The World Bank Report No: ISR2412 Implementation Status & Results Madagascar Public Disclosure Copy ACGF - Madagascar Financial Services Project (P109607) Operation Name: ACGF - Madagascar Financial Services Project (P109607) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Last Modified Date: 08-Mar-2011 Country: Madagascar Approval FY: 2008 Product Line: Recipient Executed Activities Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): AGEPMF/PASEF, BCM/CSBF Key Dates Board Approval Date 05-Jun-2008 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date Last Archived ISR Date 03-Jun-2010 Effectiveness Date 28-Nov-2008 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall project development objective (PDO) is to increase access to sustainable financial services, particularly to micro, small and medium enterprises (MSMEs), and households in Madagascar. This will be achieved by providing technical assistance, capacity building, and matching grants to financial sector actors and stakeholders to ultimately improve competition, and diversification in the sector. The project supports implementation of the Government's financial sector strategy by addressing the obstacles to providing better access to formal financial services. These obstacles are related to financial sector infrastructure, quality of financial and credit information, and a conducive legal and regulatory environment. The project will support activities that will play a catalytic role in achieving the objective of increased access to financial services for firms and households in Madagascar. Support will focus on areas where the World Bank has a comparative advantage, i.e. technical assistance, and where there is a track record of successful interventions. Project support will be provided for two main technical components and one administrative component: (i) Creating an enabling environment for a sound and inclusive financial sector; (ii) Improving access to finance and the diversity of financial products; and (iii) Project implementation and monitoring & evaluation. The proposed outcome indicators for the PDO are: Public Disclosure Copy - Increased credit to micro, small and medium enterprises. - Increase number of accounts at licensed financial institutions (commercial banks and microfinance institutions). Has the Project Development Objective been changed since Board Approval of the Project? Yes No Page 1 of 12 The World Bank Report No: ISR2412 Component(s) Component Name Component Cost Public Disclosure Copy 1.1 Enabling Financial Sector Infrastructure and Legal Environment 1.00 1.2 Strengthening Supervision of the Financial Sector 1.00 2.1 Increasing Access to SME Finance 5.50 2.2 Increasing Access to Microfinance 3.50 2.3 Developing Financial Products and Instruments 1.30 3. Project Implementation, Monitoring and Implementation 1.50 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Unsatisfactory Overall Risk Rating Implementation Status Overview Official use only - Not for public disclosure Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Increase in credit to micro, small, and medium enterprises (MSMEs) by 37,000 No progress recorded due to no 55,000 participating Financial Institutions project activities yet. Date Date 31-Mar-2008 Date 31-Dec-2012 Public Disclosure Copy Type Unit of Measure Comment 31-Dec-2010 Comment Custom Indicator Text Comment The program has not yet started implementation due to lack of funds resulting to non adherence to IDA conditions of opening a special account Page 2 of 12 The World Bank Report No: ISR2412 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Number of accounts at licensed financial institutions (bank and MFI) 205,000 Partner financial institutions have 301,000 increases not been identified to allow for data Date Date collection to measure progress to 31-Mar-2008 date 31-Dec-2012 Type Unit of Measure Comment Date Comment Custom Indicator Text 31-Dec-2010 Comment Partner financial institutions have not been identified to allow for data collection to measure progress to date Indicator Baseline Current End Target Indicator Name Value Value Value Outstanding Microfinance Loan Portfolio 19679638.00 40000000.00 Date Date Date 30-Jun-2009 31-Dec-2009 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) No progress recorded due to no project activities yet. Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Public Disclosure Copy Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value Outstanding SME Loan Portfolio 55000.00 Date Date Date 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Page 3 of 12 The World Bank Report No: ISR2412 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value No of active loan accounts -Microfinance 47494.00 100000.00 Date Date Date 30-Jun-2009 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Number Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value % active loans to women - Microfinance 49.00 50.00 Public Disclosure Copy Date Date Date 30-Jun-2009 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Percentage PASEF Project implementation has not started to allow tracking of this indicator from banks and MFIs. However, the microfinance project has registered significant increase of women MFIs clients to about 50% of total beneficiaries by June 2010. Page 4 of 12 The World Bank Report No: ISR2412 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value No of active loan accounts -SME 0.00 10000.00 Date Date Date 31-Mar-2008 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Number Partner financial institutions have not been identified to allow for data collection to measure progress to date Indicator Baseline Current End Target Indicator Name Value Value Value Type Unit of Measure Sub-Type Custom Indicator Kilometers Supplemental Public Disclosure Copy Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Increase in depth of credit information index 1 No progress recorded due to no 4 Date project activities yet. Date 31-Mar-2008 Date 31-Dec-2012 Type Unit of Measure Comment Comment Custom Indicator Text Comment No progress recorded due to no project activities yet. Page 5 of 12 The World Bank Report No: ISR2412 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Increase in credit registry coverage 0.3% 3.0% Date Date Date 31-Mar-2008 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text