The World Bank Report No: ISR14787 Implementation Status & Results Egypt, Arab Republic of Affordable Mortgage Finance DPL (P112346) Public Disclosure Copy Project Name: Affordable Mortgage Finance DPL (P112346) Program Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 28-May-2014 Country: Egypt, Arab Republic of Approval FY: 2010 Product Line: IBRD/IDA Region: MIDDLE EAST AND NORTH AFRICA Lending Instrument: Development Policy Lending Implementing Agency(ies): Guarantee and Subsidy Fund Key Dates Board Approval Date 24-Sep-2009 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date Last Archived ISR Date 09-Sep-2013 Effectiveness Date 27-Apr-2010 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) The main development objective of the DPL is to reform the current system of inefficient and poorly targeted supply-side subsidies for housing for the broad low and middle income sector and replace them with a transparent and economically efficient demand side subsidy system. Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status Overview The implementation of the operation has been smooth, especially with the commitment of the Guarantee and Subsidy Fund (GSF), which is implementing the Affordable Mortgage Finance Program. As a result there has been good progress in terms of delivery and targetingof housing subsidies. By June 2013, 8,430 mortgage linked subsidies had been Public Disclosure Copy disbursed, and the supply of new units in the affordable range is expected to pick up. The government will build 75,000 new units of 75 m² for a sales price of LE 100,000. The program targets low-income households, and is gender mainstreamed, as evident in the income level of the beneficiaries, which is well within the targeted range of LE 1,000 and LE 2,500; 48 percent have incomes lower than LE 1,500 and the median income of recipients is just over LE 1,500. More than 1,500 of the beneficiaries are female heads of household. The monitoring reports show that all current beneficiaries are located in the Cairo metropolitan area and all subsidies are for new housing. GSF and the Ministry of Housing and Urban Development are working towards a greater geographical diversification of the program, and have emphasized to the public that the program is applicable to existing and unfinished units as well as new ones. Results Results Indicators Page 1 of 5 The World Bank Report No: ISR14787 Indicator Name Core Unit of Measure Baseline Current End Target Number of GSF staff dedicated to the Text Value 12 90 mortgage subsidy program (staff) Date 24-Aug-2009 27-Jun-2013 31-Dec-2013 Public Disclosure Copy Comments Average turnaround time to process a Text Value 6 weeks 3 weeks mortgage subsidy application Date 24-Aug-2009 27-Jun-2013 31-Dec-2013 Comments Time to register a real estate title Text Value 3 months 1 month Date 24-Aug-2009 27-Jun-2013 31-Dec-2013 Comments Timely and accurate time-series data points to Text Value No data Revising the main revise the main parameters of the mortgage points parameters of the mortgage subsidies program subsidies program Date 24-Aug-2009 27-Jun-2013 31-Dec-2013 Comments Disbursement of subsidized loans per year-- Number Value 4000.00 12430.00 65000.00 minimum (number of subsidized loans) Date 24-Aug-2009 27-Jun-2013 31-Dec-2013 Comments The projected number of subsidies disbursed has not yet been reached due to individuals reluctance to buy with the current economicand political uncertainty, as well as the security situation that delayed the supply of houses. Number of banks participating in program Number Value 1.00 4.00 5.00 Date 24-Aug-2009 27-Jun-2013 31-Dec-2013 Comments Public Disclosure Copy Number of mortgage finance companies Number Value 2.00 5.00 6.00 participating in program Date 24-Aug-2009 27-Jun-2013 31-Dec-2013 Comments Submission of quarterly reports on process and Text Value Quarterly Reports Quarterly Reports program indicators Date 24-Aug-2009 27-Jun-2013 31-Dec-2013 Comments Page 2 of 5 The World Bank Report No: ISR14787 Improved housing sector information leading to Text Value Better Housing Market House-price index to urban house-price index for selected urban areas. Information areas Date 24-Aug-2009 27-Jun-2013 31-Dec-2013 Public Disclosure Copy Comments Data on Financial Performance (as of 03-Dec-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P112346 IBRD-77470 Effective 24-Sep-2009 12-Dec-2009 27-Apr-2010 31-Dec-2013 31-Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112346 IBRD-77470 Effective USD 300.00 300.00 0.00 200.00 100.00 67.00 