The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) Competitiveness for Tourism Development (P146666) AFRICA WEST | Cabo Verde | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 11 | ARCHIVED on 22-Feb-2022 | ISR50247 | Implementing Agencies: Ministério das Finanças, Unidade de Gestao de Projectos Especiais (UGPE) Key Dates Key Project Dates Bank Approval Date: 10-May-2016 Effectiveness Date: 15-Nov-2016 Planned Mid Term Review Date: 10-Dec-2019 Actual Mid-Term Review Date: 31-Oct-2019 Original Closing Date: 31-May-2021 Revised Closing Date: 31-May-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to create the conditions necessary to increase investment into and diversification of the tourism sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Enhancing governance framework of the tourism sector:(Cost $2.27 M) Component 2: Diversify tourism sector and increase inclusiveness of tourism-led growth by strengthening the competitiveness of local MSMEs:(Cost $2.24 M) Component 3: Project implementation:(Cost $0.49 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low Implementation Status and Key Decisions Within the final stretch of implementation, all project ratings remain overall Satisfactory and the 2021 workplan progressed with positive achievements. Overall, the disbursement rate stands at 94.8 percent (vis-à-vis the original loan amount of US$5 million) within a difficult COVID-19 stricken context. Notwithstanding, considering the non-achievement of 6 of the 12 intermediate results indicators, authorities solicited a four-month project extension, from January 31 to May 31, 2022, which was approved on January 28, 2022, to enable follow-up mainly on four indicators which are considered nearly or in imminence of being achieved. In terms of recently concluded or ongoing activities, the following points are highlighted per component: Component 1: Enhancing governance framework of the tourism sector  Technical assistance to the Tourism Institute of Cabo Verde (ITCV): The consultancy led by an international senior advisor meant to provide an analysis on the mandate, resources, and strategic plan of ITCV is nearing conclusion and the final report was submitted. The 2/22/2022 Page 1 of 8 The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) report, still to be presented at MTT-level, notes severe constraints and issues with ITCV’s current organization and operational structure which are preventing it from accomplishing its mandate, including on marketing and product development. The proper structuring and reinforcement of the institute, as well as proper articulation with MTT and other stakeholders, is key to enable the implementation of the new Tourism Operational Program (2022–2026) which was recently approved. The MTT noted that a revised financial arrangement (potentially including a heightened percentage of fund allocation to ITCV) is under study, but a more comprehensive solution could be thought through including also additional human resources and optimized structure of ITCV.  Residential tourism study: The final report and action of the residential tourism study, commissioned by the MTT and seeking recommendations on how to, inter alia, tackle legal and operational supervision aspects related to complementary online-based lodging solutions (e.g., AirBnB), was delivered in December 2021. The report could benefit from actionable recommendations on ways forward concerning the research topic laid out in the terms of reference. MTT was advised to follow-up in the context of the project extension on a potential re-edit of the report, considering also recommendations and findings laid out in the Tourism Code White Paper concerning the legal framework aspect.  Sal Investment Forum: Concerning the UNWTO Global Tourism Investment Forum in Africa, held in Sal Island during September 2-4, 2021, the team advised MTT to dully conduct an effectiveness survey, and that the organization and funding of these large-scale investment forums, should take place within the context of a consolidated FDI attraction strategy which should be implemented in tandem with other promotion channels.  Tourism Code: MTT was advised to consider the Tourism Code White Paper as an opportunity to consolidate the due diligence on tourism regulatory framework upgrade and to relaunch the momentum around key legislative gaps in an integrated manner, including licensing and taxation of accommodations listed and transacted through online platforms, nautical tourism regulations, among other topics. Component 2: Diversify tourism sector and increase inclusiveness of tourism-led growth by strengthening the competitiveness of local MSMEs  Quality seal program for small accommodations: The team acknowledged the good progress in the implementation of this Program by IGQPI under the difficult and challenging conditions imposed by the pandemic. As of end-December 2021, 15 small accommodations had been certified and 46 had benefited from TA activities as noted in the IR results framework. Going forward, IGQPI noted that it intended to transmit all TA activities (including the management of the trained consultants) to Pró-Empresa whilst the auditing and certification would remain with IGQPI. With project closure, the financial sustainability of the Program is also expected to be supported by the Tourism Fund, although precise details and volume of resources were not disclosed. The Bank team cautioned that IGQPI should continue to lead and develop the program in cooperation with other stakeholders, and particularly leveraging the marketing element which is intended to stimulate more participation by small accommodations. The team also advised that the TA capacity be safeguarded properly through a service-level agreement with Pró-Empresa (beyond the existing MoU).  