The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) Lao PDR Competitiveness and Trade Project (P164813) EAST ASIA AND PACIFIC | Lao People's Democratic Republic | Macroeconomics, Trade and Investment Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 2 | ARCHIVED on 05-Aug-2019 | ISR38004 | Implementing Agencies: Ministry of Industry and Commerce, Lao People’s Democratic Republic Key Dates Key Project Dates Bank Approval Date: 27-Sep-2018 Effectiveness Date: 10-Dec-2018 Planned Mid Term Review Date: 30-Nov-2020 Actual Mid-Term Review Date: -- Original Closing Date: 31-Dec-2022 Revised Closing Date: 31-Dec-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Development Objectives are to simplify business regulations, facilitate trade, and improve firm-level competitiveness. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving the Business Environment:(Cost $3.40 M) Facilitating Trade and Connecting to Markets:(Cost $2.80 M) Improving Firm-Level Competitiveness:(Cost $3.90 M) Supporting Better and More Inclusive Policies:(Cost $2.90 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 first implementation support mission (May 27-31) found that overall implementation progress has been strong with all major procurement packages completed or about to be completed. Significant reforms to improve the business environment have been undertaken by the Department of Enterprise Registration and Management (DERM) with other reforms under way. The matching grants facility has been set up (https://baflaos.com/) and has been launched on July 23 by the Minister of Industry and Commerce. While three Challenge Facility (CF) proposals (under component A3 and B2) have been prepared, no proposal has been approved by the Project Executive Committee to date. The mission urged the Government to speed up the approval of these proposals as well as the preparation of additional proposals. 8/5/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate 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 Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Substantial Substantial Substantial Other Low -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Simplify business regulations IN00727249 ►Time needed to start a business (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 67.00 174.00 174.00 30.00 Date 31-Oct-2017 31-Oct-2018 31-Oct-2018 31-Oct-2022 During the DB2019 cycle, new data was collected and the indicator was updated, resulting in the increase in estimated time required to start a business. There were no policy changes resulting in this correction of Comments: the indicator value. Facilitate trade IN00727346 ►Time to prepare documentary requirements for imports and exports (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 216.00 60.00 60.00 108.00 8/5/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) Date 31-Oct-2017 31-Oct-2018 31-Oct-2018 31-Oct-2022 During the DB2019 cycle, new data was collected and the indicator was updated. Together with some small policy changes that reduced regulatory requirements making it easier to prepare documentation and Comments: which were informed by policy dialogue during project preparation, this resulted in the reduction in estimated time required to prepare documentary requirements for imports and exports. Improve Firm-Level Competitiveness IN00727250 ►Sales growth in BAF supported firms compared to non-supported firms (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 22-May-2018 31-Dec-2018 31-Dec-2018 01-Aug-2022 The contractor to implement the BAF is now in place but no grants have been issued yet. This indicator Comments: will only be measured after grant-supported activities will have been able to influence business operations. Intermediate Results Indicators by Components Improving the business environment IN00727347 ►Time to obtain ERC from DERM (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.00 14.00 14.00 5.00 Date 29-Sep-2017 29-Sep-2017 29-Sep-2017 30-Sep-2022 Updated data not yet available as the team works on linking relevant datasets. Comments: IN00727352 Time for women-led enterprises as percent of men-led enterprises (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 100.00 100.00 100.00 IN00727355 ►Number of operating licenses streamlined (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 22-May-2018 31-Dec-2018 30-Jun-2019 28-Oct-2022 Work has started but no licenses have been streamlined so far. Comments: IN00727359 Number of operating licenses streamlined in sectors of particular interest to women (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target 8/5/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) Value 0.00 0.00 0.00 10.00 Date 23-May-2018 31-Dec-2018 31-Dec-2018 31-Oct-2022 IN00727360 ►Procedures to start a business (women) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 10.00 10.00 6.00 Date 27-Oct-2017 31-Oct-2018 31-Oct-2018 31-Oct-2022 During the DB2019 cycle, new data was collected and the indicator was updated, reflecting two additional procedures that had not been counted in prior DB reports, although they already existed. The increase Comments: from 8 to 10 procedures therefore reflects a correction in the indicator value rather than policy changes. IN00727361 ►Number of new enterprise registrations per year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6,707.00 6,707.00 9,167.00 7,713.00 Date 29-Dec-2017 29-Dec-2017 31-Dec-2018 30-Dec-2022 Facilitating trade and connecting to markets IN00727348 ►Commitments under the Trade Facilitation Agreement implemented by Lao PDR (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 21.00 21.00 21.00 60.00 Date 01-Jan-2018 01-Jan-2018 01-Jan-2018 30-Dec-2022 IN00727351 ►Technical Trade Facilitation Secretariat meetings with Private Sector Participation (last 12 months) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 4.00 4.00 Date 01-May-2018 11-Jan-2019 12-Jul-2019 30-Dec-2022 IN00727356 ►Mean time to clear imports, exports, and transit, through customs (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.40 9.40 9.40 6.00 Date 28-Jul-2017 28-Jul-2017 28-Jul-2017 28-Oct-2022 A Time Release Study was undertaken in January of 2019, but final data is only expected to be released Comments: in August following which the indicator will be updated. 8/5/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) Improving Firm-Level Competitiveness IN00727349 ►Total number of grants disbursed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 300.00 Date 21-May-2018 31-Dec-2018 30-Jun-2019 30-Dec-2022 The BAF contractor is on Board and the first grants are expected to be signed next week. Comments: IN00727353 Grants to women-led enterprises (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Supporting Better and More Inclusive Policies IN00727350 ►Lao Business Fora held per year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.00 1.00 1.00 Date 29-Dec-2017 31-Dec-2018 30-Jun-2019 30-Dec-2022 IN00727354 Issues captured and actioned through the Lao Business Forum that have been raised by women-led enterprises (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 33.30 33.30 33.30 40.00 IN00727357 Perception of Lao Business Forum’s effectiveness (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Very effective 31 40 percent perceive Value Very effective 31 percent Very effective 31 percent percent LBF as very effective IN00727358 ►Hits on the Lao Trade Portal (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 370.60 428.74 428.74 400.00 Date 29-Dec-2017 31-Dec-2018 31-Dec-2018 31-Dec-2021 To be updated annually. Data for the first half of 2019 indicate that this indicator remains on track. Comments: Data on Financial Performance 8/5/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164813 IDA-63180 Effective USD 10.00 10.00 0.00 0.95 8.97 9.5% P164813 TF-A9747 Effective USD 0.65 0.65 0.00 0.00 0.65 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164813 IDA-63180 Effective 27-Sep-2018 31-Oct-2018 10-Dec-2018 31-Dec-2022 31-Dec-2022 P164813 TF-A9747 Effective 13-Feb-2019 29-Apr-2019 21-Jun-2019 31-Dec-2022 31-Dec-2022 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 8/5/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) There are no related projects. 8/5/2019 Page 7 of 7