The Financial Sector Reform and Strengthening Initiative (FIRST) TERMS OF REFERENCE. Mid-Term Evaluation of Phase III Operations ( )

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1 The Finncil Sector Reform nd Strengthening Inititive (FIRST) I. Evlution Purpose TERMS OF REFERENCE Mid-Term Evlution of Phse III Opertions ( ) The Mid-Term Evlution is conducted to ssess the implementtion of the Phse III strtegy nd to drw lessons to inform the strtegy going forwrd. It covers the period from Jnury 2013 to June , nd will focus the ssessment t the two levels: (i) FIRST s business model, governnce, nd mngement; nd (ii) Projects/Progrms performnce. The evlution is expected to provide sound bsis for ssessing the introduction of the Progrmmtic Window nd the corresponding results frmework (eligibility criteri). The timing hs been determined by the need to wit for meningful results from the Progrmmtic Window, whilst providing bsis for strtegic discussions in view of Phse IV. It is lso expected to gther nd incorporte the lessons lernt, including the feedbck during the 2015 Consulttive Group (CG) meeting. II. Bckground The Finncil Sector Reform nd Strengthening Inititive (FIRST) 2 is multi-donor progrm imed t supporting low- nd middle-income countries in building stble, more efficient, nd inclusive finncil systems. FIRST ws creted in 2002 following the Est Asin finncil crisis nd hs since funded more thn 700 projects nd progrms in over 120 countries, deploying over $150 million s of June FIRST s technicl ssistnce (TA) covers wide spectrum of the finncil sector, including but not limited to Bnking, Insurnce, Cpitl Mrkets, Finncil Infrstructure (Accounting & Auditing, Pyments Systems, nd Credit Informtion Systems), Microfinnce, etc. FIRST s trditionl mndte is to support countries in prioritizing nd implement recommendtions from the Finncil Sector Assessment Progrms (FSAPs)/Reports on Stndrds nd Codes (ROSCs). However, owing to the limited resources vilble for FSAPs in Low Income Countries (LICs), in 2014 FIRST introduced new TA instrument, the Finncil Sector 1 One exception is tht Rwnd Progrm which will end in December The evlution will review the performnce of this progrm s of December More informtion bout FIRST cn be found t 1

2 Development Implementtion Pln (FSDIP), which, though not substituting for FSAPs, ims to support countries in developing brod finncil sector strtegies with detiled ction plns. FIRST s TA recipients re typiclly government gencies, regultory bodies, policy mkers, nd under limited circumstnces qusi-public institutions such s self-regulting orgniztions. In December, 2015 FIRST formlly dopted Gender Minstreming Frmework which ims to identify opportunities to incorporte gender specific ctivities where relevnt nd fesible. FIRST is currently in its third five-yer funding cycle (Phse III, Jnury 2013 December 2018) with support from five donors: the Deprtment for Interntionl Development of the United Kingdom (DFID), Germny s Federl Ministry of Economic Coopertion nd Development (BMZ), the Ministry of Finnce of Luxembourg, the Ministry of Foreign Affirs of the Netherlnds (MFA), nd the Stte Secretrit for Economic Affirs of Switzerlnd (SECO). The World Bnk Group (WBG) nd the Interntionl Monetry Fund (IMF) re the implementing prtners. FIRST opertes under two-tier structure consisting of the Governing Council nd the Secretrit or the Progrm Mngement Unit (PMU). (i) The Governing Council provides strtegic guidnce, sets overll policies, nd pproves ll projects nd progrms. It comprises one representtive from ech of FIRST s donors, s well s representtive from the World Bnk Group, nd from the IMF. (ii) The PMU, heded by Progrm Mnger, mnges dy-to-dy ctivities. It is locted in Wshington, D.C., within the World Bnk Group s Finnce nd Mrkets Globl Prctice. Business Model FIRST projects re executed by the WBG nd the IMF, with IMF mnging fifteen percent of the funds nd the rest by the WBG. FIRST s funding model is chrcterized by two windows, Ctlytic nd Progrmmtic, with ech window hving two funding buckets one for low-income countries (LIC) nd one for middle-income countries (MIC). In totl, there re four buckets : LIC Ctlytic, LIC Progrmmtic, MIC Ctlytic, nd MIC Progrmmtic, which llows donors to mke contributions bsed on their strtegic priority nd focus 3. It is importnt to emphsize tht the Progrmmtic Window ws dded into FIRST s business only from 2013 s new TA instrument to respond to progrmmtic requests either s FSAP/FSDIP follow-up or comprehensive sector reforms in the context of country s strtegy. By offering well-structured interventions, progrms re expected to generte tngible development impcts on the ground s well s increse sustinbility. Key chrcteristics nd opertions of ech window re briefly summrized s below: (i) Ctlytic Window: funds smll-scle (under $500,000), short- to medium-term (6 to 24 months) projects to ddress trgeted TA needs bsed on country demnd. Ctlytic projects re hereinfter referred to s projects. 3 For exmple: DFID s committed fund is ermrked to only LIC countries, through LIC Ctlytic nd LIC Progrmmtic buckets; BMZ is funding only Ctlytic Window, for both LICs nd MICs. All the other donors contribute to ll the four. 2

