Document of
The World Bank

Report No:ICR00003639

IMPLEMENTATION COMPLETION AND RESULTS REPORT
(IDA-43250 TF-90773)
ON A
CREDIT
IN THE AMOUNT OF SDR13.8 MILLION
(US$21.0 MILLION EQUIVALENT)
TO BOSNIA AND HERZEGOVINA
FOR AN
AGRICULTURE AND RURAL DEVELOPMENT PROJECT
December 21, 2016
Agriculture Global Practice
South East Europe Country Unit
Europe and Central Asia Region

CURRENCY EQUIVALENTS

(Exchange Rate Effective November 28, 2016)

Currency Unit=SDR

1.00 SDR = US$1.35

US$1.00 = 0.74 SDR

FISCAL YEAR

ABBREVIATIONS AND ACRONYMS

APPH / Administration of Bosnia and Herzegovina for the Protection of Plant Health
ARDP / Agriculture and Rural Development Project
BATA / National Accreditation Body
BiH / Bosnia and Herzegovina
CAS / Country Assistance Strategy
CPF / Country Partnership Framework
CSF / Classical Swine Fever
EMF / Environmental Management Framework
EU / European Union
FADN / Farm Accountancy Data Network
FBiH / Federation of Bosnia and Herzegovina
FSA / Food Safety Agency
FY / Fiscal Year
GMO / Genetically Modified Organism
HACCP / Hazard Analysis and Critical Control Points
IPARD / Instrument for Pre-Accession Assistance for Rural Development
M&E / Monitoring and Evaluation
MAFWM / Ministry of Agriculture, Forestry and Water Management
MAWMF / Ministry of Agriculture, Water Management and Forestry
MoA / Ministry of Agriculture
MoFTER / Ministry of Foreign Trade and Economic Relations
MTDS / Medium-Term Development Strategy
PCU / Project Coordinating Unit
RS / Republika Srpska
SAA / Stabilization an Association Agreement
SAFRD / Sector for Agriculture, Food, Forestry and Rural Development
SIDA / Swedish International Development Cooperation Agency
SPIRA / Streamlining Permits and Inspection Regimes Activity
SVO / State Veterinary Office
SWA / Sector Wide Approach
USAID / United States Agency for International Development
WTO / World Trade Organization

Country Director:

/

Ellen Goldstein

Country Manager:

/

Tatiana Proskuryakova

Senior Global Practice Director:

/

Juergen Voegele

Sector Manager:

/

Julian Lampietti

Project Team Leader:

/

Daniel Gerber

ICR Team Author:

/

Jeren Kabayeva

BOSNIA AND HERZEGOVINA

AGRICULTURE AND RURAL DEVELOPMENT PROJECT

CONTENTS

Data Sheet:

A. Basic Information

B. Key Dates

C. Ratings Summary

D. Sector and Theme Codes

E. Bank Staff

F. Results Framework Analysis

G. Ratings of Project Performance in ISRs

H. Restructuring (if any)

I. Disbursement Profile

1. Project Context, Development Objectives and Design

2. Key Factors Affecting Implementation and Outcomes

3. Assessment of Outcomes

4. Assessment of Risk to Development Outcome

5. Assessment of Bank and Borrower Performance

6. Lessons Learned

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners

Annex 1. Project Costs and Financing

Annex 2. Outputs by Component

Annex 3. Economic and Financial Analysis

Annex 4. Revised Results Framework

Annex 5. Bank Lending and Implementation Support/Supervision Processes

Annex 6. Beneficiary Survey Results

Annex 7. Stakeholder Workshop Report and Results

Annex 8. Summary of Borrower's ICR and/or Comments on Draft ICR

Annex 9. Comments of Cofinanciers and Other Partners/Stakeholders

Annex 10. List of Supporting Documents

MAP

BOSNIA AND HERZEGOVINA

AGRICULTURE AND RURAL DEVELOPMENT PROJECT

A. Basic Information
Country: / Bosnia and Herzegovina / Project Name: / Agriculture and Rural Development Project
Project ID: / P101213 / L/C/TF Number(s): / IDA-43250,TF-90773
ICR Date: / 10/04/2016 / ICR Type: / Core ICR
Lending Instrument: / SIL / Borrower: / BOSNIA AND HERZEGOVINA
Original Total Commitment: / XDR 13.80M / Disbursed Amount: / XDR 12.69M
Revised Amount: / XDR 13.80M
Environmental Category: B
Implementing Agencies:
FBiH MAWMF
RS MAFWM
Cofinanciers and Other External Partners:

