The World Bank Report No: ISR146 Implementation Status & Results Tajikistan Public Disclosure Copy Cotton Sector Recovery Project (P098889) Operation Name: Cotton Sector Recovery Project (P098889) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Last Modified Date: 15-Dec-2010 Country: Tajikistan Approval FY: 2007 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Center for Managing Projects on Cotton Farms Debt Resolution and Sustainable Cotton Sector Developme Key Dates Board Approval Date 30-May-2007 Original Closing Date 31-Mar-2013 Planned Mid Term Review Date 18-Apr-2011 Last Archived ISR Date 20-Feb-2010 Effectiveness Date 28-Sep-2007 Revised Closing Date 31-Mar-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project objective is to benefit cotton farmers and create the conditions for sustainable growth of cotton production in low income areas of Tajikistan through an improved policy environment and better access to finance Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Debt Resolution 0.00 Support for Policy Analysis and Reform 0.70 Cotton Supply Chain Development 0.00 Project Implementation 1.40 Public Disclosure Copy Agriculture Finance and Producer Support 12.90 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The project is making progress towards achieving its development objective. Important policy reforms have been achieved. Acceptance of the need for "freedom to farm" and Page 1 of 4 The World Bank Report No: ISR146 reduction of local government intervention in farmer decisions has been advanced. Five sub-loans totaling about US$5million have been approved this cotton harvest season with the result of creating a more active and open competition among cotton ginneries as they will be paying farmers immediately upon receiving seed cotton using project funds. Public Disclosure Copy Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value 20,000 farmers receiving at least 80% of the world market price for 8500.00 8500.00 20000.00 their cotton output Date Date Date 01-Feb-2010 09-Nov-2010 31-Mar-2013 Type Unit of Measure Comment Comment Comment Custom Indicator Number Extrapolation from November- The results of the next survey is As indicated in the comparable December 2009 farm survey expected for end December 2010 farm survey data Indicator Baseline Current End Target Indicator Name Value Value Value Policy measures conducive to producer choice rather than public 70% of farmers reporting free in 70% of farmers report freedom of 90% of farmers reporting free in coercion, and competitive markets for buying and processing cotton. their choice of financing sources; choice of financing sources; their choice of financing sources; That is: termination of the policies that support local processing a 65% of farmers report that they 65% of farmers report free to 80% of farmers report that they are free to choose the gin fortheir choose the gin for their cotton crop; are free to choose the gin fortheir Type Unit of Measure cotton crop; 52% of farmers report free to use cotton crop; Custom Indicator Text 52% of farmers report that the their land 75% of farmers report that the local government does not Date local government does not prescribe what area should be prescribe what area should be allocated to cotton. 09-Nov-2010 allocated to cotton. Date Comment Date 01-Feb-2010 The results of the next survey is 31-Mar-2013 expected for end December 2010 Comment Comment Public Disclosure Copy Extrapolation from November- December 2009 farm survey Intermediate Results Indicators Page 2 of 4 The World Bank Report No: ISR146 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Policy Advisor in place, collaborating actively with staff of President#s Policy Advisor is in place Policy Advisor is actively Policy Advisor in Place Office collaborating with his counterparts Date Date 01-Jul-2009 Date 31-Mar-2013 Type Unit of Measure Comment 09-Nov-2010 Comment Custom Indicator Text Comment Important policy reforms have been Six working groups have been achieved. established and are working on agricultural reform. It is expected that the agrarian strategy will be completed by end of December 2010. Some policy papers have been prepared. Indicator Baseline Current End Target Indicator Name Value Value Value Improved access to finance through the establishment of a revolving Not yet established Credit line has been established Credit line fully utilized credit line for post harvest finance for cotton in selected project area and is working. Two banks have Date Date participated in the 2010 post- 01-Feb-2010 harvest finance activity for about 31-Mar-2013 Type Unit of Measure Comment $5million. Comment Custom Indicator Text Date 09-Nov-2010 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Public Disclosure Copy Volume of credit lines 0.00 5.00 10.40 Type Unit of Measure Sub-Type Custom Indicator Amount(USD) Supplemental Data on Financial Performance (as of 09-Nov-2010) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P098889 IDA-43140 Effective 30-May-2007 29-Jun-2007 28-Sep-2007 31-Mar-2013 Page 3 of 4 The World Bank Report No: ISR146 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P098889 IDA-43140 Effective XDR 10.00 10.00 0.00 6.31 3.69 63.00 Disbursement Graph Key Decisions Regarding Implementation Despite the progress being made on the post-harvest credit line component with about US$5 million being disbursed, it is crucial that the rules set in the Seed Cotton Finance Guidelines (SCFG) and the Sub-credit Agreement be enforced as long as they have not been revised. The Project Management Unit (PMU) needs to accelerate the recruitment of both the international finance adviser and monitoring and evaluation specialist who have recently Public Disclosure Copy resigned from the project. This will allow a close monitoring of the post-harvest credit line activities. The Government needs to pursue efforts for phasing out its interventions in the cotton sector. Restructuring History Level one Approved on 17-Feb-2010 Related Projects P116013-POPs Elimination, Mitigation and Site Management Project Page 4 of 4