Indonesia - Aceh Economic Development Financing Facility : P109024 - Implementation Status Results Report : Sequence 03

The World Bank Report No: ISR3011 Implementation Status & Results Indonesia Public Disclosure Copy Aceh Economic Development Financing Facility (P109024) Operation Name: Aceh Economic Development Financing Facility (P109024) Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Last Modified Date: 30-Mar-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 Dates Board Approval Date 16-Dec-2008 Original Closing Date 30-Jun-2012 Planned Mid Term Review Date Last Archived ISR Date 17-Sep-2010 Effectiveness Date 30-Mar-2009 Revised Closing Date 30-Jun-2012 Actual Mid Term Review Date 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) Component Name Component Cost Sub-Project Grants 44.50 Consultant Services 5.25 Incremental Operating Costs 0.24 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview After initial delays and a lengthy preparation period for sub-project proposals, the EDFF project has now gained momentum, although it continues to face important implementation challenges. This was confirmed during the Mid-term Review of the project which was held from February 27, 2011 to March 14, 2011. This review was prepared and conducted jointly with representatives of the World Bank, the project implementing and executing agencies of the central Government, including BAPPENAS and Ministry for Development of Disadvantaged Areas (KPDT) and the Government of Aceh (including the Governor's Office and BAPPEDA Aceh). Representatives of the Multi-Donor Fund for Aceh and Nias (MDF), as well as MDF donors also participated. Page 1 of 4  The World Bank Report No: ISR3011 The mission found that the project has made significant implementation progress overall since June 2010. The Government's main achievement has been to select and sign sub- Public Disclosure Copy grant agreements with eight international and local non-governmental organizations (sub-project implementing entities, or SIEs) for a total value of USD 42,649,602 . The sub- projects focus broadly in the areas of fisheries, livestock, cocoa, coffee, rice, emping, patchouli and marketing and cooperative development--and are fully in line with the demands of the local economy in Aceh and local government priorities. All eight SIEs have signed MOUs with the district governments to carry out the related activities and started activities in the field. Estimated direct sub-project beneficiaries include approximately 25,000 primary producers, 813 farmer/fisherman/producer groups, 46 cooperatives, and 147 small and medium sized enterprises. The project also has support from local governments, which participate in monitoring the sub-projects, provide office space for some sub-projects and land for project activities and staff to be trained to ensure sustainability. According to Client Connection as of March 21, 2011, 56.2 percent ($28.1 million) of project funds has been disbursed with 12 months left in implementation of sub-projects and 15 months for the project overall. Despite this progress, however, the project requires significant additional support and intensive effort to ensure that the sub-projects reach their overall goals on a sustainable basis. The main findings of the mission were as follows: