1

Mapping of Bank’s projects by agro-eco-system: a way to mainstream adaptation? FAO/WB Expert Meeting Bangkok, 15 May 2012

Portfolio composition

• Bank lending program: a complex mechanism, involving several processes and considerations: o Country Strategic Partnership (and country dialogue),

with 3-year lending program/pipeline

o Areas of engagement per sector and country

o Overall corporate strategy

o Global sector strategies (ARD Action Plan 13-15)

• Around 40-50 “active” projects in ARD in EAP

• Pipeline: + 6-8 per year, $800 million

Type of interventions and trends in lending

• Depends on “entry point” i.e. nature of problem to be addressed: rural development, poverty reduction, ag technology, competitiveness, coastal zone management, rural finance, etc..

• Sector/sub-sector based (or not) • Geographically/eco-system based (or not) • Dedicated intervention (or not)

o CC DPL in Vietnam o IMAD in China o WISIMP in Indonesia o Mekong Delta Irrigation Management project

ARD strategy: Implementing the WDR 2008

WDR2008 provides the strategic framework

Implemented through the Action Plan: FY10-12 With proposed continuity in

the Action Plan: FY13-15 to address MDGs

Five Focal Areas

Reduce risk and vulnerability

Raise agricultural productivity

Link farmers to market &

strengthen value chains

Facilitate agricultural entry, exit &

rural non-farm income

Enhance environmental

services and sustainability

5

FOCUS ON FIVE AREAS

• Food (Agricultural) Prices Remain High & Uncertain

−Emphasis on risk management (incl. to reduce social instability)

• World Economic Growth has Slowed (Euro-crisis)

−Emphasis on inter-developing country trade & private sector

• New Opportunities to Respond to Climate Change

−Emphasis on climate smart agriculture

• Development Partner Commitment Has Increased

−Emphasis on aid effectiveness

• Private Sector Investor Interest has Increased

−Emphasis on smallholder inclusion

With adaptation to respond to the evolving context

Level of spending on agriculture has increased: $6.2 billion projection met

Building on our re-engagement & scale-up in FY10-12

1.2

2.6

1.8

3.5

1.2

0.7

0

1

2

3

4

5

6

7

8

2006-08 2010-12 Actual

US

$ b

illio

ns

Annual average

IFC Agriculture production and markets Other agriculture related investments

4.2

6.8

Across Five Thematic Areas Still Relevant Today

1. Raise agricultural productivity

2. Link farmers to markets and strengthen value chains

3. Reduce risk and vulnerability

4. Promote rural non-farm income

5. Enhance environmental services and sustainability

Giving more emphasis across thematic areas to:

– Managing risks

– Climate smart agriculture

– Private sector response

– Nutrition

– Partnerships

From FY02-11, ARD made up about 12% of total no. of projects Bankwide and 8% in terms of commitment amount. The share of ARD in the no. of projects has ranged from a low of 9% in FY08 to a high of 15 % in 2006. ARD’s share of Bankwide lending volume has steadily declined from 12% in FY07 to 7% in FY11.

EAP averaged 10 ARD projects per FY with an average commitment amount of $48.8M; of these, about 7 were IBRD/IDA projects (the others were GE, SF, RE)

From FY02-11, EAP had the third largest ARD lending portfolio in terms of volume overall with about 19% (SAR, 32% and AFR, 22%).

Main Clients: China (41%); Vietnam (32%); Indonesia (12%) and Philippines (8%) made up 93% of lending volume.

FY02-11 Lending

-

200

400

600

800

1,000

0

5

10

15

20

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Co

mm

itm

ent

Am

t, U

S$m

No

. of

Pro

ject

s

EAP FY02-11 Lending Program under ARD Sector Board (No. of Projects and Commitment Amt, US$m)

0

200

400

600

800

1000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

EAP FY02-11 Lending Program under ARD Sector Board by Country

(Commitment Amt, US$m) VN

TP

TH

SB

PH

PG

MN

LA

KI KH

ID

CN

4E

From FY12 and 13, the share of ARD in Bankwide lending is projected to increase slightly to 13% (no. of projects) and 11% (volume)

From FY12-13, EAP ARD is expected to deliver 9 projects/year with an average commitment of about $600M/year.

