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Project Progress Report

For the MENA Transition Fund

ANNEX TO THE MAIN REPORT

As of June 30, 2016

Table of Contents

Egypt Projects.......................................................................................................................................................................................... 6

Green Growth: Industrial Waste Management and SME Entrepreneurship Hub.............................................7

Support to MSME in Organic Cluster Project.................................................................................................................15

Support to Parliament: Building Capacity & Mainstreaming Inclusive Growth & Decentralization.....22

Strengthening Rule of Law: Effective & Transparent Delivery of Justice & Rule-making..........................29

Egyptian Central Bank Clearing & Settlement Depositary System for Government Securities...............39

MSME Support Programme in Egypt and the Social Fund for Development...................................................45

Logismed Soft Regional Project: Egypt Activities.........................................................................................................58

Promoting Financial Inclusion via Mobile Financial Services: Egypt Activities.............................................67

Regional Integration through Trade and Transport Corridors: Egypt Activities...........................................75

Leveraging Regulatory Reforms to Advance Financial Inclusion in Egypt.......................................................80

Enhancing the Investment Climate in Egypt, through EASE...................................................................................85

Energy Social Safety Nets Sector Reforms Technical Assistance Project..........................................................96

Inclusive Regulations for Microfinance.........................................................................................................................104

Promoting women’s participation in parliaments and policy-making............................................................111

Building Capacity & Institutional Strengthening of Ministry of International Cooperation...................119

Enhancing Social Housing Governance..........................................................................................................................127

Jordan Projects................................................................................................................................................................................... 132

National Center for Innovation, Higher Council for Science and Technology...............................................133

Reliable Quality Water for Jordan....................................................................................................................................145

Promoting Financial Inclusion via Mobile Financial Services: Jordan Activities.........................................153

SME Growth Programme......................................................................................................................................................159

Regional Integration through Trade and Transport Corridors: Jordan Activities......................................171

Integrated Inspection Management System................................................................................................................177

Promoting women’s participation in parliaments and policy-making in Jordan........................................188

Jordan Competitiveness and Investment......................................................................................................................194

Support to Building Active Labor Market Program..................................................................................................208

Enhancing Governance and Strengthening the Regulatory & Institutional Framework for MSMEs..217

National Unified Registry and Outreach Worker Program...................................................................................223

Virtual Market Places for the Development of Export SME: Jordan Activities.............................................230

SME Policy Effectiveness Project......................................................................................................................................239

Jordan Support to Decentralization Efforts..................................................................................................................246

Jordan Economic Legislation Reform.............................................................................................................................254

Youth in Public Life: open & Inclusive Youth Engagement – Jordan Activities............................................262

Strengthening Municipal FM Systems in Municipalities Affected by Refugee Crisis.................................268

Libya Projects...................................................................................................................................................................................... 273

SME Development Strategy for Libya.............................................................................................................................274

Leading the Way: A Leadership Capacity Building Pilot Project.........................................................................286

Energy Sector Reform Technical Assistance................................................................................................................292

Finance and Private Sector Development Technical Assistance.........................................................................300

Morocco Projects............................................................................................................................................................................... 307

Regional Affordable Housing Project: Morocco Activities.....................................................................................308

Logismed Soft Regional Project: Morocco Activities................................................................................................317

Promoting Financial Inclusion via Mobile Financial Services: Morocco Activities.....................................326

Regional Integration through Trade and Transport Corridors: Morocco Activities..................................332

Promoting women’s participation in parliaments and policy-making in Morocco....................................339

Improving Connectivity in the Maghreb: Morocco...................................................................................................344

Accessing Overseas Employment Opportunities for Moroccan Youth............................................................358

Local Government Support Program..............................................................................................................................365

Morocco Microfinance Development Project..............................................................................................................374

New Governance Framework Implementation Support Project........................................................................383

Virtual Market Places for the Development of Export SMEs: Morocco Activities.......................................396

Strengthening Micro-Entrepreneurship for Disadvantaged Youth in the Informal Sector.....................407

Strengthening Parliamentary Accountability and Oversight...............................................................................416

Youth in Public Life: Open & Inclusive Youth Engagement – Morocco Activities.......................................424

Tunisia Projects.................................................................................................................................................................................. 430

Enhancing governance and economic growth: promoting transparency in procurement.....................431

Leading the Way Program: Developing Leadership Capacity..............................................................................436

Enhancing Domestic Resource Mobilisation through Effective Tax System Design .................................443

Operationalizing Public Private Partnership in Tunisia.........................................................................................455

Regional Affordable Housing Project: Tunisia Activities.......................................................................................465

Logismed Soft Regional Project: Tunisia Activities..................................................................................................475

Regional Integration through Trade and Transport Corridors: Tunisia Activities.....................................483

Establishment of Tunisia Investment Authority........................................................................................................489

Strengthening the Employability of Youth during Tunisia’s Transition to a Green Economy...............497

Tunisian Energy Reform Plan (TUNEREP)...................................................................................................................506

Tunisia Social Protection Reform Support Project...................................................................................................512

Virtual Market Places for the Development of Export SMEs: Tunisia Activities..........................................522

Optimizing and Monitoring Employment in Infrastructure Investments......................................................532

Broadband Internet and ICT for Education Acceleration Project......................................................................539

Implementing Priority Actions for Competitiveness & Improved Public Services.....................................549

Work Readiness Programme..............................................................................................................................................557

Supporting the Design and Implementation of Economic and Social Reforms- Inclusive Growth......562

Youth In Public Life: Open & Inclusive Youth Engagement – Tunisia Activities..........................................568

Promoting Women’s Participation in Parliaments and Policy-making – Tunisia.......................................575

Yemen Projects................................................................................................................................................................................... 581

Reinforcing Rule of Law: Developing Judiciary Capacities....................................................................................582

Education for Employment................................................................................................................................................. 589

Accountability Enhancement Project..............................................................................................................................597

Enterprise Revitalization and Employment Pilot Project......................................................................................608

Preparation and Implementation Support Project for the Special Industrial Zone in Al-Hodeida.....615

Crisis Support to Microfinance Institutions.................................................................................................................623

Egypt Projects

Green Growth: Industrial Waste Management and SME Entrepreneurship Hub

A. Basic Project InformationActivity Name: Green Growth: Industrial Waste Management and SME Entrepreneurship Hub in Egypt

Country Name: Egypt Name of Implementation Support Agency(ies): African Development Bank

Name of ISA Project Leader: Gehane El Sokkary Email of ISA Project Leader: [email protected]

Recipient Entity: Industrial Council for Technology & Innovation/Egyptian National Cleaner Production Center

Eng. Hanan El Hadary, Chairperson, Industrial Council for Technology and Innovation [email protected]

Eng. Ali Abo Sena, Director Egyptian National Cleaner Production Center [email protected]

Total Amount Approved by the Transition Fund (US$): 2,000,000

Additional Funds Leveraged and Source(s), if any (US$): in kind contribution by Recipient

Total Amount Disbursed (Direct and Indirect in US$): 474,500

Steering Committee Approval Date:

5/15/2013

Project Implementation Start Date: 12/19/2013

Project Closing Date:

9/30/2017

Pillar(s) to which Activity Responds (as per the proposal approved by the Steering Committee)

Primary Pillar: Investing in Sustainable Growth

Secondary Pillar(s): Competitiveness and IntegrationEnhancing Economic GovernanceInclusive Development and Job Creation

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project’s objective is to develop a sustainable and integrated industrial waste exchange system in the pilot area positioned as a Green Entrepreneurship Hub linking industrial wastes generators, potential users and recyclers to improve cross-industry resource efficiency, promote the development of new innovative SMEs, create green job opportunities, reduce the environmental impact of industrial waste and improve the lives of Egyptian citizens.

Rating for progress towards achievement of objective:

Satisfactory

Rating for overall implementation progress: Satisfactory

Brief Summary of Project Implementation Status: Project implementation is progressing well: implementation of all four components are well underway and the project is collaborating with other stakeholders to ensure a coordinated approach. A mid-term supervision mission was fielded during the period 19-23 June 2016, and the following are the main highlights:

1. Some project restructuring is needed to cater to the new developments on the ground and ensure that the project outcomes are meaningful and realistic, whilst remaining aligned to the overall objective. The main elements requiring restructuring relate to the following: (i) the need to engage, advise and strengthen the capacities of the newly established Waste Council (under component 3); (ii) the possibility of expanding the mapping of industrial waste beyond one city thereby ensuring that waste mapping has been conducted for the two main industrial cities of Egypt (under component 1); (iii) instead of limiting the support to entrepreneurs in the pilot area as initially proposed in the project design under component 4, the project will use a multi-pronged approach to support advanced stage

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entrepreneurs nationwide, raise entrepreneurship awareness amongst potential entrepreneurs nationwide, support the establishment and equipping of an entrepreneurship training hub in the pilot area, in collaboration with the Innovation and Technology Council under the Ministry of Trade and Industry. (iv) Given the lengthy time period required for entrepreneurs to obtain seed funding and start operating a business in order to create jobs, the job creation indicator will need to be greatly downsized to a more realistic estimate and another sub-indicator introduced relating to the establishment of a training hub in the pilot area.

A restructuring memo is under formulation for review and approval by the Steering Committee.

Meanwhile, the following summarizes the main new sub-components anticipated to be included, subject to the approval of the Steering Committee

Activity to be proposed JustificationUnder component 1: - Mapping of Industrial Waste in 2nd

industrial city (6th of October)To expand mapping to cover the two biggest industrial cities inEgypt

Under component 2: - Best Practices on integration of Informal Waste Collectors

- Best Practices and Executive Framework for Waste Councils

To assist in strengthening the newly established Waste Council

Under Component 3: - Business to Business matchmaking event with South African companies)

- Specialized training with nationwide coverage on industrial symbiosis

- Building capacity of Ministry of Trade representative and ENCPC staff

- Awareness and training on entrepreneurship development

-in replacement of capacity building activity in original design- to expand concept and raise awareness nationwide on waste exchange process.- support specific gaps in capacities identified.- activity targeting potential entrepreneurs nationwide

Under component 4: fully revised

- Supporting the establishment of an entrepreneurship hub in 10th of Ramadan area through procurement of recycling equipment

- Support advanced entrepreneurship development in waste recycling

- Support the establishment of a longer-term waste training entity in one of the pilot areas.

- Support advanced stage entrepreneurs as well as new potential entrepreneurs.

Under project mgmt component:

- Recruit an admin assistant, and an officer Strengthen project management

2. The Mapping of Industrial Waste Assignment was finalized and as a result of the excellent outputs, it was agreed that a second mapping assignment would be introduced in 6th of October Industrial city, thereby ensuring coverage of greater Cairo region. Given the success of the methodology used in the first assignment, the same methodology will be maintained and collaboration with the 6th of October Business Association will be sought.

3. The Industrial Waste Council has welcomed the project’s assistance and discussions are on-going to ensure maximization of collaboration towards improved policy reforms and recommendations.

4. Supervision Missions: To date, the following 4 missions were conducted: project launching mission in February 2014; Supervision Mission in June 2015; Supervision mission on December 1, 2015; Mid-term Supervision Mission, June 19-29, 2016.

5. Disbursement: A new disbursement request is anticipated to be submitted to the Bank for release of a new tranche by September 2016. The current disbursement rate is 24%; it is expected that following the new tranche, the disbursement rate will reach around 40% and the last tranche for the remaining

amount will be disbursed towards Q1 2017, by which time all assignments will have been tendered. 6. Procurement:

The General Procurement Notice (GPN) was posted on the UNDB and the Bank’s website on May 27, 2014.

Project management: Four positions are currently being filled: (i) a new Senior Expert to replace the consultant who passed away in February 2016; (ii) a field engineer to assist with the field activities; (iii) a project officer to assist with the day to day management of the project; (iv) an administrative assistant to assist with the administrative and financial procedures and coordinate between the project and the Ministry.

Pending approval of the restructuring by the MENA TF Steering Committee, the project procurement plan will be revised and adjusted to reflect these changes.

7. Audit: The project external audit assignment has been awarded and is under implementation.

C. Implementation Status of Components

Component 1: Mapping of the industrial waste at the enterprise level in the selected pilot area (new sub-component to be introduced pending approval of SC – mapping in 6th of October)Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 500,000 (increased by

USD 200,000 for second mapping assignment)300,000

Sub-component 1.1 & 1.2 were combined: Conducting information collection and data analysis of the industrial waste in the identified pilot area + developing an inventory database of the industrial waste

Status of Implementation:Completed. Payment to consultant is under processing. Main findings: 418 factories were included in the mapping, considered a representative sample of the industries in the 10th of Ramadan City. The most common method of disposal was selling to traders, and the most common process that generated waste was production. Many waste fractions must be pooled together to generate substantive bulk meaningful for recycling. Several of the identified waste are recyclable and include: plastics, paper, metals, cardboard, lubricant oils, etc. No new technologies are envisaged but there is a need to inform enterprises who are presently not recycling these wastes of the potential. Awareness and training workshops on industrial symbiosis would be highly beneficial, as well as the promotion of the recycling platform established under the project.

Component 2: Policy Recommendations towards an enabling environment for industrial waste exchange (two sub-components to be introduced under this component, pending approval of SC)Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 185,000 (increased

from USD 140,000)Sub-component 2.1: Reviewing existing regulations and legislations

Status of Implementation: Completed.Sub-component 2.2: Compiling Int’l Best Practices

Status of Implementation: Completed. Sub-component 2.3: Awareness raising seminars & production of policy briefs

Status of Implementation: Tendered

Component 3: Raising Awareness and capacity building of stakeholders on IWEX (Pending approval of the SC, two new sub-components to be introduced related to raising awareness and providing training to potential

entrepreneurs nationwide as well as building capacities of MoTI and ENCPC staff in areas for which gaps have been identified ; nationwide training on industrial symbiosis will be expanded nationwide; and business to business match-making event will be organized instead of the specialized training in the oirginal design )Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 560,000 (decreased

from USD 680,000)Sub-component 3.1: Dissemination workshop on national and local levels

(i) Status of Implementation: Four awareness raising workshop were implemented to date as follows: The Launching workshop was held on May 12, 2015 to present the findings of two studies finalized: “Best Practices in Industrial Waste Management” as well as “Review of Status and Actual practices in Industrial Waste Management in Egypt.” In addition, the National Clean Production Center of South Africa was invited to attend the workshop and an MoU between the Egyptian and South African centers was signed, paving the way for further collaboration. A second workshop under the auspices of the 10th of Ramadan Business Association to introduce the Mapping assignment and its goal, so as to gain buy-in from the 10th of Ramadan community was implemented on January 20 and 21, 2016. A third workshop to raise awareness of the informal waste collectors on the waste exchange system was implemented on March 24, 2016. A fourth awareness raising workshop on industrial symbiosis was conducted in Alexandria, from March 29-31, 2016.

(ii) Project interim workshop and project closing workshop are planned for Q4 2016 and Q3 2017.(iii) Nationwide workshops on industrial symbiosis are planned to be implemented in Q3/4 2016.(iv) Business to business match-making event would be organized with South African companies. This is

planned to be conducted during Q4 of 2016. (in lieu of the specialized training in the original design) Sub-component 3.2: Develop and launch a marketing campaign (activity will be divided into 2 sub-activities, one for launch and one to disseminate the outcome.)

Status of Implementation: Under tenderingSub-component 3.3: Study Tour

Status of Implementation: An 11-person study tour was fielded to South Africa on December 6, 2015 for one week. The second ST is planned for 2016 in Brazil. Arrangements being agreed upon with Brazilian counterparts and concept note under preparation.

Component 4: Implementation of 3 Demonstration Projects in Industrial Waste Exchange in Pilot Area (Pending approval of SC, restructuring of this component will be undertaken to reflect entrepreneurship development)

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$) 265,000 (down from USD 280,000)

Sub-component 4.1 Identify pilot

Status of Implementation: Completed: 10th of Ramadan Identified. MoU with Business Association signed. Local workshop conducted and engagement of companies sought.Sub-component 4.2: Conduct rapid technical assessment of generators and recyclers of industrial waste (In-kind)

Status of Implementation: Under the proposed restructuring, this will be fine-tuned to a consultancy assignment to identify the type of equipment that should be purchased for the training hub that will be established in 10th of Ramadan area. Sub-component 4.3: Prepare technical and financial feasibility study for system of 3 pilots

Status of Implementation: Under the proposed restructuring, this will be exchanged for an assignment to support, coach and mentor advanced stage entrepreneurs.

Sub-component 4.4: Recruit Technical support consultant on retainer basis for 6 months

Status of Implementation: Under the proposed restructuring, this assignment will be cancelled.

Component 5: Project Management

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$) 540,000Sub-component 4.1: Recruitments of staff: project coordinator, chief technical advisor, senior expert, 2 junior technical engineers, an accountant, procurement officer, a driver

Status of Implementation: Since the last mission, two consultants have been recruited (project coordinator and junior technical engineer). The senior expert passed away and a replacement is currently under recruitment and the field engineer is also under recruitment. Under the proposed restructuring, a project officer and admin assistant are expected to be recruited. Sub-component 4.2: Purchasing of computers, equipment, and vehicle

Status of Implementation: Pending the approval of the SC to support the Entreprneurship training hub, some equipment will be procured, as well as additional equipment for the project use particularly in view of the additional project staff.Sub-component 4.3: Conduct independent external audit

Status of Implementation: Tendered and assignment in progress.

D. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution

(US$)

(x)

Direct Cost for ISA-Execution (US$)

(y)

Total (US$)

Approved Amount for Direct Project Activities (a):

1,940,000 0 1,940,000

Amount Received from Trustee (b):

1,940,000 0 1,940,000

Actual Amount Disbursed (c): 474,500 0 474,500

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 252,500 252,5002015 0 222,000 222,0002016 0 200,000 200,0002017 1,265,500 0 1,266,000Total 1,266,500 674,500 1,940,000

F. Disbursements of Funds for Indirect Costs (US$)Disbursed (US$) Available (US$) Total (US$)

60,000 0 60,000

G. Results Framework and Monitoring

Project Development Objective: Develop a sustainable and integrated industrial waste exchange system in the pilot areas positioned as a Green Entrepreneurship Hub, linking industrial wastes generators, potential users and recyclers to improve cross-industry resource efficiency, promote the development of new innovative SMEs, create green job opportunities, reduce the environmental impact of industrial waste and improve the lives of Egyptian citizens.

PDO Level Results Indicators*

Unit of Measure

Baseline

Cumulative Target Values** Frequency

Data Source/

Methodology

Responsibility for Data

Collection

Description (indicator

definition etc.)

Dec 2013 - Dec 2014

A

Jan 2015 – Dec 2015

A

Jan 2016 – Dec 2016

F

Jan 2017- Sept 2017

F

Indicator One: Establishment of industrial waste exchange system in pilot area that is utilized

Binary No existing system

1 (F) Third year Project completion reports

ENCPC - Project Management Unit under the Industrial Council for Technology and Innovation

System is running and is utilized by registered industrial establishments

Indicator Two: Creating a Green Entrepreneurship Hub for job creation in the pilot area.

Binary No existing green entrepreneurship environment

1 (F) Third year Project completion reports

ENCPC PMU A green entrepreneurship is created in the pilot area facilitated by an enabling environment.

INTERMEDIATE RESULTS

Intermediate Result (Component One): Inventory of industrial wastes developed in pilot area

Intermediate Result indicator One: A comprehensive survey for mapping industrial wastes in pilot area

Binary Inadequate mapping of industrial wastes

0 0 1 (completed)

Third year Project progress report

ENCPC PMU

conducted

Intermediate Result indicator Two: Integrated inventory of industrial wastes in pilot area developed in a database

Binary No inventory of industrial wastes

0 1 (completed. Needs to be promoted)

Third year Project progress report

ENCPC PMU Structure is established

Intermediate Result (Component Two): Policy recommendations towards an enabling environment for industrial waste exchange in Egypt

Intermediate Result indicator One: Policy measures for regulating and monitoring the market for industrial waste exchange formulated and adopted.

Qualitative Insufficient policy measures

0 1 study identfying policy

measures (completed) and 1

study with

Policy measures

drafted (under

processing through workshops) (F)

Policy measures adopted

(F)

Annual Gap analysis of policy requirementsConsultations w/stakeholder

ENCPC PMU

Intermediate Result (Component Three): capacity building and raising awareness regarding the industrial waste exchange program

Intermediate Result indicator One: number of trainees from stakeholders and support institutions

Number 0 30 (F)

11 (A)

50 (F)

In process

70 (F) Annual Project reports

ENCPC PMU

Intermediate Result indicator Two: number of stakeholders participating in awareness raising

Number 0 150 (A) 120 (F)

In process


ENCPC PMU

activitiesIntermediate Result indicator Three: number of participants of the capacity building program engaged in further activities of the project.

Number 50 (F)

0 (A)

60 (F)

In process


ENCPC PMU

Intermediate Result (Component Four): Implementation of demonstration projects in industrial waste exchange in pilot area

Intermediate Result indicator One: Number of cost-effective pilot projects realized and implemented in 3 different waste exchange areas.

Number 0 1 (F)

0 (A)

3 (F) third & fourth year

Project reports

ENCPC PMU

Intermediate Result indicator Two: Number of direct and indirect green jobs created SMEs

Number 0 20 direct 60 indirect jobs (F)

0 (A)

50 direct 150 indirect jobs (F)

Third and fourth year

Project reports

ENCPC PMU

Support to MSME in Organic Cluster Project

A. Basic Project InformationActivity Name: Support to Micro, Small and Medium Enterprises in Organic Clusters


Name of ISA Project Leader: Gehane El Sokkary Email of ISA Project Leader: [email protected]

Recipient Entity: Egypt Social Fund for Development

Ms Soha Soliman, Managing Director of SFD

[email protected]


Additional Funds Leveraged and Source(s), if any (US$): in kind contribution



2/20/2013

Project Implementation Start Date:

5/29/2013

Project Closing Date: 6/30/2017



Secondary Pillar(s): Inclusive Development and Job Creation

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project’s objective is to create an overall enabling environment for Micro, Small, and Medium Enterprises (MSMEs) operating out of organic clusters and increase their contribution towards economic growth and employment. The outcome of this project will feed into the larger policy framework for the MSME which is under development and currently led by the SFD


Satisfactory


Brief Summary of Project Implementation Status:

Project implementation is proceeding well with the following being the main activities conducted during this period:

The large nationwide assignment “Mapping of Organic Clusters” was completed and launched to a wide-range of stakeholders in a workshop implemented on May 10, 2016 and attended by 154 persons. The mapping assignment concluded that Egypt had 145 organic clusters with substantial growth potential. The handmade carpet cluster and the furniture cluster, identified by the project prior to the mapping assignment, are amongst the top six clusters with strong potential for growth.

