Morocco - MA-Modernization of Irrigated Agriculture in the ... · Web viewFor the World Bank, water was central in the 2010-13 Country Partnership Strategy (CPS, Report No. 50316-MA,

Document of

The World BankFOR OFFICIAL USE ONLY

Report No: ICR00004314

IMPLEMENTATION COMPLETION AND RESULTS REPORT

IBRD-78750

ON A

LOAN

IN THE AMOUNT OF EUROS 51.60 MILLION

(US$70.0 MILLION EQUIVALENT)

TO THE

Ministry of Agriculture

FOR THE

JUNE 27, 2018

Water Global PracticeMiddle East And North Africa Region

CURRENCY EQUIVALENTS(Exchange Rate Effective June 1, 2018)

Currency Unit = Moroccan Dirham (DH)DH9.43 = US$1

US$0.11 = DH1

FISCAL YEARJanuary 1 – December 31

ABBREVIATIONS AND ACRONYMS

ABH River Basin Authority (Agence de Bassin Hydraulique)ADA Agricultural Development Agency (Agence pour le Développement Agricole)AfDB African Development BankCPS Country Partnership StrategyCRTS Royal Centre for Remote Sensing (Centre Royal de Teledétéction Spatiale)DH Moroccan Dirhams (Dirhams Marocains)DIAEA Directorate of Irrigation and Rural Infrastructure (Direction de l’Irrigation et de

l’Aménagement de l’Espace Agricole), MAPMDPL Development Policy LoanEIB European Investment BankEMP Environmental Management PlanFDA Agricultural Development Fund (Fonds de Développement Agricole)GDP Gross Domestic ProductGIS Geographic Information SystemICR Implementation Completion and Results ReportIRR Internal Rate of ReturnM&E Monitoring and EvaluationMAPM Ministry of Agriculture and Marine Fisheries (Ministère de l’Agriculture et de la Pêche

Maritime)MEF Ministry of Economy and Finance (Ministère de l’Economie et des Finances)O&M Operation and MaintenanceONCA National Agency for Agricultural Advisory Services (Office National du Conseil

Agricole)ORMVA Regional Agricultural Development Office (Office Régional de Mise en Valeur Agricole)PAD Project Appraisal DocumentPAP Project Affected PeoplePDO Project Development Objective

PMGI Large-Scale Irrigation Modernization Project (Projet de Modernization de la Grande Irrigation)

PMV Morocco Green Plan (Plan Maroc Vert)PNEEI National Irrigation Water Saving Program (Programme National d’Économie de l’Eau

d’Irrigation)PROMER Oum Er Rbia Basin Irrigated Agriculture Modernization Project (Projet de

Modernisation de l’Agriculture irriguée dans le Bassin de l’Oum Er Rbia)WUA Water User Association (Association des Usagers des Eaux Agricoles)

Regional Vice President: Hafez M. H. Ghanem

Country Director: Marie Francoise Marie-Nelly

Senior Global Practice Director: Guang Zhe Chen

Practice Manager: Carmen Nonay

Task Team Leader: Gabriella Izzi

ICR Main Contributor: Stephen Mink

TABLE OF CONTENTS

DATA SHEET.........................................................................ERROR! BOOKMARK NOT DEFINED.

I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES........................................................2A. CONTEXT AT APPRAISAL...........................................................................................................2

B. SIGNIFICANT CHANGES DURING IMPLEMENTATION.................................................................2

II. OUTCOME........................................................................................................................2A. RELEVANCE OF PDOs................................................................................................................2

B. ACHIEVEMENT OF PDOs (EFFICACY)..........................................................................................2

C. EFFICIENCY...............................................................................................................................2

D. JUSTIFICATION OF OVERALL OUTCOME RATING.......................................................................2

E. OTHER OUTCOMES AND IMPACTS............................................................................................2

III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME...................................2A. KEY FACTORS DURING PREPARATION.......................................................................................2

B. KEY FACTORS DURING IMPLEMENTATION................................................................................2

IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME.....2A. QUALITY OF MONITORING AND EVALUATION (M&E)...............................................................2

B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE........................................................2

C. BANK PERFORMANCE...............................................................................................................2

D. RISK TO DEVELOPMENT OUTCOME..........................................................................................2

V. LESSONS AND RECOMMENDATIONS..................................................................................2

ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS..............................................................2

ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION............................2

ANNEX 3. PROJECT COST BY COMPONENT...............................................................................2

ANNEX 4. THEORY OF CHANGE................................................................................................2

ANNEX 5. PROJECT AREA.........................................................................................................2

ANNEX 6. EFFICIENCY ANALYSIS...............................................................................................2

ANNEX 7. USE OF REMOTE SENSING FOR ASSESSING PROJECT’S IMPACTS...............................2

ANNEX 8. SUMMARY OF BORROWER COMPLETION REPORT...................................................2

ANNEX 9. BORROWER COMMENTS.........................................................................................2

ANNEX 10. PICTURES...............................................................................................................2

ANNEX 11. SUPPORTING DOCUMENTS....................................................................................2

The World BankMA-Modernization of Irrigated Agriculture in the Oum Er Rbia Basin ( P093719 )

DATA SHEET

BASIC INFORMATION

Product InformationProject ID Project Name

P093719MA-Modernization of Irrigated Agriculture in the Oum Er Rbia Basin

Country Financing Instrument

Morocco Investment Project Financing

Original EA Category Revised EA Category

Partial Assessment (B) Partial Assessment (B)

Organizations

Borrower Implementing Agency

Ministry of Agriculture ORMVA Doukkala, ORMVA Haouz, ORMVA Tadla, DIAEA

Project Development Objective (PDO)

Original PDOThe development objective is for participating farmers in the Oum Er Rbia basin to increase the productivity and to promote moresustainable use of irrigation water to overcome current and future water deficits.

Revised PDOThe Revised Development Objective is for participating farmers in the Project Area to increase adoption of more efficientirrigation technologies.

FINANCING

Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$)World Bank Financing

TF-92827 1,000,000 996,960 996,960

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IBRD-78750 70,000,000 70,000,000 62,358,190

Total 70996960 63355150 0Non-World Bank Financing

Borrower 45,500,000 0 30,700,000

Total 187496960 134352110 94055150Total Project Cost 116,500,000 70,996,960 94,055,150

KEY DATES

Approval Effectiveness MTR Review Original Closing Actual Closing27-May-2010 13-Sep-2010 01-Dec-2014 30-Jun-2016 31-Dec-2017

RESTRUCTURING AND/OR ADDITIONAL FINANCING

Date(s) Amount Disbursed (US$M) Key Revisions

04-Nov-2015 46.70 Change in Project Development ObjectivesChange in Results FrameworkChange in Loan Closing Date(s)Change in Safeguard Policies TriggeredChange in Implementation Schedule

KEY RATINGS

Outcome Bank Performance M&E Quality

Moderately Satisfactory Moderately Satisfactory Substantial

RATINGS OF PROJECT PERFORMANCE IN ISRs

No. Date ISR Archived DO Rating IP RatingActual

Disbursements (US$M)

01 30-Jun-2010 Satisfactory Satisfactory 0

02 28-Dec-2010 Satisfactory Moderately Satisfactory .17

03 26-Jun-2011 Moderately Satisfactory Moderately Satisfactory .17

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04 08-Jan-2012 Moderately Satisfactory Moderately Satisfactory .17

05 22-Aug-2012 Moderately Satisfactory Moderately Satisfactory 4.25

06 15-May-2013 Moderately Satisfactory Moderately Satisfactory 15.15


08 07-Mar-2014 Moderately Satisfactory Moderately Satisfactory 23.74


10 26-Feb-2015 Moderately Unsatisfactory Moderately Satisfactory 37.57

11 19-Aug-2015 Moderately Unsatisfactory Moderately Satisfactory 44.82

12 21-Dec-2015 Satisfactory Moderately Satisfactory 49.95


14 14-Sep-2016 Moderately Satisfactory Moderately Satisfactory 55.16


16 11-Sep-2017 Moderately Satisfactory Moderately Satisfactory 62.23

17 18-Dec-2017 Moderately Satisfactory Moderately Satisfactory 62.31

SECTORS AND THEMES

SectorsMajor Sector/Sector (%)

Agriculture, Fishing and Forestry 100Irrigation and Drainage 89Public Administration - Agriculture, Fishing & Forestry 11

ThemesMajor Theme/ Theme (Level 2)/ Theme (Level 3) (%)Private Sector Development 100

Jobs 100

Urban and Rural Development 67

Rural Development 67

Rural Infrastructure and service delivery 67

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Environment and Natural Resource Management 33

Water Resource Management 33

Water Institutions, Policies and Reform 33

ADM STAFF

Role At Approval At ICR

Regional Vice President: Shamshad Akhtar Hafez M. H. Ghanem

Country Director: Francoise Clottes Marie Francoise Marie-Nelly

Senior Global Practice Director: Laszlo Lovei Guang Zhe Chen

Practice Manager: Francis Ato Brown Carmen Nonay

Task Team Leader(s): Julia Bucknall, Hassan Lamrani Gabriella Izzi

ICR Contributing Author: Stephen D. Mink

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I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES

A. CONTEXT AT APPRAISAL

A.1 Context

1. Morocco is amongst the world’s twenty-five most water-stressed countries. Its acute per capita physical water scarcity is compounded by climate change resulting in downward-trending rainfall, and by urban economic growth with related water demand increases. Agriculture is the primary user of surface water, accounting for 85 percent of the withdrawals. The sector is subject to restrictions in water availability, due to – among other factors – the reduction in the water availability in the dams, the increase in the demand for potable water, and the priority given to potable and industrial uses. Severe restrictions in irrigation have been common in the last two decades. The pressure on agricultural water uses, and the reduced availability for irrigation, has resulted in farmers increasingly drawing on groundwater resources (where available) with attendant aquifer depletion.

2. Irrigated agriculture remains crucial for Morocco. Despite representing only 16 percent of the cultivated land, it contributes 7 percent of Gross Domestic Product (GDP), 50 percent of the country’s agricultural value-added, and over 75 percent of Morocco’s agricultural exports. It also provides jobs to half of the rural labor force. The country has 1.46 million ha of permanently irrigated land, half of which are part of nine large-scale irrigation schemes operated by public agricultural development agencies (Office Régional de Mise en Valeur Agricole, ORMVA). Three of these large-scale irrigation schemes – Tadla, Haouz and Doukkala - are supplied from the Oum Er Rbia river basin stretching south and east from Casablanca, representing half of Morocco’s large-scale irrigated areas (322,700 ha), and producing 60 percent of the country’s sugar beet, 40 percent of olive and 40 percent of milk. The area records particularly acute water scarcity problems: over the past two decades, the three ORMVAs received only 60 percent of the surface irrigation water for which the schemes were designed. Morocco’s farmers are very diverse in size of operation and commercial orientation: in the large-scale schemes operated by the three ORMVAs, three-fourths of all the farmers have less than five ha.

3. Government has proactively addressed the water scarcity issues while promoting a more productive agricultural sector. A Water Law (approved in 1995, revised in 2015) strengthened the legal framework for pursuing reforms to improve integrated water management, among others through the creation of River Basin Agencies (Agence de Bassin Hydraulique, ABH). The Government launched an agriculture strategy - the Morocco Green Plan (Plan Maroc Vert, PMV) – in 2008 to promote high-value agriculture while supporting sustainable agriculture in marginal areas. The same year, a synergic irrigation strategy - the National Plan for Saving Water in Irrigation (Plan National d’Economie de l’Eau d’Irrigation, PNEEI) – was launched to promote a more productive use of irrigation water through – among others – the modernization of 1/3 of the country’s large scale irrigated schemes (220,000 ha) to provide a water service meeting the standards of more efficient irrigation technologies (i.e. drip irrigation).

4. The design of the Modernization of Irrigated Agriculture in the Oum Er Rbia Basin Project (Projet de Modernisation de l’Agriculture Irriguée dans le bassin de l’Oum Er Rbia , PROMER) started with the PNEEI, and it was intended by Government to launch the modernization of the first 21,000 ha in large-scale irrigation perimeters. In the frame of the PNEEI, the design of the PROMER was replicated on an area five time larger shortly following the preparation of the PROMER, with African Development Bank’s (AfDB, 17,000 ha) and European

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Investment Bank’s (EIB, 22,000 ha) financing; and then with a second phase around 2015, with the scale up by the World Bank (30,000 ha), AfDB (26,000 ha) and direct Government’s financing (5,000 ha).

5. The PNEEI vision at the time of the project’s design remained unchanged throughout project implementation, and aimed to contribute to development of high value-added agriculture and to promote efficient and sustainable water resources management. The strategy to achieve this included to strengthen the regulatory framework to promote productive irrigation uses and more efficient water service by ORMVAs, through better cost-recovery, improved maintenance and an increased role for public private partnerships in operating existing schemes and establishing new ones. The Government subsidy scheme in agriculture, the Agricultural Development Fund (Fond pour le Developpement Agricole, FDA) has been aligned with the PMV and the PNEEI, including subsidies for more efficient irrigation technologies (mainly drip irrigation), amongst other things.

