The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) PNG - Small and Medium Enterprise Access to Finance Project (P120707) EAST ASIA AND PACIFIC | Papua New Guinea | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2011 | Seq No: 14 | ARCHIVED on 13-Dec-2018 | ISR34953 | Implementing Agencies: Department of Commerce and Industry, Bank of Papau New Guinea Key Dates Key Project Dates Bank Approval Date: 03-May-2011 Effectiveness Date: 15-Sep-2011 Planned Mid Term Review Date: 28-Feb-2014 Actual Mid-Term Review Date: 28-Oct-2013 Original Closing Date: 31-Dec-2024 Revised Closing Date: 31-Dec-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed development objective of this project is to facilitate access to sustainable credit for small and medium enterprises and thus contribute to incremental growth of SME employment and income. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Risk Share Facility:(Cost $11.90 M) Performance-based TA to participating financial intermediaries:(Cost $2.95 M) TA to enhance SME Capacity:(Cost $5.03 M) TA to the Department of Commerce and Industry:(Cost $6.62 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Project became effective on September 15, 2011. All conditions for withdrawal of IDA credit were met for all categories specified in the Financing Agreement as of March 12, 2012 with IDA issuing confirmation letters to the GoPNG. The 1st RSF with BSP has officially been terminated as of September 2017 with satisfactory results. Evaluation of the RSF with BSP is to be conducted in the next 6 months to summarize the key lessons learned. 2nd RSF implementation, which is linked to PDO results indicators, has been delayed with no 2nd FI confirmed. GoPNG and IDA agreed to cancel the 2nd RSF and replace it with a new financing program for SMEs and strengthening a sustainable ecosystem for SME Finance in PNG. GoPNG has shared the proposal for restructuring. World Bank mission team is in the field between Dec 2 and 15 to complete the detailed restructuring plan with the client. 12/13/2018 Page 1 of 6 The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) 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 -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Facilitate access to sustainable credit for SMEs IN00608327 ►Increase flow of credit to SMEs (in PNG Kina million) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 114.60 114.60 250.00 Date 01-Aug-2011 29-Sep-2017 12-Dec-2018 31-Dec-2024 The BSP reported amount has been in PGK million. Exchange rate: 1 USD = PGK 3.2 Total accumulative committed amount under the RSF reached PGK 114.6 million as of Sept 2017 (at closing of RSF). Comments: 2012 Total committed under RSF: PGK 7.7 million IN00608335 Loans to business owned by women only and women as principal partners (Number of loans) (Number, Custom Supplement) 12/13/2018 Page 2 of 6 The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 262.00 262.00 100.00 IN00608336 Loans to business owned by women only and women as principal partner (in PGK million) (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 25.00 25.00 15.00 IN00608328 ►Increase numbers of formal sector SMEs (incl. women managed) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 45.00 50.00 50.00 54.00 Date 01-Jan-2013 29-Dec-2017 12-Dec-2018 31-Dec-2024 IPA data doesn't provide SME registration directly. Estimate based on SME definition by DCI. IPA data as Comments: of Dec 2017. To be further verified during final beneficiary survey IN00608329 ►incremental employment generated by SMEs participating in RSF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 500.00 2,149.00 2,149.00 600.00 Date 28-Sep-2012 27-Sep-2016 12-Dec-2018 31-Dec-2024 IN00608330 ►Incremental SME revenue generated by SMEs participating in RSF (in PGK) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 -- 5.00 25.00 Date 28-Sep-2012 -- 12-Dec-2018 31-Dec-2024 No data available from BSP reports. To collect during beneficiary survey planned for Jan - May 2019 Comments: Overall Comments PDO There is no change of results from the last ISR. The results indicators will be updated during the project restructuring Intermediate Results Indicators by Components Risk Share Facility IN00608324 ►Return on assets (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/13/2018 Page 3 of 6 The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Value 1.50 2.00 2.00 1.50 Date 31-Aug-2011 29-Dec-2017 12-Dec-2018 31-Dec-2024 Source: BSP Annual Reports Comments: Performance-based TA to participating financial intermediaries IN00655182 ►New SME strategy and product developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New SME Strategy & Value Not developed -- No product developed Date 11-Dec-2018 -- 12-Dec-2018 31-Dec-2024 IN00655183 ►Automated loan origination platrom developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Automated loan Value Not developed -- Not developed origination platform developed Date 11-Dec-2018 -- 12-Dec-2018 31-Dec-2024 IN00655184 ►Environmental and Social Management Framework established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Environmental and Social Management Value Not established -- Not established Framework established Date 11-Dec-2018 -- 12-Dec-2018 31-Dec-2024 TA to enhance SME Capacity IN00608325 ►Improved SME managerial and financail skills - # trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 774.00 774.00 640.00 Date 31-Aug-2011 13-Dec-2016 12-Dec-2018 31-Dec-2024 Completed and met the targets Comments: IN00608331 Numbers of women in SMEs trained (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 391.00 391.00 300.00 IN00608332 % trainees obtaining the loans (Percentage, Custom Supplement) 12/13/2018 Page 4 of 6 The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 20.00 60.00 TA to the Department of Commerce and Industry IN00608326 ►Improved GoPNG capacity to supoport SME sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 2nd SME Survey, 2nd SME Survey, project project beneficiary beneficiary survey, and survey, and review of Final Survey and M&E Value Baseline survey review of RSF and other RSF and other SME Reports SME finance options finance options commissioned commissioned Date 28-Feb-2014 29-Jun-2018 12-Dec-2018 31-Dec-2024 2nd Baseline Survey is to be completed by Aug 2019 Comments: IN00608333 Training of provincial DCI officials (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 36.00 36.00 40.00 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120707 IDA-49280 Effective USD 21.91 21.91 0.00 12.37 7.81 61% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120707 IDA-49280 Effective 03-May-2011 14-Jun-2011 15-Sep-2011 31-Dec-2024 31-Dec-2024 Cumulative Disbursements 12/13/2018 Page 5 of 6 The World Bank Implementation Status & Results Report PNG - Small and Medium Enterprise Access to Finance Project (P120707) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/13/2018 Page 6 of 6