanga del Sur Philippines Zamboanga Peninsula Province of Zamboanga del Sur Philippines Zamboanga Peninsula Province of Zamboanga del Norte Philippines Caraga Veruela Philippines Autonomous Region in Muslim Mindanao Upi Philippines Autonomous Region in Muslim Mindanao Turtle Islands Philippines Davao Tupi Philippines Zamboanga Peninsula Tungawan Philippines Soccsksargen Tulunan Public Disclosure Copy Philippines Northern Mindanao Municipality of Tudela Page 2 of 16 The World Bank Report No: ISR4075 Country First Administrative Division Location Planned Actual Philippines Zamboanga Peninsula Tuburan Philippines Soccsksargen Municipality of Tubod Philippines Caraga Tubajon Philippines Caraga Trento Philippines Zamboanga Peninsula Titay Philippines Zamboanga Peninsula Tipo-Tipo Public Disclosure Copy Philippines Davao T"boli Philippines Autonomous Region in Muslim Mindanao Province of Tawi-Tawi Philippines Davao Tarragona Philippines Davao Tantangan Philippines Autonomous Region in Muslim Mindanao Municipality of Tandubas Philippines Caraga Tandag Philippines Autonomous Region in Muslim Mindanao Tamparan Philippines Davao Tampakan Philippines Zamboanga Peninsula Talusan Philippines Caraga Talacogon Philippines Caraga Tago Philippines Soccsksargen Tacurong Philippines Caraga Province of Surigao del Norte Philippines Davao Surallah Philippines Zamboanga Peninsula Sumisip Philippines Northern Mindanao Sumilao Philippines Autonomous Region in Muslim Mindanao Province of Sulu Public Disclosure Copy Philippines Soccsksargen Province of Sultan Kudarat Philippines Autonomous Region in Muslim Mindanao Sultan Kudarat Page 3 of 16 The World Bank Report No: ISR4075 Philippines Davao Sulop Philippines Northern Mindanao Sugbongcogon Philippines Autonomous Region in Muslim Mindanao South Upi Philippines Autonomous Region in Muslim Mindanao Municipality South Ubian Philippines Caraga Sison Philippines Northern Mindanao Municipality of Sinacaban Philippines Autonomous Region in Muslim Mindanao Simunul Public Disclosure Copy Philippines Zamboanga Peninsula Municipality of Sibutad Philippines Caraga Sibagat Philippines Zamboanga Peninsula Municipality of Siayan Philippines Zamboanga Peninsula Siay Philippines Autonomous Region in Muslim Mindanao Municipality of Siasi Philippines Davao Lake Sebu Philippines Davao Sarangani Philippines Davao Sarangani Philippines Davao Santo Tomas Philippines Davao Santo Nino Philippines Ilocos Santiago Philippines Caraga Santa Monica Philippines Caraga Santa Josefa Philippines Davao Santa Cruz Philippines Caraga San Miguel Philippines Zamboanga Peninsula Municipality of San Miguel Philippines Central Luzon San Luis Public Disclosure Copy Philippines Davao San Isidro Page 4 of 16 The World Bank Report No: ISR4075 Philippines Caraga San Francisco Philippines Northern Mindanao San Fernando Philippines Caraga San Benito Philippines Caraga San Agustin Philippines Soccsksargen Municipality of Salvador Philippines Northern Mindanao Salay Philippines Caraga Rosario Public Disclosure Copy Philippines Zamboanga Peninsula Municipality of Rizal Philippines Caraga Prosperidad Philippines Soccsksargen President Roxas Philippines Soccsksargen President Quirino Philippines Zamboanga Peninsula Municipality of Jose Dalman Philippines Davao Polomolok Philippines Soccsksargen Pikit Philippines Soccsksargen Pigcawayan Philippines Autonomous Region in Muslim Mindanao Piagapo Philippines Autonomous Region in Muslim Mindanao Parang Philippines Autonomous Region in Muslim Mindanao Municipality of Parang Philippines Davao Pantukan Philippines Autonomous Region in Muslim Mindanao Municipality of Pangutaran Philippines Soccsksargen Palimbang Philippines Mimaropa Province of Palawan Philippines Zamboanga Peninsula Olutanga Philippines Soccsksargen Province of North Cotabato Public Disclosure Copy Philippines Soccsksargen Province of North Cotabato Page 5 of 16 The World Bank Report No: ISR4075 Philippines Davao Norala Philippines Davao New Bataan Philippines Caraga Nasipit Philippines Davao Nabunturan Philippines Davao Montevista Philippines Davao Monkayo
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