3 From the strt of Phse III - Jnury 2013 to Mrch 2016, totl of 98 projects hve been pproved worth $29.5 million through Ctlytic Window, out of which 52 hve been fully implemented 4. (ii) Progrmmtic Window: funds lrger enggements, cross multiple subsectors, connected through well-structured, typiclly multiyer reform gend. The mount for the progrmmtic progrm TA rnges from $1 million to $2 million, implemented over three yers. The Progrmmtic Window supports TA imed t contributing to the following development objectives: Finncil Inclusion, Finncil Stbility, nd Finncil Deepening; nd includes set of mndtory quntifible trgets to chieve. Progrmmtic window projects re hereinfter referred to s progrms. As of June 30, 2016, totl of 10 progrms hve been pproved 5, which is worth $15.3 million in totl. Among these, five progrms support finncil inclusion, two finncil mrkets, nd three finncil stbility. By the end of 2016, the very first progrm pproved -Rwnd Finncil Stbility - will mostly be completed; the second progrm, Morocco Cpitl Mrket, is expected to deliver more thn hlf of its intended TA deliverbles; nd the rest re in their erly to middle stge of implementtion. Evolving context of FIRST opertions 1) WBG Reforms nd Impliction for FIRST The World Bnk Group (WBG) hs been undergoing institutionl reforms since July The new WBG strtegy envisges stronger, more selective nd effective institution in order to chieve the twin gols of ending extreme poverty nd building shred prosperity in sustinble mnner. To support these gols, number of mesures hve been undertken, including the incresed focus on country enggement nd work progrms tht deliver services to country clients, while decresing the overll institutionl business costs. The Finnce & Mrkets Globl Prctice (F&M GP), where FIRST is housed, ws formed in July 2014 by the merger of the finncil sector side of the former Finnce nd Privte Sector Development vice presidency nd Interntionl Finnce Corportion s (IFC) dvisory group. The integrtion of IFC dvisory services presents FIRST with opportunities for generting client demnd for FIRST work in res such s collterl registry, credit registry, lesing nd gri-finnce where the World Bnk s finncil sector ws not s ctive in. The reforms hve lso llowed FIRST to collborte with other Globl Prctices (GP) like Agriculture, nd Socil Protection GPs to deliver more comprehensive client solutions. The F&M GP supports the WBG s chievement of the twin gols by contributing to deep, inclusive, efficient, nd stble finncil systems the sme spirtion shred by FIRST s mission. FIRST funds pproximtely 1/3 of Advisory Services & Anlytics (ASA) projects in the F&M GP. The recently dopted Progrmmtic Approch6 (PA) by the WBG, to llow for better coherence nd synergies of the F&M ctivities in one country nd help reduce excessive frgmenttion in technicl 4 These dt will be updted to reflect the cut-off point t June 30, One in 2013, one in 2014, six in 2015 nd two in The WBG/F&M GP Progrmmtic Approch is n umbrell product line llowing for the combintion of more thn one ASA ctivity under one common development objective, which is usully t the high level. One PA could 3