Having identified that marketing and outreach are amongst the main challenges for the productive clusters in Egypt, the following activities were conducted: (i) the project identified several exhibitions and supported NGOs and their members MSMEs in participating in these events. During Q1/Q2 of 2016, support was provided to 11 NGOs (and select MSME members from these NGOs who expressed interest and commitment) to take part in 2 major exhibitions held in Egypt: Furnex 2016 and La Casa 2016. Focus was given to MSMEs who had not previously participated in such events. These resulted in numerous business opportunities and in raising awareness on the need to work together as a cluster in order to

maximize and leverage the benefits to all. (ii) the project provided dedicated training to NGOs in the hand-made carpet clusters to assist them in exhibiting their products. The outcomes of this assignment included: having one catalogue for the 5 NGOs; agreeing on a range of price list for all carpets based on their type and specifications; including a label on each product with the no of knots, the type of material used, the carpet size; awareness on concept of Fair Trade; and data collection on potential buyers to facilitate to the MSMEs their follow-up plan after the expo. (iii) the project will be supporting the SFD Handicrafts Expo in 6 governorates nationwide, planned for September 2016.

Capacity building of NGOs was conducted on several topics: financial literacy and coaching on new MSME regulations; training on export procedures; hands-on training on how to promote their products.

Disbursement: A third disbursement tranche for USD 101, 891 has been transmitted to the Bank in June 2016 and is under processing. Once processed, this will bring the total disbursements to date to be USD 797, 591 around 41 % of the grant proceeds.

Missions: To date, 4 mssions have been conducted by the AfDB as follows: (i) Launching Mission, September 29, 2013; (ii) Supervision Mission, 30-31 March 2014; (iii) Second combined supervision mission, March 16-26, 2015; and (iv) supervision mission Feb 28-March 3, 2016.

Audit: An independent external audit of the project expenses has been conducted for the period February – December 2014, and was found satisfactory by the Bank. A second external audit for the period Jan-Dec 2015 was conducted and submitted to the Bank in June 2016. It is under Bank review.

Procurement: The General Procurement Notice (GPN) was posted on the UNDB and the Bank’s website on Oct 2,

2013. Project staff recruitments:

- Full time Project Manager recruited February 15, 2014. Contract was renewed to the end date of the project. - Admin Officer: recruited in September 2014. Contract was renewed to the end date of the project.- Reporting officer has recently been recruited to assist in the project reporting activities.- A policy expert is under recruitment.- computers and equipment were procured for use by the project team.

C. Implementation Status of Components Component 1: Policy Recommendation towards an enabling environment for the development of MSMEs in Organic Clusters.Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 767,000

(up from 644,220))Sub-component 1.1: Sub-component 1.1: Information gathering and data analysis which will specifically include:

a. Mapping of Organic clusters, reviewing and analyzing existing national programs supporting them;b. Compiling Research on Best Practices; andc. Potential Growth Assessment of 3 selected Organic Clusters and their value-chain analysis.

Status of Implementation:a. Mapping of Organic clusters: Assignment completed. b. Compiling Research on Best Practices: Assignment completed. c. Potential Growth Assessment of 3 selected Organic Clusters: Assignment under award.

Sub-component 1.2: Draft Policy Recommendations for Inclusion in national strategies. Following the recent macro-level developments, this sub-activity is anticipated to be launched once the project extension is approved. The output will be a result of the following:

a. Multi-stakeholder validation workshops;b. Development of National Strategy; andc. Development of Policy Briefs

d. Establishment of Support Information Systems.Status of Implementation:

a. Multi-stakeholder validation workshops: workshop will be launched to present the growth assessment output, discuss the draft national strategy and policy briefs. The recruitment of a policy expert will be useful for this component.

b. National Strategy: ToRs for the MSME National Strategy were re-visited and adapted to the new definition of SMEs announced in early December 2015. Cabinet approval is pending. The alternative option is to prepare a strategy for Cluster Development.

c. Policy Briefs: ToRs are being developed. Briefs are expected to be submitted in draft form by end of 2016.

d. Support Information Systems: Dissemination of knowledge is the objective of this sub-component, to ensure access of all stakeholders to the wealth of information gathered and produced on clusters and MSMEs. ToRs for the assignment are under development.

Component 2: Institutional & Operational Capacity Building for Key Support Institutions and SFD

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 360,000(Down from 370,780)

Sub-component 2.1: Enhance the capacity of governmental and non-governmental support institutions with regards to the pilot cluster though:

a. In-depth stakeholder analysis of support institutions

b. Conduct workshops and round-table discussions to raise awareness of stakeholders: c. Build capacities of stakeholders, including SFD and key support institutions towards improved cluster

identification and management. d. Study tour: Two study tours for a maximum of 6 persons from at least 3 stakeholders each will be

organized to view how cluster management is conducted. India and Brazil have been identified for these tours as they both have different experiences to share.

Status of implementation: a. Stakeholder Analysis: ToRs for this assignment is under preparation. b. Workshops/Roundtable for Awareness Raising: a stakeholder workshop was held in May 2016 to

disseminate the outcomes of the mapping and BP assignments.c. Stakeholder Capacity Development: Following the failure of contractual arrangements with UNIDO,

other options are currently being reviewed. d. Study Tour: In February 2014, the first study tour was fielded to India to attend “Changing Paradigms of

Cluster Development - Learning from Global Experience" organized in New Delhi by The MSME Foundation in collaboration with UNIDO and other stakeholders. A second study tour is planned for 2017.

Sub-component 2.2: Establish a sustainable management methodology/system by: a. Identify suitable cluster management governance systems and conduct a feasibility study. b. Creation of a BDS pricing system

Status of Implementation: a. Feasibility Study: Following discussions with the Federation of Egyptian Industries, a cluster

management system is being considered in Damietta Governorate for the Damietta Furniture City which is under establishment. ToRs to be developed during Q3 of 2016.

b. BDS pricing system: completed.

Component 3: Increase MSME contribution to manufacturing value-added (pilot)

Two pilots will be conducted, the clusters identified for support are: (i) the Hand-made carpet cluster and the (ii) the furniture cluster in Damietta.

Previous Rating: Satisfactory Current Rating: Moderately Satisfactory

Cost (US$): 365,000 (down from 490,000)

Sub-component 3.1: Develop a cluster action plan for the selected pilot namely:a. In-depth diagnostic study of the specific cluster identified

; andb. Cluster stakeholder consultations

Status of Implementation: a. Diagnostic Study:

For hand-made cluster in Menoufeya: Assignment completed.For furniture cluster: diagnostic already exists. So, several activities have been designed to assist in developing the cluster further. Amongst these are the “Bar coding” assignment for MSMEs in furniture cluster, for which ToRs are being formulated. Cluster Consultations: For carpet cluster: This activity has conducted. For furniture cluster: This is expected to be conducted following the outputs of the growth assessment that was recently tendered.

Sub-component 3.2: Enhance BDS and financial services in the identified pilot:a. Develop and provide tailored Business Development Services training to MSMEs in organic clusters: It is

envisaged that this training will be required in a wide variety of fields, such as research and development, counseling and training, legal and accounting, design and quality and prototyping, business linkages, testing and measurement and control, export services, financial services and resource mobilization, etc.

b. Development of a specific loan product for the identified cluster. This assignment will be undertaken to identify and address the financing needs of the micro and small enterprises in this particular cluster, so that they can have increased access to finance for their proper expansion and formalization

Status of Implementation: a. BDS Training: once initiated this activity is expected to be on-going till project closure

For hand-made carpet cluster: financial management training has been conducted. Other activities are under design.

For furniture cluster: This is to be tendered as a result of the diagnostic growth assessment assignment that is currently on-going. Expected to be designed in Q3 of 2016 for immediate implementation.

b. Development of Loan Product: For hand-made carpet cluster: activity to be launched in Q3 of 2016 For furniture cluster : activity to be launched in Q3 of 2016

Component 4: Project Management Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 370,000

(up from 348,000) Sub-component 4.1: Recruitment of full time project manager, a full time project officer and a part-time M&E officer.

Status of Implementation: Project Manager recruited and contract extended to project closure. Admin Officer recruited and contract extended to project closure Recruitment of a reporting officer has been finalized. Recruitment of a policy expert is under processing.

Sub-component 4.2: Purchasing of computers and equipment. Completed

Sub-component 4.3: Project Completion Assessment – to be tendered near project completion


(US$)

(x)


(y)

Total (US$)


1,940,000 0 1,940,000


1,940,000 0 1,940,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 397,700 0 397,7002015 0 298,000 298,0002016 101,891 1,142,409 1,244,300


60,000 0 60,000


Project Development Objective (PDO): Create an overall enabling environment for Micro, Small, and Medium Enterprises (MSMEs) operating out of organic clusters and increase their contribution towards economic growth and employment.


Unit of Measure

Baseline

Cumulative Target Values**

Frequency

Data Source/

Methodology

Responsibility for Data Collection

Description (indicator definition

etc.)

Jun 2013 - Jun 2014

A

Jul 2014 - Jun 2015

A

Jul 2015 - Jun 2016

A

(Jun 2016-

Jun 2017)

FIndicator One: Regulation and laws adopted by government related to integration of organic cluster in the development plans

Qualitative

No regulation exist

Policy option developed

End of Project

Qualitative research

SFD/AfDB Project contributes to formulation of new policies

Indicator Two: Unemployment rate % 13 12.8 12.6 12.4 Annual


Intermediate Result (Component One): Policy recommendations towards an enabling environment for the development of MSMEs in organic clustersIntermediate Result indicator One: Policy framework for organic cluster development drafted and advocated

Binary No Framework

0 1 Annual Policy framework available and disseminated

SFD/AfDB

Intermediate Result indicator Two: studies supporting cluster's, policy decision making conducted

Number

0 0 (A)2 3 (A) 5 (F) Annual Project annual reports

SFD/AfDB

Intermediate Result (Component Two): Institutional capacity built for key support institutions and stakeholders working with organic MSME clustersIntermediate Result indicator One: number of

Number 0 10 (F)

30(F) 50 (F) Quarterly Project reports

Project

stakeholders trainees 3(A) 30 (A)

Intermediate Result indicator Two: number of institutions participated in study tours and roundtables

Number 0 2(F)1 (A)

10 (F)7 (A)


Project

Intermediate Result (Component Three): MSME contribution to manufacturing value added increased in pilot

Intermediate Result indicator One: No. of BDS services provided to MSMEs in clusters supported (gender disaggregated)

Number 0 0 10(A) 1

20 (F)4(A)


Project completion report

Intermediate Result indicator Two: No of loans provided to MSMEs in clusters supported (gender disaggregated)

Number 0 0 2(A) 0

10 (F)0 (A)

10 (F)Annual

Project reports

Project

Intermediate Result Three: No of jobs created (gender disaggregated)

Number 0 0 5(A) 0

20 (F)0(A)

10 (F) Annual Project reports and evaluation

Project

** Indicate ‘A’ for ‘Actual’ and ‘F’ for ‘Forecast’

Support to Parliament: Building Capacity & Mainstreaming Inclusive Growth & Decentralization

A. Basic Project InformationActivity Name: Support to Parliament: Building Capacity and Mainstreaming Inclusive Growth and Decentralization in Egypt


Name of ISA Project Leader: Gehane El Sokkary (former); Budali Issahaku (new)

Email of ISA Project Leader: [email protected]; [email protected]

Recipient Entity: African Development Bank Director North Africa, Jacob Kolster

[email protected]


Additional Funds Leveraged and Source(s), if any (US$):

Total Amount Disbursed (Direct and Indirect in US$): 0


6/11/2014


3/30/2015

Project Closing Date – 2 year extension request to be submitted in September 2016.

9/30/2017


Primary Pillar: Enhancing Economic Governance

Secondary Pillar(s): Competitiveness and IntegrationInclusive Development and Job CreationInvesting in Sustainable Growth

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of the project is to enhance the performance of the Egyptian Parliament towards increased efficiency and effectiveness in response to the demand for improved social justice. Rating for progress towards achievement of objective:

Moderately Satisfactory

Rating for overall implementation progress: Moderately Satisfactory


The project had been postponed until Parliamentary elections were held. These were finalized in December 2015, and the Parliament convened by mid-January 2016. A new Secretary General has also been appointed, as well as a deputy Secretary General, Councellor Mohamed Nosseir, who is the Parliament representative for this project.

Project Launching: A project launching mission was conducted on March 31, 2016. During the mission, the Bank explained the project components and the Bank rules for procurement and financial management. The StP project team updated the Bank team on the developments within Parliament, particularly those in relations to the institutional support component given the implications for modification of project activities. StP Project Team appointed: A team of focal points from the Parliament was appointed, consisting of Ms Zeinab Mobarak, Head of External Affairs of Parliament; Eng. Nivine El Hilaly, Head of Information Technology and Communications. Meanwhile, the Bank was also informed that the Ministry of International Cooperation



has signed an MoU with the Parliament, and accordingly had identified Mr Ramy Afifi, as the MoIC focal point for the project. The Bank is also in the process of recruiting consultants to assist the Task Manager in the day-to-day management of the project. Recruitments were conducted for a Chief Technical Advisor, a Project Coordinator and a Project Officer. Awarding of the contract is expected to be conducted during July 2016.

Project Components: While the original allocations have remained constant some of the activities have been fine-tuned following launching mission as follows: Under Component 1: Capacity Building of Parliament’s Permanent Staff (original allocation of USD 500,000) : The Mission was informed that several capacity building activities have been conducted earlier hence the need to build on earlier activities, including previous needs assessments if adequate. It was agreed that an individual consultant would be recruited to assist the team in identifying the needs, conducting evaluations, as well as preparing pre- and-post outcome evaluations.

Under Component 2: Institutional Development (original allocation of USD 1.5 M): The Mission was informed that during the period between the approval of the project and the launch, the Parliament has gone ahead with procuring the electronic voting system through its own resources. Hence this activity is no longer needed and the activities agreed upon under this component include the following:

Purchasing of Equipment, including securitization of the network. Supporting the new Parliament Training Center: A Training Center is currently being established under

the Parliament, to cater to Parliament staffers, Members of Parliament as well as external stakeholders. The Decree approving its establishment is under processing. Once this is issued, the project can support this center through its institutional development component as well as the capacity building component.

Restoration of Rare Books: The Parliament hosts a library of Rare Books, including the famous “Description de l’Egypte.” These books, considered a national heritage, are in need of restauration. This activity will be included under this component.

The Bank will request a restructuring of the project component to accommodate the current needs of Parliament.

Under component 3: Case study: Mainstreaming Social Inclusion and Decentralisation (orginal allocation USD 270,000). The activities will be fine-tuned at a later stage.

Under Component 4: Project Management (original allocation USD 470,000): recruitment of consultants is on-going and award of contracts expected in July 2016. Procurement of equipment for consultants recruited has been tendered and partially completed.

Grant Basic Information:

Grant Approval Date June 11, 2014Grant Closing Date 30 September 2017 (to be extended for 2 years)Grant Amount USD 2,920,000 (incl. ISA charges)Grant Launching March 31, 2016Grant Disbursement 0.4% up to June 30, 2016.

C. Implementation Status of Components D. Component 1: Capacity Building of Parliament’s Permanent Staff, with a focus on staffers involved

in Committees:Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 500,000Sub-component 1.1: Capacity needs assessment

Status of Implementation: This is no longer a main activity as previous capacity needs assessments have been

conducted and training conducted. The project will build on the previous assessments conducted.Sub-component 1.2: Capacity building programs

Status of Implementation: ToRs for individual consultant to assist the parliament team in implementing the capacity building program has been drafted, approved and CVs have been compiled. Letter of Invitation are due to be sent out to the consultants during July 2016 for immediate recruitment.English language training has been identified as a need. An advert has been placed within the Parliament for members to sign up and for the first phase, 69 staff have been selected based on previously agreed upon criteria. A comparison of service providers has been conducted, and selection is under way by the Parliament team. Sub-component 1.3: Field visits

Status of Implementation: Program to be established based on needs.

Component 2: Institutional Development

Previous Rating: Not Applicable Current Rating: Moderately Satisfactory

Cost (US$): 1,500,000

Sub-component 2.1: Organizational Structure.

Status of Implementation: Due to changes in the course of implementation, this component will require revisions as part of a wider restructuring of the project. If the restructuring request, (yet to be submitted) is approved, the component will focus on Restoration of rare books. A consultant will first be recruited to review the status of rare books and recommend a process for their restoration. Sub-component 2.2: IT upgrade

Status of Implementation: Parliament team has submitted to the Bank a list of equipment needed, potential suppliers for each type of equipment. The Bank has initiated internal discussions on the process for launching the procurement of these equipment. Sub-component 2.3: Introducing the e-voting system to increase efficiency and enhance transparency to be replaced by supporting the Parliament Training Center

Status of Implementation: The e-voting system has been address with funds from Government. Alternative activities will be proposed as part of the restricting request to be submitted by the Bank.

Component 3: Case study: Mainstreaming Social Inclusion and Decentralisation: it was agreed that this activity would be launched at a later date, once all the Parliament Committee Members have been selected, and the development plan for 2016/17 approved for implementation. This is expected to be discussed during the upcoming mission towards Q3 of 2016.

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 270,000Sub-component 3.1: Development of a dedicated training program

Status of Implementation: TBCSub-component 3.2: Implementation of the program, through a series of inter-active workshops

Status of Implementation: TBCSub-component 3.3: Study Tour for 12 persons

Status of Implementation: 2 tours will be organized in similar context countries to be identified during project implementation



Cost (US$) 470,000

Sub-component 4.1: Recruitments of staff: Technical Advisor, Program Coordinator, and Project Officer

Status of Implementation: The first recruitment process was annulled because of procedural discrepancies. They have been re-launched. Interviews were conducted during May 2016, and the technical and financial proposal for the award of contracts is at the final stage for Bank approval. Three consultants are expected to be recruited. Sub-component 4.2: Purchasing of office equipment

Status of Implementation: Tender was launched for office equipment and some items have already been delivered. Launch of tender for stationary is undergoing.

E. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution

(US$)

(x)


(y)

Total (US$)


2,740,000 2,740,000


0 0

Actual Amount Disbursed (c): 0 0

F. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2015 0 0 02016 0 500,000 500,0002017 500,000 500,000 1,000,0002018 500,000 500,000 1,000,0002019 240,000 0 240,000Total 1,240,000 1,500,000 2,740,000

G. Disbursements of Funds for Indirect Costs (US$)Disbursed (US$) Available (US$) Total (US$)

0 180,000 180,000

H. Results Framework and Monitoring

Project Development Objective: Enhance the performance of the Egyptian Parliament towards increased efficiency and effectiveness in response to the demand for improved social justice.

PDO Level Results Indicators* Unit of Measure Baseline


FrequencyData Source/Methodology


Description (indicator definition etc.)

Jan 2015 - Dec 2015

A

Jan 2016- Dec 2016

F

Jan 2017 - Sep 2017

FDevelopment Impact: Improved performance of Parliament

Proxy indicator:

1. Wastefulness of govt spending

2. Perception of trust in natl govt

Value 2.1, ranked 135/148 in 2013/14

63% yes (2007-2011)

Value 2.2

65%

Value 3

70%

Third yearGlobal Competitiveness Report

UNDP Human Devt Report

AfDB project team

AfDB project team

Perception by business community, conducted through the Executive Opinion Survey of the World Economic Forum.

% of those responding “yes” to the Gallup World Poll (2012) question: In this country do you have confidence in the national government?

Outcome Indicator One:Performance of Parliament Staffers improved

Qualitative TBD following baseline survey

- - Increase 1st year & last year

Baseline survey conducted upon project launch and project closure

AfDB project team

Outcome Indicator Two: Social Inclusion and Decentralization concepts mainstreamed

No of social inclusion and/or decentralization related briefs developed and presented

0 in 2013/4 - 2 6 Third year Project completion reports & parliament deliberations

AfDB project team

Briefs developed that favor social inclusion and decentralization, presented for discussion in Committees


Intermediate Result (Component One): Capacity Building of Parliament’s Permanent Staff

Intermediate Result indicator One: Dedicated and tailored capacity-building programs established based on skill gaps identified

Qualitative Large gaps in skills exist

Needs assessment conducted

Baseline Performance

800 persons trained (40% women)

Annual Project progress report

AfDB project team

survey conducted

Technical and Administrative Training programs implemented

Intermediate Result indicator Two: Awareness raised on local development issues

Quantitative & qualitative

Desk work forms basis of knowledge. Weak linkages with realities on the ground.

4 field visits organized

6 field visits organized

Performance survey conducted

Annual Satisfaction survey conducted & Project progress report

AfDB project team

Intermediate Result (Component Two): Institutional Development

Intermediate Result indicator One: Organizational structure with clear roles and responsibilities fine-tuned and circulated

Qualitative Structure reviewed by CAOA

Fine-tuning of 1 structure

ToRs for functions of 5 specialized committees developed

20 Job Descriptionsdeveloped

ToRs for functions of 18 specialized committees developed

54 Job Descriptionsdeveloped


AfDB project team

Intermediate Result indicator Two: Improved coordination and staff performance due to use of IT equipment

Quantitative Large IT requirements, no website;

Rapid IT assessment

Performance survey

IT equipment purchased and operational

Website operational &

Performance survey conducted

Annual Project progress report & comparison of performance surveys

AfDB project team

Intermediate Result indicator Three: Improved transparency through use of e-voting system

Quantitative Limited electronic voting system

E-voting assessment reviewed and system


AfDB project team

operationalIntermediate Result (Component Three): Case Study: Mainstreaming Social Inclusion and Decentralization

Intermediate Result indicator One: Social Inclusion and Decentralization Mainstreaming Program developed and concepts used

Number of trainees; Use of concepts

No program exists Program developed

25trained; 2 briefs developed

50 trained; 4 briefs developed

Annual Project reports AfDB project team

Intermediate Result indicator Two: Awareness on Best Practices from other countries raised through Study tours

Number of tours; qualitative

No program exists - 1 tour for 6 persons

2 study tours for 12 persons; recommendations made following tours

Annual Project reports AfDB project team

Strengthening Rule of Law: Effective & Transparent Delivery of Justice & Rule-making

A. Basic Project InformationActivity Name: Strengthening the Rule of Law: Effective and transparent delivery of justice and rule-making in EgyptCountry Name: Egypt Name of Implementation Support Agency(ies): OECD

and AfDBName of ISA Project Leader:

OECD: Miriam Allam/Andreas Schaal

AfDB: Carina SUGDEN/Prajesh Bhakta

Email of ISA Project Leader:

OECD: [email protected]/[email protected]

AfDB: [email protected] ; [email protected] Recipient Entity:

Justice Tarek Sayd Abd Elbaky, Vice President Supreme Court of Egypt, President of the Technical Bureau

Magued Sobhy, Judge, Member of Legislation Dept. Ministry of Justice

Name and Email of Recipient Entity Contact:

[email protected]

[email protected]

Total Amount Approved by the Transition Fund (US$): 4.121.000


Country co-financing: 2.000.000 and in-kind contributions

Other co-financing: 320.000

Total Amount Disbursed (Direct and Indirect in US$): AfDB: USD 20,180

OECD: USD 926,315

Steering Committee Approval Date: 6/11/2014

Project Implementation Start Date:9/1/2014

Project Closing Date:8/31/2017


Primary Pillar (select only one): Investing in Sustainable GrowthSecondary Pillar(s) (select as many as applicable):

Enhancing Economic GovernanceChoose an item.Choose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The Project aims at contributing to consolidating the rule of law and supporting an enabling business environment through (i) enhancing efficiency and effectiveness in the delivery of justice and (ii) strengthening transparency and effectiveness in the rule-making process.

