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World Bank Document Document of the World Bank Public Disclosure Authorized Report No: ICR2579 IMPLEMENTATION COMPLETION AND RESULTS REPORT (TF-93614) ON A GRANT UNDER THE GLOBAL FOOD CRISIS RESPONSE PROGRAM Public Disclosure Authorized IN THE AMOUNT OF US$3.0 MILLION TO THE LAO PEOPLE’S DEMOCRATIC REPUBLIC FOR A RICE PRODUCTIVITY IMPROVEMENT PROJECT Public Disclosure Authorized December 21, 2012 Southeast Asia Sustainable Development Department Southeast Asia Country Management Unit East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Appraisal Exchange Rate Effective September 20, 2008) Currency Unit = Lao Kip Kip 8850 = US$1 (Closing Date Exchange Rate Effective July 01, 2012) Currency Unit = Lao Kip Kip 7986 = US$1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ACIAR Australian Center for International Agricultural Research ADB Asian Development Bank ADP Agriculture Development Project AFD Agence Française de Développement AusAID Australian Agency for International Development CIAT Centro Internacional de Agricultura Tropical (Colombia) CPS Country Partnership Strategy DAFO District Agriculture and Forestry Office DS Dry Season EIRR Economic Internal Rate of Return EMP Environmental Management Plan EPP Emergency Project Paper EU European Union FAO Food and Agriculture Organization of the United Nations FIRR Financial Internal Rate of Return FM Financial Management FPCR Food Crisis Response Program Trust Fund GFRP Global Food Crisis Response Program GM Gross Margin GOL Government of Lao PDR Ha Hectare ICB International Competitive Bidding ICY Improving Crop Yields Project (ACIAR supported) IFAD International Fund for Agricultural Development IFR Interim Financial Report INGO International Non-government Organization IRRI International Rice Research Institute KDP Khammouane Development Project (H4040, H7560) LUFSIP Lao Upland Food Security Improvement Project (H5610) MAF Ministry of Agriculture and Forestry MoF Ministry of Finance ii M&E Monitoring and Evaluation NAFES National Agriculture and Forestry Extension Service NAFReC Northern Agriculture and Forestry Research and Center NAFRI National Agriculture and Forestry Research Institute NCB National Competitive Bidding NGO Non-governmental Organization NGPES National Growth an Poverty Eradication Strategy PAFO Provincial Agriculture and Forestry Office PDO Project Development Objective PrMO Procurement Monitoring Office PRSP Poverty Reduction Strategy Paper RISEP Rice Seed Multiplication System Improvement Project RPIP Rice Productivity Improvement Project RRSMCs Rice Research and Seed Multiplication Centers SDC Swiss Agency for Development and Cooperation SIDA Swedish International Development Agency SMS Seed Multiplication Systems UNDP United Nations Development Program VDC Village Development Committee WFP World Food Programme WS Wet Season Vice President: Ms. Pamela Cox Country Director: Ms. Annette Dixon Country Manager Ms. Keiko Miwa Sector Manager: Ms. Julia M. Fraser Project Task Team Leader: Mr. Paavo Eliste ICR Team Leader: Mr. Chanhsom Manythong iii LAO PEOPLE’S DEMOCRATIC REPUBLIC RICE PRODUCTIVITY IMPROVEMENT PROJECT CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ............................................. 1 2. Key Factors Affecting Implementation and Outcomes ............................................ 4 3. Assessment of Outcomes ........................................................................................ 10 4. Assessment of Risk to Development Outcome ....................................................... 14 5. Assessment of Bank and Borrower Performance ................................................... 15 6. Lessons Learned...................................................................................................... 18 7. Comments on Issues Raised by Grantee/Implementing Agencies/Donors............. 19 Annex 1. Project Costs and Financing ........................................................................ 20 Annex 2. Outputs by Component................................................................................ 21 Annex 3. Economic and Financial Analysis ............................................................... 21 Annex 4. Grant Preparation and Implementation Support/Supervision Processes ..... 32 Annex 5. Beneficiary Survey Results ......................................................................... 33 Annex 6. Stakeholder Workshop Report and Results ................................................. 35 Annex 7. Summary of Grantee's ICR and/or Comments on Draft ICR ...................... 36 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ..................... 37 Annex 9. List of Supporting Documents .................................................................... 42 MAP (IBRD36573) ..................................................................................................... 42 iv A. Basic Information LAO PDR: Rice Lao People's Country: Project Name: Productivity Democratic Republic Improvement Project Project ID: P114617 L/C/TF Number(s): TF-93614 ICR Date: 12/21/2012 ICR Type: Core ICR Lending Instrument: ERL Borrower: LAO PDR Original Total USD 3.00M Disbursed Amount: USD 3.00M Commitment: Revised Amount: USD 3.00M Environmental Category: C Implementing Agencies: Ministry of Agriculture and Forestry Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: Effectiveness: 03/02/2009 Appraisal: Restructuring(s): 12/15/2011 Approval: 01/13/2009 Mid-term Review: Closing: 12/31/2011 06/30/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Substantial Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Quality at Entry: Government: Satisfactory Unsatisfactory Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of Yes None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Agricultural extension and research 18 20 Crops 62 60 Public administration- Agriculture, fishing and forestry 20 20 Theme Code (as % of total Bank financing) Global food crisis response 100 100 E. Bank Staff Positions At ICR At Approval Vice President: Pamela Cox James W. Adams Country Director: Annette Dixon Ian C. Porter Sector Manager: Julia M. Fraser Rahul Raturi Project Team Leader: Paavo Eliste Richard H. E. Chisholm ICR Team Leader: Chanhsom Manythong ICR Primary Author: Chanhsom Manythong Jean-Paul Chausse F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The main development objective would be to increase rice productivity and overall volume of rice production among smallholders in four selected provinces, thereby substantially increasing incomes and improving food security for small farm households. This would result in a very rapid reduction of seasonal and disaster related shortages of rice in the project areas, as well as reducing the impacts of rising food prices and population increases in the longer term. ii Revised Project Development Objectives (as approved by original approving authority) (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 Indicator 1 : Increase in yield (25%) of surplus rice (over consumption needs) 2,500 kg/ha in wet season 3,900 kg/ha in wet and 3,500 kg / ha in dry season and 4,400 3,125 kg/ha in wet Value season kg/ha in dry season season and 4,375 quantitative or kg/ha in dry Qualitative) 27 improved varieties 19 improved season 18 local varieties varieties produced 12 local varieties Date achieved 04/30/2010 03/02/2009 05/31/2012 Achieved. Average yield increase was 56% for WS and 26% for DS. Reduction Comments of number of varieties used by farmers is a good sign of sector development, (incl. % indicates increasing commercialization of rice and harmonization of quality of achievement) paddy for milling Increase in value of surplus rice produced (10%) by participating farmer groups Indicator 2 : compared to baseline Total paddy production per Total paddy production household 6,600 per household 4,750 kg. kg. Total Total production of rice production of rice after losses and seed use after losses and Value 2,489 kg; 10% increase seed use 3,482 kg. quantitative or Household rice equals to Kip 5.2 Household rice Qualitative) consumption 1,200 million consumption 1,200 kg/year. Surplus rice kg/year. 1,289 kg. Value of Surplus rice 2,282 surplus rice Kip 4.7 kg. Value of million. surplus rice Kip 6.7 million. Date achieved 04/30/2010 03/02/2009 05/31/2012 Achieved.
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