The World Bank Report No: ISR15576 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: 15 Status: ARCHIVED Archive Date: 23-Jul-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 12-Apr-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 April 2014 mission and progress made thereafter. During the April 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: ISR15576 counterparts to produce implementation and disbursement plans which were included as annexes to the aide memoire. The project is close to complying with the timelines established in those plans. Approximately 83% of the loan has been disbursed, including almost US$2 million between April and June 2014. Of the project's two project development indicators, the target for one has been achieved and exceeded, while progress has been made on the other. Of the project's 28 intermediate Public Disclosure Copy indicators, including 15 subindicators, 9 have exceeded their targets and 3 have achieved their targets. Of the rest, most are on track to achieve their targets. Given that the project is in its last year of implementation, during the April mission, the Bank team presented to the counterparts the requirements and expectations related to evaluating the work and providing inputs to the Completion Report. 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 30-Jul-2013 31-Mar-2014 31-Dec-2014 Comments The DB team is evaluating the progress of this indicator. It is expected that this target will be achieved and exceeded. MSMEs receiving matching grants introduce Number Value 0.00 196.00 80.00 new products or processes Date 06-Oct-2009 30-Jun-2014 31-Dec-2014 Comments It is possible that this number Updated with last will change in the next ISR restructuring. because the Bank team is clarifying the definition of the indicator with the PIU, since some overlaps may exist with other indicators below. The Public Disclosure Copy team still expects the end target will be achieved. Intermediate Results Indicators 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 Comments See subindicators See subindicators Page 2 of 9 The World Bank Report No: ISR15576 Business license: Alcaldia de Matagalpa Days Value 14.00 1.00 10.00 Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Target achieved and Public Disclosure Copy exceeded. Construction Permit: Alcaldia de Matagalpa Days Value 5.00 5.00 3.00 Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Business License: Alcaldia Municipal de Days Value 3.00 1.00 2.00 Chinandega Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Target achieved and exceeded Construction Permit: Alcaldia de Chinandega Days Value 4.00 5.00 3.00 Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Collected data indicates an increase from 2008 baseline. This is in part 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 Business license: Alcaldia Municipal de Days Value 1.00 5.00 1.00 Granada Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Collected data indicates an increase from 2008 baseline. This is in part because full compliance with requirements was not occurring in 2008. Public Disclosure Copy Although the number of days increased, compliance has improved. A decrease is expected from this number by project-end. Construction Permit: Alcaldia Municipal de Days Value 3.00 7.00 2.00 Granada Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Collected data indicates an increase from 2008 baseline. This is because full Page 3 of 9 The World Bank Report No: ISR15576 compliance with requirements was not occurring in 2008. Although the number of days increased, compliance has Public Disclosure Copy improved. A decrease is expected from this number by project-end. Business license: Alcaldia Municipal de Leon Days Value 2.00 1.00 1.00 Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Construction Permit: Alcaldia Municipal de Days Value 12.00 5.00 8.00 Leon Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Target achieved and exceeded. Business license: Alcaldia Municipal de Rivas Days Value 2.00 1.00 1.00 Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Target achieved. Business license: Alcaldia Municipal de Days Value 3.00 6.00 2.00 Masaya Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Collected data indicates an 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. Construction Permit: Alcaldia Municipal de Days Value 5.00 30.00 3.00 Masaya Public Disclosure Copy Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Collected data indicates an 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 Page 4 of 9 The World Bank Report No: ISR15576 expected from this number by project-end. Business license: Alcaldia Municipal de Days Value 10.00 2.00 7.00 Bluefields