The World Bank Third Export Development Project (EDP III) (P132381) REPORT NO.: RES50810 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE THIRD EXPORT DEVELOPMENT PROJECT APPROVED ON JUNE 16, 2014 TO THE REPUBLIC OF TUNISIA June 22, 2022 FINANCE, COMPETITIVENESS AND INNOVATION MIDDLE EAST AND NORTH AFRICA Regional Vice President: Ferid Belhaj Country Director: Jesko S. Hentschel Regional Director: Nadir Mohammed Practice Manager/Manager: Djibrilla Adamou Issa Task Team Leader(s): Lorenzo Bertolini, Mariem Malouche The World Bank Third Export Development Project (EDP III) (P132381) ABBREVIATIONS AND ACRONYMS CEDF-TASDIR+ Competitiveness Support and Export Development Fund (Fonds d'Appui à la Compétitivité et au Développement des Exportations - Fonds TASDIR+) CEPEX Center for Export Promotion (Centre de Promotion des Exportations) CRNE Center for National Business Registry (Centre Nationale du Registre des Entreprises) EDPIII Third Export Development Project FCI GP Finance, Competitiveness and Innovation Global Practice INNORPI National Institute of Standard and Industrial Property (Institut National de la Normalisation et de la Propriété Industrielle) IFC International Finance Corporation ISR Implementation Status and Results Report STAM Tunisian Company for Stevedoring and Handling (Société Tunisienne d’Acconage et de Manutention) PDO Project Development Objective PIU Project Implementation Unit RCC Central Business Registry (Registre du Commerce Centrale) RNE National Business Registry (Registre Nationale des Entreprises) SORT Systematic Operations Risk-rating Tool TCE Foreign Trade Title (Titre de Commerce Extérieure) TOS Terminal Operating System TND Tunisian Dinar The World Bank Third Export Development Project (EDP III) (P132381) BASIC DATA Product Information Project ID Financing Instrument P132381 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 16-Jun-2014 31-Dec-2022 Organizations Borrower Responsible Agency Republic of Tunisia Project Development Objective (PDO) Original PDO The project development objective is to help increase and diversify exports by supported enterprises in the identified sectors. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83980 16-Jun-2014 19-Aug-2014 01-Sep-2015 31-Dec-2022 50.00 22.57 22.51 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Third Export Development Project (EDP III) (P132381) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. Overview. The Third Export Development Project (EDPIII) is a EUR 36.3 million (US$50 million equivalent) IBRD loan (Loan No. 8398-TN) supporting the Government of Tunisia’s efforts to boost export-driven growth and competitiveness. The Project Development Objective (PDO) is to help increase and diversify exports by supported enterprises in the identified sectors. Project activities tackle policy level (including institutional and regulatory reform, infrastructure) and cluster/firm-level (financing, capacity, and coordination) constraints. The EDPIII consists of three components: (i) support to improve the business climate and diffusion of technology and innovation (US$13.35 million); (ii) provision of financial and non-financial services to export enterprises (US$32.55 million); and (iii) project management and support to the Ministry of Trade and Export Development, and the Ministry of Investment (US$4.10 million). The project was approved by the World Bank Group's Board of Executive Directors on June 16, 2014, and became effective on September 1, 2015, with an original closing date of December 31, 2020. The project’s closing date was extended to December 31, 2022, as part of a restructuring approved in December 2020. 2. Performance and Ratings. The project’s overall cumulative disbursement, as of June 9, 2022, is US$23.92 million (58.53 percent), with US$1.84 million disbursed so far in FY22. The project is rated Moderately Satisfactory for Progress Towards the Achievement of PDO and Moderately Unsatisfactory for Overall Implementation Progress in the latest Implementation Status and Results Report (ISR, June 8th, 2022). The Project is on track to meet two of its’ three PDO-level targets, namely “Percentage of beneficiary firms that expanded their markets (new countries) in existing and new products/Services” and “Additional annual export growth of beneficiary firms compared to Tunisia total export growth for the same year” while PDO 2 “Total value of exports that benefited from the export guarantee Dhamen Finance” has been lagging. Progress on intermediate indicators has been uneven. Of the ten Intermediate Indicators, three have been met. A few related to the implementation of structural activities of the Project remain unmet (contract to support the Customs Information System is in the mobilization phase, Value Chain investment plans are finalized but yet to be implemented). The project’s risk categories were reassessed and