4 ssistnce/dvisory services/nlytics (ASA) works, cn sometimes be t odds with the demnd driven nture of FIRST. Since it tkes from 6 months to one yer to cler Concept Note for WBG PA, there were cses where ppliction process for FIRST funded projects hd to be kept on hold to wit for pprovl of WBG PA nd in one cse, it could not move to implementtion fter the pprovl of the project by FIRST. The consolidtion of ASA ctivities hs creted incentives for project tems to hve more comprehensive solution, thus pushing up the project costs. Other fctor tht hs contributed to the cost increse is the WBG s recent full cost recovery on trust funds. 2) Shift in FSAP resource lloction FIRST ws creted to help client countries to implement FSAP/ROSC recommendtions. Over hlf of FIRST s projects/progrms hve been informed by FSAP/ROSC ssessments. However, due to resource constrints s well s shift in the FSAP progrm priorities towrds countries with systemiclly importnt finncil sectors, the frequency of FSAPs to low income countries (LICs) hs significntly declined nd this is likely to remin the cse for foreseeble future. Consequently, there is n incresing number of projects bsed on country strtegies nd priorities, but the proposls tht FIRST receives do not lwys hve in-depth dignostic underpinnings. To ddress this gp, FIRST introduced Finncil Sector Development Implementtion Pln (FSDIP) tht cn help countries prioritize nd sequence finncil sector development needs bsed on existing nd dditionl nlyticl work. 3) Results-Bsed Mesurement (RBM) requirements Under Phse III, the results frmework hs been considerbly strengthened. A comprehensive M&E frmework ws put in plce nd n M&E specilist ws hired to implement the strtegy. For the progrmmtic window, ex nte result trgets were defined. The ppliction of these trgets ppered to tmper demnd for progrmmtic funds nd it ws greed to pply the trgets more flexibly. At the sme time, the IMF is currently implementing comprehensive RBM reform, which includes the use of stndrd indictors. Sttus of Implementtion As of Mrch 2016, FIRST hs mobilized totl of $96.8 million (including $10.5 million rolled over from Phse II) for Phse III opertions, nd expects to fully llocte the funding vilble for projects/ progrms by end of Despite the chllenging nd chnging environment throughout Phse III, FIRST hs continued to operte successfully expnding its portfolio. Although the uptke of the Progrmmtic Window ws initilly slow, it provided n opportunity for lerning nd enhncements to progrm designs. Demnd grew strong by its third yer, nd the funding for Progrmmtic Window is expected to be fully committed by end FIRST s Consulttive Group Meeting FIRST orgnize Consulttive Group Meeting (CG) every two yers. This event hs been criticl to FIRST s success s it llows FIRST to listen directly from its clients nd prtners on how to improve impcts on the ground. The 4 th CG ws convened in June 2015 in Rbt, Morocco. This ws the first CG event in FIRST s Phse III opertions. It ws ttended by very geogrphiclly nd techniclly diverse group of FIRST clients, peers, nd donors: from centrl bnk governors, to heds of bnking nd insurnce supervision s well s high level officils from Allince for Finncil Inclusion (AFI), Interntionl Assocition of Insurnce Supervisors (IAIS), Committee on Pyments nd Mrket Infrstructures (CPMI), nd Mking Finnce Work spn cross sectors, themes, nd dditionl tsks cn be dded during the PA lifecycle. FIRST s Progrmmtic Window concept is more focused, with mndtory pex trget. 4

5 for Afric (MFW4A). Prticipnts provided feedbck on vrious issues regrding FIRST business model, processes nd qulity of TA. Specificlly, the prticipnts highlighted wht worked well in their previous enggement with FIRST, wht hs not nd shred lessons on wht it tkes to implement reforms successfully. The CG mde severl recommendtions on how FIRST could improve the qulity of TAs going forwrd. The full report of this event is ccessible on FIRST website t This Mid-Term Independent Evlution will ssess, mong other things, the extent to which the Rbt CG recommendtions re implemented by FIRST. III. Evlution Objectives, Scope nd Questions This Mid-Term Evlution will ssess: () (b) FIRST s business model nd mngement effectiveness: with forwrd looking pproch, independent evlutor(s) will ssess FIRST s business model nd governnce structure, nd FIRST Mngement s effectiveness using the performnce trgets dopted in Phse III Strtegy s yrdstick, including the extent to which CG recommendtions hve been implemented. Project nd progrm performnce: will be ssessed bsed on the stndrd Orgniztion for Economic Co-opertion nd Development (OECD)/Development Assistnce Committee (DAC) evlution criteri, notbly Relevnce, Effectiveness, Efficiency, Impct, nd Sustinbility. The ssessment will focus on completed ctlytic projects s of June 2016 nd smple of ctive progrms with the cut-off dte of December The lter cut-off dte for progrms would llow for the review of more ctivities thus offer more lerning tking into considertion of the lte up-tke of this Window. In December 2015, FIRST dopted gender minstreming pproch involving initil efforts to incorporte gender specific ttention in the project where relevnt nd fesible. This Mid- Term Evlution will review the ppropriteness of FIRST s erly implementtion of this gender pproch nd provide recommendtions for future djustments or improvements. 3.1 FIRST s business model nd mngement effectiveness Strtegic Focus nd Vlue Addition: (i) To wht extent is FIRST s strtegic focus (i.e., themtic Stbility, Depth, Inclusion, Efficiency, nd sectorl coverge, Afric nd LIC priorities) still relevnt in the globl finncil sector development spce, considering FIRST s comprtive dvntges? Wht chnges in the strtegic focus should FIRST s donors nd prtners consider going forwrd nd why? (ii) Wht is the vlue dded by FIRST to its clients nd prtners? Funding Model: (iii) To wht extent is the current funding modlity (2 windows, 4 funding buckets) effective s prtnership contribution model for chieving finncil sector development gols? Wht chnges in the funding model should FIRST s donors nd prtners consider going forwrd nd why? Ctlytic Window: 5

