The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) Mongolia Export Development Project (P147438) EAST ASIA AND PACIFIC | Mongolia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 6 | ARCHIVED on 30-Jun-2019 | ISR37564 | Implementing Agencies: Government of Mongolia, Ministry of Finance, Agricultural Reinsurance Company, now MongolianRe Key Dates Key Project Dates Bank Approval Date: 07-Jul-2016 Effectiveness Date: 22-Dec-2016 Planned Mid Term Review Date: 30-Sep-2018 Actual Mid-Term Review Date: 28-Sep-2018 Original Closing Date: 30-Jun-2021 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the project is to support Mongolian Small and Medium size firms (SMEs) in the non-mining sectors to strengthen their export capabilities and expand access to export markets. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Development of a new line of export finance products:(Cost $10.00 M) Component 2: Export competitiveness enhancement.:(Cost $8.50 M) Component 3: Project Implementation Support:(Cost $1.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Although there has been no significant Project implementation progress in the last 6 months, the matching grants component continued to deliver results: new exporters and new export products emerged, number of internationally-recognized certificates increased, and the export volume for the 85 beneficiaries grew further. Project has disbursed US$2.53 million to date which is about 13 percent of the Project funds. It is important to restructure the Project to get its implementation back on track. 6/30/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Moderate Moderate Substantial Fiduciary Moderate Moderate Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Strenghten SMEs export capabilities and expand access to export markets IN00714841 ►Increase in export volume (by price) by the Project beneficiaries (average) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 60.00 15.00 Date 22-Dec-2016 28-Sep-2018 31-Dec-2018 30-Jun-2021 IN00714842 ►Number of firms that obtain internationally-recognized quality certification following support from the Matching Grant Facility(cumulative, disaggregated by the number of firms owned by women) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 7.00 15.00 Date 22-Dec-2016 28-Sep-2018 25-Mar-2019 30-Jun-2021 IN00714843 ►Number of firms that start exporting following participation in project activities (cumulative, disaggregated by the number of firms owned by women) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/30/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) Value 0.00 6.00 8.00 15.00 Date 22-Dec-2016 28-Sep-2018 25-Mar-2019 30-Jun-2021 IN00714844 ►Export Credit Insurance Products (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 22-Dec-2016 28-Sep-2018 25-Mar-2019 30-Jun-2021 Overall Comments PDO Although the Project has been "on hold" the management and disbursement of the existing Matching Grants contracts did continue and as a result, the export capabilities of the beneficiaries have further improved, as reflected in the results matrix. Project has 85 matching grant (MGF) beneficiaries and over 100 training beneficiaries. The selected results to date include: 1. Export Volume for 85 MGF beneficiaries increased with growth of 60%. o Products export: Compared to 2016 ($USD 16.3 million), export volume of beneficiaries increased to $USD26 million (as of Dec 31, 2018) with 60% growth rate. o Services export:  Inbound tourism sales have increased to $USD 4.8 million from $USD 2 million, compared to 2016.  MFG beneficiaries in IT sector have exported web content templates. 2. New exporters: 8 new exporters in the areas of food, health and medical services, leather products, light industry, and furniture have emerged. New exporters trade volume $USD 211,180. Exports to Australia, Russia, Japan, Germany, China. 3. Export diversification: 4 new export products have emerged. o Be-spoke - Goodyear technology EuGo Shoes o Wood activated carbon-charcoal o “Odel” smart bag o Crypto currency monitoring application 4. Increased value addition in exports: Four companies have graduated from being a semi-manufacturer to a more value-added exporter. o Dehaired Cashmere (Washed & combed wool/cashmere) to End-user cashmere clothing 3 SMEs o Semi-Processed animal skins to finished processed leather strips, Crust leather-1 SME 5. Internationally-recognized certification: 7 beneficiaries have already received Internationally recognized quality certifications; 31 more companies are on their way (obtaining certificates is a lengthy process) o 4 enterprises received ISO 9001; o 1 enterprise received HACCP; o 2 enterprises received ISO 22000; 6. Other highlights: 6/30/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) o 8 enterprises have signed partnership contracts and are preparing to export in the areas of cashmere & textiles, leather products, food, and IT & content development. o Increased International presence: Branch pop-up stores are opened by 4 enterprises in 8 countries. Intermediate Results Indicators by Components Component 1: Development of a new line of export finance products IN00714845 ►Number of firms benefitting from export insurance and guarantee contracts issued by Subsidiary of AgRe (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 22-Dec-2016 28-Sep-2018 25-Mar-2019 30-Jun-2021 IN00714848 ►Increase in export revenues for firms benefitting from export insurance products issued by Subsidiary of AgRe (average) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 22-Dec-2016 28-Sep-2018 25-Mar-2019 30-Jun-2021 Component 2: Export competitiveness enhancement. IN00714846 ►MGF beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 56.00 85.00 90.00 Date 22-Dec-2016 28-Sep-2018 25-Mar-2019 30-Jun-2021 SMEs receiving matching grants. Comments: IN00714849 Female beneficiaries (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 28.00 39.00 36.00 IN00714851 ►Increase in export revenues for MGF beneficiaries (average) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 60.00 10.00 Date 22-Dec-2016 28-Sep-2018 25-Mar-2019 30-Jun-2021 IN00714853 6/30/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) ►Volume of Bank Support: Institutional Development - SME (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.10 1.60 6.50 Date 22-Dec-2016 28-Sep-2018 25-Mar-2019 30-Jun-2021 Amounts committed for component 2 (matching grants and training) Comments: IN00714856 ►Growth in non-China exports by Project beneficiaries (percentage, average) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 6.00 15.00 Date 22-Dec-2016 28-Sep-2018 31-Dec-2018 30-Jun-2021 Component 3: Project Implementation Support IN00714847 ►Beneficiaries aware of project info. and project investments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 372.00 400.00 120.00 Date 22-Dec-2016 28-Sep-2018 25-Mar-2019 30-Jun-2021 IN00714850 Beneficiaries aware of project info. and project investments - female (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 180.00 195.00 40.00 IN00714852 Beneficiaries aware of project info. and project investments –male (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 192.00 205.00 80.00 IN00714854 ►Beneficiaries that feel project investments reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 97.00 97.00 95.00 Date 22-Dec-2016 28-Sep-2018 31-Dec-2018 30-Jun-2021 Data on Financial Performance Disbursements (by loan) 6/30/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Mongolia Export Development Project (P147438) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P147438 IDA-58790 Effective USD 20.00 20.00 0.00 2.52 17.37 13% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P147438 IDA-58790 Effective 07-Jul-2016 26-Aug-2016 22-Dec-2016 30-Jun-2021 30-Jun-2021 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/30/2019 Page 6 of 6