revised considering the World Bank’s new Systematic Operations Risk-rating Tool (SORT) guiding principles of April 2020, which resulted in the revision of the Overall Risk Rating from High to Substantial in September 2020 (see table below, extracted from the June 8th, 2022, ISR). Systematic Operations Risk-rating Tool Risk Category Current Rating* Political and Governance Substantial Macroeconomic Substantial Sector Strategies and Policies Moderate Technical Design of Project or Program Moderate Institutional Capacity for Implementation and Sustainability Substantial Fiduciary High Environment and Social Low The World Bank Third Export Development Project (EDP III) (P132381) Stakeholders Substantial Other High** Overall Substantial *SORT ratings recalibration was approved in the September 10, 2020, ISR – reflecting new guiding principles (April 2020). **Reflecting impact from the COVID19 pandemic 3. Financial Management. The EDPIII faces some fiduciary challenges including (i) overdue audit reports for the Tasdir+ component covering years 2019 and 2020; and (ii) some questionable / ineligible expenditure estimated at 995.688,032 DT at the end of 2019. The overall FM performance of the project is deemed unsatisfactory (U) and the risk assessed as substantial following the last implementation support mission of May 31 - June 3, 2022. Additional delays are expected for the audit report of the project 2021 financial statements mainly those of Tasdir+. 4. Project implementation. After a slow start at inception, project implementation turned around in 2020 owing to two restructurings: the first one in November 2017 and the second in January 2019, accompanied by the appointment of a new project implementation team at the Project Implementation Unit (PIU), close supervisory and technical assistance mobilized through sustained World Bank support (on areas including impact evaluation for the CEDF matching grants1, Dhamen Finance, and Customs IT reform). As a result, the project delivered several high-profile reforms to boost export driven growth and competitiveness. These include: a. The modernization of logistics at the Port of Radès (the main merchandise port in Tunisia), with the introduction of a new Terminal Operating System (TOS) and SMART GATE. The project supported Tunisian Company for Stevedoring and Handling (STAM, Société Tunisienne d’Acconage et de Manutention), the concessionaire and the operator of the Radès container terminal, in the modernization of the Port of Radès, including through the installation of an integrated solution, including: (i) a new TOS to help track the containers instantaneously and optimize the port management; and (ii) a SMART GATE (helping plan and organize the flow of goods at the terminal’s entry and exit gates). The modernized systems at the Port of Radès have been operational since December 2019. The World Bank supported the implementation of these initiatives at the Port of Radès through an integrated effort involving technical assistance and equipment provided by the EDPIII project, as well as a joint donor budget support platform — structured, inter alia, to sustain engagement on this policy reform program. b. The delivery of an innovative firm-level technical and financial assistance (CEDF-Tasdir+) and value chain development support focused on higher value-added exports and market diversification. The project supported the delivery of firm-level and cluster-level support to promote export and market diversification in value-added sectors – and the project has achieved the assigned targets in terms of firms benefiting from Tasdir. CEDF-Tasdir+ introduced innovative approaches (e.g., financing of implementation of office abroad for a more sustainable impact on exports), rigorous impact evaluation methodologies (e.g. random selection, randomized control trial) as well as procedures (e.g., on-line applications). The diffusion of trade-related technology and innovation supported through EDPIII included the modernization of the National Business Registry (RNE), and the development of an IT system managing request and issuance of export compliance certificate, and online platform of automatic economic operators. Activities in this area achieved assigned targets in terms of (i) number of Authorized Economic 1 Supported through the dedicated Advisory Services and Analytics program Tunisia Matching Grant Impact Evaluation (P158446). The World Bank Third Export Development Project (EDP III) (P132381) Operators (AEOs) (ii) average processing time for export certificates of conformity and (iii) number of finalized value chain investment plans. c. A comprehensive overhaul of the legal and institutional framework for pre-export finance guarantee (and capitalization of pilot initiative Dhamen Finance). The implementation of the pre-export finance component required a comprehensive overhaul of the legal