Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Lao PDR Second Trade Development Facility Project (P130512) EAST ASIA AND PACIFIC | Lao People's Democratic Republic | Trade & Competitiveness Global Practice | IBRD/IDA | Technical Assistance Loan | FY 2013 | Seq No: 9 | ARCHIVED on 03-Aug-2017 | ISR28720 | Implementing Agencies: Ministry of Industry and Commerce, Lao People's Democratic Republic, Department of Imports and Exports, Ministry of Industry and Commerce, Department of Foreign Trade Policy Department, Ministry of Industry and Commerce, Ministry of Industry and Commerce Key Dates Key Project Dates Bank Approval Date:04-Dec-2012 Effectiveness Date:08-May-2013 Planned Mid Term Review Date:11-May-2015 Actual Mid-Term Review Date:01-Jun-2015 Original Closing Date:31-Mar-2017 Revised Closing Date:30-Sep-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to support the implementation of government's trade and integration priorities outlined inthe2012 DTIS Roadmap, and in particular to contribute to improved competitiveness and diversification, focusing outside the naturalresource sectors. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Name Trade facilitation, trade policy and regulations:(Cost $5.80 M) Diversification and competitiveness:(Cost $5.20 M) Mainstreaming aid for trade:(Cost $5.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate 8/3/2017 Public Disclosure Copy Page 1 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Implementation Status and Key Decisions The Implementation Support Mission (May 8-16, 2017) for the Second Trade Development Facility Project (TDF-2) took stock of implementation performance and the quality of activities undertaken since the beginning of the project. Overall, Project implementation remains broadly on track toward achieving the Project Development Objective (PDO), with ratings for implementation performance and for progress towards the achievement of the PDO remaining ‘Satisfactory’. Disbursements are also on track as they stood at 79 percent on July 1, and 73 percent if calculated against the total appraised amount of US$16.5 million. Government ownership over TDF-2 continues to be strong. Significant progress has been made in a large number of areas. Work under the Non-Tariff Measures component has accelerated although more work will be required to achieve the project objectives. The implementation of the Trade in Services subcomponent has made some progress in the area of accounting, telecommunications, and the Services Trade Investment Portal (STIP); however, the overall progress is more limited compared to other subcomponents. With only 15 months remaining before the end of the project, it will be essential to commit all remaining resources quickly, including reallocating resources across components where needed. Launching of the delayed STIP by end of July 2017 also remains a priority. It remains critical for the NIU to closely monitor implementation and ensure effective execution, particularly for the Trade in Services component. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Low  Low Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Reduced mean number of days to clear imports (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/3/2017 Public Disclosure Copy Page 2 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Value 10.60 2.00 2.00 5.30 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data are updated every time an ES is published. The last one for Lao PDR was published in August 2016 PHINDPDOTBL  Reduced mean number of days to clear exports (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.50 2.00 2.00 3.80 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data are updated every time an ES is published. The last one for Lao PDR was published in August 2016 PHINDPDOTBL  Number of products at 6-digit level of the Harmonized System with exports exceeding USD 100,000 in a year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 282.00 290.00 317.00 300.00 Date 01-Apr-2013 31-Dec-2014 31-Dec-2015 01-Oct-2018 Comments Data source COMTRADE mirror data (import data from all countries): Not all countries have reported data for 2016 yet. Overall Comments Intermediate Results Indicators 8/3/2017 Public Disclosure Copy Page 3 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Reduction in percent of firms identifying customs and trade regulations as a major constraint (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.80 7.60 7.60 2.80 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data are updated every time an ES is published. The last one for Lao PDR was published in August 2016 PHINDIRITBL  Increase in number of hits for Lao PDR Trade Portal (per year) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.18 386.50 386.50 200.00 Date 31-Jan-2013 02-Jan-2017 02-Jan-2017 01-Oct-2018 PHINDIRITBL  Successful completion rates for Trade Facilitation capacity building program (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 90.00 90.00 Date 01-Apr-2013 02-Jan-2017 30-Jun-2017 01-Oct-2018 Comments Overall eighty four officials from a range of Lao PDR public and private sector organizations attended the training with the following results. For the Executive Management Development Program and the Middle Managers Development Program, 90% of all attendees completed the trainings successfully, demonstrating an understanding of trade facilitation issues. No additional training has taken place over the reporting period. 