The World Bank Report No: ISR16062 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: 16 Status: ARCHIVED Archive Date: 09-Oct-2014 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 23-Jul-2014 Effectiveness Date 16-Jun-2009 Revised Closing Date 31-Dec-2014 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 3.90 Matching Grants for MSMEs 5.65 Increased Access to Financial Services for MSMEs 0.00 Institutional Development of MIFIC 1.90 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview This report summarizes the results of the July 2014 mission and progress made thereafter. During the July 2014 mission, the team reviewed the results and pace of implementation of the project. The team found that the project continues to produce positive results. The team spent much of the mission discussing plans to ensure implementation and disbursement are complete prior to the project's close in December 2014. The team worked with the Page 1 of 9 The World Bank Report No: ISR16062 counterparts to produce implementation and disbursement plans which were included as annexes to the aide memoire. The PIU also shared a timeline specifically for the commercial code work, which is the largest activity pending completion. Approximately 88% of the loan has been disbursed and approximately US$1.4 million remains to be disbursed. It is expected that these funds will be disbursed prior to the project's close. Public Disclosure Copy Of the project's two project development indicators, the target for one has been achieved and exceeded, while reforms have been implemented for the other and the result is expected to exceed the target. Of the project's 30 intermediate indicators, including 18 subindicators, 17 have exceeded their targets and 9 have achieved their targets. Of the rest, most are on track to achieve their targets. 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 36.00 30.00 Date 15-Oct-2009 31-Mar-2014 31-Dec-2014 Comments The DB team is evaluating the progress of this indicator. The reforms have been implemented and results have been registered. It isexpected that this target will be achieved and exceeded once the DB report is published. MSMEs receiving matching grants introduce Number Value 0.00 213.00 80.00 new products or processes Date 06-Oct-2009 01-Aug-2014 31-Dec-2014 Comments This reflects an update to the indicator's measure. Before, the indicator only measured number of firms that Public Disclosure Copy introduced new products. This updated number includes firms that introduced new processes that did not result in new products. Intermediate Results Indicators Page 2 of 9 The World Bank Report No: ISR16062 Indicator Name Core Unit of Measure Baseline Current End Target 30 percent decrease in time needed to obtain a Days Value business license and construction permit. Date 16-Aug-2013 Public Disclosure Copy Comments See subindicators See subindicators Business license: Alcaldia de Matagalpa Days Value 14.00 1.00 10.00 Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Target achieved and Report 2007. exceeded. Client measures this at 2 hours. Construction Permit: Alcaldia de Matagalpa Days Value 5.00 3.00 3.00 Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Target achieved. 3 days Report 2007. references the time needed for a license for "small works". The original Municipal Scorecard report also referred to "small constructions." Permits for large works take 5 days. Business License: Alcaldia Municipal de Days Value 3.00 1.00 2.00 Chinandega Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Client measures this at 2 Report 2007. hours. Construction Permit: Alcaldia de Chinandega Days Value 4.00 1.00 3.00 Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Target achieved and Report 2007. exceeded. 1 day references the time needed for a license for "small works". The original Municipal Scorecard report Public Disclosure Copy also referred to "small constructions." Permits for large works take 5 days. Business license: Alcaldia Municipal de Days Value 1.00 4.00 1.00 Granada Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Collected data indicates an Report 2007. increase from 2008 baseline. This is in part because full compliance with requirements Page 3 of 9 The World Bank Report No: ISR16062 was not occurring in 2008. Although the number of days increased, compliance has improved. A decrease is Public Disclosure Copy expected from this number by project-end. Construction Permit: Alcaldia Municipal de Days Value 3.00 3.00 2.00 Granada Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Collected data indicates an Report 2007. increase from 2008 baseline. This is because full compliance with requirements was not occurring in 2008. Although the number of days increased, compliance has improved. A decrease is expected from this number by project-end. The Client measures the time needed for small works as 1 day and 3 days for larger works. Business license: Alcaldia Municipal de Leon Days Value 2.00 1.00 1.00 Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Client measures time at 2 Report 2007. hours. Construction Permit: Alcaldia Municipal de Days Value 12.00 5.00 8.00 Leon Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Target achieved and Report 2007. exceeded. Business license: Alcaldia Municipal de Rivas Days Value 2.00 1.00 1.00 Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Public Disclosure Copy Breakdown Comments From Municipal Scorecard Target achieved. Client Report 2007. measures at 2 hours. Business license: Alcaldia Municipal de Days Value 3.00 2.00 2.00 Masaya Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Target achieved. Report 2007. Construction Permit: Alcaldia Municipal de Days Value 5.00 2.00 3.00 Masaya Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Page 4 of 9 The World Bank Report No: ISR16062 Breakdown Comments Target achieved and exceeded. 