The World Bank Report No: ISR14007 Implementation Status & Results Honduras Honduras Rural Competitiveness Project (P101209) Public Disclosure Copy Operation Name: Honduras Rural Competitiveness Project (P101209) Project Stage: Implementation Seq.No: 14 Status: ARCHIVED Archive Date: 08-Apr-2014 Country: Honduras Approval FY: 2008 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 17-Jun-2008 Original Closing Date 30-Nov-2015 Planned Mid Term Review Date 04-Feb-2013 Last Archived ISR Date 22-Feb-2014 Effectiveness Date 28-May-2010 Revised Closing Date 30-Nov-2015 Actual Mid Term Review Date 04-Feb-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective of COMRURAL is to contribute to increased productivity and competitiveness among organized rural small-scale producers through their participation in productive alliances. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Support for Productive Alliances 9.00 Productive Investments 39.60 Project Coordination, Monitoring and Evaluation 2.60 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The Honduras Rural Competitiveness Project, known locally as COMRURAL, started its implementation in May 2010, with the goal of reaching some 6,700 rural producers with investments that will boost market participation, agricultural productivity and competitiveness. After five successful calls for proposal, some 156 Business Profiles have been submitted by eligible Producer Organizations across the seven Western Departments targeted by the project. Eighty-five Business Plans have been approved and are receiving financing under the project. Some 6.600 rural producers participate in these 85 Business Plans across value chains such as coffee, beekeeping, fruits and horticulture. Taken Page 1 of 6 The World Bank Report No: ISR14007 together, these approved Business Plans represent about US$28 million, with about half being contributed by the rural producers, either in the form of equity capital or external loans from financial institutions. These results show the Project is on the right track towards achieving its PDOs and going beyond in leveraging private participation in the sector. Locations Public Disclosure Copy Country First Administrative Division Location Planned Actual Honduras Departamento de Santa Barbara Departamento de Santa Barbara Honduras Departamento de Ocotepeque Departamento de Ocotepeque Honduras Departamento de Lempira Departamento de Lempira Honduras Departmento de La Paz Departmento de La Paz Honduras Departamento de Intibuca Departamento de Intibuca Honduras Departamento de Copan Departamento de Copan Honduras Departamento de Comayagua Departamento de Comayagua Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target 10% increase in the value of gross sales of the Percentage Value 0.00 0.00 10.00 rural producer organizations based on Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 implementation of the business plan. Comments This indicator will be measured at intervals following the implementation of Business Plans. At least 80% of the producers with approved Percentage Value 0.00 80.00 business plans are satisfied with the project. Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 Comments Will be measured as Business Public Disclosure Copy Plan implementation proceeds. Private actors invest at least 12.05 million USD Number Value 0.00 13.15 12.05 as loans to producer organizations. Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 Comments US$13.15 million are being invested in Business Plans by Rural Producer Organizations, either as own- equity or loans through financial institutions. Page 2 of 6 The World Bank Report No: ISR14007 Rural producers participating in the project Percentage Value 0.00 0.00 20.00 experience 20% increase in land and labor Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 productivity Comments This indicator will be Public Disclosure Copy measured at intervals following the implementation of Business Plans. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target 150 productive alliances under implementation Number Value 0.00 85.00 120.00 Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 Comments 85 approved Business Plans End target reduced to 120 per are receiving financing. Restructuring in 2011. At least 6,700 rural producers benefitted from Number Value 0.00 6600.00 5280.00 project financing. Date 30-Jul-2008 09-Jul-2013 30-Nov-2015 Comments Some 6,600 rural producers are among the 85 approved Business Plans (125% of target value). MIS in place and in function. Text Value No Yes Date 30-Jul-2008 09-Jul-2013 30-Nov-2015 Comments MIS is functioning and providing timely monitoring data for supervision of approved Business Plans. Satisfactory financial audits Text Value No Yes Date 30-Jul-2008 09-Jul-2013 30-Nov-2015 Comments This indicator was changed to 2010-2011 External Audit, be more clear. received by the Bank in Public Disclosure Copy December 2012, was Clean. 2012 External Audit was submitted for the Bank's review on September 2013. Timely preparation of semi-annual reports. Text Value No Yes Yes Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 Comments Most recent semi-annual report was received in February 2014. Page 3 of 6 The World Bank Report No: ISR14007 Compliance with Project Operational Manual, Text Value No Yes Yes including Safeguard and Anti-Corruption Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 policies. Comments MTR confirmed compliance Public Disclosure Copy with Project Operational Manual. 215 rural producer organizations have Number Value 0.00 156.00 175.00 produced a profile that is approved to become Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 a business plan. Comments 156 Rural Producer Organizations have presented approved Business Profiles to date. At least 15 technical service providers are Number Value 0.00 52.00 15.00 approved to provide support to rural producer Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 organizations Comments 52 TSPs have been certified to provide TA to Rural Producer Organizations in the preparation of Business Profiles and subsequent Business Plans. 85% satisfaction among rural producer Percentage Value 0.00 96.00 85.00 organizations regarding technical assistance Date 30-Jul-2008 06-Mar-2014 30-Jun-2015 from service providers. Comments Satisfaction, as measured through evaluation, is 100% with vegetable business plans, 96% with specialty coffee and 87% for fruits. 80% of the investments identified in the Percentage Value 0.00 0.00 80.00 business plans are completed on schedule Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 Comments Indicator will be measured post-implementation of Public Disclosure Copy Business Plans. At least 70% of the business plans inthe project Percentage Value 0.00 0.00 70.00 are implemented using good environmental Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 practices, as proposed in the business plan. Comments The indicator was operationalized during the Feb 2014 mission with the objective of getting a weighted average of the key licensingand good practice aspects of environmental Page 4 of 6 The World Bank Report No: ISR14007 management of the Business Plans. The first results will be presented in the next progress report. Public Disclosure Copy At least 70% of the business plans in the Percentage Value 0.00 0.00 70.00 project successfully implement measures that Date 30-Jul-2008 06-Mar-2014 30-Jun-2015 target the youth and indigenous communities, Comments About one-third of approved when applicable, as identified in the business plan. Business Plans have indigenous participation (Lenca, Chorti) and youth participation is also significant (about 10% of participating rural producers). Baseline data in the MIS is available for each Text Value No Yes Yes approved business plan. Date 30-Jul-2008 06-Mar-2014 30-Nov-2015 Comments Data on Financial Performance (as of 29-Jan-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P101209 IDA-44650 Effective 17-Jun-2008 17-Sep-2008 28-May-2010 30-Nov-2015 30-Nov-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P101209 IDA-44650 Effective XDR 18.40 14.00 4.40 10.23 3.77 73.00 Disbursement Graph Public Disclosure Copy Page 5 of 6 The World Bank Report No: ISR14007 Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6