Document of the World Bank FOR OFFICIAL USE ONLY Report No: ICR00005938 IMPLEMENTATION COMPLETION AND RESULTS REPORT IBRD 9149-SC ON A LOAN IN THE AMOUNT OF US$15 MILLION TO THE REPUBLIC OF SEYCHELLES FOR THE COVID-19 CRISIS RESPONSE EMERGENCY DEVELOPMENT POLICY FINANCING (P174198) December 23, 2022 Macroeconomics, Trade And Investment Global Practice Eastern And Southern Africa Region The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) CURRENCY EQUIVALENTS Exchange Rate Effective; November 30, 2022 Currency Unit = Seychelles Rupee (SCR) SCR 14.49 = US$1 US$1.42 = SDR 1 Fiscal Year January 1 – December 31 Abbreviations and Acronyms AML Anti-money Laundering BO Beneficial Ownership CBS Central Bank of Seychelles CFT Combatting the Financing of Terrorism COVID-19 Coronavirus Disease 2019 CPF Country Partnership Framework DPF Development Policy Financing FA4JR Financial Assistance for Job Retention FIU Financial Intelligence Unit GDP Gross Domestic Product GoS Government of Seychelles HTA Health Travel Authorization ICR Implementation Completion and Results Report IMF International Monetary Fund LMO Liability Management Operation M&E Monitoring and evaluation MSME Micro, Small and Medium Enterprises NCCC National Climate Change Council PA Prior action PDO Program Development Objectives RI Results Indicators SCR Seychellois Rupee SWA Social Welfare Assistance URS Unemployment Relief Scheme Regional Vice President: Victoria Kwakwa Country Director: Idah Z. Pswarayi-Riddihough Regional Director: Asad Alam Practice Manager: Marco Antonio Hernandez Ore Task Team Leader(s): Sashana Whyte, Brenden Jongman ICR Main Contributor: Sati Achath The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Contents DATA SHEET .............................................................................................................................. 1 I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES ................................................. 5 II. ASSESSMENT OF KEY PROGRAM OUTCOMES .............................................................. 12 III. OTHER OUTCOMES AND IMPACTS ............................................................................... 23 IV. BANK PERFORMANCE .................................................................................................. 25 V. RISK TO SUSTAINABILITY OF DEVELOPMENT OUTCOMES ........................................... 26 VI. LESSONS AND NEXT PHASE ............................................................................................. 27 ANNEX 1. RESULTS FRAMEWORK ........................................................................................... 29 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION PROCESSES ...... 36 ANNEX 3. BORROWER, CO-FINANCIERS, AND OTHER DEVELOPMENT PARTNERS’/STAKEHOLDERS’ COMMENTS .............................................................................. 38 ANNEX 4. SUPPORTING DOCUMENTS .................................................................................... 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) . . DATA SHEET BASIC INFORMATION Product Information Project ID Program Name P174198 COVID-19 Crisis Response Emergency Development Policy Financing Country Financing Instrument Seychelles Development Policy Lending DPF Options Programmatic Regular Deferred Drawdown Option Catastrophic Deferred Drawdown Option No No No Crisis or Post Conflict Sub-National Lending Special Development Policy Lending Yes No No Organizations Borrower Implementing Agency Ministry of Finance, Trade, Investment and Economic Republic of Seychelles Planning, Ministry of Environment, Energy and Climate Change, Department of Health Program Development Objective (PDO) Program Development Objective (PDO) To support the Republic of Seychelles in its response and recovery from COVID-19 crisis by (1) enhancing response mechanisms in health, social protection and private sector; and (2) supporting sustainable post-crisis recovery through strengthened financial systems and climate resilience. Page 1 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) PROGRAM FINANCING DATA (USD) FINANCE_TBL Approved Amount Actual Disbursed World Bank Administered Financing 15,000,000 15,000,000 IBRD-91490 Total 15,000,000 15,000,000 KEY DATES Concept Review Decision Review Approval Effectiveness Original Closing Actual Closing 11-May-2020 01-Jun-2020 25-Jun-2020 01-Jul-2020 30-Jun-2021 30-Jun-2021 RATINGS SUMMARY Program Performance Overall Outcome Relevance of Prior Actions Achievement of Objectives (Efficacy) Moderately Satisfactory Highly Satisfactory Moderately Satisfactory Bank Performance Moderately Satisfactory RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) SECTORS AND THEMES Sectors Mitigation Co- Adaptation Co- Major Sector/Sector (%) benefits (%) benefits (%) SECTOR0_TBL Public Administration 33 2.72 13.28 Central Government (Central Agencies) 17 0 0 Other Public Administration 16 17 83 Page 2 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) SECTOR0_TBL Financial Sector 33 0.00 0.00 Banking Institutions 16 0 0 Capital Markets 17 0 0 SECTOR0_TBL Health 17 0.00 0.00 Health 17 0 0 SECTOR0_TBL Social Protection 17 0.00 0.00 Social Protection 17 0 0 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Finance 33 Financial Stability 17 Financial Sector Integrity 17 Financial Infrastructure and Access 33 Credit Infrastructure 17 MSME Finance 33 Social Development and Protection 33 Social Protection 33 Social Safety Nets 33 Human Development and Gender 100 Disease Control 100 Pandemic Response 100 Urban and Rural Development 33 Disaster Risk Management 33 Flood and Drought Risk Management 33 Environment and Natural Resource Management 17 Climate change 17 Mitigation 3 Adaptation 14 Renewable Natural Resources Asset Management 17 Coastal Zone Management 17 Page 3 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) ACCOUNTABILITY AND DECISION MAKING Role At Approval At ICR Regional Vice President: Hafez M. H. Ghanem Victoria Kwakwa Zviripayi Idah Pswarayi Country Director: Zviripayi Idah Pswarayi Riddihough Riddihough Director: Asad Alam Asad Alam Practice Manager: Mathew A. Verghis Marco Antonio Hernandez Ore Sashana Whyte, Brenden Task Team Leader(s): Sashana Whyte, Brenden Jongman Jongman . Page 4 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) I. PROGRAM CONTEXT AND DEVELOPMENT OBJECTIVES A. Context at Appraisal 1. This Implementation Completion and Results Report (ICR) presents the results of the COVID- 19 Crisis Response Emergency Development Policy Financing (DPF) for Seychelles. This loan (in the amount of US$15 million) was approved by the World Bank’s Board of Executive Directors on June 25, 2020; and disbursed upon effectiveness on July 1, 2020. The DPF provided emergency budget support to mitigate the economic impact of Coronavirus Disease 2019 (COVID-19) and protect the poor and vulnerable population. The operation was part of the World Bank’s COVID -19 support package that took place in tandem with the International Monetary Fund’s (IMF) Rapid Financing Instrument that disbursed US$31 million, helping to bolster foreign exchange reserves and close the external financing gap. The DPF supported the government’s efforts to mitigate the immediate social and economic fallout triggered by the COVID-19 pandemic and has put in place measures to facilitate a fast recovery and build buffers to future shocks. The operation also supported actions that provided financial relief to affected households and firms, structural reforms to improve the transparency and accountability of the financial system and policies to address climate change. These actions were aligned with the government’s announced emergency response measures as well as their broader reform program. 2. At appraisal, Seychelles’ economy was amid the pandemic, severely impacting the economy. Increased finances were needed to shore up the economy to meet the overwhelming health crisis, support vulnerable groups, and prevent economic collapse. To bridge the resulting financing gap, the government requested emergency support from the IMF, the World Bank and other partners. The DPF was therefore in response to the government’s urgent request and aimed to support the Republic of Seychelles in its response and recovery from the COVID-19 crisis by (1) enhancing response mechanisms in health, social protection and the private sector; and (2) supporting sustainable post- crisis recovery through strengthened financial systems and climate resilience. These development objectives were ultimately aimed at preventing a major reversal in Seychelles hard-won progress in shared prosperity and poverty reduction from the past decade. The policy measures implemented have aided in shielding households and businesses from the worst consequences of the economic downturn, helping to ease financial conditions. 3. The pandemic ended an otherwise successful growth trajectory in Seychelles. Gross domestic product (GDP) growth averaged 4.3 percent between 2009 and 2019, and in 2015 Seychelles became a high-income country, with GDP per capita of US$16,975 in 2019, up from US$11,130 in 2008. While real growth of GDP was 3.1 percent in 2019, the global outbreak drastically reduced economic activity in 2020. The tourism sector accounted for approximately 30 percent of GDP, making the country highly vulnerable to the current COVID-19 pandemic. International travel had been hit hard by the outbreak. The fall in tourism activities had a domino effect on other sectors, directly and indirectly. This affected other sectors such as transportation, arts and recreation, entertainment, wholesale and retail trade, and financial and insurance. Consequently, the economy contracted by 7.7 percent in 2020 compared to the pre-pandemic projected growth rate of 3.5 percent. Page 5 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) 4. The labor market in Seychelles before the pandemic was consistent with the strong growth performance of the last 10 years. In 2019, the unemployment rate was low at 2.4 percent, indicating a tight labor market. A surge in expatriate workers had met rising labor demand during that period. Expatriate workers accounted for 50 percent of employment in the formal sector and were employed in construction and tourism. Approximately 16 percent of the total labor force in Seychelles was employed in the informal sector. Informality was particularly high in agriculture and fisheries, as well as in manufacturing and construction. Employment in the private sector represented 67 percent of formal employment. Tourism accounted for 23.6 percent of formal sector employment. The shock triggered by the COVID-19 pandemic caused large-scale economic effects to those in the formal sector and the informal economy. 