Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness and Integrated Growth Opportunity Project (CIGOP) (P104881) Competitiveness and Integrated Growth Opportunity Project (CIGOP) (P104881) AFRICA | Benin | Trade & Competitiveness Global Practice | IBRD/IDA | Investment Project Financing | FY 2008 | Seq No: 17 | ARCHIVED on 29-Dec-2017 | ISR30679 | Implementing Agencies: Ministry of Economy and Finance, Ministry of Trade and Industry Key Dates Key Project Dates Bank Approval Date:29-Apr-2008 Effectiveness Date:23-Jun-2009 Planned Mid Term Review Date:03-Dec-2012 Actual Mid-Term Review Date:15-Apr-2013 Original Closing Date:01-Mar-2014 Revised Closing Date:29-Dec-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to support enterprise and entrepreneurship developments through improved business developmentinfrastructure, an improved trade expansion platform, and catalytic interventions for direct investment promotion and thedevelopment of new products and new markets. 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)PHRPDODEL The revised PDO is to foster entrepreneurship and investment in high potential value chains and public-private partnerships.Project assistance will focus on value chains with high growth and job creation potential. Components Name Business Environment Modernization:(Cost $7.70 M) Support to SMEs and PPP Project Development:(Cost $13.56 M) Project Implementation and Monitoring and Evaluation:(Cost $3.74 M) no component Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Satisfactory 12/29/2017 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness and Integrated Growth Opportunity Project (CIGOP) (P104881) Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The USD25 million IDA Competitiveness and Integrated Growth Opportunity Project was approved by the Board in April 29, 2008 and became effective in June 23, 2009. After five years of implementation, the project had not delivered any visible impact and required a bold restructuring in order to deliver some results before it is closed. As a result of a Level I restructuring (approved on December 5, 2013 following the 2013 MTR) the project has shown steady progress to achieving the project development objectives. This has been a result of close supervision and proactive measures taken by the team and detailed action plans which served as a roadmap for the PIU. 2015 and 2016 saw a dramatic turn-around in project implementation with the tripling of the disbursement rate that reached 72.5 in March 2016 and the project rating was upgraded to MS. Further to Government request, the project was extended by 10 months (to December 29, 2017) so as to enable the completion of a key activity (adoption of the law establishing the commercial court and operationalization of the new jurisdiction) delayed by an overly busy electoral agenda between March 2015 and March 2016. This ISR traces project implementation status between May 2017 and project closing as of December 29, 2017. The supervision mission undertaken December 26-29 confirm the positive evolution of project implementation, as well as the visible impact of this operation. As of December 2017 this operation is now broadly recognized for its substantive impact on Modernizing the business environment in Benin with the establishment of a Commercial court, support to the establishment of an Investment and export promotion agency and support to the improvement of several Doing Business indicators (Benin has been ranked top 5 global reformer by the Doing Business reports in two consecutive years 2014 and 2015) and contributed SMEs and infrastructure projects that fostered more than US$ 760 million and created 7000 jobs. The contribution of the project is particularly noted with regard to: Component I: Business Environment Modernization 1.1 . Enabling institutions for private sector. The project has supported the establishment and operationalization of an Investment and Export Promotion Agency (APIEX). The government will overhaul the agency to entrust it with additional responsibilities including: management of the new special economic zone, management of a PPP Technical assistance has been mobilized to support presidential investment council that successfully led the implementation of the Doing Business agenda between 2014 and 2016. 1.2 Investment Climate reform Entreprenant Regime: Thanks to project support, Benin is the first OHADA country to implement the “entreprenant” regime. The impact evaluation study conducted along the implementation of a pilot “entreprenant” program in Cotonou has helped identify the package incentives that needs to be offered to the informal sector to entice them to register as “entreprenant”. Thanks to the implementation of a solid roll out program in Bohicon and Parakou 4000 firms have registered as “entreprenants” as of December 29, 2017. Commercial dispute resolution mechanisms: A draft legal framework establishing the new commercial court was prepared in a participatory manner with project support in 2014. It was validated in a series of workshops with the stakeholders and some Members of parliament. The draft bills were submitted to parliament for adoption during the last quarter of 2014. However, due to local, parliamentary, and presidential elections held between April 2015 and March 2016, they were