The World Bank Implementation Status & Results Report
MSME Competitiveness Project (P177895)
MSME Competitiveness Project (P177895)
EUROPE AND CENTRAL ASIA | Moldova | Finance, Competitiveness and Innovation Global Practice |
IBRD/IDA | Investment Project Financing | FY 2022 | Seq No: 3 | ARCHIVED on 07-Dec-2023 | ISR58942 |
Implementing Agencies: Ministry of Economic Development and Digitalization, Republic of Moldova
Key Dates
Key Project Dates
Bank Approval Date: 27-Jun-2022 Effectiveness Date: 25-Nov-2022
Planned Mid Term Review Date: 15-Nov-2024 Actual Mid-Term Review Date:
Original Closing Date: 02-Aug-2027 Revised Closing Date: 02-Aug-2027
pdoTable
Project Development Objectives
Project Development Objective (from Project Appraisal Document)
The Project's Development Objective is i) to reduce the regulatory burden, increase access to finance, increase export competitiveness of Moldovan
enterprises, and (ii) in case of an Eligible Crisis or Emergency, respond promptly and effectively to it.
Has the Project Development Objective been changed since Board Approval of the Project Objective?
No
Components Table
Name
Digitization and Regulatory Reform:(Cost $21.85 M)
Access to Finance:(Cost $15.00 M)
MSME Development and Export Competitiveness:(Cost $12.25 M)
Project Management and Implementation:(Cost $0.09 M)
Contingency Emergency Response Component
Overall Ratings
Name Previous Rating Current Rating
Progress towards achievement of PDO Satisfactory Satisfactory
Overall Implementation Progress (IP) Satisfactory Satisfactory
Overall Risk Rating Moderate Moderate
Implementation Status and Key Decisions
Most activities under the project are progressing well since the project became effective in November 2022. The project has disbursed 22
percent since its effectiveness. Activities in Component 1, Digitization and Regulatory reform continue to progress, despite some observed
challenges. The Inspection Monitoring Unit (IMU) remains under-resourced, lacking the necessary capacity to perform its functions. In the technical
note on recommendations to enhance the capacity of IMU the WB task team shared with the PIU in June 2023, the IMU should hire at least four
additional staff. Along with defining an organizational structure of the IMU with staff roles and responsibilities, this is the minimum capacity required
for the IMU to coordinate business inspections efficiently and ensure the implementation of inspection performance indicators. The Bank team will
organize an additional mission during December to follow up on the key performance indicators' progress with the IMU.
12/7/2023 Page 1 of 9
The World Bank Implementation Status & Results Report
MSME Competitiveness Project (P177895)
For Component 2, Access to Finance, the disbursement conditions were lifted in July 2023, followed by a withdrawal for the first tranche to support
the Credit Guarantee Fund. ODA has also finalized the terms and conditions of the portfolio guarantee scheme and interest for the instrument
among banks remains strong. The call for expression of interest among banks was launched in November 2023. It is important that in parallel to the
launch of the scheme ODA also takes steps towards implementation of the institutional strengthening actions for CGF/ODA. These actions include
disbursement conditions for the second tranche and could be funded under the allocation for technical assistance under Component 2.
For Component 3, MSME Development and Export competitiveness, the work is also underway. The matching grants program was launched in
April 2023. ODA is implementing this program in parallel to its Internationalization Program. Slow implementation of the program has been noted. In
order to expedite the process, lessons learned from prior matching grant programs should be applied to the simplification of the application and
evaluation process. ODA is also responsible for export readiness and supplier linkages programs. Preparation has also begun to establish the
supplier linkage programs, carry out the first export mission to Romania, and start export morning activities.
Risks
Systematic Operations Risk-rating Tool
Risk Category Rating at Approval Previous Rating Current Rating
Political and Governance Substantial Substantial Substantial
Macroeconomic High High High
Sector Strategies and Policies Moderate Moderate Moderate
Technical Design of Project or Program Moderate Moderate Moderate
Institutional Capacity for Implementation and
Substantial Substantial Substantial
Sustainability
Fiduciary Moderate Moderate Moderate
Environment and Social Moderate Moderate Moderate
Stakeholders Moderate Moderate Moderate
Other Low Low Low
Overall Moderate Moderate Moderate
Results
PDO Indicators by Objectives / Outcomes
Reduced regulatory burden
IN01372044
►Reduction in compliance costs for businesses in meeting regulatory requirements (cumulative) (Amount(USD), Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 2,000,000.00 0.00 0.00 8,000,000.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
12/7/2023 Page 2 of 9
The World Bank Implementation Status & Results Report
MSME Competitiveness Project (P177895)
Reduction in compliance costs for businesses in meeting regulatory requirements as a result of regulatory
reforms supported by the Project. This is a cumulative indicator and it will be measured using the standard
Comments: World Bank Group Compliance Cost Saving methodology. The baseline value for this indicator is based
on the results of the CEP II project and data from the ICR. The baseline value is USD 2 mln.