6. For the World Bank, water was central in the 2010-13 Country Partnership Strategy (CPS, Report No. 50316-MA, December 30, 2009)’s third pillar “Sustainable Development in a Changing Climate”, and remained strategic for the achievement of the following CPS’ (FY14-17, Report No. 86518-MA, April 1, 2014) Outcome 1.3, “Increase the productivity and value-added of the agri-food sector” under Result Area 1 “Promoting Competitive and Inclusive Growth”. The World Bank was well positioned to support the project due to its involvement in the water and agricultural sectors reforms (water DPL, P095840, 2006; PMV DPL series: P116557, 2011; P127822, 2013); as well as in investment operations for Large Scale Irrigation Improvement (LSII1, P005418, 1985; LSII2, P005462, 1993) and Water Resources Management (P005521, 1998; including a significant component in the Oum Er Rbia basin). The PROMER belonged to a package of integrated, World Bank-supported, operations in the Oum Er Rbia basin that included a sanitation project and grant-funded activities to build the capacity of the Oum Er Rbia Basin Agency to adapt to climate change.

Theory of Change (Results Chain)

7. The Project Appraisal Document (PAD) accompanies the Results Framework with a Results Chain that states the results associated with each of the project Components, and how these contribute to the PDO and high-level objectives. The modernization of the irrigation network and its management by the ORMVAs with new rules for surface irrigation water delivery would provide farmers with improved water service meeting the drip irrigation standards. Improvement of technical and managerial capacities of farmers and their partners, and partnerships with agribusinesses would allow farmers to have better access to technology (i.e. drip irrigation), financing, and markets and better groundwater knowledge. Thus, farmers would increase the value of agricultural production for a given amount of water (increase agricultural water productivity) while reducing groundwater use (promote more sustainable use of water), all this while increasing their revenues (overcome the economic impact of water deficit). In the long run, this would contribute to the PNEEI goal to develop high value added modern agriculture and to promote efficient and sustainable water resources management.

8. Approved on November 2015, the project restructuring document reiterates the theory of change, fully consistent with that in the PAD, but more detailed and effective for communications such as in subsequent aide-memoires. It elaborates further on the characteristics of the water service (individual and on-demand) meeting technical requirements of more efficient irrigation technologies (i.e. drip irrigation), and on the changes to be expected when coupling physical investments with complementary agronomic soft interventions, in terms of increasing yield, increased intensification, switching cropping pattern towards higher value crops - all of which would result in an increase of agricultural water productivity. In parallel, it clarified further the linkage between

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the on-demand access to surface water (vs. previous access to water on rotation, at least every two weeks) and the reduced need for farmers to complement surface water in between turns with more expensive and lower quality groundwater, thus contributing to a more sustainable use of the overexploited groundwater.

9. The restructuring brought no changes in the theory of change per se, nor on scope, activities, components, costs, but rather realism in the timeframe needed for proof on the ground of the theory of change, and thus on setting the level of the PDO within the same theory of change (Annex 4).

A.2 Project Development Objectives (PDOs)

10. The development objective for the project was for participating farmers in the Oum Er Rbia basin to increase the productivity and to promote more sustainable use of irrigation water to overcome current and future water deficits.

A.3 Key Expected Outcomes and Outcome Indicators

11. The project’s success was to be measured by three indicators for corresponding outcomes: Water productivity per unit of irrigation water delivered (DH/m 3 ) , measuring more productive use of water

to verify that the investments allow farmers to increase the value of their agricultural production per unit of water. Water productivity per unit of water consumed was to be measured on an experimental basis using innovative remote sensing techniques.

Reduction of volume of groundwater abstracted (m 3 ) , measuring more sustainable use of water. Reduction of volume of groundwater consumed was to be measured on an experimental basis using innovative remote sensing techniques.

Agricultural production increase (DH/farm) , measuring the overcoming of the water deficit in economic terms.

A.4 Components

12. Component 1 - Improving the irrigation water service (Appraisal: DH902 million corresponding to US$90.00 million; closing: DH797 million corresponding to US$84.52 million1). Component 1 aimed at providing participating farmers with irrigation service necessary for high efficiency drip irrigation. This was to be achieved through (i) replacing irrigation canals with pressurized systems or adapting pressurized systems already in place for sprinklers to drip irrigation, and (ii) providing irrigation water on-demand, with a predetermined annual quota according to surface water availability. Component 1 activities included: detailed studies including topographic works and laboratory tests, technical assistance for works monitoring and control, adapting regulation of main adduction channels including changing hydro-mechanic systems, construction of distribution pipes, including installation of hydraulic equipment, construction or adaptation of pumping stations, filtration systems and various civil works such as decantation basins. This component also included the preparation and signature of water supply contracts between ORMVAs and farmers.

13. Component 2 - Supporting farmers and their partners (Appraisal: DH46 million corresponding to US$4.45 million; closing: DH36 million corresponding to US$3.82). Component 2 aimed to improve targeted farmers' access to technology, financing and agricultural markets. This was to be achieved through provision of technical assistance

1 Cost by component in US$ at closing is calculated from actual cost in DH at closing using exchange rate at closing.

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to ORMVAs to assist them: (i) to support the farmers and agro-processors to develop and enter into partnership agreements aiming at securing markets for high value crops; (ii) along with equipment to implementation a Market Information System (iii) to help farmers to use the new irrigation equipment and to improve their agricultural practices; (iv) along with provision of mobile laboratory equipment to monitor performance of new irrigation systems; (v) to establish a farmer irrigation alert system; and (vi) to carry out awareness campaigns for sustainable use of groundwater by farmers.

14. Component 3 - Assisting implementing agencies in project management and monitoring (Appraisal: DH52 million corresponding to US$5.00 million; closing: DH32 million corresponding to US$3.39 million). Component 3 aimed at building capacities of the Borrower and project implementing agencies in management and M&E of project activities and results including for compliance procedures agreed with the World Bank. The main Component 3 activities were: (i) Provision of training, technical assistance and computer equipment to MAPM, for designing and implementing technical and management tools to be used by ORMVAs; (ii) Provision of training and technical assistance to ORMVAs, for improving Project management tools, Project monitoring and evaluation and implementation of the Project in general, including the Environmental Management Plans and Land Acquisition Plans; (iii) Provision of technical assistance for reviewing on-farm irrigation projects to be submitted by farmers; (iv) Provision of vehicles and computer equipment for Project management and supervision and (v) Rehabilitation of, and provision of equipment for field extension offices.

15. The Loan was in Euro and fully disbursed. Due to EUR-US$ exchange rate changes over project implementation, loan amount in US$ currency was lower than at Appraisal (US$62.3 million instead of US$70 million). In local currency, overall project cost totaled DH865 million, lower than estimate at Appraisal (DH999 million), demonstrating efficient use of funds. Of actual overall costs, DH575 million (66 percent) was covered by the World Bank (against an estimate of DH568 million, 57 percent at Appraisal) and DH290 million (34 percent) by the Government (against DH432 million, 43 percent). To be noted that at Appraisal the contribution of the Government in terms of subsidy for drip irrigation equipment was not factored in, which totals DH468 million.2

B. SIGNIFICANT CHANGES DURING IMPLEMENTATION

B.1 Revised PDOs and Outcome Targets

16. Following the mid-term review in December 2014, restructuring was approved in November 2015 to include revision of the PDO that became: for participating farmers in the Project Area3 to increase adoption of more efficient irrigation technologies.

17. The revised PDO is adequate in that it is concise, specific on participating farmers being the beneficiaries and on the expected adoption by them of more efficient irrigation technologies, which is an outcome for which the project can realistically be held accountable for over the project timeframe. While reaffirming the theory of change, the restructuring sets the PDO bar at a level consistent with the actual timeframe needed to complete over the whole project area the network’s modernization, then the farmer adoption of more efficient irrigation technologies, and finally the adjustment of agricultural practices. While the project lays the foundation for an increase in agricultural water productivity and a more sustainable use of water resources in the face of water

2 FDA subsidy is about 36,000 DH/ha over the PROMER 18,300 ha of net area.3 “Project Area” means the three irrigated areas in the Oum Er Rbia basin, Doukkala, Haouz and Tadla. There was no change in the Project Area with the restructuring.

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deficit, these results over the whole project area could only be achieved beyond closing.

B.2 Revised PDO Indicators

18. The Results Framework was revised to align with the revised PDO: the original PDO-level indicators were dropped; while the original intermediate indicator on the adoption of improved irrigation technologies (mainly drip irrigation) was raised to the PDO level and complemented by World Bank core indicators. The original PDO-level indicators continued to be tracked in the area where network’s modernization was more advanced to confirm the theory of change.

19. With the restructuring, the PDO indicators became: Direct project beneficiaries (number), of which Female beneficiaries (%) , measuring the provision of an

improved water service meeting the technical requirements of more efficient irrigation technologies, as a consequence of the network’s modernization

Clients who have adopted an improved agricultural technology promoted by the project (number) of which female (number), measuring farmers’ adoption of improved irrigation technology (mainly drip irrigation)

Project area equipped with improved irrigation technologies (%) , measuring the adoption of improved irrigation technology (mainly drip irrigation)

B.3 Other Changes

20. The project restructuring extended the closing date by 18 months, to December 31, 2017. Disbursement profile estimates were updated, to account for the disbursement at the time of the restructuring and the estimates for the remaining revised duration of implementation. There was a triggering of OP 4.37 on Safety of Dams, to account for the fact that, while the project did not finance the construction or the rehabilitation of dams, an internal review of the water portfolio in Morocco carried out in FY15 found its success to be contingent on the storage and operation of nine existing dams. There were no changes in activities, components, component costs, implementation arrangements, nor funds cancellation.

B.4 Rationale for Changes and Their Implication on the Original Theory of Change

21. The timeframe needed for proof on the ground, rather than the theory of change per se, was modified at restructuring (Annex 4). The assessment at restructuring was that project implementation was on the path of confirming the theory of change. At that time, network’s modernization was completed in three out of eight sectors targeted by the project (Ittihad and Omrania, Tadla; Ouest 1, Doukkala). Results on the demonstration plots as well as qualitative observations in the first farmers' fields on which more efficient irrigation technologies (drip irrigation) were introduced, substantiated the project assumption of the increase of agricultural water productivity as a consequence of the provision of an improved water service and consequent introduction of more efficient irrigation technologies. Discussions with farmers confirmed their willingness to reduce the use of groundwater as service levels improved and surface water was made available individually and on demand. The restructuring accommodated the lengthened timeframe that was needed to complete the network on the remaining five sectors, then the farmer adoption of more efficient irrigation technologies, and finally the adjustment of agricultural practices. Definitive evidence to demonstrate the anticipated increase in agricultural water productivity and more sustainable use of water resources on the whole project area, would only be achieved beyond project closing, and thus removed from the PDO. In addition, PDO was revised to take out the reference to sustainability, a vague

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concept with attribution issues.

II. OUTCOME

A. RELEVANCE OF PDOs

Assessment of Relevance of PDOs and Rating (Rating: High)

22. The theory of change of the project (unchanged with the restructuring) has High relevance for World Bank engagement in Morocco and its irrigation sector. The project supports the Government’s strategic priorities stated in the PNEEI and PMV, which are to increase agricultural water productivity and managing water more sustainably. The Government’s strong commitment to the project was shown by its own financing of the feasibility studies and detailed designs, in addition to covering administrative costs, co-financing and provision of subsidy for the adoption of more efficient irrigation technologies. For the World Bank, water was central to the third pillar of the 2010-13 CPS “Sustainable Development in a Changing Climate”. The project was the first operation prepared in support of the PNEEI, and provided the core design for the implementation of the Government’s PNEEI on a much larger area, including with the support of other financial partners’ (AfDB, EU). Experience gained from its implementation informed the World Bank expanded engagement in the sector through the approval in 2015 of a follow-up operation, the Large-Scale Irrigation Modernization Project (PMGI, P150930), which scales up the modernization of an additional 30,000 ha in large-scale irrigation perimeters, to the benefit of more than 9,000 farmers and with an increased focus on improved water service delivery.

23. The project remains consistent with the current CPS for Morocco (FY14-17). It contributes to the Strategic Outcome “Increase the productivity and value-added of the agri-food sector” under the first Result Area “Promoting Competitive and Inclusive Growth” of the CPS. The CPS focus on improving the prospects of the rural poor will be addressed through sustainable farming practices, higher incomes, and more diverse income opportunities. The project contributes to these through increasing the value added from irrigation water and crops produced, linking producers to improved agriculture value chain management and commercialization practices, and broad support to the reform of extension services. With the majority of targeted farmers being smallholders, the project also contributes to the World Bank Group’s twin goals of ending extreme poverty and boosting shared prosperity in a sustainable manner.

B. ACHIEVEMENT OF PDOs (EFFICACY)

Assessment of Achievement of Objectives/Outcomes

Post-restructuring PDO (For participating farmers in the Project Area to increase adoption of more efficient irrigation technologies) (Rating: Substantial)

24. The project fully delivered on the network modernization, providing improved water service meeting the technical requirements of more efficient irrigation technologies. The number of farmers with access to improved service (quantified by Direct project beneficiaries) totaled 6,811 farmers (PDO indicator, 110 percent of target) of whom 9 percent women (456 percent of target) over an area of 22,062 ha (Intermediate indicator, 104 percent of target).

