Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) Competitiveness for Tourism Development (P146666) AFRICA | Cabo Verde | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 4 | ARCHIVED on 25-Jun-2018 | ISR31239 | Implementing Agencies: Ministerio do Turismo e Transportes, Ministério das Finanças Key Dates Key Project Dates Bank Approval Date:10-May-2016 Effectiveness Date:15-Nov-2016 Planned Mid Term Review Date:15-Nov-2018 Actual Mid-Term Review Date:-- Original Closing Date:31-May-2021 Revised Closing Date:31-May-2021 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to create the conditions necessary to increase investment into and diversification of the tourism sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Enhancing governance framework of the tourism sector:(Cost $2.27 M) Component 2: Diversify tourism sector and increase inclusiveness of tourism-led growth by strengthening the competitiveness of local MSMEs:(Cost $2.24 M) Component 3: Project implementation:(Cost $0.49 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions 6/25/2018 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) The overall progress on implementation has been downgraded to Moderately Satisfactory, given the delays caused by changes to Government structure and implementing agencies following the establishment of a new Government in Cabo Verde and the relatively low disbursement rate of 15%. This said, implementation is picking up and we foresee this rating to return to Satisfactory in the next cycle, if the current trend persists. Below, we provide a general overview per beneficiary: 1. Ministry of Tourism and Transport: the project is currently supporting three crucial activities: the national strategic plan for the tourism sector, the national tourism legal code, and the support to the establishment of the tourism board (to be called “Turismo de Cabo Verde”). On the first topic, the new consensus noted by the Minister of Tourism and Transports is that the national tourism strategy would incorporate specific masterplans or roadmaps per island, in addition to a document dubbed “Grand Options” for the sector for which the groundwork and roundtables have already been conducted. Additionally, it was determined that the national tourism strategy would incorporate a marketing plan, which the DGTT had initially considered contracting separately. UGPE is now launching the procurement for the associated TA, as per agreed ToRs. On the Tourism Code, the project is supporting the legal codification and harmonization of tourism governance, on two phases – a diagnostic phase with recommendations e.g. on how to deal with local AirBnB-type accommodations; and subsequent legal work to codify these recommendations and best practices into a draft Law. On the latter issue of establishment of the tourism board, the project is supporting the due diligence on the economic feasibility of this new body under an individual consultant contract. 2. Cabo Verde TradeInvest: CVTI revealed that both ongoing technical assistances supported by the CTD project – relaunch of the agency and the outreach marketing plan - are being well received and have been instrumental in revamping the agency. Both assistances will come to completion in this first semester of 2018, and several additional and complementary activities have been identified, namely detailed sector maps for priority sectors (hospitality & tourism, agribusiness, blue ocean), in addition to support in direct marketing events and campaigns under the recently identified outreach plan. Some of these complementary activities may be eligible for funding even after the project reallocation if the Government so deems it. 4. Tourism Land Banks: The project is supporting the head of the tourism land banks transitory office, and the head of the Tourism Fund, regarding the intention to elaborate twelve (12) Planos de Ordenamento Turístico (Tourism Zoning Plans - POTs) for the designated tourism development zones (Special Zone for the Development of Tourism - ZDTIs). Mandate over the ZDTIs had rested with the investment promotion agency in the past, but many ZDTIs still lack the detailed urban planning provided under the legal POTs to make it possible to properly prepare and package investment opportunities. Considering that the funding allocation in the CTD is not sufficient to cover the conception of all twelve POTs, the head of the tourism fund noted availability to cover the funding gap, provided UGPE handles the procurement- this was well noted and accepted, and UGPE has since launched the procurement process; these will be tendered in blocks of 4 POTs, to accelerate the process and potentially conclude all 12 plans in 2018. To note also that the oversight of the ZDTIs will be transferred to the recently created Institute for Territorial Management (INGT), which will hence forward be the end client and supervisor for these POTs. 4. Chambers of Commerce: With the Northern and Southern Commerce Chambers, thus far the following activities have been approved and are under implementation – a quality certification program for SMEs that are supplying the tourism value chain; technical assistance to establish a financial resource mobilization unit in the chambers to assist members; and an integrated joint enterprise resource planning software for internal use of the Chambers. A fourth activity - a video-conference system that will permit communication, training and services for both chambers and respective members across all islands -, was approved for procurement, provided that the equipment remains property of the Ministry of Finance as beneficiary of the credit and is then subsequently ceded to the Chambers under an MoU. Further activities are in the pipeline, also with the Tourism Chamber, and the corresponding ToRs are under discussion with the Government/UGPE also with Bank involvement. 