The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) Building Beirut Businesses Back & Better (B5) Fund (P176013) MIDDLE EAST AND NORTH AFRICA | Lebanon | IBRD/IDA | Investment Project Financing (IPF) | FY 2022 | Seq No: 7 | Archived on 28-Jan-2025 | ISR02870 Implementing Agencies: Kafalat SAL 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Decision package on 28-Jul-2021) The Project Development Objective is to support the recovery of targeted micro and small enterprises (MSEs) and sustain the operations of eligible microfinance institutions (MFIs). Has the Development Objective been changed since Board Approval of the Project Objective? Yes Current Development Objective (Approved as part of Additional Financing package Seq. 2 on 28-Jun-2024) The Project Development Objective is to support the recovery of targeted micro and small enterprises (MSEs) and sustain the operations of eligible microfinance institutions (MFIs). 2. COMPONENTS Name Component 1 - Grants to MSEs:(Cost 18,500,000.00) Component 2 - Grants to MFIs:(Cost 7,700,000.00) Component 3 - Project Management and Gender Support:(Cost 1,800,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Jan 28, 2025 Page 1 of 9 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions The Building Beirut Businesses Back and Better Fund (B5) Fund is a US$25 million grant to support the recovery of targeted Micro and Small Enterprises (MSEs) damaged by the Port of Beirut explosion of August 4, 2020, and sustain the operations of eligible Microfinance Institutions (MFIs). The B5 Fund will also help preserve private sector jobs and reduce business closure and layoffs. On June 28, 2024, a US$3 million Additional Financing (AF) was approved. The B5 Fund is financed by the Lebanon Financing Facility (LFF), a multi-donor trust fund established in December 2020 and managed by the World Bank to pool and coordinate grants resources from donors in support of the immediate socio- economic recovery of vulnerable people and businesses impacted by the explosion. As of December 11, 2024, the B5 Fund has committed US$17.8 million and disbursed US$17.4 million in the form of grants to MSEs, representing 100% of the total funds allocated for grants to MSEs. 3,781 grant applications were received (543 through Kafalat – 3,238 through participating MFIs), and 3,587 grants were approved for disbursal (450 through Kafalat – 3,137 through participating MFIs), of which 30% are Women Owed or Led (WOL) businesses. On average, MSEs reported US$15,400 in terms of recovery needs, with US$73,600 for MSEs applying through Kafalat - formal Joint Stock or Limited Liability MSEs and US$5,700 for MSEs applying through MFIs - informal MSEs, Sole Proprietorship, General and Limited Partnerships. The average grant per MSE is US$5,000 with US$11,500 for MSEs applying through Kafalat and US$4,000 for MSEs applying through MFIs. Moreover, three MFIs were selected to benefit from grants to sustain their operations: Al Majmoua, Vitas and Ibdaa, and all funds were allocated to them. To date, 214 WOL received training sessions to improve their financial management skills, their e-commerce and legal awareness. All activities under the AF were initiated, including providing grants to MFIs for onlending to MSEs, and the procurement process for competitively hiring a consultant to provide capacity building for one MFI. The project closing date is June 30, 2025. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - AF Seq. 02 Approval - Proposed Rating 28 Jul 2021 28 Jun 2024 Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial Jan 28, 2025 Page 2 of 9 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Low Low Low Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Moderate Moderate Stakeholders Moderate Moderate Moderate Overall Substantial Substantial Substantial Jan 28, 2025 Page 3 of 9 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Support the recovery of MSEs and sustain the operations of MFIs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Share of Micro and Small 0.00 Aug/2021 93.00 10-Dec-2024 93.00 10-Dec-2024 80.00 Jun/2025 beneficiary enterprises that Comments on The share of beneficiaries that have received grants and remained operational 12 months are operational for 6 months achieving targets after receiving the grant. after receiving the grants (Percentage) 0.00 30.00 30.00 30.00 Comments on Percentage of female owned or led firms that are operational 12 months post blast. Woman- Of which are women achieving targets owned enterprise is defined as having at least one owner who is a woman, and woman-led owned or led enterprise as having at least one woman in a managerial or leadership position. The target enterprises survival rate of all beneficiary enterprises, including women owned or led enterprises, is (Percentage) 80%. The