The first objective addresses the need to improve the delivery of justice, by strengthening rule of law - which is addressed at the level of the Court of Cassation. The Project will aim to design and implement an automated case management system for the Court of Cassation, build capacity of Court of Cassation staff to use new systems, and reduce case delays and improve the provision of judicial services to the public.

The second objective is linked to the broader agenda of the Government on ensuring greater effectiveness of




mailto:[email protected]/[email protected]

the rule-making process. The Project will work with the MoJ to build capacities in legislative drafting and strengthen mechanisms for better regulation.Rating for progress towards achievement of objective:



Brief Summary of Project Implementation Status: The overall implementation of the activities of the project continues to be moderately satisfactory as noticeable progress has been made since its launch. This is especially remarkable given that the project was affected by the government reshuffling in March 2016 with a new Minister of Justice. The new Head of the General Legislation Department is fully committed to the project and the previously-agreed implementation plan. The continuous commitment, consistent communication, regular coordination and credible engagement from Ministry of Justice and Court of Cassation have ensured a steady progress. In particular, both Government-executed and OECD-executed components are reporting results, although at different pace. The AfDB component has finally kick started with the first disbursement for internet service provider for COC in June 2016. In addition, the project management of the activities has been enhanced following agreement between COC and Ministry of International Cooperation to provide technical backstopping services in areas of procurement and FM and this has led to the first procurement package to be close to signing. Progress was due to solid coordination between the Ministry of Justice, Ministry of International Cooperation, Court of Cassation, OECD and AfDB, and other donors on the ground. For example, a seminar organized on 14 March 2016 for the Ministry of Justice, gathered all major stakeholders, OECD and AfDB under component 2 to discuss: (a) lessons learnt from the capacity building programme of component 2.2; (b) the preparation of the legislative drafting manual and regulatory impact assessment guide (component 2.3), (c) the procurement procedures for component 2.5, and (d) the coordination between the OECD, AFDB, Ministry of Justice and Ministry of International Cooperation.

To-date for the AfDB component, only one contract has been paid so far (for internet services); all other activities are still under planning stages mainly due to weak capacity at COC to implement the activities. A list of equipment has been submitted such as computers etc which is still under review and a decision will be made by September as to what can be procured. No major disbursements are likely until early next year due to time to launch procurement process.

Main achievements so far include:

- Component 1.1. is almost completed: all capacity building activities have been delivered as of June 2016 with a recent high-level Study Visit to Paris, The Hague and Brussels. The remaining action plan of component 1.1. will be delivered by the 4th quarter in 2016. - Component 2.1 is completed.- Component 2.2. is almost completed. Remaining activities will be delivered by the end of 2016. - Component 2.3 and 2.4. are well underway with a joint agreement between the Ministry of Justice, the OECD and the AfDB on the implementation plan - Coordination assured with other Deauville Partnership countries and organizations, involved in Justice Sector, in particular EU Justice project

To ensure continued coordination, the project has been discussed at various regional meetings organised in the framework of the MENA-OECD Governance Programme that provides a forum for the coordination of country- and donor-led activities at the regional and national level. The MENA-OECD ministerial meeting on 3-

4 October will provide an additional opportunity to present the results of the MENA Transition Fund project to a broad and relevant audience.

In addition, the OECD and AfDB coordinate very closely with the other main donors working in the field of justice institutions. For example, the high-level seminar for the Court of Cassation in November 2015 was co-organized with the EU. The OECD and AfDB recognize that the complementarity between project activities is high. The regular donors’ coordination meetings in the Rule of Law sector, in addition to OECD & AfDB regular meetings with donors, are excellent examples of developing a consorted approach of managing the implementation process without duplication or overlap between activities. Moreover, it also provides administrators in each recipient entity with tools of better management without falling in a clamor of conflicting commitments given the ongoing changes in roles and responsibilities.

Add specific actions, as appropriate, that need to be taken over the next six-months to advance project implementation. This is a mandatory field to report on for red-flagged and watch-listed projects

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Expected Date of Delivery

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C. Implementation Status of Components Component 1: This component focuses on implementing key IT reforms, building capacities and establishing systems for an automated case management system in the court of cassation, with the view to significantly reduce the processing time spent on each case, reduce the current backlog of cases and enable a more efficient research and open access to court files and judgments

Previous Rating: Moderately Satisfactory

Current Rating: Moderately Satisfactory

Cost (US$): 2.397.000

Sub-component 1.1: Preparing and Implementing a Reform Action Plan of the Court of Cassation (OECD-executed)

Status of Implementation: The capacity building activities of this component have been completed in May 2016 with a study visit for senior judges to Paris, Brussels and The Hague. The programme of the study visit has been jointly elaborated between the International Relation Department of the Court of Cassation and the OECD. Based on the project proposal and objectives, the aim of this peer-to-peer exercise was to discuss justice administration systems in France, Belgium and international courts on key issues of access to judicial information and case management to reduce the backlog. In particular, the delegation met the President of the Belgian Court of Cassation, a 1st Chamber President of the French Court of Cassation, senior judges from the International Criminal Court and made a visit to the Peace Palace, including the International Court of Justice.

The discussions led to the identification of common operational aspects between the Courts, but also of organization differences. A particular emphasis was put on:

The dematerialization of judicial procedures, notably through platforms that facilitate the access to a

lawyer and to a court by providing the relevant information on judicial files and courts. The simplification of internal processes. For instance, this includes the implementation of a

mandatory amicable settlement (through conciliation or mediation) before going to trial. The discussions also highlighted the automation of exchanges of judicial files between the judicial

stakeholders, through digital platforms. The creation of an intranet system allowing judges, lawyers and clerks to exchange files on a specific case has significantly improved case management in the Courts of France and Belgium.

Creation of new filters in order to reduce the case backlog that the Egyptian Court of Cassation is currently facing. For example, in France and Belgium, specialized lawyers represent a filter in civil cases. On the one hand, they prevent illegitimate appeals to be presented in cassation. On the other hand, they ensure relevant grounds for the parties to the case.

Inspired by the study visit, the delegation expressed an interest in receiving further direct access to the OECD comparative analysis and data to help benchmark the Court’s achievements.

The study visit was preceded by a coordination meeting with the Vice-President of the Court of Cassation, the Director of the International Relations Department and the Technical Bureau, which was organized on 13 March 2016 in Cairo. The meeting supported the agreement on the priorities of the study visit and the timeline for the finalization of component 1.1. which is foreseen by December 2016.

Sub-component 1.2: Technical assistance to design an integrated modern automated court management system (Government-executed)

Status of Implementation: As the Court of Cassation has no previous experience on implementing AfDB projects, it has experienced significant challenges in meeting critical steps required to ensure the start of activities, including the opening of special accounts to receive the project funds; preparing procurement notice and terms of reference for the first sets of procurements, in particular for the recruitment of the project support staff- including procurement officer and financial assistant. During an AfDB mission in June 2015, agreement was reached on new implementation arrangements, with an enhanced role of the Ministry of International Cooperation, which has the capacity and experience required to execute AfDB projects. It was also agreed that the MoICT shall provide support on the technical specifications given their experience and knowledge of automated systems, as well as their overall coordinating role on technical issues of e-governance. Meanwhile, these agreements had to be formalized, this was only fully achieved by April 2016.

This has led to strong support being provided by the MOIC procurement officer to COC which enabled the first procurement for internet service provided for COC. This positive step has given substantial confidence to the COC team and is likely to be maintained for the rest of the procurements.

An AfDB mission is now scheduled for August 2016, in order to priorities next procurements and start with the technical assistance for integrated court management system.

Sub-component 1.3: Implementation of the integrated court management system (Government-executed)

Status of Implementation: This has not yet started as project is trying to coordinate the MENA TF activities with those of the EU funded project; the supervision missions in end Aug will help establish a realistic time frame for this activity to be initiated. Sub-component 1.4: Capacity building and training of users for the new systemStatus of Implementation: This will take place only once the system is in place (1.3)Sub-component 1.5: Dissemination to stakeholders, dialogue with private and NGO sector (OECD-executed)

Status of Implementation: The project objectives were disseminated to major stakeholders during the project launch in September 2014 and the high-level seminar organized for the Court of Cassation on 15-16 November 2015. To design the communication strategy, a meeting with the IT team of the Court of Cassation was organized on 27 April 2015 and the draft communication strategy presented on 13 March 2016. The Court of Cassation is currently reviewing the strategy and will complete the missing information by October 2016. In addition, dissemination of the project results to external stakeholders is provided through various MENA-OECD meetings. For example, during the MENA-OECD Steering Group meeting on 9 November 2015 in Rabat, the Vice President of the Court of Cassation presented on the reforms of the administration of justice in Egypt.In addition, the OECD and AfDB attend the regular “Rule of Law – Donors coordination meeting “, organized under the current chairmanship of the EU. The meeting discussed the status of implementation for each project and explored areas of synergistic collaborations between donors.

Component 2: Transparent and effective rule-making. This component will focus on implementing new processes and applying international good practices for transparent and effective rule-making in the Ministry of Justice. The component includes the piloting of the new procedures and techniques to draft priority legislation in line with the new constitution. The component thus focuses on the processes, tools and skills to draft good legislation.



Cost (US$): 1.151.000

Sub-component 2.1: Implementation plan for participatory and transparent rule-making (OECD-executed)Status of Implementation: Monthly consultations were held to ensure a smooth implementation of component 2.1. The mapping exercise started on 28 April 2015 by the Department for Legislation and the OECD. The objectives of the mapping exercise are to a) provide a background report for consideration of possible reforms by the Legislative Department; b) provide an overview of and references to international practices and procedures for drafting legislation in OECD countries; c) provide some preliminary headings for a Manual and needs assessment on a training and development programme. The draft was submitted to the Ministry in May 2015 for validation. Discussions that led to the completion of the exercise were then held in September/October 2015 at the occasion of the study visit to France. Component 2.1. is thus completed. Sub-component 2.2: Capacity building to improve transparent rule-making (OECD-executed)

Status of Implementation: After successful deliberation in June 2015, the Ministry of Justice and OECD agreed on a learning programme, including 6 study visits and 2 seminars for the members of the Legislation Department. The study visits are organized in the format of a “stage” over 2 weeks. The first study visit took place in France from 23 September – 2 October 2015. It met the expectations of the Ministry of Justice and helped advance the preparation of a Guide for the drafting of legislation. Upon request from the Ministry of Justice, the second study visit was organized to the Netherlands 23 November – 3 December 2015, the third study visit to Rome (1-12 February 2016) and the fourth study visit to Madrid (2-11 May 2016). The study visits have shaped further options for consideration for: 1. The development of a Guide for the drafting of legislation 2. The use of Better Regulation tools such as Regulatory Impact Assessment and improved consultations. In this respect, consideration could be given to the development of an overarching policy on the quality of legislation. The 2012 OECD recommendations on regulatory governance and policy could provide valuable guidance in this field.

On 14 March 2016, the Ministry of Justice and OECD jointly organised a workshop to take stock of the lessons

learnt from the study visits and agree on the implementation plan for the legislative drafting manual, guide on regulatory impact assessment and the web-portal (component 2.3 and 2.5). .

Upon request of the Ministry of Justice, the remaining 2 study visits will take place to Canada from 18-28 July 2016 and Ireland (beginning of September). Component 2. 2. is to be completed by October 2016 with a seminar on drafting instructions in Cairo. Sub-component 2.3: Implementing processes and tools for effective and transparent rule-making (OECD-executed)

Status of Implementation: With the support of the study visits organized under 2.2. and a series of advisory sessions, the process to draft a legislative drafting and regulatory impact assessment guide has been initiated and an outline submitted to the Ministry of Justice. The aim of the guide is to provide, among other matters, the basis for the development of a policy on regulatory quality and building capacities in policy making and legislative drafting. The component is expected to be finalized by June 2017.Sub-component 2.4: Provide implementation support to draft new legislation

Status of Implementation: Sub-component 2.4 is discussed under the sections for sub-components 2.2 and 2.3.(OECD-executed)Sub-component 2.5: Database of legislation and best practices in legislative drafting (Government-executed)

Status of Implementation: No action has been taken yet as no one of the activities under the MOJ have been initiated so far.

Component 3: Project management, coordination and monitoringThis component will entail support to ensuring all project activities and tasks are executed, coordination among all actors involved in project implementation, fulfilling and monitoring procurement and fiduciary requirements and audits, and monitoring and evaluation of project outcomes and intermediary results. (Government-executed)



Cost (US$): 222.000

Status of Implementation: In April 2016 the Bank and the Ministry of International Cooperation formalized new implementation arrangements through the signing of a letter of agreement. As has been reported previously, neither CoC or MoJ had the capacity to manage implementation of the project, therefore new arrangements have been agreed and finalized, which will now allow for smoother implementation of the Gov component.


(US$)(x)


(y)Total (US$)


OECD: 1,500,000 USDAFDB: 2,520,000 USD

OECD: 1,500,000 USDAFDB: 2,520,000 USD


OECD: 619,000 USDAFDB: 2,520,000 USD

OECD: 619,000 USDAFDB: 2,520,000 USD

Actual Amount OECD: 825,452 USD OECD: 825,452 USD

Disbursed (c): AFDB: 20,180 USD AFDB: 20,180 USD

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)

Year Jan-June Jul-Dec Total by Year End

2016 OECD: 250,000 USDAFDB: 25,000 USD

OECD: 250,000 USDAFDB: 25,000 USD

2017 OECD: 250,000 USDOECD: 174,548 USDAFDB: 500,000 USD


F. Disbursements of Funds for Indirect Costs (US$)

Disbursed (US$)1 Available (US$) Total (US$)


OECD: 137 USDAFDB: 54,000 USD


1 While the budgeted amount of indirect costs was 101,000 USD, the actual amount incurred was 100,863 USD [as per OECD Financial Regulations on VC administrative cost recovery, BC (2011)40].


Project Development Objective (PDO): The proposed project development objective is to strengthen the application of rule of law and an enabling business environment through enhancing effective and transparent delivery of justice and inclusion in the rule-making process.

PDO Level Results Indicators*Unit of

MeasureBaseline





definition etc.)Sep 2014 – Sep 2015

A

Oct 2015 - Sep 2016

F

Oct 2016 - Sept 2017

F

Indicator 1: Automation of the Court of Cassation

Quantitative

Not automated

n/a yes System in place

once Project progress reports

Project Implementation Team (PIT). CC

System designed, equipment and IT installed

Indicator2: System designed that allows for effective and consistent stakeholder engagement and input into law drafting

Quantitative

n/a yes System in place

annually Project Progress Reports, Website verification

PIT, MoJ Stakeholder consultation process in rule making elaborated

Indicator 3: Legislation drafted according to International good practices

Quantitative

none n/a yes Four Second and third year annually

Project progress reports

PIT, MoJ Number of hits on the platform

Indicator4 : Capacity Built: Number of Staff trained in IT

system use Number of MoJ Staff trained in

drafting legislation Number of peer review

exchange programmes Number of modules and toolkits

developed Number of secondments, OECD,

CC etc

Quantitative

none n/a 206 study visits3 seminars10 Toolkits

1

1000 on IT system use50 on legislative draft.6 toolkits

1

Annually Project Monitoring Unit

PIT Total number of beneficiaries benefitting from capacity building for all components of the project combined


Component 1: Supporting the efficient and effective delivery of justice by the Court of Cassation

Indicator 1: Automated court management system designed

Quantitative

Not automated

System designed

n/a n/a Once Project progress report

PIT, CC Design of automated court management system

Indicator 2: Work flow of the Court of Cassation automated

Qualitative Rudimentary case recording system not linked

n/a n/a System established

once Project progress report

PIT, CC Business processes automated and linked

Indicator 3: Archiving system for the Court of Cassation developed

Quantitative

Paper archive

n/a n/a All new cases archived electronically

once Project progress report

PIT, CC Electronic archive for CC in place

Indicator 4: Dynamic and Interactive Website for the CC

Qualitative Website not dynamic or interactive

n/a yes Judgments by CoC available on line

Annually Project Implementation Reports

PIT, CC Type and volume of information accessible on website, number of hits

Indicator 5: Legislation for automation enacted

Quantitative

Draft legislation to be reviewed

n/a yes n/a once Legislative reports, Project progress reports

PIT, MoJ Legislation to allow electronic signatures and authentication of electronic documents

Component 2: Support Transparent Rule-Making in the Ministry of Justice

Indicator1: Guidelines and Toolkits developed

Quantitative

None 6 4 n/a once Project Progress Reports

PIT Number of tool kits developed

Indicator 2: Staff trained on participatory rule making and impact assessment

Quantitative

Capacity not good

12 12 Yes Annually Project Implementation Reports

PIT Number of staff trained in legislative techniques /Number of trainings held

Indicator 3:Pilot legislation drafted/reviewed according to international best practices

Quantitative

n/a yes Yes Annually Project Progress Reports

PIT, MoJ Legislation drafted

Indicator 4: User-friendly e-consultation platform established

Quantitative/

none n/a yes Yes Second and third year annually

Website verification,

PIT, MoJ Number of users on the platform

Qualitative project progress reports

Indicator 5: Workshops and staff assignment to OECD

Quantitative

None Yes yes Yes Annually Project Progress Reports

PIT, OECD Number of staff assignment and workshops

Egyptian Central Bank Clearing & Settlement Depositary System for Government Securities

A. Basic Project InformationActivity Name: Egyptian Central Bank Clearing & Settlement Depositary System (CSD) for Government Securities

Country Name: Egypt Name of Implementation Support Agency(ies): European Bank for Reconstruction and Development (EBRD)

Name of ISA Project Leader: Hannes Takacs/Hugh Friel

Email of ISA Project Leader: [email protected]; [email protected]

Recipient Entity:

Central Bank of Egypt

Name and Email of Recipient Entity Contact:Salwa Ayoub, Senior IT Project ManagerE-mail: [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 3,220,000

1,220,000 from AfDB1,000,000 from EBRD’s SEMED Multi-Donor Account1,000,000 from CBE



6/11/2014


7/1/2014


9/1/2017



Secondary Pillar(s): Investing in Sustainable GrowthInclusive Development and Job CreationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project has three key strategic objectives which are: i) to reduce substantially the accumulation of potential systemic risks related to payment systems and settlement; ii) to enable the introduction and pricing of new instruments; iii) to allow for better pricing of government securities and creation of a benchmark yield curve which will facilitate the growth of the corporate bond market.





The project progressed significantly during the latest 6-month reporting period: procurement for the core systems (Component 2) started, bidders were pre-qualified and relevant momentum was maintained. CBE is fully committed to the project. During the reporting period the work on the Components 1, 2, 4 and 5 was under implementation at various degrees of progress. Sub-component 2.4, the Yield Curve Pricing Model, was already successfully delivered in the previous reporting period. The EBRD project team conducted various on-site missions, organized a number of conference calls to coordinate project implementation and is in permanent contact with CBE to monitor progress. The co-operation between CBE and EBRD works very well and a

dedicated CBE team is working on the project. EBRD is also in frequent contact with AfDB to ensure that the Project Management Office (PMO) technical assistance project can be procured as soon as possible. During the reporting period AfDB and EBRD signed a “Project Implementation Agreement (PIA)” to use EBRD Procurement Policies and Rules for AfDB’s US$ 200,000 contribution to Sub-Component 2.1.

Current status: Yield Curve modelling component: finalized Project scoping and implementation support: on-track (Consultant hired, Phase 1 finalized and Phase 2

started) Legal consultant: on-track (Consultant hired and work almost complete) Project Management Office for CBE (AfDB funded): delayed (TORs ready, Consultant selection in

progress) System components: procurement started, pre-qualification finished, on-going bidding process (as

planned)

The tender process for the component 1 project “Scoping and implementation support” (USD 600,000) was finalized and the contract was awarded to Bourse Consult. Contract negotiations with the first ranked company, “Bourse Consult (UK)” were successful, the contract signed and the Consultant started working. The functional requirement document for the core system components as well as the tender documents for Component 2 “Core Systems” were finalised, except for Sub-Component 2.5 “Trading Platform” where a decision of CBE, EGX, MOF and EFSA on the set-up of the trading platform is still pending.

The two-stage procurement process for the core systems (except for 2.5) started in the reporting period and a pre-qualification of bidders took place.

As far as disbursements are concerned, as explained to the Steering Committee on previous occasions, major disbursements under the project were not expected in the first 12-18 months of implementation. This is due to around 80 per cent of the budget being linked to the procurement of core system components which are planned to be delivered at the later stages of project implementation. Having said that, disbursements are envisaged to start accelerating in the coming months, as outlined below in section E, but larger disbursement will only take place in the last 12 months of project implementation based on system procurement. The forecasted disbursement of US$ 350,000 for 1H 2016 was exceeded with a total disbursement of US$ 379,809 during the reporting period.







C. Implementation Status of Components Component 1: Scoping phase and Implementation SupportGiven the complexities involved in developing the various streams related to a functioning Clearing, Settlement and Depository (CSD) system at the CBE, a suitably qualified Consulting Company was tasked with scoping and implementation support for this CSD project. The scoping consultant prepared tender

documents for the selected project components within the reporting period which were approved by CBE.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 600,000 (100,000 + 500,000)

Status of Implementation: Phase 1 of the scoping and implementation support component was finalised in June 2016 and Phase 2 implementation support of the assignment started. Full set of tender documents developed and approved by CBE.

Component 2: Core System Components



Cost (US$): 4,450,000

Sub-component 2.1: Primary Market (Auctioning System)Status of Implementation: Pre-qualification of suppliers finished; RFP documents sent out to qualified bidders; on-going bidding process. Contract award expected for Sept. 2016Sub-component 2.2: Secondary Market (CSD & Collateral Management System)Status of Implementation: Pre-qualification of suppliers finished; RFP documents sent out to qualified bidders; on-going bidding process. Contract award expected for Sept. 2016Sub-component 2.3: Repo AuctionStatus of Implementation: Pre-qualification of suppliers finished; RFP documents sent out to qualified bidders; on-going bidding process. Contract award expected for Sept. 2016Sub-component 2.4: Yield Curve Pricing ModelStatus of Implementation: FinalizedSub-component 2.5: Trading PlatformStatus of Implementation: Recommended market set-up information prepared by Consultant. Decision of CBE, EGX, MOF and EFAS on trading platform set-up is pending. System procurement for subcomponent 2.5. will start as soon as decision was made.Sub-component 2.6: Project Management Support for CBE (added)Status of Implementation: Ongoing procurement process based on AfDB rules. Delayed.

Component 3: Interface with other Systems

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 430,000Sub-component 3.1: Interface with MCDR & EGXStatus of Implementation: n/a as depending on selected component 2 systemsSub-component 3.2: Clear Stream and Euroclear InterfaceStatus of Implementation: n/a as depending on selected component 2 systemsSub-component 3.3: Bond Dealer InterfaceStatus of Implementation: n/a as depending on selected component 2 systems

Component 4: Data Warehouses & Information Dissemination Platform

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 100,000Status of Implementation: 2 companies pre-qualified for the data warehouse platform; pre-qualified bidders received RFP documents; on-going bidding process. Contract award expected for Sept. 2016

Component 5: Legal & Regulatory Framework Reform

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 50,000Status of Implementation: Procurement process finished and the contract was awarded to Thebes Consultancy in December 2015. Work already commenced in December 2015. The assignment will conclude in August 2016.

