The World Bank Report No: ISR10319 Implementation Status & Results Serbia Transitional Agriculture Reform Project (P094212) Public Disclosure Copy Operation Name: Transitional Agriculture Reform Project (P094212) Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 07-Jun-2013 Country: Serbia Approval FY: 2007 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Agriculture Forestry and Water Management Key Dates Board Approval Date 20-Jun-2007 Original Closing Date 31-Dec-2011 Planned Mid Term Review Date 11-Nov-2010 Last Archived ISR Date 30-Dec-2012 Effectiveness Date 12-Nov-2008 Revised Closing Date 31-May-2013 Actual Mid Term Review Date 30-Mar-2010 Project Development Objectives Transitional Agriculture Reform Project (P094212) Project Development Objective (from Project Appraisal Document) To enhance the competitiveness of Serbian agriculture. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Transitional Agriculture Reform GEF Project (P093545) Global Environmental Objective (from Project Appraisal Document) To conserve the globally important eco-system in the Stara Planina mountainous area. Has the Global Environmental Objective been changed since Board Approval of the Program? Yes No Component(s) Public Disclosure Copy Component Name Component Cost 1. Strengthening the Agriculture and Rural Development Support System 3.48 Building Knowledge and Capacity of Agricultural Producers and Processors 5.85 Management of the Stara Planina Nature Park 3.00 Project Management and Coordination 0.87 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Page 1 of 9 The World Bank Report No: ISR10319 Previous Rating Current Rating Progress towards achievement of GEO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Public Disclosure Copy Overall Risk Rating Moderate Moderate Implementation Status Overview This is the final Project Implementation Status Report. The Project's Development Objective (PDO) has been only partially met, thus the overall progress toward enhancing the competitiveness of Serbian agriculture is moderately unsatisfactory. In spite of the challenges faced by the Project, it has achieved the following: (i) a paying agency has been established, equipped and trained, currently undergoing a self-assessment process as part of the EU accreditation process, but it does not yet disburse rural development funds in accordance with EU-compliant procedures; (ii) a small managing authority has been re-established, after multiple changes in its staff, physical location and organizational structure, and although under-resourced, it has a clear work program to develop a rural development strategy compliant with the EU Instruments of Pre-Accession Assistance for Rural Development (IPARD) by end-2013; (iii) research and extension grants were delivered, of which a substantial number provide a good basis for further technology dissemination; and (iv) the extension agents (both public and private) have undergone an extensive training program which has substantially strengthened the capacity of advisory services. Concerning GEF objective (GEO) to conserve globally important ecosystems, the areas under ecological management and/or restoration within the Stara Planina Nature Park and surrounding area have been expanded by: i) reversing the trends in pasture degradation, and depopulation and loss of rare breeds; ii) expanding organic agriculture production; iii) developing and implementing the Management Plan for the Nature Park (plan was developed in participatory manner), with a partial monitoring plan implemented by Srbijashume (Nature Park Management Authority) for forests, water, fishery and endangered species, but monitoring of pastures is still lacking. The Nature Park is currently in the accreditation process for the UN network for biosphere reserves, and the Stara Planina name obtained a protected geographical indication certificate. A number of small grants for rural tourism have been implemented and the number of visitors to the region is growing thus providing livelihood to the residents of the region. The renewed interest in livestock holding, with several young farmers increasing their flocks after having benefited from support to improve farming facilities through the grant program, is contributing to the sustainability of pasture lands and will mitigate the overgrowth of brush in the region. In September 2012 a further project closing date extension was sought and obtained, with May 31, 2013 established as the new closing date. The objective of the extension was to consolidate the achievements under the GEF-funded activities. Locations Country First Administrative Division Location Planned Actual Serbia Not Entered Zajecar Serbia Not Entered Pirot Public Disclosure Copy Serbia Not Entered Dimitrovgrad Serbia Not Entered Balkan Mountains Serbia Not Entered Serbia ✔ Serbia Not Entered Knjazevac Results Project Development Objective Indicators Page 2 of 9 The World Bank Report No: ISR10319 Indicator Name Core Unit of Measure Baseline Current End Target Improved MAFWM ability to disburse and track Text Value Information lacking to forecast No twice-yearly reporting with