The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Nepal Livestock Sector Innovation Project (P156797) SOUTH ASIA | Nepal | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 10 | ARCHIVED on 23-Sep-2021 | ISR47760 | Implementing Agencies: Government of Nepal, Ministry of Agriculture and Livestock Development Key Dates Key Project Dates Bank Approval Date: 07-Dec-2017 Effectiveness Date: 28-Feb-2018 Planned Mid Term Review Date: 26-Apr-2021 Actual Mid-Term Review Date: 26-Jul-2021 Original Closing Date: 30-Jun-2023 Revised Closing Date: 30-Jun-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objectives (PDO) are to increase productivity, enhance value addition, and improve climate resilience of smallholder farms and agro-enterprises in selected livestock value-chains in Nepal. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component E: Contingency Emergency Response Component Component A: Strengthening Critical regulatory and Institutional Capacity:(Cost $5.00 M) Component B: Promoting sector innovation and modernizing service delivery:(Cost $40.00 M) Component C: Promoting Smallholder Inclusive Value Chains for Selected Livestock Commodities:(Cost $30.00 M) Component D: Project Management and Knowledge Generation:(Cost $5.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Progress towards the PDO indicators Considerable progress has been made on the result indicators by the MTR with some already achieving midline target and some surpassing the end target. Progress include: (a) increase in average productivity of milk (combined average for cow and buffalo) is already 50 percent over the baseline value against the end target of 40 percent productivity increase over the baseline) (b) adoption of improved technology stands at 24 percent against planned 75 percent; (c) 115,000 households (57.5 percent) now have access to agricultural assets and services , and extension services against the end target of 200,000; (d) 25.9 million animals have been vaccinated against FMD and PPR against planned 14.6 million (171 9/23/2021 Page 1 of 10 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) percent against the end target); (e) 303 business proposals from farmer groups and cooperatives are ready to be implemented by October 2021 against planned 500 (60 percent achieved against the end target); (f) 4,202 beneficiaries have been trained through 147 events in various skills against 5,500 planned and an additional 3,450 staff members trained on various skills through 118 events; and (g) 60 dairy cooperatives staff have undergone skill-based training on dairy diversification (a Council of Technical Education and Vocational Training (CTEVT) approved course [550 hours]. Despite the challenges of COVID-19 slow implementation progress in the first two years, results achieved in the last one year in terms of PDO indicators and component wise progress the ratings towards the likelihood of achieving the Project Development Objective (PDO) has been upgraded from Moderately Unsatisfactory to Moderately Satisfactory. The rating for Implementation Progress will be upgraded to Moderately Satisfactory (thus further justifying the upgrade in ratings) once the restructuring has been completed which would include a proactive cancellation of US$20 million for which an official request from MOF has already been received. Restructuring is expected to be completed by the first week of October 2021 further justifying the upward upgrading of the PDO indicator and IP. Progress on agreed actions from the last ISR Of the 12 agreed actions from the previous review, nine have been completed. The completed activities that have substantially contributed to l progress include (a) submission of formal request for restructuring; (b) call for matching grant proposals for the private entrepreneurs; (c) finalization of the baseline survey report; (d) completion of an annual household survey (AHS); (e) due diligence of safeguard issues in the livestock service center (LSC) in Madi and livestock market in Ratnanagar in Chitwan, (f) beneficiary survey; (g) development of strategies on animal nutrition, livestock breed improvement, road maps for foot and mouth disease (FMD), and peste des petits ruminants (PPR); and (h) updating of the Project Information Management System (PIMS). The three outstanding actions are (a) procurement of Murrah bulls and buffaloes, (b) completion of livestock management information system (LMIS) and (c) securing approval for the Act and Policies financed by the project. Component wise progress: Component A: Key progress include: (a) formulation of the Infectious Disease Control Act, (b) Animal Health Policy, (c) Animal Breeding Policy and Strategy, (d) Road Maps for the prevention and control of FMD and PPR, (e) Animal Nutrition Strategy, (f) One Health Action Plan, and (g) Animal Identification and Traceability Strategy. All these acts, policies, and strategies are currently under review by the provincial and federal authorities for their opinion and endorsement. Project support to updating/formulation of Veterinary Council Act, Veterinary Drug Act, and Meat and Slaughterhouse Act have been dropped as these are now being supported by the MoALD with its own funding. However, the project will support the implementation of these Acts and Policies. Capacity Enhancement