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25. The project is likely to fully deliver on the adoption of more efficient irrigation technologies by December 2018. At the time of the Implementation Completion and Results Report (ICR), farmers adopting a more efficient irrigation technology totaled 2,305 (PDO indicator, 74 percent of target) of whom 230 women (383 percent of target) over 43 percent of the project area out of a goal of 70 percent (PDO indicator, 59 percent of target). For the remaining farmers and area, the installation of irrigation equipment is solidly ongoing: contracts have been signed on 96 percent of the project area, thus well above the 70 percent goal (137 percent of target), and detailed designs are approved or in the process of being approved, for works to start as harvest takes place. By December 2018, adoption of more efficient irrigation technologies is expected to reach 3,300 farmers (101 percent of target) over 69 percent of the project area (98 percent of target). The situation across the eight irrigation sectors targeted by the project is diverse, with some sectors (Ittihad and Omrania, Tadla; Ouest 1, Doukkala) having exceeded the target as the modernization of the network was completed in 2014, while other sectors are less advanced as the modernization of the network was completed more recently (Annex 5).

26. Adoption of drip irrigation took longer than expected. Installation could start only once the network modernized, which occurred with various degree of delay depending on the irrigation sector. Farmers could access up to 100 percent subsidy for the irrigation equipment though the FDA, but collecting the administrative papers to demonstrate eligibility proved complex due to internal family difficulties achieving co-heritor agreement on recognizing a representative, outright land-right conflict, or difficulties between leaseholders and landowner updating lease agreements. Once administrative papers collected and irrigation companies hired, detailed designs took time to be completed, as irrigation companies were stretched over too many contracts and sometimes suffered slowness in the payment for complete works, which constrained their reactivity. The ORMVAs and the Directorate of Irrigation and Rural Infrastructure (Direction de l’Irrigation et de l’Aménagement de l’Espace Agricole, DIAEA) of the Ministry of Agriculture have been working to clear these hurdles based on the past three years’ experiences, including bringing the companies’ Federations into a stakeholder implementation commission with the FDA and the Groupe Credit Agricole du Maroc in charge of the payment of the subsidies to the farmers. It is anticipated that the remaining area needing to be equipped to achieve targets will be completed during 2018 since these bottlenecks have been largely overcome.

27. Achievement of the revised PDO is deemed Substantial. The provision of improved water service meeting technical requirements of more efficient irrigation technologies was fully achieved. The adoption of more efficient irrigation technologies (in terms of farmers and area) is partially achieved at the time of the ICR, but likely to be fully achieved by December 2018, as contracts are signed over an area largely exceeding the target, detailed designs are approved or in the process of being approved, works have started in several sites in May - June 2018, farmers’ demand remains strong, and institutional commitment to the PNEEI unchanged.

Pre-restructuring PDO (For participating farmers in the Oum Er Rbia basin to increase the productivity and to promote more sustainable use of irrigation water to overcome current and future water deficits) (Rating: Substantial)

28. Assessment of achievement of pre-restructuring PDO was possible for three out of eight sectors where network infrastructure was completed first (in 2014), and farmers have been using drip irrigation for the 2015-2016 and the 2016-17 cropping seasons: Ittihad and Omrania, Tadla; and Ouest 1, Doukkala. The contexts of the other five sectors (agronomic, social, technical) were carefully assessed and were found sufficiently similar to the three for which results are available, so that it is reasonable to expect that analogous results will be recorded once

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improved irrigation technologies begin to be put in use.4

29. The project exceeded expectations on the first part of the PDO related to increase in productivity. Productivity per unit of water delivered increased more than anticipated in both Tadla and Doukkala (PDO indicator, 113 and 180 percent of target, respectively). In particular: In Tadla, there was a higher than anticipated increase in value of agricultural production following provision of

the improved water service and consequent adoption of more efficient irrigation technologies, with a combination of increase in crop yields, increase in cropping intensification, and diversification towards higher value crops. Vegetables were cropped on an area much larger than expected (intermediate indicator, 176 percent of target). This switch was facilitated by the support provided to farmers along the value chain, with the creation of partnership agreements and aggregations (intermediate indicator, 1,111 percent of target), fodder corn on an area larger than expected (intermediate indicator, 154 percent of target), while area under tree crops remained stable. In the same way, Water productivity per unit of water consumed, assessed on an experimental basis using innovative remote sensing techniques by the Royal Centre for Remote Sensing ( Centre Royal de Teledétéction Spatiale, CRTS), increased by 68 percent (PDO indicator, 206 percent of target) (Annex 7).

In Doukkala, a similar increase in value of agricultural production was observed, again due to a combination of increase in crop yields, increase in cropping intensification, and diversification towards higher value crops. Vegetables and fodder corn were cropped on an area much larger than expected (intermediate indicator, 520 and 855 percent of target, respectively), and partnership agreements and aggregations created (intermediate indicator, 100 percent of target). However, in this case the water delivered increased, as the ORMVA provided water during the summer season to the modernized sector, contrary to non-modernized neighboring sectors, as an incentive to farmers to transition to new irrigation technology and to create a positive demonstration effect. As this preferential treatment is no longer in place for the 2018 summer season, it is expected a decrease compared to the previous season in both value of agricultural production and in water delivered, which will nevertheless translate into a higher productivity compared to target.

30. The project exceeded expectations on the second part of the PDO related to the promotion of more sustainable use of water (measured by the impact of modernization on groundwater) in view of current and future water deficit (measured by the economic impact of the modernization on farmers revenues). In Tadla, there was a 43 percent reduction of the volume of groundwater abstracted,5 far more than envisaged (PDO indicator, 215 percent the target). This was the direct consequence of the provision of improved water service: out of the farmers with a well, 80 percent reduced groundwater abstraction, half of which stopped pumping altogether. 6 This reduction was confirmed by the analysis on an experimental basis by the CRTS, which estimates a reduction in volume of groundwater consumed by 61 percent (PDO indicator, 305 percent of target). Farmers are far more resilient in the

4 These three sectors account for 30 percent of the project area. Three additional sectors (Annour, Tadla; Nfis and Ouled Gaid, Haouz), accounting for 45 percent of the area, had the first cropping season under drip irrigation ongoing at the time of the ICR, with data on impacts to be available following harvest of summer crops (November 2018). The last two sectors (S6 and Nord, Doukkala), accounting for 25 percent of the area, are expected to have the first cropping season under drip irrigation in the winter of 2018-2019, with data on impacts available following harvested of winter crops (June 2019).5 No groundwater is present in Doukkala.6 Reduction in groundwater abstraction was the consequence of the provision of an improved surface water service (on-demand rather than on rotation), rather than the consequence of enforcement of groundwater abstraction authorization as envisaged at Appraisal. At mid-term review, it was already evident that a positive incentive (improved surface water service) would give a more positive and sustainable outcome than negative incentive (enforcement of restrictions). The related intermediate indicator on Number of participating farmers having applied for groundwater abstraction authorization was thus deleted at restructuring.

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face of current and future water deficit, with agricultural production increase having largely exceeded expectations in both Tadla and Doukkala: for small farms, agricultural production increased by 166 percent and 142 percent respectively (553 percent and 473 percent of target); and for medium farms, by 77 percent and 67 percent (256 percent and 223 percent of target).7

31. Achievement of the original PDO is deemed Substantial. Increase in agricultural production, increase in productivity, reduction in the use of groundwater, all largely exceeded expectations in the three of the eight sectors for which assessment of pre-restructuring PDO could be carried out, demonstrating the solidity of the theory of change which was correctly confirmed with the restructuring. The analysis of the socio-economic conditions in the other five sectors corroborate the likelihood to achieving the same results in this remaining area. Indeed, anecdotal evidences from interview with farmers in the three sectors where cultivation with drip irrigation was just starting at the time of the ICR demonstrate decision of farmers to switch to higher value crops on part of the farm. While all these elements would justify a high rating, the implementation delays call for the Substantial rating.

C. EFFICIENCYAssessment of Efficiency and Rating (Rating: Substantial)

32. At Appraisal, feasibility studies were available for the following sectors: Ittihad and Omrania, Tadla; Ouest 1 and S6, Doukkala, and N’fis, Haouz. For this ICR, the economic and financial analysis of these representative studies was redone, using actual costs and benefits. The results (Table 1, Annex 6) show an IRR that varies from 16.5 to 25.5 percent depending on the sector, with this range higher than anticipated at Appraisal. These results are robust to unanticipated shortfalls in production. The exceeding of Appraisal IRR is principally due to a more prominent increase in the value added of production, coupled with lower costs compared to estimates at Appraisal as a consequence of good competition during the bidding process (-10,5 percent for Component 1 under which 90 percent of the expenses were incurred), which more than outweighed the impact of implementation delays as demonstrated by the higher than anticipated IRR at closing.

Table 1: Internal Rate of Return (IRR)Ittihad & Omrania,

Tadla

Ouest 1,Doukkala

S6,Doukkala

N’fis,Haouz

IRR at Appraisal 21.7 19.6 15.0 15.6IRR at Closing 22.4 25.5 20.2 16.5

33. The project’s network costs also compare favorably with international benchmarks, as shown by analysis undertaken in the final year of project implementation. The modernization costs under the project ranged between US$4,600 and US$6,600 per ha, lower than i.e. comparable cases in nearby Spain (US$4,900 to US$8,400 per ha).

34. Efficiency is deemed Substantial. Notwithstanding the higher than expected benefits coupled with actual lower costs, the IRR at closing exceeding values at appraisal, and the use of money aligned with objectives throughout implementation (pre and post-restructuring), the ICR assesses efficiency as Substantial due to the implementation delays.

7 Data for agricultural production increase in large farms need to be used prudently: as the group has no upper boundary, the average area of the sample used for the baseline and the average area of the sample used at project closing were substantially different.

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D. JUSTIFICATION OF OVERALL OUTCOME RATING

35. The overall outcome rating is considered to be Moderately Satisfactory, based on the above assessments of: Relevance of Objectives (Rating: High); Efficacy of Achieving Objectives (Rating: Substantial, both pre- and post-restructuring);8 Efficiency (Rating: Substantial).

36. While the above ratings technically justify a Satisfactory overall rating, the project is nonetheless rated Moderately Satisfactory. Considering the implementation delays which resulted in the on-going adoption of more efficient irrigation technologies on part of the target area, and notwithstanding the multiple elements pointing towards the likelihood of this to happen, the ICR prefers to err on the side of caution and adopt a Moderately Satisfactory rating.

E. OTHER OUTCOMES AND IMPACTS

E.1 Gender

37. Efforts were undertaken by the ORMVAs to account for the gender dimension in the project: women farmers are represented in some Water User Associations (WUAs), were specifically targeted by the ORMVAs and the Technical Assistance in support to farmers (extension, technical guidance, training, field visits), and benefitted from more efficient irrigation technologies beyond expectations. Despite legal and socio-cultural constraints which complicate women’s access to land, women represented 9 percent of farmers benefitting from access to improved water service (456 percent of target), and 230 women adopted more efficient irrigation technologies (383 percent of target).

E.2 Institutional Strengthening

38. PROMER activities on institutional strengthening focused primarily on ORMVA capacities for improved water service delivery and on farmers Water User Associations (WUA). Significant success was achieved.

39. The project built ORMVAs’ capacity through testing a range of activities for the provision of an improved water service. This capacity building came in the context of preceding government measures that reduced ORMVAs staffing levels and constrained recruitments, and that elaborated a national agricultural extension approach that intended to consolidate capacity in a newly created National Agency for Agricultural Advisory Services (Office National du Conseil Agricole, ONCA), with ORMVAs’ agriculture advisory capacity and personnel to transfer to this new organization. In the event, ORMVAs navigated much of the PROMER implementation period with the broader government initiative on advisory services advancing slowly and only firmly taking form in 2017. In recognition of ORMVAs reduced personnel, the PROMER appropriately mobilized the technical assistance needed for the investment phase through contractual services under ORMVA supervision. These technical assistance contracts also provided for agronomic support to WUA – demonstration plots, product aggregation for marketing – while ONCA consolidated its strategy and human resources in preparation for establishing its field presence.

8 As there is no difference in efficacy ratings of pre- and post restructuring, a split evaluation using the pre- and post-restructuring disbursement shares (74 and 26 percent, respectively) to derive the overall outcome rating is immaterial for the ICR purpose.

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40. PROMER’s modernization of ORMVAs networks is bringing a change in their human resource needs, and they have been successfully accommodating these under the project. The previous systems required more field-level staff for the manual management of irrigation control structures in coordination with farmers. With PROMER’s investment in remotely controllable water delivery structures, and enhancement of tools for real-time measurement and communication to farmers of irrigation needs, there is less need for field-level personnel, but more technically-skilled staff required for operation of the new systems.

41. ORMVAs have also undertaken reorganization and capacity building so as to better deploy their human resources to manage the quality of service delivery to farmers now using more efficient irrigation technologies. An important specificity of this technology is that it uses less the water storage capacity of the field, so that the crops in the field an only withstand a couple of days without irrigation should a delivery system breakdown occur. ORMVAs need to strengthen their capacity to monitor and respond in real-time to any malfunction of the delivery network under their control. The ORMVA Tadla, for instance, has organized its operations and maintenance staff into two response teams with updated accountabilities and operational procedures, and technical qualifications for repairing the new system equipment. In addition, all ORMVAs have strengthened their grievance registering and response mechanisms so as to enable shorter circuits from complaints being received to solutions being implemented.

