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 Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 8 | ARCHIVED on 23-May-2019 | ISR36649 | 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 Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions 1- General project status: A project restructuring has been processed to reflect the conclusions of the Mid-term Review mission carried out in October 2018, including the government's request to cancel USD 15 million of the WBG loan. No loan cancellation is envisaged for the Spanish cofinancing. Despite the challenges faced by the PIU and MAG during the 2018 calendar year that translated into modest financial and technical execution (e.g., insufficient budget allocations and institutional disputes over control of irrigation functions), the project managed to strengthen the pipeline of subprojects for the three next years. 5/23/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) The portfolio of subprojects now includes 63 subprojects, benefitting 9,000 families in 10,500 ha. The 63 subprojects in the subprojects portfolio have been classified into five groups according to their readiness, as follows: - Group 1: 11 subprojects (representing USD 4.15m. for works, supervision, and technical assistance to benefit 467 families with the modernization of 850 ha). These subprojects have been completed. - Group 2: 14 subprojects (representing USD13.4m. to benefit 3,360 families with the modernization of 2,400 ha are under - Group 3: 12 subprojects (representing USD11 m. to benefit 1,050 families with the modernization of 1,570 ha). These subprojects are well- advanced; works and services will be procured starting June 2019. - Group 4: 14 subprojects (representing USD22.8 m. to benefit 2,000 families with the modernization of 3,000 ha). These subprojects are under preparation at the PIU/MAG level. - Group 5: 12 subprojects (representing USD18.9 m. to benefit 2,440 families with the modernization of 2,800 ha). These subprojects are under preparation at the PIU level. The PIU will hire consultants to prepare feasibility studies for six subprojects; the remaining feasibility studies will be prepared by MAG and PIU’s human resources. 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); (iii) Groups 3: 5 subprojects have been identified for the Spanish cofinancing and are under preparation or have already received the No Objection (Sucuso in Chimborazo). This pipeline of 8 subprojects (Groups 1 and 2) represents an investment of US$ 4.4 m. (works, studies and supervision). The AECID is also is 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. 5/23/2019 Page 2 of 8 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 5/23/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) PDO Indicators by Objectives / Outcomes Enhance incomes of small and medium sized farm households by supporting more productive and climate- IN00690818 ►Water users provided with new/improved irrigation and drainage services (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 467.00 467.00 9,000.00 Date 03-Feb-2015 17-Oct-2018 15-Apr-2019 30-Jun-2021 This indicator measures the number of water users who are provided with irrigation and drainage services under the project. 467 water users have received the improved services (Group 1). 3,359 water users from Group 2 are benefitting from works and services that will improve the irrigation and Comments: drainage services. Works are expected to be completed by December 2019. Total will then be 3,826 water users. 1,010 water users from Group 3 will receive benefits from the project by the end of second quarter of FY 2020. Total will then be 4,836 water users. IN00690819 Water users provided with irrigation and drainage services - female (number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 119.00 119.00 1,800.00 Date 03-Feb-2015 17-Oct-2018 15-Apr-2019 30-Jun-2021 IN00690820 ►Increase of Annual Net Income on area benefited by project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 500.00 500.00 570.00 800.00 Date 03-Feb-2015 17-Oct-2018 10-May-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 Comments: expected income increases (10%, 30% and 60%) will be realized, taking into consideration the date of the provisional acceptance of works (1, 2 and 3 years respectively after the date of the provisional work reception) Overall Comments PDO The assessment of the 11 subprojects showed an increase of 14% of annual net income (one year after the start- up of the modernized irrigation system), thus the value of income is increased from US$ 500 to 570. The number of water users reflect the total of Group 1's beneficiaries where the modernization of irrigation systems has been completed. Intermediate Results Indicators by Components 5/23/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) Component 1: Investments for climate-smart sub-projects IN00690846 ►Area provided with irrigation and drainage services (ha) (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 850.00 850.00 10,500.00 Date 03-Feb-2015 17-Oct-2018 15-Apr-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 received the improved services (Group 1). 