The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) Mongolia Export Development Project (P147438) EAST ASIA AND PACIFIC | Mongolia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 11 | ARCHIVED on 24-Feb-2022 | ISR49451 | Implementing Agencies: Mongolia, Agricultural Reinsurance Company, now MongolianRe, Ministry of Food, Agriculture and Light Industry, Ministry of Labor and Social Protection Key Dates Key Project Dates Bank Approval Date: 07-Jul-2016 Effectiveness Date: 22-Dec-2016 Planned Mid Term Review Date: 30-Sep-2018 Actual Mid-Term Review Date: 28-Sep-2018 Original Closing Date: 30-Jun-2021 Revised Closing Date: 31-Dec-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the project is to support Mongolian Small and Medium size firms (SMEs) in the non-mining sectors to strengthen their export capabilities and expand access to export markets. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) The revised PDO is to support Mongolian Small and Medium size firms (SMEs) in the non-mining sector to strengthen their expert capabilities, expand access to export markets and to provide relief support for the COVID-19 recovery. Components Table Name Component 1: Development of a new line of export finance products:(Cost $1.50 M) Component 2: Export competitiveness enhancement.:(Cost $12.00 M) Component 3: Strengthening Certification Services and Quality Management:(Cost $4.00 M) Component 4: Project Implementation Support:(Cost $2.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The Export Development Project (EDP) is a US$20 million credit approved by the World Bank (WB) Board on July 7, 2016. EDP became effective on December 22, 2016 and will be closing on December 31, 2023 -- seven years later. The revised Project Development Objective (PDO) is to support ‘Mongolian Small and Medium size firms (SMEs) in the non-mining sector to strengthen their export capabilities, expand access to export markets and to provide relief support for the COVID-19 recovery’. EDP is designed around four mutually reinforcing components: Component 1: 2/24/2022 Page 1 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) Development of Export Finance Products (US$1.5 million), Component 2: Export Competitiveness and Market Access Enhancement (US$12 million), Component 3: Strengthening Certification Services and Quality Management (US$4 million), and Component 4: Project Implementation Support (US$2.5 million) There is a need to strengthen the strong 2022 work program and identify opportunities for speeding-up implementation across the board to improve the likelihood of Government of Mongolia (GOM) utilizing 100 percent of the project budget by end-December 2023 when the project closes, safeguard implementation slippages, and ensure adequate emphasis on policy development, institutional strengthening, and sustainability to enhance overall development impact of project operations. Component 1: Development of Export Finance Products This component aims at providing financial, technical, and institutional development support to Mongolian Re in building a new line of export finance products. Specifically, the Sub-component is supporting the launch of one export credit insurance (ECI) product (post-shipment product) by Mongolian Re that is accessible to all non-mining exporters and attracts commercial interest from international reinsurers. Component 2: Export Competitiveness and Market Access Enhancement This component focuses on supporting GOM develop a comprehensive trade policy framework and undertake policy-level interventions to tackle systemic and binding export related bottlenecks and challenges key to enabling economic opportunities for businesses, as well as to support the GOM’s COVID-19 response measures supporting recovery of export-oriented SMEs. This is a reform area requiring progress across multiple ministries, departments, and agencies (MDAs) in several areas through strengthening governance, institutional effectiveness, efficiency, and sustainability. Sub-component 2.1: Trade and Export Policy and Capacity Enhancement This Sub-component aims to contribute to GOM objectives under the Mongol Export Program for 2018-22 (MEP) “to create a favorable tax, financing and legal environment for the production of export products and investments in trade”. Specifically, the Sub-component is supporting GOM de-fragment Mongolia’s landscape of trade and development policy instruments by developing an umbrella policy unifying the fragmented policies into a single tool, and to increase the overall awareness and capacity to better utilize the existing trade agreements. In this regard, the Sub- component is supporting GOM in developing a comprehensive and coherent export and trade policy, and drafting the required legislation, and provide the related capacity building on understanding the opportunities of the trade agreements and to disseminate such information to the SMEs. Sub-component 2.2: International Market Competitiveness Enhancement This Sub-component aims to support implementation of MEP activities, such as developing and implementing the international marketing strategy; supporting e-commerce development and SMEs coordinated participation