42. To speed up adoption of more efficient irrigation technologies, the DIAEA and the ORMVA put in place several measures, including : The adaptation of the provisions of the ministerial instruction for the preparation of the documents for on-farm irrigation equipment in the project area, the implementation of a new system of qualifying companies eligible to apply to irrigation projects subsidized by the FDA, the development of a toolbox allowing the ORMVAs to control the on-farm irrigation equipment operation in the best conditions, the elaboration of a procedure for collective projects for on-farm irrigation equipment, the internal reorganization of the ORMVA teams in order to speed up the approval of the detailed studies, the revitalization or creation of the AUEA, and the organization of the awareness days with the irrigation companies.

43. The establishment or strengthening of WUAs in the PROMER areas was catalyzed by the ORMVAs as part of the project. At the national level, earlier Government strategies had aimed to promote participatory management of irrigation systems. But progress of these earlier reform efforts was difficult and only partially implemented, and farmer associations for participatory management had made little impact as PROMER moved from design to launch. This context notwithstanding, the WUAs in the PROMER area have functional and representative boards that have succeeded in getting adequate and coordinated participation of their members in the project activities. The WUAs have actively engaged in resolving issues of administrative, technical or social nature under the project. The WUAs were supported by the ORMVAs that contracted technical assistance so that farmers were adequately empowered as client and signatory for the contracts with the irrigation companies in charge of the irrigation system design and installation. The WUAs are actively participating in supervising the companies during works. In parallel, the WUAs have coordinated the participation of their members in field demonstrations and study tours that have provided farmers with information helpful in their decisions on farm investments and agronomic management.

44. WUAs are now deliberating what purposes and activities they may pursue now that the end of the investment phase is in sight. Forefront in their expressed priorities is to overcome marketing for their products, particularly as they shift to higher-value and in cases more perishable vegetables and fruits. The organizational and financial foundations needed to collectively take on such marketing challenges will require the development of partnership between the WUAs and the stakeholders along the value chain. Support for such further institutional capacity

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building – initially included under the technical assistance in support to farmers - demonstrated to be premature under PROMER. The ORMVAs are now anticipating coordinating with the ONCA, established in 2011, as the latter’s strategic plan and support from government will place it in a leadership position of partnering with farmer groups for their agronomic and marketing activities. A framework agreement between the ONCA and the DIAEA is in the process of being finalized in order to ensure the support to farmers in the modernized sectors.

E.3 Poverty Reduction and Shared Prosperity

45. With the majority of targeted farmers being smallholders, the project contributes to the World Bank Group’s twin goals of ending extreme poverty and boosting shared prosperity in a sustainable manner. For example, the ORMVA of Haouz successfully experimented the inclusion of a group of farmers over an area of about 800 ha characterized by small, irregular and fragmented plots which did not undergo historically land consolidation. The very small plots in principle made these farmers ineligible for irrigation equipment subsidies according to the rules of FDA that aimed to avoid high unit-cost situations. However, the collective conversion (with contract signed between the irrigation company and the WUA, as opposed to individual conversion with contract signed between the irrigation company and the farmer) allowed the WUA and the ORMVA to group these smaller farmers with larger one, such that the average plot size and corresponding cost were within the standards set by the FDA. Since there are numerous pockets of communities elsewhere amongst Morocco’s nine ORMVAs that have similar situations of non-rationalized and fragmented parcels, this experience provides a road map for inclusion of these small farmers in the collective irrigation conversion model, enabling investment benefits to be spread to those with minimal land assets.

E.4 Other Unintended Outcomes and Impacts

46. Clarification of Land Rights and ORMVAs financial sustainability . The PROMER-supported process for farmers to acquire irrigation equipment (and access subsidies for this investment) required documentation that confirmed property rights, and ascribing of legal ‘power of attorney” by any co-rights holders. Many farm families sought to complete this documentation, so as to access the irrigation investment subsidy from the FDA, and in the process resolved issues affecting many farms such as ownership disputes, internal family co-inheritance conflicts and updating of land titles. For example, in Ouest 1, Doukkala the process facilitated updating documentation of land rights and resolving conflicts over 8 percent of the sector area. Mobilization of technical staff of ORMVAs, of representatives of the relevant WUA, and of local authorities, in the context of PROMER implementation, assisted in the resolution of these land issues as a prerequisite to access to the irrigation investments. Clarifications of land rights had positive implications on the finances of the ORMVA, as in the process these farmers paid back their debt for water fees. In the same way, the individualization of the water service (with water distributed to individual farmers and charged on a volumetric basis with individual meters) in the sectors previously characterized by sprinkler irrigation (with water managed for group of farmers and charged on a per hectare basis) increased cost recovery by the ORMVAs, while providing an incentive at the farmers to use water more efficiently.

47. Increase of irrigated land rental value . With the project’s investment enabling a significant increase in revenues from irrigated land, it could be expected that the value of the land would increase, as documented in Ouest 1, Doukkala where a survey on land rental value was conducted in 2017. The sample of 16 farmers accounting for 76 percent of rented land in the sector indicates that the rental value of land rose from DH3,250/ha on average before completion of modernization (2012-13) to DH7,500/ha after (2016). Interviews as well as comparison with a

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neighboring sector where introduction of drip irrigation did not start yet, indicate that the project was the main factor that explains this significant rental value increase over the period.

48. Strengthening of private sector . The Government is committed to significant further public investments enabling conversion to more efficient irrigation technology under the PNEEI. With tens of thousands of farmers converting to more efficient irrigation technologies, in a not-too-distant future they will be replacing and upgrading their drip irrigation equipment as these amortize. For this to proceed successfully, farmers will need access to a capable and competitive private sector of equipment and service providers. The PROMER has contributed to this, through ORMVAs and the Directorate of Irrigation and Rural Infrastructure (Direction de l’Irrigation et de l’Aménagement de l’Espace Agricole, DIAEA) of the Ministry of Agriculture directly engaging with such companies as they have competed for and been awarded contracts with the WUAs for design and installation of the on-farm irrigation equipment. This included accommodating a Government decision in 2014 to promote small- and medium-scale enterprises through reserving a portion of all public contracts for them. While implementation of this has proven difficult government-wide, the PROMER incorporated this into lot size definition for on-farm investments beginning in 2015 and strengthened their accompaniment of Small and Medium Enterprises (SMEs) awarded lots under the project. Over the timeframe of the project, the number of registered firms providing drip irrigation services has nearly tripled, with these firms joining two national federation to improve their organization as well as the services offered to the farmers (AMIAG and FMAPI), with positive implications in terms of sustainability of the investments. These firms are developing expertise and experience on both technical and social dimensions of working with farmers, and this capacity will significantly improve the prospects for sustainability of the more efficient irrigation technologies systems as they move beyond the current transition phase to operational and subsequent equipment renewal stages.

49. Introduction of fertigation . As part of the on-farm investments in more efficient irrigation technologies, farmers have systematically installed the mixing tank and dilution equipment needed to deliver dissolved fertilizers through irrigation to their crops. While not given prominence at Appraisal, benefits of this are important on both financial and environmental dimensions. Farmers report anecdotally (and research confirms), that they are achieving higher yields with lower fertilizer use, due the higher efficiency of fertigation, and that this comes at lower labor requirement, thus enabling cost savings on both labor and fertilizer inputs. Environmentally, since lower quantities of fertilizer are being applied per crop and season, this will help offset the higher cropping intensity and enable better management of nutrient loading that could potentially percolate with negative impacts on groundwater. It will be important for on-going monitoring of samples of farmers by the ORMVAs to include production costs so as to enable quantification of the financial benefits of fertigation, while the established and on-going ORMVA environmental monitoring capacity is tracking groundwater quality in the conversion areas.

50. Training of Rural Youth . In the context of the PNEEI and the PMV, apprenticeship programs and training targeting young rural men and women were put in place at vocational training centers. For example, in Zemamra Commune (Doukkala), a residential training center for more efficient irrigation technicians was created in 2014 in partnership with the ORMVA, the WUAs (Tnine, Gharbia and Zemamra) and the Moroccan association of private enterprises specialized in drip irrigation (AMIAG). Combining both theory and practice, the program has provided training in more efficient irrigation technologies and fertigation to 181 youths (including 18 girls) having secondary schooling, and to 20 youths (including nine girls) who have begun a technician apprenticeship program on localized irrigation technology installation and maintenance. The trained youth are either returning home to assist with family farms converted to more efficient irrigation technologies or finding employment in private enterprises or in the ORMVA.

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III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME

A. KEY FACTORS DURING PREPARATION

51. Adequate design choices. The ICR found the project design adequate, which is considered a major achievement considering the innovative nature of the project, both at national and international levels (somehow similar efforts can be found only in Spain and Israel, within however a different institutional context). During preparation, the Government’s and World Bank’s teams had to develop the theory of change from scratch, as well as the technical elements and implementation modalities, without opportunities of building on existing examples. Decision to finance the network investments on the Loan while relying on the PNEEI structure of the FDA for the irrigation investments was found adequate, as opposed for example to a turn-key implementation, with farmers receiving the completed drip irrigation systems at the end of the process. Adopted project design recognizes the fundamental difference in role of state in main conveyance system and on-farm irrigation equipment provision, maintenance and financing. At preparation, the turn-key approach was discussed, but quickly discarded in favor of WUAs benefitting from Government’s subsidy as this would allow for tailoring to specific farmer’s conditions and needs and for more ownership.

52. Well-adapted institutional structure. The core institutions for project management and implementation were the ORMVAs, the DIAEA, and the WUAs (either created or strengthened). This was a well-adapted institutional structure, and proved resilient in partnership, and flexible and adaptive as the project moved through anticipated phases and confronted unexpected hurdles. Moreover, this structure was fully aligned with the PNEEI. Extension advice for farmers was an essential service in view of the introduction of an irrigation technology new to most of the farmers and the crop diversification and intensification that would ensue. During preparation, the Government was reformulating and not yet settled on its national approach and institutional responsibilities for agricultural extension. The project preparation adequately navigated this by integrating a technical assistance under Component 2, which gave the project flexibility to reinforce accompaniment of farmers on technical and agronomic elements while the wider extension institutional discussion slowly progressed, with ONCA somehow establishing its presence towards the end of the project. Several activities of the project extended into the domain of other institutions: the River Basin Agencies (ABH) with the mandate for groundwater monitoring and management, and the Agricultural Development Agency (ADA) with the mandate for value chain development. The project design appropriately anticipated a coordination outreach to these two entities, but did not weigh down the project structure by building them directly into the management and implementation of project activities.

53. Complex social dimensions of land aspects. Social aspects of land ownership turned out to be complex, extending the time required to collect the administrative documents needed to benefit from irrigation investment with FDA subsidy. With a single farm often having several co-owners within a family, or boundary of use conflicts across families, resolving these took time before irrigation investments could proceed. The breadth and depth of these issues was not fully appreciated at Appraisal even by the ORMVAs, with their registries for water delivery and payment often operating adequately with a single farmer counterpart per farm. While the project preparation did not reveal or expressly respond to this land management complexity, it did fortuitously establish an implementation mechanism for Component 2 that proved flexible and adaptable to the situation, with the ORMVAs and the technical assistance collaborating with the WUAs to address and resolve the issues as the on-farm investment activities got underway.

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54. Procurement planning and timetable. The bulk of the project’s procurement occurred under Component 1 for the construction or modernization of water networks to pressurized pipes with associated civil work and equipment for pumping (where needed), silt decantation, filtration, metering and control structures. As it proceeded it began to run the gamut of what could be considered the “normal” hiccups that cumulatively led to delays of up to eighteen months in installation of the water networks. This unanticipated delay proved important in that in resulted in the 2014 mid-term review assessing that a restructuring was needed and a shrinkage in the ambitiousness of the PDO necessary within the time remaining to proposed project closing. While it is true that the specific content of the procurement, particularly pressurized pipe and filtration stations, was new for the ORMVAs, there was a solid track record of the Government working with the World Bank on procurement procedures, procurement packages of comparable scale, and procurement in the irrigation sector and hydrological system domain. It is therefore unfortunate that the procurement planning during project preparation was over-optimistic on timeframe and became the main contributor to the time squeeze subsequently encountered on achieving the original PDO’s outcomes.

B. KEY FACTORS DURING IMPLEMENTATION

55. Government and the project implementing agencies. These were fully engaged and well coordinated during implementation. DIAEA was very active in ensuring that management systems were put in place and information on emerging problems quickly acted upon. Regarding access to subsidy for drip irrigation under the FDA, the procedure was revisited several times over the last three years of project implementation to account to the challenges encountered on the ground. Leadership in the ORMVAs was an important ingredient of solid implementation performance, and although there were differences amongst the ORMVAs that reflected management styles as well as adaptations to local contexts, the DIAEA was persistent in keeping critical path actions on the agendas of the ORMVAs. Adequate support was provided for ORMVAs to strengthen and implement systems for fiduciary management, and social and environmental plan safeguard implementation, monitoring and reporting.

