The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Sustainable Agriculture Transformation Project (P145055) EAST ASIA AND PACIFIC | Vietnam | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 11 | ARCHIVED on 18-Aug-2020 | ISR43005 | Implementing Agencies: Ministry of Agriculture and Rural Development, Ministry of Agriculture and Rural Development, SOCIALIST REPUBLIC OF VIETNAM, Ministry of Agriculture and Rural Development Key Dates Key Project Dates Bank Approval Date: 30-Jun-2015 Effectiveness Date: 03-Dec-2015 Planned Mid Term Review Date: 03-Dec-2018 Actual Mid-Term Review Date: 03-Dec-2018 Original Closing Date: 31-Dec-2020 Revised Closing Date: 31-Dec-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve farming practices and value chains in the targeted project areas, and promote institutional strengthening of relevant public agencies in effective support to implementation of the Agricultural Restructuring Plan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: Institutional Strengthening to Support Agricultural Transformation:(Cost $10.00 M) Component B: Supporting Sustainable Rice-Based Systems:(Cost $224.10 M) Component C: Supporting Sustainable Coffee Production and Rejuvenation:(Cost $100.90 M) Component D: Project Management:(Cost $13.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Moderate Implementation Status and Key Decisions The project is on track to achieving all the outcome indicators, as described in detail in the Aide Memoire:  Cumulatively, the project has reached 860,196 direct project beneficiaries (surpassing the end project target of 800,000), of which 50% are female.  The area under sustainable farming practices has reached 148,738 ha for rice (representing 99.2% of the end target of 150,000 ha) and 49,403 ha for coffee (representing 98.8% of the end target of 50,000 ha). 8/18/2020 Page 1 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055)  Targeted rice and coffee farmers increased their net profit per ha by 26.4% and 15.8%, on average, respectively (against the end of project target of 20%).  The project has resulted in GHG emission reduction amounting to 1,172,439 tons of CO2 (compared to the target of 1,000,000 tons).  The DOP under MARD has completed the assessment of public service delivery and 3 out of 4 departments of MARD and 10 out of 10 provincial departments are satisfactory. However, there is need to closely monitor implementation of the agreed actions to speed-up implementation and disbursement in the next six months. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Moderate Macroeconomic -- Substantial Moderate Sector Strategies and Policies -- Moderate Low Technical Design of Project or Program -- Substantial Low Institutional Capacity for Implementation and -- Moderate Low Sustainability Fiduciary -- Substantial Moderate Environment and Social -- Moderate Moderate Stakeholders -- Substantial Low Other -- -- -- Overall -- Substantial Moderate Results PDO Indicators by Objectives / Outcomes The PDO Indicators IN00877826 ►PDO1. Number of project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 800,779.00 860,196.00 800,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Targeted exceeded. Comments: IN00877827 8/18/2020 Page 2 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 50.00 IN00877828 ►PDO2. Farming area under sustainable farming practices: a) rice production (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 130,192.00 148,387.00 150,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 On track. Comments: IN00877829 b) Coffee production (Hectare(Ha), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40,123.00 49,403.00 50,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 IN00877830 ►PDO3. Increase in net profits per hectare among targeted farmers: a) rice production (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18.40 26.40 20.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 The increase in net profits are mainly thanks to the adoption of improved farming practices which help reduce production costs (i.e., reduction in seed rates, fertilizers, pesticides, water pumping, post-harvest losses) and improved farm product quality (i.e., using certified seeds and high quality rice varieties). The profit reported in June 2019 increased a bit compared to that in December 2019. This may be due to an increase in the price of rice due to a slight surge in export demand due to Covid-19 related stocking-up. Vietnam’s 5% Broken Rice Price in June 2020 was US$449.46 per ton which is about 37% higher than the price in November 2019 which was US$ 328.24 per ton. Comments: Coffee productivity and price 2018 were lower than those in 2017 due to the bad weather and low prices in export markets. Therefore, profits for coffee farmers in 2018 were much reduced compared to those in 2017. Prices have continued to decline in 2019 and 2020 and this explains why the average net profit margin has not improved much since the last mission in November/December 2019. Thanks to adopting improved farming practices, the project farmers were less affected the farmers outside the project areas. IN00877831 b) coffee production (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.70 15.80 20.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 IN00877832 ►PDO4. Reductions in GHG emissions from rice farming in the project area (Tones/year, Custom) 8/18/2020 Page 3 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 943,906.00 1,172,439.00 1,000,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 On average, in the 1M5R farming system, GHG emissions were reduced about 11 tons of CO2 equivalent per year per hectare compared to the traditional practices. It is estimated that GHG emission reduction in Comments: the 3R3G system would be about 30% of that in the 1M5R farming system. IN00877833 ►PDO5. Improved quality of service delivery by MARD and DARDs in support of project implementation measured by performance scorecard: a) MARD (departments) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 4.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Assessment just completed and preliminary results show that 3/4 departments of MARD and 10/10 Comments: selected provinces have satisfactory ratings on public service delivery. IN00877834 b) DARDs (provinces) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 10.00 10.