The World Bank Report No: ISR8648 Implementation Status & Results Egypt, Arab Republic of Affordable Mortgage Finance DPL (P112346) Public Disclosure Copy Project Name: Affordable Mortgage Finance DPL (P112346) Program Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 24-Nov-2012 Country: Egypt, Arab Republic of Approval FY: 2010 Product Line: IBRD/IDA Region: MIDDLE EAST AND NORTH AFRICA Lending Instrument: Development Policy Lending Implementing Agency(ies): Key Dates Board Approval Date 24-Sep-2009 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date Last Archived ISR Date 10-Jun-2012 Effectiveness Date 27-Apr-2010 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) The main development objective of the DPL is to reform the current system of inefficient and poorly targeted supply-side subsidies for housing for the broad low and middle income sector and replace them with a transparent and economically efficient demand side subsidy system. Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status Overview The implementation of the operation has been smooth, especially with the appointment of the New Minister of Housing and Urban Development who has fully endorsed the program and has a clearer vision on housing policies. Overall, the Affordable Mortgage Finance Program has made good progress in terms of delivery and targeting of housing subsidies. It Public Disclosure Copy has delivered over 3,600 mortgage subsidies up to October 2012. Given the turbulent situation in Egypt over the past 18 months this is a remarkable achievement. More importantly, the program was well-targeted; reaching out to households with an average income of LE 1,650 per month (which is right in the middle of the target income range of LE 1,000 to LE 2,500 as stated in the program). In fact, two thirds of beneficiaries have incomes below LE 1,600. Assuming each beneficiary received the maximum amount, total disbursements amounts to around LE 65 million. Six different areas are currently benefiting from the program including Damietta, El Shorouk, 6th of October, El Obour, 10th of Ramdan, and El Menia. The Affordable Mortgage Program is set to expand significantly over the coming year. The capacity of the Guarantee and Subsidy Fund (GSF), the implementing entity, has been built, and it is now equipped to expand its activities, catering the demand for housing by the low- and middle-income households that have been underserved. Results Results Indicators Page 1 of 5 The World Bank Report No: ISR8648 Indicator Name Core Unit of Measure Baseline Current End Target Number of GSF staff dedicated to the Text Value 12 70 90 mortgage subsidy program (staff) Date 24-Aug-2009 11-Oct-2012 31-Dec-2013 Public Disclosure Copy Comments Average turnaround time to process a Text Value 6 weeks 3 weeks 3 weeks mortgage subsidy application Date 24-Aug-2009 11-Oct-2012 31-Dec-2013 Comments Time to register a real estate title Text Value 3 months 2 months 1 month Date 24-Aug-2009 11-Oct-2012 31-Dec-2013 Comments Timely and accurate time-series data points to Text Value No data Revising the main Revising the main revise the main parameters of the mortgage points parameters of the mortgage parameters of the mortgage subsidies program subsidies program Date 24-Aug-2009 11-Oct-2012 31-Dec-2013 Comments Disbursement of subsidized loans per year-- Number Value 4000.00 7600.00 65000.00 minimum (number of subsidized loans) Date 24-Aug-2009 11-Oct-2012 31-Dec-2013 Comments The projected number of subsidies disbursed has not yet been reached due to individuals reluctance to buy with the current economicand political uncertainty, as well as lack of commitment and vision by the interim Government post revolution. Number of banks participating in program Number Value 1.00 4.00 5.00 Date 24-Aug-2009 11-Oct-2012 31-Dec-2013 Comments Public Disclosure Copy Number of mortgage finance companies Number Value 2.00 4.00 6.00 participating in program Date 24-Aug-2009 11-Oct-2012 31-Dec-2013 Comments Submission of quarterly reports on process and Text Value Quarterly Reports Quarterly Reports Quarterly Reports program indicators Date 24-Aug-2009 11-Oct-2012 31-Dec-2013 Comments Page 2 of 5 The World Bank Report No: ISR8648 Improved housing sector information leading to Text Value Better Housing Market Better Housing Market House-price index to urban house-price index for selected urban areas. Information Information areas Date 24-Aug-2009 11-Oct-2012 31-Dec-2013 Public Disclosure Copy Comments Data on Financial Performance (as of 14-Jul-2011) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P112346 IBRD-77470 Effective 24-Sep-2009 12-Dec-2009 27-Apr-2010 31-Dec-2013 