5. Before the pandemic hit, Seychelles had also made impressive strides in poverty reduction. Over the last decade, high economic growth in Seychelles had been accompanied by an elimination of extreme poverty. By international norms, Seychelles had eradicated absolute poverty (individuals living on an income of under US$1.90 per day). However, the distribution of income in Seychelles was highly unequal and the Gini coefficient was estimated at 0.46 compared with an average of 0.41 among upper middle-income countries. The majority of low-income workers were employed in accommodation and food service activities, health services, and business support activities. Consequently, vulnerable households linked to economic sectors affected by COVID-19 faced a substantially elevated risk of falling into poverty, at least in the short-run. 6. Tight monetary policy kept price levels stable. The inflation rate fell to 1.8 percent in December 2019 due to declining international fuel prices and a tight monetary policy stance. A tight monetary policy helped reduce inflation to 1.2 percent; and kept the economy from overheating in 2020. The nominal exchange rate had depreciated due to the impact of COVID-19, prompting the central bank to intervene in the foreign exchange market. The significant slowdown of tourist arrivals caused a decline in income in the tourism industry. Consequently, foreign exchange inflow declined, resulting in domestic currency depreciation. The sudden depreciation prompted the central bank to intervene in the foreign exchange market by selling US$10 million in April 2020 to stabilize the market (by meeting demand for foreign exchange that fell short due to a reduction in inflows). 7. The banking sector was well-capitalized and liquid before the crisis. Non-performing loans declined to 2.8 percent of total loans in September 2019 from 3.5 percent in December 2018. The deterioration in macroeconomic conditions due to COVID-19 required swift intervention by the Central Bank of Seychelles to prevent the crisis from destabilizing the financial sector. These measures included the creation of a credit facility to assist commercial banks with emergency relief measures and support businesses and individuals struggling with the financial impact of the pandemic. When the crisis hit, however, the government expected it would affect private sector liquidity, possibly leading to an increase in non-performing loans. 8. The economic shock in 2020 put pressure on external accounts. The external account was strongly dependent on tourism earnings and investment. The current account deficit, which reached 16.1 percent of GDP in 2019, had been driven by sizeable merchandise trade and income deficits that Page 6 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) were only partially offset by large services trade surpluses. With the impact of COVID-19 on tourism and exports, the current account deficit reached 21.9 percent of GDP in 2020. In addition, most of the expected foreign direct investment, which had been the major source of financing of the country’s current account deficits, had been postponed and only rebounded in 2021. The central bank’s gross international reserves declined from US$581 million by end-2019 (5.7 months of imports) to US$559 million by end-2020, equivalent to 4 .6 months of imports. 9. Fiscal policy was prudent, with sizeable primary budget surpluses, but the fiscal balance shifted into a deficit during the pandemic. At 2.6 percent, the primary surplus in 2019 marginally exceeded the targeted fiscal primary balance of 2.5 percent of GDP under a non-disbursing 3-year IMF Policy Coordination Instrument and was on target to reduce the debt to GDP ratio to 50 percent by 2021 or 2022. However, the contraction in tourism-related activities and underperforming dividends significantly negatively impacted revenue collection in 2020. In addition, expenditures increased drastically due to higher spending on health and the government’s COV ID-19 response package. This pushed the primary balance into a deficit of 14.7 percent of GDP in 2020. 10. Government revenue declined significantly in 2020 compared to pre-COVID-19 expectations. Total revenue (excluding grants) declined to 32.2 percent of GDP in 2020 from 35.3 percent in 2019. Before the crisis, the government planned to introduce measures such as: increase in environmental levy on motor vehicles; changes in the excise structure for alcoholic beverages; and introduce property tax. These measures would have increased revenue by approximately 1 percent of GDP. With the pandemic, tax revenue, which accounted for 80 percent of total revenue, declined by SCR 1.2 billion to 28.7 percent of GDP in 2020 (from 31.4 percent of GDP in 2019) due to the decline in tourism activities. 11. Public expenditure increased due to more spending associated with the COVID-19 response package. Government expenditure increased to 51.5 percent of GDP in 2020 compared with 40.2 percent in the pre-pandemic budget. The increase in expenditure was driven by measures implemented by the government to address the economic and social impact of COVID-19. These measures included: a guarantee of salaries for three months to workers in the private sector with a cap of SCR 30,000 per worker; an increase in the allocation for the Social Protection Agency; and an increase in spending in the Health Sector. The budget for capital expenditure increased slightly to account for expected depreciation of the foreign exchange rate, which affected the cost of projects, particularly those financed by loans. 12. The COVID-19 response package and the reduction in the tax base resulted in a fiscal financing gap. As a result of the stimulus package and lower economic activity, the budget balance reached a deficit of 18.4 percent of GDP in 2020 from the pre-COVID-19 estimate of 0.8 percent of GDP. Domestic financing played a significant part in supporting the govern ment’s response by helping to fill the financing gap. Domestic financing covered 78.2 percent of the financing gap. The Government of Seychelles (GoS) resorted to domestic financing (14.4 percent of GDP) including commercial banks (12.2 percent) and non-banks (2.2 percent) to finance the fiscal gap. Foreign financing, including through the operation (budget support), covered 2.9 percent of GDP. Page 7 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Table 1: Key Macroeconomic indicators 2019 2020 2020 2021 2021e 2022f 2023f 2024f (Pre- COVID) (COVID) Proj. Est. Proj. Proj. Proj. Real GDP growth, at constant market prices 3.1 3.3 -7.7 6.5 7.9 11.0 5.2 4.8 Private Consumption 5.9 3.5 -5.0 3.5 8.9 12.9 2.4 5.7 Government Consumption 0.8 4.7 11.0 -1.0 2.3 5.2 2.5 3.3 Gross Fixed Investment -1.7 4.7 -33.7 8.8 22.2 10.5 9.4 3.5 Exports, Good and Services 3.1 3.1 -35.7 3.8 12.3 17.9 17.5 16.9 Imports, Good and Services 2.0 4.1 -34.2 4.4 14.4 15.3 14.4 14.9 Real GDP growth, at constant factor prices 3.1 3.3 -7.7 6.5 7.9 11.0 5.2 4.8 Agriculture 2.2 1.1 -0.3 1.4 2.7 6.9 3.4 1.1 Industry 3.2 2.2 0.8 2.4 5.1 7.8 3.0 2.0 Services 3.1 3.4 -8.9 3.5 8.4 12.0 5.5 5.2 Inflation (Consumer Price Index) 1.8 2.1 1.2 3.1 9.8 4.1 3.3 1.5 Current Account Balance (% of GDP) -16.1 -17.6 -21.9 -25.8 -20.1 -22.4 -19.3 -17.4 Fiscal Balance (% of GDP) -0.8 0.1 -18.4 -4.9 -5.6 -3.8 -0.8 1.1 Debt (% of GDP) 58.0 57.2 88.7 80.0 76.2 73.3 67.0 61.3 External debt 27.8 27.4 38.6 44.4 38.5 33.5 28.8 22.5 Primary Balance (% of GDP) 2.6 2.5 -14.7 -1.8 -3.0 -1.4 1.7 3.0 International poverty rate ($2.15 in 2017 PPP) 0.5 0.9 0.7 0.8 0.6 0.6 0.5 0.4 Lower middle-income poverty rate ($3.65 in 2017 PPP) 1.2 2.3 2.2 2.0 1.4 1.3 1.2 1.0 Upper middle-income poverty rate ($6.85 in 2017 PPP) 6.5 6.1 8.4 5.3 7.4 7.2 6.4 5.7 Source: Government of Seychelles, World Bank and IMF staff estimates and projections 13. Due to the larger fiscal gap from shocks caused by the COVID-19 pandemic, Seychelles’ public debt rose beyond the high-risk benchmark (60 percent of GDP), increasing to 88.7 percent in 2020 from 58.0 percent in 2019. The COVID-19 crisis increased debt levels significantly in the short-term. However, debt stabilized again at sustainable levels in 2021 (76.2 percent of GDP) along with the strong economic recovery, exchange rate appreciation, deficit reduction, and a successful liability management operation. The exchange rate appreciated back to its pre-pandemic SCR to US dollar rate. 14. The macroeconomic instability caused by the pandemic increased the costs for the government to finance its budget. To bridge the financing gap and manage the widening external imbalance due to lower tourist receipts (which accounts for about 50 percent of exports of services and 35 percent of exports of goods and services) and the deprecation of the rupee (30 percent depreciation in 2020), the GoS requested support from the World Bank to close the emergent financing gaps (see table 2). The financing provided by the World Bank helped to prevent the country from slipping into a macroeconomic and social crisis, and to address the corresponding loss of livelihood and subsequent increase in poverty. Page 8 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Table 2: Balance of Payments Financing Needs and Sources, 2019-2023 2019 2020 2020 2021 2022 2023 (Pre- Prel. COVID) (COVID) Proj. Proj. Proj. Financing Requirements Current Account Deficits -275.4 -305.6 -366.1 -357.8 -374.0 -381.5 Balance on Goods and Services -179.3 -192.9 -274.4 -265.5 -262.3 -235.9 Balance on Primary Income -89.7 -95.5 -94.1 -97.1 -113.4 -140.2 Balance on Secondary Income -6.5 -17.2 2.4 4.7 1.7 -5.5 Amortization -32.0 -39.0 -38.7 -42.8 -51.5 -50.9 Financing Capital Account 48.5 59.3 35.2 63.9 46.2 45.3 Financial Account 266.5 256.6 -0.4 329.6 371.1 407.5 Direct Investment, net 243.1 260.6 80.4 216 259.9 276.1 Portfolio Investment, net -59.9 -34.0 -80.1 -39.7 -29.9 -20.1 Other Investment, net 83.2 30.0 -0.7 150.2 141.2 151.5 Overall Balance 39.5 10.2 -331.6 35.6 43.2 71.2 Change in Net International Reserves -39.5 -10.2 242 -35.6 -43.2 -71.2 Financing Gap 0.0 0.0 125.7 0.0 0.0 0.0 (in percent of GDP) 10.0 Additional Financing Sources IMF 31.2 World Bank 30.0 African Development Bank 9.0 Unidentified Budget Support 55.5 Nominal GDP (US$ Millions) 1651.2 1710.0 1252.2 1385.9 1551.4 1743.0 Source: World Bank, IMF and GoS (April 2020). 15. Although the short-term impact of COVID-19 on the economy was severe, Seychelles’ economic outlook turned positive in March 2021. As the pandemic recedes, the country is expected to continue the recovery path it began in 2021. Economic growth grew at 7.9 percent in 2021, due primarily to a recovery in the tourism sector. Tourist arrivals rebounded in 2021 following the reopening of borders in late March 2021, and the emergence of new tourist markets (Russia, United Arab Emirates and Israel). With the fishery sector selling about 50 percent of the domestic artisanal catches to resorts and restaurants, the fishery sector grew by 2.5 percent in 2021 as the tourism sector recovered. The ongoing rebound in tourism and activity will lead to growth peaking at 11.0 percent in 2022 before eventually moderating to about 5.0 percent in the medium-term. Tourist arrivals and investments in large resorts will continue to be the key growth driver over in the medium-term, Page 9 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) complemented by growth in private consumption. Higher food and fuel prices are expected to raise inflation in 2023. Thereafter, price pressures should moderate, reflecting strong growth prospects and a stable rupee backed by recovering tourist arrivals. The current account deficit is projected to peak in 2022 (due to higher import prices of fuel and wheat), then narrow over the medium term as tourism inflows rebound and foreign direct investment inflows increase. Tourist earnings are expected to reach 2019 levels by 2024. Fiscal consolidation is the key priority for a sustained downward debt trend, with an expected reduction in the deficit to 3.8 percent by end-2022. 