Public Disclosure Copy The World Bank Implementation Status & Results Report Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) AFRICA | Somalia | Trade & Competitiveness Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 3 | ARCHIVED on 28-Jun-2017 | ISR27564 | Implementing Agencies: Government of Somaliland Ministry of Planning and Development, Ministry of Finance, Federal Republic of Somalia Ministry of Finance Key Dates Key Project Dates Bank Approval Date:20-Jan-2016 Effectiveness Date:16-May-2016 Planned Mid Term Review Date:18-Dec-2017 Actual Mid-Term Review Date:-- Original Closing Date:30-Apr-2019 Revised Closing Date:30-Apr-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objectives are to: (i) improve the enabling environment for private and financial sector development; and (ii) catalyze private investment and job creation. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Strengthening Core Economic Institutions:(Cost $8.00 M) Component 2: Expanding Economic Opportunities:(Cost $18.50 M) Component 3: Program Management:(Cost $2.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Satisfactory  Moderately Unsatisfactory Overall Risk Rating  High  High 6/28/2017 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) Implementation Status and Key Decisions Overall project implementation for the SCORE Program has been downgraded to Moderately Satisfactory from Satisfactory during the second ISM in September 2016. This is because the main instrument to achieve the second part of SCORE’s project development objective (PDO) to “catalyze private investment and job creation in key productive and service sectors”, the matching grant fund or SBCF, has faced significant disbursement delays due mainly to difficulties in getting the SME Advisory Panels (SAPs) functional in both Garowe and Mogadishu. SAPs play a key advisory role in the grant award process and so the rate of progress of the SBCF is tied to SAPs functioning effectively. Implementation status and key decisions at Somaliland level Component 1 (Strengthening Core Economic Institutions) Component 1a: Financial Sector Regulation and Supervision: This work is substantially delayed due procurement processes. While implementation activities commenced promptly in June 2016 consultancy services are only expected to commence during May 2017. Component 1b: Improving the Investment Climate: The company law is yet to be enacted and the OSS is still not operational. There is need to speed up the remaining steps towards enactment of the company law. As a transition measure, subsequent work will also explore improvements that can be accomplished in business registration process and use of the OSS even before the law is passed. With regard to the OSS, Somaliland authorities are looking at low cost hosting options for the OSS back office and embedding human resource needs and OSS operational costs in the national budget thereby ensuring operational sustainability. .Component 2 (Expanding Economic Opportunities): Sub-Component 2a: Somali Business Catalytic Fund (SBCF): There is need to sustain the working of the SAP in Somaliland to ensure that the SBCF is able to move quickly and disburse funds to the final shortlist of applicants. Discussion are underway to support speedier processing of grant awards. SBCF and SMEF are effective potential mechanisms for drought-related projects because of their ability to react quickly with funding: a number of projects could be envisaged for support on a pilot basis to test their potential for impact and upscaling. If the SBCF were to support a special window focused on drought mitigation, SMEF could source expertise in this area to provide the needed technical assistance. Discussions are going ahead on how to target round two projects in this area and identify possible pilot interventions areas and approaches that might be useful for supporting recovery efforts, livelihoods and building resilience. Sub-Component 2b: Small and Medium Enterprise Facility (SMEF): Year one targets for SMEF are expected to be met, although there is a need to accelerate support services focused on skills development/TVET in order to reach 200 individuals before the end of year one of implementation (June 2017). Component 3 (Project Management): Staffing is in place, office setup is underway, However, there has been delays in procurement processes and PIU to finalize revised procurement plan for second batch of prioritized implementation activities as soon as possible. Implementation status and key decisions at FGS (also including Puntland) level Component 1 (Strengthening Core Economic Institutions) Component 1a: Financial Sector Regulation and Supervision: Due to a growing financial sector program, administrative capacity at CBS is strained and requires closer matching of capacity. There has been substantial delays to commence implementation activities in Puntland as well as consulting services for market analysis of the demand for and supply of financial services in Somalia. The TORs for the assignment on harmonizing financial sector legal, regulatory and supervisory frameworks need to be completed by State Bank of Puntland (SBP) and CBS and the PIU procurement process and draft contract for market analysis assignment needs to be submitted to the World Bank. Concurrently, CBS needs to urgently commence (i) legal/regulatory diagnostics relating to financial sector laws including the Financial Institutions Law, development of roadmaps and action plans for long run financial sector development; (ii) follow up the high level policy dialogue already commenced with the Somali Bankers Association (SBA) on payment systems ; (iii) complete implementation of the core-banking and accounting system. Component 1b: Improving the Investment Climate: Implementation progress is dependent on FGS decisions which are yet to be made relating streamlining and consolidation of business registration process. There is need to consolidate legal provisions governing business registration that are currently spread over a series of ministerial directives. Agreed actions include passage of a Ministerial Decree on transitional arrangements enabling OSS operations and consolidation/streamlining of business registration process pending passage of the Company Law. Component 1c:Developing the Port Sector: Contract for consultancy services was awarded and signed for a port sector review, master planning and assessment of private sector participation options FGS will seek added technical assistance support of the World Bank on the ports component on 6/28/2017 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) aspects relating to contract management and quality review of outputs facilitation of policy dialogues and technical workshops reviewing outputs, study tours and other learning events. Component 2 (Expanding Economic Opportunities - Catalytic Fund & SME Facility): The grant approval progress has been substantially delayed due to lack of formation of the SAPS and inability of the SAP members to convene Discussions are underway to support speedier grant processing with the authorities in Garowe and Mogadishu. SBCF and SMEF are effective potential mechanisms for drought-related projects