The World Bank Implementation Status & Results Report Djibouti Affordable Housing Finance Project (P176772) Djibouti Affordable Housing Finance Project (P176772) MIDDLE EAST AND NORTH AFRICA | Djibouti | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2023 | Seq No: 3 | ARCHIVED on 26-Feb-2024 | ISR59882 | Implementing Agencies: Agence de Réhabilitation Urbaine et du Logement Social (ARULOS)., Fonds de Garantie Partielle des Credits de Djibouti (FGPCD), Republic of Djibouti - Ministry of Economy and Finance, in Charge of Industry Key Dates Key Project Dates Bank Approval Date: 21-Dec-2022 Effectiveness Date: 12-Apr-2023 Planned Mid Term Review Date: 30-Jun-2026 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2027 Revised Closing Date: 31-Dec-2027 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project's Development Objective is to expand access to affordable housing finance for underserved populations in the Recipient’s territory. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Mortgage guarantee mechanism:(Cost $7.00 M) Innovative financing of affordable housing:(Cost $5.50 M) Technical Assistance and Project Management:(Cost $2.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The project has made significant progress in launching technical activities. - Housing guarantees by the FOGAD. Agreements have been signed with banks and a communication plan to eligible beneficiaries has been prepared. The FOGAD is ready to issue guarantees for eligible new mortgage loans brought on by participating financial institutions. - Self-construction and rent-to-own contracts. The finalization of the operational modalities and identification of eligible beneficiaries for these activities are underway. - Reform for the housing construction sector and capacity building for SMEs. A partnership has been signed between ARULos, the Ministry of Education, Ministry of Professional Insertion, and the Chamber of Commerce. An action plan has also been developed to provide holistic support to the housing sector through trainings for the youth, regulatory reforms, and support to SMEs. 2/26/2024 Page 1 of 6 The World Bank Implementation Status & Results Report Djibouti Affordable Housing Finance Project (P176772) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- Moderate Moderate Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Mortgage guarantee mechanism IN01400790 ►Number of low-to-middle income households benefitting from affordable mortgage loans partially guaranteed by the FGPCD (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,000.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 this assumes a leverage of 5x , coverage of 50% and an average mortgage loan guaranteed of Comments: US$35,000 IN01400882 Number of women benefitting from affordable mortgage loans guaranteed (sole or in a new joint ownership) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 800.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 2/26/2024 Page 2 of 6 The World Bank Implementation Status & Results Report Djibouti Affordable Housing Finance Project (P176772) Innovative financing for affordable housing IN01400789 ►Number of poor households benefitting from self-construction finance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 450.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 Those are households considered poor in decile 1-5 benefitting from the self-construction projects funded Comments: by both ARULoS and the microfinance institutions under the line of credit in Phase 2 IN01400881 Number of women benefitting from self-construction, owning the title or in a new joint ownership (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 150.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 Intermediate Results Indicators by Components Housing Guarantee Mechanism IN01400883 ►Number of financial institutions that use the housing guarantee fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 IN01400886 ►Private capital mobilized from banks via the housing guarantee (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70,000,000.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 this reflects the private capital mobilized from financial institutions through the guarantee as they will use Comments: their liquidities to issue loans - assumption US$7 million capital, leverage of 5x, 50% coverage - can guarantee US$70 million of loans Innovative financing for affordable housing IN01400884 ►Number of low-to-middle income households converting rent-to-own contracts into mortgage loans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/26/2024 Page 3 of 6 The World Bank Implementation Status & Results Report Djibouti Affordable Housing Finance Project (P176772) Value 0.00 0.00 0.00 250.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 this reflect the number of rent-to-own contract converted into mortgage based on about 10 percent of the Comments: current and future stock (ie. contracts that were supposed to be rent to own become mortgage loans) IN01400887 ►Number of financial institutions which use the microfinance credit line (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 Comments: This reflects that 2 microfinance institutions are interested in using the credit line for self-construction IN01400889 ►Number of housing units resilient to climate-induced floods and fires (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 450.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 Comments: This reflects the self-construction projects certified by ARULoS as resilient to fires and floods IN01400890 ►Annual surveys of potential and existing beneficiaries whose results inform the design of the microfinance line of credit and mortgage guarantee throughout the project’s implementation (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 29-Dec-2023 ARULoS will perform annual surveys of existing and potential beneficiaries. The first survey in Year 1 will identify potential beneficiaries of the self-construction to be financed by microfinance institutions, and will Comments: inform the design of the line of credit under Component 2a.The feedback received through the annual surveys will be used to adjust the design of the microfinance line of credit and mortgage guarantee during the project’s implementation. Technical Assistance and Project Management IN01400885 ►Number of regulatory reforms adopted to promote affordable housing and lower construction costs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 30-Dec-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 Comments: The reflects policy or tax reforms adopted IN01400888 2/26/2024 Page 4 of 6 The World Bank Implementation Status & Results Report Djibouti Affordable Housing Finance Project (P176772) ►Number of people trained on climate resilient and energy efficient construction techniques (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 300.00 Date 26-Oct-2022 22-Mar-2023 21-Nov-2023 30-Dec-2027 Comments: Number of people trained on energy efficient construction and low-carbon material (60 per year) Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P176772 IDA-72590 Effective USD 15.00 15.00 0.00 7.76 7.78 50% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P176772 IDA-72590 Effective 21-Dec-2022 22-Dec-2022 12-Apr-2023 31-Dec-2027 31-Dec-2027 Cumulative Disbursements 2/26/2024 Page 5 of 6 The World Bank Implementation Status & Results Report Djibouti Affordable Housing Finance Project (P176772) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/26/2024 Page 6 of 6