Increased access to finance
IN01372043
►Total volume of loans guaranteed by CGF under the Project (cumulative) (Amount(USD), Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 100,000,000.00
Date 31-Jan-2022 06-Oct-2022 30-Nov-2023 30-Jun-2027
This is cumulative volume of loans to MSMEs by PFIs. This should track both the guaranteed and the
Comments: non-guaranteed portion of the loans that benefit from a CGF guarantee. This amount is equivalent to the
private capital mobilized by Component 2.
IN01372047
Share of medium and long term lending (>24 months) guaranteed by CGF under the Project (Percentage, Custom Supplement)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 60.00
IN01372048
►Beneficiaries reached with financial services (Number, Corporate)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 900.00
Date 31-Dec-2021 06-Oct-2022 30-Nov-2023 30-Jun-2027
The indicator measures the number of persons benefited from financial services in operations supported
Comments:
by the Bank, and the number of businesses that benefited from financial services.
Increased Export Competitiveness
IN01372045
►Value of exports generated by MSMEs supported by Project activities (cumulative) (Amount(USD), Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 175,000,000.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
Cumulative value of exports generated by MSMEs supported by project activities with ODIMM (including
Comments:
CGF and MGF), IA export missions.
IN01372046
►Percentage of MGF recipients that are engaged in a new export-oriented activity (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 18.00 55.00
12/7/2023 Page 3 of 9
The World Bank Implementation Status & Results Report
MSME Competitiveness Project (P177895)
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
MGF beneficiaries exporting existing products to new markets or new customers, exporting for the first
Comments: time, exporting new products to existing or new markets, or selling new products into export-oriented
value chains.
Intermediate Results Indicators by Components
Component 1: Digitization and Regulatory Reform
IN01372049
►Share of the inspection agencies progressing on their key performance indicators (Percentage, Custom, PBC)
Baseline Actual (Previous) Actual (Current) End Target
Value 10.00 10.00 25.00 50.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
Share of the inspection agencies progressing on their key performance indicators in totality. This indicator
Comments: means that only those inspection agencies that implement their KPIs fully on any given year, will be
recorded.
IN01372052
►Upgrading the e-Inspection system to enable risk-based inspections and automation of inspection visit reports (Yes/No, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value No No No Yes
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2026
Upgrading the e-Inspection system to enable risk-based inspections as well as automation of inspection
visit reports. It will include the Inspections Registry data sources, risk assessment criteria, risk-based
Comments:
inspections planning, performance analysis, as well as automating inspection visits. This will also involve
equipping pilot inspectorates with relevant equipment to enable modern inspections.
IN01372055
►Digitization of G2B services (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 78.00 78.00 85.00 105.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
Comments: Number of G2B permissive documents at the national level digitized through MMIP.
IN01372057
►Increase in the online application rate by business for getting business permits through the electronic One-Stop-Shop (Percentage,
Custom, PBC)
Baseline Actual (Previous) Actual (Current) End Target
Value 50.00 50.00 51.00 60.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
12/7/2023 Page 4 of 9
The World Bank Implementation Status & Results Report
MSME Competitiveness Project (P177895)
Increase in the online application rate by the business for getting business permits through the electronic
Comments:
One-Stop-Shop.
IN01372059
►Number of accredited NQI services provided by local testing laboratories available to firms increased by 50 (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 50.00
Date 31-Dec-2021 14-Apr-2023 30-Nov-2023 30-Jun-2027
Number of accredited NQI services provided by local testing laboratories available to firms to increase at
Comments: least by 50. This indicator will measure new services offered to the private sector as a result of
intervention.
IN01372062
New accredited calibration laboratories available to firms (cumulative) (Number, Custom Supplement)
Baseline Actual (Previous) Actual (Current) End Target
Value 3.00 3.00 3.00 5.00
IN01372063
►Percentage of participants reporting satisfied or very satisfied with workshops (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 88.00 90.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
Comments: Percentage of participants reporting satisfied or very satisfied with workshops
Component 2: Access to Finance
IN01372050
►Number of jobs created (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 3,000.00
Date 31-Dec-2021 06-Oct-2022 30-Nov-2023 30-Jun-2027
Comments: Number of jobs created as a result of CGF, MGF, export missions and export readiness.