Needs Assessment (CENA) has been completed. A total of 4,202 farmers/producers (including 1,159 female) were trained on various skills through 147 events in addition to 3,450 staff members (436 female) through 118 events. On the LMIS, due to complexity and shortage of time the project will first develop and test a prototype and upscale it based on the experience. A deadline of October 31, 2021 has been given to complete the prototype beyond which IDA funding will not be made available. However, should the project be successful in developing the prototype by end of October 2021 the Bank may provide financing equipment and capacity development, within the budget of US$ 160,000. Master plan for livestock sector will not be financed by the project as the Government will prepared it with its own resources. Component B: The Project has been able to (a) mobilize and strengthen 1,048 groups (768 farmer groups (FG) and 280 cooperatives); (b) complete 20 construction works, with 16 under construction; (c) construct the NVC building; bull mother sheds in Pokhara and Lahan; goat sheds in Buditoda farm; 3 veterinary laboratories and 8 quarantine offices, and equipping them with accessories; (d) develop standard operating procedures for semen collection center, milk collection stations, and slaughterhouse facilities; (e) establish cold rooms in all the seven provinces for storage of vaccines; and (f) vaccinate 2.65 million cattle against FMD and 7.86 million small ruminants against PPR in FY 2020/21. A total of 550,269 animals received artificial insemination in FY20/21, reaching a cumulative total of 1,750,607 animals. As part of the feed improvement program, 391 metric tons of forage seeds of different varieties were procured and distributed to beneficiaries for planting on around 3,272 ha with an expected production of 150,000 metric tons of biomass. Similarly, distribution of forage seeds and saplings to various farmers is expected to cover 148 ha producing an estimate 34,946 metric tons of biomass, according to the NLSIP report. A total of 4,202 farmers have been trained through 147 events of which 27.5 percent were female. The project’s support on chyangra value chain could not progress due to the travel ban imposed on travel to Mustang and Manang districts where chyangra goats are raised. The difficulty of supporting chyangra value chain, mobilizing and supporting 3000 producer groups, area under fodder and forage production and the number of nurseries to be established were brought to the attention of the MTR for revision. Component C: As of August 2021, the project had established 34 stakeholder dialogue platform with the purpose of facilitating producer-buyer dialogue and alliance, coordination between beneficiaries and service providers, enhancing coordination between the private and public sectors and awareness raising. The project has established 34 stakeholder dialogue platforms against planned 25. On funding of business proposals under matching grant support the project has been able to select 303 proposals for financing under Calls 1 and 2 from farmer groups and cooperatives. An additional 2,409 proposals were received from private sector entrepreneurs under the third call made on February 1, 2021 which are now under review. To ensure timely delivery it was agreed that the proposals under Calls 1 and 2 will be financed by October 31,2021 and Call 3 by February 28, 2022. There has been a delay in rolling out food safety activities, to be implemented in coordination with the Department of Food Technology and Quality Control (DFTQC). The project is advised to sign a memorandum of understanding with the DFTQC for implementing food safety activities by October 31, 2021. Failure to meet this deadline would risk non financing of these activities due to time constraint. Citizen Engagement (CE). CE activities are embedded in the project design to enhance citizen participation in policy dialogues, boost a demand- driven approach to livestock services, and overall to facilitate meaningful consultations with farmers/various producer's groups, cooperatives, livestock sector experts, input suppliers, government stakeholders, and so on, where needed. Once such activity is the GRM. The project has 9/23/2021 Page 2 of 10 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) established a three-tier GRM (at the district, cluster, and center levels). The project has also been regularly reporting on grievance handling and it appears to be functioning. However, to ensure effective and efficient functioning of the GRM throughout the project period, functioning of the GRM, including information dissemination works, should be regularly assessed and revisited. The project has also established 34 Stakeholder Dialogue Platforms against the planned 25 at three levels (national, provincial, and district levels). While these platforms seem to have contributed to enhance participatory planning, knowledge sharing, provision of support services, and access to project benefits, it is noted that participation of women in the platform meetings is can further be improved from current 11 percent. To ensure that these platforms reach all segments of the society the project is advised to ensure representation from all members of the society/community including vulnerable and marginalized members of the community. The project has also ascertained a level of satisfaction with relevance, timeliness, and effectiveness of services provided by the project for the sector. The recent beneficiary satisfaction survey reveals an average satisfaction rate of 28.4 percent against the target of 35 percent. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and High Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Substantial Substantial Other Moderate Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Productivity of targeted livestock commodities (milk, goat meat, chyangra) among beneficiaries IN01024490 ►Percentage increase of average milk production per cow/buffalo (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 545.00 0.00 991.00 40.00 Date 14-Nov-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 9/23/2021 Page 3 of 10 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Baseline for cow milk is 450 liter per cow per year while it is 640 liters for buffalo. Average of these two is 545 liters per animal per year. Progress is also reported in combined terms which comes to 991 liters per cow and buffalo combined or 80 percent increase over the baseline already. The reason for this is that Comments: the baseline figures are low for the national level. Productivity of both cow and buffalo milk is, however, provided separately below for ease of reference. IN01024555 Percentage increase of average milk production for cow (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 450.00 -- 1,232.00 40.00 Date 14-Nov-2017 -- 30-Jul-2021 30-Jun-2023 IN01024556 Percentage increase of average milk production for per buffalo (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 640.00 -- 749.00 40.00 Date 14-Nov-2017 -- 30-Jul-2021 30-Jun-2023 IN01024492 ►Percentage increase in offtake rate expressed as carcass weight for goats (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 0.00 3.90 40.00 Date 31-Dec-2020 26-Jan-2021 30-Jul-2021 30-Jun-2023 IN01024494 ►Percentage increase in Chyangra wool production (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 150.00 0.00 135.00 80.00 Date 14-Nov-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 Yr 1 (baseline) - 0; Yr 2 -10%; Yr 3 - 30%; Yr 4- 50%; Yr 5-80 Due to remoteness of Manang and Mustang districts which are accessible only 7 to 8 months in a year and loss of nearly 2 years time due to COVID-19 pandemic the progress is in negative terms. Owing to Comments: the complexity and difficulty of supporting this value chain, the MTR recommends dropping of this indicator from the RF while the project will continue to maintain its support. Increased sales of value added products in targeted value chains through increase in production IN01024489 ►Increased sales value in targeted value chains (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.20 30.00 9/23/2021 Page 4 of 10 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Date 03-Jul-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 Due to the lack of baseline data at appraisal, household survey data collected in December 2020 has been used as p income of NPR 396,000 for milk per household per year and NPR 55,000 for goat. No baseline could be collected for these two values, average income comes to NPR 225,500. Progress is NPR 401,000 from milk and NPR 60,000 from average is NPR 230,500. Using NPR 225,500 as baseline value, the progress is 2.2 percent. The chyangra part will b Comments: indicator in the revised RF at the time of restructuring for the reasons already described above. . Farmers Adopting Climate Smart Agricultural Technology by target farmers IN01024491 ►Farmers adopting improved agricultural technology (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14.75 24.24 75.00 Date 14-Nov-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 IN01024493 Farmers adopting improved agricultural technology - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.64 41.13 45.00 Farmers reached with agricultural assets or services IN01024495 ►Farmers reached with agricultural assets or services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 76.95 115.10 200.00 Date 14-Nov-2017 26-Jan-2021 26-Jul-2021 30-Jun-2023 IN01024496 Farmers reached with agricultural assets or services - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 42.00 46.70 45.00 Intermediate Results Indicators by Components Component A: Strengthening Critical regulatory and Institutional Capacity IN01024498 9/23/2021 Page 5 of 10 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) ►Livestock Master Plan updated and endorsed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 There has been delay in this activity pending government approval. The Government of Nepal (GoN) has decided to carry out this activity on its own using its own resources. Thus, the project will not finance this Comments: activity and therefore remove this activity/indicator from the RF during restructuring of the project. IN01024501 ►Client days of training provided (of which female) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4,596.00 8,933.00 5,500.00 Date 14-Nov-2017 26-Jan-2021 26-Jul-2021 30-Jun-2023 IN01024613 Client days of training provided (female) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 968.00 1,925.00 Date 14-Nov-2017 -- 30-Jul-2021 30-Jun-2023 IN01024504 ►Livestock Management Information System (LMIS) developed and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 As reported earlier, the scope of developing LMIS will be reduced to development and testing of a prototype in one P this is a huge undertaking and the capacity of local institutions are still very weak, the national-level LMIS cannot be d timeframe available for the project. From the progress so far and the additional work needed to complete this task wh lifetime of the project, the MTR recommended stopping project financing on software development beyond Septembe Comments: Component B: Promoting sector innovation and modernizing service delivery IN01024499 ►Number of Producer Organizations/Cooperatives newly established or formalized and offering an increased range of services to members. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 835.00 1,048.00 3,000.00 9/23/2021 Page 6 of 10 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Date 14-Nov-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 Is a continuous activity. Comments: IN01024502 ►Incremental number of animals vaccinated against PPR and FMD through the project - PPR for small ruminants (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,065.00 10,510.00 14,600.00 Date 03-Jul-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 In cumulative terms the project has so far vaccinated 3.72 million heads of cattles against FMD and 21.24 million heads of ruminants against PPR giving a total of 24.96 million. The already exceeds the target as Comments: the project is now supporting the national initiative. IN01024616 No of cattle vaccinated with FMD (Number (Thousand), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 2,650.00 5,000.00 Date 14-Nov-2017 -- 30-Jul-2021 30-Jun-2023 IN01024617 No of small ruminants vaccinated against PPR (Number (Thousand), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 7,860.00 9,600.00 Date 14-Nov-2017 -- 30-Jul-2021 30-Jun-2023 IN01024505 ►Beneficiary satisfaction rate with relevance, timeliness and effectiveness of sercies provided by the project for the livestock sector (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 19.00 0.00 28.40 75.00 Date 03-Jul-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 Progress reported based on December 2020 household survey results. Comments: IN01024507 Of which Female (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 29.00 75.00 Date 03-Jul-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 Component C: Promoting Smallholder Inclusive Value Chains for Selected Livestock Commodities IN01024497 9/23/2021 Page 7 of 10 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) ►Dialog platform between actors of the targeted value chains established and operational at district level (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 34.00 25.00 Date 03-Jul-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 The number of stakeholder platforms to be supported would need to be brought down to 29 (one for each of the 28 districts and 1 at the higher level) and their scope of work needs to be confined to supporting the Comments: producer and buyer alliance formation and support. IN01024500 ►Number of business plans financed by the project on a matching grant basis (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 500.00 Date 03-Jul-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 A total of 808 proposals have been received by the project through two calls. Of these 303 proposals have managed to secure loans from the financing institutions. An additional 2,409 concept notes have been received from Call 2 from private entrepreneurs, which are now under review. Given the time constraint Comments: especially in financing proposals under Call 3 the MTR recommends revising the target downward to 350 business plans against the planned 500 IN01024503 ►Share of project beneficiaries with a livestock risk insurance policy (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 03-Jul-2017 26-Jan-2021 26-Jan-2021 30-Jun-2023 The project is seriously lagging on this activity. In the remainder of the project period the PMU and DLSUs are advised to intensify this activity. It is hoped that the development of 159 insurance agents will Comments: contribute to this. Component D: Project Management and Knowledge Generation IN01024506 ►Grievances registered related to delivery of project benefits satisfactorily addressed. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 61.00 40.00 75.00 Date 03-Jul-2017 26-Jan-2021 30-Jul-2021 30-Jun-2023 Out of 48 grievances registered 19 were responded to. The rest are in the process of being addressed. Comments: Performance-Based Conditions 9/23/2021 Page 8 of 10 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156797 IDA-61490 Effective USD 80.00 80.00 0.00 13.00 67.53 16% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156797 IDA-61490 Effective 07-Dec-2017 21-Jan-2018 28-Feb-2018 30-Jun-2023 30-Jun-2023 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC 9/23/2021 Page 9 of 10 The World Bank Implementation Status & Results Report Nepal Livestock Sector Innovation Project (P156797) Restructuring History Level 2 Approved on 19-Dec-2018 ,Level 2 Approved on 19-May-2020 Related Project(s) There are no related projects. 9/23/2021 Page 10 of 10