The World Bank Report No: ISR10753 Implementation Status & Results Mozambique Competitiveness and Private Sector Development (P106355) Public Disclosure Copy Operation Name: Competitiveness and Private Sector Development (P106355) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 26-Jun-2013 Country: Mozambique Approval FY: 2009 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Industry and Commerce Key Dates Board Approval Date 12-Feb-2009 Original Closing Date 30-Nov-2014 Planned Mid Term Review Date 30-Jun-2011 Last Archived ISR Date 22-Dec-2012 Effectiveness Date 28-Oct-2009 Revised Closing Date 30-Nov-2014 Actual Mid Term Review Date 20-Aug-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The projects overall objective will be to improve the business environment ande nhance the competitiveness of targeted enterprises.This will be achieved by: (i) reducing the cost of doing business through support to GoM reforms and capacity building of key public sector agencies (ii) developing and strengthening the capacity of local intermediaries to deliver business services in targeted sectors; (iii) and piloting region specific interventions in tourism and horticulture sectors. Indicators include results at the enterprise level such as increased sales; results at the intermediary level such as number of new business services to SMEs; and at the policy level such as through improved Doing Business ranking. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Improving Enterprise Competitiveness 14.39 Improving Business Enabling Environment 5.30 Project Management, Monitoring, and Evaluation 3.66 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The project has experienced an important milestone in the past few months with the approval and launch of three of the largest contracts which have been in process for an extended time. Specifically, the Nampula Centre Rehabilitation Contract , the Nampula Centre Management Contract , and the Customs Capacity Building Contract have all commenced in the Page 1 of 5 The World Bank Report No: ISR10753 past five months. With regards to the Matching Grant Component, a fourth application window has been launched, the team has been augmented, and there has been a renewed effort to increase disbursement levels overall and to expand program outreach to areas outside Maputo. This has resulted in a significant increase in grant disbursements from US $140,000 in 2011 to US$620,000 in 2012 for a total grant disbursed of US$760,000 which corresponds to 44% of total grant approved. With regards to the business licensing reform, which is implemented jointly with the IFC Investment Advisory Team, two important milestones were achieved. One is that the licensing inventory has been concluded. This inventory Public Disclosure Copy which contains 800 licenses from 7 Ministries will now allow for the launch of the web-based portal which will provide updated information on each license process, cost, and time for completion. This will contribute to greater transparency and efficiency in the administration of licenses. The second milestone is the approval by the Council of Ministers on May 21 of the revised Commercial Licensing Decree which will reduce the number of days to issue this license. Despite this progress, there is still a need to accelerate implementation pace and conclude all outstanding contracting processes. Locations Country First Administrative Division Location Planned Actual Mozambique Provincia de Nampula Provincia de Nampula Mozambique Provincia de Inhambane Provincia de Inhambane Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Sales growth for SMEs benefiting from the Text Value 0 20% sales growth for SMEs grant program compared to that in control supported group Date 01-Jul-2009 30-May-2013 30-Nov-2014 Comments Baseline survey is now being Baseline survey has been Indicator will be adjusted as carried out. There were concluded and results will be per the Mid Term Review delays in hiring the survey posted for next ISR. As per recommendation consultant. The results will project data as of February, still be valid for measuring 2013, sales growthis being impact calculated for approved activities and for the 79 businesses, the average growth in sales from 2009 has Public Disclosure Copy been significant but much of the grant activities have only recently been concluded (in 2012) and the data will need to be re-analyzed based on recent performance and the baseline survey now concluded which should result in more complete, verifiable, and attribuable figures Page 2 of 5 The World Bank Report No: ISR10753 Value of exports in supported businesses from Text Value 0 0 US$ 4 million Nampula Center Date 01-Jul-2009 30-May-2013 30-Nov-2014 Comments The management consultancy Public Disclosure Copy for the Institute started in March 2013 and no training has yet taken place; once training starts impactof business will be recorded. Number of days to issue commercial license Days Value 22.00 8.00 11.00 Date 01-Jul-2009 31-May-2013 Comments Decree 49/2004 is the The commercial license applicable decree. revised decree has been passed by the Council of Permit issuance: 7 days Ministers in May 2013. Card to practice commercial activities: 15 days Number of days to issue industrial licenses Days Value 40.00 40.00 20.00 Date 01-Jul-2009 30-May-2013 30-Nov-2014 Comments Decree 39/2003 is the The study for the revision of applicable decree. Days the Industrial License is counted as follows: decree is being launched - Application: 10 days - Approval- 30 days Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of project supported trainees using Text Value 0 684 (319 in private sector of 800 acquired skills in tourism related businesses which 139 are women and 365 in public sector of which 53 are women) Date 01-Jul-2009 30-May-2013 30-Nov-2014 Public Disclosure Copy Comments Number of trainees using the acquired Text Value 0 0 800 techniques and quality standards to improve Date 01-Jul-2009 30-May-2013 30-Nov-2014 horticultural products Comments The management consultancy N/A for the Institute started in March 2013 and no training has yet taken place Page 3 of 5 The World Bank Report No: ISR10753 Reduction in number of days to clear imports Text Value 26 - exports and 32-imports 23- exports and 28- imports 13-exports and 16- imports and exports Date 01-Jul-2009 30-May-2013 30-Nov-2014 Comments There has been some Public Disclosure Copy progress due to streamlined procedures. As agreed at MTR, the targets will be revised to focus on activities that are related to Customs (the measurement now uses the DB methodology which includes port handling and in- land transport) Volume of Bank Support: Institutional Amount(USD) Value 0.00 760000.00 4000000.00 Development - SME Date 01-Jul-2009 30-May-2013 30-Nov-2014 Comments N/A Number of standards introduced for which Number Value 3.00 9.00 standard setting has been initiated by the Date 01-Jul-2009 30-Sep-2012 private sector Comments Data on Financial Performance (as of 04-Jun-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P106355 IDA-45460 Effective 12-Feb-2009 02-Apr-2009 28-Oct-2009 30-Nov-2014 30-Nov-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P106355 IDA-45460 Effective XDR 16.80 16.80 0.00 9.05 7.75 54.00 Public Disclosure Copy Disbursement Graph Page 4 of 5 The World Bank Report No: ISR10753 Public Disclosure Copy Key Decisions Regarding Implementation - Monitor the implementation of recently approved contracts - Conclude and launch contracts related to tourism component - Increase efforts for greater outreach of the Matching Grant Component - Disseminate reforms passed and accelerate the work on the operationalization of the business license portal and the revisions of the Industrial and Tourism licenses Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5