B. Key Dates

Process / Date / Process / Original Date / Revised / Actual Date(s)
Concept Review: / 12/01/2006 / Effectiveness: / 02/26/2008 / 02/26/2008
Appraisal: / 04/25/2007 / Restructuring(s): / 06/16/2010
07/12/2011
04/25/2012
05/21/2013
06/17/2015
Approval: / 06/19/2007 / Mid-term Review: / 10/11/2010 / 10/11/2009
Closing: / 06/30/2012 / 06/30/2016
C. Ratings Summary
C.1 Performance Rating by ICR
Outcomes: / Moderately Unsatisfactory
Risk to Development Outcome: / Moderate
Bank Performance: / Moderately Unsatisfactory
Borrower Performance: / Moderately Unsatisfactory
C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)
Bank / Ratings / Borrower / Ratings
Quality at Entry: / Moderately Unsatisfactory / Government: / Moderately Unsatisfactory
Quality of Supervision: / Moderately Satisfactory / Implementing Agency/Agencies: / Moderately Satisfactory
Overall Bank Performance: / Moderately Unsatisfactory / Overall Borrower Performance: / Moderately Unsatisfactory
C.3 Quality at Entry and Implementation Performance Indicators
Implementation Performance / Indicators / QAG Assessments (if any) / Rating
Potential Problem Project at any time (Yes/No): / Yes / Quality at Entry (QEA): / None
Problem Project at any time (Yes/No): / Yes / Quality of Supervision (QSA): / None
DO rating before Closing/Inactive status: / Moderately Satisfactory
D. Sector and Theme Codes
Original / Actual
Sector Code (as % of total Bank financing)
Agricultural extension and research / 10 / 10
Central government administration / 24 / 24
General agriculture, fishing and forestry sector / 22 / 22
Sub-national government administration / 44 / 44
Theme Code (as % of total Bank financing)
Export development and competitiveness / 14 / 14
Regional integration / 14 / 14
Rural markets / 14 / 14
Rural policies and institutions / 29 / 29
Rural services and infrastructure / 29 / 29
E. Bank Staff
Positions / At ICR / At Approval
Vice President: / Cyril E Muller / Shigeo Katsu
Country Director: / Ellen Goldstein / Orsalia Kalantzopoulos
Practice Manager/Manager: / Julian A. Lampietti / Marjory-Anne Bromhead
Project Team Leader: / Daniel P. Gerber / Rita E. Cestti
ICR Team Leader: / Jeren Kabayeva
ICR Primary Author: / Jeren Kabayeva
F. Results Framework Analysis
Project Development Objectives (from Project Appraisal Document)

The Project Development Objective is to assist BiH to strengthen the capacity of its State-level and Entity-level institutions todeliver more efficient and effective agricultural services and support programs as well as to make a substantial contribution to anacceleration of BiH's eligibility to access support under the European Union Instrument for Pre-Accession Assistance for RuralDevelopment (IPARD).

Revised Project Development Objectives (as approved by original approving authority)

