Implementation Status & Results Indonesia Aceh Economic Development Financing Facility (P109024)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Indonesia Aceh Economic Development Financing Facility (P109024) Operation Name: Aceh Economic Development Financing Facility (P109024) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive : 18-Oct-2011 Country: Indonesia Approval FY: 2009 Product Line: Recipient Executed Activities Region: EAST ASIA AND PACIFIC Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Ministry for The Development of Disadvantaged Areas (KPDT), Bappeda Key s Board Approval 16-Dec-2008 Original Closing 30-Jun-2012 Planned Mid Term Review Last Archived ISR 18-Oct-2011 Effectiveness 30-Mar-2009 Revised Closing 30-Nov-2012 Actual Mid Term Review 15-Mar-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Economic Development Financing Facility is to assist the province of Aceh and the local and provincial governments to improve opportunities for private business and private sector jobs and to continue fostering sustainable equitable long term economic development in Aceh. 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 Sub-Project Grants Consultant Services 5.25 Incremental Operating Costs 0.24 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating NA Implementation Status Overview Overview The objective of the Economic Development Financing Facility (EDFF) is to promote post-tsunami economic recovery and foster sustainable equitable long-term economic development in Aceh in line with the Government's own plans for economic development. EDFF consists of two components. The first component provides sub-grants for projects designed to create opportunities for private sector job creation and growth. These sub-projects focus on livestock, agriculture (cocoa, coffee, rice, patchouli, etc), fisheries, and small Page 1 of 6

2 scale enterprise. The second component focuses on capacity building for the provincial government in project management. The project is financed by the Multi-Donor Fund for Aceh and Nias (MDF). After a lengthy start-up phase, the project has now made significant progress with implementation of field activities well underway. While the project offers an innovative design, progress was affected by challenges related to procurement, financial management and project management. These challenges have seen significant improvement since the last ISR, with increased resources from the PMU and capacity building from the Project Management Consultant (PMC) and World Bank. Although the short remaining implementation time frame remains a challenge for the project, recent 5-month extensions of the Grant Agreement (to November 30, 2012) and sub-grant agreements (to August 31, 2012) are providing implementing NGOs more time to finalize construction of physical works and build capacity of the beneficiaries, producer groups, cooperatives, and marketing forums to increase sustainability. The project has gained considerable momentum toward achieving its development objectives. EDFF continues to have strong backing from stakeholders at all levels. The project is a key element of the Government's plans to make the transition from tsunami reconstruction to sustainable economic development. Supervision/Implementation Support The task team carried out implementation support missions during the following dates: September 15-October 14; November and 28-30; December 8-23, September and December missions were complemented by intensive on-site support by World Bank Procurement. Implementation support included assisting the PMU and SIEs in finalizing bidding documents and helping to resolve procurement bottlenecks; participating with KPDT and representatives from central government ministries in monitoring EDFF field activities; assessing overall project progress and provide implementation support to PMU in areas of M&E, safeguards, and financial management; and meet with SIEs and PMU to help resolve identified issues affecting project implementation. The project supervision team also includes an Aceh-based FM consultant, who works with the PMU and SIEs on an ongoing basis. In January 2012, missions outside of the provincial capital were suspended until after elections in early April due to security concerns. The team plans a major supervision/ implementation support mission as soon as the security restrictions are lifted. Project Status Summary The project is implemented by eight international and local non-governmental organizations (sub-project implementing entities, or SIEs) for sub-projects valued at approximately US$ 42.7 million. Component 1: Sub-Project Selection: The competitive selection process, including transparent criteria, was well-publicized and a Selection Committee comprised of representatives from central and provincial government and academia selected eight sub-projects (from 119 submitted) covering most of the key agricultural and fishery products of Aceh with a good geographical range across the province. After a lengthy review process, all eight sub-projects had been approved to start operations by the end of Implementation: While implementation progress varies by SIE, all sub-projects are well underway and more than 26,000 farmers and fishermen, including 450 producer groups and cooperatives, have already been supported directly through capacity building, improved inputs and value/supply chains, market linkages, and small infrastructure. Local government technical staff have been trained and are working with some sub-projects, and some districts have provided land and office space to support project activities. Indirect beneficiaries exceed 100,000. Construction of infrastructure to support processing and other value-added activities is also in progress. [Note that sources of data are EDFF Quarterly Report by the PMC and monthly updates from the PMC.] Following is a summary of EDFF sub-projects and progress: (i) Swiss Contact. Swiss Contact's Improvement of Aceh s Cocoa Economy project aims to boost cocoa production and marketing in 5 districts by providing quality inputs, training and marketing support for farmers as well as for SMEs in the cocoa value chain, cocoa business organizations and government officials. More than 12,000 farmers were trained through 400 Farmer Field Schools in farm rehabilitation and/or Good Agricultural Practices (GAP); more than 200,000 trees rehabilitated; 25 government extension workers and 500 key farmers trained as GAP trainers; Aceh Cocoa Forum strengthened, first annual Aceh Cocoa Conference held in March 2011 and a joint Aceh Cocoa and Coffee Conference scheduled for March 2012; SMS and website cocoa price information system established; links established between cocoa farmers, traders and exporters; multi-stakeholder forums Page 2 of 6