Twice yearly reports with rural development funds and to evaluate their uptake, reporting and analysis details on applications, details on applications, Public Disclosure Copy impact on the agri-food sector of subsidies; poor targeting, approvals/disbursements and approvals/disbursements and monitoring and verification. use of direct payments and use of direct payments and subsidies that is inline with subsidies in line with EU-IPARD requiremnets. EUIPARD requirements. Date 20-Jun-2007 27-Apr-2013 31-May-2013 Comments Serbia does not have access to EU-IPARD funds yet, due to delayed EU accession process. However, a compliant rural development strategy is under preparation; and a paper-based EU- compliant rural development and agrarian payment processes in place in the Paying Agency (PA) which was established in 2009. PA is under self-evaluation process which is the step toward accreditation for processing the EU funds. End target partially achieved. Gap to end target caused by overall delays in EU accession process and lack of commitment on part of the Ministry. Improved farmer access to appropriate Text Value Applied research and The applied research system Fully functioning competitive technology. extension services not is functioning on a applied research and adapted to serving the needs commpettive basis. The extension system with a Public Disclosure Copy of the rural population extension service system broad range of services however is made of providers. somewhat restructured extension services applying performance resource allocation rather then compettitive grant approach. Date 20-Jun-2007 27-Apr-2013 31-May-2013 Comments 2010 extension law created a public extension service, Page 3 of 9 The World Bank Report No: ISR10319 however, fee-based advisory services also available from certified private providers. Extension advisor registration Public Disclosure Copy law under preparation. End target partially achieved. Sustainability challenged by limited budget funding and competitive grant schemes not being streamlined by the MAFWM. Rising profitability and competitiveness of Text Value Baseline will be estimated ex- Direct project beneficiaries Increased income of farms Serbian agriculture ante by the M&E consultants have increased their competitiveness and farm income. Date 20-Jun-2007 27-Apr-2013 31-May-2013 Comments Achieved from an aggregate sector perspective. Rapidly rising agriculture exports confirm export competitiveness. Attribution to project unmeasured. Final project evaluation confirmed improved competitiveness of direct project beneficiaries. Global Environmental Objective Indicators Public Disclosure Copy Page 4 of 9 The World Bank Report No: ISR10319 Indicator Name Core Unit of Measure Baseline Current End Target Expanded areas under ecological management Text Value Less than 1 ha Integrated ecological Integrated ecological and/or restoration within the Stara Planina Park management plan partially management implemented on Public Disclosure Copy and surrounding area implemented on the whole the whole territory of the territory of the SPNP. SPNP. Date 20-Jun-2007 31-May-2013 31-May-2013 Comments Community attitudes towards ecologically sustainable farming practices adoption substantially improved. Target mainly achieved. Srbijashume not yet implemented all aspects of the monitoring plan for the ecological management plan (Monitoring Plan), as pastures and biodiversity monitoring is lacking. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Payment Agency established and transparent Text Value Fiduciary system and Regular reporting on Quarterly reports from and efficient EU-compliant procedures adopted supporting manuals under disbursements of national Payment Agency on development rural development and applications received, agriculure funds is conducted. disbursements made, and use However, there are no of funds by beneficiaries in quarterlyreports on line with EU IPARD applications received, requirements. disbursements made, and use of funds by beneficiaries in line with EU IPARD requirements. Public Disclosure Copy Date 20-Jun-2007 27-Apr-2013 31-May-2013 Comments Paying Agency functioning and EU accreditation initiated, however, delayed EU accession and limited funding have constrained IPARD systems application. Harmonization of PA procedures with IPARD procedures is ongoing. Page 5 of 9 The World Bank Report No: ISR10319 EU compliant rural development Managing Text Value Institutional and No reporting harmonized with Twice yearly reports on Authority (MA) and Monitoring Committee (MC) organizational concept under EU IPARD requirements, due inspection activities in line operating effectively development to delayed EU-IPARD with EU IPARD requirements. accrreditation resulting from Public Disclosure Copy overall delay in EU accession process. Date 20-Jun-2011 27-Apr-2013 31-May-2013 Comments Harmonization with IPARD requirements underway. Limited national funding of Rural Development measures. Managing Authority established, preparing national rural development strategy 2014-2020. Monitoring Committee not formally established. Number of farmers within target group who Text Value None 25,000 Approximately 20,000 farmers implement activities directly related to adopt technology & knowledge products developed with project knowledge developed under assistance the project. Date 20-Jun-2007 27-Apr-2013 31-May-2013 Comments Achieved. 