6. Ministry of Justice: In the access to finance subcomponent, the Ministry of Justice and Labor is now heading the “insolvency reform task force” and work is continuing with two activities thus far completed: a Cabo Verde delegation attending an international insolvency reform roundtable in Mauritius in December of 2017; and the organization of the first Cabo Verde national insolvency training and dissemination conference on 21 - 23 of February of 2018 in the island of Sal. The latter conference brought together legal practitioners from all over the country and sought to disseminate and provide training on the recent Insolvency and Recovery Law, in effect since late 2016, in addition to determining which are the complementary regulations missing. Three international experts on the topic, including a Bank-invited Brazilian judge, attended. Pursuant to the findings of this event, the Ministry of Justice is now procuring additional technical assistance under the project with a specialized legal firm to complete the legal framework on insolvency, particularly complementary regulations on insolvency administrators et others. 7. Institute for the Management of Quality and Intellectual Property (IGQPI) the inception consultancy to launch the small accommodation quality label design consultancy began on January 8, 2018. Through the consultancy, which should be completed end-June, the operating procedures and standards of the program will be defined. It was agreed that the work should be closely monitored and that a sub-committee of the project steering committee consisting of IGQPI, DGTT, and the Tourism Chamber will review the draft recommendations and standards when presented by the consultant in March. Another aspect discussed is the financial sustainability of the program, and IGQPI agreed that it and the other members of the sub- committee will approach the Tourism Fund to explore collaborative funding. The project and UGPE are also discussing with additional beneficiaries under the tourism development umbrella, namely the Minister of Culture and 6/25/2018 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) Creative Industries, to explore linkages and involve the national culture agenda in the scope of activities of the CTD – e.g. certification of national artisans; application of the Morna traditional music as world heritage under UNESCO; classification of eight selected Cabo Verde sites under UNESCO protection; etc. These discussions are ongoing, also with Bank collaboration. With regards to ProEmpresa, the new Government official SME business promotion agency, the project is supporting an inception technical assistance to elaborate a strategic plan for this new body, particularly focusing on how this new agency can accomplish its mandate; follow-on technical assistance and capacity building activities are expected. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  Moderate  Moderate  Moderate Macroeconomic  Substantial  Substantial  Substantial Sector Strategies and Policies  Moderate  Moderate  Moderate Technical Design of Project or Program  Moderate  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  Moderate  Moderate  Moderate Fiduciary  Moderate  Moderate  Moderate Environment and Social  Moderate  Moderate  Moderate Stakeholders  Moderate  Moderate  Moderate Other  --  --  -- Overall  Moderate  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Increased investment generated (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 35.00 Date 10-May-2016 09-Aug-2017 12-Jun-2018 01-Mar-2021 PHINDPDOTBL  Increased bed nights at beneficiary small accommodation establishments (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/25/2018 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) Value 0.00 0.00 0.00 18.00 Date 10-May-2016 09-Aug-2017 12-Jun-2018 01-Mar-2021 Overall Comments At this stage of implementation, the Project does not yet have results to report. Intermediate Results Indicators PHINDIRITBL  Start-up of operations of the joint tourism and investment promotion agency (CI-ATIC) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 10-May-2016 -- 12-Jun-2018 01-Mar-2021 PHINDIRITBL  Beneficiaries of the small accommodation quality label that feel project investments reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 75.00 Date 10-May-2016 -- 12-Jun-2018 01-Mar-2021 PHINDIRITBL  Development of a national tourism strategy (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 10-May-2016 09-Aug-2017 12-Jun-2018 01-Mar-2021 6/25/2018 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) PHINDIRITBL  Implementation of a formal investor outreach program (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 10-May-2016 09-Aug-2017 12-Jun-2018 01-Mar-2021 PHINDIRITBL  Implementation of a formal investor facilitation program (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 10-May-2016 09-Aug-2017 12-Jun-2018 01-Mar-2021 PHINDIRITBL  Establishment of a moveable collateral registry (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 10-May-2016 09-Aug-2017 12-Jun-2018 01-Mar-2021 PHINDIRITBL  Number of investor leads receiving improved investment promotion services in the tourism sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 18.00 Date 10-May-2016 09-Aug-2017 12-Jun-2018 01-Mar-2021 6/25/2018 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) PHINDIRITBL  Number of MSME representatives trained by private sector organizations (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 23.00 100.00 Date 10-May-2016 -- 12-Jun-2018 01-Mar-2021 PHINDIRITBL  Of which women (%) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 35.00 Overall Comments 23 MSMEs have received training from the Chambers of Commerce thus far: - 17 MSMEs form the Southern Chamber of Commerce - 6 MSMEs from the Northern Chamber of Commerce. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P146666 IDA-58010 Effective USD 5.00 5.00 0.00 0.77 4.44 15% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P146666 IDA-58010 Effective 10-May-2016 17-Jun-2016 15-Nov-2016 31-May-2021 31-May-2021 Cumulative Disbursements 6/25/2018 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness for Tourism Development (P146666) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/25/2018 Page 7 of 7 Public Disclosure Copy