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Overall Comments PDO Overall, the project continues to make steady progress towards achieving all the key performance indicators. The project has achieved (and in some cases over-achieved) all the key performance indicators. Given the consistent achievement of results, the mission recommended upgrading the Project Development Objective (PDO) rating to Satisfactory (S) and maintain the Implementation Performance (IP) rating also at Satisfactory (S) based on the steady progress on both the PDO and intermediate outcomes. Intermediate Results Indicators by Components Component A: Institutional Strengthening to Support Agricultural Transformation IN00877835 ►A.1: Improved performance in budget execution by MARD measured by a reduction in the discrepancy between budget allocations and end-of-year budget out-turns (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 45.00 18.00 20.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 On track. During the 9th mission actual difference between budget plan and execution was not estimated Comments: because the budget out-turn numbers had not been released, but it is expected to continue to narrow. IN00877839 8/18/2020 Page 4 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) ►A.2: An MTEF covering MARD’s investment and recurrent expenditure and MTEFs for DARDs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Target achieved. MTEF for MARD has been developed. MTEFs for Lam Dong and Dong Thap have also Comments: been completed. IN00877843 ►A.3: Adoption of improved subsector ARPs in selected MARD departments (departments) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 3.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Target exceeded. The ARPs for the whole sector and for 6 subsectors (i.e. crops, livestock, fisheries, Comments: forestry, agro-forestry-fisheries processing and irrigation) have been prepared and approved by MARD. Component B: Supporting Sustainable Rice-Based Systems IN00877836 ►B.1: Area of rice farming under sustainable farming practices as measured by reductions in pesticide and fertilizer use (ha) (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 167,854.00 187,894.00 150,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Target exceeded. Comments: IN00877840 ►B.2: Area of sustainable rice farming applying improved farming and post harvest packages to reduce water use and post harvest losses each by 30% (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 89,892.00 100,418.00 75,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Target exceeded. Comments: IN00877844 ►B.3: Area of sustainable rice farming under contract farming arrangements with agribusinesses (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 34,666.00 56,554.00 50,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Comments: Target exceeded. 8/18/2020 Page 5 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) IN00877846 ►B.4: Investments by project-supported agribusinesses in additional milling/ processing capacity (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18,840,000.00 23,980,000.00 40,000,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 The present demand for the rice credit line by ABs for upgrading milling/processing capacity was low than expected at appraisal but has picked up recently mainly due to one large loan processed by one of the Comments: PFIs (SHB). Component C: Supporting Sustainable Coffee Production and Rejuvenation IN00877837 ►C.1: Coffee area adopting sustainable farming practices as measured by reductions in presticide and fertilizer use: (a) Existing Plantations (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 32,285.00 37,336.00 40,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Target has been exceeded. Total area of rejuvenation to date is 16,629 ha, of which 10,229 ha fully adopted sustainable farming practices (i.e. certified planting materials, proper land preparation, use of organic fertilizers, appropriate inter-cropping, and farm records); the remaining areas partially adopted these criteria. Comments: On rejuvenation the target has been exceeded. Total area of rejuvenation to date is 16,629 hectares of which 10,299 hectares fully adopted sustainable farming practices (i.e. 35 planting materials, proper land preparation, the use of organic fertilizer appropriate inter-cropping and farm records). The remaining area partially adopted these criteria. IN00877841 (b) Rejuvenation (Hectare(Ha), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10,299.00 13,137.00 10,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 IN00877845 ►C.2: Coffee area adopting advanced water saving irrigation technologies and reduce water use by at least 20% in the project areas (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 39,253.00 41,165.00 22,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Target exceeded. Comments: IN00877847 ►C.3: Area replanted with certified planting materials in the project areas (Hectare(Ha), Custom) 8/18/2020 Page 6 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 16,629.00 18,112.00 7,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 Target exceeded. Comments: IN00877848 ►C.4: Number of pilot coffee-based landscape management plans developed in project areas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 NIAAP conducted surveys in all 5 CH provinces and carried out consultations with local stakeholders to prepare the landscape-based management plans. The progress is on track and expected to be completed Comments: by December 2020. Component D: Project Management IN00877838 ►Farmers reached with agricultural assets or services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 126,850.00 126,850.00 170,000.00 Date 04-Nov-2014 30-Nov-2019 30-Jun-2020 31-Dec-2020 On track Comments: IN00877842 Farmers reached with agricultural assets or services - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23,000.00 23,000.00 40,000.00 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P145055 IDA-57040 Effective USD 238.00 238.00 0.00 133.91 106.43 56% Key Dates (by loan) 8/18/2020 Page 7 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145055 IDA-57040 Effective 30-Jun-2015 09-Jul-2015 03-Dec-2015 31-Dec-2020 31-Dec-2020 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 8/18/2020 Page 8 of 8