The World Bank Report No: ISR12654 Implementation Status & Results Bhutan Decentralized Rural Development Project (P087150) Public Disclosure Copy Operation Name: Decentralized Rural Development Project (P087150) Project Stage: Implementation Seq.No: 16 Status: ARCHIVED Archive Date: 06-Dec-2013 Country: Bhutan Approval FY: 2005 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 01-Mar-2005 Original Closing Date 30-Sep-2009 Planned Mid Term Review Date Last Archived ISR Date 12-Jun-2013 Effectiveness Date 15-Apr-2005 Revised Closing Date 30-Dec-2013 Actual Mid Term Review Date Project Development Objectives Decentralized Rural Development Project (P087150) Project Development Objective (from Project Appraisal Document) The objective of the proposed Project is to improve market access and increase agricultural output for rural communities in selected areas of Bhutan. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Component(s) Component Name Component Cost Rural Infrastructure 7.52 Renewable Natural Resources Centers and Support for Improved Technologies and Marketing of 2.67 Rice, Maize and Potato Institutional Strengthening 1.01 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating NA Implementation Status Overview This ISR reflects findings and recommends of the recent implementation support mission which took place from September 23-October 4, 2013. The DRDP-AF is on course to achieving and in most cases exceeding its targets in improving rural infrastructure (irrigation canals and farm roads) and food crop production (rice, maize and potato). To date the project has benefited over 8272 households (target 6700 households) from improved infrastructure and over 8703 households (target 8500 households) through improved extension Page 1 of 6 The World Bank Report No: ISR12654 services. As of September 2013, 44 km of farm roads have been improved exceeding the end of project target of 15 km. Similarly, 256.60 km out of a required 200 km of irrigation canals have been rehabilitated far exceeding the initial target However despite the significant progress made towards achieving the project development objectives (PDO) the mission was informed that a significant amount of project funds (USD Public Disclosure Copy 1.80 million) will remain unused at project closure on December 31, 2013. The reason for the significant savings is a result of implementation efficiencies and exchange rate gains due to a 55% depreciation of the Bhutan Ngultrum (BTN), resulting in the project gaining an additional 110 million BTN. Locations Country First Administrative Division Location Planned Actual Bhutan Chhukha Dzongkhag Chhukha Dzongkhag Bhutan Wangdue Phodrang Dzongkhag Wangdue Phodrang Dzongkhag Bhutan Dagana Dzongkhag Drukgyegang Bhutan Zhemgang Dzongkhag Nangkor Bhutan Chhukha Dzongkhag Chabchha Bhutan Dagana Dzongkhag Khiphisa Bhutan Trongsa Dzongkhag Nubi Bhutan Trongsa Dzongkhag Bjakteng Bhutan Tsirang Dzongkhag Kikhorthang Bhutan Tsirang Dzongkhag Beteni Bhutan Wangdue Phodrang Dzongkhag Ruepaisa Bhutan Wangdue Phodrang Dzongkhag Nahi Bhutan Zhemgang Dzongkhag Trong Public Disclosure Copy Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Average time taken to walk to motorable road Text Value Average time = 6.5 hours 1.5 hours on average Date 06-May-2005 29-Mar-2013 30-Dec-2013 Comments Achieved. Revised EOP date Source: Socio-economic Survey 2010 Page 2 of 6 The World Bank Report No: ISR12654 Increase in food crop production Text Value varies by crop (aggregate 47% (rice) and 55% (maize) 15% increase index = 100) for DRDP target geogs Date 06-May-2005 04-Oct-2013 30-Dec-2013 Public Disclosure Copy Comments New baseline to be Revised EOP date established for additional geogs under the AF Increase in cash crop production Text Value varies by crop (aggregate 76% increase in potato 15% increase index = 100) production in DRDP target Date 06-May-2005 04-Oct-2013 30-Dec-2010 Comments New baseline to be Revised EOP date established for additional geogs under the AF. Direct project beneficiaries Number Value 0.00 13805.00 15200.00 Date 31-Dec-2005 29-Mar-2013 31-Dec-2013 Comments 8272 HHs have benefited from improved infrastructure. 