Public Disclosure Authorized EUROPE AND CENTRAL ASIA Montenegro Agriculture Global Practice IBRD/IDA Specific Investment Loan FY 2009 Seq No: 15 ARCHIVED on 26-May-2017 ISR27925 Implementing Agencies: Ministry of Finance, Ministry of Agriculture and Rural Development Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:21-Apr-2009 Planned Mid Term Review Date:17-Sep-2012 Original Closing Date:30-Jun-2014 Project Development Objectives Effectiveness Date:23-Jul-2009 Actual Mid-Term Review Date:28-Nov-2012 Revised Closing Date:30-Mar-2019 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve delivery of government assistance for sustainable agriculture and rural development in a manner consistent with the EU's pre-accession requirements. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) The new objectives of the Project are: (i) to improve delivery of government assistance for sustainable agriculture and rural development in a manner consistent with the EU's pre-accession requirements; (ii) to increase the experience of Montenegrin authorities in administering rural development grants in accordance with EU-IPARD core rules, and (iii) to support a selected number of agricultural holdings and food establishments in upgrading towards EU standards. Public Disclosure Authorized Global Environmental Objective (from Project Appraisal Document) The Global Environment Objective is to mainstream sustainable land use and natural resource management into MAFWM's policies, programs and investments. These efforts will be particularly critical for the north of Montenegro, where there are sensitive mountain ecosystems of global importance, and where poor rural residents are largely dependent on the natural resource base for their livelihoods. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Name Page 1 of 14
Component 1: Strengthening MARD's rural development program:(cost $13.13 M) Component 2: Strengthening MARD's administrative and management capacity in accordance with EU pre-accession requirements:(cost $12.87 M) Component 3: Project Management, Monitoring and Evaluation:(Cost $1.20 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The organic measure support implementation has been prepared and will be carried out in close cooperation with the EU funded Strengthening Montenegrin Agriculture with Establishing Land Parcel Identification System (LPIS) project team. The LPIS project has supported the design and implementation of a pilot LPIS module which is based on available ortophoto of 2011, and for which a software application has been developed. As mentioned above the pilot LPIS is being used as the basis to implement the measure for organic production support financed by the MIDAS AF, and to this end all the relevant staff of DfIP as well as of the Extension and Advisory Service have been duly trained before the launching of the support to the measure. Through using the LPIS pilot the successful learning by doing approach will continue to be implemented. In fact, while farmers will be introduced to a new methodology for defining the area of support, staff of the DfIP and Extension and Advisory Service, will actually test their knowledge acquired in the training, and MARD support will be implemented in a more transparent and efficient way The GEF Grant financing the MIDAS project will close on June 30, 2017. As of May 19, 2017 95.5% has been disbursed. Some five consultancies are about to be completed and their output will provide inputs to a number of MARD policy formulations. These include: (i) study on Areas of Natural Constrain (ANC), (ii) the TA on agricultural land legislation, (iii) extension service organizational structure; (iv) fishery and (v) forestry. In particular, the study on identification on ANC (formerly defined as Less Favored Areas) will form the basis for identifying areas that could be supported by the European Agricultural Fund for Rural Development (EAFRD); legislation, (ii), and (iii) forestry and fishery sector. These outputs will then serve to inform the government and the team as to the depth to which a follow on project could address some of the issues identified Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Low Low Page 2 of 14