56. Financing mechanism for the on-farm irrigation investments. Access to FDA subsidy was more complicated in implementation than was recognized at Appraisal, and it took several years of learning-by-doing to find simplifications for hurdles encountered. In the first rounds in each ORMVA, unexpected delays were encountered in the various steps: preparation of administrative and technical documents by the WUAs, validation by the ORMVAs then submission to the FDA, with approval at that level allowing transfer of funds to the bank (Credit Agricole) for payment to the irrigation enterprises that were doing the irrigation equipment installation. During implementation, coordination committees streamlined procedures where possible and the procedure was being completed more quickly at the end of the project, but this could have been initiated earlier in the project while the off-field networks were still being completed.

57. The Mid-term review. It occurred in December 2014, proposed a restructuring for which the official request by Government was received in July 2015, and approved in November 2015. While it can be argued that the mid-term review and the restructuring could have happened a few months earlier, it is also true that the restructuring confirmed the original theory of change: no money was wasted due to the timing of the mid-term review, as there was no change in activity nor in scope. It should also be considered that the mid-term review and the following period coincided with the preparation of the second phase of support to the PNEEI by the World Bank, which was initially envisaged as an additional financing and only at a second stage identified as a separate project. Thus, the restructuring took more time than usual to bring to closure as it addressed a broader discussion.

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58. Procurement . Since the procurement delays afflicting Component 1 were so determinant in necessitating the project restructuring and modification of the PDO, these are assessed in more detail here as an implementation issue involving both the implementing entities and the World Bank. The DIAEA set up a management and fiduciary monitoring tool for the project, which allowed for the creation of dashboards that facilitated fiduciary management (commitment, payment and disbursement). This management tool contributed significantly to the project's performance and is identified as a benchmark of good practice across the Morocco portfolio. In terms of performance, at least since March 2017, Procurement ratings were satisfactory. This indicates a certain regularity of performance in the last year of the project.

Implementation of procurement. Procurement was very challenging at the beginning of the project, due to both the lack of knowledge of Bank's procedures by the ORMVAs and the Ministry of Finance that are cause of delays in procurement and even contracts execution (amendments) in several cases. These difficulties, adding to ORMVA's own planning problems, have long hampered the project. However, the DIAEA and the ORMVAs have been able to adapt over time and reinforce their knowledge of World Bank procedures and their implementing capacities. This resulted in substantial improvement in performance, as evidenced by the levels of contracts signed and the disbursement, even though the project has experienced an extension of its closing date.

Procurement planning and implementation of project activities. The various procurement activities often suffered from a lag, either for planning reasons, or for the lengthy procurement processes, because of the administrative delays at the level of the ORMVAs and / or the cumbersome controls. However, these planning problems, slowness and long controls did not arise in the same way in all ORMVAs, being more pronounced in some than in others. But overall, they negatively impacted the execution of the project.

Procurement capacity and training on Bank Procedures. The risk associated with procurement was deemed substantial at the time of the project evaluation. This appreciation was justified by the fact that the majority of staff directly involved in procurement activities was not familiar with Bank procedures and had not yet received training in procurement. The mitigation measures recommended to manage the weaknesses included a tailored training program for the benefit of the ORMVAs. Thus, the start of the project was accompanied by training by the Bank on procurement procedures for ORMVA staff and close support (visits and meetings). These trainings continued throughout the implementation of the project and were extended to representatives of the Ministry of Finance involved in the project. The trainings were really beneficial to all the actors (ORMVA and controllers) and had positive impact on the implementation of procurement and project activities in general.

59. Factors external to the project did not impinge significantly on implementation. The macro-economy was stable and fiscal management predictable without impact on availability of counterpart funding. The socio-political movements sweeping the region beginning in 2011 reinforced the attentiveness of the implementing entities to the concerns of participating farmers, particularly through the WUAs. Prolonged drought in the final two years of the project reduced surface irrigation water available for allocation by the River Basin Authority (ABH) to ORMVAs for distribution to farmers. The ORMVAs managed this constraint by prioritizing allocations to those among their sectors newly converted to more efficient irrigation technologies, and put off introduction of a reworked water contract, on the logic that these farmers needed a cushion during the initial transition to an unfamiliar irrigation technology.

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IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME

A. QUALITY OF MONITORING AND EVALUATION (M&E)

M&E Design

60. M&E design was facilitated by the theory of change being clear and a good basis for driving the choice of indicators. The original PDO was ambitious, however, which resulted in the need for a high-performance and demanding M&E design which required specialist inputs for design and implementation. DIAEA contracted a specialist using project finance who designed the comprehensive M&E system to be implemented by the ORMVAs such that consistent parameter monitoring and reporting could be received and aggregated at the central level.

61. The M&E systems for tracking indicators on progress regards network and on-farm investments were adequately designed at start-up and ORMVAs mobilized the capacity to generate the data needed. ORMVAs are also each following an adequately-sized sample of farmers to track changes in yield, crop choice and cropping intensity. Two design choices continue to be mulled over – implementation of these socio-economic parameters by technical assistance consultants rather than integrating into ORMVA capacity; and lack of monitoring of production input quantities and values so as to get actual costs and how these are changing.

62. The design of groundwater monitoring was kept at an appropriately modest level since ABH formally has the mandate at the basin level. The plan aimed for ORMVAs to build their capacity to track how groundwater use and aquifer level respond to the new irrigation technology and farmers’ conjunctive (surface-ground sources) use choices in the project areas. The monitoring required installation of piezometers, and volumetric meters on a sample of farmers’ pumps. Useful experimentation on measurement of water consumption through remote sensing was also part of the M&E design. This offered the potential of less costly and simpler monitoring approach compared with direct measurement through a sample of farmers’ pumping.

M&E Implementation

63. The monitoring of Component 1 progress was detailed, timely, and fed directly into ORMVA oversight of all procurement and implementation stages. The same was true for Component 2 although the approach was adapted as the process got going through addition of detail, based on experience gained on constraints being encountered with the on-farm investment process, so as to enable informed management interventions to overcome these constraints. The other planned M&E capacity related to Component 2 – socio-economic surveying - began to be rolled out by the technical assistance contractors as the project progressed to the on-farm equipment installation and first 2015-16 crop in the most advanced sectors to be completed.

64. The procurement and installation of the groundwater monitoring equipment experienced some delays due mainly to lack of agreement with farmers of having their groundwater abstraction monitored, but it was finally realized in 2017, with placement of meters with farmers who were both already using more efficient irrigation technologies and willing to have their pumping monitored.

65. The water monitoring on an experimental basis using innovative remote sensing techniques was put in place thanks to the collaboration between the ORMVA Tadla and the CRTS (Annex 7).

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M&E Utilization

66. The information generated by the M&E system was routinely used for decision-making during project management by ORMVAs and DIAEA and also readily available for review and action planning during World Bank missions. The technical assistance implementing the socio-economic surveys had begun producing monitoring reports by the end of the project. The activity on groundwater monitoring and integration into estimates of overall irrigation water consumption only began generating information in the last year of the project, and so it is not yet apparent how ORMVAs will integrate this into their management practices. However, the follow-on World Bank-financed PMGI provides the opportunity to build on these initial steps and determine its development into a robust M&E tool in management for water use efficiency by irrigating farmers. Finally, it is noteworthy that the Government made very good use of the M&E system’s generation of information in its drafting of its own project achievement report in early 2018.

Overall Rating of Quality of M&E

67. The overall quality of M&E is deemed Substantial. Moderate shortcomings in the implementation and utilization that remain consist of: the need to extend the implementation of the socio-economic monitoring to other sectors of the project as their farmers complete installation of equipment and begin using the new irrigation methods; the need to resolve the funding and institutional aspects for assured sustainability of this monitoring; routinizing the groundwater monitoring protocols, analysis and reporting for management use; finalizing the experimental water consumption protocol being tested by CRTS and deciding on its utility for integration into ORMVA and DIAEA M&E systems.

B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE

Environmental compliance

68. The project classified as Category B triggered OP 4.12 and OP 4.01 at Appraisal. OP 4.37 was triggered during the mid-term review, to account for the fact that, while the project did not finance the construction or the rehabilitation of dams, an internal review of the water portfolio in Morocco carried out in 2015 found its success to be contingent on the storage and operation of nine existing dams. The review concluded that the procedures and guidelines set forth to monitor and manage dam safety in Morocco are consistent with international good practices as recommended by the International Commission on Large Dams, and therefore consistent with the requirements set forth by OP 4.37.

69. The environmental assessment as well as the resulting Environmental Management Plan identified the positive and negative impacts of the project as well as the mitigation measures. These were budgeted and implementation of the Environmental Management Plan in the three ORMVAs was satisfactory. Monitoring by the environment focal points was effective, and allowed identifying areas for improvement mainly consisting of: (i) targeted support for medium and small enterprises with low human resources, (ii) continuous awareness of the project management unit, and (iii) need for involvement of the Component 1 technical assistance. The environment focal points also delivered training for all stakeholders (ORMVAs, WUAs and construction companies).

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70. During the construction phase, monitoring was carried out for both the network works and the irrigation equipment works, even if the latter were financed by the FDA and not on the Loan. The monitoring was based on monthly monitoring sheets provided by the companies and verified by the environment focal points who carried out regular visits to the sites to check for discrepancies between the site organization and the information provided in the monitoring sheets. As a general observation, large companies showed more ease in integrating the environmental management system of the building sites, while small companies require more guidance and monitoring. During the operation phase, the environment focal points defined a grid of sample points (about 100 points per ORMVA) for the monitoring of soil and water quality, before and after the drip irrigation system was put into service. In total, six analysis campaigns were conducted by each of ORMVA in accordance with the Environmental Management Plan.

71. On groundwater, only Tadla and Haouz were concerned, since there is no generalized water table in Doukkala. Meters were installed for 20 farmers in Haouz and 8 in Tadla. Currently only data on the initial state are available before the more efficient irrigation technologies are into service because of difficulties in acquiring meters (tenders restarted several times) and their installation (farmers generally reluctant to the installation of meters on their wells or boreholes) as well as internal equipment not yet generalized to all sectors.

Social Safeguards Compliance

72. Land Compensation . The project did not entail any involuntary population displacement, but land acquisition was necessary for collective irrigation infrastructure (decantation basin, filtration stations, pipe network) in Haouz and Tadla which required application of OP 4.12. A Framework Land Acquisition Plan was disclosed in February 2009, a Land Acquisition Plan specific for Haouz in October 2014, and one specific for Tadla in February 2016. In Tadla, land acquired totaled 14 ha owned collectively by 301 households, while in Haouz land acquired totaled 50 ha own privately by 630 owners and 37 ha composed of 137 exploited by 886 people. The lands acquired had no construction or irrigation installations, were of limited agricultural value in Haouz, and arid and unexploited in Tadla. No physical relocation was needed. No squatters or informal users were found in these lands nor in the other lands (public domain) used for civil works. The populations affected by the land acquisition (PAP) were informed, consulted on the project, its potential risks and mitigation measures, as well as on the process of acquisition and compensation, modalities of access to assistance of the ORMVA (e.g. for getting ownership documentation) and channels available for registering and resolving grievances. Regarding compensation for land and standing crops, the values proposed were based on market prices in the year of acquisition, and accepted by the PAP. In Tadla, the collective was compensated before the initiation of works; other mitigation measures (notably for women and the most vulnerable) were implemented such as income-generating activities and improvement of a road that provided access by the local population to social and economic services. In Haouz, careful and hands-on management of the land acquisition and compensation process was assured by the ORMVA. Compensation was made prior to initiation of works for 500 PAP, while escrowed for an additional 105 PAP, many of whom were non-responsive despite numerous contacts by ORMVA and local authorities, or had internal family inheritance disputes. PAPs with an escrowed compensation were informed of the amount and deposit date and procedure for access once such inheritance disputes were resolved. In addition, some land acquisition became necessary as part of the on-farm irrigation equipment (not financed on the loan) with reference to 281 PAPs located in an area of the Oulad Gaid sector which did not undergo land consolidation; works will be launched once compensation will take place, following which on-farm irrigation equipment will be possible.

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73. Grievance Management. Under PROMER, the ORMVAs reinforced their existing procedures for managing farmers grievances in relation to water service. Supported by an expert made available by the World Bank, the ORMVAs undertook participative elaboration of a standardized nomenclature of complaint types and formats for recording complaints received regardless of the source (written, by telephone, oral) as well as a treatment decision tree. Response teams were trained on complaint analysis, reporting and responding, with monitoring of progress being integrated into ORMVA management information systems. Grievance procedure was institutionalized within each ORMVA, and applied beyond the PROMER sectors. The ORMVAs provided the World Bank with monitoring reports twice a year during the last years of project implementation.

Fiduciary Compliance

74. Financial management was Satisfactory with only moderate risks through project implementation. Audits have been timely and raised no reservations. Accounting standards followed by the ORMVAs, internal controls and performance on financial management actions plans have all been adequate. The auditor's latest assessment of internal control in the audit report for 2016 emphasized the need to implement recommendations of previous missions and pool the experiences between the ORMVAs to generalize the best practices.