6 (iv) To wht extent does the Ctlytic Window business model meet the TA needs of clients (e.g., 24 month timefrme, budget ceiling of US$500,000, pprovl criteri, etc.)? (v) To wht extent is the concept of Ctlytic Window ligned with the WBG s ASA reform? (vi) Wht djustments nd improvements, if ny, should FIRST s donors nd prtners consider for Ctlytic Window? (e.g., time limittion of under 24 months, budget under US$500,000 in the context of the ASA reform/pa nd WBG s new cost recovery policy) Progrmmtic Window: (vii) To wht extent is the design of Progrmmtic Window pproprite to generte tngible impcts (Inclusion, Stbility, nd Depth) s well s increse Sustinbility? (viii) Wht re the fctors either internl or externl tht my hve contributed to the initil slow uptke of the progrmmtic window? Wht djustments or improvements, if ny, should FIRST donors nd prtners consider for this business modlity going forwrd (e.g. eligibility criteri, trgets, pprovl process, results frmework)? Finncil Sector Development Implementtion Pln (FSDIP) (ix) To wht extent is the FSDIP instrument ppropritely designed to provide client countries with nlyticl bsis for prioritized nd well-sequenced finncil sector reforms in the bsence of FSAPs? (x) Should FIRST continue to offer this TA instrument going forwrd? Wht lessons cn be drwn from its implementtion thus fr nd wht improvements if ny should FIRST donors nd its prtners to consider? Opertionl Rules, Processes, nd Opertionl Effectiveness: (xi) To wht extent re FIRST s opertionl policies nd processes effective in helping FIRST chieve its strtegic trgets nd objectives? Wht djustments should be considered going forwrd? (xii) To wht extent were Phse III opertionl trgets chieved or likely to be chieved? (xiii) How effective hs the coordintion between the donors, prtners (WBG nd IMF), nd FIRST mngement been? Wht improvements should be considered going forwrd? (xiv) Hs FIRST opertions been cost efficient? Monitoring & Evlution: (xv) To wht extent is FIRST s Monitoring & Evlution pproprite nd effective? (xvi) Wht should be done differently in the M&E prctice going forwrd? Knowledge Mngement nd Brnd Building: (xvii) To wht extent hs FIRST effectively implemented the Knowledge Mngement (KM) gend put forwrd by Phse III Strtegy (i.e., website, reporting, lessons lerned notes, d-hoc publictions)? Wht enhncements should FIRST consider in order to strengthen its KM gend going forwrd? (xviii) How is the FIRST brnd perceived by its stkeholders (clients, prtners, nd finncil sector development community)? Wht should be done to strengthen the brnd identity? 3.2 Project nd Progrm Performnce Both projects nd progrms will be evluted using OECD/DAC stndrd criteri. It is worth noting tht however the mturity of projects nd progrms differs, specificlly projects selected for evlution re those completed, while progrms re still ctive, except for just Rwnd progrm which will mostly be 6

7 completed by December The evlution of Progrmmtic Window therefore will focus more on the progress towrds chieving trgets nd this is lso pproprite s this evlution is mid-term one. Relevnce: (i) (ii) Effectiveness: To wht extent re the ctivities nd outputs of projects nd progrms consistent with the client countries finncil sector policies nd priorities? How do clients ssess the technicl ssistnce provided by the WB/IMF experts nd consultnts in terms of qulity, nd usefulness? (i) To wht extent hve FIRST s TA recommendtions been implemented by client countries? Wht might be the relistic expecttion in terms of timefrme to hve recommendtions implemented? (ii) To wht extent were the objectives of completed projects/progrms chieved or re likely to be chieved? (iii) Wht is the likelihood of ctive progrms to chieve their objectives? (iv) How successful hve ctlytic projects generted follow-up reforms? Efficiency: (v) Hve projects nd progrms cost more or less thn plnned? How do ctul costs of similr ctivities compre? (vi) Hve projects/progrms been executed in timely mnner? Impcts: (vii) Wht difference hve completed projects nd progrms mde or will likely mke to client countries? (viii) To wht extent hs the introduction of the Progrmmtic Window helped to strengthen FIRST impct? Sustinbility: (ix) To wht extent hve projects/progrms been designed nd implemented to ensure sustinbility fter TA completion? Wht could be done more? (x) To wht extent hs FIRST, through the use of locl consultnts, hd n impct on building locl cpcities nd knowledge? 7 (xi) To wht extent do projects nd progrms build on/ re hrmonized with other existing donor inititives, estblished locl structures, institutions nd processes? Gender Minstreming: (xii) Is FIRST s recently dopted gender pproch dequte to ddress issues of gender inequlity? If needed, wht cn be done to improve it? (xiii) Is the gender pproch implemented properly? Wht lessons should be lerned moving forwrd? 7 One of FIRST s Opertions Trget is to hve t lest 10% of totl consultnts budget llocted to locl consultnts. The rtionle behind this is to strengthen the cpcity for locl institutions in the client countries in the interest of Sustinbility. 7