2,400 additional ha from Group 2 are benefitting from works and services that will improve the irrigation Comments: and drainage services. Works are expected to be completed by december 2019. Total will then be 3,250 ha. 1,570 additional ha from Group 3 will receive benefits from the project by the end of second quarter of FY 2020. Total will then be 4,820 ha. IN00690849 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-2018 30-Jun-2021 IN00690851 Area provided with irrigation and drainage services - Improved (ha) (Hectare(Ha), Corporate Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 850.00 850.00 10,300.00 Date 03-Feb-2015 17-Oct-2018 17-Oct-2018 30-Jun-2021 Component 2: Capacity building for institutional stakeholders and beneficiaries’ organizations IN00690847 ►Clients who have adopted an improved agr. technology promoted by the project (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 467.00 467.00 2,700.00 Date 03-Feb-2015 17-Oct-2018 15-Apr-2019 30-Jun-2021 This indicator measures the number of clients of the project who have adopted an improved agricultural technology promoted by the project. The beneficiaries of Group 1 (467 farmers) already received the improved irrigation and drainages services and are benefitted by the Technical Assistance for production and marketing (PCAT). Comments: It is expected that Group 2 (3,359 additional farmers) will received the improved I&D services by December 2019 and then the Technical Assistance (PCAT) services will be concluded by the end of the second quarter of FY2020. IN00690852 Clients who adopted an improved agr. technology promoted by project – female (Number, Custom Breakdown) 5/23/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 119.00 119.00 540.00 Date 03-Feb-2015 17-Oct-2018 15-Apr-2019 30-Jun-2021 IN00690850 ►Increase of Land use intensity (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 03-Feb-2015 17-Oct-2018 15-Apr-2019 30-Jun-2021 Ratio of: Cultivated area divided by Total arable land (in %). Could be more than 100% if double cropping. Comments: No change with the 2018 restructuring. IN00690853 ►Sub-projects with post-project community engagement or O&M arrangements (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14.00 18.00 90.00 Date 03-Feb-2015 17-Oct-2018 15-Apr-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. Comments: No changes of target with the 2018 restructuring. IN00690855 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 9.00 10.00 57.00 IN00690854 ►Operational water user associations created and/or strengthened (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 11.00 63.00 Date 03-Feb-2015 17-Oct-2018 15-Apr-2019 30-Jun-2021 This indicator measures the number of water user associations created and/or strengthened under the project that are operational. Comments: Before the 2018 restructuring, the target was 88 organizations. IN00690856 ►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 17-Oct-2018 15-Apr-2019 30-Jun-2021 This indicator aims at measuring the cooperation and coordination of Project and Program. Comments: Before the 2018 restructuring, the target was 74 organizations. IN00690857 5/23/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) ►Client days of training provided (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4,256.00 21,606.00 45,000.00 Date 03-Feb-2015 17-Oct-2018 10-May-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. IN00690858 Client days of training provided - Female (number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,404.00 5,690.00 9,000.00 Date 03-Feb-2015 17-Oct-2018 10-May-2019 30-Jun-2021 IN00701240 ►Number of organizations implementing proces of value addition (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 2.00 20.00 Date 28-Dec-2018 -- 07-May-2019 30-Jun-2021 New indicator included after the 2018 restructuring. Comments: IN00701256 ►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 80.00 Date 28-Dec-2018 -- 07-May-2019 30-Jun-2021 New indicator introduced after the 2018 restructuring. Comments: Component 3: Project Management IN00690848 ►Number of training days provided to MAG’s or GAD’s staff (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 232.00 1,920.00 Date 03-Feb-2015 17-Oct-2018 10-May-2019 30-Jun-2021 Data on Financial Performance 5/23/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Ecuador - Sustainable Family Farming Modernization Project (P151963) 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 8.86 56.14 14% 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 Restructuring History Level 2 Approved on 14-Dec-2018 Related Project(s) There are no related projects. 5/23/2019 Page 8 of 8