Public Disclosure Authorized EUROPE AND CENTRAL ASIA Montenegro Agriculture Global Practice IBRD/IDA Specific Investment Loan FY 2009 Seq No: 13 ARCHIVED on 12-Apr-2016 ISR23062 Implementing Agencies: 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-Sep-2016 Public Disclosure Authorized 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. Montenegro Institutional Development and Agriculture Strengthening (MIDAS) (P110602) 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 17
Component 1: Implementation of a grant scheme based on core IPARD rules:(cost $16.55 M) Component 2: Technical assistance to support implementation and monitoring:(cost $11.76 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions MIDAS has fully achieved both the PDO to improve delivery of government assistance for sustainable agriculture and rural development in a manner consistent with the EU's pre-accession requirements and the Global Environmental Objective to mainstream sustainable land use and natural resource management into MARD's policies, programs and investments. As evident from the result agreement, most other indicators were either achieved or overachieved, with just a few partially achieved. The main achievements since the last Implementation Supervision Report of October 2015 are: 1. Director for IPARD Payment received the first EU Audit for the Entrustment of budget implementation tasks" (former Conferral of Management) ; 2. Detailed categorization of all agro-processors processing food of animal origins have been completed; 3. Civil works for the rehabilitation of the building to house the future IPARD Paying Agency have reached 97% and are to scheduled to be completed by March 31, 2016 ; 4. Farm Registry (FR) software has been tested and has been found acceptable by MARD, and end users trained. Software will be installed in the already procured hardware in the PA premises by March 31, 2016; 5. Completion of almost all investments and payment requests processed in all of 5 rounds of MIDAS grants scheme with only 2 outstanding payment requests that are in process and will be finalized by the end of March. 657 investments were completed, payments verified and processed for about EUR6.47 million transferred to beneficiaries. Investments include, inter alia: 274 tractors, 2,389 farm equipment (twowheel tractors and other equipment), 565 cattle, 650 sheep, 395 goats, 52 stables built for more than 8,600 square meters, and improved manure management in 188 farms; and 6. Works inside the Boder Inspection Post building have been completed and furniture and equipment have been installed, premises connected to utilities and staff moved into the premises. Page 2 of 17
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Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Low Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- Moderate 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. M&E system developed and operational for IPARD like measures and 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. M&E system developed and operational for IPARD like measures and programs for grant support. Indicators Fully compliant monitoring and evaluation system, eligible for EU accreditation. Page 5 of 17
programs for grant support. Indicators developed. developed. PHINDPDOTBL Number of agro-processors compliant toward EU food safety/hygiene regulations (Number, Custom) 18.00 -- 18.00 60.00 Date 23-Oct-2015 -- 24-Mar-2016 30-Jun-2018 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 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 Partially achieved. Veterinary Diagnostic Lab equipped, 16 methods accredited; Kotor Marine Biology Institute rehabilitated, furnished and equipped. Bar Border Partially achieved. Veterinary Diagnostic Lab equipped, 16 methods accredited; Kotor Marine Biology Institute rehabilitated, furnished and equipped. Bar Border Inspection Lab accreditation completed, supply of BIP equipment, full monitoring of water and aquaculture Page 6 of 17
PHINDGEOTBL Inspection Post construction works 95% completed fully furnished and equipped; 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. Post construction completed fully furnished and equipped; 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. products, food establishments meeting EU standards for approval Overall Comments Overall the project has substantially met all its objectives with intermediary indicators for the most part exceeding their targets. Global Environmental Objective Indicators Agri-environmental measures integrated into MAFWM's development program (Text, Custom) Rural Development Unit has no staff assigned for agri-environmental issues. Limited integration of agrienvironmental measures in support program -- Achieved. Agrienvironmental measures integrated into MARD MIDAS grants program, MARD staff incharge of preparation of measures, analysis and evaluation of applications, as well as controls and payments for agroenvironmental applications. evaluation and analysis of applications for agrienvironmental measures continuing. Date 23-Mar-2009 -- 24-Mar-2016 31-Mar-2016 Comments Page 7 of 17
