The World Bank Report No: ISR15605 Implementation Status & Results Afghanistan Financial Sector Rapid Response Project (P119047) Public Disclosure Copy Operation Name: Financial Sector Rapid Response Project (P119047) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 01-Nov-2014 Country: Afghanistan Approval FY: 2012 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): DA AFGHANISTAN BANK Key Dates Board Approval Date 25-Aug-2011 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 04-Oct-2014 Last Archived ISR Date 04-Jan-2014 Effectiveness Date 06-Sep-2011 Revised Closing Date 30-Jun-2016 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) To assist DAB to develop action plans for improved banking supervision and to establish key building blocks of financial sector infrastructure: payment system, movable collateral registry and public credit registry. Has the Project Development Objective been changed since Board Approval of the Project? ● Yes No Component(s) Component Name Component Cost Strengthening the DAB's capacity 8.00 Development of the financial sector infrastructure 13.20 Technical assistance and training for project implementation 3.00 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status Overview The project is implemented by the Central Bank of Afghanistan (Da Afghanistan Bank, DAB). The project supports (i) audits (financial, portfolio and institutional) of ten commercial banks operating in Afghanistan, (ii) modernization of the national payment system to facilitate payments within the country, which involves the establishment of a Real Time Gross Settlement (RTGS), Automated Clearing House (ACH) and Central Securities Depository (CSD), as one system, at DAB; a national card and mobile payment switch at Afghan Payment System (APS, a consortium of commercial banks); (iii) support to the development of the Afghanistan Institute of Banking and Finance; and (iv) technical assistance and training for project implementation. Page 1 of 5 The World Bank Report No: ISR15605 The audits of the ten commercial banks were completed in June 2012, and presentations on the findings of the audits were given in June and July 2012 to development partners. The contract for the card and mobile payment switch was signed in August 2013, and the establishment of the switch is underway at APS. The procurement of the RTGS/ACH/CSD is almost finalized (the contract is expected to be signed early October 2014). Public Disclosure Copy An additional financing to the project (US$6.7 million) was approved in November 2013. The additional financing will support selected technical assistance activities originally financed under the Financial Sector Strengthening Project (FSSP), which closes in June 2014. The Additional Financing covers two main activities: (i) targeted activities to strengthen DAB’s capacity (US$4.5 million) and (ii) establishment of Public Credit Registry (US$2.2 million). Locations Country First Administrative Division Location Planned Actual Afghanistan Kabul Kabul ✔ ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Actions plans developed, with initial Text Value No action plan Targeted TA on banking Action plans under implementation monitored,for the ten banks supervision pending implementation audited Date 01-Aug-2011 25-Jun-2014 30-Jun-2016 Comments Payment system conforms to international Text Value Not conform Not conform Conform norms Date 01-Aug-2011 25-Jun-2014 30-Jun-2016 Comments Contract for establishment of national mobile/card payment switch signed in August 2013. Procurement for the RTGS/ ACH/CSD underway Intermediate Results Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Audit reports completed highlighting strengths Text Value No audit Audits completed Audits completed and weaknesses of each bank reports to international standards Date 01-Aug-2011 25-Jun-2014 30-Jun-2016 Comments Page 2 of 5 The World Bank Report No: ISR15605 RTGS operational and transactions settled in Text Value No RTGS No RTGS RTGS operational real time by end of project Sub Type Date 01-Aug-2011 25-Jun-2014 30-Jun-2016 Breakdown Comments Procurement underway Public Disclosure Copy Number of commercial banks’ staff trained in Text Value 1017 3251 4500 AIBF reaches 4,500 by end of project Sub Type Date 01-Aug-2011 25-Jun-2014 30-Jun-2016 Breakdown Comments This figure includes commercial bank and MFI staff, (male 78% - female 22%). Effective Financial SupervisionDepartment Text Value Revised FSD Stock taking on capacity Continuous (FSD) organization with training processes in organization building efforts and results Implementation place toensure sustainable approved by initiated of capacitydevelopment DAB action plan Date 01-Nov-2013 01-Jul-2014 30-Jun-2016 Comments New indicator of additional financing Approval by DAB of financialsector regulations Text Value Afghanistan Stock taking initiated Key ensuring consistency with international financial regulations standards sector approved regulations not fully aligned with international standards Date 01-Nov-2013 01-Jul-2014 30-Jun-2016 Comments New indicator of additional financing Interbank payment Text Value T+1 for Kabul area and T+3 T+1 for Kabul area and T+3 Same day all over for other areas for other areas Afghanistan Date 01-Aug-2011 25-Jun-2014 30-Jun-2016 Public Disclosure Copy Comments Procurement underway Card payment system Text Value No interbank card system No interbank card system System operational Date 01-Aug-2011 25-Jun-2014 30-Jun-2016 Comments Contract for establishment of national mobile/card payment switch signed in August 2013. The work is progressing. Page 3 of 5 The World Bank Report No: ISR15605 Rating of national payment system Text Value Low: a, e, f; Med-low: d; n.a. Low: a, e, f; Med-low: d; n.a. Med-High: a, b, d, f; Med- b, c b, c Low: c, e Date 01-Aug-2011 25-Jun-2014 30-Jun-2016 Public Disclosure Copy Comments Contract for establishment of national mobile/card payment switch signed in August 2013. Procurement for the RTGS/ ACH/CSD underway Increase in the number of creditreports sent by Number Value 0.00 194.00 25000.00 the Public CreditRegistry to commercial banks Date 01-Nov-2013 30-Jun-2014 30-Jun-2016 Comments New indicator of additional 12,000 contracts registered financing Increase in the number of items of collateral Number Value 815.00 2920.00 2000.00 registered in the Collateral Registry Date 01-Nov-2013 01-Sep-2014 30-Jun-2016 Comments New indicator of additional financing Data on Financial Performance (as of 08-Oct-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P119047 IDA-H7320 Effective 25-Aug-2011 27-Aug-2011 06-Sep-2011 30-Jun-2014 30-Jun-2016 P119047 IDA-H8930 Effective 26-Nov-2013 10-Mar-2014 04-Jun-2014 30-Jun-2016 30-Jun-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P119047 IDA-H7320 Effective XDR 11.90 11.90 0.00 4.36 7.54 37.00 P119047 IDA-H8930 Effective XDR 4.40 4.40 0.00 0.00 4.40 0.00 Public Disclosure Copy Disbursement Graph Page 4 of 5 The World Bank Report No: ISR15605 Public Disclosure Copy Key Decisions Regarding Implementation Not applicable. Restructuring History There has been no restructuring to date. Related Projects P147624-Additional Financing to Financial Sector Rapid Response Project Public Disclosure Copy Page 5 of 5