Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) Solomon Islands Rural Development Program II (P149282) EAST ASIA AND PACIFIC | Solomon Islands | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 5 | ARCHIVED on 12-Nov-2017 | ISR29880 | Implementing Agencies: Solomon Islands, Ministry of Agriculture and Livestock Development, Ministry of Development Planning and Aid Coordination Key Dates Key Project Dates Bank Approval Date:21-Nov-2014 Effectiveness Date:27-Feb-2015 Planned Mid Term Review Date:11-Jun-2018 Actual Mid-Term Review Date:28-Aug-2017 Original Closing Date:28-Feb-2020 Revised Closing Date:28-Feb-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed development objective for the project is to improve basic infrastructure and services in rural areas and to strengthenthe linkages between smallholder farming households and markets. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Community Infrastructure and Services:(Cost $21.52 M) Agriculture partnerships and support:(Cost $18.81 M) Program management:(Cost $6.57 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions 11/12/2017 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) The Development Objective of the Project is to improve basic infrastructure and services in rural areas and to strengthen the linkages between smallholder farming households and markets. The project operates in all 172 rural wards of the country and provides: (i) Community Development Grants (CDGs), (ii) Disaster Recovery Grants (DRGs), (iii) Agribusiness Partnership (AP) Grants, and (iv) Agriculture Supplemental Equity Facility (ASEF) Grants. The Project has made substantial implementation progress on improving basic infrastructure and services in rural areas, with over 40 subprojects completed and 120 sub-projects well underway, most of which are expected to be completed by the end of Year 3 (February 2018), reaching over 100,000 beneficiaries or one-sixth of the national population. In addition, linkages to markets are being strengthened for nearly 6,500 people through an initial 20 APs currently under implementation. Some Participatory Action Research (PAR) activities have increased the production and average income of wet bean cocoa farmers by about 300% after two years of implementation. Under the disaster risk recovery components, approximately 2,500 beneficiaries who were affected by the floods of April 2014 have received agriculture and livestock recovery assistance. The Project is well positioned to rollout the second cycle of CDGs and APs by the end of Year 3, leaving two years to complete the full cycle. The Project, however, will likely not meet the initial targets (three of the four PDO-level indicator targets will not likely be met), despite the substantial implementation progress made in the first half of the implementation period. This is mainly due to a combination of reasons including overly ambitious targets set at the onset of the Project, financing shortages caused by exchange rate fluctuations, and a complex operational environment characteristic of a fragile and conflict-affected state. The Project will be restructured to adjust the scope and final targets in line with the available financing. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Beneficiaries with improved quality of, and/or, access to rural infrastructure or services (including from disaster recovery) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/12/2017 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) Value 0.00 0.00 19,398.00 262,850.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments The target for Year 3 (ending in February 2018) is to reach 85,000 beneficiaries through a combined total of 120 sub-projects financed by CDGs and DRGs. So far 43 sub-projects have been completed (36% of the Year 3 target), reaching 19,398 beneficiaries (22% of the Year 3 target). In addition, over 120 sub-projects benefitting approximately 80,000 villagers are currently under implementation, most of which are expected to be completed by the end of Year 3. PHINDPDOTBL  Of which female (beneficiaries) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 984,642,500.00 131,425.00 PHINDPDOTBL  Male and female members of farming households engaged in productive partnerships with commercial enterprises (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6,441.00 68,200.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments The Year 3 target (ending in February 2018) is to reach 53,600 members of farming households through the establishment of 79 agribusiness partnerships. The Project has reached 6,460 (12% of the Year 3 target) household members through 20 partnerships to date. Roughly 23-24 more partnerships are expected to be established by February 2018, reaching approximately 14,000 household members (26% of the Year 3 target). PHINDPDOTBL  Female members of farming households engaged in productive partnerships with commercial enterprises (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3,048.00 34,100.00 11/12/2017 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 PHINDPDOTBL  Increase in sales for farmers engaged in partnerships (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments The collection of baseline data was mostly completed by June 30, 2017. The collection of results data has not commenced. Due to the technical challenges in measuring this indicator, the midterm review mission recommended amending it. PHINDPDOTBL  Number of male and female beneficiaries receiving agriculture and livestock support to recover incomes lost from April 2014 flooding (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2,469.00 5,400.