The World Bank Implementation Status & Results Report Innovative Private Sector Development II (P181354) Innovative Private Sector Development II (P181354) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | IBRD/IDA | Investment Project Financing (IPF) | FY 2024 | Seq No: 3 | Archived on 24-Feb-2025 | ISR03224 Implementing Agencies: Ministry of National Economy through a private sector implementing agency 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 20-Sep-2023) To improve economic opportunities for tech enabled startups and innovative SMEs, and individuals in the digital economy in the West Bank and Gaza. For the purposes of this project economic opportunities include access to the following resources: (a) early-stagefinance, (b) market access activities, (c) mentorship, (d) skills enhancement training, (e) employment matchmaking, and (f) streamlied formal business registration. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Entrepreneurship Ecosystem Development:(Cost 9,000,000.00) Building an Outsourcing Hub in Gaza and West Bank :(Cost 2,800,000.00) Project Management and Implementation Support:(Cost 2,700,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating High High Feb 24, 2025 Page 1 of 8 The World Bank Implementation Status & Results Report Innovative Private Sector Development II (P181354) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions To address market challenges, the Innovative Sector Development II Project (IPSD II) has prioritized connecting Palestinian startups and small and medium enterprises (SMEs) to global opportunities. In 2024, IPSD II facilitated the participation of 38 startups in international investor pitch events, including Expand North Star Dubai in October 2024, Biban in Riyadh November 2024, and Take-Off Istanbul in December 2024, providing preparation support and coordinating B2B meetings. Co-Investment Grants in the overall amount of about $800k were awarded to four startups, which mobilized private investment of USD $1.8 million. In parallel, the Co-Investment Grants Manual was reviewed based on the lessons learned during IPSD implementation.. The IGNITE program is expected to be relaunched during Q2 of 2025. A major milestone was achieved with the launch of the new Automated Business Registry System (ABRS) in September 2023. The Automated Business Registry System (ABRS), enables businesses to register, close, merge, split, and update their information online. More than 800 new companies registered using the ABRS portal since its launch. The project is continuing to support full implementation of the ABRS, including securing interoperability with the Tax Authority and other key agencies and capacity building of the Ministry of National Economy and ABRS staff. Thanks to the remarkable resilience of its staff, proactive client engagement, and the utilization of its offices in the West Bank, GGateway has continued delivering on its outsourcing contracts throughout the conflict. As a result, no contracts were lost. The Project Implementation Agency (PIA) and the Bank team is closely monitoring the situation and maintaining ongoing conversations with potential new beneficiaries of IPSD II and sector stakeholders. The PIA maintains its readiness to adjust as necessary to mitigate the negative impact of the conflict on the project to the extent possible. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 02 - 03 Aug Proposed Rating 20 Sep 2023 2024 Political and Governance High High High Macroeconomic Substantial High High Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Feb 24, 2025 Page 2 of 8 The World Bank Implementation Status & Results Report Innovative Private Sector Development II (P181354) Institutional Capacity for Implementation and Moderate Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Overall Substantial High High Feb 24, 2025 Page 3 of 8 The World Bank Implementation Status & Results Report Innovative Private Sector Development II (P181354) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Amount of private capital mobilized by project beneficiaries Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Sep/2023 0 20-Dec-2023 3,045,892 14-Feb-2025 8,000,000.00 Dec/2028 Amount of private Comments on The total (local and international) private capital raised/committed as a result of: (i) angel investment mobilized by achieving targets investors/groups investments made in the first round of co-investment and any new project beneficiaries investment raised throughout the duration of the project(ii) pre-investment grant awardees (Amount(USD)) raising their next round of investment capital (iii) capital raised