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Document of The World Bank Public Disclosure Authorized Report No: ICR0000665 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-36570) ON A CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 15.0 MILLION (US$22.06 MILLION EQUIVALENT) TO MONGOLIA FOR THE SUSTAINABLE LIVELIHOODS PROJECT Public Disclosure Authorized June 19, 2008 Rural Development, Natural Resources and Environment Sector Unit Sustainable Development Department East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their Public Disclosure Authorized official duties. Its contents may not otherwise be disclosed without World Bank permission. CURRENCY EQUIVALENTS Currency Unit = Mongolian Tögrög (MNT) Exchange Rate Effective February 4, 2008: MNT 1,000 = US$0.8525 US$1.00 = MNT1,172 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CGAP Consultative Group to Assist the Poorest CPR Centre for Policy Research CSD Centre for Social Development DCA Development Credit Agreement HLSPO Household Livelihoods Support Program Office HLSC Household Livelihood Support Council (?) IBLI Index-Based Livestock Insurance JSDF Japan Social Development Fund KPI Key Performance Indicators LDF Local Development Fund LEWS Livestock Early Warning System LIF Local Initiatives Fund MDF Micro-Finance Development Fund M&E Monitoring and Evaluation MFI Micro-Finance Institution NDVI Normalized Differentiated Vegetation Index NGO Non-governmental Organization NPAP National Poverty Alleviation Program PAD Project Appraisal Document PDO Project Development Objective PFI Participating Financial Institution PIM Project Implementation Manual PRM Pastoral Risk Management RLF Revolving Loan Fund SLA Subsidiary Loan Agreement SLP Sustainable Livelihoods Project SRMC Soum Risk Management Committee GLOSSARY aimag an administrative Province dzud the occurrence of an exceptionally harsh winter, frequently following a long and pasture- killing summer drought, that causes high livestock mortality rates. sum/soum an administrative District bag a lowest-level rural administrative unit ger traditional wooden-framed and felt-covered dwelling Vice President James E. Adams, EAPVP Country Director David R. Dollar, EACCF Sector Manager Rahul Raturi, EASRE Project Team Leader Andrew Goodland, EASRE ICR Team Leader Gayane Minasyan, EASRE Mongolia Sustainable Livelihoods Project Implementation Completion and Results Report Contents Page No. Data Sheet i-vii 1. Project Context, Development Objectives and Design............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 7 3. Assessment of Outcomes .......................................................................................... 13 4. Assessment of Risk to Development Outcome......................................................... 21 5. Assessment of Bank and Borrower Performance ..................................................... 22 6. Lessons Learned........................................................................................................24 7. Comments on Issues Raised by Borrower, Implementing Agencies and Partners... 25 Annex 1. Project costs and financing..................................................................................... 27 Annex 2. Outputs by components .......................................................................................... 29 Annex 3. Economic and Financial Analysis .......................................................................... 40 Annex 4. Bank Lending and Implementation Support/Supervision Processes ...................... 44 Annex 5. Summary of the Borrower’s ICR and/or Comments on the Draft ICR .................. 47 Annex 6. List of Supporting Documents................................................................................ 48 Maps 31854, 31855, 31856 A. Basic Information Country Mongolia Project Name Sustainable Livelihoods Project ID P067770 Credit Number IDA-36570 ICR Date May 30, 2008 ICR Type Core Lending Instrument APL Borrower Mongolia Original Total XDR 15.0 million Disbursed Amount XDR 15.0 million Commitment Environmental Category B Implementing Agencies Household Livelihoods Support Program Office Co-financiers & Other External Partners Japan Social Development Fund B. Key Dates Revised and/or Process Date Process Original Date Actual Dates November 21, September 30, September 30, Concept Review Effectiveness 2000 2002 2002 Appraisal February 25, 2002 Restructuring - - Mid-term Approval June 11, 2002 March 28, 2005 May 27, 2005 Review December 31, December 31, Closing 2006 2007 C. Ratings Summary C.1 Performance Rating by ICR Outcomes Satisfactory Risk to