Other -- Low Low Overall -- Moderate Moderate Results Project Development Objective Indicators PHINDPDOTBL MAFWM capacity to disburse and track the use of rural development funds and to evaluate their impact in line with EU IPARD requirements. (Text, Custom) Limited coverage of monitoring and verification. Achieved. MARD developed a system and capacity to disburse & track use of rural development IPARD funds, procedures are improved in each forthcoming round, and the capacity of both beneficiaries and processors is enhanced. Accreditation package including procedures fully aligned with IPARD requirements submitted to EU and audited. M&E system developed and operational for IPARD like measures and programs for grant support. Indicators developed. Achieved. MARD developed a system and capacity to disburse & track use of rural development IPARD funds, procedures are improved in each forthcoming round, and the capacity of both beneficiaries and processors is enhanced. Accreditation package including procedures fully aligned with IPARD requirements submitted to EU and audited. M&E system developed and operational for IPARD like measures and programs for grant support. Indicators developed. Fully compliant monitoring and evaluation system, eligible for EU accreditation. Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 PHINDPDOTBL Number of agro-processors compliant toward EU food safety/hygiene regulations (Number, Custom) 18.00 18.00 53.00 60.00 Date 23-Oct-2015 30-Sep-2016 19-May-2017 30-Jun-2018 Page 3 of 14
PHINDPDOTBL Measures for direct payments implemented and paid (Amount(USD), Custom) 0.00 0.00 0.00 500,000.00 Date 22-Mar-2016 30-Sep-2016 19-May-2017 30-Jun-2018 Comments Program to support implementation of organic farming has been launched on May 05, 2017 and is being conducted based on data drawn from the pilot LPIS that has been established. PHINDPDOTBL EU IPARD compatible rural development measures fully integrated in MAFWM support programs. (Text, Custom) No EU IPARD compatible rural development measures in MAFWM support programs Achieved. Rural development measures (101, 103, and 302) included in IPARD program. Measure 101 integrated in MARD support through MIDAS grants program round 1 and 4. Agroenvironmental measures integrated in MARD support program through MIDAS grants program round 2, 3 and 5. Achieved. Rural development measures (101, 103, and 302) included in IPARD program. Measure 101 integrated in MARD support through MIDAS grants program round 1 and 4. Agroenvironmental measures integrated in MARD support program through MIDAS grants program round 2, 3 and 5. Rural development measures defined in EU IPARD program PHINDPDOTBL Critical elements of the food safety system upgraded in EU compliant manner. (Text, Custom) Reference Labs lacking equipment and/or facilities, BIPs and food processing establishments not meeting EU standards, animal by-products not safely disposed of Achieved. Veterinary Diagnostic Lab equipped, 16 methods accredited; Kotor Marine Biology Institute rehabilitated, furnished and equipped; Bar Border Inspection Post constructed, furnished, equipped and in Achieved. Veterinary Diagnostic Lab equipped, 16 methods accredited; Kotor Marine Biology Institute rehabilitated, furnished and equipped; Bar Border Inspection Post constructed, furnished, equipped and in Lab accreditation completed, supply of BIP equipment, full monitoring of water and aquaculture products, food establishments Page 4 of 14
operation; gap analysis on legal/institutional, administrative and technical aspects of food system completed; TA to create animal byproducts legal and regulatory framework, and increase administrative and technical capacity completed; trainings to veterinary inspectors and veterinary directorate carried out. operation; gap analysis on legal/institutional, administrative and technical aspects of food system completed; TA to create animal byproducts legal and regulatory framework, and increase administrative and technical capacity completed; trainings to veterinary inspectors and veterinary directorate carried out. meeting EU standards for approval Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 Overall Comments The GEF Grant will close on June 30, 2017. It will have substantially meet its PDO and provided useful input for formulating future policies that will ensure agriculture is more environmentally sustainable and landscapes are maintained Global Environmental Objective Indicators Overall CommentsPHGEOCMTS Intermediate Results Indicators Investments in agricultural and rural development in line with IPARD measures (Text, Custom) Number of commercial orientated farmers availing of market driven support measures is 0 (zero) Overachieved. 658 commercially oriented agro-holdings Overachieved. 658 commercially oriented agro-holdings 400 agroholdings Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 Page 5 of 14
Amount of IPARD-like grant funding awarded (percentage) (Percentage, Custom) 0.00 0.00 63.00 90.00 Date 23-Oct-2015 20-Oct-2016 19-May-2017 30-Jun-2018 Comments Considering only the IPARD-like 2 call for grants which are supported by TFA1293 funded by the EU and associated with this MIDAS project P107473 Amount of grant funding disbursed (percentage) (Percentage, Custom Breakdown) 0.00 0.00 0.00 75.00 Date 23-Oct-2015 20-Oct-2016 19-May-2017 30-Jun-2018 Number of applications for Food Establishments Grant approved (Number, Custom) 0.00 0.00 33.00 150.00 Date 23-Oct-2015 20-Oct-2016 19-May-2017 30-Jun-2018 Comments Finally approved grants of first call, however no funds disbursed as they are still under implementation and any disbursements will only take place upon full completion including works, installation of equipment and receiving of full permit for operations. Page 6 of 14
