The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) MIDDLE EAST AND NORTH AFRICA | Jordan | Finance, Competitiveness and Innovation Global Practice | Requesting Unit: MNC02 | Responsible Unit: GFCME IBRD/IDA | Program-for-Results | FY 2017 | Team Leader(s): Meriem Ait Ali Slimane, John F. Speakman Seq No: 4 | ARCHIVED on 20-Jul-2018 | ISR32026 | Created by: Meriem Ait Ali Slimane on 29-Mar-2018 | Modified by: Meriem Ait Ali Slimane on 07-Jul- 2018 Program Development Objectives Program Development Objective (from Program Appraisal Document) PDO: " Improve Economic Opportunities for Jordanians and Syrian refugees in Jordan" Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions Summary of the Mid Term Review Findings This Mid Term Review mission took place 18 months after Program effectiveness. The Program is in its second year of implementation with cumulative disbursements of $170.17 million out of total of $300 million (57%). The MTR found the project to be on track and no program changes are recommended. Some policy measures to increase issuance of work permits and allow the formalization of Syrian home-based businesses are being explored. Summary of Mid-Term Review Program Implementation The project and its components continue to be rated as "satisfactory". No changes to risk ratings have been identified and all other reporting areas (achievement of PDO, fiduciary and safeguards) are rated satisfactory. Disbursement Linked Indicators Improving Labor Market DLI#1: A number of positive policy changes have been made by the Government of Jordan in order to ease Syrian’s access to work permits. By June 7, 20,051 work permits were issued to Syrians, for an end of year target of 90,000. Work permits issuance has been somewhat slower than expected during the first semester of 2018. Only 4% of work permits are delivered to women, which reflects a low women labor force participation. DLI#2: This DLI has been achieved and is on good track to continue being achieved, every year. Improving Investment Climate DLI#3: The predictability framework (Code of Governance Practices of Policies and Legislative Instruments in Government Departments) has been enacted in April 2018 and the new indicator measuring its impact defined in June 2018. The new improved legal framework for home-based businesses (HBBs) has been issued in October 2017. By March 31, 2018 there were 223 registered HBBs (200 in Greater Amman Municipality and 23 elsewhere), among which 42 women-owned HBBs but no Syrian-owned HBBs. DLI#4: The Jordan Customs Department (JCD) has achieved its target for 2017 by adding 25 firms to the new Customs Golden list. By May 31, 2018, 58 firms were added to the new Golden list. JCD is working on improving the criteria and the benefits for firms with the support of the World Bank. Improving Investment Promotion: DLI#5: Jordan Investment Commission (JIC) has been active and has facilitated 75 investments, by May 31, 2018. The customer Relationship Management (CRM) system is being put in place and the investors guide are online. Emerging lessons and Recommendations to improve the program performance The program implementation is progressing well on the investment climate, trade facilitation and investment promotion fronts. However, on the labor market and entrepreneurship fronts related to Syrians, more flexibility is required to provide more Syrians with work permits and entrepreneurship opportunities (which were commitments of the Jordan Compact of February 2016). 7/20/2018 Page 1 of 10 The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P159522 IBRD-86510 Effective USD 149.00 149.00 0.00 84.52 64.48 57% P159522 IDA-59090 Effective USD 100.00 100.00 0.00 56.72 43.28 57% P159522 TF-A3648 Effective USD 51.00 51.00 0.00 28.93 22.07 57% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Program Action Plan Action Description Put in place a PMU within MOPIC to monitor the implementation of the Compact and PforR. Responsibility Recurrent Frequency Due Date DLI# Status Client No 24-Oct-2016 Completed Comments Action Description Issue a Prime Minister decree appointing the AB as a third-party verifier. Responsibility Recurrent Frequency Due Date DLI# Status Client No 24-Oct-2016 Completed Comments Action Description Develop an Operations Manual for the PforR ‘Economic Opportunities for Jordanians and Syrian Refugees’. Responsibility Recurrent Frequency Due Date DLI# Status Client No 24-Feb-2017 Completed Comments Extend the period of free work permits and relaxed inspections targeting Syrian refugees for the next two years (target Action Description date: September 2016) Responsibility Recurrent Frequency Due Date DLI# Status 7/20/2018 Page 2 of 10 The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) Client No 09-Apr-2018 Completed The period of free work permits and relaxed inspections targeting Syrian refugees has been extended until December Comments 2018. Disseminate information regarding eligibility, administrative process, and service standards for obtaining work permits Action Description and Ministry of the Interior ID cards (target date: biannually starting September 2016) Responsibility Recurrent Frequency Due Date