The World Bank Report No: ISR15710 Implementation Status & Results Bangladesh Investment Promotion and Financing Facility (P089382) Public Disclosure Copy Operation Name: Investment Promotion and Financing Facility (P089382) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 29-Aug-2014 Country: Bangladesh Approval FY: 2006 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): Bank of Bangladesh Key Dates Board Approval Date 02-May-2006 Original Closing Date 31-Dec-2011 Planned Mid Term Review Date 10-Nov-2013 Last Archived ISR Date 23-Jan-2014 Effectiveness Date 24-Aug-2006 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date 09-Dec-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) To accelerate private sector-led growth through providing term finance for infrastructure development and promoting domestic infrastructure finance capacity. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Lending Instrument 294.50 Technical Assistance Component 12.50 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Moderately Unsatisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Overall Risk Rating Substantial Substantial Implementation Status Overview Government of Bangladesh (GoB) has been implementing IDA supported Bangladesh Investment Promotion and Financing Facility (IPFF) Project since August 2006. The objective of IPFF is to promote private sector participation in infrastructure and to bridge the gap for long-term financing required for infrastructure development in the country. As of now 17 participating financial institutions (PFIs) are listed under the Project, based on eligibility criteria, to receive financing at market-based indices. Following success of the initial $50 million of project allocation (approximately 5% electricity generation capacity was added to the national grid through 7 small power plants across the country) and given the large infrastructure gap in the country, IPFF was scaled up in 2010 via additional financing (AF). The scaled up IPFF has $294.5 million in the on-lending component to finance infrastructure and $12.5 million in the technical assistance component to support PPP Office and upstream project development activities. Following the latest project restructure in April 2014, the Project parameters have been adjusted in many ways to cater to the changed market demand and to provide more investor friendly options for a market based rate. Page 1 of 4 The World Bank Report No: ISR15710 After a prolonged period of slow movement, IPFF AF phase has made significant progress in the FY 14. The project has achieved its yearly disbursement target for the on-lending component for $46 million. Public Disclosure Copy Apart from the sub-projects currently being reviewed, IPFF has developed a robust pipeline of other sub-projects in diverse sectors, which are at different stages of preparation/ implementation. Following due diligence review, disbursements against these sub-projects are expected to be made throughout the FY 15. Given the turnaround in Project performance and progress in implementation the Project rating has been upgraded from ‘Moderately Unsatisfactory’ to ‘Moderately Satisfactory’. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Total investments in infrastructure increase (as Amount(USD) Value 0.00 262000000.00 490000000.00 measured by the total amount of equity and Date 03-Apr-2006 01-Jul-2014 31-Dec-2015 debt financing from IPFF, GOB and the Comments Exceeded the target of $210 financial institutions) million till June 30, Fy 14. Total amount of equity and debt financing from Amount(USD) Value 0.00 182000000.00 352000000.00 IPFF, GoB, and local financial institutions Sub Type Date 03-Apr-2006 01-Jul-2014 31-Dec-2015 Breakdown Comments New indicator, to measure Exceeded the target of $151 debt portion from the total. million till June 30, Fy 14. Introduced since third restructuring in April 2014. Total amount of equity from the private sector Amount(USD) Value 0.00 80000000.00 138000000.00 entrepreneurs on the transactions supported by Sub Type Date 03-Apr-2006 01-Jul-2014 31-Dec-2015 IPFF Breakdown Comments New indicator, to measure Exceeded the target of $59 debt portion from the total. million till June 30, Fy 14. Introduced since third Public Disclosure Copy restructuring in April 2014. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Long term debt financing for infrastructure Amount(USD) Value 62000000.00 129000000.00 294500000.00 increases (as measured by cumulative debt Date 13-Jun-2012 01-Jul-2014 31-Dec-2015 financing from IPFF) Comments Exceeded the target of $125 million till June 30, Fy 14. Page 2 of 4 The World Bank Report No: ISR15710 Number of financial institutions using the IPFF Text Value 0 13 10 (cumulative figure). Date 03-Apr-2006 01-Jul-2014 31-Dec-2015 Comments Already exceeded Project end Public Disclosure Copy target. Percentage of PFIs maintaining Bangladesh Text Value 0 100% 100% Bank eligibility criteria Date 03-Apr-2006 01-Jul-2014 31-Dec-2015 Comments Percentage of financed infrastructure projects Text Value 0 100% 100% using DOE environmental assessments Date 03-Apr-2006 01-Jul-2015 31-Dec-2015 Comments The project is positively impacting environmental practices in infrastructure development in the country Percentage of projects reviewed for project Text Value 0 100% 100% eligibility on behalf of Bangladesh Bank Date 03-Apr-2006 01-Jul-2014 31-Dec-2015 Comments Full compliance achieved. Number of PFI staff trained to undertake Text Value 0 124 180 financial analysis of infrastructure projects. Date 03-Apr-2006 01-Jul-2014 31-Dec-2015 Comments Expect to increase training output in the next period under review. The project results in 100 MW of additional Megawatt Value 0.00 228.00 278.00 electricity added to national capacity Date 03-Apr-2006 01-Jul-2014 31-Dec-2015 Comments Well on track to achieve the project end target. Data on Financial Performance (as of 16-Jul-2014) Financial Agreement(s) Key Dates Public Disclosure Copy Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P089382 IDA-41690 Closed 02-May-2006 01-Jun-2006 24-Aug-2006 31-Dec-2011 31-Dec-2011 P089382 IDA-46930 Effective 04-May-2010 07-Jun-2010 02-Sep-2010 31-Dec-2014 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P089382 IDA-41690 Closed XDR 34.90 34.28 0.62 34.28 0.00 100.00 P089382 IDA-46930 Effective XDR 167.70 167.70 0.00 49.37 118.33 29.00 Page 3 of 4 The World Bank Report No: ISR15710 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation 1. Following Mid-Term Review (MTR) in December 2013, the Project has been restructured for the third time, effective from April 2014. Main change is 50% single-sector exposure limit of the credit line has been lifted. 2. In order to measure the project results more effectively, the restructuring has also aligned the Project Development Objective (PDO) statement and PDO indicators. The current PDO indicator is, "total investments in infrastructure", which is disaggregated into two intermediate outcomes: a) "total amount of equity and debt financing from IPFF, GoB and the local financial institutions" (as a measure of the financial intermediation leveraged); b) "total amount of equity from the private sector entrepreneurs on the transactions supported by IPFF" (as a measure of the role of private sector entrepreneurs in the development of infrastructure). Restructuring History Public Disclosure Copy Level two Approved on 26-Sep-2012, Level 2 CD Decision on 29-May-2013, Level 2 CD Decision on 20-Feb-2014 Related Projects P117542-Investment Promotion and Financing Facility Page 4 of 4