C. BANK PERFORMANCE

C.1 Quality at Entry

75. Quality at entry is rated Moderately Satisfactory despite many strong components of preparation, because of over-optimism on procurement and implementation calendars for Component 1 implementation and limited examination and coverage in the PAD of the social complexities of land rights which impacted the FDA financing and on-farm equipment installation. These both required more time than anticipated during implementation, which necessitated the restructuring. Better foresight on these two aspects could have resulted in better PDO definition, project duration and project resource mobilization from the outset. Strong preparation on many other aspects was proven during implementation. The Government’s policy and strategy context were well understood and leveraged for excellent project positioning and design as a high-profile testing of approaches that the Government aimed to scale-up to its broader program of collective irrigation conversion to water-efficient technologies. Institutional arrangements were solid and relatively simple with clear accountabilities at the ORMVA level and deft coordination from the central DIAEA. Preparation of environmental, social and fiduciary aspects established clear plans that the implementing entities were able to appropriate and build capacity around. Technical design aspects of the water network investment were adequately prepared.

C.2 Quality of Supervision

76. The quality of supervision was Satisfactory, and strengthened from the mid-term review onward. Missions were regular and expertise mobilized with good timing to address technical issues including environmental and social safeguards implementation as these arose and needed attention. The mid-term review in December 2014 brought a spotlight that was needed to the procurement and implementation delays affecting Component 1, and proposed appropriate changes to the PDO in recognition of the time constraints confronting the realization of the on-farm water efficiency objectives. Its timing in December 2014 was perhaps a half-year late in view of delays already apparent in Component 1 implementation and the consequences sequential on-farm investments supported by Component 2, and implications for the time needed achieve the original PDO outcomes. Moreover, a year transpired between the mid-

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term review conclusions and formalization of the proposed restructuring by Board approval in November 2015. From the mid-term review, the regularity, consistency, and focus of communication were excellent. There was judicious choice of special concentrations of supervisions and aide-memoires over 2015-2017 as the project moved into intensive implementation of on-farm investments and associated aspects of service delivery, water efficiency management, and delivery on the overall theory of change. Supervision tools kept a persistent spotlight on the need for progress on M&E capacity, rollout of an adapted water contract and associated quotas, and installation of capacity for groundwater monitoring, all essential components for improved results on irrigation water efficiency. Over this period the, the task team made good use of ratings – clear messaging of the basis and requisites for upgrading – to incentivize and focus agreed action plans.

77. Once the second phase of World Bank support to the PNEEI, the PMGI, was approved in 2015, combined supervisions for the two projects allowed for both efficient use of World Bank and Government resources, but also contributed to the process of building on lessons learned from PROMER’s testing of new approaches into Government’s broader national program of collective conversion to efficient irrigation technologies.

Overall Rating of Bank Performance

78. The Bank performance is rated Moderately Satisfactory. The design choices were appropriate, the institutional framework kept simple yet adequate, and appropriate restructuring was undertaken. There have been delays – procurement-based, knocking on to the on-field farmer investments and benefits realization, but the theory of change is still in operation, credibly achievable within a year of the closing, and the Bank’s supervision team has been proactive in drawing out lessons learned from the project and already working with government counterparts to build this into subsequent investments that have begun.

D. RISK TO DEVELOPMENT OUTCOME

79. The risk that the development outcomes achieved by closing and likely to be achieved over the current year with the irrigation equipment installation will not be maintained is Modest. Farmers’ demand is strong: farmers not yet using more efficient irrigation technologies have witnessed the increase in value of production induced by drip irrigation, they are increasingly aware of the procedure for collective irrigation equipment, and put pressure on WUAs, irrigation companies and ORMVAs to speed up the works. The WUAs have developed their capacity in managing the process, while irrigation companies are more experienced in the preparation of the technical designs which facilitates (thus shortens) the review by the ORMVAs. The ORMVAs are continuing with an extension of the same approach in additional sectors with the support of World Bank (as well as AfDB and EIB) financing, and are leading the Government’s efforts to build the successes of PROMER into the general approach for the PNEEI nationally. Government commitment to the PNEEI, as well as the PMV, remains high, and financing of the FDA budget remains solid.

80. There are several transitions that ORMVAs and farmers must make in the coming years. First, 2018 is expected to bring the widespread revision of water contracts between the ORMVAs and farmers to account for the improved water service, including the specification of water quotas to avoid overexploitation of water as on-demand access is now available. Good preparation of and communications on the roll-out of these “soft” measures will be important for them to be accepted by farmers with minimal friction. The context is favorable as farmers are used to simpler versions of contracts and quota implementation since forms of these existed in their relationship with the ORMVAs for gravity or sprinkler irrigation water services. Second, for the former gravity sectors, the ORMVAs anticipate

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shutting down the parallel gravity delivery systems once the share of farmed area using the modernized network surpasses a certain threshold, which requires adequate contingency planning for the remaining farmers so as to avoid discontent. ORMVAs are well aware of this challenge and are planning accordingly.

81. Finally, it remains to be demonstrated that farmer satisfaction with the improved service will support acceptance of increased water tariffs, and hence ORMVAs financial foundations for O&M adequate to sustain the systems, which represents a joint priority for the Government and the World Bank. A plan for phasing in water tariff increases was included under the PMV DPL, but it mobilized such vocal farmer opposition that the policy was withdrawn when the wave of political unrest swept North Africa and the Middle East in 2011. Preliminary indications are positive: farmer revenues in the converted areas show substantial increases so ability to pay has improved, and recovery rates in Tadla have improved upon the already solid performance of the pre-conversion system. PROMER has provided the ORMVAs with the means - infrastructure, tools (both hard and soft) and institutional strengthening – sufficient for achieving greater water efficiency (value/m3) and even water savings (improved production value at reduced water consumption). However, these outcomes will be harder to achieve if the incentive of price is kept out of the tool kit. There is an opportunity, with the closure of the current PMV in 2020, to engage a reflection over the next several years on whether, and how, the next phase of the Plan might open space for piloting some use of price tools at the margin. Examples would be: whether to continue the FDA subsidy at 100 percent or lowered; applying a marginal water tariff that is higher during peak demand periods of the day/week, or for upper tranches of (or above) base quota allocations.

V. LESSONS AND RECOMMENDATIONS

82. Several lessons were derived from the project and considered in the design of the second phase of World Bank support to the PNEEI with the PMGI, while also remaining relevant for the irrigation sector in Morocco and beyond.

83. Careful selection of irrigation sectors to modernize. At preparation, selection of irrigation sectors should be done carefully accounting for the land tenure situation. In cases were modernization implies the construction of a new network (from gravity to pressurized), availability of public land is critical to ensure that works could be carried out in a sensible time. While targeting small farmers is essential for poverty reduction and shared prosperity, inclusion of sectors with high number of small farmers that did not undergo prior land consolidation (like Ouled Gaid, Haouz) should be carefully weighted. If included, tackling the land element upstream would be essential.

84. Long duration of works typical of modernization in large scale irrigation calls for long implementation period. Based on a more realistic timeline of works, the PMGI was designed from the beginning as a seven year operation. At the same time, project readiness becomes critical to avoid prolonging these long works even further. Long duration of works and the related risk of delay needs to be accounted for when setting the level of the PDO within the theory of change to avoid setting unrealistic goals at Appraisal.

85. Targeting small farmers calls for tailored procedures. Under the PNEEI, the low financial capacity of small farmers is carefully weighed with up to 100 percent subsidy for drip irrigation, but this alone would not have sufficed. Subsidies were accompanied by a series of administrative actions that removed obstacles for small farmers as they appear. For example, the subsidy was initially designed in the form of reimbursement, but the limited financial availability of farmers brought the Ministry of Agriculture to change procedure and allow the irrigation company to be directly paid by the FDA once the irrigation system in place, so that farmers are no longer required to advance the payment. Dealing with small farmers calls for procedures that can create economies of scale: the collective

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conversion envisaged under the PNEEI allowed for contracting drip irrigation equipment on a consolidated surface, bringing down costs while ensuring oversight on quality of designs and materials.

86. Drip irrigation requires an efficient water service. Drip irrigation scheduling is characterized by small doses of irrigation provided frequently, virtually on a daily basis, contrary to gravity or sprinkler systems which distribute larger doses while spacing irrigation applications. The shift towards drip irrigation requires the operator to develop a new set of skills as there is less room for farmers to “absorb” periods of malfunctioning of the network. Modernization works need to be accompanied by the development of the competencies of the operator in the operation of the new system, an adequate maintenance plan, as well a grievance redress mechanism which enhance responsiveness towards clients’ demands.

87. Design of the network should be done having its operation in mind. Under the PROMER, the ORMVAs developed different designs, i.e. grouping few individual meters in a unique structure, or spreading around the meters in individual structures. The first conception proved to better suit the operation of the system, as the last two years of project implementation demonstrated: grouped meters reduce vandalism and make the adoption of remote control easier and cheaper.

88. Performance-based indicators are key to the management of service delivery improvement. The Ministry of Agriculture and the ORMVAs have internalized this concept, as proved by the fact that a central system of physical performance indicators is under development. The next step would be linking these performance indicators with financial implications. The ORMVA Tadla and the Ministry of Finance are piloting a performance agreement. This initiative will provide important information that will strengthen sustainable, multi-year financial planning and management by ORMVAs as their infrastructure and client base convert to more efficient irrigation technologies.

.ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS

A. RESULTS INDICATORS

A.1 PDO Indicators

Provision of an improved water service meeting the technical requirements of more efficient irrigation technologies

Indicator Name Unit of Measure Baseline Original TargetFormally RevisedTarget

Direct project beneficiaries Number 0.00 6202.00 6211.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Female beneficiaries Percentage 0.00 2.00 2.00

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31-Dec-2009 30-Jun-2016 31-Dec-2017

Comments (achievements against targets): For project's beneficiaries it is intended farmers that can access an improved water service.Target exceeded (110%).For female beneficiaries, target largely exceeded (456%).

Adoption of more efficient irrigation technologies (mainly drip irrigation)


Farmers adopting improved agricultural technology

Number 50.00 3101.00 3100.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Clients who adopted an improved agr. technology promoted by project – female

Number 0.00 60.00 60.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Comments (achievements against targets): For improved agricultural technology it is intended an improved irrigation technology (mainly drip irrigation).Target partially achieved (74%).For female farmers, target largely exceeded (383%).


Project area equipped with improved irrigation technology (mainly drip irrigation)

Percentage 4.00 70.00 70.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Comments (achievements against targets): For improved agricultural technology it is intended an improved irrigation technology (mainly drip irrigation).Target partially achieved (59%).

A.2 Intermediate Results Indicators

Component 1: Improving the irrigation water service


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Progress in the modernization of the irrigation network infrastructure

Percentage 0.00 100.00 100.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

in Tadla Percentage 0.00 100.00 100.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

in Haouz Percentage 0.00 100.00 100.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

in Doukkala Percentage 0.00 100.00 100.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Comments (achievements against targets): Target achieved (100%).

Component 2: Supporting farmers and their partners


Area provided with new/improved irrigation or drainage services

Hectare(Ha) 0.00 21000.00 21167.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Area provided with improved irrigation or drainage services

Hectare(Ha) 0.00 21000.00 21167.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Area provided with new irrigation or drainage services

Hectare(Ha) 0.00 0.00 0.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Comments (achievements against targets): Target exceeded (104%).

Component 3: Assisting implementing agencies in project management and monitoring

Indicator Name Unit of Measure Baseline Original Target Formally Revised

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Target

Water users provided with new/improved irrigation and drainage services (number)

Number 0.00 6202.00 6211.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Water users provided with irrigation and drainage services - female (number)

Number 0.00 125.00 125.00

31-Dec-2009 30-Jun-2016 31-Dec-2017

Comments (achievements against targets): Target exceeded (110%).For female water users, target largely exceeded (498%).

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B. KEY OUTPUTS BY COMPONENT

Objective/Outcome Outcome Target BaselineOutcome

as % of Baseline

Outcome Indicators

Post-Restructuring

Direct project beneficiaries (Number)

6,811 6,211 0 110%

Female beneficiaries (%) 9 2 0 456%

Farmers adopting improved agricultural technology (Number)

2,305 3,100 50 74%

Clients who adopted an improved agricultural technology promoted by project – female (Number)

230 60 0 383%

Project area equipped with improved irrigation technology (mainly drip irrigation) (%)

43 70 4 59%

Pre-Restructuring9

Water productivity per unit of irrigation water delivered (DH/m3) Tadla Doukkala

4.25.3

4.04.5

2.53.5

113%180%

Water productivity per unit of water consumed (DH/m3) (on an experimental basis) - Tadla

68% increase

33% increase 206%


as % of Baseline

Outcome Indicators

Reduction of the volume of groundwater abstracted (%) - Tadla

-43% -20% 4000 m3/ha

215%

Reduction of the volume of -61% -20% 2800 305%

9 Assessment was possible for three out of eight sectors where network infrastructure was completed first (in 2014), and farmers have been using drip irrigation for the 2015-2016 and the 2016-17 cropping seasons: Ittihad and Omrania, Tadla; and Ouest 1, Doukkala. As the PAD presents baselines and targets by ORMVA (cumulated across sectors), comparison between target and outcome for some indicators is done in terms of percentage increase, rather than absolute numbers.

