The World Bank Implementation Status & Results Report Mozambique - Integrated Growth Poles Project (P127303) Mozambique - Integrated Growth Poles Project (P127303) AFRICA | Mozambique | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 12 | ARCHIVED on 03-Oct-2018 | ISR33271 | Implementing Agencies: Ministry of Economy and Finance (MEF), Government of Mozambique Key Dates Key Project Dates Bank Approval Date: 25-Apr-2013 Effectiveness Date: 23-Aug-2013 Planned Mid Term Review Date: 17-Oct-2016 Actual Mid-Term Review Date: 23-Nov-2016 Original Closing Date: 31-Oct-2019 Revised Closing Date: 31-Oct-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve the performance of enterprises and smallholders in the Zambezi Valley and Nacala Corridor, focusing on identified high growth potential zones (growth poles). Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Support for the Tete agribusiness growth pole in the Zambezi Valley:(Cost $35.00 M) Support for the Nacala Special Economic Zone in the Nacala Corridor:(Cost $44.00 M) Institutional development and capacity building:(Cost $8.00 M) Project implementation:(Cost $13.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Integrated Growth Poles Project (IGPP) was approved on April 25, 2013. The project is effective since August 23, 2013. The project lasts until October 31, 2019. Component 1: Support for the Tete agribusiness growth pole in the Zambezi Valley Sub-component 1A: Upgrading of local infrastructure: • The 215km roads rehabilitation to provide easier market access for the local producers in the agricultural rich area of Angonia and Tsangano is ongoing. Financial progress is at 25%. With the maintenance and improvements across the roads, it is already possible to travel at adequate speed. 10/3/2018 Page 1 of 6 The World Bank Implementation Status & Results Report Mozambique - Integrated Growth Poles Project (P127303) The contractor is implementing a set of social safeguards recommendations. It has also set up a grievance mechanism. The supervisor is closely monitoring these and the World Bank safeguard teams have also visited the site for further support. Sub Components 1B and 2B: Innovation and Demonstration Catalytic Fund (IDCF): • The Catalytic Fund has committed US$ 18 million, which leverage a private sector contribution of about US$ 17 million. The Catalytic Fund has signed eight grant agreements. Two companies with approved projects gave up on implementing the sub-projects due to changes in their ownership, which led to decisions not related to IDCF to change growth strategies. Six sub-projects approved in May 2018 are currently meeting the necessary social and environmental safeguards conditions before signing of contracts and first disbursements. An additional six sub-projects have full proposals being presented at the Investment Committees in late September. This would total 20 sub-projects under the program and the commitment of US$ 22 million. Component 2: Support for the Nacala Special Economic Zone (SEZ) in the Nacala Corridor • The implementation of the distribution centers for water distribution in Nacala have progressed well. The project is concluding an audit on the environmental and social impacts of completion of artesian wells. A study on saltwater intrusion has started during the period and will be implemented for the next few months. • The bidding process for upgrading of bridges and water passages along the Nacala Porto-Nacala-a-Velha road is being finalized with contract moving currently to negotiation stage. Component 3: Institutional Development and Capacity Building • The Property Registration Law was approved in the Council of Ministers during the period, achieving one important objective for the IGPP. The project is also supporting the implementation of the law, as well as the dissemination of the Insolvency Law. • In spite of the implementation of the capacity building efforts of public officials for the Public Investment Management, progress in getting government projects to go through the trained investment committee has been slow. Ministry of Economy and Finance is aware of the issue and seeing ways of promoting more projects to go through committee. • The development of linkages between smallholder associations and large businesses is ongoing with some progress. Project Implementation Unit will collect further information about its impacts. • The demand analysis of the Nacala SEZ Airport City and Industrial Zone has encountered delays due to contracting issues. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- High High Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes 10/3/2018 Page 2 of 6 The World Bank Implementation Status & Results Report Mozambique - Integrated Growth Poles Project (P127303) Performance of enterprises and smallholders IN00616243 ►Average increase in agricultural output sold per smallholder farm in formal partnership with IDCF recipients (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 11.00 20.00 Date 25-Apr-2013 22-Mar-2018 28-Sep-2018 31-Oct-2019 Change expected to be achieved even if only a share of the funds have been allocated. The effects planned at producer level are extremely high for sub-projects appropriately implemented. The current Comments: result reflects that only a small proportion of projects are well advanced in implementation. IN00616245 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 61,684.00 174,113.00 140,000.00 Date 25-Apr-2013 22-Mar-2018 28-Sep-2018 31-Oct-2019 IN00616247 ►Average share of agricultural output sold per smallholder farm within 2km of rehabilitated rural roads (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 35.00 35.00 42.00 Date 01-Dec-2016 22-Mar-2018 28-Sep-2018 31-Oct-2019 Change to be measured in midline and follow-up surveys scheduled to be completed in Feb and Oct Comments: 2019. Intermediate Results Indicators by Components Support for the Tete agribusiness growth pole in the Zambezi Valley IN00616240 ►Roads rehabilitated, Rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 50.00 215.00 Date 25-Apr-2013 22-Mar-2018 28-Sep-2018 31-Oct-2019 IN00616241 ►Number of smallholders within 2 km of rehabilitated rural roads (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8,580.00 8,580.00 10,000.00 Date 30-Dec-2016 22-Mar-2018 28-Sep-2018 31-Oct-2019 IN00616242 10/3/2018 Page 3 of 6 The World Bank Implementation Status & Results Report Mozambique - Integrated Growth Poles Project (P127303) ►Number of smallholders in formal partnerships with IDCF subproject recipients (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,524.00 9,354.00 4,000.00 Date 25-Apr-2013 22-Mar-2018 28-Sep-2018 31-Oct-2019 Support for the Nacala Special Economic Zone in the Nacala Corridor IN00616246 ►Number of people in urban areas provided with access to Improved Water Sources under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18,900.00 18,900.00 27,500.00 Date 25-Apr-2013 22-Mar-2018 28-Sep-2018 31-Oct-2019 IN00616250 ►New water distribution network developed in Nacala-Porto (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 121.20 139.20 110.00 Date 30-Dec-2016 22-Mar-2018 28-Sep-2018 31-Oct-2019 IN00616248 ►Number of bridges and water passages rehabilitated and upgraded in the Nacala-a-Velha a Nacala-Porto Road (R702) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 42.00 Date 30-Nov-2016 22-Mar-2018 28-Sep-2018 31-Oct-2019 Contract under negotiation. Comments: Institutional development and capacity building IN00616244 ►Number of potential investments rigorously evaluated by MPD under the new Public Investment Management Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 25.00 Date 25-Apr-2013 22-Mar-2018 28-Sep-2018 31-Oct-2019 IN00616249 ►Number of recommended laws / regulations / amendments / codes enacted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 1.00 Date 30-Nov-2016 22-Mar-2018 28-Sep-2018 31-Oct-2019 10/3/2018 Page 4 of 6 The World Bank Implementation Status & Results Report Mozambique - Integrated Growth Poles Project (P127303) Property registration law approved by Council of Ministers. Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P127303 IDA-52370 Effective USD 100.00 100.00 0.00 40.96 51.74 44% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127303 IDA-52370 Effective 25-Apr-2013 27-May-2013 23-Aug-2013 31-Oct-2019 31-Oct-2019 Cumulative Disbursements 10/3/2018 Page 5 of 6 The World Bank Implementation Status & Results Report Mozambique - Integrated Growth Poles Project (P127303) Restructuring History Level 2 Approved on 13-Jun-2017 Related Project(s) There are no related projects. 10/3/2018 Page 6 of 6