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 31-Dec-2016 Comments So far, 2,469 beneficiaries from 274 families have received disaster recovery assistance, which included 192 pig farming families, 19 copra producing families, 23 broiler farming families and six families for egg production. The remaining number of farmers still to receive assistance under this subcomponent is 124. Assistance for these farmers were delayed, due mainly to non-availability of necessary construction materials in the country. PHINDPDOTBL  Female beneficiaries of agriculture and livestock recovery support (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,200.00 1,850.00 11/12/2017 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 31-Dec-2016 Overall Comments Intermediate Results Indicators PHINDIRITBL  Number of community infrastructure sub-projects completed (including from disaster recovery) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 43.00 374.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments Community Development Grants (CDGs). Under the first cycle of CDGs, all 172 wards in the country have selected their priority sub- projects which were endorsed by the provincial assembly. 174 sub-project committees have been formed, trained, and bank accounts opened for them. Of these, 38 sub-projects have been completed, while 83 sub-projects are currently under implementation. The implementation of the CDGs is delayed due to a number of reasons including: (a) an extended duration (20 weeks) of the training conducted for Community Helpers (CHs) and Technical Community Helpers (TCHs) at the beginning of the project; (b) late release of CDGs to communities caused by administrative glitches with the financial management arrangements, which was resolved in April 2016; (c) an unexpectedly large number of water supply systems which required additional time to prepare the technical designs; and (d) unavailability of in-kind community contributions (e.g. communities’ work force and equipment were needed for other construction work), or community members not providing the contribution promised. Rural Infrastructure Disaster Recovery and Resilience. So far five out of 40 sub-projects have been completed. The causes of the delay were similar to those of CDGs. Of the 40 sub-projects supported by DRGs, 33 are water supply sub-projects (17 of which are boreholes), and seven are other building sub-projects. The limited availability of machinery and supplies for building water supply systems, especially borehole systems created further delays. 11/12/2017 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) PHINDIRITBL  Participants in community prioritization/consultaton meetings (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 73,545.00 213,088.00 180,000.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2018 PHINDIRITBL  Participants in community prioritization/consultaton meetings (of which are women) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 35,308.00 105,927.00 90,000.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 PHINDIRITBL  Percentage of sub-projects for which plans for community engagement in post-project operatoins and maintenance are confirmed (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 14.00 100.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments 31 out of 214 sub-projects that have been or are implemented so far have O&M plans. PHINDIRITBL  Community and other non-project financed contributions as a percentage of total subproject costs (at the time of completion) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 27.00 30.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2018 Comments The actual (current) value is based on 11/12/2017 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) PHINDIRITBL  Representatives in Ward Development Committees that are women (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 34.00 37.00 50.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 PHINDIRITBL  Percentage of Subprojects with co-financing from MPs, MPAs or Provincial Government (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 7.65 20.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments 4 out of 214 sub-projects are co-financed by MPs, MPAs, or Provincial Government. The figure (7.65%) shown in the aide-memoire included co-financing by other donors. PHINDIRITBL  Number of Agribusiness partnerships established (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 20.00 79.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments The 20 approved agribusiness partnerships approved under Call 1 represent 25 percent of the Year 3 target (79). Roughly 23-24 more partnerships are scheduled to be established by February 2018, bringing the total number of partnerships to 43-44 (54-56% of the Year 3 11/12/2017 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) target). Based on the results reported here this sub-component will not meet the RF’s Intermediate Level Results Indicator target of 79 “agribusiness partnerships established”. This is mainly because the average size of partnership grants are expected to be greater than initially estimated. In the case that 44 partnerships become operational these would comprise 22 “large” (SBD 1.5 – 2.0 million) grants (50 percent), 12 “medium” (SBD 1.0 million) grants (27 percent) and 10 “small” (SBD 0.2 – 0.5 million) grants (23 percent). This is in contrast to the distribution of grants anticipated in the Project Implementation Manual (PIM) of 21 percent large, 36 percent medium and 43 percent small partnerships. PHINDIRITBL  Increase in area of crops with improved farming practices under partnerships (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments The collection of baseline data was mostly completed by June 30, 2017. The collection of results data has not commenced. Due to the technical challenges in measuring this indicator, the midterm review mission recommended replacing the indicator with a more relevant and technically feasible one through a project restructuring. PHINDIRITBL  Total value of ASEF grants disbursed (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 88,700.00 2,000,000.