The World Bank Implementation Status & Results Report OECS MSME Guarantee Facility Project (P157715) OECS MSME Guarantee Facility Project (P157715) LATIN AMERICA AND CARIBBEAN | OECS Countries | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 8 | ARCHIVED on 27-Jun-2022 | ISR51271 | Implementing Agencies: Eastern Caribbean Partial Credit Guarantee Corporation, Government of Antigua and Barbuda, Government of Grenada, Government of Saint Lucia, Government of Saint Vincent and the Grenadines, Government of St Kitts and Nevis, Government of the Commonwealth of Dominica Key Dates Key Project Dates Bank Approval Date: 05-Jul-2018 Effectiveness Date: 12-Jul-2019 Planned Mid Term Review Date: 21-Jun-2022 Actual Mid-Term Review Date: 21-Jun-2022 Original Closing Date: 30-Jun-2023 Revised Closing Date: 30-Jun-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective is to facilitate additional financial intermediation for MSMEs by supporting the establishment of a regional partial guarantee corporation. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Capitalize the Partial Credit Guarantee Fund:(Cost $8.10 M) Project Management, Operating Costs and Lender Training:(Cost $1.90 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The ECPCGC began guaranteeing loans in February 2021 to help promote MSME lending, with the number of guarantees picking up in 2022. While COVID-19 has posed challenges for lending to MSMEs in the region, the ECPCGC is beginning to play a key role in supporting lending through guaranteeing a portion of the risk of lending. To help increase the number of guarantees, among others, the EPCGC has decreased the guarantee fee, increased advertisements, and engaged stakeholders across all islands to promote sensitization on its partial credit guarantee scheme. 6/27/2022 Page 1 of 5 The World Bank Implementation Status & Results Report OECS MSME Guarantee Facility Project (P157715) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic High High High Sector Strategies and Policies Moderate Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Moderate Moderate Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Substantial Substantial Moderate Stakeholders Low Low Low Other Low Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Establishment of a regional partial guarantee corporation IN01136533 ►Number of Guaranteed Loans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 29.00 400.00 Date 03-Jul-2018 14-Dec-2021 07-Jun-2022 03-Jul-2023 IN01136534 ►Total amount of outstanding guaranteed loans through Project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 382,962.96 883,315.00 12,000,000.00 Date 03-Jul-2018 14-Dec-2021 07-Jun-2022 03-Jul-2023 IN01136535 ►Number of loan officers trained in MSME credit assessment (Number, Custom) 6/27/2022 Page 2 of 5 The World Bank Implementation Status & Results Report OECS MSME Guarantee Facility Project (P157715) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 143.00 171.00 45.00 Date 03-Jul-2018 08-Dec-2021 26-Apr-2022 03-Jul-2023 Overall Comments PDO Progress on the number of loan officers trained in MSME credit far exceeds the PDO and relfects the efforts by the ECPCGC to stimulate lending in the region, yet the low number of guarantees (20( and their value (USD 883,315) reflect persistent challenges to bolstering MSME lending in the region. Intermediate Results Indicators by Components Capitalize the Partial Credit Guarantee Fund IN01136541 ►Number of MSMEs receiving guaranteed loans through Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 28.00 400.00 Date 03-Jul-2018 14-Dec-2021 07-Jun-2022 03-Jul-2023 IN01136542 ►Share of guarantees issued to women owned or managed MSMEs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 53.85 44.80 30.00 Date 03-Jul-2018 14-Dec-2021 07-Jun-2022 03-Jul-2023 This indicator captures the share of MSMEs receiving a guarantee with at least one female owner, as a Comments: number of the guarantees thus far include co-ownership by both men and women. IN01136543 ►Percentage of funding through guaranteed loans with maturity more than one year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 77.40 70.00 Date 03-Jul-2018 09-Dec-2021 07-Jun-2022 03-Jul-2023 IN01136544 ►The ratio of equity to outstanding guarantees (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.57 0.64 1.00 6/27/2022 Page 3 of 5 The World Bank Implementation Status & Results Report OECS MSME Guarantee Facility Project (P157715) Date 03-Jul-2018 09-Dec-2021 07-Jun-2022 03-Jul-2023 IN01136545 ►Number of guarantees paid-out (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 24.00 Date 18-Jul-2018 08-Dec-2021 07-Jun-2022 23-Jul-2023 IN01136546 ►Percentage of beneficiaries that feel project activities reflected their needs (Citizen Engagement Indicator) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 82.10 75.00 Date 03-Jul-2018 08-Dec-2021 15-Mar-2022 03-Jul-2023 Percentage of beneficiaries (MSMEs and Participating Financial Institutions) that feel project activities reflected their needs is defined by those who are either extremely satisfied and those who are satisfied. A combined 23 of 28 of MSMEs and Participating Financial Institutions indicated they were either extremely Comments: satisfied or satisfied. 3 respondents noted they were dissatisfied and 2 noted they were extremely dissatisfied. Overall Comments IR Progress towards the intermediate indicators remains on target, with all indicators exceeding their end of project goals. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P157715 IBRD-88830 Effective USD 2.00 2.00 0.00 1.83 0.17 92% P157715 IDA-62640 Effective USD 2.00 2.00 0.00 1.83 0.17 91% P157715 IDA-62650 Effective USD 2.00 2.00 0.00 1.83 0.17 91% P157715 IDA-62660 Effective USD 2.00 2.00 0.00 1.83 0.17 91% P157715 IDA-62670 Effective USD 2.00 2.00 0.00 1.80 0.16 92% Key Dates (by loan) 6/27/2022 Page 4 of 5 The World Bank Implementation Status & Results Report OECS MSME Guarantee Facility Project (P157715) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P157715 IBRD-88830 Effective 05-Jul-2018 28-Sep-2018 12-Jul-2019 30-Jun-2023 30-Jun-2023 P157715 IDA-62640 Effective 05-Jul-2018 28-Sep-2018 12-Jul-2019 30-Jun-2023 30-Jun-2023 P157715 IDA-62650 Effective 05-Jul-2018 28-Sep-2018 12-Jul-2019 30-Jun-2023 30-Jun-2023 P157715 IDA-62660 Effective 05-Jul-2018 21-Sep-2018 12-Jul-2019 30-Jun-2023 30-Jun-2023 P157715 IDA-62670 Effective 05-Jul-2018 22-Sep-2018 12-Jul-2019 30-Jun-2023 30-Jun-2023 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/27/2022 Page 5 of 5