Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) Inclusive Housing Finance Program (P150993) MIDDLE EAST AND NORTH AFRICA | Egypt, Arab Republic of | Finance & Markets Global Practice | IBRD/IDA | Program-for-Results | FY 2015 | Seq No: 4 | ARCHIVED on 11-Jul-2017 | ISR27805 | Implementing Agencies: Ministry of Housing, Utilities, and Urban Development, Social Housing Fund Program Development Objectives Program Development Objective (from Program-for-Results Appraisal Document) The objective of the Program is to improve the affordability of formal housing for low-income households in the Arab Republic of Egypt and to strengthen the Social Housing Fund's capacity to design policies and coordinate programs in the social housing sector. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions Several World Bank missions visited Egypt during the past 6 months (last ISR in January 2017) to follow up on the effectiveness of the program. Several steps have been taken in the past 6 months: • SHF proposed a new law for social housing to merge SHF and GSF. The Bank provided input to the new law and highlighted the opportunity to review the governance structure of SHF. • SHF has developed the rent component and called for application for 6,000 units for rental. • GSF has processed more than 60,000 application for mortgage. • SHF is currently processing the largest batch of application (375,000 applications) corresponding to the latest advertisement of new 500,000 social housing units. • SHF has modified the eligibility criteria of beneficiaries to increase age range and adjusting down payment deposits. • SHF and Ministry of housing reached an agreement with private sector developer to deliver social housing units in return for land for middle income housing. The agreement however limits the role of the private sector to being contractors and not developers. • The Bank organized a workshop titled " Private Sector Engagment in Affordable Housing" where various country experiences ( Mexico, Kenya, Easter European countries, Morocco, and Thailand) where presented • The Bank has called on the authorities to accelerate progress in implementation and advised to grant SHF management more autonomy to ensure smooth implementation of the project and the whole Egypt's Social Housing program; • Reaching a more comprehensive agreement with private sector developers to engage in social housing is key to the success of the operation. The Bank has organized a workshop for the authorities to showcase various country experience to facilitate reaching this agreement. Next steps: • The team will continue to regularly and proactively engage the relevant stakeholders and monitor particularly progress on i) SHF staffing and capacity/ institutional building, ii) GSF/SHF merger project, iii) operational activity (number of applications, amounts granted, etc…). • Supervision mission is tentatively scheduled October 1-15. Data on Financial Performance 7/11/2017 Public Disclosure Copy Page 1 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P150993 IBRD-84980 Effective USD 500.00 500.00 0.00 126.25 373.75 25% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P150993 IBRD-84980 Effective 05-May-2015 10-Jun-2015 11-Nov-2015 30-Jun-2020 -- Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  High  High Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  Substantial  Substantial Other  --  --  -- Overall  --  Substantial  Substantial Disbursement Linked Indicators (DLI) PHDLIPDOTBL  Establishment and operation of an internal audit function within SHF providing assurance service for the ownership and rental programs affiliated with the SHF (Yes/No) Baseline Actual (Previous) Actual (Current) Value N N Y Date 01-Apr-2014 09-Aug-2015 08-May-2017 Comments The DLI has been met and verified by the IVA report. However, the SHF has to further develop and staff the unit to perform efficiently. 7/11/2017 Public Disclosure Copy Page 2 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) PHDLIPDOTBL  Establishing a housing M&E system functioning and informing the Multi-Year Plan and Annual Targets (Yes/No) Baseline Actual (Previous) Actual (Current) Value N N Y Date 01-Apr-2014 09-Aug-2015 08-May-2017 Comments The DLI has been met and verified by the IVA report. The unit has to be staffed and organize the functions within the units to perform efficiently. PHDLIPDOTBL  Establishment and functioning of an accountability and transparency mechanism (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- Y Date 01-Apr-2014 -- 08-May-2017 Comments The DLI has been met and verified by the IVA