framework governing the development of guarantee to pre-finance exporting firms, and an enhanced governance structure. The Bill amending Act 99-95 establishing Dhamen Finance Fund was approved by the Parliament on April 2, 2019, and the implementing decree was approved by an Inter-ministerial Council, on October 14, 2019, and published on the Official Gazette on November 1, 2019. The overhaul of the legal and institutional framework delayed the rolling out of the pre-export financing guarantee scheme — considering the time required to adopt the law and detailed specifications of the new product (towards banks and beneficiaries), set up the governance arrangement, as well as strengthening the technical management capacities of the fund. However, the guarantee fund has been capitalized (Dhamen Finance currently has a capitalization of about Tunisian Dinar [TND] 25 million to pilot the fund under the new framework) and the authorities will have the means to carry on with the new approach. If technical assistance is required down the line, resources other than EDPIII can be mobilized. 5. The project closing date was extended from December 31, 2020, to December 31, 2022, reflecting the positive track record achieved between 2019-2020 and the Government’s commitment to complete the project’s unfinished agenda in support of export competitiveness (including Customs IT system, CEPEX modernization, Task Force on Value Chain Development and Clusters) and discontinuing other activities. Project implementation during the extension phase has been severely challenged by governance and implementation delays, as also noted in the Mission Aide-memoire and ISRs filed in 2021 and 2022 (12-Mar-2021, 31-May-2021,8-Dec-2021, 8-Jun-2022). These delays have been exacerbated by political turnover, frequent management changes and COVID cases within involved public administrations. Considerable governance challenges and persistent implementation delays were particularly acute with regard to activities under the responsibility of CEPEX, the project executing agency in charge of implementing the Tasdir+ program, the matching grant for competitiveness and export development, as well as support to value chains and the implementation of the roadmap for its institutional restructuring. 6. For Tasdir+, continuous monitoring by the World Bank task team as well as a strengthening of CEPEX team resulted in the settlement of delayed disbursement requests submitted by beneficiary companies as well as payments owed to services providers and experts. However, the submission of Tasdir+ component audit reports is delayed (procurement for the external auditor for 2019 and 2020 is underway). 7. Governance challenges also affected CEPEX's ability to implement other activities under its umbrella, including those related to CEPEX's restructuring and value chain support. Regarding the former, the formalization of CEPEX restructuring is still pending. Whereas regarding the latter, investment plans and public private dialogue meetings were successfully completed by the Task Force on the Development of Value Chains with regard to three selected Value Chains (crab, fashion, medical tourism). 8. For National Business Register (RNE) activities, two complementary activities have finalized the procurement process and service providers have been selected, namely (i) the development of a specific module for processing compliance and legal decisions and (ii) the acquisition of IT equipment. The first will be proposed for financing by the Compact With Africa Trust Funds and the second will be executed and financed by the World Bank's Digital Transformation for User Centric Public Services (hereafter "GovTech") project after the contract is signed under EDPIII. RNE will sign the contract (procedure to be completed under EDPIII) and will provide project management The World Bank Third Export Development Project (EDP III) (P132381) and acceptance of deliverables. The GovTech PIU will control the payment files and order payments in accordance with the contract. After transfer of the contract, all future amendments will be prepared by RNE and submitted to the GovTech PIU for approval and signature. 