The World Bank Report No: ISR9061 Implementation Status & Results Azerbaijan Capital Markets Modernization Project (P120321) Public Disclosure Copy Operation Name: Capital Markets Modernization Project (P120321) Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 09-Jan-2013 Country: Azerbaijan Approval FY: 2011 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 17-Mar-2011 Original Closing Date 31-Dec-2015 Planned Mid Term Review Date 15-Nov-2013 Last Archived ISR Date 08-Oct-2012 Effectiveness Date 07-Nov-2011 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) Increase the use of equity and corporate debt as financing and/or investment instruments through the adoption of an effective capital markets regulatory framework and infrastructure. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Streamlining and Automating Market Infrastructure. 6.00 Component 2: Updating and Strengthening the Legal and Regulatory Framework. 1.90 Component 3: Stimulating Supply. 1.80 Component 4: Capacity Building 3.90 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Implementation Status Overview The project is at an early stage of implementation. The contract for the single main consulting assignment under the project has been awarded and contract implementation started in September 2012. The single main consultancy assignment is aimed at providing technical assistance to support the modernization of Azeri capital market by (1) streamlining and automating market infrastructure, (2) updating and strengthening the legal and regulatory framework, (3) stimulating the supply of financial and investment products, and (4) building Page 1 of 5 The World Bank Report No: ISR9061 capacity for the State Committee on Securities in its role as regulator and for the general public as the end users of the savings and investment vehicles. The project was made effective in November 2011. Locations Public Disclosure Copy No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased issuance of corporate bonds Percentage Value 1.90 1.90 3.80 Date 15-May-2011 31-Dec-2011 Comments The contract implementation for the single main consultancy assignment started in Sept 2012. The project is at an early stage of implementation thus no significant change in PDO level indicators is reported yet. Increased number of companies with listed Number Value 2.00 2.00 8.00 equity (accumulative) Date 15-May-2011 31-Dec-2011 Comments The contract implementation for the single main consultancy assignment started in Sept 2012. The project is at an early stage of implementation thus no significant change in PDO level indicators is reported yet. Public Disclosure Copy Improved price transparency Percentage Value 0.00 0.00 90.00 Date 15-May-2011 24-Jun-2011 Comments The contract implementation for the single main consultancy assignment started in Sept 2012. The project is at an early stage of implementation thus no significant change in PDO Page 2 of 5 The World Bank Report No: ISR9061 level indicators is reported yet. Intermediate Results Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Ratio of market participants electronically Percentage Value 0.00 83.00 100.00 linked to market infrastructure (trading, clearing Date 15-May-2011 31-Dec-2011 and settlements) Comments This indicator has improved substantially as market participants have been granted web-based access for BSE/NDC. Since the frequency is annual the value will be updated based on end December 2012 data. Enactment of a new Capital Market Act Text Value No No Yes Date 15-May-2011 30-Nov-2012 Comments The draft law on securities is well advanced and is currently under inter-government consultations. Promulgation of capital markets regulation Text Value No No Yes required upon enactment of Law Date 15-May-2011 30-Nov-2012 Comments The contract implementation on single main consultancy assignment started in Sept 2012. The implementing regulations will be developed under this consultancy assignment Number of companies involved in the listing Number Value 0.00 0.00 15.00 Public Disclosure Copy advisory program (debt and equity) Date 15-May-2011 24-Jun-2011 Comments The contract implementation on single main consultancy assignment started in Sept 2012. Increased of the threshold pass rate of the Percentage Value 50.00 50.00 75.00 Financial Certification examination for market Date 15-May-2011 24-Jun-2011 participants Comments Page 3 of 5 The World Bank Report No: ISR9061 Consumer Awareness of Capital Market Number Value 24.00 24.00 45.00 Instruments Date 15-May-2011 24-Jun-2011 Comments Data will be updated based Public Disclosure Copy on annual capital market survey to be conducted under the consultancy assignment Data on Financial Performance (as of 11-Dec-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P120321 IBRD-80240 Effective 17-Mar-2011 22-Sep-2011 07-Nov-2011 31-Dec-2015 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120321 IBRD-80240 Effective USD 12.00 12.00 0.00 1.99 10.01 17.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None Page 4 of 5 The World Bank Report No: ISR9061 Restructuring History There has been no restructuring to date. Public Disclosure Copy Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5