Public Disclosure Copy The World Bank Implementation Status & Results Report Liberia MSME & Rural Finance post Ebola Reconstruction (P157797) Liberia MSME & Rural Finance post Ebola Reconstruction (P157797) AFRICA | Liberia | Finance, Competitiveness and Innovation Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 1 | ARCHIVED on 04-Oct-2018 | ISR29013 | Implementing Agencies: Ministry of Finance and Development Planning, Central Bank of Liberia Key Dates Key Project Dates Bank Approval Date:04-Apr-2016 Effectiveness Date:03-Aug-2016 Original Closing Date:30-Mar-2019 Revised Closing Date:30-Mar-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to support the development of a framework to provide MSMEs finance on sustainable terms, enhance the capacity of local private sector financial institutions to lend profitably to MSMEs and objectively measure outcomes. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  --  Moderately Satisfactory Overall Implementation Progress (IP)  --  Moderately Satisfactory Implementation Status and Key Decisions The objective of the MSME project is to support the development of a framework to provide MSMEs finance on sustainable terms, enhance the capacity of local private sector financial institutions to lend profitably to MSMEs and objectively measure outcomes. The project has successfully established a credit facility that on-lends to PFIs (selected based on due diligence) on a market basis. Moreover, the project demonstrates that financial institutions demand and can use market-based finance to on-lend to consumers. The project has disbursed 85% of the overall funding ($4.8 million), including $4 million to 3 commercial banks and 4 microfinance institutions for onlending to small businesses. 10/4/2018 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Liberia MSME & Rural Finance post Ebola Reconstruction (P157797) Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  --  Substantial Comments Risk to achieving the PDO is considered substantial as measured by the PDO indicators (but not in achieving the broad objectives as captured in the Project Status and Decisions section), while significant progress has been made towards achieving project development objectives from other another WB project. PDO indicators #1 (number of loans) has been achieved, in fact surpassing the goal. There will be greater clarity on PDO indicator # 3 (loan quality) with 2018 Q3 reports from PFIs to be received in October 2018. PDO# 4 (innovation in lending) will be achieved through planned TA activities on training MFIs and banks to design new products and services. PDO #4 indicator is also supported by complementary WB TA that is supporting the introduction of digital credit and which facilitated the introduction of the Agent Banking model. PDO indicator #5 (monitoring and evaluation) will be supported when the MoF support person is hired; although the impact of this may be limited given that the project closes in March 2019. One PDO indicator is unmeasurable (PDO #2 jobs created). Additionally, as previously noted in the Project Status and Decisions section “the PDO indicators do not accurately measure this impact [that of the project], as there are no indicators on the establishment of the financing model embodied in the project or the planned effort in a forthcoming TA to design a permanent financing facility to house project funds after project closure.”Risk to achieving the PDO is considered substantial as measured by the PDO indicators (but not in achieving the broad objectives as captured in the Project Status and Decisions section), while significant progress has been made towards achieving project development objectives from other another WB project. PDO indicators #1 (number of loans) has been achieved, in fact surpassing the goal. There will be greater clarity on PDO indicator # 3 (loan quality) with 2018 Q3 reports from PFIs to be received in October 2018. PDO# 4 (innovation in lending) will be achieved through planned TA activities on training MFIs and banks to design new products and services. PDO #4 indicator is also supported by complementary WB TA that is supporting the introduction of digital credit and which facilitated the introduction of the Agent Banking model. PDO indicator #5 (monitoring and evaluation) will be supported when the MoF support person is hired; although the impact of this may be limited given that the project closes in March 2019. One PDO indicator is unmeasurable (PDO #2 jobs created). Additionally, as previously noted in the Project Status and Decisions section “the PDO indicators do not accurately measure this impact [that of the project], as there are no indicators on the establishment of the financing model embodied in the project or the planned effort in a forthcoming TA to design a permanent financing facility to house project funds after project closure.” Results Project Development Objective Indicators PHINDPDOTBL Loans made or restructured (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 845.00 300.00 Date 07-Mar-2016 -- 30-Jun-2018 31-Mar-2019 10/4/2018 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Liberia MSME & Rural Finance post Ebola Reconstruction (P157797) Comments as of June 30, 2018, Microfinance institutions have approved 795 loans, and commercial banks have approved 50 loans PHINDPDOTBL Jobs created or sustained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1,000.00 Date 07-Mar-2016 -- 14-Sep-2018 31-Mar-2019 Comments Indicator has not been measured due to measurement challenges, and lack of attribution. It should be removed during restructuring. PHINDPDOTBL New Loan Quality (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 15.00 Date 07-Mar-2016 -- 29-Jun-2017 31-Mar-2019 Comments "Non-performing status for new loans financed under the project will be below 10 percent" Data is incomplete, as some institutions have not submitted reports. However, for those institutions that have reported data, the non- performing status is well under project target of below 10%. The next ISR will contain a full report on non-performing status of loans supported under the project. PHINDPDOTBL Innovation in Lending (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1.00 1.00 10/4/2018 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Liberia MSME & Rural Finance post Ebola Reconstruction (P157797) Date 07-Mar-2016 -- 14-Sep-2018 31-Mar-2019 Comments 1 . At least one MSME lending initiative will be developed which makes use of mobile money (or another technique or practice new to Liberia supported by this project) The project is collaborating with a parallel project on Financial Inclusion, which is supporting the roll-out of Agent Banking and mobile micro- credit. The objective is therefore on track to be achieved. PHINDPDOTBL Monitoring and Evaluation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1.00 Date 07-Mar-2016 -- 29-Jun-2017 31-Mar-2019 Comments "An objective evaluation of all directed credit operations since 2010 will be compiled, assessing key outcomes such as disbursement, recovery, Non-performing status, and, where possible, data such as jobs created and/or sustainability and gender breakdown" As of September 14, 2018, the activity supporting this PDO is still under procurement. Overall Comments Intermediate Results Indicators PHINDIRITBL Loan Applications Considered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 500.00 Date 07-Mar-2016 -- 29-Jun-2017 31-Mar-2019 Overall Comments 10/4/2018 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Liberia MSME & Rural Finance post Ebola Reconstruction (P157797) Data has not been collected to measure this objective. However, given that over 500 loans have been approved, the PDO indicator is considering to be achieved. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P157797 TF-A2356 Effective USD 4.80 4.80 0.00 4.10 0.70 85% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P157797 TF-A2356 Effective 04-Apr-2016 02-Jun-2016 03-Aug-2016 30-Mar-2019 30-Mar-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. 10/4/2018 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Liberia MSME & Rural Finance post Ebola Reconstruction (P157797) Related Project(s) There are no related projects. 10/4/2018 Page 6 of 6 Public Disclosure Copy