The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) Access to Finance for MSMEs (P152307) LATIN AMERICA AND CARIBBEAN | Jamaica | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 3 | ARCHIVED on 04-Jun-2019 | ISR36792 | Implementing Agencies: Ministry of Finance and the Public Service, The Development Bank of Jamaica Key Dates Key Project Dates Bank Approval Date: 29-Jan-2018 Effectiveness Date: 29-May-2018 Planned Mid Term Review Date: 01-Jun-2020 Actual Mid-Term Review Date: -- Original Closing Date: 30-Jan-2023 Revised Closing Date: 30-Jan-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve access to finance for micro, small, and medium enterprises (MSMEs). Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Enhancement of the Credit Enhancement Facility (CEF):(Cost $5.55 M) Establishment of an SME Fund:(Cost $7.00 M) Improvement of enabling environment for access to finance and Business Development Services for MSMEs:(Cost $1.56 M) Project management:(Cost $0.85 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project activities are on track and progress has been made under each component as described below: Component 1-Enhancing the Credit Enhancement Facility (CEF) for guarantees to MSMEs: DBJ has finalized the development of the business plan and financial model for the CEF, on which the WBG provided comments. TOR for marketing and awareness are being finalized and training is under way. Component 2-Supporting the establishment of a SME Fund for risk capital financing to SMEs: Demand-side analysis has been completed while assessment of the taxation regime for PE/VC and of the legal and regulatory environment are being finalized. The WBG team and DBJ are closely supervising the quality of the delivered outputs. 6/4/2019 Page 1 of 5 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) Component 3-Improvement of enabling environment for access to finance and Business Development Services for MSMEs: Feasibility and market assessments of the factoring sector have been delivered while the consultancy to implement the recommendations is under way. In terms of the business development services activities, a consultancy for the assessment of DBJ's capacity development programs is also under way. The WBG team is closely monitoring developments. Fiduciary: DBJ has a well-established financial management system in place, which has enabled the team to provide the project’s first Interim Financial Report (IFR) in a timely manner. This IFR as at December 31, 2018 was deemed reliable and satisfactory to the Bank, as all relevant information required, were provided and reconcile to the Bank’s records per Client Connection. No significant deficiencies were noted in the internal controls structure of DBJ, therefore the project’s FM implementation and status results (ISR) rating is Satisfactory. The first financial management review will be conducted during May 2019. On the procurement side, the current procurement plan comprises twenty-two contracts to be procured, signed and executed over the project implementation with the loan proceeds. DBJ has already started nine of those twenty-two planned procurement processes, which are under implementation. Regarding these nine ongoing procurement processes, five are delayed. Due to these delays, the procurement rating was downgraded from Satisfactory to Moderately Satisfactory. Safeguards: The client (DBJ) is conscientiously implementing the ESMF, with the support of a dedicated environmental and social specialist shared with the Foundations for Competitiveness and Growth project (P147665). Activities related to Financial Intermediaries outreach and training in calendar year 2019 are progressing as planned and are expected to be completed by June 2019. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial 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 Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes The PDO is to improve access to finance for micro, small and medium enterprises (MSMEs) IN00694781 ►Number of SMEs getting access to risk capital through the SME Fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/4/2019 Page 2 of 5 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) Value 0.00 0.00 0.00 15.00 Date 29-Jan-2018 30-Sep-2018 29-Mar-2019 30-Jan-2023 IN00694782 ►Number of guarantees issued for MSME loans through the improved CEF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 78.00 72.00 162.00 1,178.00 Date 29-Jan-2018 30-Sep-2018 29-Mar-2019 30-Jan-2023 Intermediate Results Indicators by Components Enhancement of the Credit Enhancement Facility (CEF) IN00694785 ►Improvements of the DBJ's institutional capacity in credit risk management of AFIs (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The DBJ has limited The DBJ has The DBJ has limited The DBJ has limited institutional capacity to adequate systems and institutional capacity to institutional capacity to scale sustainably the expertise in place to Value scale sustainably the scale sustainably the CEF's operations but a scale and manage the CEF's operations. CEF's operations. training program is CEF, in a sustainable being designed. manner. Date 29-Jan-2018 30-Sep-2018 29-Mar-2019 30-Jan-2023 IN00694788 ►Volume of guarantees provided to MSME loans (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4,412,800.00 4,056,008.00 7,942,728.00 135,954,685.00 Date 29-Jan-2018 30-Sep-2018 29-Mar-2019 30-Jan-2023 The amount in local currency is 1,063,660,880 Comments: Establishment of an SME Fund IN00694784 ►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 29-Jan-2018 30-Sep-2018 29-Mar-2019 30-Jan-2023 IN00694787 ►Volume of risk capital provided to SMEs (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target 6/4/2019 Page 3 of 5 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) Value 0.00 0.00 0.00 11,500,000.00 Date 29-Jan-2018 30-Sep-2018 29-Mar-2019 30-Jan-2023 Improvement of enabling environment for access to finance and Business Development Services for MSMEs IN00694783 ►Percentage of beneficiaries that feel project activities reflected their needs (Citizen Engagement Indicator) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 29-Jan-2018 30-Sep-2018 29-Mar-2019 30-Jan-2023 IN00694786 ►New business development service platform operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Jan-2018 30-Sep-2018 29-Mar-2019 30-Jan-2023 IN00694789 ►Draft factoring and/or leasing legal and regulatory amendments submitted for approval (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Jan-2018 30-Sep-2018 29-Mar-2019 30-Jan-2023 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P152307 IBRD-88220 Effective USD 15.00 15.00 0.00 0.91 14.09 6.1% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152307 IBRD-88220 Effective 29-Jan-2018 02-Mar-2018 29-May-2018 30-Jan-2023 30-Jan-2023 Cumulative Disbursements 6/4/2019 Page 4 of 5 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/4/2019 Page 5 of 5