16. Seychelles’ public debt is expected to continue on a sustainable downward path, given proactive debt management and fiscal consolidation. Seychelles’ public debt situation significantly improved in 2021, mainly due to the sharp rebound from the severe economic recession in 2020. The public debt level decreased by around 12.3 percentage points of GDP to 76.2 percent of GDP in 2021. Public debt is expected to decrease at a slower pace, by around 2.9 percent of GDP in 2022 owing to the shock caused by the war in Ukraine. Assuming the authorities will continue fiscal consolidation with a view to achieving a primary surplus of 3.4 percent of GDP in 2027 and the economy will suffer no further major negative shocks, public debt is expected to fall below 70 percent of GDP in 2023 and to decline steadily over the medium term. As a small island economy, Seychelles remains vulnerable to macroeconomic shocks, particularly exchange rate shocks. Continued progress in reducing the public debt stock, relying on more concessional financing, and extending the maturities of domestic public debt are therefore warranted. Seychelles’ DSA therefore assesses its debt to be sustainable, albeit with risks. Program Development Objective (PDO) and Key Indicators (as approved) 17. The PDO was to support the government in its response and recovery from the COVID-19 crisis by: (i) enhancing response mechanisms in health, social protection and the private sector; and (ii) supporting sustainable post-crisis recovery through strengthened financial systems and climate resilience. Original Policy Areas/Pillars Supported by the Program (as approved) 18. The program supported government’s response to COVID -19 under two core Policy Areas: (i) Policy Area 1: Protecting Lives and Livelihood: The program aimed to: (i) support the adoption of Seychelles Response Plan to COVID-19 by laying out the pandemic strategy; costing the country’s emergency response to the first wave of COVID -19; and laying a foundation for the development of mid- and long-term health-sector response policies including the COVID-19 testing strategy; (ii) support the government in mitigating the risk of high unemployment, mostly in the tourism industry, by providing coverage to workers facing hardships, through increasing the budgets for the Social Welfare Assistance (SWA), and the Unemployment Relief Scheme (URS); (iii) establish a direct financial support mechanism to companies and workers through salary guarantees and postponement of tax payments, including Corporate Social Responsibility Tax, Tourism Marketing Tax, Business Tax and taxes Page 10 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) on Non-Monetary Benefits Income; and (iv) support amendment of the Central Bank of Seychelles’ (CBS) Act of 2004 to allow CBS, in the event of a force majeure, to make loans, advances and discounts to financial institutions for periods up to 36 months (from 18 months); and to purchase Treasury Bills (T-Bills) and other securities guaranteed by the government. (ii) Policy Area 2: Protecting the Future. The program focused on: (i) supporting the implementation of laws related to Anti-Money Laundering (AML)/Combatting the Financing of Terrorism (CFT), and Beneficial Ownership (BO) to promote transparency and better align the country’s legal framework with international standards; and (ii) facilitati ng an effective response to the local, regional and global challenges and opportunities presented by climate change. B. Significant Changes During Implementation 19. No changes were introduced in the Program’s design, scope, or implementation arrangements. However, the country context of the program —the COVID-19 health crisis and the general election which resulted in a change in government and some institutional changes, exerted pressure on the Government to deliver on the target outcomes for this operation. Although COVID-19 was obvious at the design phase of the operation, the pandemic persisted well beyond mid-2020 and lasted until the first half of 2021 affecting the quality of dialogue with government. As a result, some response measures were extended for as long as the pandemic persisted. In addition, following the general elections of October 2020, the new government brought changes in leadership and technical teams in some key implementing agencies, including the main counterpart, Ministry of Finance, National Planning and Trade (MFNPT). Some activities (such as the implementation of the climate change policy) could not be delivered due a shift in the government’s short-term priority to stabilize the economy. Revised Program Development Objectives (PDOs) 20. None Revised Policy Areas/Pillars supported by the Program 21. None Other Changes 22. None Page 11 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) II. ASSESSMENT OF KEY PROGRAM OUTCOMES Table 3: Prior Actions and Results Indicators Prior actions Results Prior Actions Indicator Name Baseline Target Pillar A--- Protecting Lives and Livelihood Prior Action #1. The Borrower, through its Cabinet of Ministers, has approved the Percentage of international Seychelles Response Plan for COVID-19 as laid out in Cabinet Memorandum arrivals having been tested for 0 95 C20/MEM/066, which defines the strategy for the immediate response to the first wave of COVID-19 in accordance with (December (December COVID-19 and lays the foundation for subsequent reopening and testing strategies, and the Department of Health 2019) 2020) took adequate measures to prevent imported cases. protocol Prior Action #2. The Borrower through its National Assembly and Cabinet of Ministers Percentage increase in approved measures to support vulnerable households affected by COVID-19 through: households receiving social 0 20 (June (i) increase in allocation to social protection protection or social welfare (December 2020) (ii) increase in the one-off assistance paid under social welfare assistance. support to alleviate COVID-19 2019) impacts Number of workers in the 0 private sector having benefited 25,000 (December Prior Action #3. The Borrower through its National Assembly approved: (i) guarantee from salary guarantee with the (December 2019) salaries to all employees in companies affected by the COVID-19 pandemic for three objective to reduce job and 2020) months and (ii) postponement of taxes until September 2020 (Corporate Social income losses. Responsibility, Tourism Marketing Tax, Business Tax and taxes on Non-Monetary Benefits 90 (August Income). 0 2020) Percentage of firms benefiting (December from postponement of taxes to 2019) mitigate the impact of COVD-19 Page 12 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Prior actions Results Percentage uptake of the credit line facility under the Private Prior Action #4. The Borrower through its Cabinet of Ministers approved the Central Bank 0 Sector Relief Scheme to help 80 (June Act, 2020 (Amendment) and the Financial Institutions Act (Amendment), 2020. (December micro, small and medium 2021) 2019) enterprises (MSMEs) impacted by COVID-19 Pillar B--- Protecting the Future Prior Action #5. The Borrower through is National Assembly approved new AML/CFT Act Percentage of legal entities that 0 2020 and Beneficial Ownership (BO) Act 2020 to promote transparency and better align have submitted verifiable 80 (June (December the country’s legal framework with international standards. ownership information on the 2021) 2019) database held by FIU Number of government sectors guided on the mainstreaming of Prior Action #6. The Borrower through is Cabinet of Ministers approved the new Climate climate change in sectoral 0 10 (June Change Policy to reduce Seychelles’ vulnerability to climate change impacts. policies through the new (December 2021) National Climate Change Council 2019) (NCCC) chaired by the Vice President. Page 13 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) A. Relevance of Prior Actions Rating: Highly Satisfactory 23. Overall, the framing of the PDO was directly relevant and appropriate to address the immediate and pressing needs of the country as it grappled with the effects of the pandemic. The DPF was designed as standalone operation within a difficult environment characterized by lockdowns, mobility restrictions, and limited timeframe due to the COVID-19 pandemic. The design was influenced by World Bank guidance on crisis situations that notes that there may not be sufficient time or country capacity to address all design considerations related to developing a strong policy program, examining distributional effects, and engaging in extensive policy dialogue with the government 1. The prior actions in turn were directly aligned to the PDO as well as the World Bank Group2 response to COVID- 19, which sets out the World Bank Group approach to providing support exceptional in speed, scale and selectivity to countries as they implement policies to address the impact of the COVID-19 crisis. The paper recommended World Bank support focuses on helping countries address the crisis and transition to recovery through a combination of saving lives threatened by the pandemic; protecting the poor and vulnerable; securing foundations of a robust recovery; and strengthening policies and institutions for resilience based on transparent, sustainable debt and investments. All the prior actions (PAs) were informed by the rich analytical work completed by the World Bank, to ensure that the actions would contribute to the direct achievement of the PDO, given the short timeframe, and despite the many challenges from the pandemic 3. Further, the PAs were chosen to be closely aligned with the Government Program (outlined in the national development strategy) and the World Bank’s engagement in Seychelles. 24. The first pillar of the PDO was designed to support the capacity of the health care system, provide income to poor and vulnerable households, protect jobs, and provide financial assistance to businesses negatively affected by the COVID-19 pandemic through PA#1, PA#2, PA# 3 and PA #4. At the start of the pandemic Seychelles did not have adequate formal procedures and processes to deal with a health crisis. PA# 1 focused on setting-up proper mechanisms to prevent and manage potential new outbreaks through the adoption of the Seychelles Response Plan to COVID-19 which laid out the strategy and costing of the country’s emergency response to the first wave of COVI D-19 and laid a foundation for the development of mid- and long-term health-sector response strategies. PA #2 and PA #3 supported households in the formal and informal sectors by providing support through increased funding to social programs and guaranteed salaries to private sector and non-governmental organizations’ employees. By the end of the operation, PA #2 increased the number of beneficiaries in the social safety nets program to 19,478 (55 percent of the recipients of beneficiaries were women). 