AFR and SAR remain as the regions with the largest lending portfolio in the sector

LCR’s share of ARD will surpass that of EAP in terms of volume (20% vs 11%) and no. of projects (21% vs 15%)

China (61%), Vietnam (15%) and Indonesia (7%) make up 82% of the lending volume in the sector. Philippines (5%) has dropped to 5th with only one additional financing project.

Pipeline Lending (FY12-13)

4M 6%

CN 61%

ID 7%

KH 1%

LA 2%

MN 2%

PH 5%

VN 15%

WS 1%

FY12-13 EAP Lending under ARD Sector Board by Country

(Commitment Amt, US$m)

AFR 22%

EAP 11%

ECA 5%

LCR 20% MNA

5%

OTH 0%

SAR 37%

FY12-13 Bankwide Lending under ARD Sector Board by Region

(% of Commitment Amt, US$m)

0

2

4

6

8

10

12

14

16

AGB ART CRM DRM LAND NRM RFIN RPV WRM

EAP FY02, 07 and 12 ARD Supervision Portfolio by Thematic Cluster (No. of Projects)

FY02

FY07

FY12

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

AGB ART CRM DRM LAND NRM RFIN RPV WRM

EAP FY02,07 and 12 ARD Supervision Portfolio by Thematic Cluster (Commitment Amt, US$m)

FY02

FY07

FY12

AGB 5%

ART 18%

CRM 5%

DRM 2% LAND

8%

NRM 11%

RFIN 5%

RPV 23%

WRM 23%

EAP FY02 ARD SPN Portfolio by Thematic Cluster (No. of Proj)

AGB 3%

ART 12%

CRM 16%

DRM 2%

LAND 5%

NRM 16%

RFIN 7%

RPV 16%

WRM 23%

EAP FY12 ARD SPN Portfolio by Thematic Cluster (No. of Proj)

AGB 11%

ART 11%

CRM 2%

DRM 1%

LAND 4%

NRM 6%

RFIN 8% RPV

16%

WRM 41%

EAP FY02 ARD SPN Portfolio by Thematic Cluster (Commit Amt)

AGB 2%

ART 9%

CRM 11%

DRM 5%

LAND 3%

NRM 16%

RFIN 7%

RPV 12%

WRM 35%

EAP FY12 ARD SPN Portfolio by Thematic Cluster (Commit Amt)

Trends in ARD Portfolio in EAP

0

2

4

6

8

10

12

14

16

Mountain and Forest Areas

River Basin/ Flood Plains/

Delta

Grassland and Agropastoral

Lands

Multiple Ecosystems

Other

Regional

Papua New Guinea

Mongolia

Laos

Cambodia

Vietnam

Philippines

China

EAP FY12 Active portfolio (in number of projects) by country and ecosystem

$0

$200

$400

$600

$800

$1,000

$1,200

Mountain and Forest

Areas

River Basin/ Flood Plains/

Delta

Grassland and

Agropastoral Lands

Multiple Ecosystems

Other

Regional

Papua New Guinea

Mongolia

Laos

Cambodia

Vietnam

Philippines

China

EAP FY12 Active portfolio (in million USD) by country and ecosystem

$0

$100

$200

$300

$400

$500

$600

$700

Mountain and Forest Areas

River Basin/ Flood Plains/

Delta

Grassland and Agropastoral

Lands

Multiple Ecosystems

Other

Regional

Timor Leste

Samoa

Indonesia

Mongolia

Laos

Cambodia

Vietnam

Philippines

China

EAP FY12-14 Lending program (in million USD) by country and ecosystem