Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PNG - Small and Medium Enterprise Access to Finance Project (P120707) EAST ASIA AND PACIFIC | Papua New Guinea | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2011 | Seq No: 13 | ARCHIVED on 18-Jun-2018 | ISR32947 | Implementing Agencies: Department of Commerce and Industry, Department of Treasury Key Dates Key Project Dates Bank Approval Date:03-May-2011 Effectiveness Date:15-Sep-2011 Planned Mid Term Review Date:28-Feb-2014 Actual Mid-Term Review Date:28-Oct-2013 Original Closing Date:31-Dec-2024 Revised Closing Date:31-Dec-2024 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed development objective of this project is to facilitate access to sustainable credit for small and medium enterprises and thus contribute to incremental growth of SME employment and income. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Risk Share Facility:(Cost $11.90 M) Performance-based TA to participating financial intermediaries:(Cost $2.95 M) TA to enhance SME Capacity:(Cost $5.03 M) TA to the Department of Commerce and Industry:(Cost $6.62 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 6/18/2018 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Implementation Status and Key Decisions he Project became effective on September 15, 2011. All conditions for withdrawal of IDA credit were met for all categories specified in the Financing Agreement as of March 12, 2012 with IDA issuing confirmation letters to the GoPNG. The 1st RSF with BSP has officially been terminated as of September 2017 with satisfactory results. 2nd RSF implementation, which is linked to PDO results indicators, has been delayed. GoPNG and IDA agreed to prepare for restructuring the 2nd RSF component with new financing instruments for SMEs, esp those in agriculture, and strengthening a sustainable ecosystem for SME Finance in PNG. GoPNG is to propose restructuring plan within the next 3 months. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Substantial  Substantial Environment and Social  --  Substantial  Moderate Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Increase flow of credit to SMEs (in PNG Kina million) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 492.00 114.60 250.00 Date 01-Aug-2011 30-Sep-2016 29-Sep-2017 29-Jun-2018 Comments 6/18/2018 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) The BSP reported amount has been in PGK million. Exchange rate: 1 USD = PGK 3.2 Total accumulative committed amount under the RSF reached PGK 114.6 million as of Sept 2017 (at closing of RSF). 2012 Total committed under RSF: PGK 7.7 million PHINDPDOTBL  Number of new SME loans (under BSP RSF.) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1,828.00 1,828.00 1,000.00 PHINDPDOTBL  Loans to business owned by women only and women as principal partners (Number of loans) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 262.00 262.00 100.00 PHINDPDOTBL  Loans to business owned by women only and women as principal partner (in PGK million) (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 25.00 25.00 15.00 PHINDPDOTBL  Increase numbers of formal sector SMEs (incl. women managed) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 45.00 50.00 50.00 54.00 Date 01-Jan-2013 30-Dec-2016 29-Dec-2017 29-Jun-2018 6/18/2018 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Comments IPA data doesn't provide SME registration directly. Estimate based on SME definition by DCI. IPA data as of Dec 2017. To be further verified during final beneficiary survey PHINDPDOTBL  incremental employment generated by SMEs participating in RSF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 500.00 2,149.00 2,149.00 600.00 Date 28-Sep-2012 30-Sep-2016 27-Sep-2016 30-Sep-2016 PHINDPDOTBL  Incremental SME revenue generated by SMEs participating in RSF (in PGK) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 -- -- 25.00 Date 28-Sep-2012 -- -- 30-Sep-2016 Comments No data available from BSP reports. To collect during beneficiary survey planned for July - Oct 2018 Overall Comments Intermediate Results Indicators 6/18/2018 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PHINDIRITBL  Return on assets (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.50 2.00 2.00 1.50 Date 31-Aug-2011 30-Dec-2016 29-Dec-2017 30-Dec-2016 Comments Source: BSP Annual Reports PHINDIRITBL  Improved SME managerial and financail skills - # trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 774.00 774.00 640.00 Date 31-Aug-2011 13-Dec-2016 13-Dec-2016 31-Dec-2017 PHINDIRITBL  Numbers of women in SMEs trained (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 391.00 391.00 300.00 PHINDIRITBL  % trainees obtaining the loans (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 20.00 60.00 6/18/2018 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PHINDIRITBL  Improved GoPNG capacity to supoport SME sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 2nd SME Survey, project beneficiary survey, and review of RSF and other SME 2nd SME Survey, finance options project beneficiary Final Survey planned to inform survey, and review of Value Baseline survey and M&E government of the RSF and other SME Reports demand of SMEs, finance options impact of the RSF commissioned project, and demand for other financing instruments by SMEs Date 28-Feb-2014 01-Dec-2017 29-Jun-2018 28-Dec-2018 PHINDIRITBL  Training of provincial DCI officials (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 36.00 36.00 40.00 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P120707 IDA-49280 Effective USD 21.91 21.91 0.00 12.37 7.98 61% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120707 IDA-49280 Effective 03-May-2011 14-Jun-2011 15-Sep-2011 31-Dec-2024 31-Dec-2024 6/18/2018 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/18/2018 Page 7 of 7 Public Disclosure Copy