The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) SOUTH ASIA | Bangladesh | Environment, Natural Resources & the Blue Economy Global Practice | IBRD/IDA | Investment Project Financing | FY 2023 | Seq No: 3 | ARCHIVED on 27-Mar-2024 | ISR59972 | Implementing Agencies: Financial Institutions Divisions (FID), Palli Karma-Sahayak Foundation (PKSF) Key Dates Key Project Dates Bank Approval Date: 27-Apr-2023 Effectiveness Date: 27-Aug-2023 Planned Mid Term Review Date: 27-Apr-2026 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2028 Revised Closing Date: 31-Dec-2028 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To increase resource-efficient and resilient green growth of microenterprises (MEs). Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Enabling Capacity and Systems for Green Growth of MEs:(Cost $32.00 M) Providing Access to Finance for MEs to enable green growth:(Cost $251.00 M) Improving PKSF Project Management, Communications, Monitoring and Evaluations, and Knowledge Management:(Cost $17.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The project is making progress towards implementation. Project Key staff are fully onboard since March 2024 and other staff will be hired by 30 March 2024. The project will initiate Call-for-Proposal by March 2024. 3/27/2024 Page 1 of 7 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate 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 Moderate Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other Moderate Moderate Moderate Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes To increase resource-efficient and resilient green growth of microenterprises (MEs) IN01403534 ►Supported MEs adopting at least two climate-resilient RECP practices (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 64,000.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 Climate resilience indicator. The indicator counts the number of MEs that continue to use at least two climate-resilient RECP practices one year after these have been introduced to the MEs, and have received at least one loan. Green growth business practices largely include resource-efficient cleaner production (RECP) practices. Climate-resilient RECP is implemented in line with environmental policies and regulations in Bangladesh. Climate-resilient RECP practices include six practices on resource use (energy use, materials use and water use) and pollution (air emissions, wastewater, and waste) and reference indicators such as product output. These are used to calculate resource-productivity such as Comments: product output per unit of resource consumption and pollution-intensity calculated by emissions or waste generation per unit of product output. See annex 1 of the Project Appraisal Document for examples of climate-resilient RECP practices based on typology of ME activities. At appraisal, climate-resilient RECP assessments are conducted by the experts of air quality management, wastewater, and waste to identify business practices that will support MEs in achieving green growth. Based on the results of the climate- resilient RECP assessments and in consultation with POs, the MEs decide which climate-resilient RECP practice they adopt. IN01403535 Supported female owned MEs adopting at least two climate-resilient RECP practices (Percentage, Custom Supplement) 3/27/2024 Page 2 of 7 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 65.00 IN01403576 ►Supported MEs with improved knowledge on climate vulnerability (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 72,000.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 Climate resilience indicator. This indicator reflects knowledge improvements on the climate resilience of MEs through capacity building conducted by POs and PKSF. The methodology for conducting the knowledge assessments will be described in the Project Operations Manual. Climate resilience refers to Comments: the ability to withstand or bounce back from external shocks, particularly in dealing with the impact of climate change: e.g., (i) flood response; (ii) high salinity and drought resistant solutions; (iii) response to extreme heat; and (iv) other climate resilience enhancing approaches. See annex 1 of the Project Appraisal Document for examples of climate-resilient RECP practices based on typology of ME activities. IN01403577 ►Supported MEs with increased revenues by 10% or more compared to non-supported MEs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40,000.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 This indicator measures the increased revenues of supported MEs to assess the impact of the adoption of Comments: climate-resilient RECP practices compared to a counterfactual. IN01403578 Supported female owned MEs with increased revenues by 10% or more compared to non-supported female owned MEs (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 65.00 Intermediate Results Indicators by Components Enabling capacity and systems for green growth of MEs IN01403579 ►Non-revenue generating common facilities established or upgraded and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 Non-revenue generating common facilities are established or upgraded to an acceptable standard (to be defined in the Project Operations Manual) in ME clusters to promote climate-resilient RECP and enhance Comments: green business growth businesses. The type of support will be identified by POs through consultations with the ME clusters. IN01403583 3/27/2024 Page 3 of 7 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Non-revenue generating common facilities established or upgraded and operational owned by ME clusters that have women in the management committee (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 IN01403585 ►Supported MEs tracking at least one environmental key performance indicator (Number): m3 of wastewater, kwh energy, solid waste in tons, ammonia in parts per billion, CO2 equivalent of GHG emissions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50,000.