The World Bank Report No: ISR15399 Implementation Status & Results Guinea Guinea - MSME Development Project (P128443) Public Disclosure Copy Operation Name: Guinea - MSME Development Project (P128443) Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 25-Jun-2014 Country: Guinea Approval FY: 2013 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 28-Jun-2013 Original Closing Date 31-Dec-2017 Planned Mid Term Review Date 11-Jan-2016 Last Archived ISR Date 14-Dec-2013 Effectiveness Date 06-Dec-2013 Revised Closing Date 31-Dec-2017 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to support the development of MSMEs in various value chains and to improve selected processes of Guinea's investment climate Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1. Establishment of Support Centers for SME development (US$ 4.2 million) 4.20 Component 2: Support to Investment (US$ 4.6 million) 4.60 Component 3: Project Implementation and M&E 1.20 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview This is the second ISR for the Guinea - MSME Development Project that was approved by the Board on June 28, 2013 in the amount of $10 million. The Financing Agreement was signed on August 20, 2013. Project effectiveness was reached on December 6, 2013. The Government - especially the new Minister of Industry appointed by end January 2014 - and private sector actors are looking forward to the project intervention. Thus, the project benefits from significant good will. Overall the project is making progress, albeit more slowly than expected. By early June 2014, project disbursement has reached 13% of the Credit. Page 1 of 4 The World Bank Report No: ISR15399 Component 1 of the project is progressing, studies to operationalize the technical centers are to be launched and confirmation has been obtained from the new Minister of Industry that the required buildings will be provided by the State. Public Disclosure Copy Component 2 offers mixed progress. Work with APIP and PPD is making good progress while work with the Central Bank is slower than expected. - Support to the APIP is being provided. Consultants to support the promotion function and the one-stop-shop are being hired. The new strategy of the institution, as discussed with the new director is being finalized. This is a promising start, which is allowed by the fact that the counterpart is highly motivated. - Similarly, work on PPD is progressing well. The project financed the participation of a delegation led by the Minister itself to a PPD event in Frankfurt (Germany) in March 2014, this was highly appreciated by the counterpart and helped clarify PPD options available for Guinea. The PPD secretariat is in the process of being staffed and the private sector is organizing itself. Initial events are set for September 2014. - Work on payment systems is under way with the Central Bank: Legal and technical consultants are being hired to start supporting the CBRG. However, work on Credit Information System has not yet started due to difficulties in agreeing on terms of reference for the technical assistance. Component 3. The PIU shows slow responsiveness. This may be explained partly by the situation in Guinea (political troubles in Sept.-Nov. 2013 and Ebola epidemic starting in Feb. 2014). Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Sales of MSMEs supported by the SCs Percentage Value 0.00 0.00 20.00 Date 10-Jun-2014 Comments No Center yet No Center yet. Centers are to be set in FY15 Investor inquiries Number Value 0.00 15.00 Date 31-Dec-2013 Comments Number of investor inquiries in targeted sectors Public Disclosure Copy Value of loans to firms and individuals included Percentage Value 0.00 0.00 15.00 in CRS Date 31-Dec-2013 Comments Value of loans to firms and System not operational yet individuals included in the Credit Reporting System in a given year as percent of all lending in the same year. Page 2 of 4 The World Bank Report No: ISR15399 Value of yearly transactions settled in RTGS / Percentage Value 0.00 0.00 150.00 Annual GDP Date Comments System not operational yet Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of entrepreneurs supported by the Number Value 0.00 0.00 400.00 SCs (of which percentage female) Date 30-Jun-2015 Comments Number of entrepreneurs No Center yet. Centers are to supported by the SCs (of be set in FY15 which percentage female) Pct of female of entrepreneurs supported by Percentage Value 0.00 0.00 50.00 the SCs (of which percentage female) Sub Type Supplemental Number of investor inquiries in APIP’s Number Value 0.00 60.00 investment promotion Date 31-Dec-2013 10-Jun-2014 Comments Number of investor inquiries in APIP’s investment promotion Number of reforms adopted through the PPD Number Value 0.00 0.00 4.00 platform Date 31-Dec-2013 10-Jun-2014 Comments PPD platform being set-up now. Not operational yet. Businesses registered and included in the Number Value 0.00 0.00 150.00 Credit Reporting System Date 31-Dec-2013 10-Jun-2014 Comments Businesses registered and System not operational yet included in the Credit Reporting System Public Disclosure Copy Proportion (%) of banks with access to ACH Percentage Value 0.00 0.00 100.00 Date 31-Dec-2013 10-Jun-2014 Comments Proportion (%) of banks with System not operational yet access to an Automated Clearing house Data on Financial Performance (as of 25-Mar-2014) Financial Agreement(s) Key Dates Page 3 of 4 The World Bank Report No: ISR15399 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P128443 IDA-H8670 Effective 28-Jun-2013 20-Aug-2013 06-Dec-2013 31-Dec-2017 31-Dec-2017 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P128443 IDA-H8670 Effective XDR 6.70 6.70 0.00 0.81 5.89 12.00 Disbursement Graph Key Decisions Regarding Implementation This remains a risky project. Over project life, the overall risk rating is "Substantial" for Implementation. The main risks are political, macro-economic, health related (Ebola epidemic in FY14) and related to security (political trouble in late 2013 during presidential elections). Public Disclosure Copy This project requires close monitoring, especially of the PIU workings. This can be facilitated by a joint affectation (IFC and WB) of a staff or consultant to monitor daily progress on the field starting July 2014. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 4 of 4