PHINDGEOTBL Please note that the GEO indicator Actual (Previous) status (dated 23-Oct-2015 as per the archived ISR No. 12) was deleted by the system, and the system is not allowing adding any text. For the record the Previous status is recorded in ISR No. 12 Improved capacity of extension and advisory services to introduce agri-environmental measures (Text, Custom) Extension Service has no training program for or staff specialized in agrienvironment. -- Achieved. Code of Good Agriculture Practice developed and adopted, included as mandatory requirements for the grants program. Capacity of extension service to advice and monitor on the implementation of the Code developed through study tour and on-the-job practice. Extension officers deliver service on agroenvironmenta l measures and related matters to agriculture producers. All Extension Officers delivering comprehensive service for agrienvironmental measures. Date 24-Mar-2009 -- 24-Mar-2016 31-Mar-2016 Comments Please note that the GEO indicator Actual (Previous) status (dated 23-Oct-2015 as per the archived ISR No. 12) was deleted by the system, and the system is not allowing adding any text. For the record the Previous status is recorded in ISR No. 12 Overall Comments GEF indicators have for the most part been met. Remaining resources under GEF are to be used for the study of less favored areas that would benefit from the limited resources to support agro-environmental measures as direct payments. Intermediate Results Indicators Page 8 of 17
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. 619 commercially oriented agro-holdings Overachieved. 657 commercially oriented agro-holdings 400 agroholdings Number of applications for Food Establishments Grant approved (Number, Custom) 0.00 -- 0.00 150.00 Date 23-Oct-2015 -- 24-Mar-2016 30-Jun-2018 Number of grants for Food Establishments successfully completed (Number, Custom Breakdown) 0.00 -- 0.00 120.00 Date 23-Oct-2015 -- 24-Mar-2016 30-Jun-2018 Amount of IPARD-like grant funding awarded (percentage) (Percentage, Custom) 0.00 -- 0.00 90.00 Date 23-Oct-2015 -- 24-Mar-2016 30-Jun-2018 Page 9 of 17
Amount of grant funding disbursed (percentage) (Percentage, Custom Breakdown) 0.00 -- 0.00 75.00 Date 23-Oct-2015 -- 24-Mar-2016 30-Jun-2018 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. 310 agricultural households adopted agroenvironmental measures 200 agricultural households Amount of IPARD-like grant funding awarded (Euros) (Number, Custom) 0.00 7700000.00 7700000.00 7000000.00 Amount of grant fund disbursed (Euros) (Number, Custom) 0.00 6040000.00 6470000.00 5925925.90 Page 10 of 17
Client days of training provided (number) (Number, Core) 0.00 5681.00 5783.00 6000.00 Date 23-Mar-2011 23-Oct-2015 24-Mar-2016 30-Jun-2018 Client days of training provided - Female (number) (Number, Core Breakdown) 0.00 850.00 885.00 900.00 Clients who have adopted an improved agricultural technology promoted by the project (number) (Number, Custom) 0.00 1468.00 1511.00 1500.00 Direct project beneficiaries (Number, Core) 0.00 5962.00 6107.00 6200.00 Date 23-Mar-2009 23-Oct-2015 24-Mar-2016 30-Jun-2018 Page 11 of 17
Female beneficiaries (Percentage, Core Supplement) 0.00 15.00 16.86 15.00 Land area where sustainable land mgt. practices were adopted as a result of proj (Hectare(Ha), Core) 0.00 2142.00 2142.00 2000.00 Supports toward Montenegro IPARD accreditation (Text, Custom) No structure in place Partially 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. Completion of the PA Building and Farm Registry software are the only missing elements to achieve this target Partially 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 and first EU audit mission carried the audit at the end of January. PA Building 97% completed, Farm Registry software finalized and tested, waiting to be installed together with orocured hardware at the PA premises. 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. Page 12 of 17
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 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 Page 13 of 17
Integrated farm register operational (Text, Custom) No farm register in place. Partially achieved. Paper-based Farm Registry established and more than 900 farmers registered. Electronic Farm Registry software in testing phase. Partially achieved. Paper-based Farm Registry established and more than 1000 farmers registered, electronic Farm Registry software tested, staff trained. Procured hardware and software awaiting to be installed at the PA premises. Farm Register software and hardware system in place, registration of farms initiated and ongoing. 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. Page 14 of 17
Veterinary and phyto-sanitary border controls performed in EU-compliant facility in Bar. (Text, Custom) No suitable facility in place In progress. 98% of Bar Border Inspection Post construction works completed, lab furniture and equipment installed. Pending utilities connection and landscaping. Achieved. Bar Border Inspection Post construction works completed, lab furniture and equipment installed. Building completed, equipment procured and installed. 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 Page 15 of 17
Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P107473 IBRD-77160 Effective USD 15.70 15.70 0.00 13.33 0.94 85% P110602 TF-93405 Effective USD 4.00 4.00 0.00 3.46 0.54 87% P107473 TF-A1293 Effective USD 5.19 5.19 0.00 0.00 5.19 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P107473 IBRD-77160 Effective 21-Apr-2009 27-May-2009 23-Jul-2009 30-Jun-2014 30-Sep-2016 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 Page 16 of 17
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 17 of 17