The World Bank Implementation Status & Results Report DRC:Financial Infrastructure and Markets (P145554) DRC:Financial Infrastructure and Markets (P145554) AFRICA | Congo, Democratic Republic of | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 10 | ARCHIVED on 30-Oct-2019 | ISR38627 | Implementing Agencies: Ministry of Finance, Central Bank of Congo, FPM ASBL, FPM SA, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 18-Mar-2014 Effectiveness Date: 03-Sep-2014 Planned Mid Term Review Date: 15-Sep-2017 Actual Mid-Term Review Date: 05-Jun-2017 Original Closing Date: 31-Dec-2020 Revised Closing Date: 31-Dec-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to modernize payments infrastructure and increase availability of term financing to Micro, Small and Medium Enterprises (MSMEs). Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Modernization of Payments Infrastructure for Inclusive Finance:(Cost $10.73 M) Component 2: Technical Support to Financial Market Development:(Cost $7.05 M) Component 3: Line of Credit for Medium to Long Term Finance:(Cost $11.22 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Following the restructuring of the project in June, 2018, there has been steady progress in implementation among all components of the project. The following is a summary of implementation progress to date: Component 1. Modernization of Payments Infrastructure for Inclusive Finance a. The construction of the interbank communication network has been completed since 27 November 2015, the date of operational acceptance. This activity is thus completely completed. b. The contract for the acquisition and installation of computer software and hardware for the multi-currency automated transfer system (ATS) and a central securities depository (CSD) allocated to Montran Corporation was completed in September 29, 2017 when these systems were put into production in the national currency and on March 04, 2019 for foreign currency transactions. From the time it went into production until 31 July 10/30/2019 Page 1 of 7 The World Bank Implementation Status & Results Report DRC:Financial Infrastructure and Markets (P145554) 2019, the ATS system has settled 448,253 payment orders, including 415,387 transactions in national currency and 32,866 transactions in foreign currencies, as follows: 52,010 transactions in national currency in 2017; 231,740 transactions in national currency in 2018; 131,637 transactions in national currency and 32,866 transactions in foreign currencies, of which 32,000 in USD and 866 in the compartment in Euro in 2019 . c. The last activity of this component is the acquisition of a national interbank electronic money switch that would enable the routing of authorizations, the clearing of payment transactions and the withdrawal by domestic interbank card. As of September 20, 2019, the configuration of the equipment received and installed is completed. 2. Component 2: Technical support for the development of the financial market a. The BCC is receiving support to strengthen the regulation and supervision of the microfinance sector. This support consists of elaborating the supervision procedures for savings and loans cooperatives organized in networks under umbrella organizations in conformity with current regulations. b. Capacity building activities for cooperatives and MFIs were carried out by FPM ASBL. According to activity reports communicated by the FPM ASBL since 2014, the overall achievement of the activities assigned to the FPM ASBL have greatly exceed the objectives set. The activity report from January 2014 to December 2017, notes that the FPM ASBL managed 87 projects, including 31 direct technical assistance (DTA) with 20 partner financial institutions, and 56 cross-cutting technical assistance projects, including 28 training sessions, 18 forums and 10 market studies. In total, nearly 60 financial institutions benefited, directly or indirectly, from the FPM ASBL. FPM ASBL has served a variety of financial institutions from savings and loans cooperative associations (“COOPEC”), MFIs, specialized MSME banks and universal banks targeting SMEs. Component 3. Credit line for medium and long-term financing of micro, small and medium-sized enterprises Implementation of both the pilot and second phases of the line of credit are ongoing by FPM SA and the BCC (via its refinancing window) respectively. As of date, about 73 percent of the amount allocated to the line of credit has been disbursed to MSMEs as loans. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- High High Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Substantial Substantial Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Modernize payments Infrastructure IN00746313 ►Number of annual transactions through the Real Time Gross Settlement System (RTGS) in USD (Number, Custom) 10/30/2019 Page 2 of 7 The World Bank Implementation Status & Results Report DRC:Financial Infrastructure and Markets (P145554) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 7,227.00 70,800.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 The operationalization of transactions in Foreign currencies became effective from march 04, 2019. Going forward, the number of annual transactions through the Real Time Gross Settlement System (RTGS) in Comments: USD is going to be measurable. IN00746315 ►Number of annual transactions through the Real Time Gross Settlement System (RTGS) in CDF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 92,412.00 175,013.00 144,216.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 IN00746327 ►Number of annual transactions through the Automated Clearing House (ACH) made in CDF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 103,927.00 210,096.00 458,080.