N/A

(a) PDO Indicator(s)
Indicator / Baseline Value / Original Target Values (from approval documents) / Formally Revised Target Values / Actual Value Achieved at Completion or Target Years
Indicator 1 : / Before restructuring: Sixty percent of disease and pest inspection implemented on the basis of expected
Value
quantitative or
Qualitative) / Poor understanding of pest and disease epidemiology. Little risk based inspection / Sanitary inspection is 60% risk based / Substantially achieved, about 70% of the target value. See the details in section 3.2 of the ICR.
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / Although this indicator was dropped, it was substantially achieved. FSA, SVO and APPH provide input atthe Entity level and border inspection planning based on risk assessment, and inspection plans are revised quarterly or morefrequently.
Indicator 2 : / After restructuring: Structured disease and pest control system, informed by surveys and supported byreliable lab diagnostic capacity and databases, are developed, coordinated and implemented with data sharing at State and Entitylevel approximating EU
Value
quantitative or
Qualitative) / No systematic disease and pest control systems for plants, animals, and foodstuff in place / Maintain and monitor situation through inspection services, begin risk targeting of inspections / Substantially achieved, about 70% of the target value. See the details in section 3.2 of the ICR.
Date achieved / 07/12/2011 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / A new PDO indicator added after restructuring in July 2011
Indicator 3 : / Before restructuring: Pluralistic, stakeholder driven and outcome-based contracted extension servicesoperational at the level of each Entity and benefitting 20 percent of commercial farmers
Value
quantitative or
Qualitative) / Limited public extension services in the RS and none in the FBiH. Few public private extension partnerships / Stakeholder managed contracted, public/private extension service reaching 20% of commercial farmers / Partially achieved, about 40% of the target value. See the details in section 3.2 of the ICR.
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / Although this indicator was dropped, good progress on extension services was achieved in the RS.
Indicator 4 : / Registries and databases for the effective management of incentive payments, tracking sanitaryinspection data at Entity level with reporting capacity to State level agencies and MOFTER are in place approximating EU systems
Value
quantitative or
Qualitative) / No systematic registry and reporting capacity in place / Link various registries for Farm Information System / Substantially achieved, about 80% of the target value. See the details in section 3.2 of the ICR.
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / The links at Entity and State level have been established. The outcome was affected by the projectinability to establish an agreed payment structure.
Indicator 5 : / Before restructuring: One hundred of rural development structural payments made through harmonized,EU-IPARD compliant institutions and systems at the level of each Entity
Value
quantitative or
Qualitative) / Un-transparent agricultural and rural development support targeting and administrative procedures. Poormonitoring and impact evaluation / Harmonized, EU IPARD compliant rural development structural payments made at the level of each Entity / Not achieved. See the details in section 3.2 of the ICR.
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / The indicator was dropped after restructuring in July 2011.
Indicator 6 : / After restructuring: Flood rehabilitation grants help communities recover to pre-flood level of economic
Value
quantitative or
Qualitative) / Some 15% of community assets destroyed / Execution of works and goods contracts / Fully achieved. See the details in section 3.2 of the ICR.
Date achieved / 07/12/2011 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / This is a new indicator added after restructuring in July 2011 to measure impact of floodrehabilitation activities.
(b) Intermediate Outcome Indicator(s)
Indicator / Baseline Value / Original Target Values (from approval documents) / Formally Revised Target Values / Actual Value Achieved at Completion or Target Years
Indicator 1 : / A1: State Veterinary Office of BiH implementing effective animal identification system
Value
(quantitative
or Qualitative) / Animal ID only covering 50% of cattle population / Animal identification: 10% of cattle and 3% of small ruminants are randomly checked each year / Fully achieved
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / See the details in Annex 4 of the ICR. Bovines registered and ear tagged by >90% across thecountry. Sheep/goats registered and ear tagged by >70% in FBiH and approximately 25-30% in the RS. The campaign for sheep-goatear tagging in the RS was launched.
Indicator 2 : / A2: SVO implementing brucellosis and CSF control programs
Value
(quantitative
or Qualitative) / Brucellosis and CSF epidemiology data outdated. Limited test and slaughter program for Brucella / Risk based inspection operational. Brucella incidence in sheep reduced 30% / Partially achieved, about 50%
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / See the details in Annex 4 of the ICR. The animal vaccination in 2015 was completed and involved atleast 75% of total number of target animals. Eradication policy has not been established and mass preventive vaccination continues.
Indicator 3 : / APPH implementing plant health monitoring and risk assessment systems
Value
(quantitative
or Qualitative) / APPH only recently established and not fully staffed or operational / Phytosanitary inspection shifts to risk mostly based inspection system / 80% of seed and plant material producers/importers are registered, potato pest survey repeated yearly / Fully achieved
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / See the details in Annex 4 of the ICR. Potato pest survey ongoing in 2016, now for the 6-th time withfunding provided by each entity. The APPH conducts ad-hoc risk assessment, identifies priorities for enhanced control.
Indicator 4 : / A4: APPH develops and implements phytosanitary and plant register database
Value
(quantitative
or Qualitative) / No centralized database for phytosanitary or plant production or trade / Link phyto-plant health registry with FSA and SVO databases and MOFTER farm information system / Fully achieved (new indicator)
Date achieved / 07/12/2011 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / The APPH operates a phyto register database that include plants and producers as well. The link isaccessible by entity inspections services and Ministries of Agriculture.