share of women owned or led beneficiary enterprises among all beneficiary enterprises is 30%. Number of Microfinance 0.00 Aug/2021 Not yet due 30-Jun-2025 Not yet due 30-Jun-2025 3.00 Jun/2025 Institutions operational for at Comments on Number of Microfinance Institutions that have received OPEX support and are still least 24 months or by project achieving targets operational 24 months after receiving the grants. closing date (whichever comes later) after receiving support (Number) 6.2 Intermediate Results Indicators by Components Jan 28, 2025 Page 4 of 9 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) Component 1 - Grants to MSEs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of Micro and Small 0.00 Aug/2021 3,587.00 11-Dec-2024 3,587.00 11-Dec-2024 3,500.00 Jun/2025 enterprises receiving grants Comments on Number of qualified micro and small enterprises receiving grants (Number) achieving targets Percentage of women 0.00 30.00 30.00 30.00 owned or led micro and small beneficiary enterprises receiving grants (Percentage) Amounts of funds disbursed 0.00 Aug/2021 17,400,000.00 11-Dec-2024 17,400,000.00 11-Dec-2024 17,800,000.00 Jun/2025 to Micro and Small Enterprises (Amount(USD)) Number of jobs maintained 0.00 Aug/2021 9,600.00 11-Dec-2024 9,600.00 11-Dec-2024 7,600.00 Jun/2025 within 6 months of receiving Comments on Number of people who retained their basic source of income for at least a year (owner of or the grants (Number) achieving targets working at) the beneficiary enterprises receiving grants Component 2 - Grants to MFIs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of MFIs receiving 0.00 Oct/2022 3.00 30-Sep-2024 3.00 30-Sep-2024 3.00 Sep/2024 financing for OPEX Comments on Number of MFIs receiving financing to support their operational expenses and/or (Number) achieving targets restructure their portfolios Amount disbursed to 0.00 Oct/2022 4,900,000.00 30-Sep-2024 4,900,000.00 30-Sep-2024 4,900,000.00 Sep/2024 Microfinance Institutions for Comments on Amount of grants disbursed to the eligible and beneficiary MFIs OPEX (Amount(USD)) achieving targets 0.00 Oct/2022 70.00 30-Sep-2024 70.00 30-Sep-2024 70.00 Sep/2024 Jan 28, 2025 Page 5 of 9 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) Employment Capacity of Comments on Number of employees working at MFIs is maintained 6 months after receiving the grant Microfinance Institutions achieving targets maintained (Percentage) Number of micro and small 0.00 Jun/2024 0.00 11-Dec-2024 0.00 11-Dec-2024 1,350.00 Jun/2025 businesses benefitting from financial services (Number) of which are for women 0.00 0.00 0.00 30.00 owned or led businesses (Percentage) Improved capacity for one No Jun/2024 Not yet due 11-Dec-2024 Not yet due 11-Dec-2024 Yes Jun/2025 MFI (Yes/No) Time-bound capitalization 0.00 Jun/2024 Not yet due 11-Dec-2024 Not yet due 11-Dec-2024 4.00 Jun/2025 plans developed for MFIs participating in B5 (Number) Number of jobs maintained 0.00 Jun/2024 0.00 11-Dec-2024 0.00 11-Dec-2024 1,350.00 Jun/2025 at beneficiary businesses (Number) of which are for women 0.00 0.00 0.00 30.00 (Percentage) Component 3 - Project Management and Gender Support Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Share of Micro and Small 0.00 Dec/2023 20 11-Dec-2024 20 11-Dec-2024 50.00 Jun/2025 women owned or led Comments on Share of Micro and Small beneficiary female - owned or led enterprises completing the enterprises receiving achieving targets training courses provided business support training (Percentage) 0.00 Dec/2023 Not yet due 11-Dec-2024 Not yet due 11-Dec-2024 75.00 Jun/2025 Jan 28, 2025 Page 6 of 9 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) Beneficiary Engagement: Comments on Share of Micro and Small beneficiary enterprises that report satisfaction on the technical Share of women owned or achieving targets support offered in terms of usability and relevance led beneficiary firms who reported being satisfied with technical support offered (Percentage) Jan 28, 2025 Page 7 of 9 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed TF-B6361 Effective 25.00 25.00 0.00 25.00 0.00 100.00 % TF-C4711 Effective 3.00 3.00 0.00 1.00 2.00 33.33% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing TF-B6361 Effective 28-Jul-2021 05-Aug-2021 08-Oct-2021 31-Jul-2024 30-Jun-2025 Jan 28, 2025 Page 8 of 9 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) TF-C4711 Effective 23-Jul-2024 24-Jul-2024 24-Jul-2024 30-Jun-2025 30-Jun-2025 8. KEY DATES Key Events Planned Actual Approval 30-Jul-2021 28-Jul-2021 Effectiveness 08-Oct-2021 08-Oct-2021 Mid-Term Review No. 01 25-Sep-2023 25-Sep-2023 Operation Closing/Cancellation 30-Jun-2025 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 09-Dec-2024 10. ASSOCIATED OPERATION(S) There are no associated operations Jan 28, 2025 Page 9 of 9