$ Report No: RES00082 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Innovative Startups and SMEs Fund Project APPROVED ON 23-Jun-2017 TO Government of Jordan, represented by the Ministry of Planning and International Cooperation (MOPIC) Finance, Competitiveness and Innovation Middle East And North Africa Regional Vice President: Ousmane Dione Regional Director: Nadir Mohammed Country Director: Jean-Christophe Carret Practice Manager: Irina Astrakhan Task Team Leader(s): John Gabriel Goddard, Mohamed Hassan Abdulkader, Andrius Skarnulis The World Bank Innovative Startups Fund Project (P161905) ABBREVIATIONS AND ACRONYMS ISSF Innovative Startups Fund Project IPF Investment Project Financing JLGC Jordan Loan Guarantee Corporation MNADE Middle East and North Africa Development & Effectiveness MOPIC Ministry of Planning and International Cooperation SMEs Small and medium enterprises The World Bank Innovative Startups Fund Project (P161905) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P161905 Innovative Startups Fund Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Jordan Approval Date Current Closing Date 23-Jun-2017 27-Jun-2024 Original EA Category Financial Intermediary Assessment (F) (PAD Approval Package-23 Jun 2017) Organizations Borrower Responsible Agency Government of Jordan, represented by the Ministry of Innovative Startups and SMEs Fund, Jordan Loan Guarantee Planning and International Cooperation (MOPIC) Corporation @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Current Development Objective The project’s development objective is to increase private early stage equity finance for innovative small and medium enterprises ("SMEs"). Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Balance % Disbursed IBRD 50.00 40.83 9.18 81.65 i The World Bank Innovative Startups Fund Project (P161905) IDA -- -- -- 0 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Innovative Startups Fund Project (P161905) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING a) The project has showcased strong results in improving access for early-stage funding for Jordanian startups by mobilizing equity capital for pre-seed, seed, and venture capital. More than 80% of the ISSF’s investable capital has been allocated to date, and the ISSF’s deployed investments have attracted over US$ 191 million in private capital in multiple funding raises, leveraging 17 institutional investors, and financing 124 companies (of which 25 percent were women-led businesses). This has resulted in the creation of over 1,700 jobs in Jordan. ISSF has also played a pivotal role in supporting startups through investment readiness and business development services, stimulating the pipeline of investible startups through incubation and acceleration services. The project remains strategically relevant, and beneficial to support the growth of Jordan's entrepreneurship ecosystem. To date, the project has disbursed 82% out of total $50 million that is financed by the World Bank. b) The Government of Jordan has requested the extension of the project’s closing date by 12 months, from June 28, 2024, to June 30, 2025. The extension is justified by several reasons: (i) the high impact and strategic relevance of the project; (ii) this additional time needed will enable the commitment of the remaining funds. II. DESCRIPTION OF PROPOSED CHANGES c) Only the extension of the project’s closing date is requested. The new closing date after the extension is within 24 months of the original closing date of the project, the requirements of para. 51 of the IPF directive are met, and no other changes are being made and the requirements of para. 51 of the IPF directive are met. @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Development Objective No Loan Closing Date Extension Yes Safeguard Policies Triggered No Loan Cancellations No ISDS No Reallocations No MFD/PCE No Financial Management No Page 1 The World Bank Innovative Startups Fund Project (P161905) Results No Procurement No Risks No Institutional Arrangement No Legal Covenants No Implementation Schedule No Conditions No Implementation Modalities No Disbursements Estimates No Disbursements Arrangements No DDO No Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Loan Closing Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications IBRD-87670-001 Effective 30-Nov-2023 27-Jun-2024 30-Jun-2025 30-Oct-2025 Page 2