The World Bank Report No: ISR9883 Implementation Status & Results Kyrgyz Republic Agribusiness & Marketing Project (P049724) Public Disclosure Copy Operation Name: Agribusiness & Marketing Project (P049724) Project Stage: Implementation Seq.No: 17 Status: ARCHIVED Archive Date: 31-Mar-2013 Country: Kyrgyz Republic Approval FY: 2005 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 14-Dec-2004 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date 30-Mar-2009 Last Archived ISR Date 25-Feb-2013 Effectiveness Date 02-May-2005 Revised Closing Date 31-Mar-2013 Actual Mid Term Review Date 13-Apr-2009 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to assist the Borrower in increasing and enhancing the business activities of the Beneficiary agribusinesses supporting the Borrower#s economic growth. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost MARKET DEVELOPMENT 2.64 ACCESS TO CREDIT 5.27 PROJECT MONITORING AND ADVISORY 0.02 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The project has achieved good results on the ground, in particular: Market Development Component. This component provided technical assistance, advice and training to the agribusiness sector companies, impacts of which are expected to be long- term, in support of improved competitiveness and sustainability of the sector. The Agribusiness Competitiveness Center (ABCC) supported 42 agri-businesses, which received technical assistance and advice on a variety of aspects of running their companies, resulting in the development of 68 new products, improvements in the technological processes, Page 1 of 6 The World Bank Report No: ISR9883 improvement in the financial management in the companies, entering of new markets, and increased sales and profits in the client companies. The ABCC's Market Development Service (MDS) successfully facilitated trading and promotion of Kyrgyz agricultural products both domestically and abroad. Since its inception in 2006, the MDS facilitated 1,971 client contacts on various matters, including 142 trade deals for almost 54,000 tons of agricultural products for a total value of US$17.5 million (of which 89% were sold to export markets). The project also supported establishment of an Information and Marketing Service Platform, which provides information on buyers and sellers, new equipment and other relevant Public Disclosure Copy issues to its users for a fee. The project also strengthened the country's cooperative movement, as more than 250 cooperatives were trained in various aspects of cooperative management principles, business planning and financial management (and many cooperatives were subsequently able to meet the requirements of the participating lenders and benefit from loans and/or grants under Component 2 of the project). Under the public sector capacity building program, awareness of the public sector - relevant ministries and agencies - on a number of key issues faced by the private agribusiness sector was raised through an extensive training program, which included such subjects as illegal payments faced by exporters, export requirements of the neighboring countries, etc. On the public investment side, the project supported setting up of the Food Technology Training Center (FTTC) under the Kyrgyz State Technical University (KSTU). The establishment of the center is in the final stages and is expected to be opened by the President of the Kyrgyz Republic on March 20, 2013. Awareness of the public sector - relevant ministries and agencies - on a number of key issues faced by the private agribusiness sector was raised through an extensive training program, which included such subjects as illegal payments faced by exporters, export requirements of the neighboring countries, etc. The project financed the complete reconstruction and remodeling of an old industrial type building into a training center with processing lines, laboratories, training classes and a conference room. It is equipped with processing lines for meat, dairy and cereals, as well as with chemical and microbiology laboratories. The FTTC will be used to train both university students and practitioners from the food processing industry. Under the Access to Credit Component, the credit line was fully disbursed, and the commercial bank training activities were completed very cost-effectively and far exceeding the original targets. A total of 108 sub-loans were financed under the project directly from the Credit Line (including 11 sub-loans to cooperatives) and from reflows, amounting to almost US$6.76 million equivalent. The total investments mobilized into the agribusiness sector amount to about US$14.8 million equivalent, including the required co-financing by Participating Financial Institutions and beneficiaries. Fifty-eight matching grants totaling US$0.8 million were granted to cooperatives towards co-financing of their investments. An extensive training program for loan officers of commercial banks was also provided under the project, with 883 loan officers and branch managers trained in various subjects, including Investment Lending and Leasing in Agriculture, Agricultural Structure Finance Products and Environmental Aspects of Lending. As a result of these trainings, the skills of the staff of the participating commercial banks in appraisal of long-term agricultural projects were improved, and awareness raised on a number of innovative