The World Bank Implementation Status & Results Report Financial Sector Development & Regionalization Project I (FSDRP I) (P121611) Financial Sector Development & Regionalization Project I (FSDRP I) (P121611) AFRICA | Africa | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2011 | Seq No: 16 | ARCHIVED on 27-Jan-2020 | ISR40372 | Implementing Agencies: EAC Secretariat, EAC Secretariat, East African Community, East African Community Key Dates Key Project Dates Bank Approval Date: 31-Jan-2011 Effectiveness Date: 20-Jun-2011 Planned Mid Term Review Date: 30-Nov-2012 Actual Mid-Term Review Date: 22-Oct-2012 Original Closing Date: 30-Mar-2014 Revised Closing Date: 30-Jun-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To establish the foundation for financial sector integration among EAC Partner States. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) To establish the foundation for financial sector integration among EAC Partner States. For the purposes of this additional financing the "foundation of financial sector integration  refers to formulating a regional approach to financial inclusion, furthering legal and regulatory harmonization and building institutional capacity to manage the increasingly integrated financial sector in the EAC. Components Table Name Financial inclusion and strengthening of market participants:(Cost $4.30 M) Harmonization of financial laws and regulations:(Cost $4.23 M) Mutual recognition of supervisory agencies:(Cost $0.70 M) Integration of market infrastructure:(Cost $3.75 M) Development of regional bond market Institution Building:(Cost $12.10 M) Project Management:(Cost $1.10 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 €Moderate €Moderate Implementation Status and Key Decisions 1/27/2020 Page 1 of 6 The World Bank Implementation Status & Results Report Financial Sector Development & Regionalization Project I (FSDRP I) (P121611) (1) The ratings for progress towards PDO and Implementation Progress were maintained at Moderately Satisfactory. Since the last ISR, the disbursement ratio continues to be improved and the expenditure since July 2019 to November 2019 is approximately USD1.4 million, with the overall expenditures of the Additional Financing fund including the commitments of 89%. (2) The project made considerable progress on activities under each AF component. The PAT submitted a progress report detailing the activities undertaken between July 2019 - November 2019. The progress report also provided information on the Monitoring and Evaluation (notably the project results matrix), FM and Procurement functions of the project. (3) CMI activities made some good progress. Despite some implementation delays affecting progress by the CMI vendor (Infotech), the PAT revised the implementation workplan and developed a new timeframe, which the vendors have endorsed. A new contract addendum has been issued and the CMI work is expected to be completed by April 2020. (4) With the project restructuring (closing date extension and revising the result framework), the progress of the project is better captured with the new indicators. All indicators are expected to meet/exceed targets and a confirmation of this expectation will be made during a forthcoming World Bank ISR mission. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- €Substantial €Substantial Macroeconomic -- €Moderate €Moderate Sector Strategies and Policies -- €Low €Low Technical Design of Project or Program -- €Moderate €Moderate Institutional Capacity for Implementation and -- €Substantial €Substantial Sustainability Fiduciary -- €Moderate €Moderate Environment and Social -- €Low €Low Stakeholders -- €Moderate €Moderate Other -- -- -- Overall -- €Moderate €Moderate Results PDO Indicators by Objectives / Outcomes Project Development Objective: To establish the Foundation for Financial Sector Integration IN00797221 ►Number of accounts within regulated institutions (Banks and deposit-taking MFIs) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 57,370.00 78,000.00 93,800.00 75,000.00 1/27/2020 Page 2 of 6 The World Bank Implementation Status & Results Report Financial Sector Development & Regionalization Project I (FSDRP I) (P121611) Date 31-Oct-2016 03-Jun-2019 02-Dec-2019 30-Jun-2020 The figure is in June 2019 as the one in December 2019 is not available. Comments: IN00797222 ►Number of Markets successfully linked to the EAC CMI IT platform (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 