Tranches Tranche 1 Description The first tranche amounting to US$99.25 million was disbursed on June 7, 2010. Amount (USD) Expected Release Date Actual Release Date Status 99,250,000 01-Jun-2010 07-Jun-2010 Pending Released Tranche Condition Description Status If Not Met If Delayed Enactment of Joint Ministerial Decrees to establish the Housing Finance Subsidy Policy Met Committee and to determine the core featuresof the subsidy program Not Met Issuance of a Joint Ministerial Memo from the Minister of Investment and Minister of Met Housing Utilities and Urban Development, to separate functions and staff for subsidy and Not Met guarantee operations of GSF, shall have been submitted to the Prime Minister. Public Disclosure Copy Issuance of a Joint Ministerial Memo by the Minister of Investment and Minister of Housing, Met Utilities and Urban Development No. 1864 halting the property development role of GSF. Not Met Adoption by GSF#s Board and endorsement by the Minister of Investment of the Met operational manual for the Affordable Mortgage FinanceProgram Not Met Issuance of a Joint Ministerial Memo from the Minister of Investment and Minister of Met Housing, Utilities and Urban Development No. 1864 indicating that GSF is the Not Met implementing agency for the Affordable Mortgage Subsidy Program. Implementation of fast-track property registration for all mortgaged properties under the Met Affordable Mortgage Finance Program Not Met Page 3 of 5 The World Bank Report No: ISR14787 Introduction of measures to withdraw previously allocated but unutilized land for affordable Met housing. Not Met Establishment of a tracking system to eliminate double allocations to households between Met the proposed mortgage finance subsidy scheme and any other scheme. Public Disclosure Copy Not Met A draft amendment to Real Estate Finance Law 148 of 2001, adjusting the debt payment- Met to-income ratio from 25%to 33% has been submitted to the Cabinet of Ministers. Not Met A Prime Ministerial Decree No. 1864 adjusting the maximum income level for subsidy Met beneficiaries to LE 2,500 monthly income for households has been issued. Not Met An analysis of the housing demand studies of main urban areas and placing the data in the Met public domain has been completed. Not Met Enacting Article 6 of Building Law No. 119 for year 2008, creating an entity with the Met mandate of collecting housing market information Not Met Tranche 2 Description Second tranches will be disbursed following the fulfillment of policy actions implemented as per the loan agreement. Amount (USD) Expected Release Date Actual Release Date Status 100 01-Jun-2011 14-Jul-2011 Pending Released Tranche Condition Description Status If Not Met If Delayed Strengthening of the legal, regulatory and institutional framework for the Mortgage Finance Met Subsidies Program through determinationof the subsidy parameters in line with changes in Not Met macro-economic and housing sector changes. Development of an effective and efficient mortgage finance subsidy mechanism through Met establishment by MOI of on-site and off-site monitoring and evaluation systems. Not Met Improvement of the institutional framework to enhance transparency and targeting of Met housing subsidies through compilation of housing market information. Not Met Public Disclosure Copy Tranche 3 Description Third tranches will be disbursed following the fulfillment of policy actions implemented as per the loan agreement. Amount (USD) Expected Release Date Actual Release Date Status 100 30-Jun-2013 Pending Released Tranche Condition Description Status If Not Met If Delayed Strengthening of the legal, regulatory and institutional framework for the Mortgage Finance Met Subsidies Program by introduction of a mortgage insurance or guarantee function. Not Met Page 4 of 5 The World Bank Report No: ISR14787 Further development of an effective and efficient mortgage finance subsidy mechanism Met through taking into account the results of thefirst impact evaluation Not Met Improvement of the institutional framework to enhance transparency and targeting of Met housing subsidies through expansion of the housing market information database, by Public Disclosure Copy Not Met inclusion of a house price list by sector in main urban areas. Key Decisions Regarding Implementation Various developments have taken place in the implementation of the Affordable Mortgage Finance Program. Restructuring History There has been no restructuring to date. Related Operations There are no related projects. Public Disclosure Copy Page 5 of 5