3 and Cocoa Clinics with nurseries and clone trial gardens established in 5 districts; one district formalized a cocoa master plan drafted in collaboration with stakeholders, and four more nearly ready. 40 farmer groups were trained as Smallholder Cocoa Enterprises and received equipment to help sustain their businesses. Further, the sub-project has benefited from strong support from the private sector including partnerships with international firms Armajaro, Nestle, UTZ, Mars and the World Cacao Foundation. Swisscontact has also lined up extensive funding from the private sector as well as USD 4 million from Swiss SECO to continue the training after the EDFF project closes. This is considered a major achievement--likely to help ensure the sustainability of EDFF's investments. (ii) Action Aid Australia (AAA). The Improving Competitiveness of Aceh Cocoa Value Chain to Increase Farmers' Income, Create Jobs and Alleviate Poverty project is a collaborative project of AAA and the local NGO Keumang that has been designed to support 4,500 cocoa farmers in 3 districts through the introduction of improved farming practices and strengthening of cooperatives. The project has experienced significant delays overall in implementation and as a result, several of the originally planned activities have been canceled. To date, according to the NGOs sub-project reports, a demonstration plot has been secured and nearly 400 key farmers trained as trainers; 2,300 farmers trained; 7 new cooperatives established; 7 new women's groups registered and members trained in seed production and composting methods; 107 cooperative members received management and accounting training; 300 members of one cooperative received organic certification; district level cocoa forums established. (iii) International Organization of Migration. Through the Sustainable Economic Growth for Aceh project, the International Organization of Migration (IOM) project, in collaboration with local partners, aims to improve marketing, market transparency and access to funding of coffee farmers in the districts of Aceh Tengah and Bener Meriah. Indonesia's first auction market and warehouse receipts system for coffee started pilot operations; Arabica Specialty Coffee network established; new coffee development research center is operating in collaboration with a local university; 50 key farmers certified in coffee quality improvement and economics of coffee plantation; 120 businesses trained in marketing, business management and coffee trading; 75 businesses awarded matching grants; 25 participants trained in "cupping" to test quality; and four international coffee companies introduced to Aceh coffee market. In March 2012, a joint Aceh Cocoa and Coffee Conference will take place in Banda Aceh, bringing together local and international stakeholders for networking and to further develop these sectors in Aceh. (iv) Canadian Cooperative Association (CCA). The Integrated Social Economy in Aceh Project is a collaborative project of the CCA and an Acehnese NGO PASKA that aims to support smallholder producers in the agriculture, aquaculture, marine fisheries and tree crop sectors. 36 cooperatives and pre-cooperatives with more than 2,400 members were established/strengthened and members trained in coop, business and financial management practices; 6 women's groups increased snack food production capacity eight-fold with custom presses provided by the project; a secondary cooperative was established and is facilitating sales and marketing of members' fish and agricultural produce, especially rice, using the project's working capital fund; 5,000 farmers and nearly 2,000 fishermen trained in harvesting, organic farming and product quality improvement; more than 2,000 members of SMEs and coops trained in gender equality, good governance and peace building. The first harvest from several of the project's fish ponds yielded 800 kilograms of fish sold to new buyers from Aceh and North Sumatra. A new rice milling unit is helping cooperatives and hundreds of their members increase incomes. (v) Caritas Czech Republic. Through the Strengthening Aceh's Private Sector project, Caritas Czech Republic (CCR) aims to support nilam (patchouli) farmers in the disadvantaged districts of Aceh Jaya, Aceh Barat, Aceh Selatan and Gayo Lues. Main activities through September 2011 include: 40 farmer groups were established and 1,800 members trained; four Nilam Business Center cooperatives established and IDR 122 million in savings collected for stockpiling of patchouli oil from members; project's French perfume company partner is teaching farmers best practice distillation techniques to produce high quality oil for export; patchouli sector and local market studies completed and contacts with network of local collectors and traders established. (vi) Muslim Aid. The sub-project Smallholder Capacity Building for Improved Livestock Production & Enhanced Market Access implemented by Muslim Aid Indonesia in collaboration with the district authorities of Bireuen, aims to strengthen cattle farmers in Bireuen by provision of improved bulls and heifers for fattening and breeding, stables, equipment and skills to 720 farmers, the establishment of 36 farmer groups and 9 centers for Artificial Insemination and veterinary health. All farmers and f armer groups were trained in group, business and financial management skills; government technical staff trained in livestock raising, pasture and fodder management, cattle production and reproductive health; 36 stables were built to accommodate cattle to be fattened or bred under the project. Suppliers of cattle have been selected and cows are starting to be delivered to farmers. (vii) Islamic Relief. Through the Sustainable Seafisheries for Simeulue and Singkil project, Islamic Relief aims to support fishermen in the disadvantaged districts of Singkil and Simeulue by the provision of improved fishing and fish processing equipment, public infrastructure (fishing platforms, fish cages and catching attractors, fish hatchery, jetty) and marketing skills to 273 fishermen groups and cooperatives. More than 1,000 beneficiaries have been selected; women's empowerment and fish processing training conducted; local hatchery rehabilitated and zooplankton and fingerling production restarted providing local supply for hundreds of fish farmers; construction of jetty extension for boat landing completed; and 38 fishing boats renovated. Page 3 of 6