9. The mobilization of the Customs IT contract was launched after significant delay, following the signing of the contract with the service provider (Intrasoft) on February 26, 2021, and the amendment to the contract on October 8, 2021. So far, only a mobilization payment equivalent to 10% (EURO 786,991.45) has been processed by the PIU on December 6, 2021. Important delays are registered concerning certain measures and actions to accelerate the development of the new Customs Information System (IS). This involves: (i) sharing the implementation schedule with the modules that will be delivered and a precise disbursement plan; (ii) setting up a UGO (Unité de Gestion par Objectifs) and a technical team within Customs to work alongside the Intrasoft Team; and (iii) confirming the mobilization of the complementary budget to cover the cost of the equipment that will be delivered outside of the EDPIII. An amendment to the contract is currently being discussed between the client and Intrasoft, regarding changes to the name of the firm and software as well as modules and payment schedule. B. Rationale for Restructuring 10. In response to the difficult economic and financial situation in Tunisia due to the impacts of COVID-19, the war in Ukraine and its spill-over effects on the import bills and food security, coupled with the political instability since 2020, GoT, in its letter of April 18th requested a partial cancellation of supported projects that were facing implementation delays including the EDPIII. This would allow GoT to reinvest the cancelled amounts into key sectors with pressing needs such as health, education, social security, safety nets, economic recovery, and overall budgetary support. This was followed by the request from the Ministry of Economy and Planning (MEP) on May 19, 2022, including for the Bank to conduct a restructuring mission for the EDPIII which was held between May 31-June 3, 2022, and aide mémoire transmitted by letter dated June 20, 2022. The GoT confirmed on June 22, 2022, the final amount to be canceled. 11. This restructuring proposes to: (i) cancel EUR 16,190,149 (sixteen million one hundred ninety thousand one hundred forty-nine Euros) under EDPIII (Loan No. 8398- TN); (ii) reallocate loan proceeds between categories; (iii) revise component costs, focusing on the completion of key components, and undertaking required activities for project closing (activities are not canceled but rather scaled down); (iv) update the results framework (dropping intermediate indicators related to Customs IT, Value Chain investment plans, and CEPEX reform), reflecting the focus on project closing and scaling down of project activities. 12. Restructuring reflects the need to refocus the project on activities that can be executed and feasibly be completed by the project’s closing date of December 31, 2022 and freeing up unused loan proceeds for urgent alternative programs in Tunisia. C. Action Plan for Implementation 13. The World Bank and the Borrower have agreed on the following actions that will be undertaken to complete the project under the established components in the Loan Agreement and within the remaining period. a. Component 1: Support to improve the business climate and diffusion of technology and innovation (decreased from US$13.35 million to US$4.96 million): The World Bank Third Export Development Project (EDP III) (P132381) i. Customs modernization (IT system). Support includes the acquisition of software modules and the provision of advisory services and training to customs officials for upgrading customs information technology systems. Following an international competitive bidding process, a contract entailing the purchase, installation and deployment of a Customs IT system (SID) was signed on February 26, 2021 (and amended on October 8, 2021), between the Government and private sector company Intrasoft. The total amount of the contract is 7,869,914.50 EURO TTC. The total duration of implementation for customs IT contract is 3 years as initially planned by the service provider. To this end, following restructuring, support for this contract will be discontinued by the EDPIII and subsumed under World Bank-funded GovtTech IPF. Government confirmed its commitment to support the reform and mobilize any remainder funds (including through donor support) that may be required once the project is closed. This approach has been clearly communicated to the government during the preparation of the restructuring (during joint project review meetings held on February 2) and communicated by the Government in project restructuring request of April 18th, 2022, and May 31 - June 3, 2022, restructuring mission. GovTech will update its MOP and STEP to reflect the new activities and implementation arrangements (with transferring of fiduciary oversight from the EDPIII to the GovTech PIU). ii. Trade logistics competitiveness. Ongoing institutional support activities on logistics and transport (including institutional capacity building for the Ministry of Transport) will be finalized and no further procurement activity will be undertaken under this component. iii. Diffusion of trade-related technology and innovation. Committed activities related to this sub- activity has been achieved. As requested by Government and confirmed during the May 31-June 3, 2022, restructuring mission, while the EDPIII PIU will support the finalization of the procurement process, funding and oversight of activities related to strengthening the equipment of the National Business Registry (Registre Nationale des Entreprises) will be transferred