The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) SOUTH ASIA | Bangladesh | IBRD/IDA | Investment Project Financing (IPF) | FY 2023 | Seq No: 4 | Archived on 26-Sep-2024 | ISR01662 Implementing Agencies: Palli Karma-Sahayak Foundation (PKSF) 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 26-Apr-2023) To increase resource-efficient and resilient green growth of microenterprises (MEs). Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Enabling Capacity and Systems for Green Growth of MEs:(Cost 32,000,000.00) Providing Access to Finance for MEs to enable green growth:(Cost 251,000,000.00) Improving PKSF Project Management, Communications, Monitoring and Evaluations, and Knowledge Management:(Cost 17,000,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate 4. KEY ISSUES & STATUS Sep 26, 2024 Page 1 of 9 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) 4.1 Implementation Status and Key Decisions The project was declared effective in August 2023 with the objective of increasing resource-efficient and resilient green growth of microenterprises in Bangladesh. In the past year, focus has been on establishing the PIU fully, operationalizing the RECP line of credit to POs and conducting knowledge and capacity building programs for partner organizations and microenterprises. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 03 - 27 Mar Proposed Rating 27 Apr 2023 2024 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 Overall Moderate Moderate Moderate Sep 26, 2024 Page 2 of 9 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jun/2023 0.00 30-Jun-2023 Comments on Climate resilience indicator. The indicator counts the number of MEs that continue to use at achieving targets 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 Supported MEs adopting at pollution (air emissions, wastewater, and waste) and reference indicators such as product least two climate-resilient output. These are used to calculate resource-productivity such as product output per unit of RECP practices (Number) resource consumption and pollution-intensity calculaed 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. Supported female 0.00 owned MEs adopting at Comments on Gender indicator least two climate- achieving targets resilient RECP practices (Percentage) Sep 26, 2024 Page 3 of 9 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) 0.00 30-Jun-2023 Comments on Climate resilience indicator. This indicator reflects knowledge improvements on the climate achieving targets resilience of MEs through capacity building conducted by POs and PKSF. The methodology Supported MEs with for conducting the knowledge assessments will be described in the Project Operations improved knowledge on Manual. Climate resilience refers to the ability to withstand or bounce back from external climate vulnerability shocks, particularly in dealing with the impact of climate change: e.g., (i) flood response; (ii) (Number) high salinity and drought resistant solutions; (iii) response to extreme hat; 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. Supported MEs with 0.00 30-Jun-2023 increased revenues by 10% Comments on This indicator measures the increased revenues of supported MEs to assess the impact of or more compared to non- achieving targets the adoption of climate-resilient RECP practices compared to a counterfactual. supported MEs (Number) Supported female 0.00 owned MEs with Comments on Gender indicator increased revenues by achieving targets 10% or more compared to non-supported female owned MEs (Percentage) 6.2 Intermediate Results Indicators by Components Not Categorized Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 30-Jun-2023 Sep 26, 2024 Page 4 of 9 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Non-revenue generating Comments on Non-revenue generating common facilities are established or upgraded to an acceptable common facilities established achieving targets standard (to be defined in the Project Operations Manual) in ME clusters to promote or upgraded and operational climate-resilient RECP and enhance green business growth businesses. The type of support (Number) will be identified by POs through consultations with the ME clusters. Non-revenue 0.00 generating common Comments on Gender indicator facilities established or achieving targets upgraded and operational owned by ME clusters that have women in the management committee (Percentage) 0.00 30-Jun-2023 Comments on Key environmental performance indicators include wastewater (m3), electricity (kwh), solid achieving targets waste (ton per year), air pollution (PM2.5 and/or ammonia concentration), GHG emissions (CO2 equivalent). Supported MEs tracking at The tracking of environmental key performance