The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Sustainable Agriculture Transformation Project (P145055) EAST ASIA AND PACIFIC | Vietnam | Agriculture Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 8 | ARCHIVED on 10-Jan-2019 | ISR35486 | 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 $13.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project has made a significant progress in several areas during the last six months. The project has now met almost all output and outcome targets.  First, training of farmers on sustainable practices for producing rice and coffee carried out under the project has been impactful. As of October 31, 2018, the rice farming area under sustainable farming practices has reached 84,766 ha (against the end target of 150,000 ha) and the coffee area under sustainable practices reached 21,814 ha (against the end target of 50,000 ha). 1/10/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055)  Second, the coffee nurseries supported by the project started producing high-quality coffee seedling, just in time for the 2019 replanting/rejuvenation season, which begins in August 2018. Eight (08) state-owned and 35 private nurseries have been upgraded and accredited.  Third, many PPMUs have advanced in selecting farmer organizations (FOs) for the second-batch subprojects, which should accelerate disbursement in 2019.  Fourth, the project disbursement continued accelerating from US$ 60.8 million in June 2018 to US$ 84.4 million in December 2018 (including advances to the project’s designated accounts). Yet, the most of disbursement was for the credit lines (increasing from US$ 37 million in May 2018 to US$ 57.5 million in December 2018). Disbursement of non-credit activities remained low. It is expected that this will be accelerated in 2019 when investments for FOs are implemented. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Substantial Substantial Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes The PDO Indicators IN00605647 ►PDO1. Number of project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 506,811.00 647,235.00 800,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track. Comments: IN00605653 Female beneficiaries (Percentage, Custom Supplement) 1/10/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 50.00 IN00605644 ►PDO2. Farming area under sustainable farming practices: a) rice production (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 66,195.00 84,766.00 150,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track. Comments: IN00605652 b) Coffee production (Hectare(Ha), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11,907.00 21,814.00 50,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 IN00605572 ►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 15.00 21.30 20.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 a) Rice production: Target exceeded; b) Coffee production: coffee productivity and price 2018 were lower than those in 2017 due to the weather and markets. Therefore, profits for coffee farmers in 2018 were Comments: much reduced compared to those in 2017. IN00605649 b) coffee production (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 4.50 20.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 IN00605573 ►PDO4. Reductions in GHG emissions from rice farming in the project area (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,000,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 CPMU has not yet conducted GHG measurements. However, based on the current progress of adopting GAP in rice, it is expected that this indicator is on track. In the coming months, the Bank will mobilize FAO Comments: consultants to assist CPMU in quantifying GHG emission reductions for the rice component. IN00605574 ►PDO5. Improved quality of service delivery by MARD and DARDs in support of project implementation measured by performance scorecard: a) MARD (departments) (Number, Custom) 1/10/2019 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 0.00 0.00 4.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 Behind schedule. Baseline surveys on the present quality of service delivery by MARD and 10 pilot provinces were completed in June 2018. Areas for improvement were identified and recommendations Comments: were made. Progress will be updated in 2019 and 2020. Close monitoring will be made by the MARD and the Bank team for this indicators in the coming years. IN00605650 b) DARDs (provinces) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 Overall Comments PDO PDOs 1, 2, and 3 are largely on track. Regarding PDOs 4 and 5, the implementation progress is on track. Measurements will be made in 2019 and will be updated in the results. Intermediate Results Indicators by Components Component A: Institutional Strengthening to Support Agricultural Transformation IN00605575 ►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 0.00 100.00 9.00 20.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track. Comments: IN00605636 ►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 0.00 1.00 3.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track. MTEF for MARD has been developed. MTEFs for Lam Dong and Dong Thap are being Comments: prepared. IN00605637 ►A.3: Adoption of improved subsector ARPs in selected MARD departments (departments) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/10/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Value 0.00 1.00 7.00 3.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 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 IN00605638 ►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 0.00 126,710.00 136,526.00 150,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track Comments: IN00605639 ►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 31,607.00 54,108.00 75,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track Comments: IN00605640 ►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 33,786.00 38,734.00 50,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track Comments: IN00605641 ►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 8,347,826.00 11,500,000.00 40,000,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 The present demand for the rice credit line by ABs for upgrading milling/processing capacity was low than Comments: expected. Component C: Supporting Sustainable Coffee Production and Rejuvenation IN00605642 ►C.1: Coffee area adopting sustainable farming practices as measured by reductions in presticide and fertilizer use: (a) Existing Plantations (Hectare(Ha), Custom) 1/10/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10,796.00 18,642.00 40,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track Comments: IN00605651 (b) Rejuvenation (Hectare(Ha), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,111.00 4,670.00 10,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 IN00605645 ►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 16,000.00 26,444.00 22,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 Target exceeded. Comments: IN00605646 ►C.3: Area replanted with certified planting materials in the project areas (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,902.00 4,670.00 7,000.00 Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track Comments: IN00605643 ►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-May-2018 30-Oct-2018 31-Dec-2020 Delayed. During the MTR, the mission held discussions with Department of Crops and NIAAP to agree on the scope of work for the landscape pilots. It was agreed that NIAAP will revise the work plan and budget Comments: for resubmission to MARD for approval and the work will start in mid-2019. Component D: Project Management IN00605648 ►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 1/10/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Date 04-Nov-2014 30-May-2018 30-Oct-2018 31-Dec-2020 On track Comments: IN00605654 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 Overall Comments IR Most of intermediate results indicators are on track except B4 due to the low demand of ABs for rice credit and C4 which has not started due to delays from MARD. For B4, if the demand for rice credit continues to be low in 2019, its target may need to be revised to matching with the demand. For C4, the bottleneck was addressed during the MTR mission. Implementation of landscape coffee pilots will start in 2019 and it is expected that this indicator will be back on track. 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 94.34 144.70 39% Key Dates (by loan) 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 1/10/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Sustainable Agriculture Transformation Project (P145055) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 1/10/2019 Page 8 of 8