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 Key environmental performance indicators include wastewater (m3), electricity (kwh), solid waste (ton per year), air pollution (PM2.5 and/or ammonia concentration), GHG emissions (CO2 equivalent). The tracking of environmental key performance indicators depends on the business models of the specific ME as reflected in the RECP profiles. See annex 1 of the Project Appraisal Document for examples of climate- resilient RECP practices based on typology of ME activities. Based on climate-resilient RECP assessments and in consultation with MEs, the POs decide which key environmental performance Comments: indicator to be tracked with a specific ME. Key environmental performance indicators can be tracked in the following ways: (a) Air quality meters installed in ME clusters, and data on PM2.5 and ammonia recorded manually and/or digitally; (b) Water quality meters installed where relevant; (c) GHG emissions can be calculated based on electricity consumption using free tools such as the Greenhouse Gas Equivalencies Calculator of the US Environmental Protection Agency (EPA): ; (d) Solid waste weighted when collected and/or disposed; and (e) Electricity using electricity bills of MEs. Providing access to finance for MEs to enable green growth IN01403580 ►Climate-resilient RECP profiles prepared and validated for MEs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30,000.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 Climate-resilient RECP profiles include the key environmental performance indicators and input and output information of the MEs. POs obtain training from the assessment team to prepare climate-resilient RECP profiles in consultation with targeted MEs. Climate-resilient RECP profiles are validated by POs Comments: and PKSF on a sample basis. The RECP profiles provide the basis for the selection of the RECP practices of the PDO indicator 1. POs will develop in collaboration with PKSF and the assessment team criteria for the selection of MEs for RECP profile development. IN01403584 Climate-resilient RECP profiles prepared and validated for female owned MEs (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 65.00 IN01403586 ►Loans provided to MEs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80,000.00 3/27/2024 Page 4 of 7 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 This indicator counts the number of loan agreements signed by MEs under the SMART project. A ME can Comments: sign more than one loan agreement. IN01403588 ►Loans provided to MEs committed to adopting at least two climate-resilient RECP practices (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 251,000,000.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 This indicator measures the volume of loans in the US$ million provided to MEs committed to adopting at least two climate-resilient RECP practices through the line of credit for sustainable climate-resilient RECP Comments: practices and technologies to provide sub-loans and the line of credit for revenue-generating common facilities. IN01403589 ►Revenue-generating common facilities established or upgraded and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 Revenue-generating common facilities are established or upgraded (to be defined in the Project Operation Comments: Manual) to promote climate-resilient RECP and green business growth practices. The type of support will be identified through consultations with MEs and POs. Improving PKSF Project Management, Communications, Monitoring Evaluations and Knowledge Management IN01403581 ►Environmental and Climate Change Units (ECCUs) established and operational at POs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 POs institutionalize climate-resilient RECP principles by establishing permanent ECCUs at the POs’ level. Comments: ECCUs at the PO level monitor ESF implementation to ensure that the activities of MEs meet the ESF requirements. An ECCU consists of one permanently employed specialist at minimum. IN01403582 ►Environmental clubs established and operational at ME clusters (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 Environmental clubs are established in ME clusters to strengthen awareness of MEs on climate-resilient Comments: RECP and to facilitate long-term behavioral changes. IN01403587 ►Grievances registered related to delivery of project benefits addressed in a timely fashion (Percentage, Custom) 3/27/2024 Page 5 of 7 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2028 Citizen engagement indicator. The project registers any grievances related to the delivery of project Comments: benefits from project beneficiaries in the MIS. Timely fashion means that grievances are responded to with follow-up action within two months after receipt of grievance. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P178996 IDA-73000 Effective USD 250.00 250.00 0.00 0.00 246.41 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P178996 IDA-73000 Effective 27-Apr-2023 28-Apr-2023 27-Aug-2023 31-Dec-2028 31-Dec-2028 Cumulative Disbursements 3/27/2024 Page 6 of 7 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 3/27/2024 Page 7 of 7