8 IV. Methodology The independent evlutors will develop the methodology detiling the smpling strtegy, nd dt collection instruments (survey nd interview questionnires), interviewee list, dt nlysis strtegy. In terms of dt sources nd collection methods, below is wht FIRST would envision: 1.1 Review project nd progrm documenttion, Phse III strtegic ppers, Rbt CG Meeting Report, nnul nd qurterly reports, KM products, pst evlutions, etc. 1.2 Conduct desk reserch of relevnt finncil sector issues nd context. 1.3 Develop criteri for smpling, nd select smples of Progrmmtic Window for in-depth review. Among the smples selected, conduct 2 country visits to ssess the progrms performnce nd future. 1.4 For Ctlytic Window, the in-depth reviews will be conducted to ll of [50] projects completed s of June 30, In ddition, the consulting firm will select smples mong these 50 projects for 3 country visits to ssess the performnce of Ctlytic Window. Among other criteri to be developed by independent evlutor(s), country with FSDIP project must be included. 1.5 Develop methodology for FSDIP Cse Study, nd produce the cse study this instrument to elborte the experience to-dte, the effectiveness of this instrument in terms of ctlyzing follow-up reforms nd funding to implement reforms, the lessons lerned nd recommendtions for improvements (Plese refer to Annex 1 for the Report Structure nd Requirements). 1.6 Conduct interviews with representtives from donors, prtners, clients, nd FIRST Project Mngement Unit to collect informtion to respond to questions in section III of this TOR. 1.7 Conduct Client Survey, which should include brnd perception mong other dimensions, nd mke comprison with previous independent client surveys (vilble on FIRST s website, on the Independent Evlutions pge). 1.8 Provide rtings for completed projects nd progrms ginst the DAC criteri. The rtings should be provided t the individul dimension s well s the overll rting. The consultnts should refer to the rtings provided in the pst independent evlutions (vilble on FIRST s website) to build the trend. 1.9 Review ctive progrms, those re with more thn one yer from the strt dte; conduct interviews or consulttion with relevnt prtners/tsk tem to ssess the likelihood of effectiveness. (Plese refer to Annex 2 nd 3 for the list of Projects nd Progrms). V. Deliverbles The Finl Report will be pproved by the Governing Council. The PMU will mnge the process nd will ensure tht the evlutors respond to the TOR s questions without fctul errors. The liison person for the PMU will be Ms. Hnh Le, Senior Monitoring & Evlution Specilist, who cn be contcted t Lhnh@worldbnk.org. The deliverbles include the following: (i) Inception Report: should demonstrte evlutors cler understnding of the tsk, present the detiled methodology for dt collection nd nlysis, including smpling, list of proposed interviewees, interview guides nd client survey questionnires, project performnce rting pproch, work pln nd schedule. The Inception Report should demonstrte cler understnding of how the nlysis, findings, nd recommendtions should be seprted for (i) FIRST s funding/business models nd opertions-relted issues; (ii) Performnce of 8