indicators depends on the business models least one environmental key of the specific ME as reflected in the RECP profiles. See annex 1 of the Project Appraisal performance indicator Document for examles of climate-resilient RECP practices based on typology of ME activities. (Number): m3 of wastewater, Based on climate-resilient RECP assessments and in consultation with MEs, the POs decide kwh energy, solid waste in which key environmental performance indicator to be tracked with a specific ME. tons, ammonia in parts per Key environmental performance indicators can be tracked in the following ways: (a) Air billion, CO2 equivalent of quality meters installed in ME clusters, and data on PM2.5 and ammonia recorded manually GHG emissions (Number) and/or digitally; (b) Water quality meters installed where relevant; (c) GHG emissions can be calculatedased 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. 0.00 30-Jun-2023 Sep 26, 2024 Page 5 of 9 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Comments on Climate-resilient RECP profiles include the key environmental performance indicators and achieving targets input and output information of the MEs. POs obtain training from the assessment team to Climate-resilient RECP prepare climate-resilient RECP profiles in consultation with targeted MEs. Climate-resilient profiles prepared and RECP profiles are validated by POs and PKSF on a sample basis. The RECP profiles provide the validated for MEs (Number) 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. Climate-resilient RECP 0.00 profiles prepared and Comments on Gender indicator validated for female achieving targets owned MEs (Percentage) 0.00 Jun/2023 0.00 30-Jun-2023 Loans provided to MEs Comments on This indicator counts the number of loan agreements signed by MEs under the SMART (Number) achieving targets project. A ME can sign more than one loan agreement. Loans provided to MEs 0.00 30-Jun-2023 committed to adopting at Comments on This indicator measures the volume of loans in the US$ million provided to MEs committed least two climate-resilient achieving targets to adopting at least two climate-resilient RECP practices through the line of credit for RECP practices sustainable climate-resilient RECP practices and technologies to provide sub-loans an the (Amount(USD)) line of credit for revenue-generating common facilities. Revenue-generating common 0.00 30-Jun-2023 facilities established or Comments on Revenue-generating common facilities are established or upgraded (to be defined in the upgraded and operational achieving targets Project Operation Manual) to promote climate-resilient RECP and green business growth (Number) practices. The type of support will be identified through consultations with MEs and POs. 0.00 30-Jun-2023 50.00 Jun/2028 Environmental and Climate Comments on POs institutionalize climate-resilient RECP principles by establishing permanent ECCUs at the Change Units (ECCUs) achieving targets POs’ level. ECCUs at the PO level monitor ESF implementation to ensure that the activities of established and operational MEs meet the ESF requirements. An ECCU consists of one permanently employed specialist at POs (Number) at minimum. Sep 26, 2024 Page 6 of 9 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Environmental clubs 0.00 30-Jun-2023 established and operational Comments on Environmental clubs are established in ME clusters to strengthen awareness of MEs on at ME clusters (Number) achieving targets climate-resilient RECP and to facilitate long-term behavioral changes. Grievances registered related 0.00 30-Jun-2023 100.00 Jun/2028 to delivery of project benefits Comments on Citizen engagement indicator. The project registers any grievances related to the delivery of addressed in a timely fashion achieving targets project benefits from project beneficiaries in the MIS. Timely fashion means that grievances (Percentage) are responded to with follow-up action within two months after receipt of grievance. Sep 26, 2024 Page 7 of 9 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) 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-73000 Effective 250.00 250.00 0.00 6.60 241.69 2.64% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-73000 Effective 27-Apr-2023 28-Apr-2023 27-Aug-2023 31-Dec-2028 31-Dec-2028 8. KEY DATES Sep 26, 2024 Page 8 of 9 The World Bank Implementation Status & Results Report Sustainable Microenterprise and Resilient Transformation (SMART) (P178996) Key Events Planned Actual Approval 27-Apr-2023 27-Apr-2023 Effectiveness 19-Jun-2023 27-Aug-2023 Mid-Term Review No. 01 27-Apr-2026 Operation Closing/Cancellation 31-Dec-2028 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Sep 26, 2024 Page 9 of 9