The World Bank Implementation Status & Results Report Emergency Support for MSMEs Project (P174028) Emergency Support for MSMEs Project (P174028) EUROPE AND CENTRAL ASIA | Kyrgyz Republic | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2021 | Seq No: 4 | ARCHIVED on 09-Jun-2022 | ISR51404 | Implementing Agencies: Ministry of Finance of the Kyrgyz Republic, Project Implementation Unit at the Ministry of Finance ( Kyrgyz Republic) Key Dates Key Project Dates Bank Approval Date: 30-Jul-2020 Effectiveness Date: 31-Mar-2021 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 31-Jul-2024 Revised Closing Date: 30-Jun-2027 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to support MSMEs in response to and during the recovery from the COVID-19 crisis. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Reimbursable Financial Assistance to MSMEs:(Cost $72000000.00 M) Portfolio Risk Sharing Facility:(Cost $25500000.00 M) Project Implementation, coordination and management:(Cost $2500000.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The project is on track to achieve its Project Development Objective (PDO). For Component 1, the agreed changes in terms of eligibility criteria and maximum threshold which came into force in December 2021 have led to accelerated disbursement of RFA to MSMEs. As of May 11, 2022, KGS 322,854,000 or US$ 3.9 million equivalent have been transferred to 11 commercial banks. A total amount of around KGS234,214,534 or US$ 2.84 million equivalent has been distributed to 730 MSME beneficiaries. Out of those 730 beneficiaries, 448 are female-headed MSMEs. Further, the MOF has concluded an agreement with an additional three SDAs, expanding the number of SDAs from eight in November 2021 to eleven in April 2022. For Component 2, the PRSF was successfully launched in January 2022, after extensive preparatory work. As of end of April 2022, PRSF registered 1,069 borrowers with total cumulative credit of 688 million soms (US$8.4 million equivalent), of which 238 million soms (US$ 2.9 million equivalent) are covered by the guarantee. Of the total borrowers, 23 percent are women-led firms. The World Bank Board of Directors approved an Additional Financing (AF) for the Emergency Support for MSMEs Project on April 29, 2022. The Financing Agreement for AF was signed on June 9, 2022. The next step is ratification by the Parliament. Several critical project modifications are 6/9/2022 Page 1 of 6 The World Bank Implementation Status & Results Report Emergency Support for MSMEs Project (P174028) attached to the AF, including the conditions of disbursement of tranches for PRSF and the expended use of the RFA for MSMEs' recovery from the crises. The Bank team hopes ratification to be completed before the summer recess of the Parliament. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate High Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial 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 Other -- Moderate -- Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes MSMEs are able to stay in business by paying their expenses and investing in the recovery. IN01140486 ►Share of MSMEs that survived the COVID-19 crisis out of those MSMEs that received the RFA (greater than or equal to). (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 65.00 Date 31-Jul-2020 15-Nov-2021 11-May-2022 30-Jun-2027 MSMEs obtain credits guaranteed under the Portfolio Risk-Sharing Facility. IN01140487 ►Share of MSMEs that survived the COVID-19 crisis out of those MSMEs that benefited from the Portfolio Risk Sharing Facility (greater than or equal to) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/9/2022 Page 2 of 6 The World Bank Implementation Status & Results Report Emergency Support for MSMEs Project (P174028) Value 0.00 0.00 100.00 85.00 Date 31-Jul-2020 26-Oct-2020 30-Apr-2022 30-Jun-2027 Intermediate Results Indicators by Components Component 1. Reimbursable Financial Assistance (RFA) to MSMEs. IN01140488 ►Number of MSMEs that received RFA under the project. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 730.00 60,000.00 Date 31-Jul-2020 15-Nov-2021 11-May-2022 30-Jun-2027 IN01140491 ►Number of jobs retained. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 922.00 65,000.00 Date 31-Jul-2020 15-Nov-2021 11-May-2022 30-Jun-2027 Number of jobs retained in MSMEs that receive RFA to continue paying salaries to employees (counting Comments: only the enterprises that are still in the market upon project completion). IN01140494 ►Number of female headed MSMEs that received RFA. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 448.00 25,000.00 Date 31-Jul-2020 15-Nov-2021 11-May-2022 30-Jun-2027 Number of female headed firms of all MSMEs that received RFA (based on the enterprise survey data, Comments: one third of all MSMEs are female headed). IN01140496 ►Average annual revenue growth rate of MSMEs beneficiaries (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.50 0.00 0.00 4.00 Date 18-Feb-2022 18-Feb-2022 18-Feb-2022 30-Jun-2027 IN01140498 ►Average annual employment growth rate of MSMEs beneficiaries (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/9/2022 Page 3 of 6 The World Bank Implementation Status & Results Report Emergency Support for MSMEs Project (P174028) Value 4.00 0.00 0.00 3.50 Date 18-Feb-2022 18-Feb-2022 18-Feb-2022 30-Jun-2027 Component 2. Portfolio Risk Sharing Facility (PRSF). IN01140489 ►Number of MSMEs that benefited from the PRSF. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,069.00 7,500.00 Date 31-Jul-2020 15-Nov-2021 30-Apr-2022 30-Jun-2027 IN01140492 ►Accumulated volume of MSME credits guaranteed under the PRSF. (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 8,373,850.00 80,000,000.00 Date 31-Jul-2020 15-Nov-2021 30-Apr-2022 30-Jun-2027 IN01140495 ►Number of female headed MSMEs that benefited from the PRSF. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 237.00 3,000.00 Date 31-Jul-2020 15-Nov-2021 30-Apr-2022 30-Jun-2027 IN01140497 ►Leverage of financing for the PRSF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 2.00 Date 31-Jul-2020 15-Nov-2021 30-Apr-2022 30-Jun-2027 Total volume of MSME credits guaranteed under the PRSF over total project's financing for PRSF [this will Comments: show the leverage of our financing] IN01140499 ►Volume of guarantees called under the PRSF (for monitoring purposes, no target). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N/A N/A N/A N/A Date 31-Jul-2020 15-Nov-2021 15-Nov-2021 30-Jun-2027 Comments: This indicator is only for monitoring the amount of PFIs' losses covered by the PRSF and has no targets. 6/9/2022 Page 4 of 6 The World Bank Implementation Status & Results Report Emergency Support for MSMEs Project (P174028) Component 3. Project implementation, coordination and management. IN01140490 ►Share of beneficiaries that report that the project has established effective engagement processes. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 100.00 75.00 Date 31-Jul-2020 15-Nov-2021 11-May-2022 30-Jun-2027 IN01140493 ►Number of disbursement administrators/financial institutions participating in the RFA and/or PRSF. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 15.00 10.00 Date 31-Jul-2020 15-Nov-2021 11-May-2022 30-Jun-2027 Number of disbursement administrators/financial institutions who responded to the government's invitation Comments: to disburse the RFA and issue credits guaranteed under the PRSF. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P174028 IDA-67580 Effective USD 25.00 25.00 0.00 3.00 22.01 12% Not P174028 IDA-70940 USD 25.00 25.00 0.00 0.00 24.20 0% Effective P174028 IDA-D7060 Effective USD 25.00 25.00 0.00 6.62 18.10 27% Not P174028 IDA-E0260 USD 25.00 25.00 0.00 0.00 24.20 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P174028 IDA-67580 Effective 30-Jul-2020 02-Sep-2020 31-Mar-2021 31-Jul-2024 31-Jul-2024 Not P174028 IDA-70940 29-Apr-2022 -- -- 30-Jun-2027 30-Jun-2027 Effective P174028 IDA-D7060 Effective 30-Jul-2020 02-Sep-2020 31-Mar-2021 31-Jul-2024 31-Jul-2024 Not P174028 IDA-E0260 29-Apr-2022 -- -- 30-Jun-2027 30-Jun-2027 Effective 6/9/2022 Page 5 of 6 The World Bank Implementation Status & Results Report Emergency Support for MSMEs Project (P174028) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P177962-Additional Financing for Emergency Support for MSMEs 6/9/2022 Page 6 of 6