IN01372053
►Share of female-owned/female-managed MSMEs supported by CGF under the Project (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 30.00
Date 31-Jan-2022 06-Oct-2022 30-Nov-2023 30-Jun-2027
Comments: Share of female-owned/female-managed MSMEs supported by CGF under the Project.
12/7/2023 Page 5 of 9
The World Bank Implementation Status & Results Report
MSME Competitiveness Project (P177895)
Component 3: MSME Development and Export Competitiveness
IN01372051
►Establishment of export readiness and supplier development (local linkages) programs for MSMEs (Yes/No, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value No No No Yes
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 31-Jul-2023
ODA will establish export readiness and supplier development programs to help MSMEs to increase
Comments: competitiveness and become export ready. This will also enable linking with exporting value chains.
IN01372054
►Number of MSMEs benefiting from export readiness, supplier development or export missions programs (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 55.00 750.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
This indicator will track number of MSMEs that benefited from export missions, supplier development or
Comments: export readiness programs. These three programs are aimed at helping MSMEs to become more
competitive, export ready and link them with exporting value chains of export markets.
IN01372056
Number of MSMEs benefiting from export missions (Number, Custom Breakdown)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 57.00 240.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
IN01372058
Number of MSMEs benefiting from export readiness program (Number, Custom Breakdown)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 450.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
IN01372060
Number of MSMEs benefiting from supplier development program (Number, Custom Breakdown)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 60.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
IN01372061
►Cumulative number of MSMEs receiving Matching Grants (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 17.00 320.00
12/7/2023 Page 6 of 9
The World Bank Implementation Status & Results Report
MSME Competitiveness Project (P177895)
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
Comments: Cumulative number of MSMEs receiving Matching Grants.
IN01372064
►Percentage of MGF beneficiaries satisfied with engagement (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 70.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
Comments: Percentage of MGF beneficiaries satisfied with engagement.
IN01372065
►Share of Matching Grants beneficiaries that are female—owned/female-managed (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 24.00 36.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
Comments: Share of Matching Grants beneficiaries that are female-owned or female-managed.
IN01372066
►Number of roundtables / training sessions (face-to-face, virtual) on climate change (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 2.00 11.00
Date 31-Jan-2022 14-Apr-2023 30-Nov-2023 30-Jun-2027
Number of roundtables / training sessions for MSMEs, PFIs, other stakeholders (face-to-face, virtual)
Comments:
regarding climate change to encourage climate-smart businesses
Performance-Based Conditions
IN01372067
►PBC 1 Share of the inspection agencies progressing on their key performance indicators (Percentage, Intermediate Outcome,
1,000,000.00, 0.00%)
Baseline Actual (Previous) Actual (Current) June 30, 2026
Value 10.00 10.00 25.00 --
Date -- 14-Apr-2023 30-Nov-2023 --
12/7/2023 Page 7 of 9
The World Bank Implementation Status & Results Report
MSME Competitiveness Project (P177895)
IN01372068
►PBC 2 Increase in the online application rate by business for getting business permits through the electronic One-Stop-Shop (Percentage,
Intermediate Outcome, 1,000,000.00, 0.00%)
Baseline Actual (Previous) Actual (Current) June 30, 2026
Value 50.00 50.00 51.00 --
Date -- 14-Apr-2023 30-Nov-2023 --
Data on Financial Performance
Disbursements (by loan)
Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed
P177895 IBRD-94230 Effective USD 18.60 18.60 0.00 10.66 8.41 56%
P177895 IDA-71740 Effective USD 31.40 31.40 0.00 0.97 31.66 3%
Key Dates (by loan)
Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date
P177895 IBRD-94230 Effective 27-Jun-2022 07-Jul-2022 25-Nov-2022 02-Aug-2027 02-Aug-2027
P177895 IDA-71740 Effective 27-Jun-2022 07-Jul-2022 25-Nov-2022 02-Aug-2027 02-Aug-2027
Cumulative Disbursements
12/7/2023 Page 8 of 9
The World Bank Implementation Status & Results Report
MSME Competitiveness Project (P177895)
Restructuring History
There has been no restructuring to date.
Related Project(s)
There are no related projects.
12/7/2023 Page 9 of 9