Number of grants for Food Establishments successfully completed (Number, Custom Breakdown) 0.00 0.00 0.00 120.00 Date 23-Oct-2015 20-Oct-2016 19-May-2017 30-Jun-2018 Direct payments EU-compatible policy measures developed and adopted by the Ministry (Text, Custom) No EU-compatible direct payments measures EU-compatible Direct Payment policy measure under development EU-compatible Direct Payment policy measure developed and under implementation EU-compatible direct payments policy measures adopted Date 22-Mar-2016 20-Oct-2016 19-May-2017 30-Jun-2018 Targeted beneficiaries are satisfied with timeliness and transparency of payout of EU-compatible direct payments (Percentage, Custom) 0.00 0.00 0.00 70.00 Date 22-Mar-2016 20-Oct-2016 20-Oct-2016 30-Mar-2019 IT system to manage the flow of funds for implementation of direct payments measures established (Text, Custom) No IT system in place IT system in the process of being designed Pilot IT system being designed and in use for the implementation of direct payments launched under the project IT system established Date 22-Mar-2016 20-Oct-2016 19-May-2017 30-Mar-2019 Page 7 of 14
Adoption of agri-environmental measures among beneficiaries. (Text, Custom) No awareness and use of agri-environmental measures among farmers, processors, and rural communities. Overachieved. 278 agricultural households adopted agroenvironmental measures Overachieved. 278 agricultural households adopted agroenvironmental measures 200 agricultural households Amount of IPARD-like grant funding awarded (Euros) (Number, Custom) 0.00 7,700,000.00 7,700,000.00 7,000,000.00 Amount of grant fund disbursed (Euros) (Number, Custom) 0.00 6,502,733.10 6,502,733.10 5,925,925.90 Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 Client days of training provided (number) (Number, Custom) 0.00 5,796.00 6,346.00 6,000.00 Date 23-Mar-2011 30-Sep-2016 19-May-2017 30-Jun-2018 Page 8 of 14
Client days of training provided - Female (number) (Number, Custom Breakdown) 0.00 891.00 981.00 900.00 Date 23-Mar-2009 30-Sep-2016 19-May-2017 30-Sep-2016 Clients who have adopted an improved agricultural technology promoted by the project (number) (Number, Custom) 0.00 1,511.00 1,511.00 1,500.00 Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 Direct project beneficiaries (Number, Custom) 0.00 6,120.00 615,300.00 6,200.00 Date 23-Mar-2009 30-Sep-2016 19-May-2017 30-Jun-2018 Female beneficiaries (Percentage, Custom Supplement) 0.00 17.00 17.00 15.00 Page 9 of 14
Land area under sustainable landscape management practices (Hectare(Ha), Corporate) 0.00 2,142.00 2,142.00 2,000.00 Actions implemented toward Montenegro IPARD accreditation: adoption by Government of the IPARD program; Accreditation package submitted to EU;Paying Agency premises according to EU standards completed (Text, Custom) No structure in place Achieved. IPARD Program II adopted by EU on July 20, 2015 and Mn Gov on Sept 10, 2015. Accreditation package submitted to EU for Accreditation on August 14, 2015. EUcompliant Paying Agency premises completed and Farm Registry software installed and IT system operational. Achieved. IPARD Program II adopted by EU on July 20, 2015 and Mn Gov on Sept 10, 2015. Accreditation package submitted to EU for Accreditation on August 14, 2015. EUcompliant Paying Agency premises completed and Farm Registry software installed and IT system operational. IPARD program II approved by EU, updated accreditation package according to IPARD program II and submitted for national accreditation, Paying Agency building, IT and Farm Registry system functional. Date 23-Mar-2009 30-Sep-2015 30-Sep-2015 30-Sep-2016 EU IPARD compatible Rural Development Plan, including agri-environmental measures, submitted to EU. (Text, Custom) No EU IPARD compatible Rural Development Unit or Plan. Achieved. Directorate for Rural Development EU IPARD compatible in place, final IPARD Program II adopted by EU on July 20, 2015 and Montenegro Government on September 10, 2015. Achieved. Directorate for Rural Development EU IPARD compatible in place, final IPARD Program II adopted by EU on July 20, 2015 and Montenegro Government on September 10, 2015. Final IPARD Program II submitted to EU Page 10 of 14