Component 6: Hardware

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 1,000,000Status of Implementation: hardware will be in-kind contribution from Central Bank of Egypt


(US$)

(x)


(y)

Total (US$)


3,510,000 0 3,510,000


600,000 0 600,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 - 0 02015 15,000 4,992 19,9922016 379,809 1,150,093 1,529,9022017 900,000 1,060,106 1,960,1062018 0 0 02019 0 0 0


154,500 187,400 341,900


Project Development Objective (PDO): The project has three key strategic objectives which are: i) to reduce substantially the accumulation of potential systemic risks related to payment systems and settlement; ii) to enable the introduction and pricing of new instruments; iii) to allow for better pricing of government securities and creation of a benchmark yield curve which will facilitate the growth of the corporate bond market.


MeasureBaseline


Frequency

Data Source/

Methodology


Description (indicator definition etc.)Jul 2014 -

Jun 2015A

Jul 2015 – Jun 2016

A

Jul 2016 – Jun 2017

F

Aug 2017 - Sept 2017

FIndicator One: Transaction efficiency increase (volume of trading)1

% Project Start

- - - +15%Semi-

Annual


Implementation Manager

Percentage increase in trading volume of government treasuries compared to pre-project levels.

Indicator Two: Settlement efficiency increase (% of trades settled automatically) 2

% ProjectStart - - - 60%

Semi-Annual



Percentage of trades settled automatically

Indicator Three: Uniform access to market by participants (minimum number of bond dealers with direct access) 3

No. ProjectStart

- - - 2Semi-

Annual



Number of players other than banks, granted direct access to the system compared to pre-project

Indicator Four: Secondary market trading of treasury bonds 4

% Project Start

- - - +20%Semi-

Annual



Percentage increase in trading of treasury bonds in the secondary market

Indicator Five: Transparency and Dissemination (publish yield curve and website with debt trading statistics) 5

Project Start - - - Weekly

Semi-Annual



Frequency of Publication


Intermediate Result indicator Automated Automated Central Implementa

1 Systems will not be in place before Q3-2017, so impact can only be assessed after the implementation of the fully electronic system components2 Systems will not be in place before Q3-2017, so impact can only be assessed after the implementation of the fully electronic system components3 Systems will not be in place before Q3-2017, so impact can only be assessed after the implementation of the fully electronic system components

4 Systems will not be in place before Q3-2017, so impact can only be assessed after the implementation of the fully electronic system components5 Systems will not be in place before Q3-2017, so impact can only be assessed after the implementation of the fully electronic system components

One:6 Primary Market Auction System 50% complete

Primary Market Auction System fully completed

Bank of Egypt

tion Manager

Intermediate Result indicator Two: 7

Automated Secondary Market Clearing and Collateral Management System 50% completed

Automated Secondary Market Clearing and Collateral Management System fully completed



Intermediate Result indicator Three:

Yield curve methodology analysis for Egyptian market complete

Yield Curve generation



Intermediate Result indicator Four: 8

Trading platform analysis for optimal design complete

Trading platform for government securities operational



Intermediate Result Indicator Five: 9

Analysis of optimal linkages

Local market linkages operational



Intermediate Result Indicator Six: 10

Design of warehouse and website

Data warehouse and debt capital markets website operational



Intermediate Result Indicator Seven:11

Analysis of legal and regulatory set upRecommendations for change

Analysis of legal and regulatory set upRecommendations for change

Legal and regulatory requirements are consistent across all modules



6 Procurement will not be finished before Q3/20167 Procurement will not be finished before Q3/20168 Procurement will not be finished before Q3/20169 Procurement will not be finished before Q3/201610 Procurement will not be finished before Q3/201611 Analysis of legal and regulatory set-up is depending on planned market design

MSME Support Programme in Egypt and the Social Fund for Development

A. Basic Project Information

Activity Name: MSME Support Programme in Egypt and the Social Fund for Development

Country Name: EgyptName of Implementation Support Agency(ies):

European Bank for Reconstruction and Development (EBRD)

Name of ISA Project Leader:Reem El Saady

Email of ISA Project Leader:[email protected]

Recipient Entity: Social Fund for Development of Egypt

Name and Email of Recipient Entity Contact: Aya [email protected]

Total Amount Approved by the Transition Fund (US$):2,936,080

Additional Funds Leveraged and Source(s), if any (US$):EUR 625,000 (equivalent of US$ 812,500) from EBRD’s SEMED Multi-Donor Account



2/20/2013


4/1/2013


4/1/2018



Secondary Pillar(s):Inclusive Development and Job Creation

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The Project’s objective is to strengthen the capacity of the SFD to support the MSME sector in Egypt with a particular focus on promoting women entrepreneurship.


Satisfactory



Since the last semi-annual report, the project has progressed further, albeit the evolving political landscape in Egypt, in particular with regard to SME strategy, has continued to bring about some challenges, leading to changes in the implementation timetable of some of the activities.

The majority of consultants to be involved under Component 1 have been retained and a number of key deliverables have been delivered (see below for further detail). Component 2 is on track and progressing well having reached more than 150% of the expected number of recipients. Implementation has been especially successful in delivering results in terms of number of women supported via advisory projects or engaged in trainings while at the same time providing capacity building to SFD through on the job transfer of skills and specific capacity building trainings to SFD staff. The joint SFD and EBRD team successfully assisted 71 women entrepreneurs carrying out 90 advisory projects with local consultants out of a target of 60. 158 women have been trained under the programme and the team has successfully engaged with around 400 women across the country in Market Development Activities promoting access to advisory services and finance in cooperation with SFD.

Upon successful completion of Phase I of Component 2, it is proposed to expand the pilot and request the release of


funds approved for a second Phase. Phase II will build on the experience and lesson learnt from the pilot project, and is subject to a strong commitment by the SFD to dedicate sufficient staff and resources to continue implementation of their new modus operandi of facilitating advice as opposed to directly delivering it. Under Phase II, it is envisaged to deliver up to 65 advisory projects, mentoring, consultancy trainings, capacity building activities for SFD non-financial services staff and visibility and networking events. A project restructuring memo outlining the structure of Phase II, updated targets for relevant indicators, budget size and implementation timeline, will be submitted to the Steering Committee in due course.

With regards to Component 3, the envisioning and planning phases are now largely complete, and the development and implementation phases are in their early stages. The project progressed is assessed at 55 per cent, with completion seen in September 2016.







Component 1: “Legal and regulatory reform to strengthen SFD advocacy and policy formulation capacity to support the MSME sector” (SFD-executed): The Component’s objective is to provide SFD with technical assistance and advice to allow it to fulfil a policy and advocacy role in the MSME sector in Egypt.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 919,000

Sub-component 1.1: Developing a national strategy for enhancing the legal and regulatory environment of MSMEs and promoting an advocacy and policy function within the SFD

Status of Implementation: The Senior Policy Advisor was hired to prepare an analysis of the legal and regulatory obstacles for MSME development, due to feed into the National Strategy for the MSME sector that the SFD is preparing. A first draft of the Policy Paper has been circulated within the SFD and EBRD. However, the Senior Advisor was unable to finalise the Policy Paper in an acceptable manner and, after numerous attempts to improve on the quality of the Paper, his contract was terminated. Another consultant has been recruited in order to complete the Task. The consultant is currently working on the Policy Paper to be presented to the SFD.

An International Consultant has been retained, whose role consists of advising the SFD on the international experience of regulation of the MSME sector and to complement the Senior Policy Advisor’s Policy Paper with a comparative perspective. The final paper presenting regulatory governance of the micro, small and medium sized enterprise sector comparatively was finalized in February 2016, presented and accepted by the SFD in the meantime. Recommendations will be fed in the aforementioned Policy paper.

Sub-component 1.2: Reviewing the Presidential Decree N.40 of 1991 establishing the SFD and the law on Small Enterprise (Law 141/2004) to clarify SFD’s mandate

Status of Implementation: This sub-component is still on hold as the political context for the MSME sector is still unclear (the Ministry of Industry and Trade had been given the MSME portfolio in Summer 2014 but this portfolio has now been withdrawn). However, SFD management has indicated that the work at the technical level could still be undertaken, so measures will be taken to activate this sub-component soon.

Sub-component 1.3: Implementing recommendations for a better operational environment for MSMEs

Status of Implementation: The Legal and Regulatory Consultant in charge of this component started the assignment in October 2014 and has worked very diligently on the assignment, which focuses on the One-Stop-Shops (OSS) that are operated by the SFD and how they can be reformed in a way that would ultimately improve on the operational environment for MSMEs and encourage formalization of businesses. In particular, a number of key

deliverables have been received and discussed within the SFD:1. A Cost-Benefit Analysis of the OSS, providing in particular the model for calculating and reviewing the

Analysis (fine-tuning the basic assumptions). Such Analysis had not been done in the past and this is a key component of the reform of the OSS, ensuring that they provide value for money

2. A Unified Model for all OSS: Egypt presents a unique structure in that a number of public or quasi-public organisations are operating OSS. As a result, the procedures are very disparate. As Egypt is likely to move towards an e-government model (where licenses, permits and authorizations would be requested on-line), a inter-ministerial committee recommended that a uniform Model is developed which would offer a vision of common denominators that the different OSS operating in Egypt could undertake to subscribe, thereby ensuring a consistent approach to business registration while preserving the different level of services and client-focus approach that the different OSS provide. The Consultant produced the main lines of such Model.

3. An OSS Improvement Implementation Plan: The Plan, which builds on a previous diagnostic study, proposes an important reform of the OSS which would significantly improve the easiness of obtaining all necessary licenses and permits for MSME to start operating. The Plan will need to formally discuss with SFD management and approved.

4. An official presentation of the recommendation is currently being agreed with the SFD and is expected in the Q4 2016.

Component 2: Promotion of women entrepreneurship (EBRD-executed)The implementation of the pilot project to promote women entrepreneurship is approaching its end date in April 2017. However, the pilot project required four years (instead of originally envisaged two years) to implement, with funds to be fully disbursed within the project end date. This allowed the project to reach more women entrepreneurs (within the same budget allocation), and ensure that the SFD gained experience, knowledge and best practices in the promotion and support of small businesses and women entrepreneurs in particular. Based on the already evident success of the pilot project, the EBRD is proposing to implement a second Phase of the Component over two years until mid-2019 and expand activities to other geographic regions. Activities will include both advisory projects for female-led enterprises and capacity building for SFD staff.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,625,000

Sub-component 2.1: Implement four year pilot project to promote women entrepreneurship

Status of Implementation: Implementation has been especially successful in delivering results in terms of number of women supported via advisory projects or engaged in trainings, networking events and international mentoring while at the same time engaging SFD staff in project delivery; transferring on-the job knowledge and skills at all levels of implementation of the programme. The joint SFD and EBRD team successfully assisted 71 women entrepreneurs out of a target of 60 carrying out 90 advisory projects with local consultants, out of which 41 have been successfully completed. 158 women have been trained under the programme and the team has successfully engaged with around 400 women across the country in Market Development Activities promoting access to advisory services.

Business Advisory Services (BAS) projects: To date, the programme has successfully started 90 BAS projects supporting 71 women entrepreneurs. The programme helped women access the required Know-How to grow their business by raising their understanding of the potential benefits of advisory services. Out of the 90 projects, 28 were located in the Delta and Upper Egypt regions. Most of the business advisory services implemented were in the field of management improvement through the implementation of ERP (Enterprises Resource Planning Systems) and Management Information Systems. Improving marketing performance was also a priority and it was provided through advice on developing on-line marketing strategies, creating websites, building solid corporate identities and improving marketing skills amongst employees. Improving financial management was also requested by a number of women entrepreneurs and local consultants were contracted to develop computerized financial control systems as well as financial policies and procedures manuals. The team has managed to identify and register 40 new consultants from Cairo, Assiut, Sohag and Gharbia engaging them in BAS projects. The team is also working on developing the supply and quality of the consultancy market; 3 training courses in Delta and Upper Egypt will be delivered during the second half of 2016 to help consultants improve their skills and reach new MSME clients.

In addition, through its Non-Financial Services department, SFD has managed to facilitate business opportunities for women entrepreneurs improving their access to markets :

o 16 marketing opportunities through local exhibitions were provided.o 5 marketing opportunity through international exhibition was provided.o 5 opportunities to participate in governmental biddings were facilitated.o 3 services for bar-coding of products were provided with 50% discount. o 7 matchmaking opportunities was provided to linkage women products with other women clients or NGOs

Ongoing Advisory Support (Coaching): The team started 6 coaching projects out of 10. Ongoing business advisory support/coaching is an instrument designed to support specifically women entrepreneurs under the WiB initiative. It is developed to address the established need for medium-term general business coaching utilizing local consultants, as a follow on or in addition to standard task-specific BAS projects.

Mentoring programme: The team has built on existing EBRD synergies with the Cherie Blair Foundation (CBF) to create a partnership under this programme to provide international mentoring to a number of women mentees; preferably women leading larger SMEs, who speak English and who would beneficiate from exposure to international markets. CBF will start pairing a couple of mentees, where 10 women entrepreneurs have been engaged with CBF in two intakes to receive their international mentoring.

Entrepreneurship training courses: in order to enhance the entrepreneurial skills and technical capacities of women entrepreneurs, the programme has designed and delivered courses training for over 158 women:

- Fashion design and Pattern Making Training ( 1 round): the training’s main objective was to improve the technical skills of women entrepreneurs working in the field of readymade garments manufacturing and trading. The training was delivered in June 2014, for 10 women entrepreneurs in Tanta. The choice of Tanta city was based on the fact that most of the small sized readymade garments industries are concentrated in Gharbia Governorate and specifically in Tanta and Mahala cities. The training was successful and trainees’ feedback was very positive; many of them have asked to take a follow-up training: “Advanced Fashion and Pattern Making Training”. Most of the trainees stated that the training they have received will positively impact the quality of their production and will increase their export capabilities.

- Digital Strategy and Online Marketing Training (3 rounds): the training’s main objectives were to increase local women-entrepreneurs knowledge of internet marketing, e-business commerce, e-marketing tools (SEO, Google AdWords, Google analytics) and Social media; to enhance the online presence of local women-owned/managed SMEs and finally to provide local women-owned/managed SMEs with the know-how to attract new clients, increase sales, build a brand, increase market presence via online tools. The training was successfully delivered in Sep 2014 to 58 women entrepreneurs in Cairo. As a result, a number of trainees started applying the online tools acquired during the training and a considerable number requested advisory services in the field of on-line marketing and web site development. The team is also planning on delivering this training in Tanta where demand for marketing skills amongst women entrepreneurs is growing.

- Fundamentals of Financial Management (2 rounds): the training’s main objectives were to equip women entrepreneurs with basic accounting and financial management skills to enable them to use financial information to make better business decisions. Understanding financial information and its implications on business operations will allow managers/owners to make better decisions and stay ahead of their competitors. The training was successfully delivered to 54 women entrepreneurs in both Cairo and Tanta. Most of the trainees stated that the training they have received will make them more familiar with financial issues and ratios.

- Leadership in Action (2 rounds): the training main objective was to transfer skills and knowledge on effectively running and growing a small business including leadership skills, presentation, communication, negotiation and sales, work-life balance. The training was successfully delivered to 36 women entrepreneurs in Cairo.

Impact and evaluation: 33 projects have been evaluated one year after the project completion of which 70% are rated successful or highly successful; 84% of assisted enterprises have reported an increase in annual turnover

with a median of 55%. 55% of assisted enterprises have reported an increase in number of employees, on average by 52%, creating 200 new jobs. 27% of assisted enterprises raised finance externally for more than EUR 21.8 million. Linking with SFD partner financial institutions: One of the key activities of the programme is to build links with different local and international financial institutions in order to improve access to credit for the assisted women entrepreneurs. In this regard, the programme has managed to facilitate financing opportunities to a number of women entrepreneurs through the direct lending portfolios of SFD, NBE and GroFin.

Networking and Visibility Events: Visibility, networking and dissemination activities or Market Development Activities (MDAs) are considered for both EBRD and SFD as interactive platforms to showcase best practices and successful stories of women entrepreneurs. These activities are aligned with SFD’s efforts to create a heightened public awareness of the role of women in entrepreneurial activity and the contribution they make to the economy and to society in general, and promotion of entrepreneurship as a viable and feasible employment opportunity for women. 25 Market Development Activities including “round table discussions, networking & visibility events and group meetings” have been conducted to increase the visibility of the programme amongst the business community. These MDAs were attended by almost 400 women entrepreneurs as follow:

3 Meetings and workshops with the graduates of the WEL programme (women leadership programme) implemented by the American University in Cairo and Goldman Sachs, this resulted in engaging (10) women entrepreneurs in the programme.

4 – 6 Roundtable table discussions with SFD staff and 37 potential women entrepreneurs at the SFD premises

Visibility event at the Premises of SFD in Giza regional office to attract 6 women entrepreneurs and local consultants.

2 Visibility events at the Premises of SFD in Delta regional office – Kalubia - to attract 13 women entrepreneurs and local consultants

Visibility event/ presentation conducted at the premises of the National Council for Women in Tanta Gharbia Governorate and was attended by 20 women entrepreneurs and local consultants

Visibility event/ presentation conducted at the premises of the National Council for Women in Assuit Governorate, Upper Egypt and was attended by 17 women entrepreneurs and local consultants

2 Visibility events/ presentation conducted at the premises of the Social Fund for Development in the regional office of Sohag in Upper Egypt and was attended by 23 women entrepreneurs

2 Roundtable discussion at the Social Fund for Development office in Cairo with 10 potential women entrepreneurs

Roundtable discussion with local consultants and women entrepreneurs as well as SFD staff in Tanta Gharbia Governorate in Upper Egypt attended by 6 women entrepreneurs.

On the job training session for 10 SFD staff working on the project on promoting the programme and attracting new clients – the training was conducted by SBS staff.

A networking event attended by 80 women entrepreneurs which was covered by regional and national media. The networking event was conducted in collaboration with the Business Women Association 21 as well as with the UNIDO programme for SMEs and the SFD.

A networking and visibility event : “Innovation Fundamentals” was organized in December 2014 in collaboration with SFD. The event was attended by Ms Soha Soliman SFD Managing Director well as by 90 women entrepreneurs and stakeholders. During the event a short presentation about the importance of innovation in business was conducted by a prominent speaker in the field of innovation and it was well perceived by the attendees.

1 Visibility events/ presentation conducted at the premises of the National Council of Women in Alexandria to promote the activities of the program. The event was organized in cooperation with SFD and was attended by 35 women. Round table discussion was held at SFD Alexandria office to increase the understanding of a group of potential clients about the importance of advisory service to improve their businesses. The event was attended by 15 women.

In addition, the team engages closely with local stakeholders including active business women associations, the

National Council for Women, the UN Women programme and the ILO in the project implementation. The project team represented by Reem El Saady is appointed as a member in the “National Women Economic Empowerment” committee headed by the SFD at the National Council for Women.

Building the SFD Capacity: The objective of this activity is to build the capacity of the SFD in a manner that enables the institution to sustain the implementation of the advisory services activities in the future and to maximize the benefits gained from the transfer of the EBRD Small Business Support team (SBS) knowledge. The activity is currently on-going and embedded in all of the activities through successful joint implementation of projects screening, diagnostics, monitoring but also in the design and implementation of the trainings and networking events. EBRD is also working with SFD on developing SFD advisory services specific guidelines and procedures with the objective of designing an Operational Manual before the end of the pilot programme.

In this regards, the following activities were successfully implemented:

o A Training Needs Assessment was conducted for SFD non-financial staff. A local consultant was hired to assess the training needs (TNA) and performance gaps of 32 SFD Non-financial officers all over Egypt. The TNA helped EBRD to develop and implement the appropriate training programme to build SFD team capacities and skills to support women entrepreneurs to access non-financial business development services.

o Based on the results of the TNA, an intensive 4 days Business Diagnostic Training Course was customized and delivered to 32 SFD Non-financial officers. The training was conducted by a hired local consultant who translated, customized and delivered one of EBRD’s international training courses in business diagnostic. The objective of the training was to build the capacity of SFD non-financial officers to understand how to diagnose different businesses performance using specific diagnostic tools. In addition, the training would build SFD staff capacity and help them better communicate and interact with MSMEs owners, building their trust and empathy and promote non-financial services.

o On the job training is also conducted through face to face interactions between EBRD team and SFD team on weekly basis.

o One day training was delivered to SFD officers from all the Egyptian governorates on how to use and promote the BUSINESS LENS among their women client. BUSINESS LENS is an innovative online tool developed by EBRD team in HQ to be used by women entrepreneurs to assess the performance of their businesses from different perspectives. The training was held in the SFD HQ and it was attended by 25 SFD staff.

o EBRD team has received the first draft of the operational manual prepared by SFD WiB team and facilitated by EBRD team. This OP manual is an important outcome of the pilot phase. The OP manual will be reviewed by EBRD in the light of existent activities and SFD mode of operation.

Sub-component 2.2:

Second Phase of the pilot, including delivery of advice to women-led enterprises and capacity building of SFD staff, as well as an expansion of activities to other regions

Status of Implementation:

In order to keep momentum and build on the successful completion of the pilot phase in April 2017, project team will propose to release the funds for a second phase to expand the pilot project into other regions and continue delivery of advice to women-led enterprises and capacity building to the SFD. To this end, a separate project restructuring memo will be submitted to the Steering Committee in due course. The below information only serves as an early indication of what is likely to be proposed as the scope of Phase II. The 2nd phase of the project will build on the experience accumulated to date and lessons learnt, including the following:

Target enterprises: Throughout the implementation of Phase I, the EBRD and the SFD have learnt that most women-led enterprises are small and micro-enterprises, which require relatively basic business services. As a result, in Phase II, it is expected that the average project cost would be around EUR 5,000, reflecting the actual disbursements from Phase I.

Scope: As a consequence of their size, most women-led enterprises require advice leading to immediate and tangible result, such as implementation of ICT solutions or management information systems. Under Phase II, the project team will continue supporting such services, but will also encourage enterprises to consider more sophisticated services.

Networking events: Opportunities provided to women entrepreneurs for networking under Phase I was particularly well received by beneficiaries, as it enables them to increase their confidence, raise their profile as well as access new business opportunities. Under Phase II, the team will continue making available such opportunities and will organise a number of networking events across respective Governorates.

A structured approach to delivering advice: Businesses best benefit from advice provided through professional consultants with a track record and experience in delivering high level support in their area of expertise. It is therefore recommended that institutions with a public and development mandate such as the SFD focus on facilitating services to enterprises and ensuring application of best practices, rather than providing advice in-house. This approach will be continued under Phase II.