Public Disclosure Copy Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Target achieved and exceeded. Construction Permit: Alcaldia Municipal de Days Value 10.00 5.00 7.00 Bluefields Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Target achieved and exceeded. Construction Permit: Alcaldia Municipal de Days Value 2.00 5.00 1.00 Rivas Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Collected data indicates an 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. Business license: Alcaldia Municipal de Puerto Days Value 9.00 5.00 6.00 Cabezas Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Target achieved and exceeded Construction Permit: Alcaldia Municipal de Days Value 10.00 7.00 7.00 Puerto Cabezas Sub Type Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Breakdown Comments Target achieved 30 percent decrease in the time to obtain food Days Value Public Disclosure Copy and health permits Date Comments See subindicators See subindicators Health permit Days Value 180.00 140.00 126.00 Sub Type Date 30-Jun-2011 31-Mar-2014 31-Dec-2014 Breakdown Comments Food Permit Days Value 15.00 10.00 11.00 Sub Type Date 30-Jun-2011 31-Mar-2014 31-Dec-2014 Page 5 of 9 The World Bank Report No: ISR15576 Breakdown Comments Target achieved and exceeded. Number of firms served by Decentralized Number Value 600.00 51318.00 3400.00 Public Disclosure Copy 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 31-Mar-2014 31-Dec-2014 Comments Book 1 of the Commerce code is under review by the Oversight Committee. 10 month reduction in the time to obtain Months Value 18.00 4.00 8.00 trademark at RPI Date 10-Apr-2013 31-Mar-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 18.00 12.00 at RPI Date 10-Apr-2013 31-Mar-2014 31-Dec-2014 Comments Baseline date may need to be updated. At least 100 MSME understand and practice Number Value 0.00 279.00 100.00 health and safety measures at MITRAB Date 06-Oct-2009 31-Mar-2014 31-Dec-2014 Comments MITRAB is replicating this initiative with own resources. 150 new MSMEs will benefit from it. Number of grants awarded (total) Number Value 0.00 776.00 600.00 Date 06-Oct-2009 27-Jun-2014 31-Dec-2014 Public Disclosure Copy Comments Currently 822 grants have Revised target been awarded but contracts have been signed with 776 firms. Amount of grants awarded. Amount(USD) Value 0.00 4541804.00 5800000.00 Date 06-Oct-2009 27-Jun-2014 31-Dec-2014 Comments The indicator will not reach the target of US$5.8 million. This is because some funds Page 6 of 9 The World Bank Report No: ISR15576 were lost due to exchange rate differences and a small amount was transferred to support implementation of the Public Disclosure Copy grants with the project's extension. The project is expected to disburse approximately $5.6 million in grants. Number of firms that implemented product or Number Value 0.00 359.00 120.00 process quality enhancement projects Date 06-Oct-2009 27-Jun-2014 31-Dec-2014 Comments It is possible that this number will change in the next ISR because the Bank team is clarifying the definition of the indicator with the PIU, since some overlaps may exist with other indicators. The team still expects the end target will be achieved. Number of firms that introduces new products Number Value 0.00 196.00 80.00 and/or processes Date 06-Oct-2009 27-Jun-2014 31-Dec-2014 Comments It is possible that this number will change in the next ISR because the Bank team is clarifying the definition of the indicator with the PIU, since some overlaps may exist with other indicators. The team still expects the end target will be achieved. Number of firms that increase sales Number Value 0.00 282.00 120.00 Public Disclosure Copy Date 06-Oct-2009 27-Jun-2014 31-Dec-2014 Comments Target achieved and exceeded. Staff trained in project management, planning Number Value 60.00 60.00 and monitoring Date 06-Oct-2009 31-Mar-2014 31-Dec-2014 Comments Page 7 of 9 The World Bank Report No: ISR15576 Adequate technical fiduciary staff in place, Yes/No Value No Yes Yes clean audits Date 31-Mar-2014 31-Dec-2014 Comments Public Disclosure Copy 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 27-Jun-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 6.73 1.35 83.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Page 8 of 9 The World Bank Report No: ISR15576 Implementation and disbursement continue at a steady pace and are on-track to be complete prior to the project's close in December. The project is producing positive results as illustrated through the achievement of project indicators. The government and Bank teams are closely monitoring additional impacts that are not measured through the indicators as well. 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