in expos and trade forums; and promoting the Mongolian national brand products. Sub-component 2.3: Productive Partnership Scheme (PPS) This Sub-component aims to help export-oriented SMEs and clusters from non-mining sectors to improve their competitiveness with a view to create opportunities for new exports and export markets. The PPS provides technical assistance and financial support to eligible SMEs and clusters to enhance overall competitiveness of participating enterprises by boosting productivity growth and improving quality of products, thereby creating more job opportunities for Mongolians, especially females. Sub-component 2.4. COVID-19 Response Measure This Sub-component was aimed to support the GOM’s COVID-19 relief measures providing temporary unemployment insurance contribution payment relief for eligible employers and their workers up to US$1.5 million. Component 3: Strengthening Certification Services and Quality Management This component mainly focuses on enhancing capacity of services related to international certification of non-food laboratories in Mongolia with a view to ensuring that SMEs benefit from product testing at accredited labs. Specifically, this component will support two non-food laboratories become internationally accredited. Component 4: Component 4. Project Implementation Support The objective of this component is to support coordination, implementation, and monitoring of project activities by the Ministry of Food, Agriculture and Light Industry (MOFALI). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High Moderate Moderate Macroeconomic High Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate 2/24/2022 Page 2 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Moderate Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Strenghten SMEs export capabilities and expand access to export markets IN01076085 ►Increase in export volume (by price) by the Project beneficiaries (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18.30 18.30 25.00 Date 22-Dec-2016 11-Jun-2021 31-Oct-2021 31-Dec-2023 IN01076131 ►Number of firms that obtain internationally-recognized quality certification following support from the Project(cumulative, disaggregated by the number of firms owned by women) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 12.00 25.00 Date 22-Dec-2016 11-Jun-2021 31-Oct-2021 31-Dec-2023 IN01076132 ►Number of firms that start exporting following participation in project activities (cumulative, disaggregated by the number of firms owned by women) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 9.00 30.00 Date 22-Dec-2016 11-Jun-2021 31-Oct-2021 31-Dec-2023 IN01076133 ►Number of Export Credit Insurance Products developed by Mongolian Re (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 22-Dec-2016 11-Jun-2021 31-Oct-2021 31-Dec-2023 IN01076134 2/24/2022 Page 3 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) ►Number of new export destinations for the project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 10-Jul-2020 11-Jun-2021 31-Oct-2021 31-Dec-2023 IN01076135 ►Total unemployment insurance contribution payments made to non-mining SMEs (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,500,000.00 1,500,000.00 1,500,000.00 Date 24-Aug-2020 11-Jun-2021 31-Oct-2021 31-Dec-2020 Intermediate Results Indicators by Components Component 1: Development of a new line of export finance products IN01076136 ►Number of firms benefiting from export insurance products (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 22-Dec-2016 11-Jun-2021 31-Oct-2021 31-Dec-2023 Component 2: Export competitiveness enhancement. IN01076138 ►Increase in export revenues for Productive Partnership Scheme beneficiaries (average) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.40 20.40 25.00 Date 22-Dec-2016 11-Jun-2021 31-Oct-2021 31-Dec-2023 IN01076140 ►Number of SMEs supported by the COVID-19 measure (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 332.00 332.00 300.00 Date 10-Jul-2020 11-Jun-2021 31-Oct-2021 31-Dec-2023 IN01076141 ►Number of clusters supported by the Productive Partnership Scheme (Number, Custom) 2/24/2022 Page 4 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 10-Jul-2020 11-Jun-2021 31-Oct-2021 31-Dec-2023 Component 4: Project Implementation Support IN01076139 ►Beneficiaries that feel project investments reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 98.00 98.00 95.00 Date 22-Dec-2016 11-Jun-2021 31-Oct-2021 31-Dec-2023 Component 3: Strengthening Certification Services and Quality Management IN01076137 ►Number of SMEs benefiting from accredited reference laboratories supported by the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 10-Jul-2020 11-Jun-2021 31-Oct-2021 31-Dec-2023 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P147438 IDA-58790 Effective USD 20.00 20.00 0.00 5.27 14.75 26% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P147438 IDA-58790 Effective 07-Jul-2016 26-Aug-2016 22-Dec-2016 30-Jun-2021 31-Dec-2023 Cumulative Disbursements 2/24/2022 Page 5 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 19-Dec-2019 ,Level 2 Approved on 28-Aug-2020 Related Project(s) There are no related projects. 2/24/2022 Page 6 of 6