Recognition of the value of advice and non-financial services: At commencement of the project, the SFD primarily focused on providing access to finance, whilst the provision of non-financial services seemed secondary. Throughout the implementation of the project, the EBRD has witnessed a shift in priorities and recognition by the SFD of the value and benefits of business advice. The EBRD considers this shift and new approach as impedimental in order to promote advisory services amongst the SME population and deliver high-quality and sustainable services.

Ownership: Successful and above all sustainable capacity building of beneficiary institutions can only be achieved through a committed buy-in and ownership of activities on the side of the recipient. This includes commitment to implementation and continuity at the highest level, and participation in activities by SFD Heads of Office and Heads of Regions.

Availability of resources: Linked to the above, the EBRD has understood that ownership of capacity building activities is best ensured though a commitment of the recipient institution to make available necessary human and financial resources. This in turn allows for effective and successful capacity building, as well as sustainability of activities upon completion.

Based on the above findings, and to ensure success and sustainability of capacity building activities envisaged under Phase II, the EBRD, as the Implementing Support Agency, would require the SFD to commit to the following:

1.) Commitment to continue implementing the newly adapted modus operandi of facilitating business advice as opposed to delivering it in-house.

2.) Engagement of the SFD Heads of Offices and Heads of Regions in the project implementation, and dedication of sufficient staff and resources both for successful project delivery and capacity building activities.

Subject to the availability of business opportunities and qualified local consultants, the EBRD will extend the support to implementation of activities in all Governorates where SFD offices are available, with special focus on the following areas: Alexandria, Mansoura, Suez Canal cities (Port Said, Ismailia, Suez) and, in the South, Menia and Assiut:

1.) Joint delivery of non-financial business development services to women-led enterprises- Joint implementation of 65 advisory projects, of which 10 coaching projects- 10 mentoring projects- Entrepreneurship trainings delivered to up to 120 female entrepreneurs

2.) Strengthening the local consultancy market by offering the EBRD “Grow your Consulting Business” training suite to a minimum of 45 local consultants

3.) Capacity building of SFD non-financial services staff dedicated to Women in Business- On the job training of EBRD best practices in facilitating access to advice. - On the job training in project management, monitoring & evaluation and risk mitigation- Delivery of trainings for SFD non-financial services staff working on Women in Business in Business

Diagnostics and Project Management4.) Visibility, dissemination and networking

- visibility events in the new governorates: Alexandria, Mansoura, Canal cities, Menia and Assuit- networking events- Main visibility event - Project closing event to ensure maximum visibility of the donor

Component 3: Strengthening SFD’s data analysis to enhance targeting and monitoring mechanisms (SFD executed)The nature and substance of this component has been changed since its inception to improve complementarity with other ongoing work already commissioned by SFD. This component focuses on developing SFD’s information systems for the management of results-based monitoring data, and developing an automated enterprise management system.

Microsoft was the consultant selected to fulfil the revised terms of reference, and the kick-off meeting was held in June 2015. As of June 2016 (the date of the latest available progress report by the consultant), 55 per cent of the project has been completed, up from 11 per cent in November 2015. The envisioning and planning phases of all three workstreams that comprise this component are now largely complete, and the development and implementation phases are in their early stages.

The expected completion date for this component has been pushed back from April 2016 to September 2016. Project delays have primarily related to availability of hardware and scope changes. Some scope changes have been made following on from the envisioning phase to better align the project with SFD’s needs, but these do not affect the overall scope of work or the budget. Nevertheless, it is important moving forwards that a Change Management process is put into place to minimize further delays. A greater effort to secure early procurement of hardware as required for the project on SFD’s end would also be a positive step. SFD have agreed to provide us with regular progress reports prepared by the Consultant to help us keep track of the project.



Cost (US$): 200,000

Sub-component 3.1:

Enhancing targeting and monitoring mechanisms

Status of Implementation: The envisioning and planning phase of this subcomponent is largely complete, and development has now begun.

Through discussions with SFD, and in reflection of the key needs assessment stemming from the results of studies already undertaken, this subcomponent focuses on developing SFD’s information systems for the management of results-based monitoring of data, and developing an automated enterprise management system. The consultant is required to design and implement a pilot data warehouse and business intelligence tools to help generate, integrate, track and extract data.

Sub-component 3.2:

Strengthening SFD’s data analysis

Status of Implementation: The envisioning and planning phase of this subcomponent is largely complete, and implementation is due to begin in the second week of July.

The automated management system will include a database of outcome and impact indicators to be tracked and used for monitoring program results. The consultant will assist in building such a database and linking variables already present in SFD database to expand variable scope and maximize analysis capacity.

An assessment of the research department’s personnel in the SFD will be conducted, with a review of the current analysis undertaken, suggesting actions to strengthen evidence-based analysis techniques. In addition, a roster for business service providers will be developed, helping the SFD move from being a service delivery vehicle for BDS into a facilitator role.

D. Disbursements of Transition Fund Funds for Direct Project Activities

Country-Execution (US$)

(x)


(y)Total (US$)


1,119,000 1,625,000 2, 744,000


1,119,000 812,500 812500

Actual Amount Disbursed (c): 220,434 604,903 825,337

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 64,042 171,732 2377882015 223,845 95,477 3213372016 270,241 400,000 6722572017 400,000 400,000 800,0002018 379,759 338,904 720681


142,000 50,080 192,080


Project Development Objective (PDO): Strengthen the capacity of the SFD to support the MSME sector in Egypt with a particular focus on promoting women entrepreneurship


MeasureBaseline




Collection


definition etc.)Apr

2013 – Mar 2014

A

Apr 2014 –

Mar 2015

A

Apr 2015 –

Jun 2016

A

July 2016 –

Mar 2017

F

Apr 2017 –

Apr 2018

FIndicator One:Strengthened SFD advocacy and policy formulation capacity to support the MSME sector as seen by

- Revision of the Presidential Decree N. 40 of 1991 and amendments to the Law 141

- Action Plan on the operational environment for MSME endorsed by all stakeholders (including public administrations concerned)

- Recommendations of the Action Plan on the operational environment for MSME are implemented for at least 25%.

Binary

Binary

Binary

0

0

0

0

0

0

0

0

0

0

0

0

1

1

0 25%

Once

Once

Once

Official Journal or other official governmental/presidential decree source

SFD Policy Unit ReportsAnd Consultant Reports

SFD Policy Unit ReportsAnd Consultant Reports

SFD

SFD

SFD

Reports should describe the consultation process and outcomes

Reports should list and describe the implemented measures in detail

Indicator Two:Impactful business advisory services for MSMEs delivered by the SFD as seen by:Improved performance of 60 assisted women owned/managed enterprises as seen by: % of assisted enterprises to

increase turnover/productivity after completion of the project

% of assisted enterprises to increase employment after completion of the project

% of assisted enterprises to access finance after completion of the project

% of assisted enterprises to engage external advisory services independently after completion of the project

% 0

0

0

0

NA

NA

NA

NA

21

12

15

NA

84

55

27

NA

Ongoing

Ongoing

Ongoing

Ongoing

SFD/EBRD

SFD/EBRD

SFD/EBRD

SFD/EBRD

EBRD

EBRD

EBRD

EBRD


Intermediate Result (Component One): Legal and Regulatory Reform to Strengthen SFD Advocacy and Policy Formulation Capacity to support the MSME sector

Intermediate Result indicator

- Proposed amendments to the Presidential Decree

- Proposed amendments to the Law 141

- Presentation of a Strategy for enhancing the legal and regulatory environment for MSMEs to main stakeholders.

- Draft Action Plan on the operational environment for MSME

- A Policy Unit established within the SFD comprising

Binary

Binary

Binary

Binary

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

1

1

1

Once

Once

Once

Once

SFD

SFD

SFD

SFD

SFD

SFD

SFD

SFD

at a minimum two full-time staff.

Binary 0 0 0 0 1 Once SFD SFD

Intermediate Result (Component Two):Strengthened women entrepreneurial activity and strengthened capacity of the SFD to support and promote women entrepreneurship

Intermediate Result indicator One: Women entrepreneurs assisted with targeted advisory services, ongoing business advisory support and mentoring

Number 0 24 41 90 120 Ongoing SFD/EBRD EBRD

Intermediate Result indicator Two: Women trained in advanced entrepreneurial skills

010 31 122 180

Ongoing SFD/EBRD EBRD

Intermediate Result indicator Three: Local business advisers trained to support women entrepreneurs

020 30

Ongoing SFD/EBRD EBRD

Intermediate Result indicator Four: SFD personnel trained on the job to facilitate the provision of business advisory services to women entrepreneurs

0 10 10 15 15 Ongoing SFD/EBRD EBRD

Intermediate Result indicator Five: Creation of a manual for SFD personnel documenting the pilot project

No In process

Yes

Intermediate Result (Component Three):Enhanced targeting and monitoring mechanisms of the SFD for Service Delivery

Intermediate Result indicator One:Linkage and integration of better data analysis and reporting in the overall SFD service delivery strategy

Qualitative

No Yes Annual Project reports, SFD departments’ reports, and annual plans

EBRD

Intermediate Result indicator Two:Data system analysis institutionalized in the SFD

Number and qualitative research

No, and 0 staff trained

Yes, and 2 staff trained

SFD/EBRD EBRD

Logismed Soft Regional Project: Egypt Activities

A. Basic Project InformationActivity Name: LOGISMED soft project – Regional project – Activities in Egypt

Country Name: Egypt Name of Implementation Support Agency(ies): European Investment Bank

Name of ISA Project Leader: Pasquale Staffini Email of ISA Project Leader: [email protected]

Recipient Entity: Ministry of Transport / General Authority for Land and Dry Ports


Amb Mahmoud Allam [email protected]. Mohamed Ali Ibrahim [email protected]

Total Amount Approved by the Transition Fund (US$): 1,565,403.00

Additional Funds Leveraged and Source(s), if any (US$): EUR 3 m from the European Commission for 5 countries including Egypt (Agreement finalized between EC and EIB in November 2013)

Total Amount Disbursed (Direct and Indirect in US$):

297,942



7/31/2013


12/11/2018


Primary Pillar: Competitiveness and Integration: Logistics

Secondary Pillar(s): Investing in Sustainable growthInclusive Development and Job CreationEnhancing economic governance

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of LOGISMED is to support the enhancement of logistic platform capacities in Egypt, Morocco and Tunisia as well as the creation of a collaborative network between these logistic platforms in order to improve country capacities and to attract foreign investments, affecting directly country and citizens development.


Moderately satisfactory

Rating for overall implementation progress: Moderately satisfactory


Logismed has two components: (i) Logismed Hard and (ii) Logismed Soft. The overall objective of Logismed Hard is to promote through technical assistance such as feasibility studies the establishment of logistics platforms in the Mediterranean region. For Logismed Soft, the general objectives are: (i) to facilitate the coordination/cooperation between the different players in the logistics sector of the Mediterranean region, (ii) to enhance training within the various professional disciplines in the logistics sector and (iii) to establish observatories to conduct sector performance analyses and produce corresponding indicators. In 2013, Logismed Soft was labelled and launched by the Secretariat of the Union for the Mediterranean (UfM).

In order to implement Logismed Soft, funds have been secured from the MENA Transition Fund and the EU



Commission.

In July 2014, EIB signed a service contract with the CETMO (Centre d'Études des Transports pour la Méditerranée Occidentale) for the day to day management and implementation of large parts of these activities.

The Logismed Soft Cooperation Agreement (CA) between Egypt and EIB was fully signed by the parties only in March 2016. A first mission by CETMO/EIB to Egypt was organized on 15th March of 2016 with a view to launch the project and carry out a first fact finding in view of updating the training needs assessment and the current situation of the logistics sector development in the country.

Work advance moderately in all the components: The report defining the characteristics and services of the Logismed logistics platforms and also the

configuration of the network has been drafted by CETMO. EIB signed a contract with a consortium head up by GOPA in order to implement the second component,

training activities, of the project. This consultant will launch the training activities funded by the EU Commission as a first wave. After the necessary period of assessment of the results of the consultant’s work and of the capacity of the beneficiaries to receive the activities, a second wave of training activities will be launched, using funding from the MENA Transition Fund.

For the third component (Logistics Observatory) data collection/processing has been launched during this semester.


Actions to be Taken Responsible Party Expected Date of DeliveryRegional Workshop with the beneficiaries and experts to submit the report defining the characteristics and services of the Logismed logistics platforms and also the configuration of the network.

CETMO 9/19/2016

Completion of the questionnaires et nomination of the Egyptian focal points for each of the three components of the project

Egyptian ministry of transport 9/5/2016

Finalization of the diagnostic study of the training offer in logistics in the country and holding the second steering committee to present it.

GOPA 10/26/2016

Presentation of the adopted list of logistics indicators and structure of the regional observatory.

CETMO 10/26/2016


Component 1: LOGISMED Coordination

Previous Rating: Moderately Unsatisfactory

Current Rating: Moderately satisfactory

Cost (US$): 314,387

Sub-component 1.1: Promotion of LOGISMED project

Status of Implementation: This component was launched in March 2016 during the first mission to Egypt. This

meeting allowed to meet relevant authorities charged with logistics development and to look into the progress of logistics development strategy. Moreover, the goal of this first Logismed Soft mission was to jointly analyse the project content with the Egyptian representatives and adapt it to the situation in the sector and the national strategy for developing the transport and logistics sector. Work of the next period will focus on the screening of existing logistics platforms or projects to become candidates for inclusion in the network, once the concept of Logismed logistics platforms is completely defined. Sub-component 1.2: Definition of LOGISMED platform network

Status of Implementation: A study to define the characteristics and services of the Logismed logistics platforms and also the configuration of their network has been drafted during this period. Final version to be submitted to the countries will be ready first week of July 2016. This report is needed to continue promoting the logistics platforms and the network.

Workshop to present the study to the beneficiary countries and to reputed experts on the Logismed logistics platforms and their network to be held in Barcelona the 19th September 2016. This workshop will complement the study, incorporating the opinion of the experts in the final version of the study.

EIB – in close cooperation with the Egyptian authorities and under funding from the MENA TF Transtrac project - is currently exploring the infrastructur initiatives to develop the logistics system in Egypt. Once finalised, CETMO and the Egyptian authorities will screen all the possible existing and planned logistic platforms for their potential to be incorporated into the Logismed network.

Identification of needs of each of the logistics platforms selected.Immediate activities for Component 1 include:

Filling of the questionnaires to explore the current situation of the transport & logistics sector in Egypt (Egypt MOT).

Preparation of a second mission to exchange with the main stakeholders and present in more detail the concept of Logismed logistics platforms and network (CETMO).

Agreement of the road map for the next semester describing the work to be done (Egypt MOT and CETMO).

Identification of the contacts for day-to-day work on the different Logismed components. Workshop to finalize the report to define the characteristics and services of the Logismed logistics

platforms of the network and also the configuration of the network. Meeting with the Egyptian logistics sector representatives to define the road map for choosing Logismed

platforms.

Component 2: LOGISMED Training Activities



Cost (US$): 491,660

Sub-component 2.1: LOGISMED Country Training Activities

Status of Implementation: GOPA is the leader of the consortium of consultants chosen under the EIB procurement rules. The consultants have signed the contract in April 2016. First task being developed is the drafting of the diagnostic study on the training offer in the country. This first period of the training consultants’ activities will be useful to present the project to the whole training and logistics community in the country and to promote their participation in the project.The first wave of training measures will be funded out of the EC grant. The idea is to use the Deauville funds for a second wave of training, once the first wave has sufficiently advanced and lessons learned from that are available.Sub-component 2.2: LOGISMED Platform Training Activities

Status of Implementation: This activity will be part of the work of the training consultant hired as described under sub-component 2.1. Future implementation of this sub-component is related to the selection of the logistics platform candidate to receive training (Subcomponent 1.2).

Immediate activities for Component 2 include: Launching of the Works of the training consultant in Egypt (CA signature required):

o Draft of the Inception report of the training consultant.o Finalization of the diagnostic of the training offer and implementation plan of the activities in

Egypt (September 2016)o Implementation of the training activities in Egypt (consecutive to the end of the previous

activity). Second meeting of the Steering Committee of Logismed Soft12 end of October 2016 where conclusions of

the diagnostic study will be submitted to the country representatives.

Component 3: LOGISMED ObservatoryPrevious Rating: Moderately Unsatisfactory

Current Rating: Moderately Unsatisfactory

Cost (US$): 617,047

Sub-component 3.1: Action Plan for LOGISMED Observatory

Status of Implementation: A draft of the Logismed Observatory Action Plan was prepared by CETMO in a regional approach. It was shortly presented to Egypt during the Kick-off mission. A further meeting should take place shortly to agree on the final adaptations to this draft to include Egyptian specific needs.

Sub-component 3.2: Observe and analyze regional developments

Status of Implementation: This component was launched at the regional level in the spring of 2015. A first proposal of thematic areas and indicators of the regional Observatory has been designed by CETMO. This work has taken into consideration best practices of Observatories and existing Macro-indicators to describe Logistics performance. It will be analyzed in depth with the Egyptian authorities during a new mission to Egypt. A second piece of work currently in progress and to be analyzed during the meeting is the study of statistical data production in Egypt that will be used to elaborate the indicators. The results of this meeting will let the final definition of the indicators for the Egyptian national observatory and the agreement of priority activities to be launched in Egypt.Sub-component 3.3: Promoting the emergence of national observatories of logistics and transports

Status of Implementation: To be started during next months. Discussions with the Egyptian representatives should be established in order to know their interest to create a national observatory to monitor the progress of logistics development. Moreover, the ressources to be dedicated will be evaluated and then, the Logismed project activities to boost this observatory will be completely defined. Immediate activities for Component 3 include:

CETMO – Egyptian authorities meeting to:o Define the general action plan for Logismed observatory and ;o Analyze the introduction of the necessary adaptation to Egyptian requirements.o Agree on the technical activities to support the generation and collection of statistical data in

Egypt. Final agreement on the thematic areas and indicators of the Egyptian Logistics National Observatory. Awareness session on the need to create a National Logistics Observatory in Egypt. Start collecting and processing data to elaborate the indicators of the Logistics observatories (national &

regional).

12 First Meeting of the Steering Committee of Logismed soft was held in September 2015 in Tunisia. Unfortunately, the Egyptian representatives could not participate because of unexpected obligations.


(US$)(x)


(y)

Total (US$)


0 1,423,094 1,423,094


0 1,423,094 1,423,094

Actual Amount Disbursed (c): 0 155,633 155,633

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 63,686 63,6862015 0 48,296 48,296 2016 43,651 206,349 250,000 2017 300,000 300,000 600,000 2018 300,000 161,112 461,112 2019


142,309 0 142,309


Project Development Objective (PDO):

To support the enhancement of platform capacities as well as the creation of a collaborative network between these platforms.


MeasureBaselin

e


FrequencyData Source/

Methodology


Collection


definition etc.)

Jul 2013 -

Jun 2014

A

Jul 2014 –

Jun 2015

A

Jul 2015 -

Jun 2016

A

Jul 2016 - Jun 2017

F

Jul 2017 - Dec 2018

F

Indicator One:

Logistics Performance Index (LPI)

unit 2.98 n/a 2.973.18(LPI

2016)3.4 -

Each 2 years

WB LPI report

EIB


measures the logistics

"friendliness" of 155

countries

Indicator Two:

Labour force employed by the transport and logistics sector

%4.7

(2010)7.1

(2013) 7.2

(2014)

2015 data not

yet availabl

e

5.30 5.55Once per

year

National statistic

institutesEIB

Percentage of the Number of

employees working on the transport and

logistics sector.

Indicator Three:

Tones and value of the intra-Mediterranean external trade

Millions tones

10.5(2008 data)

12.5(2013)

12,0 (2014)

2015 data not

yet availabl

e

12.4 13.6Once per

year

COMTRADE (United

Nations)EIB

Volume and value of the exports and

imports among the MENA countries.


Intermediate Result:

Component I: LOGISMED coordination

SCI.1: Promotion of the LOGISMED project

SCI.2: Definition of the LOGISMED platform network


MeasureBaseline



Methodology


Collection


definition etc.)Jul 2013 - Jun 2014

Jul 2014 – Jun 2015

Jul 2015 - Jun 2016

Jul 2016 - Jun 2017

Jul 2017 - Dec 2018

Intermediate Result indicator One: Number of platforms that study the opportunity to be part of the LOGISMED network # platforms 0 0 0 0 2 4

Once per year

Forms asking for information

about procedures

Consortium leader

The promotion of the LOGISMED project try to

disseminate the need to upgrade

logistics and transport sector

and also to implement

logistics platforms under the LOGISMED standards

Intermediate Result indicator Two:Number of platform infrastructures promoted by the national authorities

# platforms 0 0 03

(under study)

4 5Once per

year

Country planification /

Projects launched

Ministry of transport and

equipment

National structures are involved in the

promotion of the Logistic platform

offer


Component II: LOGISMED Training Activities

SCII.1: LOGISMED country Training Activities

SCII.2: LOGISMED platform Training Activities




Methodology


Collection



Jul 2014 – Jun 2015

Jul 2015 - Jun 2016

Jul 2016 - Jun 2017

Jul 2017 - Dec 2018

Intermediate Result indicator One:Number of national logistics associations in place

# assoc. 0 0 0 0 1 1Once per

year


equipment

Continuity and sustainability of

the project and of the logistic

promotion comes from a powerful sector asking for their needs. This

indicator measure the number of

national associations

working

Intermediate Result indicator Two:Number of people participating in training (general public) # persons 0 0 0 0 75 120

Once per year

Participants in the training

sessionsConsortium leader

This indicator measure the capacity of the project to generate sufficient capacity in countries to provide independently a consolidated training offer.

Intermediate Result indicator Three:Number of platform workers trained # workers 0 0 0 0 100 250

Once per year



This indicator measure the

capacity of the project to

generate the human resources

to operate the platforms

Intermediate Result (Component Three):

Component III: LOGISMED Observatory

SCIII.1: Action Plan for the LOGISMED Observatory

SCIII.2: Observe and analyze the region developments in logistic & transport

SCIII.3: Promotion the emergence of national observatories of logistics & transports




Methodology


Collection



Jul 2014 – Jun 2015

Jul 2015 - Jun 2016

Jul 2016 - Jun 2017

Jul 2017 - Dec 2018

Intermediate Result indicator One:Number of quality indicators in the database

# records 0 0 0 0 12 20Once per

yearLOGISMED database Consortium leader

Number of quality indicators in the

database describing the

evolution of the transport and logistics sector

Intermediate Result indicator Two:Number of national observatories in place or in progress to be set up # observ. 0 0 0 0 1 1

Once per year

Ministry of transport Consortium leader

The continuity of the project

depends on the country capacity to generate the

statistics and indicators to

analyse themselves their

transport and logistics system.

Promoting Financial Inclusion via Mobile Financial Services: Egypt Activities

A. Basic Project InformationActivity Name: Promoting financial inclusion via mobile financial services in the Southern and Eastern Mediterranean countries – activities in Egypt “ Cancelled Project “

Country Name: Egypt

Name of Implementation Support Agency(ies): European Investment Bank

Name of ISA Project Leader: David Demulier Email of ISA Project Leader: [email protected]

Recipient Entity: Central Bank of Egypt


Salwa Ayoub, Project Manager, Payment Systems [email protected]

Total Amount Approved by the Transition Fund (US$): 891,000

Additional Funds Leveraged and Source(s), if any (US$): 80,000 – co-financing support in kind expected from Central Bank of Egypt



12/5/2013


12/1/2015


01/31/2017



Secondary Pillar(s): Investing in Sustainable GrowthInclusive Development and Job CreationCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: This project objective is to promote access to finance through the development of a country wide strategy to develop mobile financial services and retail payment infrastructure in Egypt.


