The World Bank Implementation Status & Results Report Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project (P174169) Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project (P174169) EAST ASIA AND PACIFIC | Lao People's Democratic Republic | IBRD/IDA | Investment Project Financing (IPF) | FY 2021 | Seq No: 7 | Archived on 29-Aug-2024 | ISR01027 Implementing Agencies: Ministry of Industry and Commerce 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Decision package on 21-Oct-2020) The project aims to enhance access to finance for MSMEs in the context of the COVID-19 emergency and recovery Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Component 1: Emergency and Recovery Line of Credit to MSMEs:(Cost 34,000,000.00) Component 2: Strengthening Bank of Lao Capacity to Supervise PCG Fund:(Cost 1,000,000.00) Component 3: Technical Assistance and Project Management:(Cost 5,000,000.00) Component 4: Contingency Emergency Response:(Cost 0.00) 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 4. KEY ISSUES & STATUS Aug 29, 2024 Page 1 of 8 The World Bank Implementation Status & Results Report Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project (P174169) 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. 06 - 15 May Proposed Rating 22 Oct 2020 2024 Political and Governance Substantial Substantial Substantial Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Moderate Moderate Environment and Social Substantial Substantial Moderate Stakeholders Moderate Moderate Moderate Overall Substantial Substantial Substantial Aug 29, 2024 Page 2 of 8 The World Bank Implementation Status & Results Report Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project (P174169) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Enhance access to finance for MSMEs through financial intermediaries Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Aug/2020 16,185,000.00 15-May-2024 16,185,000.00 15-May-2024 34,000,000.00 Nov/2025 Comments on As of May 15, 2024 the total disbursement (approval) of both refinancing and regular achieving targets financing is US$ 16.185 Million for 222 MSMEs (230 sub-loans). The figure was slightly lower than the last ISR due to the depreciation. No disbursement was made under the final phase of Volume of sub-loans LOC during the ISM. disbursed to MSMEs under the project (Amount(USD)) This indicator measures the total amount of sub-loans provided to MSMEs by participating financial institutions with project funds. The indicator includes sub-loans provided under both the emergency and recovery windows. of which women-led 7,740,000.00 7,740,000.00 enterprises Comments on Women-led enterprises are those in which women are in leadership positions and in control (Amount(USD)) achieving targets of that business, regardless of whether they own 51 percent of the company 0.00 Aug/2020 99 15-May-2024 99 15-May-2024 80.00 Nov/2025 Comments on As of May 2024, 222 MSMEs benefitting from the line of credit reported to survive COVID-19 Share of MSMEs benefitting achieving targets crisis. from line of credit that survive COVID-19 crisis (Percentage) This indicators measures the percentage of MSMEs who benefited from line of credit from the project confirming that they have survived the COVID-19 crisis Aug 29, 2024 Page 3 of 8 The World Bank Implementation Status & Results Report Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project (P174169) Support MSMEs in gaining access to credit Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of MSMEs 0.00 Aug/2020 0.00 12-Jul-2023 30.00 Nov/2025 benefitting from TA that Comments on This indicator measures number of MSMEs benefitting from TA from the project confirming obtain credit for first time achieving targets that they obtain credit for first time. (Number) The indicator will be revised as part of the upcoming restructuring. 6.2 Intermediate Results Indicators by Components Component 1: Emergency and Recovery Line of Credit to MSMEs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Aug/2020 222.00 14-Nov-2023 400.00 Nov/2025 Comments on 222 MSMEs received financing under the project, of which 122 MSMEs under Refinancing & Number of MSMEs received achieving targets 100 MSMEs under Regular financing financing under the project (Number) This indicator measures number of SMEs who have received a line of credit from participating financing institutions under the project. It is assumed that average loan size is about $80,000. Component 2: Strengthening Bank of Lao Capacity to Supervise PCG Fund Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year No Aug/2020 No 15-May-2024 No 15-May-2024 Yes Nov/2025 Aug 29, 2024 Page 4 of 8 The World Bank Implementation Status & Results Report Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project (P174169) Comments on To date, there were 2 study visits and 1 online exchange meeting on CGF