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments The total grants of SBD 709,600 (USD 88,700) represents 6.5 percent of the Year 3 target (SBD 11,000,000). To-date nine ASEF grants have been approved for two livestock businesses, five cocoa trading and or exporting businesses, one coconut milling business, and one coconut oil processing business, all operating in Guadalcanal Province. To-date seven businesses have already begun to draw down their loans. There is some indication this sub-component will continue to progress – both partner commercial banks have indicated they are considering new applications. 11/12/2017 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) PHINDIRITBL  Increase in employees of small and medium-sized enterprises (ASEF recipients) and agricultural partnerships (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 Comments Results data are yet to be collected for this indicator. Since this indicator is not deemed relevant, while its data collection is challenging, the midterm review mission recommended removing this indicator through a project restructuring. PHINDIRITBL  Male and female farmers who are members of a formal association, and who participate in agriculture partnerships (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2019 Comments 484 farmers (384 male and 97 female) who are members of a formal association are participating in agriculture partnerships. Due to the weak relevance of this indicator to the project's objectives and outcomes, and given its ambiguity (the indicator is subject to various interpretations), the midterm review mission recommended removing the indicator from the RF through a project restructuring. PHINDIRITBL  Client days of training provided (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3,109.00 20,000.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 11/12/2017 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) PHINDIRITBL  Client days of training provided - Female (number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8,000.00 Date 27-Feb-2015 14-Dec-2015 13-Feb-2017 28-Feb-2020 PHINDIRITBL  Audit reports submitted on time (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 5.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 PHINDIRITBL  Percentage of subprojects with data entered into the MIS from the field (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 15.00 60.00 Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2020 PHINDIRITBL  Social accountability pilot scaled up beyond pilot communities (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 27-Feb-2015 14-Dec-2015 28-Aug-2017 28-Feb-2018 Comments This activity was originally proposed to be applied to the education sector, however, it has been placed on hold since late 2015 due to institutional reforms in the Ministry of Education and Human Resource Development (MEHRD). During the midterm review mission, it was agreed to cancel this activity as part of the project cost saving exercise since the activity, which has not commenced, does not have direct implications for the Project Development Objective. 11/12/2017 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) PHINDIRITBL  Years with adequate government counterpart contributions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 5.00 Date 27-Feb-2015 14-Dec-2015 15-Sep-2017 28-Feb-2020 Overall Comments A contribution of SBD 10 million was transferred to the project in 2015. There was no contribution in 2016. SIG has allocated SBD 13.4 million for the project in the 2017 budget, and the first tranche of SBD 2.6 million has been transferred to the project in September 2017. The remaining transfers allocated in the 2017 budget are expected to be made by December 2017. It is critical that the reminder of SIG contribution is transferred to the Project by early 2019. This would require an allocation of the remaining SIG co-financing amount in the 2018 budget. The Project will not be able to achieve its objectives, if SIG commitments are not met. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P149282 IDA-55740 Effective USD 5.00 5.00 0.00 4.54 0.04 91% P149282 IDA-D0220 Effective USD 4.00 4.00 0.00 3.75 0.00 94% P149282 TF-19256 Effective USD 9.00 9.00 0.00 7.29 1.71 81% P149282 TF-A5083 Effective USD 5.10 5.10 0.00 0.00 5.10 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 11/12/2017 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Solomon Islands Rural Development Program II (P149282) P149282 IDA-55740 Effective 21-Nov-2014 29-Jan-2015 27-Feb-2015 28-Feb-2020 28-Feb-2020 P149282 IDA-D0220 Effective 21-Nov-2014 29-Jan-2015 27-Feb-2015 28-Feb-2020 28-Feb-2020 P149282 TF-19256 Effective 21-Nov-2014 17-Apr-2015 17-Apr-2015 28-Feb-2020 28-Feb-2020 P149282 TF-A5083 Effective 14-May-2017 29-Sep-2017 29-Sep-2017 28-Aug-2019 28-Aug-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 03-Feb-2016 ,Level 2 Approved on 14-Apr-2016 ,Level 2 Approved on 15-Jun-2017 Related Project(s) There are no related projects. 11/12/2017 Page 12 of 12 Public Disclosure Copy