Not Applicable

Rating for overall implementation progress: Not Applicable

Brief Summary of Project Implementation Status: cancellation of the project.

A cancellation and reallocation of funds request was received on May 5th 2016 by the Ministry of International Cooperation of Egypt.

After various delays regarding the required procedure for implementation of the project and given that the Government of Egypt puts other projects as immediate priorities, it was decided to cancel the project.


C. Implementation Status of Components Component 1: Developing an action plan with implementable actions for the CBE to develop Retail Payments in Egypt for the coming 5 years.

Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 200,000Status of Implementation: As previously reported: The work for this component will be carried out as proposed, but with a delay as outlined above. The tendering for Components 1, 2, 3 and 4 will be done as one single procedure, based on the unified terms of reference document referred to in the summary above. The expectation is that the selected consultant will propose a team which will work on the 4 components simultaneously, meaning that work on all four main components will begin as soon as contracting with the selected consultant is complete.

Component 2: Developing a data collection and analysis methodology to better understand the market trends and properties and enable adequate monitoring of the system.

Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 150,000Status of Implementation: As previously reported: The work for this component will be carried out as proposed, but with a delay as outlined above. The tendering for Components 1, 2, 3 and 4 will be done as one single procedure, based on the unified terms of reference document referred to in the summary, above. The expectation is that the selected consultant will propose a team which will work on the 4 components simultaneously, meaning that work on all four main components will begin as soon as contracting with the selected consultant is complete.

Component 3: Developing an action plan for improving efficiency of bank remittances inflows to Egypt.


Component 4: Developing an action plan targeting financial inclusion, defining and prioritizing required actions to promote the inclusion of the poor and this without access to banking services in the financial system.


Component 5: Knowledge sharing workshop.

Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 35,000Status of Implementation: As previously reported: The Bank has proposed to the Egyptian authorities that this component be included in the main consultancy contract under procurement by the EIB, in order to streamline implementation. As previously indicated, this component will take place only after the work for Components 1-4 & 6 has been carried out. It is expected that the Union for the Mediterranean will play a role in ensuring that the events consist in an integral part of the capacity building function of the project.

Component 6: Setting up the implementation of the action plans within the CBE.

Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 100,000Status of Implementation: As previously reported: The work for this component will be carried out as proposed, but with a delay as outlined above.

Component 7: Project Management, Coordination, Monitoring and Evaluation.

Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 80,000(estimation of the in-kind contribution of CBE staff time during the project)

Status of Implementation: As previously reported: This activity – which is country-executed by the Central Bank of Egypt – in terms of coordinating the project internally, will begin once the core consultancy contract has been awarded.

D. Disbursements of Transition Fund Funds for Direct Project Activities (US$)Country-Execution

(US$)

(x)


(y)

Total (US$)


0 835,000 835,000


0 0 0

Actual Amount Disbursed (c): 0 0 0

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2013 0 0 02014 0 0 02015 0 0 02016 0 360,000 360,0002017 0 475,000 475,0002018 n/a n/a n/a2019 n/a n/a n/a


56,000 0 56,000


NB: this is the results framework as submitted with the project proposal. No updates have been made, as the project implementation has not yet commenced.


MeasureBaseline




Collection


definition etc.)Jan

2016 – Dec 2016

F

Jan 2017 – Mar 2017

F

YR3F

YR 4F

YR5F

Indicator One: Increase in access metrics (number of active accounts per

Number To be determined at project start

+ 5% +10% +15%

20% 25% Annual Reporting to CBE

CBE Increase in number of active accounts

Indicator Two: Per capita cashless transactions


+ 5% +10% +15%


CBE Per adult (>15) number of cashless transactions both inter-institution and intra-institution

Indicator Three: Infrastructure metrics


+ 3% +6% +9% 12% 15% Annual Reporting to CBE

CBE Agents, ATMs and POS terminals per 1000 inhabitants

Indicator Four: Reduction in Cost of Cash deposit and withdrawal,

considering inflation.


+ 0% 0% 5% 10% 15% Annual Reporting to CBE

CBE The fees for deposit and withdrawal

Indicator Five: Percentage of payment instructions received

through electronic means

% To be determined at project start

0% 0% 0.5%

1% 1.5% Annual Reporting to CBE

CBE Number of payment instructions received through electronic means respect

divided by the total number of payment instructions

Indicator Six: Percentage of government payment

transactions made through electronic payment mechanisms


+ 10% +20% +30%


CBE Number of government payment transactions made both as a payee and a payer using electronic payment mechanisms divided by the total number of government payments

Indicator Seven: Reduction in cost for a domestic remittance

between parties with accounts in different institutions


0% 0% 2% 4% 6% Annual Reporting to CBE

CBE The total cost (for the sender and for the receiver) of making a domestic remittance between parties maintaining accounts in two different institutions using the available payment mechanisms and channelsDivided by the amount sent

Indicator Eight: Cost to maintain specific payment product

Number To be determined

0% 0% 5% 10% 15% Annual Reporting to CBE

CBE Cost for the consumer to

accounts by institution type, with focus on accounts targeting

Financial Inclusion.

at project start

maintain specific payment product accounts


Intermediate Results:

Intermediate Result 1: Developing a strategy for Retail Payments in Egypt for the coming 5 years, considering market needs and resources

Report n/a 1 n/a n/a n/a n/a Once, 6 months after project start

Reporting to the CBE, EIB

Consultants, CBE

Developed an implementable action plan for retail payments in Egypt for the coming 5 years, considering market needs and resources to be completed four months after commencement of the operations and presented to the EIB and the CBE.

Intermediate Result 2: Developing a data collection and analysis methodology to better understand the market trends and properties

Report n/a 1 n/a n/a n/a n/a Once, <8 months after project start


Consultants, CBE

Developed a data collection and analysis methodology to better understand the market trends and properties to be completed six months after commencement of the operations and presented to the EIB and CBE.

Intermediate Result 3: Report n/a 1 n/a n/a n/a n/a Once, <12 Reporting to Consultants, Developed an

Developing an action plan targeting the family remittances inflow to Egypt.

months after project start

the CBE, EIB CBE action plan targeting the family remittances inflow to Egypt to be completed eight months after commencement of the operations and presented to the EIB and CBE.

Intermediate Result 4: Developing an action plan targeting financial inclusion, explaining required actions to promote the inclusion of the poor in financial system

Report n/a 1 n/a n/a n/a n/a Once, <12 months after project start


Consultants, CBE

Developed an action plan targeting financial inclusion, explaining required actions to promote the inclusion of the poor in the financial system to be completed twelve months after commencement of the operations and presented to the EIB and CBE.

Intermediate Result 5: Workshop for sharing of knowledge

Workshop n/a 0 1 n/a n/a n/a Once, at project completion

Reporting to the EIB

CBE Successful completion of a workshop to enable knowledge sharing of country experience between countries participating in the program.

Intermediate Result 6: Report n/a 2 3 n/a n/a n/a Six monthly Consultants/ Consultants, Establishment

Establishing an implementation structure in the CBE

during implementation and once at completion

CBE reporting to the CBE, EIB based on observed progress in implementation unit

CBE of an implementation structure within the central bank

Intermediate Result 7: Project management team will have been operating for the project

Report n/a 1 2 n/a n/a n/a Twice, once halfway through project implementation and once at completion

CBE reporting to the EIB based on observed progress in implementation unit

CBE A report detailing the activites of the CBE in managing and implementing the project will be shared with the EIB.

Regional Integration through Trade and Transport Corridors: Egypt Activities

A. Basic Project InformationActivity Name: Regional Integration through Trade and Transport Corridors (TRANSTRAC) – Egypt Activities

Country Name: Egypt Name of Implementation Support Agency(ies): European Investment Bank


Recipient Entity: Ministry of Transport Name and Email of Recipient Entity Contact:

Amb Mahmoud Allam [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 0.00



5/15/2013


(CA Signature date 27/1/2016)

10/31/2014


12/31/2018



Secondary Pillar(s): Inclusive Development and Job CreationCompetitiveness and IntegrationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of TRANSTRAC is to promote the reduction of trade and transport barriers along the priority trade corridors of Egypt and in related border crossings.


Moderately Unsatisfactory

Rating for overall implementation progress: Moderately Unsatisfactory


- After more than 2 years of negotiations, the TRANSTRAC TA Cooperation Agreement between Egypt and the EIB was fully signed in March 2016.

- Immediately after, in the week of 14/03/2016, a fact finding mission was carried out by EIB’s SNAP-T team, in order to assess with the Egyptian authorities the continued relevance of the various TRANSTRAC components. In particular, it was proposed by Egypt that work focusses in a first instance on the development of an East Port Said intermodal corridor (related to Component #2.1 “Preparation of the Suez-Port Said corridor”), in cooperation with the newly created General Authority for the Suez Canal Economic Zone (SCEZ GA). Scoping work in that regard followed suit with detailed fact finding missions and site visits undertaken in April 2016. This work led EIB to the conclusion that in the short term, two studies are pertinent:

o A feasibility study for a logistics zone adjacent to East Port Said, ando A study to analyze and forecast traffic demand and identify infrastructure bottlenecks in the East

Port Said – Cairo Corridor.



- After agreement with the SCEZ GA on the principles of these studies in May 2016, ToR were prepared and are now being agreed in detail with the SCEZ GA. Tendering for these assignments is expected to take place in the second half of 2016.

- In the meantime, the Regional Road Safety Action Programme covering Morocco, Tunisia, Jordan and Egypt (related to Component #1.2) has now also been kicked off in Egypt April 17th 2016.

- Beyond that, Egypt announced to get back “asap” to EIB with further proposals for projects to be supported through TRANSTRAC, whilst remaining in line with agreed TRANSTRAC priorities.

- For more details on the individual components, please see sections hereunder.

C. Implementation Status of Components Component 1: Institutional and capacity building for regional trade framework improvement (region-wide component)Previous Rating: Moderately Satisfactory


Cost (US$): 600,000

Sub-component 1.1: TA to transportation (region-wide component)

Status of Implementation: Activity proposed to be restructured (cf. separate restructuring note).

Sub-component 1.2: Preparation of road safety assessment and action plan (region-wide component)


On 17th April 2016, the Regional Road Safety Action Programme (covering Morocco, Tunisia, Jordan and Egypt) has been kicked off in Egypt.

Component 2: Preparatory studies for infrastructure improvements of the priority corridorsPrevious Rating: Unsatisfactory Current Rating: Moderately

UnsatisfactoryCost (US$): 3,000,000

Sub-component 2.1: Preparation of the Suez-Port Said corridor

Status of Implementation: - ToR for the following studies with a total budget of some USD 700,000 have been agreed with the

promoter and will be procured in the second part of 2016, with the studies expected to be delivered in 2017:

o A feasibility study for a logistics zone adjacent to East Port Said, ando A study to analyze and forecast traffic demand and identify infrastructure bottlenecks in the East

Port Said – Cairo Corridor.- Activities for the residual budget will be proposed in a separate restructuring note.

Sub-component 2.2: Preparation of selected activities for the International Transport corridor


Activity proposed to be restructured (cf. separate restructuring note).

Sub-component 2.3: TA for preparation of upgrading and expansion of Border crossing facilities Satisfactory

Status of Implementation: El Salloum Libya Border Crossing: Master Plan and Final Design, by mid-2014 ToR were completed and agreed with the Egyptian authorities. Procurement of the related consultancy services was launched but suspended due to security concerns in the area. Procurement could be re-launched once security levels at the Egyptian-Lybian Borders have improved to acceptable levels.

Component 3: Project Preparation, Management, Coordination, Monitoring and EvaluationPrevious Rating: Not Applicable Current Rating: Unsatisfactory Cost (US$): 400,000



(US$)

(x)


(y)

Total (US$)


700,000 3,300,000 4,000,000


850,000 500,000 1,350,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 300,000 300,0002017 350,000 1,150,000 1,500,0002018 1,200,000 1,000,000 2,200,000


230,000 0 230,000


Project Development Objective (PDO): The objective of the proposed project is to promote reduction of trade and transport barriers along the priority trade corridors of the country and in related border crossings.

PDO Level Results Indicators* Unit of MeasureBaselin

e




Collection

Description (indicator definition etc.)Jan.

2016 – Dec. 2016

F

Jan. 2017 –

Dec. 2017

F

Jan. 2018 –

Dec. 2018

F

Indicator One:About 20 transport road safety auditors trained

# of participants 020 20 20

Bi-annually

Reports PMCU and Focal Points

Quantitative – number of participants who have successfully completed the training

Indicator Two:Studies completed: (i) 2 studies for the Suez corridor; (ii) pre-feasibility study for border crossing completed; (iii) road safety action plan completed.

Percentage progress and # of studies

0

0

25%

1

75%

3

100%

4

Bi-annually

ReportsStudies produced

PMCU, Focal Points with EIB input

Number of studies completed and approved


Intermediate Result (Component One): Institutional and capacity building for regional trade frameworkSub-component A.2: Road safety assessment and action plan

Intermediate Result indicator One:About 20 transport road safety auditors trained # of participants 0 20 20 20 Bi-

annuallyReports PMCU and

Focal Points

Qualitative- number of participants who have successfully completed the training.

Intermediate Result indicator : Road safety assessment and action plan completed

Percentage progress and action plan completed

0 90% 100% 100% 3 -months

Reports PMCU, Focal Points with EIB input

Quality study and action plan produced

and approved

Intermediate Result (Component Two): Preparatory studies for infrastructure improvements of the priority corridorsSub-component B.1: Preparation of the Suez Canal corridorSub-component B.2: Preparation of selected activities of Intermodal corridor Sub-component B.3: Preparation of upgrading and expansion of border crossing facilities

Intermediate Result indicator One:Logistics zone feasibility study and Port Said-Cairo Corridor Traffic Study

Percentage progress and studies completed

0 25% 100% 100% 3 -months


Quality studies produced and approved

Intermediate Result indicator Two: Pre-feasibility study of the expansion and development of Salloum land port (border with Libya)

Percentage progress and study completed

0 0% 50% 100% 3 -months


Quality study produced and approved

Leveraging Regulatory Reforms to Advance Financial Inclusion in Egypt

A. Basic Project InformationActivity Name: Leveraging Regulatory Reforms to Advance Financial Inclusion in EgyptCountry Name: Egypt Name of Implementation Support Agency(ies):

International Finance CorporationName of ISA Project Leader: Nahla El Okdah Email of ISA Project Leader: [email protected] Entity: N/A Name and Email of Recipient Entity Contact: N/A


Additional Funds Leveraged and Source(s), if any (US$): 0. But an estimated 1,126,500 is planned

Total Amount Disbursed (Direct and Indirect in US$): $135,553 +12,637 (regional) = 148,190

Steering Committee Approval Date: 18 May 2015

Project Implementation Start Date:August 1, 2015

Project Closing Date:30 June 2018


Primary Pillar (select only one): Inclusive Development and Job Creation

Secondary Pillar(s) (select as many as applicable):

Investing in Sustainable Growth

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of the this project is to leverage changes in microfinance regulations in Egypt to support key microfinance service providers, prepare them for, and transform them into for-profit entities and further advance financial inclusion. The project will work with 3 MFIs to help them respond to the changing regulatory framework and also include related KM and client protection activities.Rating for progress towards achievement of objective:

Satisfactory

Rating for overall implementation progress: SatisfactoryBrief Summary of Project Implementation Status: The Transition fund proposal was approved in May 2015 and the first tranche of Transition funding was received in July. During the recent period, IFC continued to support DBACD’s potential transformation by organizing a Study Tour, Transformation Gap Assessment and further HR work. IFC started the implementation of a new engagement with Fawry (an innovative mobile payments operator that is interested in lending). Work also continued on setting up the framework for Al Tadamun’s Risk Management department in addition to organizing a regional training on client protection ‘Smart Campaign’ in Cairo.


Expected Date of

DeliveryProduce the first iterations of the Tadamun’s Credit Risk Dashboard and Operational Risk Self Assessments for all departments

IFC (and Al Tadamun)

10/31/2016

Finalize HR work with DBACD including Training Policy and 360 Leadership Survey

IFC (and DBACD)

9/30/2016

Finalize initial pilot product design with Fawry IFC (and Fawry)

11/30/2016

Identify potential partners for Smart Campaign certification in Egypt and conduct one assessment visit.

IFC (and Sanabel)

12/31/2016

C. Implementation Status of Components Component 1: Risk Management


Cost (US$): 427,500 (this amount represents direct costs funded only through the Transition Fund).

Sub-component 1.1: Assisting MFIs in Egypt to develop or strengthen the risk management functions.

Status of Implementation: IFC has been working with Al Tadamun a microfinance institution (serving only female clients) based in Egypt that was hard-hit by the 2011 revolution, on a new project module focused on Risk Management. During this reporting period, IFC organized a three-day training on risk for Al Tadamun management and, subsequently, implementation began on the Risk Framework, Credit Risk and Operational Risk Modules. A Risk Manager and Risk Officer are now in place, a Management Risk Committee (comprising Tadamun’s senior management team) was setup and now has a charter detailing its roles and responsibilities, and a half-day workshop (facilitated by the Risk Team) was conducted to introduce the Risk Function and the Committee to Senior Staff. By the end of the period, IFC has also begun helping Tadamun set up various tools for monitoring risk such as a credit risk dashboard and operational risk self-assessments; the first iterations of both are expected to be completed next reporting period.

Component 2: Transformation Preparedness, Transformation and Establishment of Greenfields

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 190,000 (this amount represents direct costs funded only through the Transition Fund).

Sub-component 2.1: Assisting MFIs to prepare for transformation

Status of Implementation: -Given new regulations, IFC has been working with DBACD (a leading microfinance institution in Egypt, based in the Delta region), on a new module focused on preparation for transformation / commercialization, including the capacity building necessary to take the institution to the next level. During this reporting period, IFC organized a Study Tour for a team of DBACD senior staff and Board representatives to visit a number of successfully transformed MFIs and microfinance banks in Cambodia – including ACLEDA, AMK and Amret. The visit provided the Egyptian MFI with an opportunity to exchange knowledge on the process of transformation – including its benefits, opportunities and challenges - as well as insights into the three MFI’s operations, especially in the area of risk management. IFC also completed a Transformation Readiness Gap Assessment Report and Action Plan for DBACD which not only outlines the benefits and challenges associated with transforming (in the Egyptian context), but also presents a roadmap and tentative budget for the process. Furthermore, as part of Transformation readiness preparation, IFC has worked with DBACD to upgrade and further professionalize its Human Resource Management practices. During this period, the consultant: (i) produced an induction program curriculum for new staff which DBACD is expected to roll-out; (ii) developed indicators for the organization values, a new recruitment policy and procedures manual and a succession planning system; and finally, (iii) introduced a methodology for Workforce Planning as well as Salary Grading System in a workshop with management.

- IFC also begun implementation of the project with Fawry, the mobile payment operator with over 50,000 outlets/agents in Egypt. The scope of the project, as per the client’s request, shifted from what was initially focused on helping them develop a strategy and business plan to establish a greenfield microfinance institution that piggy-backs off Fawry’s existing infrastructure, to instead supporting the launch of a pilot credit product within the existing Fawry entity itself as a first step in this process. During the reporting period, IFC conducted an initial kick-off mission and field visit to further outline the engagement and better understand Fawry’s operations. Next, with guidance and support from IFC and its technical advisors, Fawry completed an initial market research. The process included focus groups and one-on-one interviews with approximately 50 merchants (e.g. potential Fawry borrowers) and the findings are now being used to shape the pilot product in the first step towards completing the pilot design.

Component 3: Consumer Protection

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 142,500 (this amount represents direct costs funded only through the Transition Fund).

Sub-component 3.1: Assisting MFIs obtain the Smart Campaign Certification

Status of Implementation: The aim of this regional component is to assist MFIs in Egypt demonstrating the highest levels of client protection by assessing MFIs, supporting them as they upgrade their client protection capacity, and eventually obtaining the internationally recognized Smart Campaign certification. During this reporting period, IFC conducted a survey of MFIs in Egypt (and extended to others in the region) to better understand their readiness, capacity and interest to work on client protection – with an aim to begin developing a pipeline for assessments, upgrade and eventual certification. In addition, in collaboration with Sanabel, the regional Microfinance Network of Arab Countries, IFC organized a training in Cairo on client protection for some of its staff as well as some independent consultants as first step towards building capacity in the region. The three-day training workshop was held between May 2- 5 and included 16 participants, 75% of which have reported that they were very satisfied with the training.

Component 4: Knowledge Management

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 142,500 (this amount represents direct costs funded only through the Transition Fund).

Sub-component 4.1: Sector-wide workshops and publications

Status of Implementation: During the period, IFC developed and finalized a report (in collaboration with Sanabel, the regional microfinance network) on MFI’s experiences in upscaling to the very small enterprise (VSE) market segment in the MENA region (with a focus on Egypt and Jordan). The report was circulated for peer review and will be disseminated in the coming period. IFC also provided some capacity building support to the Egyptian microfinance sector financial services regulatory authority (EFSA), by conducting a joint mission with the World Bank. However, this was funded from World Bank project funding.

D. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution (US$) Direct Cost for ISA-

Execution (US$)Total (US$)

Approved Amount for Direct Project ISA Activities (a):

0 902,500 902,500


0 902,500 902,500

Actual Amount Disbursed (c):

0 135,553+12,637 (regional) 148,190

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2015 N/A 55,000 55,0002016 100,000 135,000 235,0002017 150,000 175,000 325,0002018 287,500 N/A 287,5002019

F. Disbursements of Funds for Indirect Costs (US$)Disbursed Available Total

0 47,500 47,500

G. Results Framework and Monitoring**Please note, results of projects reflected below in bold include two MFI partners’ of IFC (both DBACD and Al Tadamun) and their overall results from July 1- Dec 31 (2015). IFC TA project activities have contributed to achieving these results, however, not all can be claimed to be exclusively the result of IFC, given leveraging of other funding sources and of course the MFI’s own efforts.