Tourism georeferencing app: Commissioned by the MTT, the project-funded consortium that developed the tourism georeferencing app presented an advanced version in an official ceremony on January 14, 2022. The online app is intended to provide tourists with key information on tourism sights and venues as well as complementary information related to transport, health and other topics while visiting the different islands. Whilst the platform’s potential is interesting, the team noted need to secure maintenance and data update requirements that are implied in the app. During discussions held, it was not clear whether ITCV has the administrative or technical capacity to ensure that the platform remains online and is properly disseminated with inbound tourists to ensure user uptake. The team recommended that ITCV examine, with the consortium, options and frameworks to ensure the continued use and maintenance of the platform.  Establishment of an online-based movable collateral registry: The development of the online registration platform and website, as well as corresponding legal framework, has been completed since the last quarter of 2021 (https://rgm.gov.cv/). However, the operationalization of the platform is being hampered by the lack of an inter-ministerial legal decree led by Ministry of Justice to ensure legal security in all transactions, an issue which hadn’t been transmitted in the context of the prior mission. The Competitiveness Unit is troubleshooting the matter with the Ministry of Justice in the coming weeks to ensure full effective rollout. The contractor is also due to provide follow-on training post-implementation support. Beyond this critical training and capacity building, a critical necessity to ensure the reform is successful is conducting the necessary outreach and dissemination to the business community and financial institutions. The team suggested that authorities may explore additional resource pools that may support this effort. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Low Low 2/22/2022 Page 2 of 8 The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) Macroeconomic Substantial Low Low Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Low Low Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Moderate Low Low Results PDO Indicators by Objectives / Outcomes Increased investment generated IN01102579 ►Value of Investment catalyzed (disaggregated by islands and type of investors) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 273.00 273.00 35.00 Date 25-Apr-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 These are the following investments catalyzed currently being accounted for: 1. ROBINSON Club de Cabo Verde (SM/Sal, € 49.500.000) |Verification Source: Resolução nº 110/2019 - Establishment Agreement celebrated between CV and CLUB HOTEL CV, S.A. (https://kiosk.incv.cv/V/2019/9/6/1.1.94.2908/p1518); 2. Hotel Ilha Sal Palace (SM/Sal, € 72.000.000) |Verification Source: Resolução Nº 111/2019 - Comments: Establishment Agreement celebrated between CV and Arco Verde - Hotelaria e Turismo, S.A (https://kiosk.incv.cv/V/2019/9/6/1.1.94.2908/p1518); 3. Royal Horizon Ponta do Sino (SM/Sal, € 130.000 M) |Verification Sources: Resolução nº 102/2020 - Establishment Agreement celebrated between CV and Decameron New Horizons Ponta Sino S.A (https://kiosk.incv.cv/V/2020/7/27/1.1.87.3360/p1858). IN01102580 ►Number of MSMES certified (with Quality Seal or ISO/HACCP or Safe & Clean) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 125.00 208.00 40.00 Date 25-Apr-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 Indicator is well beyond target. It includes  11 (Eleven) with ISO/HACCP from Technical Qualification for Tourism (CERTIFIC I & II);  114 (A hundred and fourteen) establishments were certified with Sanitary Seal under a Comments: consultancy by Preverisk Group, and financed by CTD as requested by MTT. IGQPI projects to have fifteen small accommodations certified with quality seal until end of project. The final number will be added to 125 accumulated as of end jul 2021 2/22/2022 Page 3 of 8 The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) IN01102581 of which, owned or managed by women (%) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 45.00 47.00 33.00 Overall Comments PDO UGPE reported an amount of $US 273 million (well above the target of US$35 million), associated with three larges investments in Sal island which were signed in project-funded investment forums. The Bank team advised to assess the status of these projects and dully mention all the project activities that contributed to the investment decision. The team also encouraged the UGPE to scan beyond the larger projects, looking at also other smaller tourism-related initiatives that didn’t receive contractual investment benefits. UGPE reporteda tally of 208 beneficiary MSME firms which benefited from some level of project-supported certification (small accommodation quality seal, ISO/HACCP or Safe & Clean), 47 percent of which managed by women (exceeding targets of 40 and 33 percent respectively). The team suggested conducting a rapid satisfaction survey with beneficiary companies to collect feedback and attest the positive effects of the certifications on business and sustainability practices. Intermediate Results Indicators by Components Component 1: Enhancing governance framework of the tourism sector IN01102582 ►Start-up of operations of the Tourism Institute (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 10-May-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 Was rephrased during the restructuring level 2 conducted in 2020 to update the M&E framework, using the new nomenclature "Tourism Institute" or Instituto do Turismo, to reflect the new name used by the Comments: Govt for the agency in charge of tourism development. IN01102584 ►Development of a national tourism strategy (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 10-May-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 The Govt has adopted the GoPEDS-Turismo (Grandes Opções do Plano Estratégico de Desenvolvimento Sustentável do Turismo no horizonte 2030), which constitutes the Govt's strategy for the