because of their ability to react quickly with funding: a number of projects could be envisaged for support on a pilot basis to test their potential for impact and upscaling. If the SBCF were to support a special window focused on drought mitigation, SMEF could source expertise in this area to provide the needed technical assistance. Discussions are going ahead on how to target round two projects in this area and identify possible pilot interventions areas and approaches that might be useful for supporting recovery efforts, livelihoods and building resilience. Year one targets for SMEF are expected to be met, though there is a need to accelerate support services focused on skills development/TVET in order to reach 200 individuals before the end of year one of implementation (June 2017).. Discussions are ongoing to address the underrepresentation of women owned enterprises shortlisted for grants by the SBCF and resulting low representation of women receiving linked SMEF services and how to assure on special consideration for SMEs run by women (and youth) and businesses employing a high proportion of women. Possible approaches could include channeling outreach, communication and partnership through women’s professional organizations, and leveraging lessons from the STEP pilot in Somaliland on potential for upscaling to other areas in Somalia if additional resources are committed. Component 3 (Project Management): Delays in procurement processing and payments within FGS continue to be a major implementation bottlenecks- also impacting on the operations in Puntland. Procurement plan related to Puntland is outstanding. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  High  High  High Macroeconomic  High  High  High Sector Strategies and Policies  Moderate  Moderate  Moderate Technical Design of Project or Program  Substantial  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  High  High  High Fiduciary  High  High  High Environment and Social  Moderate  Moderate  Moderate Stakeholders  Moderate  Moderate  Substantial Other  High  High  High Overall  High  High  High Results Project Development Objective Indicators 6/28/2017 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) PHINDPDOTBL  Number of recommended laws/regulations/amendments/codes enacted or policies adopted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDPDOTBL  Number of recommended laws/regulations/amendments/codes enacted in Somaliland (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 9.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDPDOTBL  Private Capital Mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,000,000.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDPDOTBL  Total number of direct jobs created in enterprises supported by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,000.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDPDOTBL  Total number of direct jobs for women (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 650.00 6/28/2017 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDPDOTBL  Total number of direct jobs for youth (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 800.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 Overall Comments While SCORE is expected to meet end target indicators, implementation activities continue to lag due to continuing delays in PIU logistics and contracting of firms/consultants as well as weaknesses in SAP functioning. This performance outturn will be factored into a formal review of the results indicators at the early mid-term review (originally planned for December 2017) Intermediate Results Indicators PHINDIRITBL  Total annual number of actionable on-site and off-site examination reports issued (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDIRITBL  Total annual number of actionable on-site and off-site examination reports issued by the Bank of Somaliland(Number - Sub- Type: Breakdown) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 6/28/2017 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) PHINDIRITBL  Annual number of diagnostic reports on legal, regulatory, institutional and infrastructure setting aimed at supporting orderly financial sector development (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDIRITBL  Annual number of diagnostic reports on legal, regulatory, institutional and infrastructure setting aimed at supporting orderly financial sector development issued by Bank of Somaliland (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDIRITBL  Number of new business licenses issued under the Licensing Act during the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 400.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDIRITBL  Number of new business licenses issued under the Licensing Act during the Project in Somaliland (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 6/28/2017 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) PHINDIRITBL  Implementation of a Management Information System in Mogadishu Port (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDIRITBL  Total annual increase in revenue of firms supported by SBCF and SMEF that received training and advisory services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDIRITBL  Number of individuals receiving subsidized BDS or advice financed by the SMEF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 339.00 1,000.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 PHINDIRITBL  Number of individuals receiving subsidized TVET or other forms of training financed by the SMEF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 56.00 1,500.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 6/28/2017 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) PHINDIRITBL  Citizen engagement: Proportion of STEP beneficiaries who consider that design and/or implementation of project subjected to consultation is responsive to their view (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 15-Apr-2016 01-Nov-2016 31-Mar-2017 30-Apr-2019 Overall Comments While SCORE is expected to meet end target indicators, implementation activities continue to lag due to continuing delays in PIU logistics and contracting of firms/consultants as well as weaknesses in SAP functioning. Delays in SAP functioning has also impacted the setting of baselines for firms supported by SBCF and SMEF as the process of identifying grantees is not yet completed. This performance outturn will be factored into a formal review of the results indicators at the early mid-term review (originally planned for December 2017) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P152241 TF-A1688 Effective USD 3.30 3.30 0.00 1.20 2.10 36% P152241 TF-A1698 Effective USD 1.50 1.50 0.00 0.41 1.09 27% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152241 TF-A1688 Effective 20-Jan-2016 15-Feb-2016 16-May-2016 30-Apr-2019 30-Apr-2019 P152241 TF-A1698 Effective 20-Jan-2016 15-Feb-2016 27-May-2016 30-Apr-2019 30-Apr-2019 Cumulative Disbursements 6/28/2017 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Somali Core Economic Institutions and Opportunities Program (SCORE) (P152241) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/28/2017 Page 9 of 9 Public Disclosure Copy