1 See OPS5.02-POL.105, 2017- 37-38. 2 World Bank Group (2020). Saving Lives, Scaling-up Impact and Getting Back on Track: World Bank Group COVID-19 Crisis Response: Approach Paper. Washington, DC: World Bank Group 3The World Bank’s COVID-19 Notes Finance Series (World Bank, March 2020) recommended that short-term support to keep firms viable should include grants, guarantees, concessional lending, trade finance, increased bank lending, factoring, and tax credits. In addition, the note indicated that policy response could involve temporary suspension, reprofiling or even cancellation of a range of financial obligations, such as taxes, debt repayments, and rental or utility payment. Page 14 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Through PA #3 the government disbursed a total of SCR 1.26 billion (US$52 million equivalent) in assistance through the Financial Assistance for Job Retention (FA4JR) scheme. PA #4 amended legislation to implement the private sector relief scheme to maintain liquidity and access to finance for micro, small and medium enterprises (MSMEs), through this PA, SCR 145.7 million was disbursed to MSMEs. 25. The second pillar of the PDO aimed to build longer-term resilience to future shocks by strengthening financial systems and climate resilience. Through PA #5 the government of Seychelles passed the AML/CFT and BO laws which aligned the country’s legal frame work with international standards by introducing measures that addressed threats to the integrity of the financial system as well as reputational risks and help counter other threats, such as corruption and tax crimes. PA #6 supported the Cabinet of Ministers approval of the first national Climate Change Policy to facilitate a coordinated, coherent, proactive, and effective response to the local, regional, and global challenges and opportunities presented by Climate Change. 26. Prior Action #1: Approval of the COVID-19 Response Plan laid out the government’s policy on emergency response to the pandemic along with COVID-19 testing strategy to prevent new cases particularly from visitors to the island. This prior action was critical in facilitating the quick reopening of the country which saw tourist arrivals increase faster than expected and economic growth rebound in 2021. The plan was prepared by the Department of Health in collaboration with the World Health Organization and other stakeholders such as the Integrated Disease Surveillance and Response committee. Given the potential impact of imported cases for Seychelles’ epidemic trajectory, the Response Plan, in combination with action taken to prevent the importation of new cases by closing the borders, was effective in minimizing the health impact of COVID-19 in Seychelles. The plan was critical to the government’s overall approach to contai n the COVID-19 and to reopen the economy. 27. Prior Action #2: Approval of increased funding to social protection; and SWA benefits to assist vulnerable households affected by the pandemic. In 2020 at the onset of the pandemic, coverage of the main poverty targeted program in the country, the social welfare assistance program, was low and payments were lower as compared to other programs (such as the retirement pension program which covered a third of the population). The poverty targeted SWA benefitted only 6 percent of the population and covered only 11.5 percent of the poor, demonstrating issues with targeting and the need for the government to intervene during the crisis. Given the heavy concentration of employment around the tourism industry, which was temporarily shut down during COVID-19 and the low coverage of the SWA program, the government needed to implement policies to mitigate the impact on vulnerable households. This prior action provided coverage to low-income households, particularly those in the informal sector who were facing hardships due to the increased vulnerability caused by COVID-19. Formal workers were covered by another scheme discussed below. 28. Prior Action #3: Approval of guaranteed salaries to private sector employees affected by the pandemic (through the FA4JR); and postponement of taxes. This prior action was critical as it supported the government’s management of the adverse economic impact of the pandemic . As the country went into a nation-wide lockdown, cutting off all air and sea connections with the rest of the Page 15 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) world, the employees in the private sector faced the highest risk of loss of income. The COVID-19 related impacts on international tourist arrivals and closure of local economic activities affected most private sector operators and most of the Seychelles work force. The FA4JR and the postponement of taxes aimed to provide temporary relief to the private sector and allowed businesses to stay viable and prevent redundancies. 29. Prior Action #4: Amendment of CBS Act, 2020; and the Financial Institutions Act, 2020. This prior action aimed to mitigate the liquidity challenges faced by MSMEs due to the COVID-19 pandemic. Approval of these two Acts by the Cabinet of Ministers was needed in order to provide extra liquidity to commercial banks and maintain the sustainability of the financial sector during the COVID-19 crisis. The CBS Act, 2004 was amended to permit the CBS, in the event of a force majeure, to make loans, advances and rediscounts to banks and other financial institutions in Seychelles for periods not exceeding three years (this was increased from 18 months that was in the original law) and to purchase or acquire treasury bills and other securities guaranteed by the government. The amendments to the Financial Institutions Act include changes to the definition of financial institutions to include the Development Bank of Seychelles and the Seychelles Credit Union, to enable these institutions along with seven commercials banks to administer the private sector relief scheme to MSME as well as large enterprises. The relief scheme was meant to assist eligible MSMEs facing financial constraints resulting from the COVID-19 pandemic, in meeting their critical expenditures. 30. Prior Action #5: Approval of AML/CFT Act, 2020 and BO Act, 2020. Seychelles’ offshore financial sector and the broader financial industry faced challenges with pressures to comply with the global transparency standards and AML regulations. Approval of the AML/CFT and the BO Acts were critical for the establishment of a framework to enforce increased transparency in its banking system with the aim of attracting investment. In addition, these laws provided the legal framework for the creation of a beneficial ownership registry which is fundamental for the detection and investigation of various crimes, including corruption, tracing, and confiscation of crime proceeds, accurate reporting of assets under the asset declaration regime and reduction of corruption vulnerabilities. 31. Prior Action #6: Approval of the new Climate Change Policy to reduce Seychelles’ vulnerability to climate change impacts. Seychelles is among the most vulnerable and greatly affected by the negative impacts of climate change. The country faces frequent coastal flooding and erosion, extreme rainfall and drought events. Climate change is expected to make these hazards more frequent and more intense. Specifically, sea-level rise and climate change induced changes in rainfall patterns may cause increased levels of damage to housing, infrastructure and agriculture. The climate change policy provides guidance to stakeholders in addressing climate change and established a clear framework (which was lacking) to mainstream climate change into sectoral planning, including the coordination and implementation of cross-sectoral goals for adaptation and mitigation. Page 16 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) B. Achievement of Objectives (Efficacy) Rating: Moderately Satisfactory. 32. Seychelles achieved the qualitative objectives of this operation. However, some of the prior actions overlapped (FA4JR, tax postponement and liquidity to MSMEs) and therefore reduced the impact/outcome and therefore the quantitative achievement of some of the results indicators. For example, the FA4JR scheme which guaranteed the salary of private sector employees (for 3 months and later extended to a year) allowed businesses to remain viable and therefore eliminated the need for tax postponement and borrowing from the private sector relief scheme. In addition, some measures supported by the DPF (FA4JR) were administratively intensive with significant requirements which may have been too onerous for small businesses. The fact that Seychelles fell short of fulfilling five out of seven result indicators does not indicate limited development impact but rather reflects some deficiencies in the choice of these indicators, as explained further below. Despite these issues with some of the result indicators, the implementation of the programs associated with the prior actions by GoS was for the most part satisfactory and impactful in setting foundations for a robust and inclusive recovery following an unprecedented crisis amid significant uncertainty. It is hoped that lessons from the experience of this operation will help formulate appropriate result indicators in future operations. 33. Measurability of results indicators (RI): The indicators were feasible, but measurability was a challenge. While the definition, calculation and data sources were reasonably clear for the RIs in most cases, there were some exceptions. This caused uncertainty on how to measure the indicators at ICR. For example, the base for the results indicator on the postponement of taxes was not clearly defined and the postponement for two of the tax categories (corporate social responsibility and tourism marketing tax) was not implemented. In addition, the FA4JR may have helped business’ cashflow to the extent that they did not need to use the tax deferrals for business tax. Thus, given the lack of data, the uncertainty caused by the pandemic and the competing demands on a capacity-constrained government, in hindsight, the targets might have been too ambitious. This finding speaks to the need to redouble efforts to improve the monitoring and evaluation (M&E) culture in the relevant line ministries and the Ministry of the Finance, which oversees their performance. Despite these issues, the operation successfully achieved its objectives in extraordinarily challenging conditions. Specifically, PAs under the first pillar helped to develop a response plan to contain the spread of COVID-19 and prepare the country for the reactivation of economic activities, while supporting the most vulnerable households, and providing immediate liquidity needs to businesses and the financial sector to reduce employment and output losses. PAs under the second pillar allowed the government to build back better by addressing issues that would affect the countries medium to long-term development objectives, notably by improving transparency in the financial sector and creating beneficial ownership registry and approving the climate change policy that establishes a clear framework (which was lacking) to mainstream climate change into sectoral planning. 