The World Bank Implementation Status & Results Report WAEMU Affordable Housing Finance (P161658) WAEMU Affordable Housing Finance (P161658) AFRICA | Western Africa | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 3 | ARCHIVED on 14-Dec-2018 | ISR34652 | Implementing Agencies: CRRH, BOAD, WAEMU, WAEMU Commission Key Dates Key Project Dates Bank Approval Date: 28-Sep-2017 Effectiveness Date: 21-Dec-2017 Planned Mid Term Review Date: 16-Dec-2019 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 objective is to expand access to long-term housing finance in WAEMU, including for underserved households. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Participating Banks Mortgage Refinancing:(Cost $80.00 M) Non-Bank Financial Institutions Mortgage Refinancing:(Cost $50.00 M) Affordable Housing Policies Technical Assistance:(Cost $15.00 M) Technical Assistance for Non-Bank Financial Institutions and CRRH:(Cost $5.00 M) Design of Regional Guarantee Product for Housing Loans:(Cost $5.00 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 team welcomes the considerable progress made in the past 6 months: CRRH issued a new bond, disbursements are expected to accelerate and the recruitment of key new staff has been completed by CRRH. CRRH has launched various training events with the IFC and the change at the Board to include at least one-third of independent directors is underway. CRRH, the implementing agency, disbursed US$20million equivalent and is expected to disburse another US$20 million equivalent under the subordinated debt and US$20 million equivalent of the line of credit for banks by end of 2018. CRRH closed its eighth groundbreaking bond issue, as for the first time it offered bonds over a 15-year maturity. Part of the 15-year tranche will be bought by the IFC using an innovative Private Sector 12/14/2018 Page 1 of 5 The World Bank Implementation Status & Results Report WAEMU Affordable Housing Finance (P161658) Window credit. 8 banks have submitted pipelines of loans to be refinanced for an amount greater than the disbursement. CRRH however notes that the absorption capacity of the national securities markets is limited. CRRH has also instituted a good risk management system with a fund to manage exchange rate risk. The introduction of the refinancing window for microfinance institutions is the main priority for 2019 in order to better serve households with modest and irregular incomes. The recruitment of a consultant dedicated to this component is in progress. The project has allocated US$50 million equivalent for this component and the support of CRRH’s Board would be instrumental. Disbursements to the WAEMU Commission have been modest and would need to be accelerated. The provision of Public Audited Accounts from the Court of Accounts of the WAEMU Commission has yet to be completed and is expected before June 2019. Procurement activities for CRRH have been moving faster since the recruitment of a specialist in Bank procedures. The WAEMU Commission has assigned a well- trained procurement staff to the project and a housing expert has been recruited, however progress still needs to be made on the contracts relating to the support to the social housing programs and the Centre for Excellence in Housing. There is strong demand from countries for support on their social housing programs which will be addressed by the activity managed by the Commission. This activity will be expedited and coordinated by the newly-hired housing expert. It will be important that focal points of each country support the WAEMU Commission to ensure that speed of implementation of the technical assistance is no longer an issue, considering the strong expectations of the WAEMU countries to obtain support. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Substantial Substantial Substantial Other Moderate Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes PDO Indicators IN00585189 ►Number of new mortgage loans issued by banks in WAEMU (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12,000.00 -- 12,000.00 32,000.00 12/14/2018 Page 2 of 5 The World Bank Implementation Status & Results Report WAEMU Affordable Housing Finance (P161658) Date 28-Dec-2017 -- 28-Dec-2017 29-Dec-2022 This indicator should be provided by the BCEAO. At this stage the information has not been received. Comments: IN00585190 ►Number of housing loans issued by banks and non bank financial institutions below FCFA 15 Million refinanced by CRRH (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,440.00 4,718.00 5,080.00 13,000.00 Date 28-Dec-2017 30-Apr-2018 11-Dec-2018 29-Dec-2022 Overall Comments PDO please see comments earlier. the BCEAO has not provided the indicator on the number of new mortgage loans issues by banks in the WAEMU Intermediate Results Indicators by Components Participating Banks Mortgage Refinancing IN00585262 ►Outstanding bonds issued by CRRH (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 180,000,000.00 242,000,000.00 282,000,000.00 740,000,000.00 Date 28-Dec-2017 28-Feb-2018 07-Dec-2018 29-Dec-2022 IN00585267 ►Survey of a sample of beneficiaries by mid-term review to provide feedback on terms and conditions of housing loans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1.00 Date 28-Dec-2017 -- 28-Dec-2018 29-May-2020 Non-Bank Financial Institutions Mortgage Refinancing IN00585261 ►Number of non-bank financial institutions making use of CRRH refinancing window (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.00 Date 28-Dec-2017 30-Apr-2018 30-Apr-2018 29-Dec-2022 IN00585266 ►Number of housing loans issued by non-bank financial institutions below 10 M FCFA and refinanced by CRRH (Number, Custom) 12/14/2018 Page 3 of 5 The World Bank Implementation Status & Results Report WAEMU Affordable Housing Finance (P161658) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3,000.00 Date 28-Dec-2017 30-Apr-2018 30-Apr-2018 29-Dec-2022 Affordable Housing Policies Technical Assistance IN00585263 ►A land and housing price index is established in a research centre, harmonized across all 8 countries and with effective data in at least 2 countries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 28-Dec-2017 30-Apr-2018 30-Apr-2018 29-Dec-2022 IN00585264 ►Number of countries which implement recommendations from the advisory services on affordable housing programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 28-Dec-2017 30-Apr-2018 30-Apr-2018 29-Dec-2022 Design of Regional Guarantee Product for Housing Loans IN00585265 ►A regional guarantee product for housing loans is available (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 28-Dec-2017 30-Apr-2018 30-Apr-2018 29-Dec-2022 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161658 IDA-61410 Effective USD 130.00 130.00 0.00 22.02 110.00 17% P161658 IDA-D2360 Effective USD 25.00 25.00 0.00 1.65 24.10 6.4% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 12/14/2018 Page 4 of 5 The World Bank Implementation Status & Results Report WAEMU Affordable Housing Finance (P161658) P161658 IDA-61410 Effective 28-Sep-2017 13-Oct-2017 21-Dec-2017 31-Dec-2022 31-Dec-2022 P161658 IDA-D2360 Effective 28-Sep-2017 13-Oct-2017 21-Dec-2017 31-Dec-2022 31-Dec-2022 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/14/2018 Page 5 of 5