Public Disclosure Copy The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) LB Supporting Innovation in SMEs Project (P127306) MIDDLE EAST AND NORTH AFRICA | Lebanon | Finance & Markets Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 9 | ARCHIVED on 29-Nov-2017 | ISR30148 | Implementing Agencies: Ministry of Finance, Kafalat Key Dates Key Project Dates Bank Approval Date:31-Oct-2012 Effectiveness Date:03-Feb-2015 Planned Mid Term Review Date:20-Feb-2017 Actual Mid-Term Review Date:20-Mar-2017 Original Closing Date:30-Jun-2018 Revised Closing Date:30-Jun-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project’s development objective is to encourage the equity investment market to increase the supply of early stage investment finance for financially viable, new, and existing innovative firms. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Innovation in SMEs (iSMEs) Funding Program:(Cost $27.50 M) Project Management:(Cost $2.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions 11/29/2017 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) Kafalat has established partnerships with 6 Investor Partners to co-invest in potential opportunities: MEVP, Berytech Fund II, Leap Ventures, Saned Equity Partners, IM Capital, and Y Venture Partners. Since project effectiveness 12 firms have received equity financing under the iSME program for a total investment value of $4,886,000. 128 firms have received concept development grants for a total volume of $1,507,800. An estimated $5 million has been raised in financing from the market for 30 companies receiving these grants (including commercial banks). A mid-term review of the project was conducted by the World Bank in January 2017 and finalized in May 2017. The review found the project progressing relatively well, and recommended some procedural changes to help make the evaluation and investment decision-making process more efficient. The project’s approach was also modified to allow Kafalat to make investments/commitments in funds, Angel networks, and accelerators, in addition to co- investments in start-ups. This approach was launched in June 2017 and is being implemented accordingly. Since June 30 2017 the iSME fund has made 3 direct investments in start-ups for a combined offering value of $540,000 leveraging a total investment of $1,460,000. The iSME fund has approved two indirect investments for a total offering of $545,000 to leverage total investments of $1,090,000. Those interested in applying for capital funding can contact Kafalat through the information provided on their website. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Low  Moderate Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  a) Total number of firms receiving equity financing leveraging investors and the iSME funding program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 12.00 110.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 11/29/2017 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) PHINDPDOTBL  No. of beneficiary firms, women owned (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 4.00 10.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 PHINDPDOTBL  b) Total amount of equity financing received (leveraged) through the project, leveraging investors and the iSME funding program (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 16,000,000.00 18,800,000.00 50,000,000.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 PHINDPDOTBL  c) Total number of firms receiving equity financing leveraging investors only (as a result of a Grant) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 17.00 29.00 30.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 PHINDPDOTBL  a) Number of new/ improved products/processes offered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 57.00 90.00 166.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 PHINDPDOTBL  b) Number of new start-ups created under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 59.00 70.00 11/29/2017 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 PHINDPDOTBL  b) No. of new jobs created in beneficiary SMEs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 22.00 180.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 PHINDPDOTBL  No. of new jobs created, of which % are filled by women (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 7.00 10.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 Overall Comments Intermediate Results Indicators PHINDIRITBL  Intermediate Result Indicator 1: No. of firms applying for Phase 1 proof of concept grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 204.00 229.00 400.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 11/29/2017 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) PHINDIRITBL  Intermediate Result Indicator 2: No. of firms receiving proof of concept grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 128.00 200.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 PHINDIRITBL  Intermediate Result Indicator 3: Vol. of proof of concept grants (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 500,000.00 1,507,800.00 2,500,000.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 PHINDIRITBL  Intermediate Result Indicator 4: No. of firms applying for equity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 16.00 24.00 170.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 PHINDIRITBL  Intermediate Result Indicator 5: No. of firms successfully receiving equity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 12.00 150.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 11/29/2017 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) PHINDIRITBL  Intermediate Result Indicator 6: Total vol. of Phase equity investments (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,130,000.00 4,886,000.00 25,000,000.00 Date 04-Feb-2015 20-Mar-2017 08-Nov-2017 30-Jun-2018 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P127306 IBRD-82020 Effective USD 30.00 30.00 0.00 10.29 19.71 34% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127306 IBRD-82020 Effective 31-Oct-2012 13-Feb-2013 03-Feb-2015 30-Jun-2018 30-Jun-2018 Cumulative Disbursements 11/29/2017 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/29/2017 Page 7 of 7 Public Disclosure Copy