34. Appropriateness of targets: The targets of RIs were determined in close collaboration with the government based on the assessment of the expected impact of the pandemic on areas covered by Page 17 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) the operation and the feasibility of the targets to be achieved by the end of the operation. Most targets focused on appropriate results areas, but some of them suffered from issues in their precise formulation. The amount of anticipated financial assistance seemed reasonable at appraisal. For example, the provision of the tax deferment and the private sector relief scheme were created after consultation with the private sector and reflected an agreed strategy between the GoS and the financial sector in particular, the Central Bank of Seychelles and the Seychelles Bankers Association. In addition, the COVID-19 emergency operation was implemented at a time of great uncertainty both due to the pandemic and to the political environment in the run-up to national elections. Both could have delayed the timelines for achieving expected results, due to disruption to economic activity and in particular, government business - which caused lags in the government’s implementation capacity. Table 3. Results Indicators and actual achievements Assigning Actual achievement ratings Indicator Name Baseline Target (June for each result 2021) indicator Policy Area 1: Protecting Lives and Livelihood (i) Percentage of international arrivals having been Target exceeded tested for COVID-19 in accordance with the 0% 95% 100% (105%) Department of Health protocol. (ii) Percentage increase in households receiving Partially met (57%) social protection or social welfare support to 0% 20% 11.30% alleviate COVID-19 impacts. (iii) Number of workers in the private sector having benefited from salary guarantee with the 0 25,000 11, 416 Partially met (45.6%) objective to reduce job and income losses (iv) Percentage of firms benefiting from 0% 90% 36.9% Partially met (41%) postponement of taxes (v) Percentage uptake of the credit line facility under the scheme to help MSMEs impacted by 0% 80% 22.40% Partially met (28%) COVID-19 Policy Area 2: Protecting the Future (vi) Percentage of legal entities that have submitted Target exceeded verifiable ownership information on the database 0% 80% 90.00% (113%) held by FIU (vii) Number of government sectors guided on the mainstreaming of climate change in sectoral 0 10 3 Partially met (30%) policies through NCCC Page 18 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Result Indicator #1: Percentage of international arrivals having been tested for COVID-19 in accordance with the Department of Health protocol 35. Prior action #1 focused on ensuring that international arrivals were tested for COVID-19 in accordance with the Department of Health protocol. The Seychelles Response Plan to COVID-19 included strong testing guidelines to ensure that all new arrivals in Seychelles are properly screened and tested. The guidelines mandated a negative test 48 hours or less before entering the territory for all passengers. In addition, all visitors were required to have a valid Health Travel Authorization (HTA) for entry into Seychelles. From June 1, 2020, the Seychelles international airport resumed operations only for private and charter flights carrying tourists with a negative COVID-19 test results taken within 48 hours from the time of boarding. Additionally, travelers were required to provide proof of their accommodation at an approved establishment and were obliged to stay in their hotel/guesthouse for the first 14 days of their stay. In January 2021, the Ministry of Health launched an ambitious plan to vaccinate 70 percent of the population by the end of March 2021. It is worth noting that, Seychelles at the time had one of the world’s highest vaccination rates - close to the target of 70 percent. 36. This indicator exceeded its target. 100 percent of international arrivals produced a negative COVID-19 test before entering Seychelles, against 95 percent targeted. This was accomplished through the launch of the government’s HTA requirement for entry into Seychelles. The HTA was done through an online portal4. Pre-travel COVID-19 testing requirements were later eased for travelers who are fully vaccinated. Results Indicator #2: Percentage increase in households receiving social protection or social welfare support to alleviate COVID-19 impacts 37. Prior Action #2: measured by the percentage increase in households receiving social protection or social welfare support to alleviate COVID-19 impacts was partially met. The government increased the budget for SWA and the URS to provide coverage for informal workers who faced hardships. While SWA was increased from an originally budgeted SCR 47.8 million to SCR 77.8 million (62 percent increase), the URS received double its previous allocation of SCR 10 million to cover the increased potential demand from those who faced needs. This objective was partially met as there was only 11.3 percent increase in households receiving social welfare support (as at August 2020), against 20 percent targeted. However, preliminary data indicates that between May 2020 and April 2021, the number of beneficiaries of the SWA increased from 2,400 to 3,4225 (42 percent increase). The target would have been met if the date for the target had covered the duration of the DPO. As a result, in hindsight there was an issue in choosing the date for the achievement of the results indicator rather than the indicator itself. This was influenced by the uncertain environment (pandemic) which made it difficult to correctly estimate the length of the pandemic and how many households would need assistance to mitigate the impact of the pandemic. 4 https://seychelles.govtas.com/ 5 Data received from the Strengthening Quality of the Social Protection System (P168993) ISR – August 2022. Page 19 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Result Indicator #3: Number of workers in the private sector having benefited from salary guarantee to reduce job and income losses. 38. Prior Action #3 focused on providing direct financial support to companies and workers through the guarantee of salaries and postponement of the payment of taxes (Corporate Social Responsibility, Tourism Marketing Tax, Business Tax and taxes on Non-Monetary Benefits Income). These policy measures were approved in the supplemental budget as part of the GoS COVID-19 response package. The FA4JR was intended to last from April to June 2020. However, the scheme was extended to December 2020 and later to March 2021 given the ongoing impact of the pandemic (as a result the RI covered the period up to March 2021, rather than December 2020 as was in the PAD). These results were measured by (i) the number of workers in the private sector having benefited from salary guarantee with the objective to reduce job and income losses, and (ii) the number of firms benefiting from the postponement of taxes. The salary guarantee scheme provided assistance to national and foreign workers in the private sector with an individual ceiling of SCR 30,000, with an initial total budget allocation for the scheme of SCR 1,090,531,200. The target for this prior action was set at 25,000 workers (67 percent of the estimated private sector workforce in 2019) benefiting from a salary guarantee and increase in the percentage of small and medium enterprises benefiting from postponement of taxes to mitigate the impact of COVID-19 to 90 percent. 39. This results indicator was partially met, in part, due to the revision of the eligibility criteria. 11, 416 persons benefited from the guarantee of salaries with a total of SCR 1.26 billion (US$52 million equivalent) disbursed, mostly to applicants qualifying under Form 1 (for employees’ salaries on a business payroll), for which SCR 88.2 million was disbursed as payroll support to 1,068 businesses, covering 8,610 Seychellois employees. The funds were disbursed for accommodation and food service- related activities, hotels, guest houses and restaurants. Similarly, under Form 2 (for self-employed individuals), 2,806 business owners benefited, mostly from the tourism industry. The lower-than- expected uptake in the FA4JR is due to (i) a revision to the eligibility criteria in July 2020 such that only Seychellois and permanent resident employees were to be covered, and accordingly, businesses were required to submit a copy of a payroll excluding expatriate workers (predominately working in tourism related businesses); (ii) some applicants did not submit supporting documents and were therefore denied assistance; and (iii) the creation of a restricted list in June 2020 which stipulated that all businesses except those in the tourism industry operating on the main island (Mahe) had to justify their need for assistance6. The revision in the eligibility criteria as well as the restricted list were done to ensure that only businesses that were severely impacted by the pandemic received funds and to contain the cost of this intervention on the budget (once it was clear that this measure would last for more than the three months it was initially intended for), given the longevity of the crisis. 6This requirement discouraged some business from applying to the scheme. Prior to this change all businesses that were approved in April 2020 and/May 2020 were automatically approved for June 2020. Page 20 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Result Indicator #4: Percentage of firms benefiting from postponement of taxes to mitigate the impact of COVD-19. 40. Businesses that faced financial difficulty to meet the deadline to file their 2019 taxes had the opportunity to request deferred payment for Business Tax, Corporate Social Responsibility Tax, Tourism Marketing Tax and Non-Monetary Benefits Tax. This measure was implemented from April 2020 to September 2020, around 36.9 percent of firms benefited from this initiative against 90 percent targeted. Although this results indicator was not met, this does not imply that the prior action was a failure. This is due to the context in which this indicator was designed, that is, to alleviate the impact of the pandemic. The deferment scheme for Corporate Social Responsibility and Tourism Marketing taxes was not implemented due to in part to the benefits of the FA4JR scheme which helped businesses remain viable, the rebound in tourism after strict restrictions were lifted in June 2020, and due to positive performance by telecommunication companies and banks. For business tax, requests received were approved on a case-by-case basis, except for tourism-related businesses (12 percent of total business taxpayers) which were automatically deferred up to September 2020. Most companies opted to pay their business taxes rather than apply for the deferment due to strong 2019 returns. Result Indicator #5: Percentage uptake of the credit line facility under the Private Sector Relief Scheme to help MSMEs impacted by COVID-19. 