finally passed during the first parliamentary session following the 2016 presidential election, on July 4, 2016. The commercial court is now fully staffed and operational. Judges (Professional and consular) and clerks have been appointed and trained. The court should has issued its first decision in December 2017and contributes to reduced time to resolve commercial disputes. Decisions issued by the court are automatically published on a dedicated website. Due to budget constraints, the fully automated case management system will be supported under the business environment sub-component of the ongoing Tourism project. Component 2: Support to SME and PPP project Development: 2.1 TA to support the PPP project preparation: TA envisioned under the project to support PPP project preparation has been delivered. 5 feasibility studies for government priority PPP projects including Glo-Djigbé new airport, Vossa and Beterou Dams and two new dry ports have been elaborated against an end target of 2. The feasibility study for the new airport has helped the government conclude a Public-private partnership to develop the new Airport. 2.2 SME Development: 12/29/2017 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness and Integrated Growth Opportunity Project (CIGOP) (P104881) The project has supported the implementation of a Business Plan Competition (BPC). Around 3000 applications were received after a nationwide call for expression of interests. 500 applicants were selected and trained, and 229 among them selected after another transparent and robust the selection process. After a final round of selection 137 winners were selected. An ambitious coaching and post award mentoring plan has been devised for each of the 137 winners of the business plans competition to ensure a successful implementation of the award-winning business plans. 134 award winners finally managed to mobilize (mainly from financial institutions) the additional resources needed to fully implement their business plans. As of December 2017, about 7000 Jobs have been created whereas the target at project restructuring was 3000 jobs. Firms supported firms under the BPC have generated US$ million as opposed to a target of US$ 5 million. It is important to note that an increase in the number of jobs created is expected during the first half of 2018 when some beneficiaries will be operating at full speed their business Plan. 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  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Number of jobs created through Business Plan Competition (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,100.00 7,044.00 2,000.00 Date 30-Dec-2013 20-Apr-2017 29-Dec-2017 29-Dec-2017 12/29/2017 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness and Integrated Growth Opportunity Project (CIGOP) (P104881) PHINDPDOTBL  Time to judge commercial dispute (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 450.00 450.00 120.00 250.00 Date 30-Dec-2013 20-Apr-2017 29-Dec-2017 29-Dec-2017 Comments The Commercial Court of Cotonou started operations in December 2017. The time of Trial and Judgment is reduced from 450 to a maximum of 240 days (within the remit of the Commercial Court). Actual time of trial and judgement at project closing varied between 24 hours to 7 days. PHINDPDOTBL  Number of feasibility studies for PPP projects completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 2.00 Date 30-Dec-2013 20-Apr-2017 29-Dec-2017 29-Dec-2017 PHINDPDOTBL  Number of New Businesses formalized under the“entreprenant” regime (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,100.00 3,929.00 3,000.00 Date 30-Dec-2013 20-Apr-2017 29-Dec-2017 29-Dec-2017 PHINDPDOTBL  Percentage of commercial court decisions Published onthe court’s website (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 100.00 75.00 Date 30-Dec-2013 20-Apr-2017 29-Dec-2017 29-Dec-2017 12/29/2017 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness and Integrated Growth Opportunity Project (CIGOP) (P104881) Overall Comments Intermediate Results Indicators PHINDIRITBL  At least 200 SME have a business plan prepared (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 477.00 500.00 200.00 Date 30-Dec-2013 20-Apr-2017 29-Dec-2017 29-Dec-2017 PHINDIRITBL  At least 12% increase in the turnover of those who benefited from investment support from the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 16.00 29.00 12.00 Date 30-Dec-2013 20-Apr-2017 29-Dec-2017 29-Dec-2017 PHINDIRITBL  Volume of investment madeby participant to the BPC (US$) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.20 11.00 5.00 Date 30-Dec-2013 24-Oct-2016 29-Dec-2017 29-Dec-2017 Overall Comments Data on Financial Performance Disbursements (by loan) 12/29/2017 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Competitiveness and Integrated Growth Opportunity Project (CIGOP) (P104881) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P104881 IDA-44240 -- USD 25.00 25.00 0.00 22.72 0.00 91% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P104881 IDA-44240 -- 29-Apr-2008 12-Sep-2008 23-Jun-2009 01-Mar-2014 29-Dec-2017 Cumulative Disbursements Restructuring History Level 1 Approved on 09-Dec-2013 ,Level 2 Approved on 09-Sep-2016 Related Project(s) There are no related projects. 12/29/2017 Page 6 of 6 Public Disclosure Copy