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112346 IBRD-77470 Effective USD 300.00 300.00 0.00 200.00 100.00 67.00 Tranches Tranche 1 Description The first tranche amounting to US$99.25 million was disbursed on June 7, 2010. Amount (USD) Expected Release Date Actual Release Date Status 99,250,000 01-Jun-2010 07-Jun-2010 Pending Released Tranche Condition Description Status If Not Met If Delayed Enactment of Joint Ministerial Decrees to establish the Housing Finance Subsidy Policy Met Committee and to determine the core featuresof the subsidy program Not Met Issuance of a Joint Ministerial Memo from the Minister of Investment and Minister of Met Housing Utilities and Urban Development, to separate functions and staff for subsidy and Not Met guarantee operations of GSF, shall have been submitted to the Prime Minister. Public Disclosure Copy Issuance of a Joint Ministerial Memo by the Minister of Investment and Minister of Housing, Met Utilities and Urban Development No. 1864 halting the property development role of GSF. Not Met Adoption by GSF#s Board and endorsement by the Minister of Investment of the Met operational manual for the Affordable Mortgage FinanceProgram Not Met Issuance of a Joint Ministerial Memo from the Minister of Investment and Minister of Met Housing, Utilities and Urban Development No. 1864 indicating that GSF is the Not Met implementing agency for the Affordable Mortgage Subsidy Program. Implementation of fast-track property registration for all mortgaged properties under the Met Affordable Mortgage Finance Program Not Met Page 3 of 5 The World Bank Report No: ISR8648 Introduction of measures to withdraw previously allocated but unutilized land for affordable Met housing. Not Met Establishment of a tracking system to eliminate double allocations to households between Met the proposed mortgage finance subsidy scheme and any other scheme. Public Disclosure Copy Not Met A draft amendment to Real Estate Finance Law 148 of 2001, adjusting the debt payment- Met to-income ratio from 25%to 33% has been submitted to the Cabinet of Ministers. Not Met A Prime Ministerial Decree No. 1864 adjusting the maximum income level for subsidy Met beneficiaries to LE 2,500 monthly income for households has been issued. Not Met An analysis of the housing demand studies of main urban areas and placing the data in the Met public domain has been completed. Not Met Enacting Article 6 of Building Law No. 119 for year 2008, creating an entity with the Met mandate of collecting housing market information Not Met Tranche 2 Description Second tranches will be disbursed following the fulfillment of policy actions implemented as per the loan agreement. Amount (USD) Expected Release Date Actual Release Date Status 100 01-Jun-2011 14-Jul-2011 Pending Released Tranche Condition Description Status If Not Met If Delayed Strengthening of the legal, regulatory and institutional framework for the Mortgage Finance Met Subsidies Program through determinationof the subsidy parameters in line with changes in Not Met macro-economic and housing sector changes. Development of an effective and efficient mortgage finance subsidy mechanism through Met establishment by MOI of on-site and off-site monitoring and evaluation systems. Not Met Improvement of the institutional framework to enhance transparency and targeting of Met housing subsidies through compilation of housing market information. Not Met Public Disclosure Copy Tranche 3 Description Third tranches will be disbursed following the fulfillment of policy actions implemented as per the loan agreement. Amount (USD) Expected Release Date Actual Release Date Status 100 30-Jun-2013 Pending Released Tranche Condition Description Status If Not Met If Delayed Strengthening of the legal, regulatory and institutional framework for the Mortgage Finance Met On Track Subsidies Program by introduction of a mortgage insurance or guarantee function. Not Met Page 4 of 5 The World Bank Report No: ISR8648 Further development of an effective and efficient mortgage finance subsidy mechanism Met On Track through taking into account the results of thefirst impact evaluation Not Met Improvement of the institutional framework to enhance transparency and targeting of Met On Track housing subsidies through expansion of the housing market information database, by Public Disclosure Copy Not Met inclusion of a house price list by sector in main urban areas. Key Decisions Regarding Implementation Various developments have taken place in the implementation of the Affordable Mortgage Finance Program. Restructuring History There has been no restructuring to date. Related Operations There are no related projects. Public Disclosure Copy Page 5 of 5