financial products to help unlock the potential of the agricultural sector. Under the Project Monitoring and Advisory Office Component, the Market Conditions Analysis Unit (MCAU) collected and provided the Ministry of Agriculture with market price information and market analysis on key food items. These reports provided the necessary information for the Ministry in support of key policy decision-making. Some of the information was provided to ABCC, to be posted regularly on the ABCC website for the use by the private sector. Overall, it is estimated that, towards achievement of the project's development objective, the project's beneficiaries attained nominal increases in their sales between 15% and 169%, and nominal increases in their profits between 25% and 91% (depending on the company). Locations No Location data has been entered Public Disclosure Copy Results Project Development Objective Indicators Page 2 of 6 The World Bank Report No: ISR9883 Indicator Name Core Unit of Measure Baseline Current End Target Increase in sales of agribusinesses supported Percentage Value 0.00 85.00 25.00 by the Project, nominal Date 02-May-2005 23-May-2012 30-Nov-2012 Public Disclosure Copy Comments No agribusinesses were Target exceeded more than 3 supported before the start of times. Data for end-2011; the project data for 2012 in the process of verification. Increase in profits of agribusinesses supprted Percentage Value 0.00 40.00 20.00 by the Project, nominal Date 02-May-2005 23-May-2012 30-Nov-2012 Comments No agribusinesses supported Results are twice the end before the project target. Data for end-2011; data for 2012 in the process of verification. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Volume (in US$) of trade deals facilitated Amount(USD) Value 0.00 17500000.00 2000000.00 Date 02-May-2005 23-May-2012 30-Nov-2012 Comments MDS was set up under the End target significantly project exceeded. Number of agribusinesses receiving assistance Number Value 0.00 42.00 40.00 from ABCC Date 02-May-2005 23-May-2012 30-Nov-2012 Comments No enterprises supported End target exceeded. before the project 20 were supported under the first TA package; 24 (including 17 new) under the second TA package; 18 (including 5 new) under the second package extension Number of key business environment Number Value 0.00 3.00 3.00 Public Disclosure Copy constraints identified and tackled Date 02-May-2009 23-May-2012 30-Nov-2012 Comments End target achieved. Two VAT calculation on agricultural produce issues (for exports to Kazakhstan and exports to Russia) tackled;one more issue - on illegal payments in key Page 3 of 6 The World Bank Report No: ISR9883 selected transit corridors being monitored Number of public service staff trained Number Value 0.00 1070.00 50.00 Public Disclosure Copy Date 02-May-2005 23-May-2012 30-Nov-2012 Comments End target significantly exceeded. Public sector staff trained during seminars and presentations-discussions. Total volume of investments attracted to Amount(USD) Value 0.00 14861509.00 10000000.00 beneficiary agribusinesses Date 02-May-2009 23-May-2012 30-Nov-2012 Comments End target exceeded by almost 50%. Number of loan officers trained in the banking Number Value 0.00 883.00 150.00 sector Date 02-May-2009 23-May-2012 30-Nov-2012 Comments End target significantly exceeded. Including: 380 in Investment Lending and Leasing, 337 in Structured Finance, 166 in Environmental Training Number of Grants to producer organizations/ Number Value 0.00 58.00 50.00 cooperatives Date 17-Jul-2009 24-Jul-2012 30-Nov-2012 Comments 58 grants have been disbursed in the total amount of US$800,000 equivalent. Target exceeded. Number of market analysis reports prepared Number Value 0.00 52.00 20.00 and disseminated Date 02-May-2005 23-May-2012 30-Nov-2011 Comments Market Conditions Analysis End target significantly Unit, which prepares reports, exceeded. Public Disclosure Copy set up under the project Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 5032678.00 2500000.00 Date 02-May-2005 23-May-2012 30-Nov-2012 Comments Disbursements for agribusiness development. End target significantly exceeded. Volume of Bank Support: Institutional Amount(USD) Value 0.00 564646.00 200000.00 Development - SME Date 02-May-2005 23-May-2012 30-Nov-2012 Page 4 of 6 The World Bank Report No: ISR9883 Comments Project-specific TA to the banking sector. End target significantly exceeded. Public Disclosure Copy Data on Financial Performance (as of 07-Mar-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P049724 IDA-40150 Effective 14-Dec-2004 03-Feb-2005 02-May-2005 31-Dec-2010 31-Mar-2013 P049724 TF-53554 Effective 03-Feb-2005 03-Feb-2005 02-May-2005 31-Dec-2010 31-Mar-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P049724 IDA-40150 Effective USD 8.10 8.10 0.00 8.23 0.20 102.00 P049724 TF-53554 Effective USD 4.75 4.75 0.00 4.75 0.00 100.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The project will be closed on March 31, 2013. Restructuring History Page 5 of 6 The World Bank Report No: ISR9883 Country Director Approval on 17-Jul-2009, Level two Approved on 17-Dec-2010, Level two Approved on 28-Dec-2010, Level two Approved on 08-Dec-2011, Level two Approved on 23-Dec-2011, Level two Approved on 28-May-2012, Level two Approved on 21-Nov-2012, Level two Approved on 20-Feb-2013 Public Disclosure Copy Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6