Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PNG - Small and Medium Enterprise Access to Finance Project (P120707) EAST ASIA AND PACIFIC | Papua New Guinea | Finance & Markets Global Practice | IBRD/IDA | Investment Project Financing | FY 2011 | Seq No: 12 | ARCHIVED on 15-Dec-2017 | ISR30391 | Implementing Agencies: Department of Commerce and Industry, Department of Treasury Key Dates Key Project Dates Bank Approval Date:03-May-2011 Effectiveness Date:15-Sep-2011 Planned Mid Term Review Date:28-Feb-2014 Actual Mid-Term Review Date:28-Oct-2013 Original Closing Date:31-Dec-2024 Revised Closing Date:31-Dec-2024 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed development objective of this project is to facilitate access to sustainable credit for small and medium enterprises and thus contribute to incremental growth of SME employment and income. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Risk Share Facility:(Cost $11.90 M) Performance-based TA to participating financial intermediaries:(Cost $2.95 M) TA to enhance SME Capacity:(Cost $5.03 M) TA to the Department of Commerce and Industry:(Cost $6.62 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 12/15/2017 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Implementation Status and Key Decisions The Project became effective on September 15, 2011. All conditions for withdrawal of IDA credit were met for all categories specified in the Financing Agreement as of March 12, 2012 with IDA issuing confirmation letters to the GoPNG. The 1st loss coverage from IDA for RSF with BSP has been transferred to the TF account established for the RSF Component as of June 20, 2012The Year-to-Date overall implementation is rated as Moderately Unsatisfactory. The MU rating reflects the delay in 2nd RSF implementation, which is linked to PDO results indicators. GoPNG and IDA agreed to restructure the 2nd RSF component. GoPNG is to propose restructuring plan within the next 6 months. Component 1 – RSF with BSP is rated Satisfactory; the 2nd RSF FI implementation is rated Moderately Unsatisfactory (MU). Component 2 - Performance-Based Grant implementation is rated Satisfactory (S)Component 3 – TA to SMEs is rated Satisfactory (S)Component 4 – Project Management and TA to Government is rated Moderately Satisfactory (MS) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Substantial Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Increase flow of credit to SMEs (in PNG Kina million) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 146.00 492.00 250.00 Date 01-Aug-2011 30-Sep-2016 30-Sep-2016 29-Jun-2018 12/15/2017 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Comments The unit of reporting is PGK million. Need to convert to USD in final report PHINDPDOTBL  Number of new SME loans (under BSP RSF.) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1,828.00 1,828.00 1,000.00 PHINDPDOTBL  Loans to business owned by women only and women as principal partners (Number of loans) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 262.00 262.00 100.00 PHINDPDOTBL  Loans to business owned by women only and women as principal partner (in PGK million) (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 25.00 25.00 15.00 PHINDPDOTBL  Increase numbers of formal sector SMEs (incl. women managed) (Number (Thousand), Custom) 12/15/2017 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Baseline Actual (Previous) Actual (Current) End Target Value 45.00 -- 50.00 54.00 Date 01-Jan-2013 -- 30-Dec-2016 29-Jun-2018 PHINDPDOTBL  incremental employment generated by SMEs participating in RSF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 500.00 -- 2,149.00 600.00 Date 28-Sep-2012 -- 30-Sep-2016 30-Sep-2016 Comments Source: BSP reports BSP started SME lending in Sept 2012. Targets to increase 5% annually PHINDPDOTBL  Incremental SME revenue generated by SMEs participating in RSF (in PGK) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 -- -- 25.00 Date 28-Sep-2012 -- -- 30-Sep-2016 Comments Average annual increase of 5%. Data to be collected from BSP and SME borrowers during Beneficiary Survey in 2018 Overall Comments Intermediate Results Indicators 12/15/2017 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PHINDIRITBL  Return on assets (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.50 2.00 2.00 1.50 Date 31-Aug-2011 30-Dec-2016 30-Dec-2016 30-Dec-2016 Comments Baseline: > 1.5 PHINDIRITBL  Improved SME managerial and financail skills - # trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 774.00 774.00 640.00 Date 31-Aug-2011 13-Dec-2016 13-Dec-2016 31-Dec-2017 PHINDIRITBL  Numbers of women in SMEs trained (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 391.00 391.00 300.00 PHINDIRITBL  % trainees obtaining the loans (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 20.00 60.00 12/15/2017 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PHINDIRITBL  Improved GoPNG capacity to supoport SME sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The SME Baseline survey findings were used to support DCI 2nd SME Survey, and NEC in the drafting project beneficiary of new SME survey, and review of Development Plan for RSF and other SME 2016-2018 and finance options planned Final Survey National Economic Value Baseline survey to inform government of and M&E Development Strategy. the demand of SMEs, Reports The 2nd SME survey is impact of the RSF to be implemented in project, and demand for 2017 to monitor the other financing changes of demands of instruments by SMEs local SMEs during the implementation of SME policies. Date 28-Feb-2014 31-Oct-2016 01-Dec-2017 30-Jun-2016 PHINDIRITBL  Training of provincial DCI officials (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 36.00 36.00 40.00 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P120707 IDA-49280 Effective USD 21.91 21.91 0.00 12.37 7.98 56% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 12/15/2017 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) P120707 IDA-49280 Effective 03-May-2011 14-Jun-2011 15-Sep-2011 31-Dec-2024 31-Dec-2024 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/15/2017 Page 7 of 7 Public Disclosure Copy