The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Private Sector Competitiveness (P130091) EUROPE AND CENTRAL ASIA | Tajikistan | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2012 | Seq No: 16 | ARCHIVED on 29-Feb-2020 | ISR40211 | Implementing Agencies: Ministry of Finance, Tajikistan, State Investment and Property Management Committee, Republic of Tajikistan Key Dates Key Project Dates Bank Approval Date: 10-May-2012 Effectiveness Date: 06-Sep-2012 Planned Mid Term Review Date: 15-Sep-2015 Actual Mid-Term Review Date: 30-Oct-2015 Original Closing Date: 31-Dec-2016 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the project is to remove key constraints to business development and investment by: (i) simplifying business registration and construction permitting processes; (ii) improving regulations and infrastructure underlying access to financial services; and (iii) encouraging development of the mining industry, where Tajikistan has a competitive advantage. 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) The development objective of the project is to foster increased efficiency in key areas that influence private sector competitiveness, including business registration, infrastructure underlying access to financial services, and the mining industry. Components Table Name Encouraging competitiveness and development of the mining industry:(Cost $3.18 M) Strengthening business registration systems and processes:(Cost $0.75 M) Institutional strengthening to support a single window for Construction Permits:(Cost $0.82 M) Improvement of Financial Infrastructure:(Cost $4.32 M) Project Management:(Cost $0.93 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Private Sector Competitiveness Project (PSCP) closed, as planned, on December 31, 2019. The project made notable progress over the past months in implementation and towards reaching the development objectives. 2/29/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) The new One-Stop-Shop for business registration is functioning. Businesses are not required to go to these agencies individually, but instead submit an application online, or visit only the tax office for registration. By end-2019, 70,000 new businesses were registered using the new system, and out of that 30% used online registration which is a notable uptake. The single window for construction permits in the City of Dushanbe is operational. There are delays in adopting the sub-soil Law. Progress is made on the Mining Cadaster, transferring geological surveys in electronic form on the Modern System, and towards reinstating Tajikistan at the EITI initiative. In the component on Improvement on Financial Infrastructure, the new online collateral registry that was officially launched on February 1, 2019 has since attracted more than USD50 million worth of lending based on movable collateral. All modules of the project’s payments systems infrastructure at the NBT have been launched: the new Real-time Gross Settlement system (RTGS), the Automated Clearing House (ACH), the Central Securities Depository (CSD), and the Instant Fund Transfer (IFT) module. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- High High Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Substantial Substantial Sustainability Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- Moderate Moderate Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve private sector competitiveness by improving bus.registration, access to fin.services, mining IN00791716 ►Indicator One: Time spent on business registration (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 24.00 5.00 5.00 5.00 Date 01-Jul-2012 28-Jun-2019 31-Dec-2019 31-Dec-2019 IN00791717 2/29/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) ►Indicator Two: Lending based on new registration of security interests in the new collateral registry using moveable assets as collateral (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 42,000,000.00 50,000,000.00 20,000,000.00 Date 01-Jul-2012 28-Jun-2019 30-Nov-2019 31-Dec-2019 Lending based on new registrations of security interests using moveable assets as collateral amounted to more than USD$50 million across more than 550 transactions by November 30, 2019. More than 45 financial institutions have been registered as users, but only 9 (4 banks, 5 microfinance institutions) are Comments: active users so far. Hence, by further promoting the use of the registry, the MoJ can achieve even higher volumes going forward. IN00791718 ►Indicator Three: Modern Automated Transfer System (ATS) and module of financial instruments for interbank transactions operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target System installed and operational and all Value Not in existence In Progress Completed. relevant staff trained to use it. Date 01-Jul-2012 28-Jun-2019 31-Dec-2019 31-Dec-2019 All modules of the project’s payments systems infrastructure at the NBT have been launched. The new Real-time Gross Settlement system (RTGS), which is dedicated primarily to large value interbank payments, is the most important module of the Automated Transfer System (ATS) that the NBT implemented and was launched on July 19, 2019. A total of 42 participants (banks, microfinance organizations, and the Ministry of Finance) are now connected to the new RTGS. The Automated Clearing House (ACH) module, which is used for low value payments in batches, was launched on August 30, 2019. The Central Securities Depository (CSD) was launched on October 1, 2019. Lastly, the Instant Fund Comments: Transfer (IFT) for fast