Public Disclosure Copy The World Bank Implementation Status & Results Report Djibouti: Governance for Private Sector Development Project (P146250) Djibouti: Governance for Private Sector Development Project (P146250) MIDDLE EAST AND NORTH AFRICA | Djibouti | Trade & Competitiveness Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 5 | ARCHIVED on 20-Dec-2016 | ISR26086 | Implementing Agencies: ANPI Key Dates Key Project Dates Bank Approval Date:23-Jun-2014 Effectiveness Date:12-Mar-2015 Planned Mid Term Review Date:15-Mar-2017 Actual Mid-Term Review Date:-- Original Closing Date:31-Dec-2019 Revised Closing Date:31-Dec-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to help improve Djibouti's business environment. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name 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  Substantial  Substantial Implementation Status and Key Decisions The Project Implementation Unit (PIU) is initially encountering difficulties due to its lack of experience in Work Bank project implementation and fiduciary requirements. The team has been providing close support and taken measures to help the Project Implementation Unit (PIU) improve its effectiveness. Since then, the PIU has been improving the delivery of project activities. Albeit with certain difficulties associated with coordination amongst members of the PIU and beneficiary agencies; and sometimes lack of diligence in procurement procedures. 12/20/2016 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Djibouti: Governance for Private Sector Development Project (P146250) Despite improvements and a favorable trend in the roll out of the project’s activities ,(the disbursement rate stands at 40%) the project is progressing slowly in terms of meeting its development objectives (particularly in terms of reforms achieved). Increases in disbursement do not necessarily translate into a meaningful impact in terms of development objectives, as reforms still need to be implemented to improve the investment climate. There have been some progress, such as streamlining the issuance of construction permits (recorded by previous Doing Business reports), or putting in place the institutional prerequisites to set up the country’s One Stop Shop. For instance the single form for business registration, and the convention that govern the roles and responsibilities of participating agencies in the OOS are finalized. Regarding the support to the courts component, the communication portal which aims to publish court decision and improve transparency is making some progress and the “bureau d acceuil” and a connected legal library are established. However these developments are not considered substantial enough to demonstrate significant progress toward PDO progress and more need to be achieved in terms of implementing investment climate reforms. The team has continued to provide recommendations to improve coordination within the PIU, and across beneficiary agencies, to pass reforms to improve the business entry licensing requirements, and to take the appropriate organizational steps to implement those reforms efficiently. The slow progress in reform implementation needed to achieve the project’s PDO requires stronger impetus and political support, including in terms of multiple agency coordination . An Additional Financing of $5.1m package will be submitted for World Bank Board approval on December 14 2016. It is designed to address the weaknesses mentioned above and strengthen the PIU capacity . The AF also broaden the intervention to address needed modernization of the country’s payment system. It is expected that this AF will enable the Project to progress towards achieving its development objectives (revised under the Additional Financing and with a modified result framework). 12/20/2016 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Djibouti: Governance for Private Sector Development Project (P146250) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  High  High Fiduciary  --  Substantial  Substantial Environment and Social  --  Low  Low Stakeholders  --  Substantial  Substantial Other  --  Moderate  Moderate Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Reduction of time to create a business (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/20/2016 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Djibouti: Governance for Private Sector Development Project (P146250) Value 17.00 14.00 14.00 3.00 Date 15-Jan-2014 05-May-2016 14-Dec-2016 30-Jul-2020 PHINDPDOTBL  Reduction in time to register a property (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 39.00 39.00 39.00 10.00 Date 15-Jan-2014 05-May-2016 14-Dec-2016 30-Jun-2020 PHINDPDOTBL  Decrease in the average number of days to settle a commercial dispute (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 400.00 400.00 400.00 180.00 Date 15-Jan-2014 05-May-2016 14-Dec-2016 30-Jun-2020 PHINDPDOTBL  Direct project beneficiaries (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,200.00 Date 15-Jan-2014 05-May-2016 14-Dec-2016 30-Jun-2020 Comments Indicators on the number of beneficiaries will be removed when the AF comes on line - as per the MNA Operation team's recommendation. PHINDPDOTBL  Female beneficiaries (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target 12/20/2016 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Djibouti: Governance for Private Sector Development Project (P146250) Value 20.00 0.00 0.00 20.00 Overall Comments The PIU has not been following up diligently to better inform the RF- The team continues to stress the need to adequately update the RF regularly. Intermediate Results Indicators PHINDIRITBL  Percentage of Commercial Chamber Decisions Published on the Website (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 95.00 Date 15-Jan-2014 05-May-2016 14-Dec-2016 30-Jun-2020 PHINDIRITBL  Percetage of property titles computerized (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 15-Jan-2014 05-May-2016 14-Dec-2016 30-Jun-2020 PHINDIRITBL  Percentage of magistrates trained (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 15-Jan-2014 05-May-2016 14-Dec-2016 30-Jun-2020 12/20/2016 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Djibouti: Governance for Private Sector Development Project (P146250) PHINDIRITBL  Number of enterprises registered per year of which 20% are led by women (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 150.00 150.00 150.00 1,200.00 Date 15-Jan-2014 05-May-2016 14-May-2016 30-Jun-2020 PHINDIRITBL  Number of enterprises registered per year led by women (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 15-Jan-2014 05-May-2016 14-May-2016 30-Jun-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P146250 IDA-55180 Effective XDR 1.30 1.30 0.00 0.52 0.78 40% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P146250 IDA-55180 Effective 23-Jun-2014 06-Nov-2014 12-Mar-2015 31-Dec-2019 31-Dec-2019 Cumulative Disbursements 12/20/2016 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Djibouti: Governance for Private Sector Development Project (P146250) Restructuring History There has been no restructuring to date. Related Project(s) P158952-Governance for Private Sector and Finance Development Additional Fin. 12/20/2016 Page 7 of 7 Public Disclosure Copy