PDO Level Results Indicators

Unit of Measure Baseline

Cumulative Target Values**Frequency

Data Source/ Responsibility for Data

Collection


etc.)Jul 2015-Jun

2016 (A)Jul 2016-Jun

2017 (F)Jul 2017-Jun

2018 (F) YR 4 (F)13 YR5 Methodology

Businesses received business support/advisory services or financial investment

Number 0 2(2) 3 3 3 Annual IFC IFC


Intermediate Result: Risk Management and Transformation, Transformation Preparedness and Establishment of Greenfields

Business loans provided or guaranteed Number N/A

325,500 (132,640)

678,000 1,062,500 1,490,000

Annual MFIs IFC

Value of micro loans disbursed USD N/A

99,889,705 (45,848,555)

211,052,705 333,469,705 469,146,705 Annual MFIs IFC

Number of micro loans outstanding (non-cumulative)

Number307,308 325,500

(204,013)352,500 384,500 427,500

Annual MFIs IFC

Outstanding microfinance loan portfolio of supported institutions (non-cumulative)

USD

55,337,300 62,180,000 (49,787,995)

68,600,000 75,420,000 84,200,000

Annual MFIs IFC

Intermediate Result: Facilitating Knowledge-Sharing Across the Microfinance Sector Number of workshops, training events, seminars and conferences

Number 0 1 (114) 2 3 4 Annual IFC IFC

13 IFC captures results after project closure14 Regional client protection workshop (shared with Jordan)

Enhancing the Investment Climate in Egypt, through Equal Access and Simplified Environment for Investment and Fostered Investment Policy, Legal and

Institutional Framework

A. Basic Project InformationActivity Name: Enhancing the Investment Climate in Egypt, through Equal Access and Simplified Environment for Investment (EASE) and Fostered Investment Policy, Legal and Institutional Framework

Country Name: Egypt Name of Implementation Support Agency(ies): World Bank Group and OECD

Name of ISA Project Leader:

OECD : Andreas Schaal/Nicola Ehlermann-Cache/Marie-Estelle Rey

WB : Sherif Bahig Hamdy/ Nabila Assaf


[email protected]; [email protected]


Recipient Entity: Name and Email of Recipient Entity Contact

Ministry of Investment (MoI) Mahmoud El Ashmawy, Project Manager, Tel.+20 111 937 0282, Email : [email protected], [email protected]

General Authority for Investment & Free Zones (GAFI)

Name: Mona Zobaa Tel: +202 240 55 461 Email: [email protected]

Industrial Development Authority (IDA) Name: Eng. Ismail Gaber, Chairman, Telephone: + 2 0100 685 2840, Email: [email protected]

Egyptian Regulatory Reform and Development Activity (ERRADA)

Name: Tarek Hamza, Executive Director, Telephone: + 2 0100 560 0099, Email:'[email protected]'

Total Amount Approved by the Transition Fund (US$):

7,043,400



WBG: 16,000

OECD: 385,153


5/18/2015


7/1/2015


7/1/2018



Secondary Pillar(s): Inclusive Development and Job CreationEnhancing Economic GovernanceCompetitiveness and Integration





B. Summary of Project Implementation Progress and Key IssuesProject Development Objective:

To improve the regulatory environment for investors through simplified industrial licensing and transparent land allocation processes and to support the Government of Egypt in designing a new investment policy and legal framework, and in strengthening its international investment regime.


Satisfactory



OECD-Executed Component:Following an inception period which has allowed to define and plan targeted activities in line with government priorities and other partners and donors initiatives, the OECD component of the project was officially launched in March 2016, with a high-level conference on “Enhancing the Investment Climate for Competitiveness in Egypt” in Cairo. One year after the Sharm El-Sheikh Economic Development Conference (March 2015) where major reforms were announced, this Conference was a timely opportunity to assess progress and challenges in reforming the business and investment climate and discuss the way ahead. It mobilised 150 participants from a large number of ministries and governmental agencies, representatives of business sector, business associations and civil society, international partners and donors. A first technical activity also took place: a workshop on “Investment dispute settlement and prevention” for 35 representatives of the Ministries of Investment and Justice, including judges from the economic courts, to discuss other country practices with a view to improving the system, building capacity, enhancing the much needed institutional coordination and hence better addressing investors’ concerns. An Egyptian delegation also participated in the OECD Investment Committee in March 2016 and had series of meetings with peers and key stakeholders. Finally, series of exchanges were held on FDI statistics to prepare the ground for future activities.

Implementation is on track. However, the recent Cabinet reshuffle has delayed implementation. A new Minister of Investment was appointed in March and a new Executive Director of GAFI took office in May. Ambassador Yasser El Naggar, Principal Deputy Minister and Counsellor Taha, Principal Legal Advisor in the Ministry of Investment, the nominated counterparts, left end April 2016, while the Vice-Chair of GAFI and a project manager are still coordinating the project. Strategic discussions are on-going and a mission is planned to confirm the strategic orientations of the project and the calendar of activities, so as to ensure that the project’s activities continue to be aligned with the government priorities (e.g., a revision of the Investment Law is now under discussion).

Coordination

Discussions on the implementation of the project were held with representatives of the World Bank who attended the two events organised by the OECD in Cairo in March 2016.

Close and transparent coordination between the two ISAs continues to be essential as the WBG is conducting a parallel fast-track project reviewing the investment legal regime. The WBG fast-track project could serve as a basis for the OECD component of the project to avoid repetition and overlaps while best responding to the priorities of the authorities. The findings of the fast-track report will also help identify government needs for implementation of investment regulations (see sub-component 4.1).

World Bank Group Supported Components:

Negotiations for Transition Fund to support the EASE Project were held and completed on August 17-18,

2015 in Cairo. The Ministry of International Cooperation issued letter of acceptance accordingly.

Project documents were submitted/approved by the World Bank MENA Regional Vice President (October 2, 2015).

Both clients open accounts in the Central Bank, completed (March 8, 2016).

The WBG components implementation was officially launched subsequent to the ministerial change, assigning a new minister of Investment on March 23, 2016. (March 29, 2016).http://www.worldbank.org/en/news/press-release/2016/03/29/egypt-world-bank-signs-5-million-grant-to-ease-regulatory-environment-for-investors

World Bank Group declaration of the EASE Project effectiveness (April 20, 2016).

Implementation preparations have been fulfilled by the Industrial Development Authority (IDA) and the General Authority for Investment (GAFI), where authenticated specimen signatures for authorized persons on behalf of the Recipient to sign applications for withdrawal have been submitted by the Ministry of International Cooperation (June 27, 2016).

GAFI's EASE has updated its procurement Plan (June 23 2016).




Finalize and submit the authorized signatories for the EASE Project. MOIC Mid July, 2016

Procurement Plans updated IDA Mid July, 2016

Bidding documents for system procurement has been published GAFI Mid, July, 2016

C. Implementation Status of Components Component 1: Facilitating accessible and transparent investor services (GAFI)WBG-supported component

Guided GAFI Project Implementation Unit head to finalize the nomination and assignment of PIU team members.

Provided capacity building for GAFI PIU team on procurement and fiduciary aspects of the project, the PIU Team of GAFI attended the automated procurement management system (STEP). And accordingly, authorized system users have been nominated and system accessibility provided (May 11-12, 2016).

Supported GAFI IT Department to establish a roadmap for the IT solution in coordination with third parties, i.e. Ministry of Telecommunication and IT and Microsoft to divide roles for developing integrated solutions.

Currently supporting GAFI PIU in the updating of the Procurement Plan and the preparation of the bidding documents

Previous Rating: Choose an item. Current Rating: Moderately Satisfactory

Cost (US$): 2,250,000.00

Sub-component 1.1: Develop and Implement Online System for Investor Servicing at GAFI

Status of Implementation: StartedSub-component 1.2: GAFI Capacity Building and ICT Upgrading

Status of Implementation: Preparation stageSub-component 1.3: Project Management

Status of Implementation: Not applicable

Component 2: Industrial Sector Regulatory Reform (IDA)WBG-supported component

Guided IDA Project Implementation Unit head to finalize the nomination and assignment of PIU team members.

Provided capacity building for IDA PIU team on procurement and fiduciary aspects of the project, the PIU Team of IDA attended the automated procurement management system (STEP). And accordingly, authorized system users have been nominated and system accessibility provided (May 11-12, 2016).

Supporting IDA IT Dept. to establish a roadmap for IT components and to develop conceptual design of IT solution.

Supporting the Ministry of Trade & Industry in developing Industrial Licensing Reform Strategy and securing GoE commitment to this reform as national priority for Egypt to enhance its business environment;

Providing international good practices for IDA in industrial land management

Previous Rating: Choose an item. Current Rating: Moderately Satisfactory

Cost (US$): 2,250,000.00

Sub-component 2.1: Process re-engineering and automation of industrial licensing

Status of Implementation: Not applicableSub-component 2.2: Implementing a New Approach to Industrial Land Management and an Online Land Allocation System

Status of Implementation: Not applicableSub-component 2.3: IDA Capacity Building and ICT Upgrading


Component 3: Capacity building for managing regulatory reforms (ERRADA)WBG-supported component

Previous Rating: Choose an item. Current Rating: Not Applicable Cost (US$): 500,000.00Sub-component 3.1:

Status of Implementation: Not applicableSub-component 3.2:

Status of Implementation: Not applicableSub-component 3.3:


Component 4: Support the Government of Egypt in designing a new investment policy and legal framework and in strengthening its international investment regime

OECD-supported component

The inception period in fall 2015has allowed defining and planning targeted activities in line with government priorities and other partners’ and donors’ initiatives (two OECD missions in Cairo, a donors’ coordination meeting, several meetings with the Principal Deputy Minister outside Cairo). The official launch of this component was the high-level Conference on “Enhancing the Investment Climate for Competitiveness in Egypt” attended by 150 participants.

Other activities included the technical workshop on “Investment dispute settlement and prevention” for 35 representatives of the Ministries of Investment and Justice, substantive exchanges on FDI statistics, participation of Egyptian stakeholders in OECD meetings (OECD Investment Committee, Conference on International Investment Agreements).

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,484,000Sub-component 4.1: Investment policy and legal regime

Status of Implementation: Consultations, communication and public-private dialogue on investment policies

In coordination with the Ministry of Investment, the OECD organised a high-level Conference on “Enhancing the Investment Climate for Competitiveness in Egypt” in Cairo in March 2016, which marked the official launch of the OECD component of the Project. The Conference brought together 150 participants from a large number of ministries and governmental agencies, representatives of business sector, business associations and civil society, international partners and donors. Attendees discussed with international and national experts a broad range of issues including policies to boost the competitiveness of Egypt in light of other countries’ experiences; ways to upgrade Egypt’s investment policy framework with a view to rebuild investors’ confidence; and responsible investment through good corporate governance, strengthened business integrity and promotion of responsible business conduct. The Conference was an opportunity for public-private policy dialogue, as it gathered stakeholders from relevant ministries and governmental institutions, representatives of domestic business associations, mixed chambers of commerce, but also influential entrepreneurs from local and foreign companies.

A delegation composed of seven high-level policy makers from Ministry of Investment, Ministry of Justice and GAFI, and headed by Ambassador Yasser El Naggar and Counsellor Taha, participated at the March 2016Investment Committee and at the OECD Conference on Investment Treaties. The delegation attended Investment Committee meetings over four days, participated to a special session on International Investment Agreements for MENA countries (with Iraqi NIC and SAGIA), exchanged with their peers, and had a series of meetings with OECD experts.

FDI statistics

Exchanges of information between the FDI statistics Unit of GAFI and the Statistics Unit of the OECD have been undertaken. Egyptian policy-makers from GAFI and the Central Bank were invited to participate to the March 2016 meetings of the Working Group on International Investment Statistics, but were not available to attend. In February, an exploratory questionnaire about FDI statistics in Egypt was sent to GAFI. The answers collected serve as a basis for a preliminary report currently being drafted. The Investment Statistics Unit of the OECD is also exploring the availability of Egypt’s statistics and other sources of information on data sources and methods. The report, reviewing and assessing data collection on FDI statistics will then be shared with GAFI for further feedback. In April2017, a workshop will be organised in Cairo to present the findings of the report and provide capacity-building on FDI statistics compilation. Experts from the OECD Working Group on International Investment Statistics will participate to the capacity-building workshop.

Investment regime and Responsible Business Conduct

The assessment of Egypt’s investment regulatory framework, which will look at selected policy areas pertaining to the investment climate, including Responsible Business Conduct, has been postponed by a few months so as to avoid duplication and overlaps with the ongoing WBG fast-track project.

The following activities will be conducted in the second semester of 2016 and 2017: Based on the findings of the study prepared under the WBG fast-track project, a scoping paper will be

developed to take stock of reforms undertaken and identify remaining policy gaps in the investment regulatory framework. A particular focus will be given to enforcing investment regulations as well as to the framework for responsible business conduct. This report will be presented in the last quarter of 2016.

Based on it, a programme of capacity-building and awareness-raising activities will be developed. It will aim at adapting Egypt’s institutional setting and promoting ownership of existing regulations across the administration, including at local level, so as to support the implementation of the regulatory framework. This will include a capacity-building workshop to be organised in the last quarter of 2016 to strengthen the National Contact Point for Responsible Business Conduct.

Active participation of Egypt in the October OECD Investment Committee is planned.

Sub-component 4.2: Business-related laws, jurisdictions of investment institutions and legal coherence

Status of Implementation: see aboveIt was agreed with the Ministry of Investment to merge sub-components 4.1 and 4.2 to ensure consistency of the project’s activities in line with government priorities and on-going reforms.

Sub-component 4.3: International investment agreements


A delegation composed of seven high-level policy makers from Ministry of Investment, Ministry of Justice and GAFI, and headed by Ambassador Yasser El Naggar and Counsellor Taha, participated in the Freedom of Investment Roundtable discussion on investment treaties in March 2016. Senior members of the delegation also participated in the OECD Conference on "Investment Treaties: The quest for balance between investor protection and governments’ right to regulate” during the same week.

Ambassador El-Naggar gave a cogent presentation at the Conference on the importance for Egypt of achieving an appropriate balance, recent experience with treaties and Egypt’s views on issues relating to achieving balance. Ambassador El-Naggar and members of the delegation also met with staff from the OECD Investment Division specialised in investment treaty policy to discuss in more detail Egypt's recent experience with regard to treaties and ISDS.

A legal expert with Arabic language skills has been recruited and initial analysis of Egypt's treaty network and treaty issues arising from Egypt's dispute resolution experience has begun. Gaps in the publicly available treaties have been identified and will be addressed with the Egyptian government.

The following activities and their sequencing have been agreed with the Ministry of Investment: Analytical review of IIAs (complementary to the UNCTAD review) Awareness raising on IIAs and capacity-building activities for IIA negotiators (2

workshops) Participation in OECD meetings (e.g. FOI roundtables)

Second semester 2016 and 2017

Sub-component 4.4: Investment dispute settlement


The OECD organized a technical Workshop on Investment Dispute Settlement and Prevention in March 2016, in co-operation with the Ministries of investment and justice. This workshop was attended by a focused group of 35 policy-makers and legal experts from the Ministries of Investment and Justice, including judges from the Egyptian economic courts. Participants reviewed the existing dispute settlement and prevention mechanisms applicable in Egypt and discuss investor state dispute settlement mechanisms and dispute prevention policies, with a view of building awareness and capacity of all the Egyptian stakeholders, including experience-sharing on good practices. Participants benefitted from presentations of OECD experts, international lawyers, an investment policy maker from Chile, Egyptian experts and a representative from the Egyptian private sector. Discussions were rich and lively and the participants acknowledged the usefulness of the execise.

Next activities : Building on this first workshop, the OECD plansto organise, in coordination with the Ministry of Investment, a follow-up technical workshop with either the same participants or an extended audience (with policy makers and more private sector representatives), to deepen some specific knowledge, build capacities based on other countries’ experiences inviting national experts, and expose the audience to the international trends and practices in investment disputes. This should be further discussed with Egyptian counterparts. The next workshop is planned end 2016.


(US$)

(x)


(y)

Total (US$)


WBG: 5,000,000 OECD: 1,484,000 6,484,000


0 OECD: 79,066 USD 79,066


0 OECD: 285,361 USD 285,361

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 N/A OECD: 250,000

WB: 250,000OECD: 250,000

WB: 250,0002017 OECD: 275,000

WB: 900,000OECD: 275,000

WB:900,000OECD: 550,000WB: 1,800,000

2018 OECD: 200,000WB:1,350,000

OECD: 198,639WB: 1,350,000

OECD: 398,639WB: 2,700,000


OECD: 99,792WB: 16,000

OECD: 2081

WB: 382,000OECD: 100,000

WB: 398,000

1While the budgeted amount of indirect costs was USD 100,000, the actual amount incurred was USD 99,792 [as per OECD Financial Regulations on VC administrative cost recovery, BC(2011)10].

PDO: To improve the regulatory environment for investors through simplified licensing and transparent industrial land allocation processes and to support the government of Egypt in designing a new investment policy and legal framework and in strengthening its international investment regime.

MENA Transition Fund Cross Pillar 5 Indicators


Cumulative Target Values

Frequency Data Source/Methodology

Data Collection Responsibility Description

Jul 2015 – Jun 2016

A

Jul 2016 – Jun 2017

F

Jul 2017 – Jul 2018

FYR4 Target

Output 5.1.1: Documents Produced and Endorsed # 0 0 267 501 501 Annually Progress Report PIU

Number of roadmaps, frameworks, procedures, licensing requirements, regulatory reform documents produced or endorsed designed to enhance the business enabling environment

Output 5.1.2: Decrees Issued or Structures Established # 0 0 12 24 24 Annually Progress Report PIU

Number of laws, policies, or regulations endorsed and number of units and systems established through capacity building or TA activities to enhance the business enabling environment

Output 5.1.3: Staff Trained # 0 0 95 145 145 Annually Progress Report PIU

Number of public sector staff receiving training in the client agencies to improve capacity for enhanced service delivery to investors

PDO Indicators Unit of Measure Baseline

Cumulative Target ValuesFrequency Data Source/

MethodologyData Collection Responsibility Description

YR1 YR2 YR3 YR4 Target

Av. Duration of Licensing Process Day 320 250 180 75 75 Annually Progress Report PIU

Corresponds with Transition Fund Outcome Indicator 5.1 “Improved enabling environment and government capacity”

Number of land allocation requests processed through the reformed land allocation system

# 0 0 750 2000 2000 Annually Progress Report PIU

Corresponds with Transition Fund Outcome Indicator 5.1 “Improved enabling environment and government capacity”

Effective investment policy, legal and institutional framework and sound international investment regime

# # no no yes N/A Annually Progress Report PMU

Corresponds with Transition Fund Outcome Indicators 3.1 “improved good governance in the public sector” and 5.1 “Improved enabling environment and government capacity”

Intermediate Results IndicatorsComponent 1 (WB) - Facilitating Accessible and Transparent Investment Services (GAFI)

Mapping/Simplification of Entry procedures completed Y/N - - Y - Y Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.1 “Documents produced and endorsed”; (Yes is equivalent to 1 roadmap)

Corresponds with Transition

Energy Social Safety Nets Sector Reforms Technical Assistance Project

A. Basic Project InformationActivity Name: Energy Social Safety Nets Sector Reforms Technical Assistance ProjectCountry Name: Egypt Name of Implementation Support Agency(ies): World BankName of ISA Project Leader: Ashish Khanna/ Mohab Hallouda/ Gustavo Demarco

Email of ISA Project Leader: Ashish Khanna <[email protected]>/ [email protected]

Recipient Entity: Ministry of Electricity and Renewable Energy

Name and Email of Recipient Entity Contact:Eng. Mohsen [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 0

Total Amount Disbursed (Direct and Indirect in US$): 1,915,736

Steering Committee Approval Date: May 15, 2013

Project Implementation Start Date:November 25, 2013

Project Closing Date:December 30, 2016


Primary Pillar (select only one): Enhancing Economic GovernanceSecondary Pillar(s) (select as many as applicable):

Investing in Sustainable GrowthInclusive Development and Job CreationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The proposed project will strengthen the Government of Egypt’s capacity to (i) design a comprehensive fuel subsidy reform strategy, (ii) establish concrete measures for improved financial viability of key energy sector actors and (iii) identify households that would be most vulnerable to the impacts of the fuel subsidy reformRating for progress towards achievement of objective:



Status of Implementation: Post resolution of procurement problems in April 2015, the project has seen awards of all contracts pending two (these two are also in advanced stages of procurement). From almost negligible commitments till June 2015, the project has commitment of USD 3.01 million (almost 50% of budget) by December 2015, with all remaining funds expected to be committed by December 2016. The disbursements are picking up now, with expected disbursement of USD 3.4 mn in calendar 2016. This has been feasible due to seamless collaboration between 4 ministries, and a system of regular review meetings being held between World Bank team and PMT. The project has been upgraded to moderately satisfactory in December 2015 given this turnaround.

A project restructuring request has been received from Ministry of International Cooperation and the PMU to extend the deadline of the project till June 2018 and reallocation of funds between different components. The restructuring mission is scheduled from August 7 to 11, and the project restructuring is expected to be completed by September 2016.


Component 1 Power Sector Institutional Development and Financial Viability

Sub-component 1.1: Electricity Utilities Financial Management and GovernanceThis subcomponent will include a comprehensive analysis and assessment of the current structure of the public sector power utilities (EEHC and affiliated companies) including organizational, governance, financial and accounting management, and performance monitoring and evaluation. The assessment will propose options for the power utilities to improve their organization and corporate structure, financial management and governance structure.

Status of Implementation: Contract awarded, kick off held in October 2015 and draft report already submitted. Work well underway

Sub-component 1.2:TSO capacity buildingProcurement of the consultant to set up an independent transmission system operator is well under way with technical evaluation of consultants completed and contract expected to be awarded by Feb 2016.Status of Implementation: Contract expected to be awarded in February 2016.Sub-component 1.3: Action Plan for the Establishment of an Energy Efficiency Unit at the Ministry of Electricity and EnergyThis subcomponent will support the development of an action plan to establish an energy efficiency unit that could be housed at MOEE which would have as its primary objective the implementation of the National Energy Efficiency Action Plan (NEEAP) for the electricity sector

Status of Implementation: Contract awarded, inception report already submitted and successful workshops already undertaken

Sub-component 1.4: Implementation Support to the PMT: This subcomponent will provide support to the Project Management Team (PMT) in implementation of the project. The support will be limited to consultancy services to build the capacity of the PMT in undertaking its responsibilities and for the preparation of the required project annual audit reports. PMT received procurement training from the Bank specialist.Packages already awarded or in final stages of award

Component 2: Energy Pricing and Fuel Switching Reform Technical Assistance

Sub-component 2.1: Energy Pricing and Fuel Switching Reform StrategyThis subcomponent will develop a comprehensive strategy to phase out fuel subsidy including assessment of the effects of such strategy on the economy, specifically on GDP, inflation, employment, including any gender considerations, as appropriate as well as sectorial multipliers.

Status of Implementation: Contract awarded and contract proceeding smoothly

Sub-component 2.2: Development of a Communication Strategy for Fuel ReformThis subcomponent will deliver a communication strategy and communications road-map to support implementation of the fuel subsidy reform strategy.

Status of Implementation: Contract just awarded, signed and kick off on February 4, 2016. Assignment well underway.

Component 3: Strengthening Social Safety Nets Technical Assistance

Sub-component 3.1: Support the Establishment of the Database of the Poor and VulnerableOne of the main objectives of the project is to support the Government of Egypt to better target the poor and thereby to mitigate the adverse impact of subsidy reform. The activities under this subcomponent will support the development of a database of the poor and vulnerableStatus of Implementation: In building the Unified National Registry (UNR), the Ministry of State for Administrative Development (MSAD) will integrate the Family Card System database, as the largest database, with administrative data from other databases. Accordingly, MSAD has to coordinate with different ministries to ensure the smooth sharing and sustainable exchange of the data required.