to the GovTech project (and including an update of GovTech’s MOP and STEP). b. Component 2: Provision of financial and non-financial services to export enterprises (decreased from US$32.55 million to US$14.27 million) i. Matching grant for export competitiveness and development (CEDF-Tasdir+): Activities under the firm-level support provided by this component are completed (except for conducting the impact evaluation of the CEDF-Tasdir+ and transferring innovative approaches and procedures to CEPEX). The Taskforce for Value Chain and Cluster Development2 brings together a dedicated team of practitioners from Tunisia’s six private sector development and support agencies3, and is supported by International Finance Corporation (IFC) advisory as well as four World Bank-financed operations.4 The project support on clusters and the Task Force is already reflected in the Project Implementation Manual since 2018. Based on rigorous public-private dialogue and analytical 2 Established by Government in 2018, building on a series of World Bank Group technical assistance initiatives. 3 These include: CEPEX, APII (industrial development agency), APIA (agency for investment promotion in agriculture), TIA (FDI promotion agency), ODNO (Regional development agency for the north-west of Tunisia), and ODCO (regional development agency for the center-west of Tunisia). 4 These include: the Productive Inclusion Opportunities for Young Women and Men Project (P158138); the Irrigated Agriculture Intensification Project (P160245); the Integrated Landscape Management Project in the Lagging Regions of Tunisia (P151030), and the Tunisia Third Export Development Project (P132381). The World Bank Third Export Development Project (EDP III) (P132381) approach, the Task Force helps identify and promote policy reforms and investment plans to strengthen Micro-Small and Medium Enterprises (MSMEs) competitiveness in targeted value chains. Investment plans and public-private dialogue meetings have been completed for three value chains selected under PDEIII: Crab in Sfax, Apparel in Monastir, Sousse and Mahdia, and Medical Tourism in Tunis. During the remaining months to project closing, this sub-component will focus on continuing disseminating investment plans that will enhance competitiveness of targeted value chains and pursuing consultations with the authorities and partners in order to identify sources of support for the of the identified reforms and investment plans. As for the financial management aspects, an audit of the TF is scheduled, but significantly behind schedule. ii. Modernization of the CEPEX: The project delivered technical assistance and IT capacity building to modernize CEPEX as a sustainable provider of export development services to Tunisian firms. The adoption of new structure of CEPEX and action plan to transition to a modern, sustainable provider of export development services to Tunisian firms was formalized during 2020. The new vision for CEPEX has been adopted by the CEPEX Board on May 12, 2020. Except for the completion of ongoing activities, additional follow up support under this sub-component to accompany the modernization of CEPEX and the related budgeted plan will be discontinued. c. Component 3: Project management and support to the Ministry of Trade and Ministry of Investment (decreased from US$4.1 million to US$1.58 million). The project facilitated trade missions export development initiatives, as well as the simplification of trade related instruments. Except for the completion of select activities and project management and coordination through project closing, additional follow up support under this sub-component to accompany the modernization of CEPEX and the related budgeted plan will be discontinued. 14. In order to ensure smooth project closing and enhance the quality of supervision in the challenging COVID19 context, the World Bank has increased the frequency of implementation support and technical missions focusing on priority activities (e.g. Customs IT, CEPEX, Tasdir+) holding regular calls (several times a week) and regular meetings with the PIU and relevant agencies. Implementation support benefitted from the assistance of the World Bank Tunis-based Finance, Competitiveness and Innovation Global Practice (FCI GP) team. The World Bank Third Export Development Project (EDP III) (P132381) II. DESCRIPTION OF PROPOSED CHANGES 15. The changes proposed under this restructuring are as follows: a. Cancelling EUR 16.19 million from the loan proceeds of EDPIII distributed as follows: (i) EUR 9.69 million from uncommitted amount outside of project management and coordination; (ii) EUR 7.09 million from committed but unpaid amount for customs IT contract; while (iii) retaining EUR 0.59 million for ongoing or future commitments related to project closing. Uncommitted amounts are essentially for activities under CEPEX management