The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) Ecuador - Sustainable Family Farming Modernization Project (P151963) LATIN AMERICA AND CARIBBEAN | Ecuador | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 9 | ARCHIVED on 13-Nov-2019 | ISR38915 | Implementing Agencies: REPUBLIC OF ECUADOR, Ministry of Agriculture and Livestock Key Dates Key Project Dates Bank Approval Date: 15-Jul-2015 Effectiveness Date: 16-Dec-2015 Planned Mid Term Review Date: 01-Oct-2018 Actual Mid-Term Review Date: 01-Oct-2018 Original Closing Date: 30-Jun-2021 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to enhance incomes of small and medium sized farm households by supporting more productive and climate- smart use of land and water. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Investments for climate-smart sub-projects:(Cost $77.50 M) Component 2: Capacity building for institutional stakeholders and beneficiaries’ organizations:(Cost $16.20 M) Component 3: Project Management:(Cost $15.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions 1- General project status: Overall, there is an acceleration of implementation pace of the project with 60 subprojects, out of a total target of 63 subprojects, being carried out : (i) 32 subprojects with works already completed or under implementation ; (ii) 6 subprojects with tender documents ready for launching the procurement processes; and (iii) 22 subprojects with feasibility studies under preparation. The last group of subprojects (under Group 6) is under selection and will complete and probably overachieve the target of 63 subprojects. Although the disbursement rate is low, the project has already reached some results aligned with their targets, especially in terms of increase of net revenues (14.5% above the 10% target after one year of subproject's completion). With all Group 2 and most of Group 3 subprojects under 11/13/2019 Page 1 of 9 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) construction, it is expected that the project will reach 50% of the main targets by June 2020 (e.g., area with improved irrigation services and number of beneficiaries). In parallel, the next groups of subprojects (Groups 4 and 5) are under studies and will constitute the pipeline for the second semester of 2020 calendar year. A sixth and last group of subprojects is also under selection and the feasibility studies should be ready during the first semester of 2021 calendar year. 2- Specific status of implementation of Spanish co-financing (Note: this section of the ISR is required in the co-financing agreement between AECID and World Bank): The situation of the subprojects financed by Spanish cofinancing is as follows: (i) Group 1: works have been completed for Palmar Grande (Province of Carchi) and General Plaza (Manabí) ; (ii) Group 2: 5 subprojects are under implementation since early 2019: Huaquer (Carchi), Toacaso (Cotopaxi), Pillaro Norte (Tungurahua), La Magdalena (Imbabura) and Pinguili (Tungurahua) and should be completed by the first semester of 2020 Calendar year; (iii) Groups 3: 5 subprojects have been identified for the Spanish cofinancing and are under implementation: Sucuso (Chimborazo), Mundug Yamate and Campo Alegre (both in Tungurahua) and (iv) Group 4: Feasibility studies for Perihuela (Imbabura) and Belisario Quevedo (Cotopaxi) are under preparation while the PIU will propose two more subprojects to be financed by AECID in this Group 4. The AECID is also in charge of the implementation of the Latin America Investment Facility (Euro 8 million grant from European Union). These activities are designed to complement the project (improvement of national capacities of irrigation with the irrigation school, support to agricultural investments in 4 demonstrative territories: (i) Pillaro Norte (Province of Tungurahua); (ii) Territorios de la Libertad-17 de Junio-Chambitola (Province of Pichincha); (iii) La Paquita (Province of Guyas) y (iv) un area in Manabi Province to select. The LAIF grant is having good implementation progress especially in the activities related to the Irrigation School and in demonstrative territories when the investments in production and commercialization will allow to valorize the investments form the PIT in on-farm irrigation. Thanks to the project restructuring carried out in December 2018, the PIT is allowed to finance the same kind of investments than the LAIF for the subprojects outside the LAIF demonstrative territories. This complementary of the WBG/AECID project and the LAIF Grant is seen by all the stakeholders (MAG, beneficiaries, WBG and Spanish Cooperation) of great value. 11/13/2019 Page 2 of 9 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial High High Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Substantial Moderate Moderate Stakeholders Moderate Substantial Substantial Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Enhance incomes of small and medium sized farm households by supporting more productive and climate- IN00754729 11/13/2019 Page 3 of 9 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) ►Water users provided with new/improved irrigation and drainage services (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 467.00 996.00 9,000.00 Date 03-Feb-2015 15-Apr-2019 17-Oct-2019 30-Jun-2021 This indicator measures the number of water users who are provided with irrigation and drainage services under the project. 