The World Bank Implementation Status & Results Report Pernambuco Rural Economic Inclusion (P120139) Pernambuco Rural Economic Inclusion (P120139) LATIN AMERICA AND CARIBBEAN | Brazil | Agriculture Global Practice | IBRD/IDA | Investment Project Financing | FY 2012 | Seq No: 14 | ARCHIVED on 07-Dec-2018 | ISR33808 | Implementing Agencies: State of Pernambuco, SARA Key Dates Key Project Dates Bank Approval Date: 06-Mar-2012 Effectiveness Date: 23-Jul-2012 Planned Mid Term Review Date: 26-Oct-2015 Actual Mid-Term Review Date: 26-Oct-2015 Original Closing Date: 31-Jan-2019 Revised Closing Date: 31-Jan-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to promote rural business initiatives and expansion of rural access to water and other complementary infrastructure by supporting the Borrower’s Results Management Framework. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Investments in Rural Economic Inclusion:(Cost $24800.00 M) Complementary Rural Infrastructure:(Cost $38044.00 M) Project Management, Supervision, Monitoring and Evaluation:(Cost $11006.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions This ISR summarizes the main results observed during the monitoring meetings and supervision missions between July and August 2018. To date, the project "Pernambuco Rural Sustentavel - PRS" has funded 294 agreements with Family Producer Organizations (OPFs) and disbursed the equivalent to 79% of the loan. During these latest months, some of the main results achieved were: (i) concrete diagnosis of the situation of the agreements signed by ProRural; (ii) diagnosis of the subprojects' situation, including the licensing and evaluation of possible environmental impacts, regularization and correct application of the environmental legislation in 108 agreements; (iii) establishment of an engineering team to pre-evaluate the works that are being developed within the OPFs, (iv) change in the procurement team; (v) constant optimization of the system for monitoring and evaluation of project activities (Aroeira); (vi) elaboration and establishment of a management model for rural sanitation; and (vii) meeting between the State General 12/7/2018 Page 1 of 6 The World Bank Implementation Status & Results Report Pernambuco Rural Economic Inclusion (P120139) Counsel’s office (Procuradoria Geral do Estado – PGE, and with the State’s Audit Office (Tribunal de Contas do Estado – TCE) to align procedures carried out by ProRural. In August 2018, ProRural submitted a proposal for a 3rd project restructuring to extend the Closing Date by 14 months (from January 2019 to March 2020), plus an adequacy of the Results Matrix, a partial cancellation of resources in the amount of USD 5million, and reallocation of resources between categories of expenses and changes in the value of Categories of Expenditure / Components. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Low Low Other -- -- -- Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Promote rural business initiatives IN00587303 ►Beneficiary RPOs successfully inserted into LPAs. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 50.00 75.00 Date 25-Apr-2012 02-Apr-2018 17-Aug-2018 31-Jan-2019 "Successful insertion" into an LPA means the percentage of beneficiary RPOs who have achieved at minimum 4 of the 6 criteria listed below at 12 months after subproject conclusion: (i) Business Plan investments implemented; (ii) Financed investments are operational; (iii) Volume of production has Comments: reached a level of 80% of the Business Plan projection/forecast; (iv) Functioning accounting system; (v) Maintenance of a reserve fund for the financed investments; and, (vi) Sales being made to at least one non-institutional client. IN00647912 ►Increased in real gross sales value for beneficiary RPOs (Percentage, Custom) 12/7/2018 Page 2 of 6 The World Bank Implementation Status & Results Report Pernambuco Rural Economic Inclusion (P120139) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 10.00 20.00 Date 25-Apr-2012 -- 17-Aug-2018 31-Jan-2019 IN00647913 ►Beneficiary RPOs selling products to institutional or private markets after subproject conclusion (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 67.00 60.00 Date 27-Jun-2016 -- 17-Aug-2018 31-Jan-2019 This indicator was added to