DLI# Status Client Yes SemiAnnual Completed Comments Monitor and report quarterly: the number of work permits applied for and the number issued, disaggregated by new, Action Description renewal work permits, change of employer , as well as by gender, sector/occupation, Governorate/camp and nationality. Responsibility Recurrent Frequency Due Date DLI# Status Client Yes Quarterly Completed The quarterly reports are providing these information- except for the number of work permits applied for, which is Comments currently facing IT technical limitations. Develop and implement a system that allows residents of refugee camps to enjoy mobility to search for and attend Action Description work and put in place an advisory committee including members from the World Bank, ILO, UNHCR, and the International NGO (INGO) forum. Responsibility Recurrent Frequency Due Date DLI# Status Client No 30-Dec-2016 Completed Comments Monitor and report quarterly the number of leave permits applied for, the number received, and the frequency of use, Action Description disaggregated by camp, gender, and age (quarterly, starting January 2017). Responsibility Recurrent Frequency Due Date DLI# Status Client Yes Quarterly Completed The quarterly reports are providing these information- except for the number of leave permits applied for, which is Comments currently facing IT technical limitations. Include refugees and economic migrants in the Department of Statistics Employment and Unemployment Surveys Action Description (quarterly, starting January 2017). 7/20/2018 Page 3 of 10 The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) Responsibility Recurrent Frequency Due Date DLI# Status Client Yes Quarterly Completed Comments Carry out an awareness-raising campaign regarding household enterprises to inform the public about the availability of Action Description this option and the reduced restrictions and incentives to foster the creation of such businesses. Responsibility Recurrent Frequency Due Date DLI# Status Client No 31-Dec-2020 In Progress Comments Instruct the JIC to recruit 26 high caliber staff with relaxed salary constraints as recently allowed by the Cabinet (target Action Description date: June 2017) Responsibility Recurrent Frequency Due Date DLI# Status Client No 30-Jun-2017 Completed Comments Publish and publicize an ‘investor’s guide’ for domestic and foreign investors with specific information for Syrian Action Description investors and other restricted nationalities. Responsibility Recurrent Frequency Due Date DLI# Status Client No 29-Dec-2017 Completed Comments Set up a Client Relationship Management (CRM) information technology (IT) system and database for investor Action Description targeting and aftercare at the JIC. Responsibility Recurrent Frequency Due Date DLI# Status Client No 31-Dec-2018 In Progress Comments Strengthen the MOL’s Inspectorate Unit’s capacity to identify, track, The Online Grievance Redress (GRM) IT Platform Action Description of the Ministry of Labor becomes live, operational and used by at least 5 staff of the Ministry of Labor (Target date: December 2017) Responsibility Recurrent Frequency Due Date DLI# Status 7/20/2018 Page 4 of 10 The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) Client No 29-Dec-2017 Completed Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies High High High Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Moderate Moderate Moderate Environment and Social Substantial Moderate Moderate Stakeholders High High High Other -- High High Overall High High High RiskComments Comments Other: International Community Support Results PDO Indicators by Objectives / Outcomes Improving Labor Market ►PDO Indicator 1: Number of work permits issued to Syrian refugees (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5,300.00 46,717.00 20,051.00 130,000.00 Date 08-Apr-2016 29-Dec-2017 07-Jun-2018 31-Dec-2019 7/20/2018 Page 5 of 10 The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) Improving Investment Climate ►PDO Indicator 2: Share of business owners who have accessed more predictable and simplified business regulation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.50 0.00 7.50 51.00 Date 08-Apr-2016 20-Dec-2017 31-May-2018 31-Dec-2020 Improving Investment Promotion ►PDO Indicator 3: Investment promotion agency capability score (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 3.70 3.90 5.00 Date 08-Apr-2016 20-Dec-2017 07-Jun-2018 31-Dec-2020 Intermediate Results Indicators by Results Areas Improving Labor Market ►IR Indicator 1: Annual public disclosure by Better Work Jordan of factory-level compliance with a list of at least 29 social and environmental-related items (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 08-Apr-2016 20-Dec-2017 07-Jun-2018 31-Dec-2020 Improving Investment Climate ►IR Indicator 2.1: Identification and adoption of a predictability process for issuance of business regulations following an inclusive public-private dialogue and a measurement system (including baseli (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 08-Apr-2016 20-Dec-2017 31-May-2018 29-Dec-2017 ►IR Indicator 2.2: Share of business regulations mandatory to the