31-Oct-2016 25-Jul-2019 02-Dec-2019 30-Jun-2020 IN00797223 ►Number of legal instruments relating to financial sector harmonization in the EAC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.00 23.00 22.00 25.00 Date 31-Oct-2016 03-Jun-2019 02-Dec-2019 30-Jun-2020 This includes 20 Council Directives and 2 Bills on the establishment of the Financial Commission & EAC Comments: Insurance. Intermediate Results Indicators by Components Component 1: Financial Inclusion and Strengthening of Market Participants IN00797224 ►Development of implementation strategies for certification programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 3.00 3.00 Date 21-Jul-2016 03-Jun-2019 02-Dec-2019 30-Jun-2020 IN00797227 ►Development of training programs for each of the financial sub sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 10.00 10.00 Date 30-Sep-2016 25-Jul-2019 02-Dec-2019 30-Jun-2020 IN00797229 ►Development of a Regional Road Map and five other National Road Maps for universal switches on Retail Payments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 5.00 6.00 1/27/2020 Page 3 of 6 The World Bank Implementation Status & Results Report Financial Sector Development & Regionalization Project I (FSDRP I) (P121611) Date 30-Sep-2016 28-Jun-2019 02-Dec-2019 30-Jun-2020 Component 2: Harmonization of financial laws and regulation IN00797226 ►Number of finalized EAC policies and implementation strategies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 3.00 3.00 Date 30-Sep-2016 25-Jul-2019 02-Dec-2019 30-Jun-2020 IN00797228 ►Development of the Regulations and guidelines to harmonise legal and regulatory framework (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 24.00 11.00 37.00 Date 30-Sep-2016 25-Jul-2019 02-Dec-2019 30-Jun-2020 Component 3: Institution Building IN00797225 ►Number of policy papers prepared by the PAT (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 13.00 13.00 10.00 Date 21-Jul-2016 03-Jun-2019 02-Dec-2019 30-Jun-2020 The following 7 policy papers were presented to the FSDRP Executive and Steering committee meetings; 1. Mobile and agency banking in EAC countries; 2. Determinants of household savings mobilization; 3. Assessment against IOSCO Principle 38; 4. Assessment against IOSCO new principles; 5. Assessing EAC financial integration (focus on Banking sector); 6.Risk based supervision for EAC Securities Market; and 7. Draft EAC Insurance Policy. Other five (5) policy papers were presented in the Executive and Steering Committee meeting in November 2017. Those policy papers are; 1. EAC Retirement Benefits Comments: Policy; 2. Insurance Policy; 3.Draft EAC Microfinance Policy & Implementation Strategy; 4. Financial Sector Capacity Building Policy and Implementation Strategy for Rwanda and Burundi; and 5. Burundi Capital Market Policy. One policy paper on extending the Pension coverage to informal sector and the policy paper on the establishment of the Financial Services Commission were approved by the SCFEA in May 2019. IN00797230 ►Establishment of Securities Market (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 0.00 1.00 Date 30-Sep-2016 25-Jul-2019 02-Dec-2019 30-Jun-2020 IN00797231 1/27/2020 Page 4 of 6 The World Bank Implementation Status & Results Report Financial Sector Development & Regionalization Project I (FSDRP I) (P121611) ►Development of a Road Map for establishing a centralized database for capturing cross border financial flows (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 1.00 Date 30-Sep-2016 25-Jul-2019 02-Dec-2019 30-Jun-2020 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P121611 IDA-D1410 Effective USD 10.50 10.50 0.00 8.43 2.20 79% P121611 IDA-H6410 Closed USD 16.00 15.48 0.52 14.91 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P121611 IDA-D1410 Effective 30-Sep-2016 11-Nov-2016 15-Feb-2017 30-Sep-2019 30-Jun-2020 P121611 IDA-H6410 Closed 31-Jan-2011 14-Feb-2011 20-Jun-2011 30-Mar-2014 30-Nov-2016 Cumulative Disbursements 1/27/2020 Page 5 of 6 The World Bank Implementation Status & Results Report Financial Sector Development & Regionalization Project I (FSDRP I) (P121611) Restructuring History Level 2 Approved on 28-Feb-2014 ,Level 2 Approved on 18-Jun-2015 ,Level 2 Approved on 25-Feb-2016 ,Level 2 Approved on 28-Sep-2016 ,Level 2 Approved on 02-Aug-2019 Related Project(s) P160770-EAC Financial Sector Development and Regionalization Project I: AF 1/27/2020 Page 6 of 6