the Results Matrix on the 1st Restructuring of the project, approved on June Comments: 27, 2016. Promote expansion of rural access to water and other complementary infrastructure IN00587309 ►Rural households with access to “Improved Water Sources”, including 30% female headed and 5% belonging to vulnerable groups (IP or Quilombola) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 25,430.00 27,000.00 Date 27-Jun-2016 02-Apr-2018 17-Aug-2018 31-Jan-2019 IN00647921 ►Rural households with access to "Improved Sanitation Services", including 30% female headed and 5% belonging to vulnerable groups (IP or Quilombola) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1,845.00 3,000.00 Date 25-Apr-2012 -- 17-Aug-2018 31-Jan-2019 Number of families Comments: Intermediate Results Indicators by Components 1 - Investments in Rural Economic Inclusion IN00587304 ►Rural households benefiting directly from project interventions, including 30% women-headed and 5% belonging to vulnerable groups (IP or Quilombola). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,355.00 3,552.00 5,500.00 Date 25-Apr-2012 02-Apr-2018 17-Aug-2018 31-Jan-2019 (36% women and 23% vulnerable people Comments: IN00587306 12/7/2018 Page 3 of 6 The World Bank Implementation Status & Results Report Pernambuco Rural Economic Inclusion (P120139) ►Beneficiary RPOs, including 30% with women in specific management positions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 72.00 70.00 Date 27-Jun-2016 02-Apr-2018 17-Aug-2018 31-Jan-2019 65% women Comments: IN00587308 ►RPOs trained and/or using financial management instruments for their financed productive activities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 10.00 75.00 Date 27-Jun-2016 02-Apr-2018 17-Aug-2018 31-Jan-2019 The Actual (Current) has been corrected to 10%, different from the Actual (Previous) that was 50%, to Comments: reflect the Actual current, based on the technical audit undertaken by the project. IN00587310 ►Beneficiary RPOs with organized arrangements for the management, operation and maintenance of financed productive investments (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 55.00 13.00 70.00 Date 27-Jun-2016 02-Apr-2018 17-Aug-2018 31-Jan-2019 2 - Complementary Rural Infrastructure IN00587311 ►Beneficiary rural households using water supply investments for drinking water (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 85.00 80.00 90.00 Date 25-Apr-2012 02-Apr-2018 17-Aug-2018 31-Jan-2019 IN00587313 ►RPOs charging user fees for management and maintenance of financed water supply projects. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 64.00 95.00 Date 25-Apr-2012 02-Apr-2018 17-Aug-2018 31-Jan-2019 IN00587314 ►Rural water and sanitation subprojects concluded, including 30% of RPOs with women in specific management positions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 115.00 212.00 180.00 Date 27-Jun-2016 02-Apr-2018 17-Aug-2018 31-Jan-2019 12/7/2018 Page 4 of 6 The World Bank Implementation Status & Results Report Pernambuco Rural Economic Inclusion (P120139) (48% women and 37% vulnerable people) Comments: 3 - Project Management, Supervision, Monitoring and Evaluation IN00587315 ►Processing time between first subproject profile submission and release of first disbursement to RPO (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Processing time of initial Value 0.00 0.00 90% reduction round of Business Plans Date 30-Aug-2012 02-Apr-2018 17-Aug-2018 31-Jan-2019 The processing of new manifest of interest has been paused. Comments: IN00587316 ►MIS fully functional and producing all required products (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 27-Jun-2016 02-Apr-2018 02-Apr-2018 31-Jan-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120139 IBRD-81350 Effective USD 100.00 80.00 20.00 63.56 16.44 79% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120139 IBRD-81350 Effective 06-Mar-2012 18-Jun-2012 23-Jul-2012 31-Jan-2019 31-Jan-2019 Cumulative Disbursements 12/7/2018 Page 5 of 6 The World Bank Implementation Status & Results Report Pernambuco Rural Economic Inclusion (P120139) Restructuring History Level 2 Approved on 07-Jul-2016 ,Level 2 Approved on 04-Mar-2018 Related Project(s) There are no related projects. 12/7/2018 Page 6 of 6