9 Ctlytic Window long OECD/DAC criteri; nd (iii) Performnce of Progrmmtic Window long OECD/DAC criteri but with focus on progress towrds meeting the progrms trgets. The Inception Report must be ccepted by FIRST s PMU before the evlution cn proceed to the next phse. (ii) Drft nd Finl Reports: these report should consider the report formt presented in Annex 3 of this TOR, unless there re good resons for different formt. The finl report s min text should be t mximum 50 pge length nd cover ll of questions rised in this TOR. Additionl informtion which is relevnt to the report should be included in nnexes. Both Drft nd Finl Reports should clerly present the findings, conclusions, nd recommendtions for: (i) FIRST s funding/business models nd opertions-relted issues; (ii) Ctlytic Window; nd (iii) Progrmmtic Window. Within the Report, cse study on the FSDIP instrument nd performnce will be developed to describe how it worked, wht hs been the success/filure so fr, nd wht improvements or modifictions should be considered going forwrd (Plese see more guidnce in the Report Structure in Annex 1).. 1 st Drft Report: will be sent to PMU for checking fctul errors nd reviewing whether the report responds to the TOR s questions nd requirements. b. 2 nd Drft Report: will be circulted to the GC members (by the PMU) for comments. Evlutors will deliver presenttion on the findings, conclusions, nd recommendtions t the virtul GC Meeting in Mrch c. Finl Report: will be pproved by the GC. VI. Schedule No. Tsk Timeline FIRST PMU lunches the competitive bidding for consulting firm selection. By July 1, 2016 FIRST PMU wrds the contrct to selected firm. By September 10, 2016 Consulting firm submits Inception Report to FIRST PMU. By September 30, Consulting firm conducts the evlution in line with the pproved Inception Report Consulting firm submits 1 st Drft Report to PMU for fctul errors nd dequcy checking. FIRST PMU checks fctul errors nd reviews whether the Drft Report responds to TOR questions nd requirements Consulting firm responds to PMU comments nd submits the revised Drft Report. PMU circultes this Drft Report to GC for comments. 9 November 1, 2016 Februry 28, 2017 by Februry 28, 2017 By Mrch 10, 2017 By Mrch 15, 2017

10 8. 9. Consulting firm presents the Drft Report t the GC Virtul Conference. The consulting firm incorportes comments from GC members nd submits the Finl Report. The Finl Report will be pproved t the GC Meeting in erly June Tenttive between Mrch 15-31, 2017 By My 31, 2017 VII. Technicl Qulifiction The evlution tem should hve the following qulifiction: The Tem Leder should hve t lest fifteen (15) yers of experience in evluting donor funded progrms, especilly in the globl prtnership models in the finncil sector development spce; fmilir with different model of the prtnership governnce structure nd business models. Proven knowledge nd working experiences in finncil sector development spce (bnking, insurnce, cpitl mrket, pensions, pyments systems, finncil infrstructure, etc.) Experience in evluting donor funded opertions using OECD/DAC criteri. 10

11 Annex 1: Report Structure nd Requirements EXECUTIVE SUMMARY Summry of the evlution, with prticulr emphsis on min findings, conclusions, lessons lerned nd recommendtions. INTRODUCTION Presenttion of the evlution s purpose, questions, scope nd methods used. Any devitions from the evlution pln or key limittions to the methods should be cknowledged. DESCRIPTION OF FIRST OPERATIONS AND PORTFOLIO Description of the context, the institutionl environment nd rrngements estblished for the implementtion of FIRST s inititive. Descriptions of FIRST s strtegy, opertions, its purpose, governnce structure, prtners, nd implementtion sttus. FINDINGS Presenttion of fct-bsed findings in line with the purpose of the evlution. The findings should cover ll the evlution objectives nd questions in the TOR. Seprte findings need to be presented for: (i) (ii) (iii) FIRST s current business model nd opertionl issues: the nlysis nd findings should be focused on the business nd funding models, the lignment with the implementing prtners (WBG nd IMF), nd opertions-relted issues. Performnce of Ctlytic Window: the nlysis nd findings should be presented ginst the OECD/DAC evlution criteri, which spek bout the qulity of outputs nd development outcomes for the client countries. Performnce of Progrmmtic Window: the stndrd OECD/DAC criteri will pply, however, s most of pproved progrms re t the erly to mid-implementtion stge (except Rwnd), the nlysis nd findings should focus on the progress towrds the intended objectives. In ddition, within the Report, cse study on the FSDIP instrument nd performnce will be developed to describe: How it ws designed? Is the design nd implementtion (e.g., the level of dignostics, dissemintion efforts, deliverbles, ownership, etc.) consistent cross countries? If not, why? Wht hs been chieved in terms of follow-up reforms including the formultion of progrms t FIRST nd the implementtion undertken by the countries? Should FIRST continue to use this TA instrument going forwrd, nd if so, wht improvements or modifictions should be considered? CONCLUSIONS Assessments of (i) FIRST current business model nd opertionl spects; (ii) Ctlytic Window, which includes FSDIP instrument; nd (iii) Progrmmtic Window. 11