30% of 83,548 farmers (about 25,000) who benefited from applied research & extension service competitive grant schemes (ARES CGS) are estimated to have adopted the technology and knowledge disseminated through ARES CGS program. Public Disclosure Copy Number of extension service providers Text Value None 347 Some 200 service providers accredited with specific competencies accredited to deliver extension activities. Date 20-Jun-2007 27-Apr-2013 31-May-2013 Comments None of original 347 providers End target achieved and had been accredited at exceeded. project start. Collaborative research/extension sub-projects Number Value 0.00 72.00 76.00 under implementation/completed Date 31-Dec-2008 27-Apr-2013 31-May-2013 Page 6 of 9 The World Bank Report No: ISR10319 Comments 4 canceled during implementation. End target 93 percent achieved. Public Disclosure Copy Collaborative research or extension sub- Number Value 0.00 0.00 0.00 projects - under implementation Sub Type Date 31-Dec-2008 27-Apr-2013 31-May-2013 Breakdown Comments No sub-projects under implementation as all have been completed. Collaborative research or extension sub- Number Value 0.00 72.00 76.00 projects - completed (number) Sub Type Date 31-Dec-2008 11-Dec-2012 31-May-2013 Breakdown Comments 4 canceled during implementation. End target 93 percent achieved. Clients who have adopted an improved agr. Number Value 0.00 25000.00 25000.00 technology promoted by the project Date 31-Dec-2008 27-Apr-2013 31-May-2013 Comments 30% of the 83,548 framers and SMEs involved in the program. Clients who adopted an improved agr. Number Value 0.00 0.00 0.00 technology promoted by project – female Sub Type Date 31-Dec-2008 27-Apr-2013 31-May-2013 Breakdown Comments Gender-disaggregated data Gender-disaggregated data not available not available. Technologies demonstrated in the project Number Value 0.00 22.00 22.00 areas (number) Date 31-Dec-2008 27-Apr-2013 31-May-2013 Comments End target achieved. Management plan for SPNP prepared in a Text Value No SPNP management plan SPNP Management plan in SPNP Management plan in participatory manner with communities, place endorsed by all place endorsed by all landowners and Srbijasume, including areas of stakeholders. stakeholders. highestpriority for wild biodiversity in core Date 20-Jun-2007 27-Apr-2013 31-May-2013 Public Disclosure Copy protection zone Comments Target achieved. Possible EU LEADER activities are likely to strengthen future SPNP management. Area of abandoned and degraded meadows/ Text Value None 3029 ha 4000 ha grasslands and pastures restored (Pilot Date 20-Jun-2007 27-Apr-2013 31-May-2013 program) Comments Grazing practices as a management tool for high mountain grasslands was re- Page 7 of 9 The World Bank Report No: ISR10319 introduced through GEF grant program. First call resulted in 400 livestock units brought to selected endangered Public Disclosure Copy pastures, while there was 532 livestock units under the second call. The ministry needs to continue support in order to maintain the increasing trend in the number of livestock brought to the selected pastures. Without a subsidy policy, current numbers will be difficult to maintain, especially given the ongoing drop in livestock figures. Target 75 percent achieved. Increase in number of RD grants to SPNP Text Value 6 RD grants in 2005 Total of 177 RD grants 100% of project RD grants municipalities for targeted activities implemented, 100% of the budget allocated to the region. project RD grants budget allocated to the region. Date 20-Jun-2007 27-Apr-2013 31-May-2013 Comments Complex administrative procedures and clearances have prevented the optimization of the program so as to absorb more project resources, where demand existed, and capacity to undertake works was adequate. Public Disclosure Copy Data on Financial Performance (as of 07-May-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P094212 IBRD-74650 Effective 20-Jun-2007 27-Jul-2007 12-Nov-2008 31-Dec-2011 31-May-2013 P093545 TF-90454 Effective 27-Jul-2007 27-Jul-2007 12-Nov-2008 31-Dec-2011 31-May-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P094212 IBRD-74650 Effective USD 17.00 13.82 3.18 10.74 2.92 78.00 Page 8 of 9 The World Bank Report No: ISR10319 P093545 TF-90454 Effective USD 4.50 4.50 0.00 4.00 0.50 89.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Borrower will complete all ongoing activities and ensure that closing arrangements have been put in place. A revised draft Borrower's Implementation Completion Report will be sent to the Bank for discussion by May 20, 2013. Restructuring History Level two Approved on 01-Apr-2010, Level two Approved on 13-Dec-2011, Level two Approved on 19-Feb-2012, Level two Approved on 11-Jun-2012, Level two Approved on 25- Sep-2012 Related Projects Public Disclosure Copy P093545-Transitional Agriculture Reform GEF Project Page 9 of 9