The World Bank Report No: ISR7041 Implementation Status & Results Malawi Business Environment Strengthening Technical Assistance (BESTAP) (P103773) Public Disclosure Copy Operation Name: Business Environment Strengthening Technical Assistance Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 28-Dec-2011 (BESTAP) (P103773) Country: Malawi Approval FY: 2007 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Industry, Trade and Private Sector Development Key Dates Board Approval Date 24-May-2007 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 30-Sep-2010 Last Archived ISR Date 28-Dec-2011 Effectiveness Date 10-Oct-2007 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date 18-Oct-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the ease of doing business processes in Malawi in order to increase foreign and domestic private sector investment in the economy. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Strengthening private property rights institutions and business facilitation 3.40 Strengthening private sector development support institutions and services 3.70 Promoting access to finance and productivity enhancement 3.70 Capacity building and implementation support 2.30 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Progress towards achievement of the PDO remains Satisfactory since the last mission in April 2011, on account of the new refocused PDO that was put into place as a result of the restructuring of 2011. Overall implementation progress remains satisfactory. Page 1 of 5 The World Bank Report No: ISR7041 Following the signing of the Amended EU/World Bank administration Agreement in January 2011, a Grant Agreement between the Government of Malawi and the World Bank (as administrator of the EU grant) was signed on 18 May, 2011 and EU co-financing has started being utilized to finance agreed activities. A second order restructuring (re-allocation of proceeds) was also approved by the Acting Country Director in April 2011. Public Disclosure Copy Actual IDA expenditure to date, including commitments was at 99.9%. All EU funds will have to be committed by 31 December 2011. 50% of EU is yet to be disbursed but requests for the 50% balance will have to be made in time to have resources available before the 31 December 2011 date. All fiduciary aspects of the project are satisfactory. The project procurement and financial management are currently rated as satisfactory, and have been since project effectiveness. Financial management is Satisfactory and the project is up-to-date with Interim Financial Reports (IFRs) as well as Audit Reports. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Reduction of costs to formally start a business Text Value 134.7% 108.4 70% by end of project Date 31-Jul-2007 04-Nov-2011 31-Jul-2012 Comments This has remained the same from the 2011 DB Report. Growth of turnover in firms accessing Business Text Value 0% 20% Growth Scheme(BUGS) Date 31-Jul-2007 04-Nov-2011 31-Jul-2012 Comments A consultant is in the process A similar study is expected to of being engaged and work is be done towards the end of due to start in April, 2011 to the project to establish end do a study to establish this target. indicator. Intermediate Results Indicators Public Disclosure Copy Page 2 of 5 The World Bank Report No: ISR7041 Indicator Name Core Unit of Measure Baseline Current End Target Legislative backlog of laws impacting cost of Text Value 40 11 22 doing business reduced from 40 to 22 Bills by Date 31-Jul-2007 29-Apr-2011 31-Jul-2012 Public Disclosure Copy mid term review and cleared by end of project Comments Tremendous progress has been achieved on backlog and laws that been reviewed and submitted, mostly due to legal draftsperson/consultant engaged by BESTAP who works on reviews on a full time basis Reduction in time taken to settle commercial Text Value 337 calendar days 96 <180 calendar days disputes. Date 31-Jul-2007 04-Nov-2011 31-Jul-2012 Comments The Commercial Court has made substantial progress from the 337 days it used to take when the project started. Reduction in time taken to formally start a Text Value 37 days 39 days 10 days business. Date 31-Jul-2007 04-Nov-2011 31-Jul-2012 Comments According to the DB Report, this indicator has not improved. The expectation is that computerization and systems improvement being carried out at business registry will have significant impact on this indicator as well as new Single Business License Bill. Reduction in time taken to register property Text Value 118 calendar days 69 calendar days 60 calendar days title. Date 31-Jul-2007 29-Apr-2011 31-Jul-2012 Public Disclosure Copy Comments There has a deterioration since the previous year. The City of Blantyre but not at national level. Automation of lands registry tobe carried out in 2011 should be positive impact in reduction in time. Reduction of time taken to obtain licences and Text Value 185 calendar days 200 calendar days 30 calendar days permits. Date 31-Jul-2007 04-Nov-2011 31-Jul-2012 Page 3 of 5 The World Bank Report No: ISR7041 Comments This indicator has not changed according to the 2012 DB Report. Working with the IFC under BESTAP, Public Disclosure Copy a mapping study of obtaining licenses in Malawi was carried out in 2010 and recommendations are being implemented led by Commissioner of Physical Planning. Reduction of turnover in firms accessing Text Value 0% n/a 20% Business Growth Scheme (BUGS). Date 31-Jul-2007 04-Nov-2011 31-Jul-2012 Comments A consultant is in the process of being engaged and work is due to start in April, 2011 to do a study to establish this indicator. Volume of Bank Support: Institutional Amount(USD) Value 0.00 163040.00 1800000.00 Development - SME Date 10-Aug-2007 04-Nov-2011 31-Dec-2012 Comments Data gathered from retrofit exercise Data on Financial Performance (as of 01-Jun-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P103773 IDA-H2930 Effective 24-May-2007 17-Jul-2007 10-Oct-2007 31-Dec-2012 31-Dec-2012 P103773 TF-91620 Closed 28-Apr-2011 13-May-2011 13-May-2011 31-Dec-2011 31-Dec-2011 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P103773 IDA-H2930 Effective USD 15.00 15.00 0.00 15.44 0.00 103.00 P103773 TF-91620 Closed USD 3.94 3.68 0.00 2.31 1.46 63.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR7041 Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History Level one Approved on 19-Nov-2010, Level two Approved on 02-May-2011 Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5