12 LESSONS LEARNED AND RECOMMENDATIONS Lessons tht my hve implictions for future of FIRST or wider ppliction. Recommendtions should be the logicl implictions of the findings nd conclusions nd firmly bsed on evidence nd nlysis. Recommendtions should be specific nd seprte for (i) FIRST s business/funding model nd opertionsrelted issues; (ii) Ctlytic Window; nd (iii) Progrmmtic Window. The Cse Study on FSDIP should include cler recommendtions on improvements going forwrd. ANNEXES TOR Project nd progrm rtings in detils List of stkeholders consulted/interviewed List of clients surveyed nd responded Dt collection instruments (copies of questionnires, surveys), nd dt summry collected from surveys Documents consulted nd references 12

13 Annex 2: List of projects/progrms completed s of June 30, 2016 P REGIO N COUNTR Y LIC/ MIC PROJECT ORIGINAL COMMITMENT S ACTIVE DATE COMPLET ION DATE P AFR Ethiopi LIC Ethiopi A048 Improving Efficiency of 316,009 12/05/13 12/01/15 Pyment Systems P AFR Liberi LIC Liberi A052 FSDIP 393,455 12/15/13 06/30/16 MCM_LBR AFR Liberi LIC Liberi (IMF) Liquidity Forecsting 102,400 12/13/14 11/30/14 _2014_01 Frmework P AFR Mozmb LIC Mozmbique A041 Debt Mrkets 409,395 03/01/14 05/31/16 ique Development P AFR Nmibi MIC Nmibi A004 Centrl Securities 375,425 01/14/14 03/31/16 Depository nd Pyment Systems Oversight P AFR Seychell MIC Seychelles A027 FSDIP 336,408 08/18/13 12/31/15 es P AFR Seychell MIC Seychelles A026 Secured Lending nd 300,264 08/18/13 08/31/15 es Collterl Registry MCM_SLE AFR Sierr LIC Sierr Leone (IMF) Bnk Supervision 334,132 03/01/13 07/31/14 _2013_02 Leone nd Finncil Stbility MCM_SW AFR Swziln MIC Swzilnd (IMF) Supervision of 169,734 05/24/13 12/31/14 Z_2012_0 5 d Insurnce nd Retirement Funds P MNA Djibouti LIC Djibouti A034 Pyment System nd 249,420 09/01/13 03/31/15 Credit Reporting Infrstructure P MNA Djibouti LIC Djibouti A047 MSME Credit 245,565 01/14/14 10/30/15 Gurntee Fund P MNA Jordn MIC Jordn A020 Pyment Systems 223,707 07/10/13 06/30/15 Reforms P MNA Lebnon MIC Lebnon A012 Ntionl Pyments 183,317 10/29/13 10/31/15 Systems Strtegy P MNA MENA MIC MENA: Insurnce Supervision in the 290,844 07/11/13 03/31/15 Region MENA Region P MNA MENA LIC MENA: Insurnce Supervision in the 116,949 07/11/13 03/31/15 Region MENA Region P MNA Morocco MIC Morocco A032 Supervision nd 199,663 10/21/13 10/31/15 regultions for non-bnk pyment service providers P MNA Tunisi MIC Tunisi A001 Estblishment of n 124,915 02/27/13 02/28/14 Asset Mngement Compny P MNA Tunisi MIC Tunisi A002 Stte Owned Bnks 232,073 05/30/13 05/31/15 Restructuring P MNA Tunisi MIC Tunisi A033 Motor Third Prty 328,358 09/22/13 02/29/16 Libility (MTPL) Insurnce P MNA Tunisi MIC Tunisi A053 Bnking Lw 107,659 02/01/14 06/30/15 Moderniztion nd Crisis Prepredness P LAC Colombi MIC Colombi A006 Housing Finnce for 244,220 08/05/13 06/30/15 Low-Income P LAC Colombi MIC Colombi A056 Strengthening SROs 124,208 11/01/13 03/31/15 Frmework P LAC Colombi MIC Colombi A066 Deposit Insurnce for 118,156 03/13/14 03/31/15 Coopertives P LAC Cost Ric MIC Cost Ric A010 Systemic Risk Assessment Frmework 123,322 08/07/13 12/31/14 P LAC Cost Ric MIC Cost Ric A030 Risk Bsed Supervision in Pension Sector 296,236 11/25/13 07/31/15 13

