The World Bank Access to Finance for Micro, Small and Medium-Sized Enterprises Project (P163015) REPORT NO.: RES39418 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ACCESS TO FINANCE FOR MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES PROJECT APPROVED ON FEBRUARY 15, 2018 TO MINISTRY OF FINANCE FINANCE, COMPETITIVENESS AND INNOVATION AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Nathan M. Belete Regional Director: Elisabeth Huybens Practice Manager/Manager: Consolate K. Rusagara Task Team Leader(s): Laurent Gonnet The World Bank Access to Finance for Micro, Small and Medium-Sized Enterprises Project (P163015) I. BASIC DATA Product Information Project ID Financing Instrument P163015 Investment Project Financing Original EA Category Current EA Category Financial Intermediary Assessment (F) Financial Intermediary Assessment (F) Approval Date Current Closing Date 15-Feb-2018 31-Jan-2023 Organizations Borrower Responsible Agency Ministry of Finance Unidade de Gestao de Projectos Especiais Project Development Objective (PDO) Original PDO The objective of the Project is to increase access to finance to MSMEs. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-61820 15-Feb-2018 22-Mar-2018 20-Jun-2018 31-Jan-2023 15.00 5.33 9.32 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Access to Finance for Micro, Small and Medium-Sized Enterprises Project (P163015) The implementation status is currently satisfactory. The Partial Credit Guarantee company, Pró-Garante, has finished the recruitment of supporting staff and is preparing for the launch of operations and issuance of the first guarantees in the first quarter of '20. The second and last capitalization of the guarantee fund, category 4 disbursement, is expected to occur by the end of the current calendar year. Regarding the second component, the program for technical assistance to MSMEs, dubbed Pró-Crédito and ran by the public MSME support agency Pro-Empresa, has been fully designed and the operating manual has been agreed and approved. Upon completion of the management information system, Pro-Empresa will start deploying matching grants for business development services to selected MSMEs in the first quarter of '20. As for the third and final component to enhance credit information systems, the Bank of Cabo Verde, based on a preliminary gap assessment and with agreement from the World Bank, has enhanced the scope of works to develop a wholly new credit registry central. A qualified international vendor has been identified for this purpose; the negotiated financial proposal is significantly higher than the originally foreseen budget, thus triggering this restructuring. The proposed restructuring, shifting USD 1.2 million from Component 2 to Component 3 inside the same category of disbursement, will allow for the immediate contracting of the development of the new credit registry, a task which will span 24 months between design, test, launch and maintenance support. The reduction in resources in Component 2 will not affect short and medium-term implementation nor will it endanger the targets set out in the results framework as the Government has committed to finding additional sources of funding to plug the gap. II. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-61820- Gds, NCS,CS 848,000.00 0.00 848,000.00 100.00 100.00 001 PA(i) to A(iii) Currency: Gds,NCS,CS,IOC( XDR 2,261,000.00 181,713.55 2,261,000.00 100.00 100.00 excep PA) First capitaliz 3,533,000.00 3,504,104.46 3,533,000.00 100.00 100.00 PCG Funder P(iv) Second capitaliz 3,533,000.00 0.00 3,533,000.00 100.00 100.00 PCG Funder P(iv) Refund of PPA 425,000.00 337.39 425,000.00 The World Bank Access to Finance for Micro, Small and Medium-Sized Enterprises Project (P163015) Total 10,600,000.00 3,686,155.40 10,600,000.00