Indicator 5 : / A5: FSA implementing a risk based food safety system
Value
(quantitative
or Qualitative) / FSA only recently established and food regulations and inspection procedures incomplete / FSA performs at least 3 risk assessments and coordinates a risk communication program / Fully achieved
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / See the details in Annex 4 of the ICR. The FSA conducts a risk assessment for aflatoxins andphosphates in food, and commissioned a Total Diet study to assess prevailing nutritional habits and help identify inherent risks.
Indicator 6 : / A6: Entity-level Inspection Directorates are implementing BiH plant health, animal health and foodsafety laws and regulations
Value
(quantitative
or Qualitative) / No effective agricultural inspections undertaken / All Entity Inspectorate reporting of food, animal and plant health is web-based / Apply risk based in section based on regulations from FSA, SVO and APPH / Substantially achieved, about 75%
Date achieved / 05/23/2007 / 06/30/2012 / 07/12/2011 / 06/30/2016
Comments
(incl. %
achievement) / Both Entity Inspectorates operate web-based databases and sharedata with state-level agencies. Their IMS systems are not linked.Information is shared on a daily basis through uploads, but not yet in a real-time manner.
Indicator 7 : / A7: FBiH MAWMF/RS MAFWM agricultural information units and databases and FADN pilot establishedassembling farm level information.
Value
(quantitative
or Qualitative) / Limited agricultural or farm level information collected / Pilot FADN program includes >300 farmers / Integrate FADN survey data in entity MOA information system / Partially achieved (about 50%)
Date achieved / 05/23/2007 / 06/30/2012 / 07/12/2011 / 06/30/2016
Comments
(incl. %
achievement) / FADN pilot established in both entities however regular update of database not maintained in FBiH once responsibility was handed down to cantons. To date in the RS a total of 128 farms are beingsurveyed on an annual basis.
Indicator 8 : / A8: WAN linking MOFTER with State level agencies, entity MOAs, and Inspection services under establishment for AIS
Value
(quantitative
or Qualitative) / No coherent agricultural information collection at State level / Begin interface of various entity level and State agency databases for AIS / Fully achieved (new indicator)
Date achieved / 07/12/2011 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / See the details in Annex 4 of the ICR.
Indicator 9 : / RS MAFWM/FBiH MAWMF Department for Extension with a multi-stakeholder governing body established
Value
(quantitative
or Qualitative) / Limited public extension services in the RS and none in the FBiH / Extension Boards manage a contracted, pluralistic extension system / The indicator was dropped after restructuring in July 2011
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement)
Indicator 10 : / Market and results-oriented Entity extension systems operational and effective in accordance withclearly defined policy objectives
Value
(quantitative
or Qualitative) / Few public/private extension partnerships / On-farm extension delivery primarily through contracted private sector and civil society extension agent / The indicator was dropped after restructuring in July 2011
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement)
Indicator 11 : / No of contracted extension/advisory service providers accredited with specific competencies
Value
(quantitative
or Qualitative) / 0 / 100 / The indicator was dropped after restructuring in July 2011
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement)
Indicator 12 : / No of extension packages prepared and disseminated
Value
(quantitative
or Qualitative) / 0 / 50
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / The indicator was dropped after restructuring in July 2011
Indicator 13 : / No of commercial and semi-subsistence farmers undergoing restructuring and agro-processors withintarget group who implement activities directly related to advisory services extended with Project assistance
Value
(quantitative
or Qualitative) / 0 / 3000 / The indicator was dropped after restructuring in July 2011
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement)
Indicator 14 : / B1: Transparency Entity level paying systems established
Value
(quantitative
or Qualitative) / Un-transparent, manual paying system operating / 100% of Entity payments made through the accredited paying system / Not achieved
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / All IPARD like Rural Development Grants are made through paying system. A software application tohandle direct payments remains to be developed.
Indicator 15 : / B2: Entity level rural development plans established and overseen by Monitoring Committees
Value
(quantitative
or Qualitative) / No BIH rural development plan / Monitoring Committee reformulating RD program based on M&E report / Partially achieved, about 50%.
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / See the details in Annex 4 of the ICR. Both entities have developed their respective rural developmentprograms and agricultural strategies.
Indicator 16 : / B3: Increase in RD funding and number of grants supporting competitive agriculture activities
Value
(quantitative
or Qualitative) / Only 10% of agricultural subsidies are structural / More than 50% of all payments are structural / Partially achieved, about 50%
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement) / Approximately 25% of agricultural payments are in structural form, for investments. Ratio used to behigher before floods in 2014, but it is expected to recover to 50% over the next couple of years.
Indicator 17 : / MOFTER RD payment and registries database and reporting system established
Value
(quantitative
or Qualitative) / No central collation or reporting of market or structural payments / MOFTER publishes a consolidated report of BiH market and rural development payments / This indicator was dropped after restructuring in July 2011
Date achieved / 05/23/2007 / 06/30/2012 / 06/30/2016
Comments
(incl. %
achievement)
Indicator 18 : / B4: Rehabilitation investments completed before end of construction and farming season in October, 2011
Value
(quantitative
or Qualitative) / Some 15 of community assets destroyed / All rehabilitation completed / Fully achieved (new indicator)
Date achieved / 07/12/2011 / 06/30/2016 / 06/30/2016
Comments
(incl. %
achievement) / See the details in Annex 4 of the ICR. All rehabilitation completed. It should be noted that this indicator was achieved before the end of the project, i.e. June 30, 2016 and not in October 2011.