report. The mechanism can be developed further. The unit is understaffed. PHDLIPDOTBL  Establishment by SHF of a functioning mechanism to monitor occupancy and vacancy of housing units by households receiving demand–side housing subsidy (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- Y Date 01-Apr-2014 -- 08-May-2017 Comments The DLI has been met and verified by the IVA report PHDLIPDOTBL  Number of households receiving demand-side homeownership subsidies for new housing units in each Fiscal Year during Program implementation under the AMP (Number (Thousand)) Baseline Actual (Previous) Actual (Current) Value 0.00 -- 60.00 Date 01-Apr-2014 -- 08-May-2017 Comments Number of household receiving subsidies reached 42,362 by June 2016 according to the IVA report. 7/11/2017 Public Disclosure Copy Page 3 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) PHDLIPDOTBL  Number of new households participating in rental subsidy programs in each Fiscal Year during Program implementation (Number (Thousand)) Baseline Actual (Previous) Actual (Current) Value 0.00 -- 1234.00 Date 01-Apr-2014 -- 08-May-2017 Comments SHF has finalized a rent module and offered 6,000 units for rent. Currently, beneficiaries are in the process of applying to these units. The process is expected to be finalized in the next couple of months. Total household benefited from rent subsides reached 1,234 by June 2016, according to the IVA report. This includes rent provided to emergency cases. PHDLIPDOTBL  Percentage of demand-side subsidies provided supporting the purchase or rental of housing units located within a commute of 60 minutes or less to an employment cente (Percentage) Baseline Actual (Previous) Actual (Current) Value 0.00 -- 100.00 Date 01-Apr-2014 -- 08-May-2017 Comments 100 % of beneficiaries resides in units in 60 minutes proximity of job markets, according to the IVA report. the Bank recommends that from now on various means of transportation to be used in measuring this DLI. PHDLIPDOTBL  Number of demand-side subsidies provided supporting the purchase or rental of housing units developed by private sector entities (Number (Thousand)) Baseline Actual (Previous) Actual (Current) Value 0.00 -- 1510.00 Date 01-Apr-2014 -- 08-May-2017 Comments There is ongoing discussions between the government and private sector developers to reach a model for engaging the private sector in social housing. Reaching an agreement that will be also satisfactory to the Bank will take some time. Total beneficiaries who resides in private sector developed units reached 1,510 by June 2016, according to the IVA report. Results Results Area 7/11/2017 Public Disclosure Copy Page 4 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) Intermediate Results Area Strengthening Governance and Institutional Set-up of Housing Sector Enhancing Transparency and Accountability of Social Housing Programs Improving Access to Affordable Housing Promoting Well Located Social Housing Promoting Private Sector Participation in Low-Income Housing Project Development Objective Indicators PHINDPDOTBL  Number of targeted households accessing ownership and rental housing units with support from the Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 60,000.00 60,000.00 830,000.00 Date 01-Apr-2015 27-Dec-2016 08-May-2017 30-Jun-2020 PHINDPDOTBL  female-headed households as a percentage of benefeciaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 24.00 PHINDPDOTBL  Percentage of Program beneficiaries in bottom 20% of the income distribution (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 01-Apr-2015 05-Dec-2016 05-Dec-2016 30-Jun-2020 PHINDPDOTBL  Percentage of income spent on housing costs by Program beneficiaries (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 7/11/2017 Public Disclosure Copy Page 5 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) Date 01-Apr-2015 05-Dec-2016 05-Dec-2016 30-Jun-2020 PHINDPDOTBL  Establishment of a housing M&E system functioning and informing the Multi-Year Plan and Annual Targets (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Apr-2015 27-Dec-2016 08-May-2017 30-Jun-2016 Overall Comments Intermediate Results Indicators PHINDIRITBL  Completed executive by-laws, organizational structure, financing model, fiduciary arrangements, operating systems for the SHF (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 31-Dec-2016 PHINDIRITBL  SHF fully staffed as per organizational plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 31-Dec-2017 PHINDIRITBL  Internal audit function providing assurance services for the ownership and rental programs affiliated with the SHF established and operating (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 7/11/2017 Public Disclosure Copy Page 6 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) Value N N Y Y Date 10-Aug-2015 27-Dec-2016 08-May-2017 31-Dec-2016 PHINDIRITBL  Adequate staffing of social officers as per organizational plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 31-Dec-2017 PHINDIRITBL  Number of capacity building and training workshops conducted for the hired social workers at the Central and Governorate level. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 27.00 Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 31-Dec-2020 PHINDIRITBL  Mechanism to monitor occupancy of housing post-subsidy established and functioning as per DLI definition (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 31-Dec-2017 PHINDIRITBL  Percentage of rental housing units occupied by targeted beneficiaries at least 1 year after lease (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 31-Dec-2018 PHINDIRITBL  Percentage of housing units occupied by low-income residents after at least 1 year (AMP) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 85.00 7/11/2017 Public Disclosure Copy Page 7 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 31-Dec-2020 PHINDIRITBL  Establish a unified social programs and beneficiary databases (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 31-Dec-2017 PHINDIRITBL  Establish an accountability and transparency mechanism established and functioning as per DLI definition (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 31-Dec-2016 PHINDIRITBL  Average time required to resolve complaints in AMP (days) (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 60.00 30.00 30.00 20.00 Date 10-Aug-2015 27-Dec-2016 08-May-2017 31-Dec-2020 PHINDIRITBL  Percentage of resolved complaints received by SHF and Governorate housing offices (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 90.00 Date 10-Aug-2015 27-Dec-2016 08-May-2017 31-Dec-2020 PHINDIRITBL  Annual published reports on complaints and how issues were resolved, including resolution rates (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 10-Aug-2015 27-Dec-2016 08-May-2017 31-Dec-2017 7/11/2017 Public Disclosure Copy Page 8 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) PHINDIRITBL  Number of households receiving demand side housing subsidies (AMP) for new units (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 60,000.00 60,000.00 725,000.00 Date 10-Aug-2015 27-Dec-2016 08-May-2017 30-Jun-2020 PHINDIRITBL  Number of households participating in rental subsidy programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,234.00 105,000.00 Date 10-Aug-2015 27-Dec-2016 08-May-2017 30-Jun-2020 PHINDIRITBL  Number of previously vacant units occupied 1 year after inclusion into the Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30,000.00 Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 30-Jun-2020 PHINDIRITBL  Percent of demand-side subsidies supporting the purchase or rental of housing units within a 60 minute travel time to an employment center (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 50.00 Date 10-Aug-2015 27-Dec-2016 08-May-2017 30-Jun-2020 PHINDIRITBL  Percent of demand-side subsidies supporting the purchase or rental of housing units within a 45 minute travel time to an employment center (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 100.00 50.00 Date 10-Aug-2015 27-Dec-2016 08-May-2017 30-Jun-2020 7/11/2017 Public Disclosure Copy Page 9 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Inclusive Housing Finance Program (P150993) PHINDIRITBL  Percent of demand-side subsidies supporting the purchase or rental of housing units within a 30 minute travel time to an employment center (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 100.00 15.00 Date 10-Aug-2015 27-Dec-2016 08-May-2017 30-Jun-2020 PHINDIRITBL  Percentage of land made available for SHF developments that complies with location and service criteria stated in Law (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 10-Aug-2015 27-Dec-2016 27-Dec-2016 30-Jun-2020 PHINDIRITBL  Number of demand-side subsidies supporting the purchase or rental of housing units developed by the private sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,510.00 250,000.00 Date 10-Aug-2015 27-Dec-2016 08-May-2017 31-Dec-2020 PHINDIRITBL  PPP guidelines publically disseminated (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 10-Aug-2015 27-Dec-2016 08-May-2017 30-Jun-2016 Overall Comments 7/11/2017 Public Disclosure Copy Page 10 of 10