41. This result indicator was partially met as the uptake of the facility was only 29 percent, against 80 percent targeted. Only 459 applicants applied to the scheme, of which 304 were approved for the amount of SCR 145.7 million representing 29.14 percent of the SCR 500 million Facility. This is considered a low usage of the facility and can be attributed to several factors including: (i) non- availability of collateral from the businesses; (ii) strict credit and business viability assessments by some participating institutions resulting in rejected applications; (iii) applications withdrawn due to uptick in economic activity; and (iv) ineligibility of some businesses to access the scheme. There was a gradual increase in the applications to the scheme. However, there was a notable increase in applications after the FA4JR scheme was terminated (in March 2021), implying that MSMEs were utilizing the FA4JR scheme rather than the private sector relief scheme. In addition, on reflection, perhaps a more appropriate measure of the efficacy of this prior action would have been the percentage of applicants that were approved which may have been less affected by the utilization of the other measures implemented by the government. Result Indicator #6: Percentage of legal entities that have submitted verifiable ownership information on the database held by Financial Intelligence Unit (FIU). 42. Prior action #5 is measured by the percentage of legal entities having submitted verifiable ownership information on the database held by the FIU. This indicator exceeded its target, that is, 90 percent of legal entities had submitted verifiable ownership on the database, against 80 percent targeted. The international standards, set by the Financial Action Task Force and the Organization for Economic Cooperation and Development require jurisdictions to maintain BO information which is made available upon request to competent authorities for the enforcement of their relevant legislations to fight financial crimes. Page 21 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Result Indicator #7: Number of government sectors guided on the mainstreaming of climate change in sectoral policies through NCCC. 43. Prior action # 6 is measured by the number of government sectors guided on mainstreaming climate change in sectoral policies through new NCCC. In May 2020, the Seychelles Cabinet of Ministers approved Seychelles’ National Climate Change Policy to facilitate a n effective response to the local, regional and global challenges presented by climate change. While the policy was in place and the government had stated its commitment to addressing climate change, the country’s limited capacity and track record for managing environmental risks associated with development initiatives and overseeing and ensuring environmental compliance monitoring remains limited. This objective was partially met as only three government sectors were guided against 10 targeted. The low implementation can be attributed to capacity constraints in the ministries and departments and the government’s short-term priority focused on stabilizing the economy. Nonetheless the government remains committed to tackling climate change. This is illustrated by the country’s recent commitment in the National Determined Contribution submitted in July 2021 to “continue integrating climate change considerations into plans and strategies across all key sectors by 2030” . C. Overall Outcome Rating and Justification Rating: Moderately Satisfactory. 44. With the prior actions highly satisfactory, and efficacy moderately satisfactory, the overall outcome is rated as moderately satisfactory. This assessment accounts for the fact that results on the ground from the operation were largely satisfactory and the moderately satisfactory rating for efficacy reflects primarily only deficiencies in the choice of result indicators. The COVID-19 Emergency DPF supported several initiatives which had a profound impact on the Seychellois economy during the crisis. Without actions under this DPF, the economic recovery would have likely been significantly slower and less equitable. In addition, the DPF addressed two areas of reform that were identified as high-priority areas in the Country Partnership Framework (CPF) in which institutional frameworks, legislations, and polices needed to be established to lay the foundation for sustainable and inclusive growth. The relevance of the actions was highly satisfactory as the series addressed issues that were critical to navigate the economy through the uncertainty of the COVID-19 pandemic and at the same time addressed key bottlenecks for long-term inclusive and resilient growth in Seychelles. Reforms in climate change mitigation for example, although slow to implement, are part of an ongoing dialogue with the government of Seychelles that could substantially improve how climate change is addressed/incorporated by stakeholders. Improvements to monitoring indicators with more attention to the definition and traceability of indicators is needed, and will be a key area of dialogue between the World Bank and the GoS going forward. Page 22 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) III. OTHER OUTCOMES AND IMPACTS A. Poverty, Gender and Social Impacts 45. The PAs of this operation are expected to have significantly contributed to mitigating the impacts of the pandemic. More specifically, the program provided timely relief to the affected population by increasing funding to the social protection agency; guaranteed salary to employees in the private sector to ensure income for poor households; and supported poverty reduction indirectly by creating a proper regulatory environment for the government to create a credit facility which provided liquidity to the private sector. Policy actions supported by the program benefitted the poorest population and mitigated some of the negative impacts on welfare. Estimates are that poverty increased from 6.5 percent in 2019 to 8.4 percent in 2020 before declining to 7.4 percent in 2021. Poverty is projected to decline further to 7.2 percent in 2022. Containment measures are estimated to have reduced GDP in total by 10 percent between 2020 and 2021. The reforms supported by this program helped mitigate the potential effects on the population. It also has helped build buffers against future shocks indirectly affecting poverty through strengthening Seychelles’ Climat e Change Policy to help protect the fishing industry. This is an important effect given that the fishing industry is critical to food security in Seychelles. Strengthening resilience of this industry is expected to contribute to poverty reduction. Gender 46. The program did not specifically target women, or included gender focused PDO indicators, nevertheless, more women were registered as compared to men and received financial assistance through social welfare schemes as shown below: Table 4: Beneficiaries by Gender Activities Male Female Both Sexes Beneficiaries of social safety net programs 8,772 10,706 19,478 Number of SWA beneficiaries during emergency period 65 946 1,011 Unemployment Rate 3.2% 2.8% 3.0% Informal employment rate 23.1% 8% 15.3% Formal employment (% of total formal employment) 44 56 100 Informal employment (%of total informal employment) 73 27 100 Labor Force Participation Rate 68.4 65.1 66.7 Reasons for being absent from work (% of total) Quarantine 0 1.86 1.18 Workplace closed because of COVID-19 pandemic 23 25.6 24.6 Other 77 72.54 74.22 Percentage absent from work receiving financial assistance Yes (Received government assistance) 68.2 87.4 80.8 No (Did not receive government assistance) 31.8 12.7 19.2 Page 23 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) COVID-19 Assistance Financial Assistance for Job Retention (% of total) 100 61 27.8 Agency for Social Protection for COVID-19 (% of total) 0 39 72.2 100 100 100 Social Impact 47. As a result of the program, it is expected that necessary health and emergency services needed for an effective response to health outbreaks and pandemics have been strengthened. The COVID-19 response plan helped to address a lot of the shortcomings in the GoS response in dealing with health crises. In particular, the limited capacity and weak institutional capabilities of the country’s health system. However, there was a need to formalize these procedures, and document the existing processes. As a result, the Ministry of Health has prepared a National Health Strategic Plan for 2022- 2026 which addresses a lot of the issues that were highlighted during the onset of the pandemic and for which the health plan now lays out the procedures that should be followed. Improved capacity to provide critical health and emergency services is expected to improve Seychelles’ response to health emergencies and help prevent vulnerable households from falling into deeper destitution. B. Environmental, Forests, and Natural Resource Effects 48. The program supported the establishment of key institutions to strengthen the management of climate change effects and improve resilience. Seychelles faces a number of key challenges. Specifically, Seychelles natural resource endowment faces threats from rising sea levels, variable weather patterns and ocean acidification due to climate change raising concerns about the economic costs of temperature rise (coral bleaching and losses to fisheries and tourism); extreme rainfall (crop and fish losses, flooding); and sea-level rise (coastal erosion and salinization, and consequent losses to tourism and food and water security). Establishing the National Climate Change Council has strengthened coordination of climate change measures (Policy Area 2 -Protecting the Future). The Council will be responsible for mainstreaming climate in sectoral plans and policies and defining adaptation and mitigation targets. This should facilitate a more strategic and effective approach to developing policies to mitigate the effects of climate change. C. Institutional Change/Strengthening 49. The program made significant contribution to strengthen institutions for managing risks during the pandemic and to strengthen Seychelles’ resilience to future health-related shocks and climate change, as well as building financial sector resilience. The Seychelles Response Plan for COVID-19 outlines an approach for managing subsequent reopening and testing strategies, including adoption of measures for preventing future outbreaks. It is expected to inform how other types of pandemics are managed. In fact, the Ministry of Health developed a new health strategic plan, to guide the sector for the next five years, which addresses health security issues and outlines how the sector should identify outbreaks and other health threats, improve crisis response and protect the health of Page 24 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) the population. This should help support resilience of the tourism sector in particular, and the overall economy more broadly. In addition, there was an improvement in the coordination of climate change policies and the establishment of a registry of beneficiary owners. The program also made a significant contribution to strengthen the AML/CFT regulatory landscape by passing the Beneficial Ownership and Anti-Money Laundering laws and the subsequent launch and population of the beneficial ownership registry. D. Other Unintended Outcomes and Impacts No other unintended outcomes and impacts. IV. BANK PERFORMANCE Rating: Moderately Satisfactory 50. The Bank’s Performance is rated as Moderately Satisfactory. The design and implementation of the program was based on a rigorous list of analytical work which drew from international experience in managing economic crisis. This included: The Economic Policy Response to the COVID- 19 Crisis; COVID-19 Notes Finance Series; COVID-19 Outbreak: Implications on Corporate and Individual Insolvency; Secured Transactions and Collateral Registry; Seychelles Financial Sector Development Implementation Plan. The design also draws on analytical work that analyzed the impact of COVID-19 which was used to identify the key vulnerable group for targeted interventions. The remaining Prior Actions were designed based on analytical work such as the ongoing Program-for- Results for social protection reform (prior action #2) and the ongoing reimbursable advisory services on AML (prior action #5) which were informed through a wide stakeholder consultation process, including all relevant private sector players. Even though the World Bank did not have a resident staff in Seychelles at the time of this operation, the team was able to successfully coordinate closely with both key government agencies and development partners to quickly prepare this program. The program also addressed key issues linked to AML/CFT regulations and improved coordination and policy development capacity for improved management of climate change challenges. 