establishment and achieving targets management. Supervision procedural documents were also developed. TA to strengthen the capacity of the BOL to supervise and monitor PCG according to the documents developed by the International Consultant will be delivered once the establishment of the PCG (Business Plan) is approved by the Government. TA to strengthen BOL capacity to supervise and monitor PCG delivered This indicator measures the delivery of technical assistance to BOL to strengthen its capacity (Yes/No) to supervise and monitor the PCG Fund. The delivery of this TA is ongoing and progressing well. Several workshops have been delivered. In addition, two study visits were conducted and supervision procedural documents developed. The international consultant has submitted drafts of legislation and guidelines. Legal framework for the establishment of LCGF need to be in place. Component 3: Technical Assistance and Project Management Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Aug/2020 51.00 14-Nov-2023 600.00 Nov/2025 Comments on TA to SMEs was launch in September 2023 as targeted training to a selected number of achieving targets MSMEs. Second phase of the training is expected to be launched in August 2024 Number of businesses supported with technical assistance (Number) This indicator measures the number of MSMEs that receive a technical assistance from the project. 32 32 of which women-led Comments on Women-led enterprises are those in which women are in leadership positions and in control enterprises (Number) achieving targets of that business, regardless of whether they own 51 percent of the company. 0.00 Aug/2020 0.00 15-May-2024 0.00 15-May-2024 3.00 Nov/2025 Aug 29, 2024 Page 5 of 8 The World Bank Implementation Status & Results Report Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project (P174169) Comments on This indicator will measure impact of TA to PFIs, which will focus on assisting participating PFIs Number of SME Banking achieving targets to develop and adopt a SME business strategy. Strategies and new SME banking products developed The project is considering revising this indicator as the TA needs/demands from PFIs has and adopted by PFIs evolved since project appraisal. (Number) 0.00 Aug/2020 90.00 15-May-2024 90.00 15-May-2024 75.00 Nov/2025 Comments on 90% is from the PFIs evaluations as well as the independent training survey conducted by the achieving targets M&E team of the Project. Survey which will be conducted by the firm is expected in Q4 2024. Percentage of beneficiaries that feel project activities This indicator measures the satisfaction of beneficiary MSMEs and PFIs. This indicator will reflected their needs (Citizen measure the results of surveys conducted as part of the monitoring and evaluation strategy Engagement indicator) implemented during Project implementation to beneficiary MSMEs and PFIs about their (Percentage) satisfaction with the financial products offered under the Project. The survey results and the report will be shared by the PMU and will contain proposed recommendations for project adjustments. The PMU will, in turn, make the necessary adjustment to activities, as informed by citizen feedback. 0.00 Sept/2020 100.00 15-May-2024 100.00 15-May-2024 75.00 Nov/2025 Comments on The GRM is in place and 5 complaints have been received to date. In addition, a Booklet of Percentage of complaints achieving targets guidelines that combine the Environmental Management, Work safety Measures, Grievance handled from Grievance Redress Mechanism (GRM) for MSMEs in Lao Language was completed and submitted to Redress mechanism in place National Management Committee on Unexploded Ordinance, and the Department of Natural (disaggregated by Resources and Environment Inspection (DoNREI) for their review and comments on number/percent of women) September 12, 2022. The DoNREI provided comments on September 19, 2022, which were (Percentage) addressed by DOSMEP on September 30, 2022. The revised booklet has been published and circulated to MSMEs. Aug 29, 2024 Page 6 of 8 The World Bank Implementation Status & Results Report Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project (P174169) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA-67900 Effective 40.00 40.00 0.00 19.55 17.89 48.87% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-67900 Effective 22-Oct-2020 11-Nov-2020 21-Jan-2021 28-Nov-2025 28-Nov-2025 8. KEY DATES Aug 29, 2024 Page 7 of 8 The World Bank Implementation Status & Results Report Micro, Small, and Medium Enterprise Access to Finance Emergency Support and Recovery Project (P174169) Key Events Planned Actual Approval 22-Oct-2020 22-Oct-2020 Effectiveness 21-Jan-2021 21-Jan-2021 Mid-Term Review No. 01 26-May-2023 26-May-2023 Operation Closing/Cancellation 28-Nov-2025 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Aug 29, 2024 Page 8 of 8