development of Comments: the tourism sector. IN01102586 ►Number of Tourism Master Plans adopted (Number, Custom) 2/22/2022 Page 4 of 8 The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 7.00 Date 25-Apr-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 The Ministry of Tourism has adopted the Master Plans/TMP. In fact, based on eacm TMP, the Ministry has developed the "Master Plan Integrado do Turismo de Cabo Verde - Programa Operacional do Comments: Turismo 2021 a 2026" which was discussed and approved during the National Tourism Council meeting, promoted by the MTT on December 26, 2020. IN01102588 ►Number of Tourism Zoning Plans (POTs) adopted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 4.00 6.00 Date 25-Apr-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 The indicator has been updated to capture only those POT that have been officially published and not all supported by the Projet. Two have been officialy published and four remain pending for approval and Comments: publication. The remaining 4 ) POTs, one for São vicente and 3 for Sal, are being revised and INGT plans to have all 6 POTs published before Project closure. IN01102590 ►Tourism Code enacted by the Government (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 25-Apr-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 The draft of the Tourism Code White Paper is still going through the final revisions and improvements by the contracted firm. According to DGTT, the White Paper will be published and disseminated in the coming months, including a review of existing regulations and discussion of best international practices; however, the White Paper is not expected to lead to the development and publication of a Tourism Code Comments: for the time being. The Project will thus not achieve the related indicator (i.e. Tourism Code enacted by the Government) whose intent was to have a unified and umbrella regulatory framework facilitating access to existing laws, diplomas and regulations and introducing updates and changes in identified gaps or shortcomings. IN01102592 ►Number of Investment Forums Organized (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 3.00 Date 25-Apr-2016 20-Jan-2021 11-Feb-2022 31-Jan-2022 Two Investment Forums organized up to Dec. 2020. A third Forum was supposed to be supported/funded by CTD in 2020. Due to the Pandemic situation, the planned forum for 2020 was canceled. Yet, the 64th UNWTO Commission for Africa meeting will be followed by the 2nd Edition of the UNWTO Global Tourism Comments: Investment Forum in Africa, to be held in Sal Island, Cabo Verde, from 2nd to 4th September 2021 and it will be supported by the Project. 2/22/2022 Page 5 of 8 The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) Component 2: Diversify tourism sector and increase inclusiveness of tourism-led growth by strengthening the competitiveness of local MSMEs IN01102583 ►Number of small accommodations that benefited from technical assistance under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 46.00 46.00 50.00 Date 10-May-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 Progress towards the expected Result: 46 (Fourty-six) have benefited from TA: in 2020: 1. 16 in 2020; 2. 30 in 2021. 3. Under the Sanitary Seal Program, various small accommodation will benifected with TA to comply with COVID - 19 health protocols. the number will be measured and double checked in coming Comments: months. Verification Source: Alexandre Garrid o Reports, IGQPI Progress Reports and Presentations. 7 local Consultants TA Reports. IN01102585 ►Number of MSME representatives who benefited from training activities supported by the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 194.00 240.00 100.00 Date 10-May-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 Progress on or towards the expected Result - 194 MSMEs representatives have from benefited from training activities, as of end of July. Specifically, they are:12 from CERTIFIC I, 8 from CERTIFIC II, 46 Comments: from Quality Label;114 from Sanitary Seal and 14 from training initiatives conducted by THR. IN01102587 Of which women (%) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 44.80 36.00 35.00 IN01102589 ►National Certification Company established (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 25-Apr-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 Creation of the Cerification Entity is still conditioned by funding that the Chambers of Commerce/CC haven´t been able to mobilize yet. Considering latest developments shared by the CC,the Bank team Comments: does not expect the Entity to be established by Project closure. IN01102591 ►Technical and Feasibility Study of Mindelo´s Oceanarium approved (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 25-Apr-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 2/22/2022 Page 6 of 8 The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) IN01102593 ►Legal Framework for Insolvency and Collateral Registry approved (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 25-Apr-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 IN01102594 ►Establishment of a moveable collateral registry (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 10-May-2016 26-Jul-2021 11-Feb-2022 31-Jan-2022 Target to be achieved before CTD closure. Collateral Registry plataform already develeloped and tested. Comments: The platform will be available within a few months, as planned by UC/Doing Business. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P146666 IDA-58010 Effective USD 5.00 5.00 0.00 4.78 0.38 93% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P146666 IDA-58010 Effective 10-May-2016 17-Jun-2016 15-Nov-2016 31-May-2021 31-May-2022 Cumulative Disbursements 2/22/2022 Page 7 of 8 The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 29-Nov-2018 ,Level 2 Approved on 11-Jun-2020 ,Level 2 Approved on 16-Apr-2021 ,Level 2 Approved on 28-Jan-2022 Related Project(s) There are no related projects. 2/22/2022 Page 8 of 8