Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) Morocco Microfinance Development Project (P144500) MIDDLE EAST AND NORTH AFRICA | Morocco | Finance & Markets Global Practice | Recipient Executed Activities | Specific Investment Loan | FY 2014 | Seq No: 5 | ARCHIVED on 10-Apr-2016 | ISR22766 | Implementing Agencies: Ministry of Economy and Finance Key Dates Key Project Dates Bank Approval Date:27-Jun-2013 Effectiveness Date:25-Jul-2013 Original Closing Date:31-Jan-2018 Revised Closing Date:31-Jan-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project objective is to promote access to finance to low income households and micro and small enterprises through the promotion of a sustainable and inclusive microfinance sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Unsatisfactory Implementation Status and Key Decisions This project, financed under the Middle East and North Africa Transition Fun (Deauville), became effective upon signing of the Grant Agreement on July 25, 2013. The project aims to improve access to finance for low-income households and micro and small businesses through the development of an inclusive and sustainable microfinance sector. Overall the project is advancing in a moderately satisfactory manner. The project implementation unit (PIU) has launched activities across the projects three primary pillars: i) strengthening the legal, regulatory, tax, and governance framework for microfinance; ii) strengthening market infrastructure, product innovation, and funding sources for microfinance; iii) and integrating microfinance into a national financial inclusion strategy. Key activities underway include the modernization of the legal, regulatory and institutional of 4/10/2016 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) the Moroccan Microfinance Sector, supporting the commercialization of products of microenterprises, intensifying national financial education initiatives, and developing and disseminating a national financial inclusion strategy. 4/10/2016 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  Moderate  --  Substantial Comments The overall risk rating has been upgraded to substantial to reflect implementing agency risks, particularly the risk that the Ministry of Economy and Finance may not have the necessary dedicated resources to act as primary implementing agency, and its capacity to implement the project might be hampered due to the lack of experience of managing World Bank grants (procurement and financial management) and technical expertise in microfinance. The financial management rating during the December 2015 supervision mission (extended findings captured in the attached aide memoire) was downgraded to moderately unsatisfactory given the weak disbursement rate, the failure to submit an interim financial statement for the first half of 2015 (which has since been rectified), the inactivity of the designated account for 19 months (which has also now been rectified), and 4/10/2016 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) the lack of a financial management specialist (recruitment in process; the FM and procurement consultants left the project in late 2015). Disbursement forecasting is set to increase to 11,300,000 million dirhams by end 2016, representing 27.6% of the grant. The procurement assessment (captured in detail in the aide memoire) also noted significant procurement delays, although notes excellent collaboration between the PIU and the Direction des Affaires Administratives et Generales (DAAG) in conforming to World Bank procurement procedures. Further hands on technical assistance to the PIU by the Bank is necessary in order to accelerate project implementation. The World Bank team has agreed with the PIU to accelerate technical and administrative assistance under project supervision. This includes responding to requests from the PIU within 24 hours and providing non-objection responses within 48 hours. The World Bank team will further assist with producing terms of references and providing quality control on documents. A workshop with the PIU will be organized on procurement and financial management procedures in the coming months. Results Project Development Objective Indicators PHINDPDOTBL % of Adults (and women) with an account at a formal financial institution, including low income households (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 39.00 0.00 41.00 51.00 Date 01-Dec-2012 06-Dec-2013 18-Feb-2016 01-Feb-2018 Comments %women indicators are as follows: - Baseline = 21% - Current = TBD (2016 findex survey) PHINDPDOTBL No of active loan accounts -Microfinance (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 804000.00 863071.00 883852.00 1200000.00 Date 01-Dec-2012 31-Dec-2014 18-Feb-2016 01-Feb-2018 PHINDPDOTBL Percentage of project-supported institutions that are reporting on this indicator (Percentage, Core Supplement) 4/10/2016 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 100.00 100.00 100.00 PHINDPDOTBL Portfolio at Risk - Microfinance (Percentage, Core) Baseline Actual (Previous) Actual (Current) End Target Value 6.70 3.51 3.77 6.40 Date 01-Dec-2012 31-Dec-2014 18-Feb-2016 01-Feb-2018 PHINDPDOTBL Percentage of project-supported institutions that are reporting on this indicator (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 100.00 100.00 100.00 PHINDPDOTBL Outstanding Microfinance Loan Portfolio (Amount(USD), Core) Baseline Actual (Previous) Actual (Current) End Target Value 550.00 551.00 604.80 590.00 Date 01-Dec-2012 31-Dec-2014 31-Dec-2014 01-Feb-2018 PHINDPDOTBL Percentage of project-supported institutions that are reporting on this indicator (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 100.00 100.00 100.00 4/10/2016 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) Overall Comments Intermediate Results Indicators PHINDIRITBL Strengthening Institutional, Legal, Regulatory, Tax and Governance Framework for Microfinance: Regulatory Studies Completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 01-Dec-2012 05-Dec-2014 18-Feb-2016 01-Feb-2018 PHINDIRITBL Strengthening Institutional, Legal, Regulatory, Tax and Governance Frameowrk for Microfinance: Number of operational and regulatory initiatives implemented by BAM and other key stakeholders (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 3.00 Date 01-Dec-2012 05-Dec-2014 18-Feb-2016 01-Feb-2018 PHINDIRITBL Strengthening Market infrastructure, product innovation and funding sources for microfinance: Number of alternative microfinance products developed and piloted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 01-Dec-2012 05-Dec-2014 18-Feb-2016 01-Feb-2018 PHINDIRITBL Strengthening market infrastructure, product innovation and funding sources for microfinance: Number of Trainings to Micro Entrepreneurs Delivered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1570.00 2260.00 1100.00 Date 01-Dec-2012 05-Dec-2014 18-Feb-2016 01-Feb-2018 4/10/2016 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) PHINDIRITBL Integrating Microfinance into a national financial inclusion strategy: Financial Inclusion Stock-Taking Completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Dec-2012 05-Dec-2014 18-Feb-2016 09-May-2016 PHINDIRITBL Microfinance into a national financial inclusion strategy: Evaluation Completed of Existing Financial Inclusion Integrating Measures (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Dec-2012 05-Dec-2014 18-Feb-2016 30-Dec-2016 PHINDIRITBL IntegratingMicrofinance into a national financial inclusion strategy: Number of Beneficiaries Receiving Financial Literacy Training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6000.00 8618.00 8618.00 14000.00 Date 01-Dec-2012 05-Dec-2014 18-Feb-2016 01-Feb-2018 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P144500 TF-15084 Effective USD 4.90 4.90 0.00 0.50 4.40 10% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P144500 TF-15084 Effective 25-Jul-2013 25-Jul-2013 25-Jul-2013 31-Jan-2018 31-Jan-2018 4/10/2016 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/10/2016 Page 8 of 8 Public Disclosure Copy