Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) MSME Development Project for Inclusive Growth (P132314) MIDDLE EAST AND NORTH AFRICA | Jordan | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 10 | ARCHIVED on 26-Jun-2018 | ISR32992 | Implementing Agencies: Central Bank of Jordan, Government of Jordan Key Dates Key Project Dates Bank Approval Date:05-Mar-2013 Effectiveness Date:09-Jun-2013 Planned Mid Term Review Date:15-Jun-2014 Actual Mid-Term Review Date:15-Jun-2014 Original Closing Date:31-Dec-2015 Revised Closing Date:31-Dec-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to contribute to the improvement of access to finance for micro, small and medium enterprises in the Hashemite Kingdom of Jordan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Line of Credit to MSMEs:(Cost $70.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Low  Low Implementation Status and Key Decisions 6/26/2018 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) The MSME Development for Inclusive Growth Project-Additional Financing –AF- (US$ 50 million): • The line of credit was fully disbursed to nine participating financial intermediaries (PFIs); namely, Cairo Amman Bank, Jordan Kuwait Bank, Blom Bank, Arab Bank, Ahli Bank, Capital Bank, Housing Bank for Trade and Finance, Arab International Islamic Bank and the Jordan Islamic Bank. • 80 percent of this amount (US$ 40.1 million) has been on-lent to 2,180 project beneficiaries (MSMEs). • The Project is achieving effective targeting of women (74 percent of project beneficiaries) and youth [1] (45 percent of project beneficiaries). • The Project increased its geographical outreach as 61 percent of the beneficiaries are in Governorates outside Amman. [1] youth is defined as those below the age of 35. Moreover, Recent data reported by participating banks to CBJ shows that the parent project has financed 9,250 MSME beneficiaries as of March 2018[1]. [1] An interim monitoring and evaluation of the MSME Development for Inclusive Growth Project- Parent project (US$ 70 million) project was conducted earlier by the World Bank team in collaboration with the CBJ, banks, and microfinance institutions (MFIs) to assess the impact of the Parent Line of credit (US$ 70 million). Overall, the parent project achieved its intended objective by creating 7,682 jobs, of which; 79 percent youth and 42 percent women. According to the project level results indicators, the parent project has financed 8,149 MSME beneficiaries, thus exceeding its end target by 4.5 times. Please refer to previous ISR for further details on main findings. 6/26/2018 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) 6/26/2018 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) 6/26/2018 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Low  Low 6/26/2018 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  Low  Low Overall  --  Low  Low Results Project Development Objective Indicators PHINDPDOTBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14,149.00 11,430.00 3,500.00 Date 31-Mar-2012 25-Oct-2017 31-Mar-2018 31-Dec-2020 Comments 9,250 MSME beneficiaries under the parent project and 2,180 MSME beneficiary under the Additional financing project. Figures were adjusted vis a vis previous ISR following a review conducted by CBJ with participating banks. PHINDPDOTBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 87.00 74.00 35.00 PHINDPDOTBL  Overall MSME portfolio of partcipating banks (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.00 9.00 9.00 10.00 Date 31-Mar-2012 25-Oct-2017 31-Mar-2018 31-Dec-2020 6/26/2018 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) PHINDPDOTBL  Portfolio at Risk - SME (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 4.90 2.00 4.00 Date 31-Mar-2012 25-Oct-2017 31-Mar-2018 31-Dec-2020 Comments Portfolio at risk for the participating banks under additional financing is 2% compared to 4.9% under parent project. PHINDPDOTBL  Number of jobs created by MSMEs Project Beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,682.00 7,682.00 5,500.00 Date 31-Mar-2012 31-Dec-2016 31-Dec-2016 31-Dec-2020 Comments The number of Jobs created are to be tracked during an impact evaluation to be conducted following Line of credit closure. Overall Comments Intermediate Results Indicators PHINDIRITBL  Volume of Lending to MSMEs under the Line of Credit (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 135.00 141.00 120.00 Date 31-Mar-2012 25-Oct-2017 31-Mar-2018 31-Dec-2020 6/26/2018 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) PHINDIRITBL  Number of banks engaged in MSME lending (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 9.00 12.00 Date 31-Mar-2012 25-Oct-2017 31-Mar-2018 31-Dec-2020 PHINDIRITBL  Number of MFIs engaged in micro enterprise lending under the line of credit (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 2.00 Date 31-Mar-2012 25-Oct-2017 31-Mar-2018 31-Dec-2020 PHINDIRITBL  Number of term loans to MSMEs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13,549.00 12,401.00 1,500.00 Date 31-Mar-2012 25-Oct-2017 31-Mar-2018 31-Dec-2020 Comments This includes both the additional financing and the parent project out of which the number of term loans to MSMEs under the additional financing is 1,759 PHINDIRITBL  Youth owned businesses as a percent of total businesses served by the line of credit (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 65.00 42.00 20.00 Date 31-Mar-2012 25-Oct-2017 31-Mar-2018 31-Dec-2020 6/26/2018 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) PHINDIRITBL  Enterprises in Governorates other than Amman as a percent of total businesses served by the line of credit (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 61.00 30.00 Date 31-Mar-2012 23-Mar-2015 31-Mar-2018 31-Dec-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P132314 IBRD-82320 Effective USD 70.00 70.00 0.00 70.00 0.00 100% P132314 IBRD-84970 Effective USD 50.00 50.00 0.00 50.00 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P132314 IBRD-82320 Effective 05-Mar-2013 12-Mar-2013 09-Jun-2013 31-Dec-2015 31-Dec-2020 P132314 IBRD-84970 Effective 10-Apr-2015 17-Apr-2015 15-Jul-2015 31-Dec-2020 31-Dec-2020 Cumulative Disbursements 6/26/2018 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MSME Development Project for Inclusive Growth (P132314) Restructuring History There has been no restructuring to date. Related Project(s) P153987-JO-MSME Development for Inclusive Growth 6/26/2018 Page 10 of 10 Public Disclosure Copy