AFRICA Congo, Republic of Trade & Competitiveness Global Practice IBRD/IDA Specific Investment Loan FY 2011 Seq No: 13 ARCHIVED on 29-Mar-2017 ISR27236 Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:16-Dec-2010 Planned Mid Term Review Date:16-Nov-2015 Original Closing Date:28-Feb-2016 Project Development Objectives Effectiveness Date:13-Sep-2011 Actual Mid-Term Review Date:17-Jun-2013 Revised Closing Date:31-Dec-2017 Project Development Objective (from Project Appraisal Document) The objective of the Project is to promote private sector growth and investment in the non-oil sectors in the Republic of Congo. Itwill focus in particular on SMEs and the Pointe Noire-Brazzaville growth corridor, which is the most important and immediate sourceof economic growth and diversification. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)phrpdodel The objective of the project is to promote private investment in select non-oil value chains and to support Small and Medium Enterprises (SME) development. Components Name Support to Public Private Dialogue (PPD) and Investment Climate Reforms: TA to improve PPD, improve the investment climate and stren gthen the instit framework to support enterprises and investments:(cost $4.30 M) Support to Enterprise Development and Investment Promotion: aimed at supporting access to non financial and financial services.:(cost $8.40 M) Support to the reform of the railway company: This component will assist the Government in implementing a strategy to improve the op erations and services of the railway company, CFCO:(Cost $2.70 M) Project Coordination and Implementation:(Cost $3.60 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory 3/29/2017 Page 1 of 7
Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions PADE results and impact assessment. The projet PDO which is «To promote private investment in select non-oil value chains and to support SME s competitiveness therein», has the following four (4) results indicators over the lifetime of the project : (i) 300 SME supported by the project with 50% achieving performance indicators (ii) USD 50 million in aggregate investment amount supported by the project; (iii) Number of Doing Business reforms adopted and implemented (10); and (iv)number of Projects Successfully Launched as part of the Business Plan Competition (10). To date, the project supported 412 SMEs, 383 or 93% of which have reached or exceeded their performance indicators. SMEs supported to date represent 137% of the overall result target of the project. For the second indicator, the project supported $70 million in private investment, or 140% of target result objective with strong evidence of results attributable to project interventions. The project has supported significant progress with regard to the third PDO indicator (a number of decrees related to DB reforms have been prepared, the forthcoming mission will very actual implementation), but no progress is registered with regard to the fourth PDO indicator since the Business Plan Competition was not launched. An intermediate result indicator related to DB reforms is to help eliminate 80 procedures across 7 DB indicators to reduce cost and time. To date, the project helped reduce 65 procedures across 6 DB indicators, with 30 reform texts, 9 of which have been adopted (to be confirmed during the forthcoming mission). In 2011, RoC was ranked 183/185. Today it is 176/189 despite falling behind 2 spots in DB 2016. Still, RoC has a very long way to go and immense efforts must be deployed to change the reform dynamic in order to see a more radical improvement of the country s ranking in DB report. Therefore as of now, the PADE has already met or exceeded 2 of its 4 PDO indicators, and is within range of meeting or achieving substantive progress toward a third PDO indicator (DB reforms) by project closing. However over the last few months the disbursement rate has not progressed significantly and currently stands at 58.9% based on contracts that were already under implementation. Some key activities remain incomplete including i)the Business Plan Competition, ii) Investment Climate reforms (as measured under the Doing business report) and iii) the evaluation of the SME support program under the Matching grant. Discussions took place with key stakeholders, including ministries, private sector representative and development partners on a follow on project to PADE 2. The identification