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groundwater consumed (%) (on an experimental basis) – Tadla

m3/ha

Agricultural production increase per farm (%) Tadla

< 5 ha5-10 ha> 10 ha

Doukkala< 5 ha5-10 ha> 10 ha

166%77%

n/a 10

142%67%

312%

+30%+30%+30%

+30%+30%+30%

50,000 DH/ha

150,000 DH/ha

500,000 DH/ha

46,000 DH/ha

168,000 DH/ha

233,000 DH/ha

553%257%n/a

473%223%

1040%

Intermediate Results Indicators

Post-Restructuring

Progress in the modernization of the irrigation network infrastructure (%) Tadla (%) Haouz (%) Doukkala (%)

100%

100%100%100%

100%

100%100%100%

0

000

100%

100%100%100%

Area provided with new/improved irrigation or drainage services (ha)

22,062 21,167 0 104%


as % of Baseline


Area provided with new irrigation or drainage services (ha)

0 0 0 0

Area provided with improved irrigation or drainage services (ha)

22,062 21,167 0 104%

Water users provided with 6,811 6,211 0 110%

10 Data for agricultural production increase in large farms need to be used prudently: as the group has no upper boundary, the average area of the sample used for the baseline and the average area of the sample used at project closing could be substantially different. In addition, only one farm of area above 10 ha was monitored during implementation, thus not a representative sample.

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new/improved irrigation and drainage services (number)

Water users provided with irrigation and drainage services - female (number)

622 125 0 498%

Pre-Restructuring

Participating farmers using drip irrigation (%)

34% 50% 1% 67%

Area equipped with drip irrigation (%)

43% 70% 1% 61%

Area of high value-added crops (ha):11

Tadla Vegetables Fodder corn Tree crops

100% increase788%

increase0%

increase

9% increase510% increase113% increase

1,111%154%0%12


as % of Baseline


Area of high value-added crops (ha):• Doukkala Vegetables Fodder corn

0 to 520 ha

2,566% increase

0 to 100 ha13

300% increase520%855%

Number of Partnership projects with agribusiness

Tadla814

101010

00

80%100%

11 Assessment was possible for three out of eight sectors where network infrastructure was completed first (in 2014), and farmers have been using drip irrigation for the 2015-2016 and the 2016-17 cropping seasons: Ittihad and Omrania, Tadla; and Ouest 1, Doukkala. As the PAD presents baselines and targets by ORMVA (cumulated across sectors), comparison between target and outcome is done in terms of percentage increase, rather than absolute numbers.12 Data related to tree crops need to be used prudently: as olive trees (main tree crop in the area) is planted along the border of the field, rather than in the field, assessment in terms of hectares can bring to errors.13 As baseline is zero, comparison between target and outcome could not be done in this case in terms of percentage increase. The PAD stipulates a target of 300 ha across all sectors in Doukkala; as Ouest 1 represents 33 percent of the target area in Doukkala, target in Ouest 1 is estimated at 100 ha.14 Two additional partnership projects are ongoing for milk and olive oil.

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Doukkala

Number of participating farmers having applied for groundwater abstraction authorization15 - Tadla

n/a due to change in regulation

50% <5% n/a

15 No groundwater in Doukkala.

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ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION

A. TASK TEAM MEMBERS

Name Role

Preparation

Julia Bucknall Co-Task Team Leader

Hassan Lamrani Co-Task Team Leader

Pierre Rondot Agricultural Economist

Nicolas Daurensan Irrigation Specialist

Omar Aloui Agricultural Economist

Saïd Ouattar Agronomist

Wim Bastiaanssen Applied Teledetection for Water Resources Specialist

Supervision/ICRXavier Chauvot de Beauchêne Task Team Leader (until mid-2014)

Gabriella Izzi Task Team Leader (from mid-2014)

Abdoulaye Keita Procurement Specialist

Anas Abou Al Mikias Financial Management Specialist

Laila Moudden Financial Management Specialist

Abdellah El Bita Financial Management Specialist

Herve L. Plusquellec Team Member

Claudine Kader Team Member

Jean-Charles Marie De Daruvar Team Member

Khadija Sebbata Team Member

Hassan Lamrani Team Member

Amal Talbi Team Member

Markus Friedrich Vorpahl Social Safeguards Specialist

Franck Bessette Team Member

Najat Mjid Social Safeguards Specialist

Khalid Anouar Environmental Safeguards Specialist

Achraf Rissafi Team Member

Georges Tony Abou Rjaily Team Member

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Khadija Faridi Team Member

Mohamed Adnene Bezzaouia Environmental Safeguards Specialist

Hassan El Attir Agronomist

Mohamed Medouar Agriculture and Rural Development Specialist

B. STAFF TIME AND COST

Stage of Project CycleStaff Time and Cost

No. of staff weeks US$ (including travel and consultant costs)

PreparationFY06 16.431 58,806.34

FY07 28.409 160,049.31

FY08 22.459 106,124.58

FY09 27.217 241,907.16

FY10 27.284 126,785.36

FY11 0 100,000.00

Total 121.8 793672.75

Supervision/ICR

FY11 30.158 119,522.65

FY12 25.703 121,530.00

FY13 8.556 80,886.43

FY14 16.459 151,467.90

FY15 21.131 229,472.42

FY16 38.814 276,769.43

FY17 19.845 128,383.11

FY18 15.560 138,256.07

Total 176.226 1246288.01 ANNEX 3. PROJECT COST BY COMPONENT

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Components Amount at Approval(US$M)

Actual at Project16 Closing (US$M)

Percentage of Approval (US$M)

Improving the Water Service 90.00 84.52 94%

Supporting farmers 4.45 3.82 86%Supporting Implementing Agencies 5.00 3.39 68%

Physical and Price Contingencies 15.05

Total 114.5 91.73 2.48

16 Cost by component in US$ at closing is calculated from actual cost in DH at closing using exchange rate at closing.

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ANNEX 4. THEORY OF CHANGE

Original PDO: For participating farmers in the Oum Er Rbia basin to increase the productivity and to promote more sustainable use of irrigation water to overcome current and future water deficits.Original PDO indicators: (i) Water productivity per unit of irrigation water delivered (DH/m3) and, on an experimental basis,

water productivity per unit of water consumed(ii) Reduction of volume of groundwater abstracted (m3) and, on an experimental basis, reduction of

volume of groundwater consumed(iii) Agricultural production increase (DH/farm)

Revised PDO: For participating farmers in the Project Area to increase adoption of more efficient irrigation technologies.Revised PDO indicators: (i) Direct project beneficiaries (number), of which Female beneficiaries (%)(ii) Clients who have adopted an improved agricultural technology promoted by the project (number)

of which female (number)(iii) Project area equipped with improved irrigation technologies (%)

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ANNEX 5. PROJECT AREA

89. The project targeted eight irrigation sectors in three ORMVAs (Table A5.1). Completion of network modernization (financed on the Loan) is defined as the beginning of the provision of the improved water service, following which farmers could start converting to more efficient irrigation technologies (mainly drip irrigation) (financed on the FDA). In particular:

In three sectors (Ittihad and Omrania, Tadla; Ouest 1, Doukkala), accounting for 31 percent of the project area, network was completed in 2014, with farmers gradually installing drip irrigation over the last three summer seasons, which explains the achievement of the target as for area equipped with drip irrigation and allowed assessing the impact of the adoption of the improved irrigation technology against original PDO.

In three additional sectors (Annour, Tadla; Nfis and Ouled Gaid, Haouz), accounting for 44 percent of the area, network was completed in 2015 / beginning 2016, with farmers gradually installing drip irrigation over the last two summer seasons, which explains partial achievement of the target as for the area equipped with drip irrigation. The first cropping season under drip irrigation was ongoing at the time of the ICR, with data on impacts against the original PDO to be available following harvest of summer crops (November 2018).

In the last two sectors (S6 and Nord, Doukkala), accounting for 25 percent of the area, network was completed in late 2016, but farmers started installing drip irrigation only during the summer of 2018, which explains the lack of area equipped with drip irrigation at the time of the ICR. The first cropping season under drip irrigation is expected in the winter of 2018-2019, with data on impacts against the original PDO available following harvested of winter crops (June 2019).

Table A5.1: Project area, by irrigation sectorORMVA Sector Area

(ha)17No.

Farmers18

Original network (pre-project)

Network modernization

area w/ drip irrig. (% target)At ICR Dec 2018

Tadla Ittihad 1,984 560 Canals / Gravity irr Aug. 2014 123% 132%Omrania 2,061 538 Canals / Gravity irr Aug. 2014 103% 134%Annour 3,331 802 Canals / Gravity irr Apr. 2016 71% 85%

Total 7,376 1,900 93% 102%Haouz Nfis 4,210 1,811 Pipes / Gravity irr Dec. 201519 37% 79%

Ouled Gaïd 2,20020 871 Canals / Gravity irr Mar. 201621 70% 75%Total 6,410 2,682 48% 78%

Doukk Ouest1 2,724 520 Pipes / Sprinklers Jul. 2014 137% 137%S6 1,281 286 Canals / Gravity irr Dec. 2016 0% 72%Nord 4,271 1,423 Pipes / Sprinklers Dec.2016 0% 103%

Total 8,276 2,229 46% 109%TOTAL 22,062 6,811 61% 98%

90. At the time of the ICR, area equipped with drip irrigation totaled 43 percent of the project area out of a goal of 70 percent (61 percent of target), with higher percentage in Tadla (93 percent of target) and lower in Haouz (48

17 Area and farmers by sector may differ from the PAD as numbers were updated based on the detailed topography carried out during project implementation.18 The farmer is defined by the client code for the provision of the water service. Co-ownership (informal division of the farm among family members) is thus not captured by the number of farmers. Actual number of beneficiaries is thus higher than the number of farmers, but the informality of the phenomenon does not allow for a quantification.19 The last 300 ha were completed in June 2017.20 Of which 800 ha did not historically undergo land consolidation.21 The last 800 ha were completed in December 2017.

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percent) and Doukkala (46 percent). For the remaining area, the installation of irrigation equipment is solidly ongoing: contracts have been signed on 96 percent of the project area, thus well above the 70 percent goal (137 percent of target), and detailed designs are approved or in the process of being approved, for works to start as harvest takes place (June-July 2018). By December 2018, adoption of more efficient irrigation technologies is expected to be in place over 69 percent of the project area (98 percent of target), with target exceeded in Doukkala (109 percent of target) and Tadla (102 percent), and partially achieved in Haouz (78 percent). Graphs A5.1 and A5.2 present the breakdown by ORMVAs and by irrigation sector at the time of the ICR.

Tadla

Haouz

Doukkala

0% 20% 40% 60% 80% 100% 120% 140%

Graph A5.1: Area equipped with improved irrigation technologies (% of target)

Equipped Works Studies

Ittihad

Omrania

Annour

Nfis

Ouled Gaïd

Ouest1

S6

Nord

Tadl

aHa

ouz

Douk

kala

0% 20% 40% 60% 80% 100% 120% 140%

Graph A5.2: Area equipped with improved irrigation technology (% of target)

Equipped Works Studies

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ANNEX 6. EFFICIENCY ANALYSIS

91. At Appraisal, feasibility studies were available for five of the eight irrigation sectors: Ittihad and Omrania, Tadla; Ouest 1 and S6, Doukkala; and N’fis, Haouz. For the ICR, the economic and financial analysis of these sectors was redone on the basis of available updated information. Updated information varied by scheme based on the state of the adoption of more efficient irrigation technologies: while in the three first sectors drip irrigation has been in use for two cropping seasons, in the two latter schemes farmers are only at the time of ICR starting to use more efficient irrigation technologies (Annex 5).

92. Methodology. The anticipated economic and financial benefits were principally an increase in the value added of production in the project areas. The value added increase resulted from yield improvements, increase in cropping intensity, and shifts to higher valued crops. At closing, the updating of the analysis was done on the following basis. Costs comprised investment costs of the water networks and of the on-farm irrigation equipment. Prices are based on those observed during the last three agricultural years – 2015/16, 2016/17 and 2017/18 – using retail market prices for cereals and pulses and wholesale markets for fruits and vegetables, adjusted for transport cost differentials between farm and markets. Conversion coefficients were applied to translate financial into economic prices, so as to correct for distortions due to government policies (e.g. taxes and subsidies) and market imperfections for services, labor and capital. Monitoring surveys were conducted by ORMVAs for samples of about 40 farm exploitations in Ittahad and Omrania, Tadla; and Ouest 1 and S6, Doukkala and information drawn from these for farmers adjustments of their crop choices and rotations, and yields, following the irrigation technology conversion. While these surveys provide information on farmers’ actual adjustments, the limited number of seasons that farmers have had to become familiar with the new infrastructure and cropping opportunities means that outcomes have not yet stabilized. The present updating analysis assumes that yields will stabilized after three full crop years after installation of on-farm irrigation equipment, while the future crop choices are a modification of the initial feasibility study, based on the initial crop adjustments made by farmers as revealed by the ORMVA monitoring survey.