51. The World Bank team worked closely with government officials from various ministries, including the Ministry of Finance, National Planning and Trade, the Ministry of Health, and the Seychelles Revenue Commission to design the Program. The World Bank team also closely coordinated with the IMF, European Commission, the African Development Bank and other development partners. Given the quick unfolding of the COVID-19 crisis, travel ban, and no resident staff in Seychelles, stakeholder consultations on Prior Actions #1 focused on the relevant government agencies as well as regular exchanges with the development partners, including the World Health Organization. The last formal private sector consultation in Seychelles took place during a Country Director’s visit in February 2020, during which discussions were focused on key constraints to the private sector in the country, including threat of COVID-19. Through previous work on Disaster Risk Management, the World Bank team also consulted extensively on climate change risk adaptation issues, including with District Administrators, Regional Council members, non-governmental organizations, development partners and private sector representatives. Page 25 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) 52. In terms of program design, the choice of prior actions was closely aligned to program objectives. Selected indicators also appropriately captured results achieved through completion of the prior actions. The design and implementation supported a strong recovery of the economy in 2021 and an even stronger recovery in 2022. As a result, the amount of support to vulnerable groups at completion of the program has been far less than was expected at the time of preparation. The reforms supported under this program enabled Seychelles’ tourism sector to respond to the increased inflow of tourists. This result reflected the successful application of lessons which highlighted the importance of adopting reforms to prevent a collapse of the economy through supporting (a) jobs and firms through guarantees, wage subsidies, debt relief; (b) scaling-up social protection systems including through targeted transfers to the most vulnerable; and (c) measures that strengthen resilience of the financial sector. 53. Overall, World Bank performance could have been rated higher but for the challenge in setting targets in a context of an ensuing pandemic, high urgency for much needed funds, and gaps in existing data systems. Despite limited time and numerous constraints, the World Bank’s country knowledge, robust analytical body of work and technical expertise, in the context of ongoing policy dialogue, enabled the World Bank team to produce a program which supported critical responses to the pandemic as well as addressing critical reforms in AML/CFT and climate change. However, there were challenges to setting targets, collecting data and putting systems in place to monitor the program, despite the World Bank’s close collaboration with the government. In cases where data was missing, targets were based on extensive consultation with private sector actors and the government. Expert opinion from these consultations coupled with evidence from some ongoing operations were then used to set targets. Despite this limitation, the program design was highly relevant and instrumental in limiting the damage that the economy could have suffered in its absence. V. RISK TO SUSTAINABILITY OF DEVELOPMENT OUTCOMES 54. The program outcomes are likely to be sustained, given Seychelles’ track record of macroeconomic management and the continued commitment to supporting vulnerable groups. Seychelles’ economic fundamentals are strong and has been maintaining solid macroeconomic a nd fiscal management. During the pandemic, the authorities also took steps to support the economy, thereby putting it in good stead to take advantage of the tourism sector recovery. After a contraction in GDP of 7.7 percent, the economy rebounded to a 7.9 percent growth in 2021, with projected growth for 2022 estimated to be close to 11 percent. External factors played a role in this recovery, as did the policies adopted by government, including those supported by this program. Government continues to take steps to contain the fiscal deficit and borrowing. Specifically, debt to GDP ratio increased to 89.8 percent in 2020 (from 61.8 percent in 2019), due to the economic contraction and the 50 percent depreciation in the exchange rate. The country also faced high rollover risk because domestic debt accounted for half of the total debt stock and consisted mainly of short-term (T-Bills) debt that matured in 2021. As a result, the higher interest rates and shorter maturities resulted in high gross financing needs. Page 26 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) 55. The sustainability of the program is illustrated in the steps the GoS took, with support from the IMF Liability Management Operation (LMO) of July 6, 2021. With support of the LMO, the GoS switched SCR 1.2 billion (5.2 percent of GDP) of T-Bills into bonds. The LMO has extended the average maturity of the participating debt portfolio by 4.8 years compared to the previous maturity of less than 1 year. It also lowered the weighted average yields on the LMO for the bonds by 125-150 basis points compared to the previously issued rates and contributed to the mitigation of rollover risks. As a result of the LMO, fiscal consolidation and low-cost external financing, combined with strong growth, the gross financing needs sharply declined to 42 percent of GDP in 2021, and further to 24 percent in 2022. In addition, key institutional reforms (also supported by this program) are helping to build sustainability and resilience of the economy through policies for improved management of climate change, scaling up social protection and making it more responsive to economic shocks, strengthening transparency and resilience of the financial sector. VI. LESSONS AND NEXT PHASE A. Lessons Learned 56. The program offers several lessons, some specific to Seychelles while others are broader and generally applicable: (i) It is important to be more conservative or modest in setting targets in a context of changing government, stretched government capacity (especially with the pandemic ensuing), and capacity of the private sector to take advantage of available programs. This was the case with PA#5 wherein the degree of risk aversion of financial institutions or the limited capacity of MSMEs was not fully taken into account in setting the targets. The level of capacity of businesses and their access to capital impacted achievement of targets. In some cases, the pool of MSMEs targeted were not eligible to access some of the targeted relief measures. In future operations there could be consideration of how to reach this low-capacity group of MSMEs. (ii) Importance of data in setting appropriate targets for assessing program results and identifying good baseline data for reference points. Difficulty in getting data impacted the ability to assess realism of the targets. The assessment had to rely on expert opinion at the time of the preparation of the operation and on experience from ongoing programs (such as the social protection reforms and scale-up). These consultations and expert opinions were arrived at in a context of high infection rates from the pandemic. The tendency was to assess higher adverse effects and therefore higher impact of the program. However, by the time of implementation some of the actions (that is, COVID-19 Response Plan) were so successful in mitigating the adverse effects of the pandemic that some of the uptakes of programs were lower than anticipated. There was no consideration for the possibility that the situation would improve so quickly (as shown with indicator #3). These considerations were further impacted by a change in government and staff at the time. Page 27 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) (iii) Additional effort is needed to integrate the Monitoring and Evaluation (M&E) in the government’s systems from the outset. The World Bank needs to make substantial efforts to help ingrain the practice of M&E and provide necessary support. Shortcomings to the M&E framework included the lack of a proper measurement (definition (over ambitiousness)) of some of the indicators from the outset, which made the achievement difficult. The results framework for the program needed to be better integrated into program management instead of being perceived as a bureaucratic requirement. With a more concerted effort to incorporate results management and an evidence-based culture into the policy dialogue, both the World Bank and GoS can have a better continuous monitoring of the program. (iv) Keep the design of standalone operations used during crises periods simple and leave complex structural reforms to regular DPF operations or programmatic operations. In this operation, lags in the execution of follow-up actions during implementation illustrate the inherent difficulty of focusing on structural reforms at a time when a government’s energies are consumed by the emergency response to an unprecedented crisis. Prior action #6, in the second pillar on supporting sustainable post-crisis recovery through strengthened financial systems and climate resilience, required complex coordination, technical implementation arrangements and more time to get buy-in within the government and other stakeholders. In addition, there were political economy risks (the government changed during the implementation phase of the operation) that became pronounced during implementation. B. Next Phase 57. The government of Seychelles has requested a series of