The World Bank Implementation Status & Results Report SME Competitiveness Project (P147705) SME Competitiveness Project (P147705) EUROPE AND CENTRAL ASIA | Kazakhstan | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 9 | ARCHIVED on 30-Jun-2019 | ISR37906 | Implementing Agencies: REPUBLIC OF KAZAKHSTAN, Ministry of National Economy, Ministry of National Economy Key Dates Key Project Dates Bank Approval Date: 02-Mar-2015 Effectiveness Date: 26-Feb-2016 Planned Mid Term Review Date: 12-Mar-2018 Actual Mid-Term Review Date: 14-May-2018 Original Closing Date: 30-Jun-2020 Revised Closing Date: 28-Feb-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to enhance the competitiveness and capacity of targeted small and medium sized enterprises in Kazakhstan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name 1. SME Capacity Building Program:(Cost $2.80 M) 2. SME Linkages in Competitive Sectors:(Cost $11.60 M) 3. Impact Evaluations & Monitoring:(Cost $2.20 M) 4. Project Management:(Cost $1.30 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The restructuring completed on December 28, 2018 (reduction of loan amount to US$18 million and extension of the closing date to February 28, 2021) has helped re-focus and streamline the project but has not yet led to significant disbursement pickup. The signing of new contracts has picked up and disbursement is anticipated to increase by the end of 2019, with several large contracts recently signed or expected to be signed in the third quarter of 2019. As of May 2019, the disbursed amount is 21% (out of 18 million), with expected disbursement by end of 2019 to reach 39,6%. The management in the Ministry of National Economy and key counterparts had been recently changed (or even reorganized as in the case of Kazakhstan Industry Development Institute), raising the need for the Bank team to meet the new counterparts and reconfirm their commitment to the project and the components. While the cluster activities have achieved their objectives, the rest of the activities supported by the project are yet 6/30/2019 Page 1 of 7 The World Bank Implementation Status & Results Report SME Competitiveness Project (P147705) to yield results. Serious and focused efforts on behalf of all project stakeholders will be needed in the remaining time to make sure the project achieves its development objective. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Substantial Substantial Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial High High Environment and Social Low Low Low Stakeholders Low Low Low Other -- Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Number of SMEs who become accredited suppliers to large companies IN00724312 ►Number of SMEs who become accredited suppliers to large companies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 31-Dec-2014 06-Sep-2018 31-May-2019 28-Feb-2021 This PDO indicator is only expected to be achieved in 2020 since the work on supplier development under subcomponent 2.1 has not yet begun. NADLoc and MNE are in agreement that with the hire of a Comments: Consultant as per Procurement Plan this can be met by 2020. Number of Cluster Competitiveness Action Plans for which implementation has begun IN00724280 ►Number of Cluster Competitiveness Action Plans for which implementation has begun (Number, Custom) 6/30/2019 Page 2 of 7 The World Bank Implementation Status & Results Report SME Competitiveness Project (P147705) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6.00 6.00 Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 Given the progress on the cluster work, MNE and the PIU have revised the number of cluster action plans under implementation from 4 to 6 in 2020. In 2018 two actions plans are expected to begin Comments: implementation, with two more in 2019 and a final two - in 2020. Percentage of participating SMEs reporting improved management and business practices IN00724311 ►Percentage of participating SMEs reporting improved management and business practices (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 the target of 75% is expected to be met in 2019. The impact evaluation assessment under component 3 Comments: will gather the data needed for this indicator. Intermediate Results Indicators by Components 1. SME Capacity Building Program IN00724313 ►Number of local SME Advisors trained to undertake SME capacity building based on an established competency framework (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 150.00 Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 In the revised results framework, MNE proposes to reduce the end target of trained local SME advisors from 750 to 150. This is consistent with the scaling down of component 1. It is expected that the target of 150 will be reached in 2019, once the training of advisors has been completed. Comments: In addition, MNE proposes to reduce the end target of women SME advisors trained from 50% to 30%. However the original targets will remain until the formal restructuring is completed. IN00724316 Percent of Women Advisors trained (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 IN00724317 ►Percent of training participants who found the training offered as effective and useful to them (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 99.00 66.00 6/30/2019 Page 3 of 7 The World Bank Implementation Status & Results Report SME Competitiveness Project (P147705) Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 The end target of 66% is considered achievable and remains unchanged. This will be measured once Comments: training events for advisors and SMEs are completed under components 1 and 2. IN00724320 ►Number of master trainers, assessors, instructional designers developed and trained in global best practice (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 MNE proposes to keep the end target at 40 master trainers under component 1, with the expectation that Comments: 23 will be trained in 2019 and a further 17 - in 2020. 