8/3/2017 Public Disclosure Copy Page 4 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Frequency and participation of National Trade Facilitation Secretariat meetings to resolve trade facilitation issues, with decisions documented and follow up actions prioritized (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 1.00 1.00 2.00 Date 01-Apr-2013 01-Dec-2016 30-Jun-2017 01-Oct-2018 PHINDIRITBL  Reduction in the mean number of days required to obtain import licenses (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.70 5.40 5.40 9.00 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data are updated every time an ES is published. The last one for Lao PDR was published in August 2016 PHINDIRITBL  Reduction in the mean number of days required for services firms to obtain operating licenses (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.70 13.60 13.60 10.10 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data are updated every time an ES is published. The last one for Lao PDR was published in August 2016 8/3/2017 Public Disclosure Copy Page 5 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Cumulative number of new regulations adopted affecting the telecom sector / insurance sector / professional services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 8.00 8.00 Date 01-Apr-2014 01-Dec-2016 30-Jun-2017 01-Oct-2018 Comments Two additional regulations were issued, (1) a Prime Minster's Decree establishing the Telecom Regulatory Authority, and (2) a Ministerial Decision establishing the mandate, functions and Responsibilities of Telecom Regulatory Authority. Other regulations already adopted are for the telecoms licensing framework: (i) business licensing for telecommunication sector; (ii) inter- connections, (iii) numbering, (iv) competition for telecommunications and (v) spectrum management. In addition, the (vi) Ministerial Guideline on Insurance Business Operating License has been issued. PHINDIRITBL  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 21.00 20.00 Date 01-Apr-2013 02-Feb-2015 31-Mar-2017 01-Oct-2018 Comments The BAF component was successfully completed end of March 2017. The final impact assessment of the BAF prepared by Emerging Markets Consulting for the government showed that sales growth among beneficiary firms of the BAF was 21 percentage points higher than for non-beneficiaries. PHINDIRITBL  Cumulative number of BAF grant approvals (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 203.00 208.00 150.00 Date 01-Apr-2013 02-Jan-2017 31-Mar-2017 31-Mar-2017 Comments The BAF component was successfully completed end of March 2017. 8/3/2017 Public Disclosure Copy Page 6 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Average percentage of female owned businesses among approved applications by BAF (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.00 34.00 30.00 PHINDIRITBL  Within those businesses, percentage of women employed (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 51.00 42.00 30.00 PHINDIRITBL  Cumulative number of garment factory labor standards assessed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 10.00 5.00 Date 01-Apr-2013 31-May-2016 30-Jun-2017 01-Oct-2018 Comments From December 2016 to February 2017, the core group of twelve labor inspectors (including 3 women) conducted 10 factory assessments in the garment industry against the checklist covering national Labor Law and core labor standards. 8/3/2017 Public Disclosure Copy Page 7 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Number of new company registrations per year in non-resource sectors (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4,353.00 -- 8,987.00 4,657.00 Date 01-Jun-2015 -- 30-Dec-2016 01-Oct-2018 Comments In 2016, 8987 new non-resource-sector companies registered with the Enterprise Registration Department at MOIC. PHINDIRITBL  Improved aid for trade governance moving toward a program based approach operating under the TPSWG (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Coordinated, Coordinated, joint work Coordinated, joint work Joint work planning and results planning and results planning and Fragmented, standalone monitoring supervised monitoring supervised Value result work programs by the Trade and by the Trade and Private monitoring Private Sector Working Sector Working Group supervised by Group (TPSWG) (TPSWG) the TPSWG Date 01-Apr-2013 20-Oct-2016 28-Jun-2017 01-Oct-2018 PHINDIRITBL  Perception of Lao Business Forum’s effectiveness increased (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 60% perceive Somewhat effective 40% Somewhat effective 59% LBF as at least Value -- and very effective 10% and very effective 31% somewhat effective Date 01-Apr-2013 -- 26-Jul-2017 01-Oct-2018 Comments The very successful 10th Lao Business Forum was held on March 28, 2017 and was chaired by the Prime Minister. An updated evaluation of the LBF perception was undertaken in late July 2017. The survey showed a strongly improved perception of the LBF among participants and also raising a number of suggestions for further improving the LBF.. 8/3/2017 Public Disclosure Copy Page 8 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Cumulative number of issues and concerns raised by small and women-led enterprises captured and actioned through the Lao Business Forum (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 6.00 10.00 PHINDIRITBL  Increased share of firms with female management/ownership participation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 39.00 43.10 43.10 47.00 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 31-Mar-2017 Comments Enterprise Survey data are updated every time an ES is published. The last one for Lao PDR was published in August 2016. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P130512 IDA-H8190 Effective USD 4.00 4.00 0.00 3.41 0.30 85% P130512 TF-14189 Effective USD 9.90 9.90 0.00 8.37 1.53 85% P130512 TF-A3946 Effective USD 1.30 1.30 0.00 0.41 0.89 31% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P130512 IDA-H8190 Effective 04-Dec-2012 28-Mar-2013 08-May-2013 31-Mar-2017 30-Sep-2018 8/3/2017 Public Disclosure Copy Page 9 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) P130512 TF-14189 Effective 28-Mar-2013 28-Mar-2013 08-May-2013 31-Mar-2017 30-Sep-2018 P130512 TF-A3946 Effective 19-Dec-2016 04-Jan-2017 04-Jan-2017 30-Sep-2018 30-Sep-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P159060-AF - SECOND TRADE DEVELOPMENT FACILITY PROJECT 8/3/2017 Public Disclosure Copy Page 10 of 10