2 days references the time needed for a permit for "small works". The original Public Disclosure Copy Municipal Scorecard report also referred to "small constructions." Permits for large works take 5 days. Business license: Alcaldia Municipal de Days Value 10.00 2.00 7.00 Bluefields Sub Type Date 10-Apr-2009 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Target achieved and Report 2007. exceeded. Construction Permit: Alcaldia Municipal de Days Value 10.00 3.00 7.00 Bluefields Sub Type Date 10-Apr-2013 01-Aug-2014 31-Dec-2014 Breakdown Comments Target achieved and exceeded. Construction Permit: Alcaldia Municipal de Days Value 2.00 1.00 1.00 Rivas Sub Type Date 10-Apr-2013 01-Aug-2014 31-Dec-2014 Breakdown Comments Target achieved. 1 day references the time needed for a permit for "small works". The original Municipal Scorecard report also referred to "small constructions." Permits for large works take 5 days. Business license: Alcaldia Municipal de Puerto Days Value 9.00 3.00 6.00 Cabezas Sub Type Date 10-Apr-2013 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Target achieved and Report 2007. exceeded Public Disclosure Copy Construction Permit: Alcaldia Municipal de Days Value 10.00 3.00 7.00 Puerto Cabezas Sub Type Date 10-Apr-2013 01-Aug-2014 31-Dec-2014 Breakdown Comments From Municipal Scorecard Target achieved and Report 2007. exceeded 30 percent decrease in the time to obtain food Days Value and health permits Date Comments See subindicators See subindicators Health permit Days Value 180.00 78.00 126.00 Sub Type Date 30-Jun-2011 01-Aug-2014 31-Dec-2014 Page 5 of 9 The World Bank Report No: ISR16062 Breakdown Comments Target achieved and exceeded. 78 days refers to the time needed for labs to obtain permits. Other users, Public Disclosure Copy including importers, can obtain a license in 43 days. Food Permit Days Value 15.00 10.00 11.00 Sub Type Date 30-Jun-2011 01-Aug-2014 31-Dec-2014 Breakdown Comments Target achieved and exceeded. Number of firms served by Decentralized Number Value 600.00 51318.00 3400.00 Support Centers (CAMIPYMEs) Date 06-Oct-2009 31-Dec-2013 31-Dec-2013 Comments Of the CAMIPYMEs Cumulative number of firms Cumulative supported by the project. served from Client that includes repeat firms. Commerce code presented to National Text Value No revision of commerce Sent Assembly code. Date 10-Apr-2013 01-Aug-2014 31-Dec-2014 Comments Book 1 of the Commerce code has been updated. 10 month reduction in the time to obtain Months Value 18.00 4.00 8.00 trademark at RPI Date 10-Apr-2013 01-Aug-2014 31-Dec-2014 Comments Baseline date may need to be Target achieved and updated. exceeded. 12 month reduction in the time to obtain patent Months Value 24.00 12.00 12.00 at RPI Date 10-Apr-2013 01-Aug-2014 31-Dec-2014 Comments Baseline date may need to be Target achieved. updated. At least 100 MSME understand and practice Number Value 0.00 279.00 100.00 Public Disclosure Copy health and safety measures at MITRAB Date 06-Oct-2009 31-Mar-2014 31-Dec-2014 Comments Target achieved and exceeded. MITRAB has served an additional 150 firms with its own budget. Number of grants awarded (total) Number Value 0.00 856.00 600.00 Date 06-Oct-2009 01-Aug-2014 31-Dec-2014 Comments Grants signed and awarded. Amount of grants awarded. Amount(USD) Value 0.00 5420000.00 5800000.00 Page 6 of 9 The World Bank Report No: ISR16062 Date 06-Oct-2009 27-Jun-2014 31-Dec-2014 Comments The indicator will not reach the target of US$5.8 million. Public Disclosure Copy This is because some funds were lost due to exchange rate differences and a small amount was transferred to support implementation of the grants with the project's extension. The project is expected to disburse approximately $5.5 million in grants. Number of firms that implemented product or Number Value 0.00 356.00 120.00 process quality enhancement projects Date 06-Oct-2009 01-Aug-2014 31-Dec-2014 Comments After careful follow-up and analysis, the PIU reduced this number slightly for the first two rounds. Target achieved and exceeded. Number of firms that introduces new products Number Value 0.00 213.00 80.00 and/or processes Date 06-Oct-2009 01-Aug-2014 31-Dec-2014 Comments This reflects an update to the indicator's measure. Before, the indicator only measured number of firms that introduced new products. This updated number includes firms that introduced new processes that did not result in new products. Number of firms that increase sales Number Value 0.00 241.00 120.00 Public Disclosure Copy Date 06-Oct-2009 01-Aug-2014 31-Dec-2014 Comments After careful follow-up and analysis, the PIU reduced this number slightly for the first two rounds. Target achieved and exceeded. Staff trained in project management, planning Number Value 53.00 60.00 and monitoring Date 06-Oct-2009 01-Aug-2014 31-Dec-2014 Page 7 of 9 The World Bank Report No: ISR16062 Comments Previous ISR had incorrect numbers. Adequate technical fiduciary staff in place, Yes/No Value No Yes Yes Public Disclosure Copy clean audits Date 31-Mar-2014 31-Dec-2014 Comments Operational and Procurement Plans presented Yes/No Value Yes Yes Yes at start of every year. Date 31-Mar-2014 31-Dec-2014 Comments Presented prior to project effectiveness. Data on Financial Performance (as of 17-Sep-2014) 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-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P109691 IDA-44680 Effective XDR 12.30 8.08 4.22 7.49 0.59 93.00 Disbursement Graph Public Disclosure Copy Page 8 of 9 The World Bank Report No: ISR16062 Key Decisions Regarding Implementation There are no key decisions at this time. Public Disclosure Copy Restructuring History Level two Approved on 21-Jul-2011, Level two Approved on 16-Jul-2013, Level 2 CD Decision on 18-Feb-2014 Related Projects There are no related projects. Public Disclosure Copy Page 9 of 9