No progress recorded due to no project activities yet. Indicator Baseline Current End Target Indicator Name Value Value Value Number of licensed financial institutions increases 26 No progress recorded due to no 30 Date project activities yet. Date 31-Mar-2008 Date 31-Dec-2012 Type Unit of Measure Comment Comment Custom Indicator Text Comment No progress recorded due to no project activities yet. Indicator Baseline Current End Target Indicator Name Value Value Value Number of days used to process license applications for financial 300 No progress recorded due to no 90 institutions decreases project activities yet. Date Date 31-Mar-2008 Date 31-Dec-2012 Type Unit of Measure Comment Comment Custom Indicator Text Comment No progress recorded due to no Public Disclosure Copy project activities yet. Indicator Baseline Current End Target Indicator Name Value Value Value Number of banks and NBFIs supervised annually (on-site) increases 4 12 Date Date Date 31-Mar-2008 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text No progress recorded due to no project activities yet. Page 6 of 12 The World Bank Report No: ISR2412 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Number of new SME loans approved by participating commercial 0 400 banks through the RSF increased Date Date Date 31-Mar-2008 31-Jan-2011 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text No progress recorded due to no project activities yet. Indicator Baseline Current End Target Indicator Name Value Value Value Number of SME recipients of BDS services increases 0 200 Date Date Date 31-Mar-2008 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text No progress recorded due to no project activities yet. Indicator Baseline Current End Target Indicator Name Value Value Value Number of MFIs in compliance with licensing requirements increases 0 5 Date Date Date 31-Mar-2008 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text No progress recorded due to no project activities yet. Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Number of financially self-sufficient MFIs increases 0 5 Date Date Date 31-Mar-2008 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text PASEF Project implementation has not started. Data available for self- sufficiency is only for microfinance institutions supported by the microfinance program (P052186) that was closed in December 2010. Page 7 of 12 The World Bank Report No: ISR2412 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Number of microfinance clients increases 600,000 PASEF Project implementation has 1,000,000 Date not started. However, the Date microfinance project has registered 31-Mar-2008 significant increase of MFIs 31-Dec-2012 Type Unit of Measure Comment clientsto more than 300000 by Comment Custom Indicator Text June 2010. Date 31-Dec-2010 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Percent of women clients at MFIs increases 30% PASEF Project implementation has 50% Date not started to allow tracking of this Date indicator from banks and MFIs. 31-Mar-2008 However, the microfinance project 31-Dec-2012 Type Unit of Measure Comment has registered significant increase Comment Custom Indicator Text of women MFIs clients to about 50% of total beneficiaries by June 2010. Date 31-Dec-2010 Comment No progress recorded due to no project activities yet. Public Disclosure Copy Indicator Baseline Current End Target Indicator Name Value Value Value Volume of Bank Support: Institutional Development - Microfinance 0.00 3500000.00 Date Date Date 31-Mar-2008 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Disbursements have been delayed due to program management issues. Page 8 of 12 The World Bank Report No: ISR2412 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Volume of Bank Support: Institutional Development - SME 0.00 5500000.00 Date Date Date 31-Mar-2008 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Disbursements have been delayed due to program management issues. Indicator Baseline Current End Target Indicator Name Value Value Value Volume of Bank Support: Enabling Environment - SME 0.00 Date Date Date 31-Mar-2008 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Disbursements have been delayed due to program management issues. Indicator Baseline Current End Target Indicator Name Value Value Value Portfolio at Risk - Microfinance 8.60 5.00 Date Date Date 30-Jun-2009 31-Jan-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Percentage PASEF Project implementation has Public Disclosure Copy not started to allow tracking of this indicator from banks and MFIs. However, as of June 30, 2010 the microfinance project had non performing loans (more than 90 days) averaging about 5%. Page 9 of 12 The World Bank Report No: ISR2412 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Type Unit of Measure Sub-Type Custom Indicator Kilometers Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value Portfolio at Risk - SME 10.00 Date Date Date 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Percentage PASEF Project implementation has not started. No partner SME banks have been selected to allow tracking of this indictor. Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Return on Assets/Equity 4.00 Date Date Date 31-Dec-2004 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Percentage No progress recorded due to no project activities yet. Page 10 of 12 The World Bank Report No: ISR2412 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value Financial Self-Sufficiency 109.00 120.00 Date Date Date 30-Jun-2009 31-Dec-2010 31-Dec-2012 Type Unit of Measure Comment Comment Comment Core Indicator Percentage No progress recorded due to no project activities yet. Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Data on Financial Performance (as of 23-Dec-2010) Financial Agreement(s) Key Dates Public Disclosure Copy Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P109607 TF-92098 Effective 15-Jul-2008 15-Jul-2008 28-Nov-2008 31-Dec-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P109607 TF-92098 Effective USD 15.00 15.00 0.00 0.60 14.40 4.00 Disbursement Graph Page 11 of 12 The World Bank Report No: ISR2412 Public Disclosure Copy Key Decisions Regarding Implementation Official use only - Not for public disclosure Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 12 of 12