The World Bank Report No: ISR11705 Implementation Status & Results Nicaragua Micro, Small and Medium Enterprise Development (P109691) Public Disclosure Copy Operation Name: Micro, Small and Medium Enterprise Development (P109691) Project Stage: Implementation Seq.No: 13 Status: ARCHIVED Archive Date: 14-Sep-2013 Country: Nicaragua Approval FY: 2008 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 12-Jun-2008 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 13-Feb-2012 Last Archived ISR Date 10-Jul-2013 Effectiveness Date 16-Jun-2009 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 13-Feb-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to improve the competitiveness of micro, small, and medium enterprises (MSMEs) and the business climate that affects those firms. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Business Climate Improvement 4.90 Matching Grants for MSMEs 6.57 Increased Access to Financial Services for MSMEs 0.00 Institutional Development of MIFIC 1.96 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview This report fulfills the requirement of completing an ISR after a restructuring. Additionally, it summarizes the results of the June 2013 mission. The second amendment to the project’s legal agreement was approved by the Country Director on July 16, 2013 and counter-signed by the Client on July 30. The restructuring process took longer than expected in part due to its complexity and because the Client and the Bank agreed to incorporate an extension to the project's closing date to December 31, Page 1 of 7 The World Bank Report No: ISR11705 2014. The request letter for the extension was received on July 4, 2013. In addition to the closing date extension, the restructuring incorporates: (1) changes in the institutional arrangements of this project due to a government reorganization and (2) revisions to the project description. The institutional arrangements will allow the new Ministry of Family, Community, Cooperative, and Associative Economy (MEFC) to co-execute the Public Disclosure Copy project. The project description was revised to: (1) remove references to Component 3 (Increased Access to Financial Services for MSMEs), which was never launched; and (2) clarify the description of some activities in Component 1 (Support to the Business Climate). Among the clarifications to Component 1 were the inclusion of language related to supporting the National Metrology Laboratory. The project will not be supporting the construction of the laboratory since the second parcel of land designated for this activity is no longer available. The Government has agreed to finance the construction from its own resources and the project will still provide equipment for the Laboratory. A decision on the part of the Client and the Bank is needed on what the $1.2 million assigned to the construction will be used for. The project's indicators were also updated with this restructuring. This ISR includes the new indicators. During the June 2013 mission, the team found that the project continues to produce positive results. The pace of implementation in the matching grants activity continues to be satisfactory and the project is complying with the established deadlines for the third round. Results for the matching grants include increased sales, full-time employees, and the introduction of new products and processes for firms that received matching grants. Business climate activities are also mostly complying with the established timeframes. Results for the business climate activities are expected primarily in the last year of implementation. The mission team expressed concern that the transfer process of half the project to MEFC could hurt the pace of implementation. The PIU has identified the steps necessary to ensure a smooth transfer and it is expected that the team will physically move on August 19, 2013. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Decrease in time needed to start a business Days Value 39.00 39.00 30.00 Date 30-Jul-2013 16-Aug-2013 31-Dec-2014 Comments Previous information in prior Public Disclosure Copy ISRs, indicator was accidently removed and re-entered. Doing Business 2013 report. Client's internal measure for 2012 is 36 days. MSMEs receiving matching grants introduce Number Value 0.00 304.00 80.00 new products or processes Date 06-Oct-2009 16-Aug-2013 31-Dec-2014 Comments Previous information in prior Updated with last ISRs, indicator was accidently restructuring. removed and re-entered. Page 2 of 7 The World Bank Report No: ISR11705 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target 30 percent decrease in time needed to obtain a Days Value Public Disclosure Copy business license and construction permit. Date 16-Aug-2013 Comments See subindicators Revised indicator, see subindicators Business license: Alcaldia de Matagalpa Days Value 14.00 10.00 Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Construction Permit: Alcaldia de Matagalpa Days Value 5.00 3.00 Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Business License: Alcaldia Municipal de Days Value 3.00 2.00 Chinandega Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Construction Permit: Alcaldia de Chinandega Days Value 4.00 3.00 Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Business license: Alcaldia Municipal de Days Value 1.00 1.00 Granada Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be Public Disclosure Copy updated in next ISR. Project team collecting data. Construction Permit: Alcaldia Municipal de Days Value 3.00 2.00 Granada Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Business license: Alcaldia Municipal de Leon Days Value 2.00 1.00 Page 3 of 7 The World Bank Report No: ISR11705 Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project Public Disclosure Copy team collecting data. Construction Permit: Alcaldia Municipal de Days Value 12.00 8.00 