payments (like mobile to mobile) was launched on October 30, 2019. So far, most payments are channeled through the RTGS, which is explained by e.g. the NBT’s decision to allow for free use of this module in 2019 while charges exist for the other modules. The NBT prepared a new pricing structure that is intended to incentivize spreading the country’s payments across the different modules in 2020. Finally, it is important to note that all of these modules need to remain in the hands of the NBT, and need to be operated by the NBT itself. IN00791719 ►Indicator Four: Legal and regulatory framework to improve bank supervision is developed, adopted, and implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 7.00 7.00 Date 01-Jul-2012 28-Jun-2019 31-Dec-2019 31-Dec-2019 Completed. A total of 7 regulations/rules in the area of banking supervision have been adopted by the NBT Board. A separate Word document is prepared by the team that includes details on e.g. attribution to Comments: the work of the PSCP. IN00791720 ►Indicator Five: Number of new mining exploration licenses issued (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 11.00 49.00 10.00 2/29/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Date 01-Jul-2012 28-Jun-2019 31-Dec-2019 31-Dec-2019 ENTRY SEPT 2018: The baseline is 3. No new licenses were issued prior to end 2018 that can be attributed to the Project. ENTRY January 2019. One new exploration license granted by the MGD. Comments: ENTRY: June 2019. Seven new exploration licenses granted by the MGD ENTRY: December 2019. 41 new licenses granted by Ministry Intermediate Results Indicators by Components Strenghtening the Business Environment IN00791721 ►Intermediate Result indicator One: Number of staff of Statistics Agency, Social Insurance Agency, and Tax Committee trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 35.00 35.00 30.00 Date 13-May-2014 28-Jun-2019 31-Dec-2019 31-Dec-2019 IN00791725 ►Intermediate Result indicator Two: Number of construction permits obtained via single window (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 34.00 15.00 Date 09-Nov-2016 28-Jun-2019 31-Dec-2019 31-Dec-2019 Encouraging the Development of Mining Industry IN00791722 ►Intermediate Result Indicator Nine: Adoption of the new Subsoil Law (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Not adopted yet Not adopted yet Yes Date 15-Nov-2016 28-Jun-2019 31-Dec-2019 31-Dec-2019 IN00791726 ►Intermediate Result indicator Six: Share of geological surveys in electronic form on Modern System (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 100.00 70.00 Date 01-Mar-2012 28-Jun-2019 31-Dec-2019 31-Dec-2019 IN00791729 ►Intermediate Result indicator Seven: Share of existing and new claims in the Mining Cadastre on new system (Percentage, Custom) 2/29/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 100.00 60.00 Date 01-Mar-2012 28-Jun-2019 31-Dec-2019 31-Dec-2019 Project Management IN00791723 ►Intermediate Result Indicator Eight: Direct Project Beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 62,349.00 72,961.00 50,000.00 Date 01-Mar-2012 28-Jun-2019 31-Dec-2019 31-Dec-2019 January 2019 update - 42,104 new businesses registered in 2018, and out of that 10% using online system. So, we have new businesses being registered using the new system, and on the top of that - 10% of businesses are using online system in the first 6 months of operation, which is notable uptake of the reform. Comments: July 2019 Update – 20,247 additional businesses registered, so in total 62,349 since early 2018. 10.6% of all new businesses since early 2018 are women owned. December 31, 2019 Update - Total of 72,961 businesses registered since January 2018. 30% using online registration. 14% female applicants IN00791728 Female Project Beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.60 11.75 10.00 Improve Access to Financial Services IN00791724 ►Intermediate Result indicator Three: Regulatory framework to improve payment system is developed and implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 6.00 7.00 7.00 Date 01-Jul-2012 28-Jun-2019 31-Dec-2019 31-Dec-2019 Completed. This intermediate results indicator was achieved with the NBT's adoption of updated rules for the operation of the RTGS. A separate Word document is prepared by the team that includes details on Comments: e.g. attribution to the work of the PSCP. IN00791727 ►Intermediate Result indicator Four: Contingency planning and crisis management framework adopted and implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Simulation exercise Value No in progress Completed adopted and periodic reports published Date 01-Jul-2012 28-Jun-2019 31-Dec-2019 31-Dec-2019 2/29/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Completed. This intermediate results indicator on contingency planning and crisis management framework was achieved by the NBT's adoption of the Plan for contingency planning and crisis management in Comments: December 2019. The first periodic simulation exercise is planned for April 2020, and will be reported on to the Board. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P130091 IDA-H7710 Closed USD 10.00 10.00 0.00 9.14 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P130091 IDA-H7710 Closed 10-May-2012 08-Jun-2012 06-Sep-2012 31-Dec-2016 31-Dec-2019 Cumulative Disbursements 2/29/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Restructuring History Level 1 Approved on ,Level 2 Approved on 25-Nov-2016 ,Level 2 Approved on 27-Jun-2018 Related Project(s) There are no related projects. 2/29/2020 Page 7 of 7