Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia Innovation and Entrepreneurship Venture Capital Project (P152130) Croatia Innovation and Entrepreneurship Venture Capital Project (P152130) EUROPE AND CENTRAL ASIA | Croatia | Trade & Competitiveness Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 2 | ARCHIVED on 01-Jun-2016 | ISR23672 | Implementing Agencies: Hamag-Bicro Key Dates Key Project Dates Bank Approval Date:07-Jul-2015 Effectiveness Date:06-Oct-2015 Planned Mid Term Review Date:10-Apr-2017 Actual Mid-Term Review Date:-- Original Closing Date:30-Sep-2021 Revised Closing Date:30-Sep-2021 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to strengthen risk capital financing for innovative SMEs and startups in Croatia Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Pilot Venture Capital Fund:(Cost $17.10 M) Component 2: Seed Co-Investment Fund:(Cost $2.74 M) Component 3: Technical Assistance:(Cost $1.64 M) Unallocated amount:(Cost $0.44 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 6/1/2016 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia Innovation and Entrepreneurship Venture Capital Project (P152130) Implementation Status and Key Decisions The project implementation is progressing slowly, mainly due to the changes in the Croatian Government and the Executive Board of HAMAG-BICRO which had impact on the decision-making process relevant for the project. Activities under the Component 2 (Seed Co-Investment Fund) were recently launched in a public event on April 12th, 2016 in Zagreb. Moreover the capacity for project implementation of the HAMAG-BICRO has recently been strengthened with additional fiduciary and procurement experts and so we expect initial disbursements under the project shortly. In addition, MoEC expressed the intention to change the design of the Component 1 (Pilot Venture Capital Fund) in order to align it with best practices. The new proposed design will allow the Fund to be registered outside Croatia where it is possible to establish the Fund as a limited partnership or similar tax transparent structure. Request from the Government for the project restructuring is then expected due to the change in the design of the Fund structure. The PIU team has just been reinforced with FM and Procurement specialists following No Objection received from the World Bank team. Both new PIU members are on board as of May 2, 2016. Currently, the project indicators still show a slower progress than initially envisaged due to changes in the Croatian Government, therefore the project performance is rated as moderately satisfactory Activities under the Component 2 (Seed Co-Investment Fund) were recently launched in a public event on April 12th, 2016 in Zagreb. Moreover the capacity for project implementation of the HAMAG-BICRO has recently been strengthened with additional fiduciary and procurement experts and so we expect initial disbursements under the project shortly. In addition, MoEC expressed the intention to change the design of the Component 1 (Pilot Venture Capital Fund) in order to align it with best practices. The new proposed design will allow the Fund to be registered outside Croatia where it is possible to establish the Fund as a limited partnership or similar tax transparent structure. Potential request from the Government for the project restructuring is then expected due to the change in the design of the Fund structure. 6/1/2016 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia Innovation and Entrepreneurship Venture Capital Project (P152130) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  Substantial  Substantial  Substantial Macroeconomic  Substantial  Substantial  Substantial Sector Strategies and Policies  Moderate  Moderate  Moderate Technical Design of Project or Program  High  High  High Institutional Capacity for Implementation and Sustainability  High  High  High Fiduciary  High  High  High Environment and Social  Low  Low  Low Stakeholders  Moderate  Moderate  Moderate Other  Low  Low  Low Overall  Substantial  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Total number of firms receiving risk capital financing from the Seed Co-investment Fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 15.00 Date 01-Oct-2015 -- 18-May-2016 01-Oct-2020 PHINDPDOTBL  Total number of firms receiving risk capital financing from the Venture Capital Fund (Number, Custom) 6/1/2016 Baseline Actual (Previous) Actual (Current) Page 3 of 8 End Target Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia Innovation and Entrepreneurship Venture Capital Project (P152130) Value 0.00 0.00 0.00 12.00 Date 01-Oct-2015 22-Oct-2015 18-May-2016 01-Oct-2020 PHINDPDOTBL  Number of firms receiving investment that successfully introduced a new product, process, service, or upgraded the quality of an ex isting product, process, or service (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 14.00 Date 01-Oct-2015 22-Oct-2015 18-May-2016 01-Oct-2020 PHINDPDOTBL  Training provided (to government staff, investors and potential investees) under the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 133.00 Date 01-Oct-2015 -- 18-May-2016 01-Oct-2020 Overall Comments Intermediate Results Indicators PHINDIRITBL  Total amount of risk capital financing provided from the Seed Co-Investment Fund and leveraged from private investors (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 5.48 Date 01-Oct-2015 -- 18-May-2016 01-Oct-2020 6/1/2016 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia Innovation and Entrepreneurship Venture Capital Project (P152130) PHINDIRITBL  Private sector investment leveraged by the Seed Co-Investment Fund (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3.29 Date 01-Oct-2015 -- 18-May-2016 01-Oct-2020 PHINDIRITBL  Co-investors in firms alongside the Seed Co-Investment Fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 8.00 Date 01-Oct-2015 -- 18-May-2016 01-Oct-2020 PHINDIRITBL  Total amount of risk capital financing provided by the public sector through the Pilot VC Fund and by the private sector investing in the fund (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 21.92 Date 01-Oct-2015 -- 18-May-2016 01-Oct-2020 PHINDIRITBL  Private sector investment leveraged into the Pilot VC Fund (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.77 Date 01-Oct-2015 23-Oct-2015 18-May-2016 01-Oct-2020 6/1/2016 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia Innovation and Entrepreneurship Venture Capital Project (P152130) PHINDIRITBL  Co-investors in the Pilot VC Fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 4.00 Date 01-Oct-2015 -- 18-May-2016 01-Oct-2020 PHINDIRITBL  Training provided to investors under the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 44.00 Date 01-Oct-2015 -- 18-May-2016 01-Oct-2020 PHINDIRITBL  Training provided to potential investees (entepreneurs) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 44.00 Date 01-Oct-2015 -- 18-May-2016 01-Oct-2020 PHINDIRITBL  Training provided to government officials (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 44.00 Date 01-Oct-2015 23-Oct-2015 18-May-2016 01-Oct-2020 6/1/2016 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia Innovation and Entrepreneurship Venture Capital Project (P152130) PHINDIRITBL  Training provided to female investees (entrepreneurs) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 01-Oct-2015 23-Oct-2015 18-May-2016 01-Oct-2020 PHINDIRITBL  Training provided to female government officials (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 01-Oct-2015 23-Oct-2015 18-May-2016 01-Oct-2020 PHINDIRITBL  Number of SMEs/startups satisfied with quality of services provided under the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 27.00 Date 01-Oct-2015 -- 18-May-2016 01-May-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P152130 IBRD-85180 Effective USD 21.92 21.92 0.00 0.00 21.92 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152130 IBRD-85180 Effective 07-Jul-2015 08-Jul-2015 06-Oct-2015 30-Sep-2021 30-Sep-2021 6/1/2016 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia Innovation and Entrepreneurship Venture Capital Project (P152130) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/1/2016 Page 8 of 8 Public Disclosure Copy