mission for the follow on project was carried out in October 2016. Based on the identification mission and ensuing dialogue with the Government, the follow on project is expected to focus on three critical set of activities including: (i) Consolidate and reinforce institutional basis created by PADE to support SME development with business reforms, investment promotion, SME competitiveness, and value chain development, including the Public Private Dialogue, Business Registration Agency, Investment Promotion Agency, and the Matching Grant. (ii) Support the development of the cross cutting transport and logistics sector to maximize its impact on SMEs competitiveness in key priority value chains in the Pointe-Noire/Brazzaville/Ouesso and other economic corridors. The project team will leverage critical studies produced by PADE including one on the competitiveness of the port of Pointe-Noire, the competitiveness of CFCO, an analysis of logistical constraints in the Pointe- Noire/Brazzaville/Ouesso corridor, and a study by KPMG on opportunities in the transport and logistics sector, as well as lessons learned from an industry-based capacity program currently being implemented by FACP with 40 companies in the sector to support 300 jobs. Furthermore, there appears to be great interest on the part of development partners such as AFD and BDEAC, as well as private sector actors such as MEDEF and BCIU to work with the WB on this sector. (iii) Support SME development in the tourism and arts and crafts sectors as a potential area that could develop SMEs and jobs. 3/29/2017 Page 2 of 7
Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- Moderate Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Substantial Substantial Stakeholders -- Substantial Substantial 3/29/2017 Page 3 of 7
Other -- -- -- Overall -- Substantial Substantial Results Project Development Objective Indicators Aggregate private investment amount supported by project activities in select non-oil value chain. (Amount(USD), Custom) Value 0.00 80,000,000.00 70,000,000.00 50,000,000.00 Date 11-Oct-2013 10-Mar-2016 02-Mar-2017 31-Dec-2017 Percentage of SMEs, out of all SMEs supported by the project, that achieved agreed upon target performance indicators (Percentage, Custom) Value 0.00 93.00 93.00 75.00 Date 11-Oct-2013 29-Feb-2016 29-Feb-2016 31-Dec-2017 Number of Doing Business reforms adopted and implemented (Number, Custom) (Number, Custom) Value 0.00 -- 0.00 10.00 Date 13-Jul-2016 -- 22-Mar-2017 31-Dec-2017 Number of Projects Successfully Launched as part of the Business Plan Competition (Number, Custom) (Number, Custom) 3/29/2017 Page 4 of 7
Value 0.00 -- 0.00 10.00 Date 13-Jul-2016 -- 22-Mar-2017 31-Dec-2017 Overall Comments Based on available information, 2 out 4 PDO indicators have been surpassed, and a third is within reach (several DB reforms / decrees have been adopted -- the team will check supporting evidence and confirm implementation of the reform in the forthcoming mission). The team will review the RF and intermediate indicators during the next PADE Hand over mission and identification of PADE II scheduled to take place end- March - April 2017. Intermediate Results Indicators Number of Doing Business indicators that have been reformed to improve the country?s business environment (Number, Custom) Value 0.00 6.00 6.00 7.00 Date 30-May-2013 10-Mar-2016 02-Mar-2017 16-Feb-2017 Number of overall procedures that have been reduced in the five Doing Business indicators where the country is ranked least. (Number, Custom) Value 0.00 65.00 65.00 80.00 Date 01-Jan-2013 10-Mar-2016 02-Mar-2017 16-Feb-2017 3/29/2017 Page 5 of 7
Aggregate incremental sales for SMEs supported by the project (Amount(USD), Custom) Value 0.00 37,000,000.00 37,000,000.00 50,000,000.00 Date 01-Jan-2013 10-Mar-2016 02-Mar-2017 16-Feb-2017 Number of SMEs benefiting from non financial services (Number, Custom) Value 0.00 412.00 412.00 300.00 Date 04-Dec-2013 10-Mar-2016 02-Mar-2017 16-Feb-2017 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P118561 IDA-48460 Effective XDR 6.40 6.40 0.00 3.77 2.63 59% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P118561 IDA-48460 Effective 16-Dec-2010 03-Feb-2011 13-Sep-2011 28-Feb-2016 31-Dec-2017 Cumulative Disbursements 3/29/2017 Page 6 of 7
Restructuring History Level 1 Approved on 24-Feb-2014,Level 2 Approved on 24-Oct-2016 Related Project(s) There are no related projects. 3/29/2017 Page 7 of 7