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 IN00746328 ►Number of annual transactions through the Automated Clearing House (ACH) made in USD (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 11,822.00 6,352,666.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 Transactions in US dollars (USD) are only going to commence through the Automated Clearing House Comments: (ACH) at the beginning of March 2019. Increase availability of term financing to Micro, Small and Medium Enterprises (MSMEs). IN00746314 ►Share of women-owned MSMEs that received a loan through the Project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.86 59.00 50.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 In the implementation of the second phase of the project, some of the beneficiary IFPs such as IFOD target female MSMEs and Self-Help-Groups (70 percent of their credit portfolio), which foresees an increase both in the number of MSMEs that shall benefit from loans under the line of credit and also the percentage of women-owned MSMEs. Comments: The previously entered percentage of Share of women-owned MSMEs that received a loan through the Project was erroneous. The Team has called on the PIU to be more diligent in the collection and transmission of data from the IFI & PFIs. IN00746326 10/30/2019 Page 3 of 7 The World Bank Implementation Status & Results Report DRC:Financial Infrastructure and Markets (P145554) ►Number of MSMEs that received a loan through the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 59.00 883.00 2,500.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 Intermediate Results Indicators by Components Component 1: Modernization of Payments Infrastructure for Inclusive Finance IN00746329 ►Number of financial institutions and mobile network operators connected to the Switch (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 16.00 23.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 Comments: IN00746332 ►Number of banks and other financial institutions connected to the ATS/CSD of the National Payment System (NPS) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 16.00 20.00 22.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 IN00746334 ►A National Payments Card Retail Switch company is established (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 The non-creation of the Societe Monetique Interbancaire du Congo (SMIC) is behind schedule but negotiations are on-going between the Central Bank and the Bankers' Association and MNOs. In order to avoid delays in the deployment of the system, it is envisaged that initially, the Central Bank Comments: could set up the company as the sole shareholder and then open up the capital to the banking and E- Money issuers eventually. The target date for the National Payments Card Retail Switch to go operational is November 2019. IN00746336 ►A National Payment System (NPS) Department is operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes 10/30/2019 Page 4 of 7 The World Bank Implementation Status & Results Report DRC:Financial Infrastructure and Markets (P145554) Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 IN00746338 ►An Automated Transfer System (ATS) is operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 Component 2: Technical Support to Financial Market Development IN00746330 ►Portfolio review of SOFIDE completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 The next step is hiring of a Consultant to assist SOFIDE develop a restructuring plan. Comments: IN00746333 ►Portfolio at Risk - Microfinance and cooperatives (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.40 20.00 20.00 9.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 IN00746335 ►Percentage of MFIs and cooperatives having provided information on Portfolio at Risk (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 87.80 82.35 94.00 95.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 The drop in the percentage of MFIs and cooperatives having provided information on Portfolio at Risk Comments: experienced a drop due to the late provision of the data to the Central Bank by some MFIs. IN00746337 ►Percentage of MFIs and cooperatives providing quarterly regulatory financial statements (Balance Sheets and Profit/Loss Accounts) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 82.40 82.35 82.35 90.00 Date 31-Dec-2014 21-Feb-2019 01-Oct-2019 31-Dec-2020 Component 3: Line of Credit for Medium to Long Term Finance IN00746331 ►Volume of disbursed loans through the Project (Amount(USD), Custom) 10/30/2019 Page 5 of 7 The World Bank Implementation Status & Results Report DRC:Financial Infrastructure and Markets (P145554) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,840,000.00 6,054,727.00 10,000,000.00 Date 31-Dec-2014 08-Mar-2019 01-Oct-2019 31-Dec-2020 The initial pilot phase was US$ 3 million. The second phase of the line of credit has become effective and disbursements started in early march of Comments: US$ 840,000. It is expected that on processing pending applications from other PFIs, the BCC should be able to disburse 50 percent of the line of credit by end of March 2019. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P145554 IDA-H9260 Effective USD 30.00 30.00 0.00 23.38 4.02 85% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145554 IDA-H9260 Effective 18-Mar-2014 03-Apr-2014 03-Sep-2014 31-Dec-2020 31-Dec-2020 Cumulative Disbursements 10/30/2019 Page 6 of 7 The World Bank Implementation Status & Results Report DRC:Financial Infrastructure and Markets (P145554) Restructuring History Level 2 Approved on 01-Aug-2016 ,Level 2 Approved on 06-Jun-2018 Related Project(s) There are no related projects. 10/30/2019 Page 7 of 7