4 (viii) Aceh Development Foundation. Through the Green Engineering Approach to Improving the Fish Processing Industry project, local Aceh Development Foundation (ADF) in collaboration with local partners aims to stimulate value added processing of f ish and fishery products in the districts of Bireuen and Pidie Jaya. Beneficiaries have been selected and six cooperatives established; furnaces for salt factory are being rehabilitated; community-based business organization for liquid smoke preservative were established; contractors selected for construction of liquid smoke, ice and salt factories. Component 2: The Bappeda Aceh-based Project Management Unit (PMU) and KPDT Project Secretariat were established in 2009 and an international consulting firm is helping build their capacity to manage EDFF and similar projects in the future. PMU staff are now able to more effectively manage and resolve administrative and technical implementation issues and to use project monitoring reports for decision making, and KPDT has carried out a number of monitoring missions and supported resolution of policy issues with other central ministries. T he Government of Aceh, which has responsibility for implementing the project, has continuously supported EDFF through co-financing and linking the related technical agencies and districts in order to build project ownership early on, as well as developing an exitstrategy. In recent months, the PMU has focused on helping the SIEs to accelerate their activities; improving FM and procurement capacity of SIEs to speed up project implementation; and project monitoring. Locations Country First Administrative Division Location Planned Actual Indonesia Not Entered Provinsi Nanggroe Aceh Darussalam Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Employment generated Number Value Jun-2012 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Private Sector Support: Enterprises supported Number Value Jun-2012 Enterprises are supported in cocoa, coffee, patchouli, rice, emping, fisheries and livestock. Private Sector Support: Farmers and Number Value fishermen communities supported The project directly supports both marine and aquaculture fishermen; livestock, rice, patchouli, cocoa, and coffee Page 4 of 6

5 farmers. Indirectly, the project supports more than 100,000 beneficiaries. Public Infrastructure: Infrastructure built Number Value Completed infrastructure includes learning centers, nurseries, jetty, hatchery, zooplankton facility, warehouse for warehouse receipts system. Public Infrastructure: Infrastructure built being Percentage Value used by intended beneficiaries All infrastructure built to-date is being used by the intended beneficiaries. Effective Project Management: Capacity of Number Value implementing agencies built 30-Mar-2009 Effective Project Management: Sub-projects successfully implemented Data on Financial Performance (as of 27-Dec-2011) Financial Agreement(s) Key s The implementing agencies initially assigned 10 full time staff and consultants to the project. 12 PMU and 1 KPDT staff involved in implementation of the project full time. KPDT also has 4 part time consultants and 1 part time staff. Percentage Value Number of sub-projects approved. 31-Dec-2011 Implementation of Swisscontact, CCA and IOM sub-projects rated satisfactory by the World Bank task team. All sub-projects are in full implementation mode. Project Loan No. Status Approval Signing Effectiveness Closing P TF Effective 30-Dec Dec Mar Nov-2012 Disbursements (in Millions) Page 5 of 6

6 Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P TF Effective USD Disbursement Graph Key Decisions Regarding Implementation The project closing date was extended from June 30, 2012 to November 30, Sub-project grant agreements were extended from March 31, 2012 to August 31, Restructuring History Level two Approved on 15-Dec-2011 Related Projects There are no related projects. Page 6 of 6