The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) Access to Finance for MSMEs (P152307) LATIN AMERICA AND CARIBBEAN | Jamaica | IBRD/IDA | Investment Project Financing (IPF) | FY 2018 | Seq No: 14 | Archived on 01-Aug-2024 | ISR01372 Implementing Agencies: The Development Bank of Jamaica 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 28-Jan-2018) The Project Development Objective (PDO) is to improve access to finance for micro, small, and medium enterprises (MSMEs). Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Enhancement of the Credit Enhancement Facility (CEF):(Cost 5,550,000.00) Establishment of an SME Fund:(Cost 6,790,000.00) Improvement of enabling environment for access to finance and Business Development Services for MSMEs:(Cost 1,350,000.00) Project management:(Cost 1,270,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Aug 01, 2024 Page 1 of 7 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 013 - 31 Mar Proposed Rating 29 Jan 2018 2024 Political and Governance Substantial Moderate Moderate Macroeconomic High Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Overall Substantial Substantial Substantial Aug 01, 2024 Page 2 of 7 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes The PDO is to improve access to finance for micro, small and medium enterprises (MSMEs) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of SMEs getting 0.00 Jan/2018 1.00 31-May-2024 1.00 31-May-2024 5.00 Jan/2025 access to risk capital through Comments on Cumulative number of SMEs getting access to risk capital through the SME fund. the SME Fund (Number) achieving targets 78.00 Jan/2018 2,049 31-May-2024 2,049 31-May-2024 1,178.00 Jan/2025 Number of guarantees issued Comments on Cumulative number of guarantees issued to MSME loans through the improved CEF. The for MSME loans through the achieving targets indicator refers to the number of guarantees issued within the reporting period, as opposed improved CEF (Number) to the number of guarantees outstanding in the portfolio. 6.2 Intermediate Results Indicators by Components Enhancement of the Credit Enhancement Facility (CEF) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year The DBJ has Jan/2018 The DBJ has 31-May-2024 The DBJ has 31-May-2024 The DBJ has Jan/2025 Improvements of the DBJ's limited adequate adequate adequate institutional capacity in credit institutional systems and systems and systems and risk management of AFIs capacity to expertise in expertise in expertise in (Text) scale place to scale place to scale place to scale sustainably the and manage and manage and manage Aug 01, 2024 Page 3 of 7 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) CEF's the CEF, in a the CEF, in a the CEF, in a operations. sustainable sustainable sustainable manner. manner. manner. Additionally, a Additionally, a new CEF new CEF Division was Division was established established with a with a dedicated dedicated General General Manager and Manager and staff along staff along with a MIS and with a MIS and support from support from an enhanced an enhanced risk unit. risk unit. Comments on achieving targets 4,412,800.00 Jan/2018 106,930,253 31-May-2024 106,930,253 31-May-2024 100,000,000.00 Jan/2025 Comments on Cumulative volume of guarantees (in USD) provided to MSME loans through the improved Volume of guarantees achieving targets CEF. The indicator refers to the volume of guarantees issued within the reporting period, as provided to MSME loans opposed to the outstanding balance of guarantees in CEF's portfolio. Projected target values (Amount(USD)) reflect an estimated exchange rate at project's approval (USD 1 = J$ 125). The indicator will be reported in local currency(J$) as well to monitor exchange rate fluctuations. Establishment of an SME Fund Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Aug 01, 2024 Page 4 of 7 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) 0.00 Jan/2018 10,000,000.00 31-May-2024 10,000,000.00 31-May-2024 10,000,000.00 Jan/2025 Private capital mobilized Comments on Victoria Mutual Investments Limited committed US 10 million to the SME equity fund in June (Amount(USD)) achieving targets 2022. 0.00 Jan/2018 910,000.00 31-May-2024 910,000.00 31-May-2024 4,000,000.00 Jan/2025 Comments on Cumulative volume of risk capital provided to SMEs through the public-private SME Fund. Volume of risk capital achieving targets Risk capital refers to investments (equity or quasi-equity) made by the SME Fund in eligible provided to SMEs SMEs, according the terms and conditions of the SME Fund. Projected target values reflect (Amount(USD)) an estimated exchange rate at project's approval (USD 1 = J$ 125). The indicator will be reported in local currency (J$) as well to monitor exchange rate fluctuations. Number of SME investment 0.00 Jan/2018 5.00 31-May-2024 5.00 31-May-2024 8.00 Jan/2025 opportunities presented to the Fund's Investment committee for approval (Number) Improvement of enabling environment for access to finance and Business Development Services for MSMEs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Percentage of beneficiaries 0.00 Jan/2018 86.00 31-May-2024 86.00 31-May-2024 75.00 Jan/2025 that feel project activities Comments on The last surveys of beneficiaries were conducted in February and March 2023. reflected their needs (Citizen achieving targets Engagement Indicator) (Percentage) No Jan/2018 Yes 31-May-2024 Yes 31-May-2024 Yes Jan/2025 New business development Comments on New Business Development Service Platform designed, developed, tested and functioning service platform operational achieving targets online. It will include a virtual market for BDS providers and MSMEs and online tools for (Yes/No) business development. Aug 01, 2024 Page 5 of 7 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IBRD-88220 Effective 15.00 15.00 0.00 9.86 5.14 65.73% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IBRD-88220 Effective 29-Jan-2018 02-Mar-2018 29-May-2018 30-Jan-2023 15-Jan-2025 8. KEY DATES Aug 01, 2024 Page 6 of 7 The World Bank Implementation Status & Results Report Access to Finance for MSMEs (P152307) Key Events Planned Actual Approval 29-Jan-2018 29-Jan-2018 Effectiveness 22-Mar-2018 29-May-2018 Mid-Term Review No. 01 01-Jun-2021 01-Jul-2021 Operation Closing/Cancellation 15-Jan-2025 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 06-Sept-2022 Restructuring Level 2 Approved on 04-Jan-2024 10. ASSOCIATED OPERATION(S) There are no associated operations Aug 01, 2024 Page 7 of 7