The World Bank Report No: ISR14959 Implementation Status & Results Tanzania Tanzania - Housing Finance Project (P117242) Public Disclosure Copy Operation Name: Tanzania - Housing Finance Project (P117242) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 02-Jul-2014 Country: Tanzania Approval FY: 2010 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): BANK OF TANZANIA Key Dates Board Approval Date 09-Mar-2010 Original Closing Date 31-Dec-2015 Planned Mid Term Review Date 18-Mar-2013 Last Archived ISR Date 06-Dec-2013 Effectiveness Date 21-Jan-2011 Revised Closing Date 31-Mar-2015 Actual Mid Term Review Date 18-Mar-2014 Project Development Objectives Project Development Objective (from Project Appraisal Document) To develop the housing mortgage finance market through the provision of medium and long-term liquidity to mortgage lenders. Has the Project Development Objective been changed since Board Approval of the Project? ● Yes No Component(s) Component Name Component Cost Development of the Mortgage Market 33.00 Development of Housing Microfinance 5.00 Expansion of Affordable Housing Supply 2.00 Overall Ratings Previous Rating Current Rating Moderately Satisfactory Moderately Satisfactory Public Disclosure Copy Progress towards achievement of PDO Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Low Implementation Status Overview The Project was approved by the Bank on March 9, 2010 and it became effective on January 21, 2011. The original closing date was December 31, 2015 and revised to March 31, 2015. Out of the original credit of US$40.0 million, disbursements stand at US$25.4 million. In its more than three years of implementation, the project has made significant improvement since the March 2013 project restructuring. This was followed by a Mid-Term Review (MTR) for Housing Finance Project (HFP) from March 17 – 24, March 31 – April 2, 2014. The objectives of the mission were (i) to conduct a thorough review of the progress of the Project implementation including the progress towards Project Development Objective (PDO) and Implementation Progress (IP), (iii) to follow up issues identified during the last Page 1 of 4 The World Bank Report No: ISR14959 Implementation Support Mission in October 2013 and (iv) to discuss a way forward on project implementation and the development of the housing finance market and relevant issues in Tanzania. Total disbursements have reached 65%, as Primary Mortgage Lenders (PMLs) have started to tap the pre-finance window and, to a lesser extent, the re-finance window of the Public Disclosure Copy Tanzania Mortgage Refinance Company (TMRC). The ratings for progress towards PDO as well as implementation progress (IP) remain Moderately Satisfactory. Although implementation progress of Component I, the main component of the project, has been significantly improved and Component II (Development of Housing Microfinance) was still not effective at the time of MTR. Locations Country First Administrative Division Location Planned Actual Tanzania Dar es Salaam Region Dar es Salaam Region Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target A - Total number of housing finance loans Number Value 0.00 636.00 600.00 provided: A1. Refinanced Housing Mortgage Date 31-Mar-2010 31-Mar-2014 09-Mar-2015 Loans Comments A - Total number of housing loans provided A2. Text Value 0 250 Prefinanced Housing Mortgage Loans Sub Type Supplemental A - Total number of housing finance loans Number Value 462.00 1091.00 2000.00 provided: A2. Housing Microfinance Loans Date 31-Mar-2010 31-Mar-2014 31-Mar-2015 Comments B - Mortgage debt outstanding/GDP Percentage Value 0.45 0.36 0.45 Date 09-Mar-2010 31-Mar-2014 31-Mar-2015 Comments Public Disclosure Copy C - Mortgage interest rate (%) Percentage Value 18.00 18.00 15.00 Date 31-Mar-2010 31-Mar-2014 31-Mar-2015 Comments Intermediate Results Indicators Page 2 of 4 The World Bank Report No: ISR14959 Indicator Name Core Unit of Measure Baseline Current End Target 1a - Number of financial institutions refinanced Number Value 0.00 1.00 7.00 by TMRC Date 31-Mar-2010 31-Mar-2014 31-Mar-2015 Public Disclosure Copy Comments Number of financial institutions pre-financed by Text Value 0 5 6 TMRC Sub Type Supplemental 1b # Outstanding volume of loans refinanced Text Value 0 4.2 billion 25 billion by the TMRC (TZS) Date 31-Mar-2010 31-Mar-2014 31-Mar-2015 Comments 2a - Number of credit institution providing Number Value 4.00 7.00 8.00 housing microfinance loans Date 31-Mar-2010 31-Mar-2014 31-Mar-2015 Comments 2b # Volume of housing microfinance loans Text Value 354 million 398 million 1.5 billion outstanding (TZS) Date 09-Mar-2010 31-Mar-2014 31-Mar-2015 Comments 2c - Number of housing microfinance loans Number Value 0.00 0.00 1000.00 extended by HMFF Date 09-Mar-2010 31-Mar-2014 31-Mar-2015 Comments 3a - Number of new housing units approved for Number Value 3000.00 3600.00 5500.00 construction Date 31-Mar-2010 31-Mar-2014 31-Mar-2015 Comments Outstanding volume of loans pre-financed by Text Value 0 17.25 billion 15 billion the TMRC (TZS) Date 31-Mar-2010 31-Mar-2014 31-Mar-2015 Comments Public Disclosure Copy Data on Financial Performance (as of 24-Feb-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P117242 IDA-47120 Effective 09-Mar-2010 31-Mar-2010 21-Jan-2011 31-Dec-2015 31-Mar-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P117242 IDA-47120 Effective XDR 25.60 25.60 0.00 16.53 9.07 65.00 Page 3 of 4 The World Bank Report No: ISR14959 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Key findings as well as ratings were discussed at the wrap-up meeting held on March 24, 2014. The full Aide Memoire has been cleared by Sector Manager and is attached to this ISR. Restructuring History Level two Approved on 10-Feb-2013 Related Projects P151242-TZ Housing Mortgage Finance Additional Financing Public Disclosure Copy Page 4 of 4