Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PNG - Small and Medium Enterprise Access to Finance Project (P120707) EAST ASIA AND PACIFIC | Papua New Guinea | Finance & Markets Global Practice | IBRD/IDA | Financial Intermediary Loan | FY 2011 | Seq No: 10 | ARCHIVED on 22-Dec-2016 | ISR26422 | Implementing Agencies: Department of Commerce and Industry Key Dates Key Project Dates Bank Approval Date:03-May-2011 Effectiveness Date:15-Sep-2011 Planned Mid Term Review Date:28-Feb-2014 Actual Mid-Term Review Date:28-Oct-2013 Original Closing Date:31-Dec-2024 Revised Closing Date:31-Dec-2024 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed development objective of this project is to facilitate access to sustainable credit for small and medium enterprises and thus contribute to incremental growth of SME employment and income. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Risk Share Facility:(Cost $11.90 M) Performance-based TA to participating financial intermediaries:(Cost $2.95 M) TA to enhance SME Capacity:(Cost $5.03 M) TA to the Department of Commerce and Industry:(Cost $6.62 M) 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 12/22/2016 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Implementation Status and Key Decisions The Project became effective on September 15, 2011. All conditions for withdrawal of IDA credit were met for all categories specified in the Financing Agreement as of March 12, 2012 with IDA issuing confirmation letters to the GoPNG. The 1st loss coverage from IDA for RSF with BSP has been transferred to the TF account established for the RSF Component as of June 20, 2012 The Year-to-Date overall implementation is rated as Moderately Satisfactory (MS). The MS rating reflects the delay in 2nd FI selection for RSF and implementation of planned TA activities under Component 3 (capacity building for SMEs) Component 1 – RSF with BSP is rated Moderately Satisfactory due to suspension of RSF with higher than agreed NPL threshold as of January 1, 2016; Component 2 - Performance-Based Grant implementation is rated Satisfactory Component 3 – TA to SMEs is rated Moderately Satisfactory Component 4 – Project Management and TA to Government is rated Moderately Satisfactory 12/22/2016 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) 12/22/2016 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) 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  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Increase flow of credit to SMEs from BSP (in PNG Kina million) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 129.00 129.00 250.00 Date 01-Aug-2011 31-Dec-2015 31-Dec-2015 29-Jun-2018 Comments 12/22/2016 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) The reported amount is in PGK million. PHINDPDOTBL  Number of new SME loans under BSP RSF. (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1,509.00 1,509.00 1,000.00 PHINDPDOTBL  Loans to business owned by women only and women as principal partners (Number of loans) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 183.00 183.00 100.00 PHINDPDOTBL  Loans to business owned by women only and women as principal partner (in PGK million) (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 19.00 19.00 15.00 Overall Comments No change as the BSP RSF portfolio was suspended as of January 2016 due to higher than accepted NPL ratio. No new loans were allowed to be added to the RSF portfolio after January 2016. Intermediate Results Indicators 12/22/2016 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PHINDIRITBL  Return on assets (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.50 2.00 2.00 1.50 Date 31-Aug-2011 31-Dec-2015 31-Dec-2015 30-Dec-2016 Comments ROA for FIs only. Source: FI annual audited financial reports PHINDIRITBL  Improved SME managerial and financail skills - # trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 412.00 774.00 640.00 Date 31-Aug-2011 31-Dec-2015 13-Dec-2016 31-Dec-2017 Comments The planned SME Training under this component has completed as of Oct 2016 with a full training curriculum developed and tested. Training was delivered to 774 SMEs in more than 15 provinces, reaching the original goal. The SME training materials are to be reviewed by local training authority to be certified for further expansion of the training program to more SMEs in PNG. PHINDIRITBL  Numbers of women in SMEs trained (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 191.00 391.00 300.00 12/22/2016 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PHINDIRITBL  % trainees obtaining the loans (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 20.00 60.00 PHINDIRITBL  Improved GoPNG capacity to supoport SME sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The SME Baseline Baseline survey survey findings were findings were used to used to support DCI and support DCI and other NEC in the drafting of government agencies new SME Development Survey findings in the drafting of new Plan for 2016-2018 and used by DCI SME Development National Economic officials in SME Value Baseline survey Plan for 2016-2018. Development Strategy. policy and DCI plans to do follow- The 2nd SME survey is strategy up SME survey to to be implemented in development monitor the changes to 2017 to monitor the support policy changes of demands of implementation. local SMEs during the implementation of SME policies. Date 28-Feb-2014 31-Dec-2015 31-Oct-2016 30-Jun-2016 PHINDIRITBL  Training of provincial DCI officials (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 36.00 36.00 40.00 Overall Comments To better link the training to access to credits, BSP credit officers were introduced during the trainings and they will follow up on loan applications submitted by the trainees. DCI PIU is also to work with local education/training authorities to review these materials before expanding the training to larger audience. DCI PIU is to arrange an evaluation among the trainees in the next 6 months. The 2nd SME Survey and 2nd beneficiary survey will be arranged in 2017 to further assess the demand of local SMEs and provide useful information to support SME policy implementation and new product/services development by FIs. Coordination and information sharing with key stakeholders in SME development and Financial Inclusion in PNG will be strengthened in doing these surveys. 12/22/2016 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P120707 IDA-49280 Effective XDR 13.93 13.93 0.00 8.03 5.90 58% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120707 IDA-49280 Effective 03-May-2011 14-Jun-2011 15-Sep-2011 31-Dec-2024 31-Dec-2024 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 12/22/2016 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) There are no related projects. 12/22/2016 Page 9 of 9 Public Disclosure Copy