by other start-ups/SMEs receiving other project support. Out of which is from 0.00 Sep/2023 0 20-Dec-2023 2,352,892 14-Feb-2025 4,000,000.00 Dec/2028 local sources Comments on The total local private capital raised/committed (Amount(USD)) achieving targets Out of which is from 0.00 Sep/2023 0 20-Dec-2023 693,000 14-Feb-2025 4,000,000.00 Dec/2028 international sources Comments on The total international private capital raised/committed (Amount(USD)) achieving targets 0.00 Jul/2023 0 20-Dec-2023 46 14-Feb-2025 600.00 Dec/2028 Number of additional skilled Comments on Full and part-time jobs reported by project beneficiaries (individual and firms). Part-time jobs created (Number) achieving targets jobs are considered if they generate an income of minimum 200 USD/ month. Out of which are 0.00 Sep/2023 0 20-Dec-2023 12 14-Feb-2025 180.00 Dec/2027 female skilled jobs (Number) Feb 24, 2025 Page 4 of 8 The World Bank Implementation Status & Results Report Innovative Private Sector Development II (P181354) 6.2 Intermediate Results Indicators by Components Entrepreneurship Ecosystem Development Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Beneficiaries satisfied with 0.00 Sep/2023 0 20-Dec-2023 100 14-Feb-2025 80.00 Dec/2028 project interventions (Citizen Comments on Beneficiary firms/individuals that reported satisfied or very satisfied with the financial and Engagement Indicator) achieving targets non-financial support provided by the project (Percentage) 0.00 Sep/2023 0 20-Dec-2023 0 14-Feb-2025 2.00 Dec/2028 Number of angel groups Comments on Number of individual and angel groups brought together by the project to provide seed organized (Number) achieving targets investments into startups supported by the project Number of searches 0.00 Sep/2023 0 20-Dec-2023 305 14-Feb-2025 50,000.00 Dec/2028 conducted in the online Comments on Number of searches done in the online database of company registrations business registry (Number) achieving targets Number of company 0.00 Sep/2023 0 20-Dec-2023 23 14-Feb-2025 25.00 Dec/2028 registration procedures Comments on number of registration procedures that have been automated (includes initial registration automated (Number) achieving targets procedure and changes to registered data) Firms benefiting from private 0.00 Sep/2023 8 30-Jun-2024 26 14-Feb-2025 100.00 Dec/2028 sector initiatives (Number) out of which female 0.00 Sep/2023 0 20-Dec-2023 9 14-Feb-2025 30.00 Dec/2028 owned/led (Number) Implemented reforms 0.00 Sep/2023 0 20-Dec-2023 28 14-Feb-2025 5.00 Dec/2028 supporting private sector development (Number) Building an Outsourcing Hub in Gaza and West Bank Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Feb 24, 2025 Page 5 of 8 The World Bank Implementation Status & Results Report Innovative Private Sector Development II (P181354) 0.00 Sep/2023 0 20-Dec-2023 0 14-Feb-2025 100.00 Dec/2028 Increase in GGateway Comments on Revenue may include different sources (public, fees paid by trainees, royalties, business revenue (Percentage) achieving targets contracts, donor funding). Any direct support under this project to GGateway should not be considered as a revenue. 0.00 Sep/2023 0 20-Dec-2023 81 14-Feb-2025 400.00 Dec/2028 Individuals benefiting from Comments on Private sector initiatives for individuals include the activities under Component 2 of the private sector initiatives achieving targets project. Individuals will also benefit indirectly, for example through new jobs created, by the (Number) private sector initiatives for firms under component 1 of the project 0.00 Sep/2023 0 20-Dec-2023 28 14-Feb-2025 150.00 Dec/2028 Out of which are Comments on Number of individuals supported/trained under the different project components females (Number) achieving targets Feb 24, 2025 Page 6 of 8 The World Bank Implementation Status & Results Report Innovative Private Sector Development II (P181354) 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-C2569 Effective 10.50 10.50 0.00 0.70 9.80 6.68% TF-C2568 Effective 4.00 4.01 0.00 2.29 1.71 57.31% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing TF-C2568 Effective 25-Sep-2023 27-Sep-2023 11-Oct-2023 28-Oct-2025 28-Oct-2025 Feb 24, 2025 Page 7 of 8 The World Bank Implementation Status & Results Report Innovative Private Sector Development II (P181354) TF-C2569 Effective 25-Sep-2023 27-Sep-2023 11-Oct-2023 31-Dec-2028 31-Dec-2028 8. KEY DATES Key Events Planned Actual Approval 20-Sep-2023 20-Sep-2023 Effectiveness 11-Oct-2023 11-Oct-2023 Mid-Term Review No. 01 18-Oct-2026 Operation Closing/Cancellation 31-Dec-2028 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Feb 24, 2025 Page 8 of 8