Leon Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Business license: Alcaldia Municipal de Rivas Days Value 2.00 1.00 Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Business license: Alcaldia Municipal de Days Value 3.00 2.00 Masaya Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Construction Permit: Alcaldia Municipal de Days Value 5.00 3.00 Masaya Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Business license: Alcaldia Municipal de Days Value 10.00 7.00 Bluefields Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. Public Disclosure Copy Construction Permit: Alcaldia Municipal de Days Value 10.00 7.00 Bluefields Sub Type Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Will be updated in next ISR. Project team collecting data. 30 percent decrease in the time to obtain food Days Value and health permits Date Comments See subindicators Revised indicator, see subindicators Page 4 of 7 The World Bank Report No: ISR11705 Health permit Days Value 180.00 180.00 126.00 Sub Type Date 30-Jun-2011 16-Aug-2013 31-Dec-2014 Breakdown Comments Work is underway. Data will Public Disclosure Copy be added in next ISR. Food Permit Days Value 15.00 15.00 11.00 Sub Type Date 30-Jun-2011 16-Aug-2013 31-Dec-2014 Breakdown Comments Revised indicator. Work is underway. Data will be added in next ISR Number of firms served by Decentralized Number Value 600.00 32792.00 3400.00 Support Centers (CAMIPYMEs) Date 06-Oct-2009 23-Jan-2013 31-Dec-2013 Comments Of the CAMIPYMEs Cumulative number of firms Cumulative supported by the project. served from Client that includes repeat firms. Will also try to get results for total number of firms. Commerce code presented to National Text Value No revision of commerce Sent Assembly code. Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Comments New indicator. Process for revising code is underway. 10 month reduction in the time to obtain Months Value 18.00 8.00 trademark at RPI Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Comments Baseline date may need to be New indicator. Information to updated. be added in next ISR. 12 month reduction in the time to obtain patent Months Value 24.00 12.00 at RPI Date 10-Apr-2013 16-Aug-2013 31-Dec-2014 Comments Baseline date may need to be New indicator. Information to updated. be added in next ISR. Public Disclosure Copy At least 100 MSME understand and practice Number Value 0.00 100.00 health and safety measures at MITRAB Date 06-Oct-2009 31-Dec-2014 Comments New indicator. Information to be added in next ISR. Number of grants awarded (total) Number Value 0.00 405.00 600.00 Date 06-Oct-2009 16-Aug-2013 31-Dec-2014 Comments Previous information in prior Revised target ISRs, indicator was accidently removed and re-entered. Page 5 of 7 The World Bank Report No: ISR11705 Amount of grants awarded. Amount(USD) Value 0.00 241612069.00 5800.00 Date 06-Oct-2009 16-Aug-2013 31-Dec-2014 Comments Cumulative. Third round Public Disclosure Copy underway. Number of firms that implemented product or Number Value 0.00 120.00 process quality enhancement projects Date 06-Oct-2009 31-Dec-2014 Comments Indicator was accidently Revised target removed and re-entered. Information in next ISR. Number of firms that introduces new products Number Value 0.00 304.00 80.00 and/or processes Date 06-Oct-2009 16-Aug-2013 31-Dec-2014 Comments Previous information in prior ISRs, indicator was accidently removed and re-entered. Number of firms that increase sales Number Value 0.00 241.00 120.00 Date 06-Oct-2009 16-Aug-2013 31-Dec-2014 Comments New indicator. Staff trained in project management, planning Number Value 60.00 and monitoring Date 06-Oct-2009 16-Aug-2013 31-Dec-2014 Comments New indicator with restructuring. Information in next ISR. Adequate technical fiduciary staff in place, Yes/No Value No Yes Yes clean audits Date 16-Aug-2013 31-Dec-2014 Comments Operational and Procurement Plans presented Yes/No Value Yes Yes Yes at start of every year. Date 16-Aug-2013 31-Dec-2014 Comments Presented prior to project Public Disclosure Copy effectiveness. Data on Financial Performance (as of 29-Jul-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P109691 IDA-44680 Effective 12-Jun-2008 25-Jul-2008 16-Jun-2009 31-Dec-2013 31-Dec-2013 Disbursements (in Millions) Page 6 of 7 The World Bank Report No: ISR11705 Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P109691 IDA-44680 Effective XDR 12.30 8.86 3.44 3.97 4.88 45.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation A second amendment to the project’s legal agreement was approved by the Country Director on July 16, 2013 and counter-signed by the Client on July 30. The restructuring incorporates: (1) changes in the institutional arrangements of this project due to a government reorganization and (2) revisions to the project description. The institutional arrangements will allow the new Ministry of Family, Community, Cooperative, and Associative Economy (MEFC) to co-execute the project. The project description was revised to: (1) remove references to Component 3 (Increased Access to Financial Services for MSMEs), which was never launched; and (2) clarify the description of some activities in Component 1 (Support to the Business Climate). The restructuring also incorporates a one year extension of the closing date to December 2014. The extension is justified based on the following criteria: the development objective Public Disclosure Copy remains achievable, the performance of the recipient is satisfactory, and the Bank and recipient have agreed on actions that will be undertaken to complete the Project. Specifically, the extension will allow additional time to complete the matching grants activity and the Commerce Code revision, which are underway. Restructuring History Level two Approved on 21-Jul-2011, Level two Approved on 16-Jul-2013 Related Projects There are no related projects. Page 7 of 7