14 P LAC Nicrgu LIC Nicrgu A037 Supervision of 200,910 01/06/14 08/31/15 Microfinnce P ECA Kzkhst MIC Kzkhstn A057 Ntionl 499,971 02/27/14 06/30/15 n Ctstrophe Insurnce P ECA Ukrine MIC Ukrine A025 Deposit Gurntee 259,530 09/15/13 06/30/15 Fund P EAP Philippin MIC Philippines A019 Crisis Prepredness 280,027 09/06/13 06/30/15 es Frmework (II) P SAR Bhutn MIC Bhutn A060 FSDIP 347,058 03/04/14 06/30/16 P SAR Sri Lnk MIC Sri Lnk A003 Risk Bsed 386,243 05/01/13 12/31/15 Supervision (Insurnce) AFR Rwnd LIC Rwnd: Strengthening Finncil 150,000 P Stbility Progrm 10/16/13 01/31/14 P AFR Ugnd LIC Ugnd A063 MTPL Insurnce 353,839 06/29/14 06/30/16 P LAC Mexico MIC Mexico A067 Strengthening Bnking 283,276 05/29/14 11/30/15 Risk-Bsed Supervision P LAC Prguy MIC Prguy A036 Finncil Inclusion 323,840 04/08/14 05/31/16 Strtegy P MNA Yemen LIC Yemen A017 Pyment Systems nd 325,752 12/15/13 05/31/16 Credit Reporting P ECA Albni MIC Albni B004 Pension Supervision 262,962 06/24/14 05/31/16 nd Coverge P LAC Colombi MIC Colombi A064 Pension Reform 338,725 03/31/14 12/31/15 P ECA Serbi MIC Serbi A013 Mortgge Insurnce 292,658 06/18/14 06/30/16 P AFR Swziln LIC Swzilnd B003 FSDIP 287,488 06/18/14 05/31/16 d P EAP Indonesi MIC Indonesi A059 Developing 174,115 06/22/14 06/30/16 Incrementl Housing Finnce P EAP Indonesi MIC Indonesi A058 Constructing Robust 421,880 06/22/14 06/30/16 Mortgge Mrket P MNA Morocco MIC Morocco A061 Cpitl Mrket Legl 360,324 01/15/14 12/31/15 nd Regultory Frmework P AFR Comoros LIC The Union of the Comoros #B ,910 12/08/14 05/31/16 Finncil Sector Development nd Implementtion Pln (FSDIP) P AFR Mozmb LIC Mozmbique #B042 Crisis Simultion 261,460 01/22/15 06/30/16 ique P AFR Nigeri LIC Nigeri#A045 Strengthening Deposit 179,140 07/23/14 06/30/16 Insurnce P AFR So LIC So Tome nd Principe #B008 FSDIP 355,476 08/07/14 06/30/16 Tome nd Principe P EAP Mongoli LIC Mongoli #A065 Pyment Systems 287,928 12/17/14 06/30/16 Strtegy nd Oversight Frmework P LAC Prguy MIC Prguy #B016 Strengthening 109,763 12/19/14 01/02/16 Finncil Stbility Frmework P SAR Nepl LIC Nepl #B043 Bnk Resolution 123,322 12/03/14 06/30/15 Cpcity Building P MNA West Bnk nd Gz LIC West Bnk nd Gz #B046 Cpitl Mrket Development Phse III 179,913 05/04/15 06/30/16 P EAP Indonesi MIC Indonesi #C007 Pyments Systems Upgrde Implementtion 112,478 07/10/15 04/30/16 14

15 Annex 3: List of progrms pproved s of June 30, 2016 P Code REGI ON COUNTRY LIC/ MIC P AFR Rwnd LIC P MNA Morocco MIC P LAC Guteml MIC P AFR Ethiopi LIC P LAC Hiti LIC P SAR Indi MIC P AFR Lesotho LIC MCM_NP L_2016_0 1 SAR Nepl LIC P AFR Ugnd LIC P AFR Mozmbiq ue PROGRAM Rwnd: Strengthening Finncil Stbility Progrm Morocco #P3 Development of Locl Cpitl Mrkets nd SME Finnce Guteml MSME Finnce Progrm Ethiopi #P7 Promoting Inclusive Insurnce Hiti #P11 Incresing Access to Responsible Finncil Services Indi P10 SIDBI MSME Finnce Lesotho #P9 Finncil Inclusion Nepl: Strengthening Bnking Supervision (IMF) Ugnd P17 Strengthening Finncil Stbility Focus COMMITME NTS ACTIVE DATE COMPLETIO N DATE Stbility 2,079,845 10/16/ /28/2017 Depth 2,025,672 10/01/14 08/31/17 Inclusion 1,322,113 01/29/15 01/31/18 Inclusion 1,870,083 06/17/15 01/31/18 Inclusion 1,562,912 06/29/15 01/31/18 Inclusion 1,716,965 08/26/15 01/31/18 Inclusion 1,497,889 09/17/15 01/31/18 Stbility 1,689,882 07/23/15 07/30/18 Stbility 1,600,000 02/09/ /24/2018 LIC Cpitl Mrket Depth 1,700,000 03/17/ /31/