996 water users have received the improved services (from Group 1's subprojects and some of Group 2's already completed). 3,181 water users from Group 2 are benefitting from works and services that will improve the irrigation and drainage services. Works are expected to be completed by March 2020. Part of the 1,022 water users from Group 3 are already receiving the benefits of the project through on- Comments: going works. All the subprojects are expected to be concluded by July 2020 (except one subproject, cerezal, to be concluded by December 2020). By current closing date, the project will have benefitted around 7,500 families, representing 83% of the target (9,000), with the completion of all Groups of subprojects up to Group 5. The last group of subprojects (group 6) will allow to fully achieve and probably to overpass the target, with 9,800 families potentially benefitted. IN00754730 Water users provided with irrigation and drainage services - female (number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 119.00 483.00 1,800.00 Date 03-Feb-2015 15-Apr-2019 17-Oct-2019 30-Jun-2021 IN00754856 ►Increase of Annual Net Income on area benefited by project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 500.00 570.00 570.00 800.00 Date 03-Feb-2015 10-May-2019 17-Oct-2019 30-Jun-2021 Calculated on the area benefited by the project, only for agricultural activities within the household, and in real terms. This indicator has not been modified with 2018 restructuring, but it has been clarified that the rate at which expected income increases (10%, 30% and 60%) will be expected according to the time elapsed Comments: after work reception (1, 2 and 3 years respectively after the date of the provisional work reception). This ISR shows 14.6% of increase of net revenue 1 year after subproject's completion for Group, more than the 10% target. A second round of data collection is scheduled in November to assess the trends for Group 1. Overall Comments PDO For the indicator of Water Users provided with new/improved irrigation services, even if only 11% of the target have effectively received the improved service at the date of the last SPN mission, there are 21 subprojects with on-going works (out of 63 subprojects). Consequently, it is expected that 52% of the target (4,670 families) will benefit from the improved services by the end of FY20. By June 2021, current closing date, it is expected that 8,000 families will have been benefitted by the improvement of irrigation services (83% of the target). 11/13/2019 Page 4 of 9 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) Regarding the increase of net revenue, the project is on track with 14.6% of increase after one year of subproject's completion (the intermediary target is 10% after 1 year). The final target of 60% of increase (from USD 500/ha to USD800/ha) applies 3 years after subproject's completion (cf. definition of the indicator in December 2018 restructuring). Intermediate Results Indicators by Components Component 1: Investments for climate-smart sub-projects IN00754857 ►Area provided with irrigation and drainage services (ha) (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 850.00 1,767.00 10,500.00 Date 03-Feb-2015 15-Apr-2019 17-Oct-2019 30-Jun-2021 This indicator measures the total area of land provided with irrigation and drainage services under the project, including in (i) the area provided with new irrigation and drainage services, and (ii) the area provided with improved irrigation and drainage services, expressed in hectare (ha). 850 ha have already received the improved services (Group 1). 917 additional ha from Group 2 are already completed. The rest of Group 2'subprojects (representing 1,485ha) is benefitting from works and services that will improve the irrigation and drainage services. Comments: Works are expected to be completed by March 2020. 1,631 additional ha from Group 3 will receive benefits from the project by July 2020 (except Cerezal's subproject). By the current closing date (June 2021), it is expected that 9,500 ha will have improved irrigation and drainage service (87% of the target). IN00754860 Area provided with irrigation and drainage services - New (ha) (Hectare(Ha), Corporate Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200.00 Date 03-Feb-2015 17-Oct-2018 17-Oct-2019 30-Jun-2021 IN00754863 Area provided with irrigation and drainage services - Improved (ha) (Hectare(Ha), Corporate Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 850.00 1,767.00 10,300.00 Date 03-Feb-2015 17-Oct-2018 17-Oct-2019 30-Jun-2021 Component 2: Capacity building for institutional stakeholders and beneficiaries’ organizations IN00754858 ►Clients who have adopted an improved agr. technology promoted by the project (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 467.00 264.00 2,700.00 Date 03-Feb-2015 15-Apr-2019 17-Oct-2019 30-Jun-2021 11/13/2019 Page 5 of 9 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) This indicator measures the number of clients of the project who have adopted an improved agricultural technology promoted