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Agricultural Reform Implementation Project

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Agricultural Reform Implementation Project Document of The World Bank Public Disclosure Authorized Report No: ICR00001155 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-46310) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$600 MILLION TO THE REPUBLIC OF TURKEY FOR AN AGRICULTURAL REFORM IMPLEMENTATION PROJECT Public Disclosure Authorized November 23, 2009 Sustainable Development Department Turkey Country Unit Public Disclosure Authorized Europe and Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective November 11, 2009) Currency Unit = Turkish Lira [TL] TL 1.00 = US$ 0.681 US$ 1.00 = TL 1.46 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ACC Agricultural Credit Cooperative ARIP Agricultural Reform Implementation Project ASC Agricultural Sales Cooperative ASCU Agricultural Sales Cooperatives Union CATAK Environmentally Based Land Utilization Subcomponent DFIF Support Price Stability Fund DIS Direct Income Support DSI State Hydraulics Works ERL Economic Reform Loan EU European Union GDAR General Directorate of Agrarian Reform GDRS General Directorate of Rural Services IPARD Instrument for Pre-accession Assistance- Rural Development IRFO Institutional Reinforcement of Farmers Organizations LC Land Consolidation MARA Ministry of Agriculture and Rural Affairs M & E Monitoring and Evaluation MIT Ministry of Industry and Trade NRF National Registry of Farmers SEE State Economic Enterprise TAKOG Joint Venture of Cooperative Unions - formed to execute the IRFO sub- component for the General Directorate of Support and Organization TEKEL Turkish Alcohol and Tobacco Company TKGM General Directorate of Turkish Cadastre and Land Registration TMO Turkish Grain Board TUGEM General Directorate of Agricultural Production and Development UoT Undersecretariat of the Treasury TL Turkish Lira VBPIP Village Based Participatory Investments Programs Vice President: Philippe H. Le Houerou Country Director: Ulrich Zachau Sector Manager: Dina Umali-Deininger Task Team Leader: Holger A. Kray ICR Team Leader: Holger A. Kray TURKEY Agricultural Reform Implementation Project (ARIP) CONTENTS A. Basic Information........................................................................................................i B. Key Dates ....................................................................................................................i C. Ratings Summary ........................................................................................................i D. Sector and Theme Codes............................................................................................ii E. Bank Staff ...................................................................................................................ii F. Results Framework Analysis .....................................................................................iii G. Ratings of Program Performance in ISRs ..................................................................v H. Restructuring (if any) ................................................................................................vi 1. Program Context, Development Objectives and Design............................................ 1 2. Key Factors Affecting Implementation and Outcomes........................................... 12 3. Assessment of Outcomes ......................................................................................... 15 4. Assessment of Risk to Development Outcome......................................................... 29 5. Assessment of Bank and Borrower Performance...................................................... 29 6. Lessons Learned........................................................................................................ 31 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........... 32 Annex 1: Agricultural Reform Implementation Project - Loan Funds Summary by Project Components ...................................................................................................... 33 Annex 2: Outputs by Component................................................................................. 33 Annex 3: Economic and Financial Analysis ................................................................ 65 Annex 4: Bank Lending and Implementation Support/Supervision Processes............ 69 Annex 5: Beneficiary Survey Results .......................................................................... 71 Annex 7: Borrower’s Comments on ICR ..................................................................... 72 Annex 8: Comments of Cofinanciers and other Partners............................................. 81 Annex 9: List of Supporting Documents...................................................................... 82 MAP IBRD 33501 A. Basic Information Agricultural Reform Country: Turkey Program Name: Implementation Project (ARIP) Program ID: P070286 L/C/TF Number(s): IBRD-46310 ICR Date: 11/25/2009 ICR Type: Core ICR REPUBLIC OF Lending Instrument: SAD Borrower: TURKEY Original Total USD 600.0M Disbursed Amount: USD 521.3M Commitment: Revised Amount: USD 521.3M Implementing Agencies: Undersecretariat of Treasury Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 06/15/2000 Effectiveness: 07/17/2001 05/24/2004 Appraisal: 11/10/2000 Restructuring(s): 05/16/2007 Approval: 07/12/2001 Mid-term Review: Closing: 12/31/2005 12/31/2008 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible 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 Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating: Performance (if any) Potential Problem Quality at Entry Program at any time No None (QEA): (Yes/No): Problem Program at any Quality of Yes Satisfactory time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Agricultural marketing and trade 25 25 Central government administration 10 10 Crops 65 65 Theme Code (as % of total Bank financing) Debt management and fiscal sustainability 33 33 Land administration and management 17 17 Rural policies and institutions 33 33 State enterprise/bank restructuring and privatization 17 17 E. Bank Staff Positions At ICR At Approval Vice President: Philippe H. Le Houerou Johannes F. Linn Country Director: Keiko Sato Ajay Chhibber Sector Manager: Dina Umali-Deininger Joseph R. Goldberg Program Team Leader: Holger A. Kray John D. Nash ICR Team Leader: Holger A. Kray ICR Primary Author: Joseph R. Goldberg F. Results Framework Analysis Program Development Objectives (from Project Appraisal Document) The primary development objective of the Agricultural Reform Implementation Project (ARIP) is to help implement the Governments agricultural reform program, which is aimed at dramatically reducing artificial incentives and government subsidies, and substituting a support system that will give agricultural producers and agro-industry ii incentives to increase productivity in response to real comparative advantage. At the same time, the project is designed to mitigate potential short-term adverse impacts of subsidy removal, and facilitate the transition to efficient production patterns. Aside from promoting allocative efficiency, the reforms to be implemented are necessary for fiscal stabilization. The agricultural policy reforms are supported in part financially by the Bank under the Economic Reform Loan (ERL). Revised Program Development Objectives (if any, 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 Increase of real value added in agriculture (net of subsidies) at target rate of Indicator 1 : 3% per annum 27.3 billion TL in Value 21.2 billion YTL real 2001 prices; 26.1 billion YTL (quantitative or (quadrillion old TL) in 3.99% avrg. in 2001 prices Qualitative) real 2001 prices increase per annum over project term Date achieved 12/31/2001 12/31/2008 12/31/2008 Comments (incl. % achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Share of farmers registered in National Register of Farmers and receiving Indicator 1 : Direct Income Support (DIS) Almost 100% of Value EOP target is 95% 2.75 eligible and (quantitative or 0 of 3.1 million registrable farms Qualitative) farmers are registered. Date achieved 12/31/2000 12/31/2008 12/31/2008 Comments Target value as established in 2000 a) overestimated total number of eligible (incl. % farmers and b) did not anticipate structural change. achievement) Indicator 2 : Agricultural Sales Cooperatives Unions (ASCUs) which have been iii restructured or ceased operations by end of project. 10 restructured, 1 ceased operations, 4 Value All 16 restructured implementing (quantitative or 0 or ceased restructuring plans, Qualitative) operations 1 show little
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