Public Disclosure Authorized Public Disclosure Authorized Implementation Status & Results Honduras Honduras Rural Competitiveness Project (P101209) Operation Name: Honduras Rural Competitiveness Project (P101209) Project Stage: Implementation Seq.No: 14 Status: ARCHIVED Archive : 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 s Board Approval 17-Jun-2008 Original Closing Planned Mid Term Review 04-Feb-2013 Last Archived ISR 22-Feb-2014 Effectiveness 28-May-2010 Revised Closing Actual Mid Term Review 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) losure Authorized Public Disclosure Authorized 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 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
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 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 implementation of the business plan. 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. Will be measured as Business 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. US$13.15 million are being invested in Business Plans by Rural Producer Organizations, either as ownequity or loans through financial institutions. Page 2 of 6
Rural producers participating in the project experience 20% increase in land and labor productivity Intermediate Results Indicators Percentage Value 0.00 0.00 20.00 This indicator will be measured at intervals following the implementation of Business Plans. Indicator Name Core Unit of Measure Baseline Current End Target 150 productive alliances under implementation Number Value 0.00 85.00 120.00 85 approved Business Plans are receiving financing. End target reduced to 120 per Restructuring in 2011. At least 6,700 rural producers benefitted from Number Value 0.00 6600.00 5280.00 project financing. 09-Jul-2013 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 09-Jul-2013 MIS is functioning and providing timely monitoring data for supervision of approved Business Plans. Satisfactory financial audits Text Value No Yes 09-Jul-2013 This indicator was changed to be more clear. 2010-2011 External Audit, received by the Bank in 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 Most recent semi-annual report was received in February 2014. Page 3 of 6
Compliance with Project Operational Manual, including Safeguard and Anti-Corruption policies. 215 rural producer organizations have produced a profile that is approved to become a business plan. At least 15 technical service providers are approved to provide support to rural producer organizations 85% satisfaction among rural producer organizations regarding technical assistance from service providers. 80% of the investments identified in the business plans are completed on schedule At least 70% of the business plans inthe project are implemented using good environmental practices, as proposed in the business plan. Text Value No Yes Yes MTR confirmed compliance with Project Operational Manual. Number Value 0.00 156.00 175.00 156 Rural Producer Organizations have presented approved Business Profiles to date. Number Value 0.00 52.00 15.00 52 TSPs have been certified to provide TA to Rural Producer Organizations in the preparation of Business Profiles and subsequent Business Plans. Percentage Value 0.00 96.00 85.00 30-Jun-2015 Satisfaction, as measured through evaluation, is 100% with vegetable business plans, 96% with specialty coffee and 87% for fruits. Percentage Value 0.00 0.00 80.00 Indicator will be measured post-implementation of Business Plans. Percentage Value 0.00 0.00 70.00 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
At least 70% of the business plans in the project successfully implement measures that target the youth and indigenous communities, when applicable, as identified in the business plan. Baseline data in the MIS is available for each approved business plan. management of the Business Plans. The first results will be presented in the next progress report. Percentage Value 0.00 0.00 70.00 30-Jun-2015 About one-third of approved Business Plans have indigenous participation (Lenca, Chorti) and youth participation is also significant (about 10% of participating rural producers). Text Value No Yes Yes Data on Financial Performance (as of 29-Jan-2014) Financial Agreement(s) Key s Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P101209 IDA-44650 Effective 17-Jun-2008 17-Sep-2008 28-May-2010 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 Page 5 of 6
Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 6 of 6