The World Bank Report No: ISR9200 Implementation Status & Results Benin Competitiveness and Integrated Growth Opportunity Project (CIGOP) (P104881) Public Disclosure Copy Operation Name: Competitiveness and Integrated Growth Opportunity Project Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 25-Feb-2013 (CIGOP) (P104881) Country: Benin Approval FY: 2008 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 29-Apr-2008 Original Closing Date 01-Mar-2014 Planned Mid Term Review Date 03-Dec-2012 Last Archived ISR Date 16-Aug-2012 Effectiveness Date 23-Jun-2009 Revised Closing Date 01-Mar-2014 Actual Mid Term Review Date 04-Nov-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to support enterprise and entrepreneurship developments through improved business development infrastructure, an improved trade expansion platform, and catalytic interventions for direct investment promotion and the development of new products and new markets. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Improved Business Development Infrastructure through Reform of Structures 5.47 Products and Markets Development 14.79 Project Implementation, Monitoring and Evaluation 3.00 Contingencies 1.74 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Unsatisfactory Overall Risk Rating Substantial Implementation Status Overview Almost 40 months after project became effective, the situation is pretty stark. The project has disbursed 18,73 % and none of the components have really been mobilized. With 15 months left, the project has about $20m available. The project structure is highly complex, suffers from long procurement delays. Further no real evidence that the project is aligned with the Government’s strategy. On this basis that the project needs to go through a profound restructuring or otherwise just be cancelled. Page 1 of 6 The World Bank Report No: ISR9200 Locations Country First Administrative Division Location Planned Actual Benin Departement du Littoral Cotonou Public Disclosure Copy Benin Not Entered Republic of Benin Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Completion of the set up of the Business Text Value 3 differents non performing APIEX fully functional with all Development Infrastructure (BDI) bureaucratic institutions and systems and structures in business coordinated place business plans to support investment and trade Date 30-Apr-2008 01-Nov-2011 01-Mar-2014 Comments One needed to first diagnose The ad hoc committee on the APIEX will be created before and gap-audit existing reform of the fiscality has schedule. This will give time structures, carry-out policy deposited its report. This will to build and get integrated dialog with all stakeholders, inform the fiscal reforms to be virtual one stop shops for agree on critical functions to funded under the project. By investment and trade in place be delivered by the future engaging several consultants and fully functional. The agency, draft its business tasked with complementing retrofitting of the new plan with delivery strategies activities, the project now investment code will be and modalities. disposes of all inputs to completed. buildthe future APIEX in time and in budget. Only thing left are strategies for investment and trade to help draft legal documents. Completion of the set up of the Minimum Text Value No knowledge plaform for The whole MITEP will be in Public Disclosure Copy Integrated Trade Expansion Platform (MITEP) resource-based enterprise place and fully fuctional by end of project. development. Dislocated and isolated QSTM structures not aligned on products & markets. No specialized business development services for enterprises. No common service centers for enterprises for production, storage, transport and trade Page 2 of 6 The World Bank Report No: ISR9200 Date 30-Apr-2008 01-Nov-2011 01-Mar-2014 Comments This is about the construction Process of Design of The whole system will be of a competitiveness platform Products ID Cards started in operational before schedule. Public Disclosure Copy to support investment in parallel with the search of However, this will always be products development from technical data per products work in progress as the scratch. There was a need to lines to be transformed into system will be fed with data assess the situation first, numeric resources. Product on new product lines that will design master models for ID Cards are the basis of the generate demand for each component and assign Proactive Trade Information adjustment by the other the work. System (PTIS). MITEP pillars Private investment generated are 8 times Text Value No instrument was in place to Objectives set will be met by amounts disbursed by PDF help develop projects to levels end of project. of risks acceptable by private sector. Date 30-Apr-2008 01-Nov-2011 01-Mar-2014 Comments It was critical to develop a Disbursement on the Fund Recourse to the PDF will help business plan for the PDF was delayed because its close gaps in supply and and derive its manual of operational manual was not value chains with new public- procedures. prepared by the former PCU private investments in team that was finally infrastructure that willhelp dismissed. The