G. Ratings of Project Performance in ISRs

No. / Date ISR
Archived / DO / IP / Actual Disbursements
(USD millions)
1 / 09/10/2007 / Satisfactory / Satisfactory / 0.00
2 / 11/30/2007 / Satisfactory / Satisfactory / 0.00
3 / 05/29/2008 / Satisfactory / Satisfactory / 0.00
4 / 12/30/2008 / Satisfactory / Moderately Satisfactory / 1.47
5 / 08/07/2009 / Moderately Satisfactory / Moderately Satisfactory / 2.85
6 / 12/02/2009 / Moderately Satisfactory / Moderately Satisfactory / 3.54
7 / 06/10/2010 / Moderately Satisfactory / Moderately Unsatisfactory / 4.08
8 / 02/25/2011 / Moderately Satisfactory / Moderately Unsatisfactory / 5.75
9 / 10/23/2011 / Moderately Satisfactory / Moderately Unsatisfactory / 7.46
10 / 04/24/2012 / Moderately Satisfactory / Moderately Satisfactory / 9.06
11 / 11/27/2012 / Moderately Satisfactory / Moderately Satisfactory / 11.54
12 / 12/30/2012 / Moderately Unsatisfactory / Moderately Unsatisfactory / 12.25
13 / 06/29/2013 / Moderately Satisfactory / Satisfactory / 13.98
14 / 01/04/2014 / Moderately Satisfactory / Satisfactory / 15.62
15 / 07/03/2014 / Moderately Satisfactory / Moderately Satisfactory / 16.17
16 / 12/22/2014 / Moderately Satisfactory / Moderately Satisfactory / 17.40
17 / 06/10/2015 / Moderately Satisfactory / Moderately Satisfactory / 17.89
18 / 09/17/2015 / Moderately Satisfactory / Moderately Satisfactory / 17.89
19 / 04/27/2016 / Moderately Satisfactory / Moderately Satisfactory / 18.51

H. Restructuring (if any)

Restructuring Date(s) / Board Approved PDO Change / ISR Ratings at Restructuring / Amount Disbursed at Restructuring in USD millions / Reason for Restructuring & Key Changes Made
DO / IP
06/16/2010 / MS / MU / 4.08 / To allow disbursement categories 2a, 2b, 5 and 10 that had a deadline for disbursement of June 30, 2009to become effective; and to increase financing percentage of disbursement categories 7 and 12 from 15% to 85%.
07/12/2011 / MS / MU / 6.96 / Restructuring in response to (i) changes in the country priorities in the pre-EU-accession context;(ii) implementation issues identified as part of the Bank’s Implementation Support Activities; and (iii) damage rehabilitationneeds pertaining to rural infrastructure and assets following the severe floods that hit the country during the 2010/11 winterseason. Adjustment of the RF to reflect the changes proposed by the restructuring, which included (i) redesign of Sub-component B3from formerly “Increasing investment grants for target objectives and areas” to “Financing for flood damage rehabilitationactivities in selected areas affected by the floods in both Entities”; and (ii) reallocation of funding from Sub-component A4 dueto delays with implementation of extension activities, to the flood damage rehabilitation activities under Sub-component 3.
04/25/2012 / MS / MS / 9.06 / Extension of the Closing Date for 12 months, i.e. from June 30, 2012 to June 30, 2013
05/21/2013 / MU / MU / 13.83 / Extension of the Closing Date for 24 months, i.e. from June 30, 2013 to June 30, 2015
06/17/2015 / N / MS / MS / 17.89 / Extension of the Closing Date for 12 months, i.e. from June 30, 2015 to June 30, 2016

I. Disbursement Profile