by the project. There was a mistake in last reporting. Out of the beneficiaries of Group 1 (467 farmers), only 264 have already received the services provided by the Technical Assistance for production and marketing (PCAT) Comments: and have adopted improved technology. It is expected that the remainder of Group 1 and the beneficiairies of Group 2 (3,181 additional farmers) will received the provision of services of Technical Assistance (PCAT) services will be concluded by the end of July 2020. IN00754861 Clients who adopted an improved agr. technology promoted by project – female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 119.00 85.00 540.00 Date 03-Feb-2015 15-Apr-2019 17-Oct-2019 30-Jun-2021 IN00754862 ►Increase of Land use intensity (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 7.00 15.00 Date 03-Feb-2015 15-Apr-2019 17-Oct-2019 30-Jun-2021 Ratio of: Cultivated area divided by Total arable land (in %). Could be more than 100% if double cropping. The data collection for Group 1 has showed an increase of 7% of Land Use intensity after one year of Comments: subproject's completion, which represents 47% of the target (15% of increase compared to baseline) IN00754864 ►Sub-projects with post-project community engagement or O&M arrangements (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18.00 18.00 90.00 Date 03-Feb-2015 15-Apr-2019 17-Oct-2019 30-Jun-2021 This indicator is likely to be most relevant for CDD-type projects and measures the existence of specific arrangements created under the project to ensure ownership by project beneficiaries. No changes of target with the 2018 restructuring. The target is 57 subprojects (90% out of a total of 63 Comments: subprojects). No changes for the ISR, 10 subprojects have signed an Agreement for the transfer of O&M responsibilities (Acta de Transferencia). Only Voluntad de Dios from Group 1 have not signed the agreement. IN00754866 Sub-projects that are expected to have a mechanism for post-completion operation (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 57.00 IN00754865 ►Operational water user associations created and/or strengthened (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 63.00 Date 03-Feb-2015 15-Apr-2019 17-Oct-2019 30-Jun-2021 Comments: This indicator measures the number of water user associations created and/or strengthened under the project that are operational. 11/13/2019 Page 6 of 9 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) Before the 2018 restructuring, the target was 88 organizations. No changes for this ISR. Only Group 1 has their WUAs strenghtened. IN00754867 ►Number of beneficiaries’ organizations that received support from another MAG’s or GAD’s Project or Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 50.00 Date 02-Mar-2015 15-Apr-2019 17-Oct-2019 30-Jun-2021 This indicator aims at measuring the cooperation and coordination of Project and Program. Before the 2018 restructuring, the target was 74 organizations. Comments: No changes for this ISR. IN00754868 ►Client days of training provided (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21,606.00 22,962.00 45,000.00 Date 03-Feb-2015 10-May-2019 17-Oct-2019 30-Jun-2021 This indicator measures the number of client days of training provided i.e. the number of clients who completed training multiplied by the duration of training expressed in days. Comments: Before the 2018 restructuring, the target was 63,000 client-days. IN00754869 Client days of training provided - Female (number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5,690.00 8,670.00 9,000.00 Date 03-Feb-2015 10-May-2019 17-Oct-2019 30-Jun-2021 IN00754870 ►Number of organizations implementing proces of value addition (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 9.00 20.00 Date 28-Dec-2018 07-May-2019 17-Oct-2019 30-Jun-2021 New indicator included after the 2018 restructuring. Thanks to the action of the project on Component 2, 9 subprojects are now receiving benefits of process Comments: of added value downstream the Value Chain (packaging, creation of brand, etc). IN00754871 ►Percentage of beneficiaries who attended at least 70% of the training on business management for organizations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 78.00 80.00 Date 28-Dec-2018 07-May-2019 17-Oct-2019 30-Jun-2021 New indicator introduced after the 2018 restructuring. Comments: Attendance to training is high for the beneficiaries of Group 1 (PCATs) 11/13/2019 Page 7 of 9 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) Component 3: Project Management IN00754859 ►Number of training days provided to MAG’s or GAD’s staff (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 232.00 232.00 1,920.00 Date 03-Feb-2015 10-May-2019 10-May-2019 30-Jun-2021 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P151963 IBRD-85150 Effective USD 80.00 65.00 15.00 13.12 51.88 20% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P151963 IBRD-85150 Effective 15-Jul-2015 09-Oct-2015 16-Dec-2015 30-Jun-2021 30-Jun-2021 Cumulative Disbursements 11/13/2019 Page 8 of 9 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) Restructuring History Level 2 Approved on 14-Dec-2018 Related Project(s) There are no related projects. 11/13/2019 Page 9 of 9