All agricultural and rural development investments executed through an EU IPARD compatible Proto-Paying Agency (as approved by the World Bank). (Text, Custom) Non-compliant system. Achieved. MARD and its Directorate for IPARD Payments approved by the Bank to be fully in charge for execution of payments as detailed in the grants fourth and fifth round operational manual. Achieved. MARD and its Directorate for IPARD Payments approved by the Bank to be fully in charge for execution of payments as detailed in the grants fourth and fifth round operational manual. Proto-Paying Agency remains operational. Agricultural Census is implemented and results disseminated. (Text, Custom) No agricultural census data available. Achieved. Census implemented and results disseminated. Achieved. Census implemented and results disseminated. Main agricultural census implemented. Statistical register established Integrated farm register operational (Text, Custom) No farm register in place. Achieved. Farm Register software and hardware system in place, registration of farms ongoing electronically. Achieved. Farm Register software and hardware system in place, registration of farms ongoing electronically. Farm Register software and hardware system in place, registration of farms initiated and ongoing. Date 23-Mar-2009 30-Sep-2016 30-Sep-2016 30-Sep-2016 Page 11 of 14
Number of analysis methods of the Veterinary Diagnostic Laboratory in Podgorica ISO 17025 accredited. (Text, Custom) No accreditation at present, overlapping competence in food safety system. Achieved. Vet Diagnostic Laboratory in Podgorica has 16 analysis methods ISO17025 accredited Achieved. Vet Diagnostic Laboratory in Podgorica has 16 analysis methods ISO17025 accredited Achieved. Vet Diagnostic Laboratory in Podgorica has 16 analysis methods ISO17025 accredited Marine Biology Institute in Kotor functioning as NRL in adequate facilities. (Text, Custom) No suitable facilities in place. No clearly defined role in food safety system, no routine testing performed. Achieved. Marine Biology Institute rehabilitated, provided with lab furniture and equipment, regular testing ongoing. In late February 2015 the MBI accredited Microbiological testing of sea water methods. Achieved. Marine Biology Institute rehabilitated, provided with lab furniture and equipment, regular testing ongoing. In late February 2015 the MBI accredited Microbiological testing of sea water methods. Full monitoring of sea waters and aquaculture products in line with national legislation. Veterinary and phyto-sanitary border controls performed in EU-compliant facility in Bar. (Text, Custom) No suitable facility in place Achieved. Bar Border Inspection Post construction works completed, lab furniture and equipment installed, staffed moved in and operational. Achieved. Bar Border Inspection Post construction works completed, lab furniture and equipment installed, staffed moved in and operational. Building completed, equipment procured and installed. Date 23-Mar-2009 01-Jun-2016 01-Jun-2016 30-Sep-2016 Page 12 of 14
Feasibility Study on safe disposal of animal by-products prepared and legal framework improved. (Text, Custom) National, non-eu compliant system of safe disposal of ABPs in place Achieved. Legal framework on safe disposal of animal byproducts improvements completed, training to Veterinary Directorate and Inspectors conducted. Achieved. Legal framework on safe disposal of animal byproducts improvements completed, training to Veterinary Directorate and Inspectors conducted. Legal framework on safe disposal of animal byproducts drafted. Food establishments classified and annual control plans prepared. (Text, Custom) No system in place Achieved. Procedures for classification of food establishments and annual control plans completed according to EU standards, preliminary classification completed. Training to Veterinary Directorate and Inspectors conducted. Achieved. Procedures for classification of food establishments and annual control plans completed according to EU standards, preliminary classification completed. Training to Veterinary Directorate and Inspectors conducted. Procedures for classification of food establishments and annual control plans completed according to EU standards. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P107473 IBRD-77160 Closed USD 15.70 15.70 0.00 13.88 0.26 88% P107473 IBRD-86430 Effective USD 3.34 3.34 0.00 0.54 2.78 16% P110602 TF-93405 Effective USD 4.00 4.00 0.00 3.93 0.07 98% Page 13 of 14
P107473 TF-A1293 Effective USD 5.29 5.29 0.00 0.67 4.62 13% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P107473 IBRD-77160 Closed 21-Apr-2009 27-May-2009 23-Jul-2009 30-Jun-2014 30-Sep-2016 P107473 IBRD-86430 Effective 09-Sep-2016 05-Oct-2016 14-Dec-2016 30-Mar-2019 30-Mar-2019 P110602 TF-93405 Effective 27-May-2009 27-May-2009 23-Jul-2009 30-Jun-2014 30-Jun-2017 P107473 TF-A1293 Effective 24-Dec-2015 30-Dec-2015 23-Feb-2016 30-Jun-2018 30-Jun-2018 Cumulative Disbursements Restructuring History Level 2 Approved on 20-May-2014,Level 2 Approved on 03-Jun-2015,Level 2 Approved on 28-Mar-2016 Related Project(s) P110602-Montenegro Institutional Development and Agriculture Strengthening (MIDAS),P154111-Montenegro Additional Financing EU/IPA Ag & RD Institution Build. Proj,P159115-Additional Financing to MIDAS Page 14 of 14