93. The application of this approach has had to proceed with prudence Ouest 1, since the initial farmer experiences post-conversion have been atypical in some regards. Farmers benefited from unusually favorable access to surface irrigation water for the summer crop, with the ORMVA providing the best incentives possible to encourage adaption by farmers to the new irrigation infrastructure. This enabled a level of high-value crop production and favorable prices for the first post-conversion crop year that are not expected to carry forward to subsequent crop years. As a result, the analysis here anticipates the ORMVAs proceed, as they have expressed the intention to do in 2018, with application of irrigation volume quotas at the farmer level, which should permit an increase in intensification and shift to higher value crops, but more in line with the initial feasibility studies anticipation and less favorable than the actual, initial, post-conversion outcome.

94. Improvement in livestock production post-conversion is also included in the revenue improvement. The basis for this varies some across the sectors, and is a mixture of a gradual herd composition shift from local to improved races, enabled by improved availability of feed as crop patterns shift to include more irrigated fodder crops (Ouest 1, Doukkala), and an increase in the overall herd size enabled by increased fodder production (Ittahad and Omrania, Tadla).

95. Benefits . The results show that the project outcome of the conversion to more efficient irrigation technologies is profitable with an IRR that varies from 16.5 to 25.5 percent depending on the sector (Table A6.1). Weighted by area, this range of realized outcomes is greater than anticipated at Appraisal by about 12 percent.

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Table A6.1: Economic Results: Internal Rate of Return (IRR) and Net Value Added, % and MDHIttihad/ Omrania(Tadla)

Ouest 1(Doukkala)

S6(Doukkala)

N’fis(Haouz)

IRR at Appraisal 21.7 19.6 15.0 15.6IRR at Closing 22.4 25.5 20.2 16.5Net Value Added at Appraisal 328.1 78.0 43.1 63.7Net Value Added at Closing 352.4 176.2 97.4 107.4

Sensitivity Tests on IRR10% shortfall in production 18.6 20.6 17.7 12.420% shortfall in production 14.7 16.0 15.0 8.510% increase in investment costs 20.7 23.6 18.7 15.120% increase in investment costs 19.2 22.0 17.4 13.9

96. The gross margin increase can be decomposed into three elements: cropping intensification; yield increase, and crop diversification towards higher valued crops. For Ittihad and Omrania, Ouest 1, S6, and N’fis, the decomposition of sources of additional gross revenues due to the project is presented in Table A6.2.

Table A6.2: Decomposition of Gross Revenue GrowthSource of increase in gross

farm revenues, %Ittihad/ Omrania

Ouest 1 S6 N’fis

Cropping intensity Increase 9 22 19 16Yield increase 48 26 55 74Crop diversification 43 52 26 11

97. Financial Results. Tables A6.3 to A6.5 show the evolution of financial results and the gain in percentage terms of the most recent year to the base year, by farm size classes. The results derive from the socio-economic surveys of samples of farmers conducted in each of these sectors.

Table A6.3: Evolution of Gross Revenues (DH/farm) – Ittihad/Omrania, TadlaClass 2012-13 2015-16 2016-17 2016/17 /

2015-162016-17 / 2012-13

0-5 ha 101,647 133,397 1.310-2 ha 51,104 55,829 1.092-5 ha 125,234 169,595 1.35

5-10 ha 221,453 266,208 1.2010 ha + 358,047 452,220 1.26Total 89,641 207,113 1.25 2.31

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Table A6.4: Evolution of Gross Revenues (DH/farm) – Ouest 1, DoukkalaClass 2014-15 2015-16 2016-17 2016-17 /

2014-150-5 ha 113,688 293,931 308,093 1.71

0-2 ha 23,640 98,743 56,052 1.372-5 ha 163,714 402,369 448,116 1.74

5-10 ha 179,801 415,332 507,511 1.8210 ha + 478,478 1,685,007 2,366,163 3.95Total 259,235 834,613 1,127,943 3.35

Table A6.5: Evolution of Gross Revenues (DH/farm) – N’fis, HaouzClass 2015-16 2016-17 2016/17 /

2015-160-5 ha 38,625 35,719 0.925-10 ha 225,875 736,500 3.2610 ha + 451,500 355,500 0.79Total 132,646 205,813 1.48

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ANNEX 7. USE OF REMOTE SENSING FOR ASSESSING PROJECT’S IMPACTS

98. The original Results Framework included the measurement of two PDO level indicators (Water productivity per unit of irrigation water consumed and Reduction of volume of groundwater consumed) on an experimental basis using innovative remote sensing techniques. This was done for the Ittihad sector as a collaboration between the CRTS and the ORMVA Tadla. The analysis included first a mapping of the farms of the sector (Figure A7.1), followed by a water balance at a farm level for a sample of 30 farms, of which 12 with well. Overall, results are in line with the project’s theory of change. There was an increase in value of agricultural production of 17 percent, a decrease in water consumed by 31 percent, and an overall increase of Water productivity per unit of water consumed by 68 percent (PDO indicator, 206 percent of target). Volume of groundwater consumed reduced by 61 percent (PDO indicator, 305 percent of target). Results are presented in Graphs A7.1 and A7.2 for a sample of farms which converted from gravity to drip irrigation in the first semester of 2015. Data show a consistent reduction in overall water consumed and in groundwater consumed when switching from gravity irrigation (2013-2014 baseline cropping season) to drip irrigation (2015-2016 and 2016-2017 cropping seasons), and this notwithstanding the increase in yield and cropping intensity recorded across the sector, demonstration of a more efficient use per unit of water.

Figure A7.1: Mapping of the Ittihad sector, Tadla with sampled farms highlighted

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0

500

1000

1500

2000

2500

Graph A7.1: Evolution of water consumed at farm level, for a sample of farms in Ittihad, Tadla over three cropping seasons

cons1314cons1516cons1617

Farms

Wat

er co

nsum

ed [m

m]

0

5000

10000

15000

20000

Graph A7.2: Evolution of groundwater use at farm level, for a sample of farms in Ittihad, Tadla over three cropping seasons

NGU1314NGU1516NGU1617

Farms

Grou

ndw

ater

cons

umed

(m3)

ANNEX 8. SUMMARY OF BORROWER COMPLETION REPORT

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99. A good quality and extensive (184 pages) completion report was produced by the Ministry of Agriculture in collaboration with the three ORMVAs and shared with the World Bank in February 2018, prior to the ICR mission. The report is available as part of the supporting documents of this ICR, and herein summarized. It included a presentation on the financial and physical performances of the project, of the status of the adoption of more efficient irrigation technologies (mainly drip irrigation) on FDA funds, an analysis of project’s impacts, as well as a detailed presentation of the environmental and social elements relevant to the project.

100. Financial progress . The report presents in a comprehensive way the evolution of commitments, payment and disbursements compared to forecast. While commitments were delayed compared to expectations over the first two years of the project (consequence of an overoptimistic planning at Appraisal), it also presents regular and solid evolution of commitments and payments from 2012 onwards; disbursement followed payments regularly, with 1 M USD disbursed on average every month. Audit reports were consistently found satisfactory.

Source: Borrower completion report, page 13

101. Physical progress . The report presents the evolution of works on the water network over the project lifetime, including with reference to key milestones (mid-term review, restructuring, original and revised closing dates), highlighting the delay of 8 to 16 months, depending on the sector. Works started relatively on time in the ORMVA Tadla, while suffered important start up delays in Doukkala and Haouz. The report details these delays by ORMVA and by sector: for example, in Doukkala, works in Ouest 1 and Nord were completed with 3 years delay, and in S6 with four years delay, due to a combination of procurement delays (initial limited knowledge of World Bank procedures) and implementation delays once the contracts signed (underestimation of the impact of rainy period and presence of crops in the field on the works). The report includes also chronograms by ORMVA and by project component, produced through the M&E system centralized at the level of the DIAEA, and extensively used during implementation to assess progress against forecast.

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Source: Borrower completion report, pages 17 and 34

Source: Borrower completion report, page 81

102. Adoption of more efficient irrigation technologies . The report presents the status of adoption of drip irrigation by ORMVA and by sector. Figures are found to be fully in line with those included in this ICR, even if sometimes presented in a different way (for example, in gross or net surface).

103. Impacts . The report dedicates an extensive number of pages to the presentation and discussion of the impacts of the improved water service following the modernization of the network, and the consequent adoption of more efficient irrigation technologies, in terms of increase in intensification, increase in yields, diversification towards higher value crops. In the same way, the report discusses the change in use of surface water and groundwater, and bring the attention on the need to institutionalize the use of water restriction concepts (quota) to avoid over exploitation of water considering the on-demand access post modernization. Below, details on the impacts in Tadla and Doukkala.

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104. Impacts / Tadla . With reference to the Ittihad and Omrania sectors, the report highlights the good progress in terms of crop intensification (98 percent pre-modernization, to 113 percent on the first year post-modernization, to 120 percent on the second year), demonstrating the learning process of the farmers from one cropping season to another on taking advantage of the new technology. The report mentions the impressive evolution of the cropping pattern towards higher value crops from the first year post-modernization, but also highlights how farmers changed their strategy following the first year’ experience in relation to commercialization challenges, focusing the second year mostly on carrot and onion. The report elaborates on the bottlenecks faced by the farmers, mainly being access to extension service and access to market. The report details the aggregation and partnerships agreements established / strengthened following modernization, of which eight successfully concluded for the value chains of olive oil, milk, citrus, red meat and sugarbeet, and two ongoing for milk and olive oil.


105. The report mentions the reduction in surface water used following the switch from gravity to drip irrigation, reduction which is particularly concentrated at the level of the small farms (less than 2 ha) which were much less efficient than bigger ones under gravity irrigation.


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106. Impacts / Doukkala . With reference to the Ouest 1 sector, the report presents relevant graphs for the increase in cropping intensity, the switch to higher value crops (“the cropping pattern went through a metamorphosis following the introduction of drip irrigation, in particular with the introduction of higher value crops”, “partially replacing cereal crops and forage crops in winter. Soybean and sunflower have been introduced during the summer”), and increase in production (for example, sugarbeet by 30 percent and forage maize by 35 percent). The report details the aggregation and partnerships agreements established / strengthened following modernization, which represent an opportunity for farmers to diversify their production. Four aggregations have been established for milk (two), sugarbeet, and wheat, while another is in the process of being finalized on meat, and three others which were attempted but finally not profitable for pop corn, sunflower and potato. In other cases, partnership agreements have been established as a first step for colza and soybean, and are in the process of being established for tomato, maize, potato and soybean.


107. The report presents clearly the aspects linked to water consumption, highlighting the fact that – while water allocation for Doukkala perimeter has been decreasing - the allocation to Ouest 1 has been increasing, indication of the decision of the ORMVA to incentivize Ouest 1 farmers and create a positive effect on the other sectors in the process of being modernized. The focus given to this element in the Borrower ICR is the proof of the attention given to a more rational use of limited resources. At the same time, the report highlights how the additional water consumed has been used for high value production, as demonstrated by the increase in water productivity (in monetary terms).

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ANNEX 9. BORROWER COMMENTS

111. The main conclusions of the ICR have been discussed with the DIAEA, the ORMVAs and the other stakeholders during the ICR mission in February 2018. In addition, the PMGI implementation support mission in May 2018 discussed with the DIAEA and the ORMVAs the lessons learned of the PROMER, in order to ensure to build upon these lessons during the second phase of World Bank support to the PNEEI.

112. The draft ICR was shared with the DIAEA, in charge of the coordination of the project. The DIAEA praised the high-level quality of the analysis, and the ICR did not raise any major comment. At the same time, it was suggested to integrate the two following points in section E.2 on Institutional strengthening: Remind that, in order to speed up adoption of more efficient irrigation technologies, the DIAEA and the

ORMVA put in place several measures, including : the adaptation of the provisions of the ministerial instruction for the preparation of the documents for on-farm irrigation equipment in the project area, the implementation of a new system of qualifying companies eligible to apply to irrigation projects subsidized by the FDA, the development of a toolbox allowing the ORMVAs to control the on-farm irrigation equipment operation in the best conditions, the elaboration of a procedure for collective projects for on-farm irrigation equipment, the internal reorganization of the ORMVA teams in order to speed up the approval of the detailed studies, the revitalization or creation of the AUEA, and the organization of the awareness days with the irrigation companies. (para. 42)

Highlight that a framework agreement between the ONCA and the DIAEA is in the process of being finalized in order to ensure the support to farmers in the modernized sectors. (para. 44)

ANNEX 10. PICTURES

Figure A10.1: Basin (Haouz) Figure A10.2: Pumping station (Doukkala)

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Figure A10.3: Filter ahead of the pumping station (Doukkala)

Figure A10.4: Filtering station (Doukkala)

Figures A10.5 and A10.6: Structure with several individual meters (Tadla)

Figure A10.7: Remote control center (Tadla) Figure A10.8: Complex land tenure (Haouz)

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Figure A10.9: Filter and fertigation at farm level (Haouz)

Figure A10.10: Consultations (Doukkala)

Figure A10.11 and A10.12: Farmers beneficiaries (Tadla)

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ANNEX 11. SUPPORTING DOCUMENTS

Borrower Completion report, DIAEA (February 2018)

Report on the Economic and Financial analysis at project completion, World Bank (April 2018)

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Documents

Morocco - MA-Modernization of Irrigated Agriculture in the ... · Web viewFor the World Bank, water was central in the 2010-13 Country Partnership Strategy (CPS, Report No. 50316-MA,