8703 HH benefited by extension services. Out of the total beneficiaries, 48%of them are female. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Farm roads constructed (km) Text Value 0 95.5 103.54 (revised and corrected) Date 06-May-2005 04-Oct-2013 31-Dec-2013 Comments Achieved during original Revised EOP date DRDP. No new construction under AF New irrigation channels constructed (km) Text Value 0 44.3 44.3 km (revised) Public Disclosure Copy Date 06-May-2005 04-Oct-2013 31-Dec-2013 Comments Achieved during original DRDP. No new construction under AF Irrigation channels rehabilitated (km) Text Value 0 449.60 393 (revised) Date 06-May-2005 04-Oct-2013 31-Dec-2013 Comments 193 km. were achieved during original DRDP. 256.60 kms. of main channels have been Page 3 of 6 The World Bank Report No: ISR12654 rehabilitated through AF. Rehabilitation works will continue till June 2013. Timely submission of accurate FM accounts Text Value n/a 100 100% Public Disclosure Copy Date 06-May-2005 04-Oct-2013 31-Dec-2013 Comments Financial reports are being submitted on time. Improved roads Number Value 0.00 43.95 15.00 Date 06-May-2005 29-Mar-2013 31-Dec-2013 Comments As of September 2013, 43.95 km of farm roads have been improved through AF. Adoption of new rice varieties Percentage Value 0.00 45.00 25.00 Date 04-Oct-2013 Comments Adoption rate for drought Current rice technology tolerant varieties is very low adoption rate is 35% but but it is high (45%) for other practically 0 for drought improved varieties. 3 (2 for resistant varieties. The target Adoption rate for drought refers to the overall adoption tolerant varieties is very low rate of drought resistant and but it is high (45%) for other improved varieties. improved varieties. 3 (2 for low altitude & 1 for high altitude) drought tolerant varieties were released in 2010 and seeds have been distributed to farmers this year. Adoption rate figures will be available in 2013. Replacement of maize seeds. Percentage Value 0.00 75.00 80.00 Date 04-Oct-2013 31-Dec-2013 Public Disclosure Copy Comments Activities started in 2010 and by March 2013 seed replacement rate reached 75%. 34.36 tons of maize seed was produced. 9 CBSP groups have been formed and supported in seven districts. These groups will produce and supply disease tolerant varieties to other farmers Page 4 of 6 The World Bank Report No: ISR12654 Production of potato basic seeds Percentage Value 799.30 700.00 Date 04-Oct-2013 31-Dec-2013 Comments 111.35 tons of basic seeds Public Disclosure Copy were produced in the last season (Jan-Feb 2013). 50.25 tons of seeds was distributed to farmers on a 1:1 return basis. With the increase in area (NSC farm) under cultivation and no. of contract farmers for seed production, the total production is expected to exceed the target. Data on Financial Performance (as of 03-Sep-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P087150 IDA-40400 Effective 01-Mar-2005 24-Mar-2005 15-Apr-2005 30-Sep-2009 30-Dec-2013 P087150 TF-98827 Effective 21-Mar-2011 21-Mar-2011 26-Apr-2011 30-Dec-2013 30-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P087150 IDA-40400 Effective USD 7.00 7.00 0.00 7.11 0.00 102.00 P087150 TF-98827 Effective USD 5.00 5.00 0.00 4.45 0.55 89.00 Disbursement Graph Public Disclosure Copy Page 5 of 6 The World Bank Report No: ISR12654 Public Disclosure Copy Key Decisions Regarding Implementation The project closing date is December 30, 2013. The project is performing well with regard to the project development objectives. Restructuring level 2 has been recommended in order to utilize the remaining unused project amount at project closure. Detailed of the project activities can be found on http://www.drdp.gov.bt/main/main.php Restructuring History Level two Approved on 21-Dec-2010 Related Projects P124075-Additional Financing for the Decentralized Rural Development Project Public Disclosure Copy Page 6 of 6