new team has create downstream speed-up the set-up of the investment opportunities for PDF systems and structures private sectors in economic diversification through industrialization. Setp up of fiscal regime favorable to Text Value Help redirect sector specific To be determined investments policies Date 30-Apr-2008 30-Apr-2011 01-Mar-2014 Comments No work was done on this by the previous PCU. Preparation of a code of investment favorable Text Value to investment promotion Date 30-Apr-2011 Public Disclosure Copy Comments No work was done on this by the previous PCU. Intermediate Results Indicators Page 3 of 6 The World Bank Report No: ISR9200 Indicator Name Core Unit of Measure Baseline Current End Target Set-up of APIEX completed.SPCPI established Text Value Investment promotion and Only one agency (APIEX) by and operational.New financial Intermediation export promotion not end of project Public Disclosure Copy Framework prepared.Draft strategy for the integrated separation of post and telecom. Date 30-Apr-2008 01-Nov-2011 01-Mar-2014 Comments 3 differents non performing Work was delayed because of All upstream work leading to a bureaucratic institutions and dismissal of previous PCU. consolidated Business business coordinated Work has resumed in Development infrastructure business plans to support February 2011. Activities with (BDI) will be completed and investment and trade the SPCI and Financial an integrated institutional intermediation launched. infrastructure will be in place Work on Benin Telecom to support investment, completed. enterprise development and entrepreneurship. Set-up of MITEP Pillar One (QSMT) by end of Text Value No relevant standard to New standards, ID Cards and Project.PTIS established and support the development of relevant compliance systems operationalPercentage (%) increase of MSMEs new products and new are developed for , agri reporting new developments in their business markets No Products ID culture, agrobusiness and annually. Cards No new product fishery sectors. MSTQ integrated andoperational by end of Project. Date 30-Apr-2008 01-Nov-2011 01-Mar-2014 Comments Work had to be done No work was done on this by All elements constitutive of gradually, building all pieces the previous PCU. The new MITEP will be in place and and bringing them together at PCU has caught delays. running together as an the end integrated system. A pilot Project Development Fund (PDF) Text Value No PDF existed in Benin at Legal and institutional established and operational. project design stage. frameworks developed for PDF. Number of enterprise business plans developed and adopted by private sector. Percentageincrease of Public Disclosure Copy number of co-investment schemes Date 30-Apr-2008 01-Nov-2011 01-Mar-2014 Comments It was expected to make an Will depend on how fast The objective of the PDF will assessment of priority Government and Private will be met by end of project activities to be supported and propose interventions to be how financed by the PDF. Bank team will need to providesupport in first operations. the official launch Page 4 of 6 The World Bank Report No: ISR9200 of the PDF on September 8 has created a new momentum and projects are being proposed for support. Public Disclosure Copy Volume of Bank Support: Enabling Amount(USD) Value 0.00 Environment - SME Date 30-Apr-2008 30-Apr-2011 01-Mar-2014 Comments Interventions have not yet started. Data on Financial Performance (as of 11-Jan-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P104881 IDA-44240 Effective 29-Apr-2008 12-Sep-2008 23-Jun-2009 01-Mar-2014 01-Mar-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P104881 IDA-44240 Effective XDR 15.70 15.70 0.00 3.61 12.09 23.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Page 5 of 6 The World Bank Report No: ISR9200 Following consultations with the government and other stakeholders it appears that there is a real need to pursue some project activities such as the support for the establishment of the Investment promotion and also help lay some foundations for private sector development in Benin. As a consequence it was agreed that operation should be restructured and not canceled. Public Disclosure Copy Restructuring strategy: Project should be reshaped to support Benin’s economic transformation and job creation agenda, with a focus on investment generation. This will likely require changing the PDO and revise project components as follows: a. Business environment ($3m). This component would be coordinated with IFC and would focus on completing reforms to simplify business creation, cross border trade, ADR, etc. b. Transformational investment generation and job creation ($13). This component would include a matching grant/BPC program (equity and coaching to support job creation in high potential value chains) and a transformational TA window (to support structuring of PPPs for transformational projects such as SEZ, ICT, port and logistics, etc.) c. Institutional development and project coordination ($4m). This component would help consolidate institutional effectiveness of the IPA, the forthcoming PPP agency, and the PIU. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6