Agriculture Project, World Bank: It May Be Restructured or Have Funds Cancelled — Only 9% Disbursed

The World Bank project to boost the competitiveness and climate resilience of agriculture is facing significant delays, while the institution warns that some activities may be restructured, scaled back or even cancelled if implementation is not accelerated.

In its latest implementation report, dated September 12, the World Bank assesses that “the project has experienced significant delays,” particularly in investments linked to small food hubs, border inspection points and the irrigation scheme in Divjaka. According to the report, these investments continue to be “significantly behind schedule.”

The Bank warns that the delayed activities pose the greatest risk to the project’s implementation. “If procurement processes are not accelerated and contract implementation does not proceed without further delays, some activities may require restructuring, rationalization of scope, reallocation of funds and/or partial cancellation,” the report states.

The project continues to be rated by the World Bank as “moderately unsatisfactory,” both for progress toward development objectives and for overall implementation progress. The rating has not changed from the previous report.

The delays are also reflected in the low level of disbursement. Of the revised financing of $74.88 million, $6.73 million has been disbursed so far, or 8.99% of the total. About $68.15 million remains undisbursed. The loan became effective in February 2024 and the project’s closing date is September 30, 2028.

Key result indicators also remain at minimal levels. By August 2026, sales of agricultural products by farmers through small food hubs were zero, against a target of 6,000 tons by the project’s end. The Bank explains that “small food hubs have not yet been established and no sales have been generated so far.”

In irrigation, the share of farmers connected to pressurized, on-demand public service also remains zero, while the target is 80%. According to the report, “works for the rehabilitation and modernization of irrigation schemes have not yet started.”

The project also aims to provide new or improved irrigation and drainage services on 12,300 hectares, but by August 2026 the area covered was zero hectares. The Bank says the works supported by the project have not yet started and progress depends on the timely completion of design, procurement and the launch of works.

There are also delays in the food safety component. Of the six border inspection points to be built or modernized according to international standards, none has been completed so far. “Works for the rehabilitation and improvement of border inspection points have not yet started,” the report states.

The number of new analyses performed in the regional laboratories supported by the project is also zero, against a target of 1,000 analyses, while none of the 75 laboratory staff planned for training has yet been trained.

The Bank reports that the business intelligence platform, which is to be linked to the Ministry of Agriculture’s existing data systems, has not yet been established. Progress, according to the report, depends on the timely completion of the system’s design, procurement and its commissioning.

In its risk assessment, the World Bank classifies as “high” the risk related to institutional capacity for implementation and sustainability of the project, from a “low” level at the time of its approval in 2023.