Development Outcome Moderate Bank Performance Satisfactory Borrower Performance Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry Satisfactory Government Satisfactory Quality of Supervision Satisfactory Implementing Agency Satisfactory Overall Bank Performance Satisfactory Overall Borrower Performance Satisfactory C.3 Quality at Entry and Implementation Performance Indicators Implementation Performance Indicators QAG Assessments (if any) Rating Potential Problem Project at No Quality at Entry (QEA) None any time? i Problem Project at any time? No Quality of Supervision (QSA) None DO rating before Closing Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as percentage of total Bank financing) Animal production 22 24 Central government administration 6 11 Micro-finance and small & medium enterprise finance 27 24 Other social services 45 48 Theme Code (Primary/Secondary) Administrative and civil service reform Secondary Secondary Improving labor markets Primary Primary Infrastructure services for private sector development Primary Primary Participation and civic engagement Primary Primary Rural markets Primary Primary E. Bank Staff Positions At ICR At Approval Vice President James Adams Jemal-ud-din Kassum Country Director David R. Dollar Ian C.Porter Sector Manager Rahul Raturi Mark D. Wilson Project Team Leader Andrew D. Goodland Robin Mearns ICR Team Leader Gayane Minasyan - Gayane Minasyan/ Andrew ICR Primary Author - Goodland F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The Sustainable Livelihoods Program, Adaptable Program Loan (APL), was designed to support a strategic shift in the Government of Mongolia’s anti-poverty strategy (please see details in Section 1.1 Context at Appraisal) and to be implemented in three Phases over twelve years beginning in 2002. The Sustainable Livelihoods Project was designed to support Phase I of the Program. The development objective of the project is “an effective approach to promoting improved, secure, and sustainable livelihood strategies developed, demonstrated, and validated in selected areas, and institutional capacity created so that these strategies can be replicated and scaled-up in Phase II of the Program”. ii Revised Project Development Objective (as approved by original approving authority) The development objective of the project was not altered during its implementation. PDO Indicators Actual Value Original Target Values Formally Achieved at Indicator Baseline Value (from approval Revised Completion or documents) Target Values Target Years Indicator 1 Improved pastoral risk management strategies adopted in core aimags. The number of The proportion of herding herding households households making adequate which made Value 42.9% of baseline preparations for winter to be preparation for winter respondents increased by 33 percent in increased by 53.7% project areas. compared with the pre-project period Date achieved October 1, 2002 December 31, 2006 November 2006 Although there was no specific definition of “adequate preparations” in the indicator, it can reasonably be taken to mean i) adequate hay and fodder preparation and ii) Comments construction of livestock shelters. The number above is from an independent evaluation of the PRM which provides information on the change of attitude, based on the herders’ recollection. The number of animal losses 9.2%-13.3% of Livestock mortality in Value related to dzud to be reduced livestock lost due to pilot aimags reduced by 33 percent in project dzud (1996-2002) by 44 percent. areas. Date achieved October 1, 2002 December 31, 2006 December, 2005 Note that it is difficult to attribute this reduction to the project. No significant dzud took Comments place during the project period, so it would be expected that animal losses would decrease. at least 50 percent of the 100 percent of grazing land area to be grazing land in under improved Value project areas was Not available management in project areas under improved by comparison with the start management plans at of the project. project completion. Date achieved October 1, 2002 December 31, 2006 December 2007 While not a measure of the area improved, 59 percent of herder group respondents felt that pastures had improved considerably - a perception shared by 30 percent of non-group Comments herders. If the perceptions are assumed to reflect the area managed by herders, and group and non-group herders are roughly equal in number, then the result would indicate an improvement in only slightly less than 50 percent of the area. A discernible positive No NDVI or other impact to be achieved on remote sensing data range-vegetation conditions