that observed persistent delays namely CEPEX restructuring (approx. EUR 1.45 million), Value chain support (approx. EUR 7.26 million) and other delayed activities (approx. EUR 0.98 million). Disbursement estimates and implementation schedule will also be updated in accordance with the loan cancellation. b. Focus project on completing existing contracted commitments and undertaking new procurement activities strictly related to the closing of the project (assessments, audits, etc.). c. Considering that the development of a new Customs IT system is a strategic activity for business climate improvement and export development, and given that such support was mobilized through EDPIII (with a first disbursement already made in support of a contract extending beyond the EDPIII project closing date), the Government of Tunisia and the World Bank agreed during the May 31-June 3, 2022 restructuring mission to (i) discontinue support for this contract by the EDPIII (EUR 7,082,923) and (ii) continue support for this activity through the World Bank-financed Digital Transformation for User-Centric Public Services (henceforth “GovTech”) project (P168425, closing June 20, 2025 )5. d. Similarly, as requested by Government and confirmed during the May 31-June 3, 2022, restructuring mission, funding and oversight of activities related to strengthening the IT equipment (EUR 528,988.58) of the National Business Registry (Registre National des Entreprises) will be transferred to the GovTech project (and including an update of GovTech’s MOP and inclusion in STEP – though the EDPIII PIU will support the finalization of the related procurement process). e. Reallocating loan proceeds amongst categories and components: i. Component 1 (Support to improve the business climate and diffusion of technology and innovation) decreased from US$13.35 million to US$4.96 million, Component 2 (Provision of financial and non-financial services to export enterprises) decreased from US$32.55 million to US$14.27 million, and Component 3 (Project management and support to the Ministry of Trade and Ministry of Investment) decreased from US$4.1 million to US$1.58 million. ii. Accordingly, Category 1 (Supplies, services, consultants, training and operating expenses for the components) decreased from EUR 12.89 million to EUR 6.29 million, Category 2 (Supplies, Services, Consultants and Training under Component 2.3) decreased from EUR 2.2 million to EUR 0.86 million, Category 3a (Tasdir+) decreased from EUR 14.45 million to EUR 6.89 million, Category 3(b) (Goods, services, training and operating costs for Part 2.A) decreased from EUR 2.82 5 Customs IT system (SID) contract signed in 2021 has a 3-years’ duration as initially planned by the service provider and is expected to be delivered by December 2024 (followed by 1 year of guarantee period until December 2025). A schedule of expected deliverables and outstanding payments (to be financed under the GovTech project until June 2025) is being updated between the client and the service provider. The World Bank Third Export Development Project (EDP III) (P132381) million to EUR 2.52 million and Category 4 (a) (Dhamen Finance) remains unchanged at EUR 3.26 million and Category 4 (b) (Supplies, Services, Consultants, Training for component 2.2) decreased from EUR 0.57 million to EUR 0.17 million. f. Updating the results framework, reflecting the reduced scale of the project components. More specifically, the results framework has been adjusted and agreed with the client as follows: (i) targets of intermediate indicators are adjusted, reflecting the scaling down of activities moving forward (Customs IT, CEPEX restructuring, and Value Chain Development); and (ii) intermediate indicators related to activities no longer supported are dropped. These changes are summarized in the table below: Project Development Objective Indicators Comment Current Target (May. 2022) (Dec. 2022) Additional annual export growth of beneficiary firms No change 33.6 40 compared to Tunisia total export growth for the same year (Percentage) Total value of exports that benefited from the export No change 84.2 580 guarantee Dhamen Finance (Amount (US$ million)) Percentage of beneficiary firms that expanded their No change 44.60 50 markets (new countries) in existing and new products/services (Percentage) Intermediate Results Indicators Comment Current Target (May. 2022) (Dec. 2022)6 Average time to process and release containers in the port No change 3.48 3 of Radès (TRS- time release study) (Days) Firms that have become Authorized Economic Operators No change 122 100 (Number) Average time to process export conformity certification No change 24 24 requests (Hours) Average waiting time per container to enter or exit the No Change 1 0.5 port of Rades (Hours) Number of Containers Handled at the Port of Rades (TOS) No Change 132,000 435,000 (annual) Implementation