2. SME Linkages in Competitive Sectors IN00724314 ►Number of SMEs who are in the process of becoming "accredited suppliers" to large companies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200.00 Date 31-Dec-2014 22-Nov-2016 31-May-2019 28-Feb-2021 MNE proposes to reduce the end target indicator from 200 to 100 SMEs, who are judged to be in the process of becoming accredited suppliers to large companies. It is expected that with the work by Comments: NADLoC and the consultant to be hired the target will be met in 2019. IN00724318 ►Number of Cluster Competitiveness Action Plans that have been developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 6.00 Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 The end target for this indicator remains unchanged. The work on cluster competitiveness plans has Comments: begun and it is expected that 2 will be approved in 2018, with a further two in 2019 and 2020 each. IN00724321 ►Strategic assessment for supply chain financing program has been completed, including recommendations on design, partners, structure, location, and regulatory requirements. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Strategic assessment completed with clear and actionable The consultant is Activity is new and no The consultant is recommendations on selected and the Value prior experience is selected and the contract the next steps for contract signing is in available in the country signing is in progress development of supply progress chain financing in the country and factoring program installed. Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 6/30/2019 Page 4 of 7 The World Bank Implementation Status & Results Report SME Competitiveness Project (P147705) This indicator measures progress on subcomponent 2.3. With the recent conclusion of the contracting of a consultant, it is expected that in 2018 an interim assessment will be completed and a workshop/training Comments: held with relevant stakeholders to gather inputs and define remaining areas of inquiry. IN00724323 ►Value of increased sales of SMEs facilitated through participation in the project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25,000,000.00 Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 This indicator pertains to the supplier development activities and the value of increased sales of SMEs to Comments: large companies. It remains unchanged and is expected to be met by 2019. IN00724324 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 230.00 3,500.00 Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 These are the direct project beneficiaries under components 1 and 2. The revised results framework indicates 50 SMEs as of 2017 (under the clusters) and going up to 70 in 2018. Significant increases are expected in 2019 (1200) and 2020 (5000) as the capacity building for SMEs reaches its full scale. Comments: MNE also proposes to decrease the end target for female beneficiaries from 50% to 30%. In 2017, it was estimated that 15% of direct project beneficiaries were women (as SME owners or managers). IN00724325 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 43.50 30.00 3. Impact Evaluations & Monitoring IN00724315 ►Number of impact evaluations of SME interventions conducted or underway (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 3.00 Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 MNE is proposing to revise the end target from 6 to 3 impact evaluations, which is in line with the downsizing of activities under component 3. These are expected to be completed in 2019, with a Comments: consultant being hired for this work now. IN00724319 ►Number of government and associated professionals/staff receiving capacity building through trainings, workshops, study visits, etc. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 67.00 125.00 6/30/2019 Page 5 of 7 The World Bank Implementation Status & Results Report SME Competitiveness Project (P147705) Date 31-Dec-2014 09-Nov-2018 31-May-2019 28-Feb-2021 This indicator is left unchanged, with an end target of 125. As of now, the number of government and associated professional staff to have received training through workshops and study tours (e.g., for the Comments: clusters) is 30, and expected to reach 40 in 2018 and 125 in 2019. IN00724322 ►Beneficiaries reporting that working group decisions represented their views (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 31-Dec-2014 31-Dec-2018 31-May-2019 28-Jan-2021 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P147705 IBRD-84770 Effective USD 40.00 18.00 22.00 4.00 14.00 22% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P147705 IBRD-84770 Effective 02-Mar-2015 20-Jul-2015 26-Feb-2016 30-Jun-2020 28-Feb-2021 Cumulative Disbursements 6/30/2019 Page 6 of 7 The World Bank Implementation Status & Results Report SME Competitiveness Project (P147705) Restructuring History Level 2 Approved on 28-Dec-2018 Related Project(s) There are no related projects. 6/30/2019 Page 7 of 7