private sector issued following the adopted predictability process (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 7/20/2018 Page 6 of 10 The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) Date 08-Apr-2016 20-Dec-2017 31-May-2018 31-Dec-2020 ►IR Indicator 2.3: Number of officially established household enterprises (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 223.00 1,000.00 Date 08-Apr-2016 20-Dec-2017 31-May-2018 31-Dec-2019 of which 100 Syrian owned home based businesses (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 08-Apr-2016 20-Dec-2017 31-May-2018 31-Dec-2019 of which 100 women owned home based businesses (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 42.00 100.00 Date 08-Apr-2016 20-Dec-2017 31-May-2018 31-Dec-2019 ►IR Indicator 2.4: Identification of one key business regulatory reform following an inclusive public-private dialogue and a measurement system (including baseline identification) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 08-Apr-2016 20-Dec-2017 31-May-2018 31-Dec-2018 ►IR Indicator 2.5: Reduction of regulatory burden for the private sector following the implementation of the business regulatory reform (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 08-Apr-2016 20-Dec-2017 29-Jun-2018 31-Dec-2020 ►IR Indicator 2.6: Increase in the number of enterprises in the Customs Golden List (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 58.00 300.00 Date 08-Apr-2016 20-Dec-2017 31-May-2018 31-Dec-2020 Improving Investment Promotion 7/20/2018 Page 7 of 10 The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) ►IR Indicator 3.1 Number of investments benefitting from investment facilitation by the JIC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 36.00 75.00 530.00 Date 08-Apr-2016 20-Dec-2017 31-May-2018 31-Dec-2020 Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1: Number of work permits issued to Syrian refugees (Output, 150.00, 0%) All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Value 5,300.00 46,717.00 20,051.00 130000.00 Date 08-Apr-2016 29-Dec-2017 07-Jun-2018 -- Comments ►DLI 2: Annual public disclosure by Better Work Jordan of report on factory-level compliance with a list of at least 29 social and environmental-related items (Process, 20.00, 0%) All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Value N Y Y Y Date 08-Apr-2016 19-Dec-2017 31-May-2018 -- Comments ►DLI 3: Establishment and implementation of selected simplified and predictable regulations for the private sector, including household businesses (Output, 70.00, 0%) All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Some reforms All reforms Value No reform implemented. No reform implemented. implemented. implemented. Date 08-Apr-2016 19-Dec-2017 29-Jun-2018 -- Comments DLI .1 DLR 3.1: A reform establishing a predictability process for issuance of business regulations has been identified and adopted following an inclusive public-private dialogue and a measurement system (in (Output, 15.00, 0%) 7/20/2018 Page 8 of 10 The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) Unit of Measure: Yes/No Indicator Type: All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Value N -- Y Y Date -- -- 29-Jun-2018 -- Comments DLI .2 DLR 3.2: One key business regulatory reform has been identified following an inclusive public-private dialogue, and a measurement system covering the time, cost, and complexity of the compliance proce (Output, 15.00, 0%) Unit of Measure: Yes/No Indicator Type: All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Value N -- N Y Date -- -- 29-Jun-2018 -- Comments DLI .3 DLR 3.3: 1000 officially established household enterprises, of which 100 are Syrian refugee owned and 100 female owned. (Output, 20.00, 0%) Unit of Measure: Number Indicator Type: All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Value 50.00 -- 223.00 1000.00 Date -- -- 31-May-2018 -- Comments DLI .4 DLR 3.4: 70 percent of business regulations mandatory to the private sector have been issued following the predictability process adopted under DLR 3.1. (Output, 10.00, 0%) Unit of Measure: Yes/No Indicator Type: All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Value N -- N Y 7/20/2018 Page 9 of 10 The World Bank Implementation Status & Results Report Economic Opportunities for Jordanians and Syrian Refugees P4R (P159522) Date -- -- 29-Jun-2018 -- Comments DLI .5 DLR 3.5: Regulatory burden on businesses has decreased by 30 percent following implementation of business regulatory reform adopted under DLR 3.2. (Output, 10.00, 0%) Unit of Measure: Yes/No Indicator Type: All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Value N -- N Y Date -- -- 29-Jun-2018 -- Comments ►DLI 4: Increase in number of enterprises on the Customs Golden List (Output, 20.00, 0%) All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 25.00 58.00 300.00 Date 08-Apr-2016 11-Dec-2017 31-May-2018 -- Comments ►DLI 5: Number of investments benefitting from investment facilitation by JIC (Output, 75.00, 0%) All DLIs achieved by December 31, Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 36.00 75.00 530.00 Date 08-Apr-2016 19-Dec-2017 31-May-2018 -- Comments 7/20/2018 Page 10 of 10