of Customs IT annual work plan (Yes/No) Deleted No Yes Time required to register at the RNE (Hours) No Change 20 2 Value Chain Investment Plans developed (cumulative No Change 3 3 number) Value Chain investment plans annual work program Deleted 0 2 implemented (cumulative number) 6 These targets are based on changes to the Results Framework adopted as part of the 2020 Restructuring. The World Bank Third Export Development Project (EDP III) (P132381) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) The World Bank Third Export Development Project (EDP III) (P132381) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Support to improve the business Support to improve the climate and diffusion of 13.35 Revised business climate and diffusion 4.96 technology and innovation of technology and innovation Provision of financial and non- Provision of financial and non- financial services to export 32.55 Revised financial services to export 14.27 enterprises enterprises Project Management and Project Management and Support to the Ministry of Support to the Ministry of Trade 4.10 Revised 1.58 Trade and Ministry of and Ministry of Investment Investment TOTAL 50.00 20.81 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' Disburs S REQUEST IBRD- ing&Re EUR 36,300,000.00 16,190,149.00 22-Jun-2022 20,109,851.00 FOR 83980-001 paying COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-83980-001 | Currency: EUR iLap Category Sequence No: 1 Current Expenditure Category: GDS, NCS, CS, TRG, IOC Part 1 & 3 12,895,910.00 5,513,763.09 6,295,578.00 100.00 100.00 The World Bank Third Export Development Project (EDP III) (P132381) iLap Category Sequence No: 2 Current Expenditure Category: GDS, NCS, CS, TRG, Part 2.C 2,200,000.00 771,243.38 861,934.00 100.00 100.00 iLap Category Sequence No: 3 (A) Current Expenditure Category: Matching Grants under Part 2.A 14,450,000.00 6,664,379.85 6,897,641.00 100.00 100.00 iLap Category Sequence No: 3 (B) Current Expenditure Category: GDS, NCS, CS, TRG, Part 2.A(a) 2,827,995.00 1,772,269.14 2,527,570.00 100.00 100.00 iLap Category Sequence No: 4 (A) Current Expenditure Category: Export Fin Guarantee Part 2.B (a) 3,264,800.00 3,264,800.00 3,264,800.00 100.00 100.00 iLap Category Sequence No: 4 (B) Current Expenditure Category: GDS, NCS, CS, TRG, Part 2.B (b) 570,545.00 171,578.00 171,578.00 100.00 100.00 iLap Category Sequence No: FEF Current Expenditure Category: FRONT END FEE 90,750.00 90,750.00 90,750.00 Total 36,300,000.00 18,248,783.46 20,109,851.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2014 0.00 0.00 2015 0.00 0.00 2016 5,612,733.29 0.00 2017 4,316,482.29 0.00 2018 3,794,576.10 0.00 The World Bank Third Export Development Project (EDP III) (P132381) 2019 4,512,879.54 0.00 2020 3,618,848.24 0.00 2021 2,500,000.00 124,552.90 2022 12,000,000.00 483,428.29 2023 13,644,480.54 1,531,760.00 . The World Bank Third Export Development Project (EDP III) (P132381) . Results framework COUNTRY: Tunisia Third Export Development Project (EDP III) Project Development Objectives(s) The project development objective is to help increase and diversify exports by supported enterprises in the identified sectors. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target , Percentage of beneficiary firms that expanded their markets (new countries) in existing and new products/Services 0.00 50.00 (Percentage) Total value of exports that benefited from the export guarantee 0.00 580,000,000.00 Dhamen Finance (Amount(USD)) Additional annual export growth of beneficiary firms compared 0.00 40.00 to Tunisia total export growth for the same year (Percentage) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Provision of financial and non-financial services to export enterprises Average waiting time per container to enter or exit the port of 4.00 0.50 Rades (Hours) The World Bank Third Export Development Project (EDP III) (P132381) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Average time to process and release containers in the port of 5.10 3.00 Radès ( TRS- time release study) (Days) Firms that have become Authorized Economic Operators 9.00 100.00 (Number) Average time to process export conformity certification requests 72.00 24.00 (Hours) Time required to register at the RNE (Hours) 48.00 2.00 Number of Containers Handled at the Port of Rades (TOS) 320,000.00 435,000.00 (Number) Implementation of Customs IT annual work plan (Yes/No) No Yes Action: This indicator has been Marked for Deletion Implementation of CEPEX reform annual work plan (Yes/No) No Yes Action: This indicator has been Marked for Deletion Value Chain Investment Plans developed (cumulative number) 0.00 3.00 (Number) Value Chain investment plans annual work program 0.00 2.00 implemented (cumulative) (Number) Action: This indicator has been Marked for Deletion IO Table SPACE The World Bank Third Export Development Project (EDP III) (P132381)