Development Policy Operations from the World Bank to help support its effort to achieve fiscal sustainability following the impact of the COVID-19 pandemic. In this regard, the World Bank, on December 16, 2021, approved the ‘Seychelles First Fiscal Sustainability and Climate Resilience Development Policy Loan” (P176420), which is the first in a planned series of three operations that will help support the government’s effort to achieve fiscal sustainability following the impact of COVID-19 on the government’s fiscal performance and support critical structural reforms by laying the foundation for resilient economic growth. The second phase is currently under preparation and is scheduled to go to the World Bank’s Board in December 2022, while the third phase is expected to be delivered in 2023. The World Bank is also providing Technical Assistance where needed, for example, Reimbursable Advisory Services in the financial sector. The World Bank is also heavily involved in the climate change area by working with the government in implementing the Fiscal Planning Act and providing guidelines on implementing regulations and supporting legislation for policies. Finally, there is ongoing dialogue with government to set up a performance-based system (as requested by government) including results monitoring. This should help with initial steps toward establishing a system for monitoring and evaluation of government programs. Page 28 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) ANNEX 1. RESULTS FRAMEWORK . RESULTS INDICATORS Pillar: Protecting Lives and Livelihood Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage of international Percentage 0.00 95.00 100.00 arrivals having been tested for COVID-19 in accordance with 31-Dec-2019 31-Dec-2020 31-Dec-2020 the Department of Health protocol Comments (achievements against targets): Target exceeded (105%). This was accomplished through the launch of the government’s Health Travel Authorization requirement for entry into Seychelles. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage increase in Percentage 0.00 20.00 11.30 households receiving social protection or social welfare 31-Dec-2019 30-Jun-2020 30-Jun-2020 support to alleviate COVID-19 impacts Comments (achievements against targets): Page 29 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Partially met (57%). The target was not met due to the improvement in the economy resulting from the reopening of the economy and the revival of the tourism sector. In addition, given the uncertain environment (pandemic) it was difficult to correctly estimate how many households would need assistance to mitigate the impact of the pandemic. In the end, less households needed assistance from the government. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of workers in the Number 0.00 25,000.00 11,416.00 private sector having benefited from salary guarantee with the 31-Dec-2019 31-Dec-2020 31-Dec-2020 objective to reduce job and income losses Comments (achievements against targets): Partially Met (45.6%). The lower-than-expected uptake in the FA4JR is due to a revision to the eligibility criteria in July 2020 such that only Seychellois and permanent resident employees were to be covered, and to ensure that only businesses that were severely impacted by the pandemic received funds and to contain the cost of this intervention on the budget (once it was clear that this measure would last for more than the three months it was initially intended for), given the longevity of the crisis. Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage of firms benefiting Percentage 0.00 90.00 36.90 from postponement of taxes to mitigate the impact of COVD-19 31-Dec-2019 31-Aug-2020 31-Aug-2020 Comments (achievements against targets): Partially met (41%). Most companies opted to pay their taxes rather than apply for the deferment. Page 30 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage uptake of the credit Percentage 0.00 80.00 22.40 line facility under the Private Sector Relief Scheme to help 31-Dec-2019 30-Jun-2021 30-Jun-2021 micro, small and medium enterprises (MSMEs) impacted by COVID-19 Comments (achievements against targets): Partially Met (28%). This is attributed to several factors including: (i) non-availability of collateral from the businesses; (ii) strict credit and business viability assessments by some participating institutions resulting in rejected applications; (iii) applications withdrawn due to uptick in economic activity; and (iv) ineligibility of some businesses to access the Scheme. Pillar: Protecting the Future Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage of legal entities that Percentage 0.00 80.00 90.00 have submitted verifiable ownership information on the 31-Dec-2019 30-Jun-2021 30-Jun-2021 database held by FIU Comments (achievements against targets): Target exceeded (113%). Page 31 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of government sectors Number 0.00 10.00 3.00 guided on the mainstreaming of climate change in sectoral 31-Dec-2019 30-Jun-2021 30-Jun-2021 policies through the new National Climate Change Council chaired by the Vice President Comments (achievements against targets): The Ministry of Finance, the Central Bank and the Ministry of Tourism have been participating in climate change workshops to better understand how to include climate change in sectoral policies. The low implementation can be attributed to capacity constraints in the ministries and departments and the government’s short-term priority focused on stabilizing the economy. Nonetheless the government remains committed to tackling climate change. . Pillar: Protecting Lives and Livelihood Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage of international Percentage 0.00 95.00 100.00 arrivals having been tested for COVID-19 in accordance with 31-Dec-2019 31-Dec-2020 31-Dec-2021 the Department of Health protocol Comments (achievements against targets): Page 32 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage increase in Percentage 0.00 20.00 11.30 households receiving social protection or social welfare 31-Dec-2019 30-Jun-2020 31-Dec-2021 support to alleviate COVID-19 impacts Comments (achievements against targets): Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of workers in the Number 0.00 25,000.00 6,798.00 private sector having benefited from salary guarantee with the 31-Dec-2019 31-Dec-2020 31-Dec-2021 objective to reduce job and income losses Comments (achievements against targets): Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage of firms benefiting Percentage 0.00 90.00 80.00 from postponement of taxes to mitigate the impact of COVD-19 31-Dec-2019 31-Aug-2020 31-Dec-2021 Comments (achievements against targets): Page 33 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage uptake of the credit Percentage 0.00 80.00 22.40 line facility under the Private Sector Relief Scheme to,,, help 31-Dec-2019 30-Jun-2021 31-Dec-2021 micro, small and medium enterprises (MSMEs) impacted by COVID-19 Comments (achievements against targets): Pillar: Protecting the Future Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Percentage of legal entities that Percentage 0.00 80.00 82.00 have submitted verifiable ownership information on the 31-Dec-2019 30-Jun-2021 31-Dec-2021 database held by FIU Comments (achievements against targets): Indicator Name Unit of Measure Baseline Target Actual Achieved at Completion Number of government sectors Number 0.00 10.00 3.00 guided on the mainstreaming of climate change in sectoral 31-Dec-2019 30-Jun-2021 31-Dec-2021 policies through the new Page 34 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) National Climate Change Council chaired by the Vice President Comments (achievements against targets): The national climate change council was not established due to the delays caused by COVID-19 and the decision by the newly form government (2020) to not create more government bodies (that is, streamline agencies). However, the Ministry of Finance, the Central Bank and the Ministry of Tourism have been participating in climate change workshops to better understand how to include climate change in sectoral policies. Page 35 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION PROCESSES A. TASK TEAM MEMBERS Name Role Preparation Sashana Whyte, Brenden Jongman Task Team Leaders Patrick Kabuya Financial Management Specialist Laurent Pierre Jean-Jacques Ge Damblat Team Member Felipe Montoya Pino Team Member Julien Marie Francois Million Team Member Nejma Cheikh Team Member Maud Juquois Team Member Emre Ozaltin Team Member Hoda Atia Moustafa Team Member Marco Ranzani Team Member Jan Erik von Uexkull Team Member Michel Matera Team Member John Gabriel Goddard Team Member Marcelle Ayo Team Member Ana Campos Garcia Team Member Carolin Geginat Team Member Edmundo Murrugarra Team Member Thomas Buckley Team Member Kathrin A. Plangemann Team Member Alemtaye Nani Makonnen Team Member Anita M. Schwarz Team Member Supervision/ICR Sashana Whyte, Brenden Jongman Task Team Leaders Patrick Kabuya Financial Management Specialist Laurent Pierre Jean-Jacques Ge Damblat Team Member Felipe Montoya Pino Team Member Julien Marie Francois Million Team Member Nejma Cheikh Team Member Maud Juquois Team Member Emre Ozaltin Team Member Hoda Atia Moustafa Team Member Marco Ranzani Team Member Jan Erik von Uexkull Team Member Page 36 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) Michel Matera Team Member John Gabriel Goddard Team Member Marcelle Ayo Team Member Ana Campos Garcia Team Member Carolin Geginat Team Member Edmundo Murrugarra Team Member Thomas Buckley Team Member Kathrin A. Plangemann Team Member Alemtaye Nani Makonnen Team Member Anita M. Schwarz Team Member . B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY20 5.875 33,407.60 FY21 .400 2,936.32 FY22 .800 8,731.84 Total 7.08 45,075.76 Supervision/ICR FY22 0 9,016.00 Total 0.00 9,016.00 . Page 37 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) ANNEX 3. BORROWER, CO-FINANCIERS, AND OTHER DEVELOPMENT PARTNERS’/STAKEHOLDERS’ COMMENTS The ICR was prepared in close consultation with the authorities. A series of interviews was concluded with all involved stakeholders on the government side (Ministry of Finance, National Planning and Trade, Ministry of Health, Ministry of Agriculture, Environment, and Climate Change, Central Bank of Seychelles and Ministry of Employment and Social Affairs). While no additional comment was provided to the final written version, many of the lessons learned and the results reflected in the document, notably on the success of the operation, are the results of the close discussions with the authorities. Page 38 of 39 The World Bank COVID-19 Crisis Response Emergency Development Policy Financing (P174198) ANNEX 4. SUPPORTING DOCUMENTS 1. Program Document, Report No.: PGD212, dated June 11, 2020 2. Program Information Document, Report No.: PID29577, dated June 4, 2020 3. Loan Agreement, dated June 9, 2020 4. Aide-Memoire, dated March 1-5, 2021 5. Implementation Status and Results Report: June 8, 2022 6. Poverty and Equity Assessment Report for Seychelles 7. Seychelles’ National Climate Change Policy “Making Seychelles Climate Resilient’, May 2020 Page 39 of 39