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 | Finance, Competitiveness and Innovation Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2022 | Seq No: 6 | ARCHIVED on 28-Jun-2024 | ISR60808 | Implementing Agencies: Kafalat SAL, Kafalat SAL Key Dates Key Project Dates Bank Approval Date: 28-Jul-2021 Effectiveness Date: 08-Oct-2021 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 31-Jul-2024 Revised Closing Date: 31-Jul-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) 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 Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1 - Grants to MSEs:(Cost $18.50 M) Component 2 - Grants to MFIs:(Cost $5.00 M) Component 3 - Project Management and Gender Support:(Cost $1.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial 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. 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 June 10, 2024, the B5 Fund has committed US$17 million and disbursed US$14.6 million in the form of grants to MSEs, representing 96% of the total funds allocated for grants to MSEs. 3,674 grant applications were received, and 3,371 grants were approved for disbursal (447 through Kafalat – 2,924 through participating MFIs), of which 30% are Women Owed or Led (WOL) businesses. On average, MSEs reported US$15,600 in 6/28/2024 Page 1 of 6 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) terms of recovery needs, with US$73,800 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$11,400 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. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial 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 Substantial Moderate Stakeholders Moderate Moderate Moderate Other Moderate Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Support the recovery of MSEs and sustain the operations of MFIs IN01432119 ►Share of Micro and Small beneficiary enterprises that are operational for at least 12 months after receiving the grants (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 96.00 93.00 80.00 Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 The share of beneficiaries that have received grants and remained operational 12 months after receiving Comments: the grant. IN01432120 Of which are women owned or led enterprises (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 6/28/2024 Page 2 of 6 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) Value 0.00 30.00 30.00 30.00 IN01432176 ►Number of Microfinance Institutions operational for at least 24 months after receiving support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 0.00 3.00 Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 Number of Microfinance Institutions that have received OPEX support and are still operational 24 months Comments: after receiving the grants. Overall Comments PDO The number of Microfinance Institutions operational for at least 24 months after receiving support is not yet due given the first grant was provided in October 2022, however 3 MFIs are operational after 21 months from receiving support, representing 100% of the target. This indicator will be revised in the project restructuring currently being processed with the Additional Financing. Intermediate Results Indicators by Components Grants to Micro and Small Enterprises IN01432177 ►Number of Micro and Small enterprises receiving grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,998.00 3,371.00 4,300.00 Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 Comments: Number of qualified micro and small enterprises receiving grants IN01432182 Percentage of women owned or led micro and small beneficiary enterprises receiving grants (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 29.00 30.00 30.00 IN01432183 ►Amounts of funds disbursed to Micro and Small Enterprises (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12,800,000.00 14,600,000.00 17,800,000.00 Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 Comments: Amounts of funds disbursed to MSEs IN01432186 6/28/2024 Page 3 of 6 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) ►Number of jobs maintained within 12 months of receiving the grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,065.00 9,367.00 4,472.00 Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 Number of people who retained their basic source of income for at least a year (owner of or working at) Comments: the beneficiary enterprises receiving grants Grants to Microfinance Institutions IN01432178 ►Number of MFIs receiving financing (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 Number of MFIs receiving financing to support their operational expenses and/or restructure their Comments: portfolios IN01432180 ►Amount disbursed to Microfinance Institutions (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,500,000.00 4,400,000.00 4,900,000.00 Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 Comments: Amount of grants disbursed to the eligible and beneficiary MFIs IN01432184 ►Employment Capacity of Microfinance Institutions maintained (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 84.00 71.00 80.00 Date 30-Jun-2022 13-Dec-2023 07-Jun-2024 31-May-2024 Comments: Number of employees working at MFIs is maintained 6 months after receiving the grant Project Management and Gender Support IN01432179 ►Share of Micro and Small women owned or led enterprises receiving business support training (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 6/28/2024 Page 4 of 6 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 Share of Micro and Small beneficiary female - owned or led enterprises completing the training courses Comments: provided IN01432181 ►Beneficiary Engagement: Share of women owned or led beneficiary firms who reported being satisfied with technical support offered (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 Share of Micro and Small beneficiary enterprises that report satisfaction on the technical support offered Comments: in terms of usability and relevance IN01432185 ►Number of Microfinance Institutions receiving gender sensitive training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 16-Aug-2021 13-Dec-2023 07-Jun-2024 31-May-2024 Comments: Number of MFIs receiving training on gender sensitive products and strategy development Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P176013 TF-B6361 Effective USD 25.00 25.00 0.00 24.69 0.31 99% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P176013 TF-B6361 Effective 28-Jul-2021 05-Aug-2021 08-Oct-2021 31-Jul-2024 31-Jul-2024 Cumulative Disbursements 6/28/2024 Page 5 of 6 The World Bank Implementation Status & Results Report Building Beirut Businesses Back & Better (B5) Fund (P176013) Restructuring History There has been no restructuring to date. Related Project(s) P181623-Building Beirut Businesses Back & Better (B5) Fund - Additional Financing ,P181628-Building Beirut Businesses Back & Better (B5) Fund - Additional Financing 6/28/2024 Page 6 of 6