The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Georgia National Innovation Ecosystem (GENIE) Project (P152441) EUROPE AND CENTRAL ASIA | Georgia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 5 | ARCHIVED on 19-Sep-2018 | ISR33596 | Implementing Agencies: Ministry of Economy and Sustainable Development, Georgia's Innovation and Technology Agency, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 18-Mar-2016 Effectiveness Date: 21-Jul-2016 Planned Mid Term Review Date: 08-Oct-2018 Actual Mid-Term Review Date: -- Original Closing Date: 30-Apr-2021 Revised Closing Date: 30-Apr-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to increase innovative activities of firms and individuals in the Borrower's territory and their participation in the digital economy. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Innovation Infrastructure:(Cost $14.70 M) Innovation Services:(Cost $13.40 M) Innovation Financing:(Cost $9.00 M) Project Implementation Support:(Cost $2.80 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Unsatisfactory Overall Implementation Progress (IP) Unsatisfactory Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Project has continued to experience delays in implementation, which, combined with previous delays, threaten the potential to achieve the Project’s objectives. However, a number of achievements have been made in this reporting period. Component 1 (Innovation Infrastructure):  Limited progress has been made in the setting up of innovation hubs and centers—the center in Rukhi was recently opened, and the Telavi and Akhmeta locations are expected to open in late September 2018. This is lower than the approximately 13 hubs and centers expected to be operating. Demand for the innovation hubs and centers is very limited, and, according to latest analysis by Georgia’s 9/19/2018 Page 1 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Innovation and Technology Agency (GITA), it may not be possible to identify spaces suitable to host the planned number of innovation hubs (two more) and centers (at least eight more) financed under this Component.  GITA has completed the awareness raising training activities for the Broadband for Development (BfD) pilot, covering 50 sessions in 37 municipalities from 6 different regions, and attracting 986 participants. Work has now begun to roll out the pilot program, scheduled to begin in late September 2018. However, based on turnout and feedback from initial training, interest in Broadband for Development activities is different than originally foreseen; specifically, participants expressed interest in training and technical assistance, as opposed to vouchers for internet connections. GITA is now considering how to best incorporate this feedback into the BfD program. Component 2 (Innovation Services):  The focus of this component is on increasing awareness and capacity of firms and individuals, in topics related to innovation, entrepreneurship, and digital skills; however, no concrete activities have been implemented under this Component to date. During this reporting period, preparations have been initiated for a pre-acceleration program to be implemented with universities, as well as an international acceleration program to be hosted in Georgia. In addition, data from interviews with 50+ firms outside of Tbilisi has been analyzed, in the context of assessing the innovation potential and needs of firms in Georgia’s region. The analysis shows a strong demand for tailored training and capacity building of firms. Component 3 (Innovation Financing):  Progress has been made in the implementation of the Matching Grants (MGs), under Component 3 (Innovation Financing) with the successful completion of the first round of funding under the startup grants program. Out of 118 applications received, 18 companies were awarded grants of GEL 100,000 (approximately US $40,000) each, on May 25, 2017. The World Bank, GITA, and Government are discussing restructuring options, to improve performance of the Project progress toward achieving the Project Development Objective. Concretely, the restructuring may involve the reallocation of funds across components and/or to new activities, and, provided evidence of accelerated implementation, a one-year extension of the Project. The goal is to complete the restructuring in late 2018 to early 2019. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Substantial Substantial 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 Substantial Substantial Environment and Social Low Low Low Stakeholders Low Low Low Other -- Low Low Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Increase innovative activities of firms IN00625914 9/19/2018 Page 2 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) ►New/improved products/services introduced to existing or new markets by Project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 Increase innovative activities of individuals IN00625912 ►Startups launched by project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 17.00 340.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 Increase firms' and individuals' participation in the digital economy IN00625916 ►Access to Internet Services (number of subscribers per 100 people) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 39.00 77.78 77.78 50.00 Date 31-Dec-2014 09-Jan-2018 27-Aug-2018 30-Apr-2021 IN00625926 ►Beneficiary MSMEs selling via e-commerce platforms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 29.00 400.00 Date 31-Dec-2015 09-Jan-2018 27-Aug-2018 30-Apr-2021 Intermediate Results Indicators by Components Innovation Infrastructure IN00625917 ►RIHs established, equipped, and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.00 Date 01-Jul-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625923 ►CICs established, equipped, and operational (Number, Custom) 9/19/2018 Page 3 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625915 ►Visitors to CICs and RIHs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 150,000.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625928 Female visitors to CICs and RIHs (percentage of total) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625920 ►New household and MSME broadband subscriptions catalyzed by voucher program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 33,000.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625924 ►Recipients of basic digital literacy training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30,000.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 Innovation Services IN00625919 ►Innovation competitions and exhibitions supported by the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 275.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625925 ►Participants in innovation competitions and exhibitions supported by the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4,400.00 9/19/2018 Page 4 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625884 ►Individuals completing structured training modules and programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,036.00 10,000.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625927 Females completing structured training modules and programs (percent of total) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 28.00 20.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625918 ►Beneficiaries of coaching, mentoring, or technical consulting (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 86.00 180.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 Innovation Financing IN00625885 ►Private financing catalyzed through matching grant programs (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 80,535.00 1,950,000.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625911 ►Enterprises and start-ups financed through matching grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 17.00 156.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 Project Implementation Support IN00625922 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 46.00 64,000.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625929 9/19/2018 Page 5 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 50.00 20.00 IN00625921 ►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 0.00 1.00 75.00 Date 31-Dec-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 IN00625913 ►Citizen engagement: user feedback collected from project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 21.00 5,000.00 Date 01-Jul-2015 09-Jan-2018 17-Sep-2018 30-Apr-2021 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P152441 IBRD-85950 Effective USD 40.00 40.00 0.00 3.20 36.80 8% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152441 IBRD-85950 Effective 18-Mar-2016 28-Mar-2016 21-Jul-2016 30-Apr-2021 30-Apr-2021 Cumulative Disbursements 9/19/2018 Page 6 of 7 The World Bank Implementation Status & Results Report Georgia National Innovation Ecosystem (GENIE) Project (P152441) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/19/2018 Page 7 of 7