The World Bank Report No: ISR3230 Implementation Status & Results Tajikistan Public Disclosure Copy Cotton Sector Recovery Project (P098889) Operation Name: Cotton Sector Recovery Project (P098889) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Last Modified Date: 03-Jun-2011 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 30-Dec-2010 Effectiveness Date 28-Sep-2007 Revised Closing Date 31-Mar-2013 Actual Mid Term Review Date 25-Apr-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project development objective will be changed to "benefit cotton farmers and create the conditions for sustainablegrowthofcott o n production in low income areas of Tajikistan through improved policy environment an 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 Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The project is steadily moving towards achieving its development objectives. Important policy reforms have been achieved and improvements have been recorded with increased farmers' freedom to choose crops, ginneries and investors, and an increasing number of farmers receiving 80% and above of equivalent world market price levels. Five subsidiary Page 1 of 4 The World Bank Report No: ISR3230 loans worth USD5 million have been disbursed through two local participating financial institutions (PFIs) and all loans have been repaid by participating ginneries ahead or on- schedule. 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 3000.00 12000.00 20000.00 their cotton output Date Date Date 04-May-2007 25-Apr-2011 31-Mar-2013 Type Unit of Measure Comment Comment Comment Custom Indicator Number This is estimated for 2010-2011 As indicated in the comparable season assuming that 18,000 farm survey data farms planted and harvested cotton out of 22,528 farms registered in 18 cotton growing districts of Katlon Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Policy Advisor in place, collaborating actively with staff of President#s Policy Advisor not in place Policy Advisor has been in place Policy Advisor in Place Office and has prepared several policy Date Date notes and important policy reforms 04-May-2007 have been achieved. A high-level 31-Mar-2013 Type Unit of Measure Comment national agrarian conference was Comment Custom Indicator Text organized in April 2011. I Public Disclosure Copy Date 25-Apr-2011 Comment Six working groups have been established and are working on agricultural reform. This has helped move the reform agenda. Page 2 of 4 The World Bank Report No: ISR3230 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Termination of the policies that support local processing and marketing 70% of farmers reporting free in 72% were free to choose financing 90% of farmers reporting free in monopsonies and restrict farmer ability to use their land freely their choice of financing sources; sources; 65% were free to choose their choice of financing sources; 65% of farmers report that they where to gin; 52% were free to 80% of farmers report that they are free to choose the gin fortheir choose how much land to allocate are free to choose the gin fortheir Type Unit of Measure Sub-Type cotton crop; to different crops cotton crop; Custom Indicator Text Breakdown 52% of farmers report that the Date 75% of farmers report that the local government does not local government does not prescribe what area should be 25-Apr-2011 prescribe what area should be allocated to cotton. Comment allocated to cotton. Date Progress is based on Dec. 08-Nov. Date 04-May-2007 09 comparison. The uneven 31-Mar-2013 performance can be explained y Comment methodological differences. A Comment follow up survey is recommended by end of 2011. Indicator Baseline Current End Target Indicator Name Value Value Value Improved access to finance through the establishment of a revolving Not yet established The scheme has been established Credit line fully utilized credit line for post harvest finance for cotton in selected project area and has worked and disbursed all Date Date the budgeted 5 million for 2010 14-Dec-2009 31-Mar-2013 Date Type Unit of Measure Comment Comment 25-Apr-2011 Custom Indicator Text The establishment of the credit line was introduced at the time of of Comment restructuring of the project in Dec. The financing scheme is in place 2009 and working. Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value 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 31-May-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date Page 3 of 4 The World Bank Report No: ISR3230 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 Public Disclosure Copy Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P098889 IDA-43140 Effective XDR 10.00 10.00 0.00 7.64 2.36 76.00 Disbursement Graph Key Decisions Regarding Implementation The Seed Cotton Financing Guidelines (SCFG) as well as the Subsidiary Loan Agreements (SLA) need to be amended in order to (i) include non-cotton agricultural activities Public Disclosure Copy (agricultural inputs and machinery, food processing, agricultural services and other activities) in the financing scheme as initially envisaged after the first two years (2009 and 2010), and (ii) modify the payment scheme under the SCFG to make it more flexible while maintaining sufficient bank and Project Management Unit (PMU) oversight of the use of funds and cotton prices. The former revision will require the introduction of a minor change in the Financial Agreement through a corrigendum to reflect it. The PMU needs to recruit a local NGO to monitor on a weekly basis throughout the harvest season, the seed cotton prices at the farm level, ease of payment and ability to sell to the highest bidder. Restructuring History Level one Approved on 09-Feb-2010 Related Projects P116013-POPs Elimination, Mitigation and Site Management Project Page 4 of 4