Request for Expression of Interest (REOI) for consulting firms was prepared and Bank no objection was provided for its publication. Bank issued no objection for the TOR and selection of a Sr. Technical Officer for MSAD’s Component 3.1 to begin working on the Unified Registry team under the supervision of the Smart Card Manager. Bank awaits contract from PMT. Hiring consulting Firm for Data base developing reached technical evaluation stage.

Sub-component 3.2: Baseline Survey of Beneficiary FamiliesThis sub-component’s objective is to undertake the design and collection of a nationally representative baseline survey data to gauge the impact on efficiency in social service delivery and on the beneficiaries of the ongoing and planned reform programs, including the introduction of the smart card system, the planned cash transfer scheme, re-targeting of fuel subsidies, re-targeting of the bread subsidy, social health insurance for the poor and so on. The proposed survey will establish a baseline for monitoring and evaluating the medium-term and long-term impacts of these reform initiatives. Status of Implementation: The baseline survey is under design. The targeting methodology to be used for the survey is in progress.Sub-component 3.3: Establishment of Technical Working Unit to Support SSN ReformThe main objective of this sub-component is to support establishing and financing a technical working unit(TWU) of 3-4 professionals. The TWU will support the committee in charge of overseeing the preparation and introduction of the Cash Transfer Program and developing a medium term social protection strategy and vision.

Status of Implementation: The Economic Justice Unit, at the MOF, was established and mandated with the coordination of Social Safety Net Programs with different ministries. The members of the TWU, for targeting methodology and cash transfer program, are being hired by the EJU. Bank provided no objection on Six individual consultants. Contracts were signed

D. Disbursements of Funds for Direct Project ActivitiesCountry-Execution

(US$)

(x)


(y)

Total (US$)


6,500,000 6,500,000


6,500,000 6,500,000

TOTAL Actual Amount Disbursed (c):

1,374,171 1,374,171

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 226,370 226,3702015 81,000 667,934 748,9342016 900,000 1,500,000 3,150,0002017 1,500,000 1,000,000 5,650,0002018


541,565 55,635 597,200


Annex 1: Results Framework and MonitoringCountry: Egypt, Arab Rep

Project Name: EGYPT Energy/Social Safety Nets Sector Reforms Technical Assistance (P144305)

Results Framework

.

Project Development Objectives

.

PDO Statement

The proposed project will strengthen the Government of Egypt's capacity to (i) design a comprehensive fuel subsidy reform strategy, (ii) establish concrete measures for improved financial viability of key energy sector actors and (iii) identify households that would be most vulnerable to the impacts of the fuel subsidy reform.

These results are at Project Level

.

Project Development Objective Indicators

Cumulative Target Values Data Source/ Responsibility for

Indicator Name CoreUnit of Measure

BaselineNov 2013 -

Oct2014A

Nov 2014 - Oct 2015

A

Nov 2015 – Oct 2016

A

Nov 2016 – Dec 2016

F

End Target Frequency

Methodology Data Collection

Direct project beneficiaries

Number 0.00 0 (A) 0 0 0 500.00 Semi-Annually

Progress Reports, Implementation Support

PMT and World Bank Team

Reports

Female beneficiaries

PercentageSub-TypeSupplemental

0.00 0 (A) 0 0 0 35.00 Semi-annually

Progress Reports, Implementation Support Reports

PMT and World Bank Team

Reform options analyzed to improve the financial viability and governance of EEHC is prepared.

Yes/No No No (A) No Yes Yes YesSemi-Annually


PMT, and World Bank Team

A long term strategy for the fuel supply to power generation is prepared.




An action plan is prepared for the 1) establishment of an Energy Efficiency Unit at the Ministry of Electricity and 2) for at leasttwo of the energy efficiency projects in NEEAP.

Yes/No No No (A) No No Yes YesSemi-Annually



A comprehensive energy pricing and fuel switching

Yes/No No No (A) No No Semi- Annually

Progress Reports, Implementati

PMT, World Bank Team

strategy for Egypt including detailed action plans for compensatory measures to mitigate the impact of subsidy removal is developed.

on Support Reports

A communication strategy for fuel subsidy reform including public consultation is prepared.




A database of the poor and vulnerable is developed with 10 million households registered in the new poverty database.

Yes/No No No (A) No No Yes YesSemi-Annually

Progress Reports and Implementation Support Reports


.

Intermediate Results Indicators

Cumulative Target Values Data Source/ Responsibility for

Indicator Name Core Unit of Baseline YR1 YR2 YR3 YR4 End Target Frequency Methodology Data Collection

Measure

EEHC Capacity building program in financial and governance is developed and number of training workshops/events for EEHC.

Yes/No No No (A) Yes Yes Yes YesSemi-Annually



Ministry of Petroleum and Ministry of Energy established coordinating committee to develop and implement fuel to power.

Yes/No NoYes (A- Coordination exist)

Yes Yes Yes YesSemi- Annually



Inter-ministerial coordination is established and maintained to facilitate and implement energy subsidy and communication strategies and social safety nets program.

Yes/No Yes (A) No Yes Yes Yes YesSemi-Annually



.

.

Inclusive Regulations for Microfinance

A. Basic Project InformationActivity Name: Inclusive Regulations for Microfinance

Country Name: The Arab Republic of Egypt Name of Implementation Support Agency(ies):

The World Bank

Name of ISA Project Leader: Ghada Ismail Email of ISA Project Leader: [email protected]

Recipient Entity: The Egyptian Financial Supervisory Authority


[email protected]



Total Amount Disbursed (Direct and Indirect in US$): 1.16M


6/11/2014


8/1/2014


10/31/2018



Secondary Pillar(s): Inclusive Development and Job CreationInvesting in Sustainable GrowthChoose an item.

B. Summary of Project Implementation Progress and Key Issues

Project Development Objective: The project development objective (PDO) is to strengthen the regulatory and institutional framework of the microfinance sector in Egypt.


Satisfactory


Brief Summary of Project Implementation Status: The Project has been approved for funding under the MENA Transition Fund by the Transition Fund Steering Committee on June 11, 2014. The project became effective as of September 28, 2014. The project is progressing very well. A list of some achievements since effectiveness include:

(i) EFSA is making significant progress with the licensing process for NGOs. Moreover, the NGOs have begun submitting the monthly reports since November 2015. As of March 2016, 651 NGOs received their final licenses; of which 11 NGOs fall under Tier A (Gross Loan Portfolio (GLP) > EGP 50 million), 18 NGOs fall under Tier B (EGP 10 million < GLP < EGP 50 million), and 622 NGOs fall under Tier C (GLP < EGP 10 million).

(ii) Developing the general and specific technical requirements needed for designing the MIS software to help EFSA effectively monitor the microfinance industry in Egypt. Moreover, the terms of reference to solicit a vendor to develop the aforementioned MIS system was prepared.

(iii) Preparing the first draft of the consumer protection guide for MFIs covering the relevant areas necessary to create an effective and strong consumer protection system.

(iv) organizing a study tour to Uganda (to be followed by additional study tours) to get exposure to EFSA on best practices in the microfinance sector (particularly with respect to: sustainability, outreach, product development and diversification, risk management, social performance management, consumer protection), in


addition to drafting and implementation of microfinance regulations and ongoing supervision of the sector

(v) providing technical assistance to EFSA to review the draft law, relevant directives and board decisions for regulating and supervising the private pension Funds (PPFs) sector in Egypt to ensure better asset management and governance by PPFs following the international best practices.


Component 1: Developing the regulatory framework for microfinance. This component will support the establishment of a regulatory framework that is conducive to growth and stability of the non-bank financial institutions (NBFIs) in Egypt. Critical to the success of the draft Microfinance Law are the executive regulations that should be robust and comprehensive and provide clear guidelines for NGO MFIs, finance companies, and other market players to easily comply with the new supervisory framework. The new regulations will adopt light prudential requirements, with a focus on fit and proper requirements, strong governance rules, consumer protection (especially transparency, disclosure), and internal and external controls.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1.5 million

Sub-component 1.1: Technical assistance to EFSA in finalizing the Microfinance Executive regulations and supervision manuals.

Status of Implementation: Done. On 13 November, The President has issued Presidential decree No. 141 of 2014 promulgating the Microfinance Law and the Egyptian Financial Supervisory Authority (EFSA) Board has issued implementing decrees 172/2014, 173/2014, 31/2015, 1/2015 and 2/2015 on the licensing requirements and operational rules to regulate companies and non-governmental organizations (NGOs) to engage in microfinance activities and created a unit to supervise their activities. Moreover the Microfinance union charter issued, board elected, and the 2nd MF Union general assembly was held in addition to the publishing of the MF policy manual and the MF financial reporting rules decree was issued.

Sub-component 1.2: Technical assistance in forming the NGO Oversight Board and drafting and finalizing its Directives

Status of Implementation: EFSA Board of Directors issued resolution No. 160 /2014 dated 12.03.2014 to form the Board of Trustees to supervise civil associations and NGOs microfinance activity. The Board of Trustees include in its membership all key stakeholders including The Central Bank of Egypt, The Social Fund for Development, Ministry of Social Solidarity, NGOs and other relevant bodies. The Board of Trustees meets regularly to follow up on the activities. The Board of Trustees meets regularly to follow up on the activities, and it has convened five times since inception.

Sub-component 1.3: Conducting study tours

Status of Implementation: An international Study tour to Uganda15 was conducted to learn and understand the existing microfinance regulatory framework in Uganda and its alignment with microfinance best practices. Nine participants from the Board of Trustees of EFSA's Microfinance Department and the Microfinance Unit, staff members from EFSA as well as representatives from the Egyptian Microfinance Union (Association) and MFIs took part in the tour. The program of the tour was set in close coordination with Bank of Uganda and the German Federal Enterprise for International Cooperation (GIZ) to provide good lessons for the team about regulation of NGOs.The institutions selected for visitation included: (i)The Department of Non-Bank Finance Institutions in Bank of

15 Why Uganda? (i) one of the strongest microfinance markets in Africa – large outreach and sustainability; (ii) long consultative and gradual process (lasted for almost a decade) towards regulation; (iii) over 15 years of experience in microfinance regulation and supervision; (iv) tiered regulatory framework (4 tiers including banks); (v) on-site and off-site supervision of Tier 1 – 3 MFIs; (vi) challenge of regulating hundreds of Tier 4 NGOs; and (vii) strong microfinance network.

Uganda (BOU), (ii)The department of Financial Services in the Ministry of Finance, Planning and Economic Development; (iii) The Association of Microfinance institutions of Uganda (AMFIU); (iv) The support institutions for microfinance including GIZ, Stromme Microfinance East Africa ltd and The Microfinance Support Center Limited; (v) Financial institutions across all the four tiers i.e.

a. 1 Tier (Commercial bank) - Centenary Bank which has the biggest microfinance portfolio in the countryb. 1 Tier 2 (Credit Institution) – Opportunity Bank, formerly an NGO that transformed into a regulated

financial institutionc. 2 Tier 3 (Micro Deposit-taking Institution) – UGAFODE and PRIDE, both formerly NGOs and currently

RFIsd. One Tier 4 MFI – BRAC Microfinance, an NGO with the largest microfinance portfolio and branch

network in the country.

Sub-component 1.4: Advisory services to strengthen the regulatory framework for NBFIs, aiming at enhancing financial inclusionStatus of Implementation: technical assistance is being provided to EFSA to review the draft law, relevant directives and board decisions for regulating and supervising the private pension Funds (PPFs) sector in Egypt to ensure better asset management and governance by PPFs following the international best practices. The Bank team is also working closely with EFSA in the planning of an international study tour that would enable learning about the various countries’ PPFs.Moreover, further support will be extended to EFSA to conduct study tours for its staff to be introduced to international best practices in applying, monitoring and supervising leasing and factoring.

Component 2: Establishing and operationalizing the Microfinance Unit at EFSA. The objective of this component is to ensure that the Microfinance Unit adopts international best practices and develops the capacity necessary to implement the law and associated executive regulations effectively so as to support the growth of the overall microfinance sector in Egypt. It will support EFSA through the provision of technical assistance and advisory services in establishing and equipping the Microfinance Unit, which would be responsible for operationalizing the executive regulations and policy, enforcing rules, ensuring compliance, and supervising MFIs. This will help EFSA to establish appropriate on-site and off-site monitoring systems and procedures, advice on enforcement mechanisms and training on the operationalization of the Microfinance Law and its executive regulations. The IT system will also allow the compilation of sectoral data to monitor macro prudential indicators, which would allow adequate and timely monitoring of the performance and soundness of microfinance sector and NBFIs. The system will also help in identifying financial inclusion barriers created by some financial institutions (such as minimum balance amounts for opening a bank account).


Current Rating: Satisfactory Cost (US$): 1.5 million

Sub-component 2.1: Establishing the Microfinance Unit, and capacity building and training of key staff

Status of Implementation: EFSA Issued decision no. 179 of 2014 to create a microfinance unit in EFSA to supervise civil associations and NGOs microfinance activities. The unit is established and fully equipped with a competent head appointed as per directive no. 1097 of 2014. Moreover, EFSA issued directive no. 159 of 2014 regulating the functions of the microfinance unit. Key staff are appointed in the Microfinance unit as follows: a Head of Central Department for Microfinance, a General Manager for inspection & compliance and a Manager for financial planning. In addition to an Executive Director of NGOs microfinance supervisory unit, one Senior and three Specialists for supervision & analysis and an Accountant & procurement specialist. The Microfinance Unit is in the process of hiring new staff members, namely; an Inspection and Compliance Specialist, Financial Statements Examiner, Development Expert, and an Economic Researcher. A training needs assessment was conducted through open discussions with all the Microfinance Unit staff members in addition to some key EFSA staff members that work directly on all non-banking financial activities (including microfinance); namely, the

Financial Products Development Executive, the General Manager of Investor Awareness Department, and the Legal Expert, to identify their capacities and the skills needed to optimally perform their jobs. Accordingly, the World Bank team shared a draft capacity building plan for the Microfinance Department- including a list of training programs and other capacity building activities for all the staff working on microfinance-related issues, especially those directly involved in inspections and supervision, to address the gaps and needs of the Microfinance Unit, events to be attended, and additional study tours.

Sub-component 2.2: Strengthening the institutional infrastructure, with the required equipment and IT, both software and hardware. Technical assistance to Efsa to establish a solid MIS system to help monitor the development of the microfinance industry in Egypt, promote financial inclusion and improve performance of the involved parties in this area will follow.Status of Implementation: The unit is currently fully equipped & furnished and the microfinance NGO prudential reporting software is ready. The World Bank team has provided Technical assistance in developing the general and technical requirements for the MIS software based on the reporting templates and standards for preparing financial statements required by the law. The requirements acknowledges that the design and implementation of the MIS software should be assisting the Microfinance Central Department with the (i) compilation and regular updating of the basic institutional data required from all licensed MFIs; (ii) compilation, review, and analysis of the periodic regulatory reports and financial statements required from all licensed MFIs; (iii) compilation of all additional documents and information required by the regulations; (iv) archiving of all relevant data, reports, and information provided by the MFI or compiled by EFSA under the MFI’s profile; and (v) generation of a variety of analytical performance. In addition, the terms of reference to develop the aforementioned MIS system has been developed, in consultation with EFSA, in order to clarify scope of work and expected deliverables, to expedite implementation in preparation for the bidding process to solicit a vendor to design and implement the software. The RFP should be announced within the coming week.

Component 3: Promoting accountability, governance and consumer protection. This component will support EFSA in enhancing accountability and governance, as well as developing a robust consumer protection capacity within the microfinance industry, and in developing financial literacy amongst target population groups. The tasks related to consumer protection will be handled by EFSA’s PMU.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1 million

Sub-component 3.1: Enhancing Consumer protection, financial literacy, and public awareness campaigns

Status of Implementation: The draft of the consumer protection guidelines covering microfinance companies and NGO-MFIs was reviewed by the World Bank team and detailed comments were provided covering the relevant areas necessary to create an effective and strong consumer protection system. In the coming period, the WB will be supporting EFSA in the implementation (i.e. ensure that the topics covered within the guidelines are well disseminated and understood by MFIs and clients and are in fact considered and reviewed through on-site and off-site supervision, provide templates and examples whenever possible for contracts, code of conduct, best practices, disclosure requirements, etc. which EFSA could share with the MFIs for guidance, etc.). Moreover, the team will be working with EFSA on developing a consumer protection strategy to cover all the activities that need to be conducted over the next 2 years. EFSA has worked on developing 19 awareness messages for the MFIs, 7 awareness messages for clients, and 6 slogans for microfinance. The Bank team is currently supporting EFSA in reviewing these messages and identifying the best method(s) to relay these messages. The design of a public awareness campaign on the rights and responsibilities of clients under the new Microfinance Law and the supervisory role of EFSA.

Sub-component 3.2: Training and capacity building of the Microfinance Oversight Board

Status of Implementation: The members of the Microfinance Oversight Board participated in a study tour to Uganda to learn and understand the existing microfinance regulatory framework in Uganda and its alignment

with microfinance best practices.

D. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution (US$

Million )

(x)

Direct Cost for ISA-Execution (Million

US$)(y)

Total (Million US$)


4,000,000 4,000,000


4,000,000 4,000,000

Actual Amount Disbursed (c): 1,160,405 1,160,405

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End20142015 500,000 800,000 1,300,0002016 600,000 500,000 1,100,0002017 500,000 500,000 1,000,0002018 300,000 300,000 600,000

F. Disbursements of Funds for Indirect Costs (US$)Disbursed (Million US$) Available (Million US$) Total (MILLION US$)

171,564 283,341 455,445


PROJECT DEVELOPMENT OBJECTIVE: The project development objective (PDO) is to strengthen the regulatory and institutional framework of the microfinance sector in Egypt


Cor

e Unit of Measure Baseline

Cumulative Target Values Frequency

Data Source/Methodology


Collection

Aug 2014 – Jul 2015

A

Aug 2015 –

Jul 2016A

Aug 2016 –

Jul 2017F

Aug 2017 –

Oct 2018

F

New regulatory framework effective for MFIs, including NGOs-MFIs Yes/No No Yes Yes Yes Yes Annual EFSA EFSA

Number of MFIs licensed by EFSA under the Microfinance Law Number 0 440 654 615 620 Annual EFSA EFSA

Number of NGOs engaged in microfinance activities (reported by the Microfinance NGOs Oversight Board) Number 0 450 651 610 615 Annual EFSA EFSA

Number of microfinance beneficiaries under the Microfinance Law Number 0 1,521,000 1,580,000

1,580,000

1,600,000 Annual EFSA EFSA

Female MFI beneficiaries of microfinance loans Percentage 0 0 NA 30 35 Annual EFSA EFSA


Component I: Developing the Regulatory Framework for Microfinance

Issuance of the Microfinance Executive Regulations by EFSA Yes/No No Yes Yes Yes Yes Annual EFSA EFSA

Frequency of meetings of the Microfinance NGOs Oversight Board Number 0 4 5 12 16 Annual EFSA EFSA

Component II: Establishing and Operationalizing the Microfinance Unit at EFSA

Microfinance Unit established and operational at EFSA Yes/No No Yes Yes Yes Yes Annual EFSA EFSA

Number of staff of MFIs trained Number 0 0 8 12 16 Annual EFSA EFSA

Microfinance sector reports disclosed by EFSA Number 0 0 1 3 7 Annual EFSA EFSA

Number of training programs for Microfinance Unit staff Number 0 0 1 11 13 Annual EFSA EFSA

Component III: Promoting accountability, governance and consumer protection

Number of staff and clients trained—workshops, study tours, and capacity building events Number 0 400 1800 500 600 Annual EFSA EFSA

Number of awareness and consumer protection initiatives launched and implemented by EFSA Number 0 9 12 14 16 Annual EFSA EFSA

Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making

A. Basic Project InformationActivity Name: Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making

Country Name: Egypt Name of Implementation Support Agency(ies): OECD

Name of ISA Project Leader: Andreas Schaal Email of ISA Project Leader: [email protected]

Recipient Entity: National Council for Women (NCW)

Total Amount Approved by the Transition Fund (US$): 593,433.00



Steering Committee Approval Date:5/19/2015






B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: Increase women’s participation in Parliament, local councils and policy-making to underpin and drive inclusive development


Satisfactory



Following the successful launch of the project in December 2015, the establishment of the Steering Group and CSO Advisory Group, great progress has been made in the first half of 2016, with continued support from the Egyptian government.

Progress has been due to solid coordination between the National Council for Women and the OECD. The NCW was pivotal in arranging interviews with Egyptian governmental entities (e.g. Parliament, local councils, Ministries) and civil society. For example, the OECD and peer-reviewers met with high-level government officials, academics, NGO representatives, media personnel, legal experts on Egyptian elections, MPs, former local council members etc. during May’s fact-finding mission, which led to rich findings to support the drafting of outcomes reports and inform Recommendations to be made in them.

Project donors remain engaged in the project and periodic updates are given on progress via emails, conference calls and short visits during missions. Representatives from all donor countries were invited to participate in this year’s Regional Dialogue and many attended (i.e. Italy, Canada, Great Britain, France & Germany). The endorsement of top-tier members of the Parliamentary Secretariat, especially H.E. Ali Abdel Aal of this project during a meeting held with him in May will be highly beneficial to implementation of this project. Likewise, there has been strong governmental support from the Ministry for Local Development (MOLA), the Ministry for

Youth and Sports (MOYS), and the Acting Secretary-General of the High Elections Commission demonstrated in participation in fact-finding. The MOYS has agreed to co-host 2b capacity building in order to increase the presence of female youth in trainings and provide the OECD and NCW with facilities to conduct trainings in (via youth centers). Both MOLD and MOYS have agreed to join the 2b capacity-building programme for women candidates in order to educate them on the new laws (e.g. Local Administration law, Electoral Law, amendments to Political Rights Law) that are expected to be debated and enforced by the Egyptian Parliament later this year.

Main achievements so far include:

A guide on the methodology and framework to conduct Component 1a: Mapping and analysis of parliamentary and local council electoral and workplace operations (including internal parliamentary procedures), processes and policy frameworks through a gender lens and Component 2a: Conducting country-based assessment of the existing opportunities and current challenges faced by women candidates was drafted, finalized and then contextualized based on Egypt’s specific circumstances (e.g. taking into account the current legal framework, institutions and state of play in the country.

Additionally, a perceptions survey combining elements of Assessment 1a and 2a has been created and will be circulated among Egypt’s Parliamentary Secretariat and Members of Parliament to broaden the reach of research for the project and best identify how to design capacity building and seminars, tailored to Egypt’s needs.

The first regional dialogue for the project was hosted in Amman, Jordan from 4-5 May 2016, within the 2016 Women in Parliament’s (WIP) Global Summit to maximize the networking opportunities of MENA policy-makers and stakeholders. Seventeen MENA countries participated and sent Parliamentary delegations. The event was co-organized with WIP and the Jordanian Parliament and held under Jordan’s Parliamentary dome. Egypt, Morocco and Jordan were present on all speaker panels organized by the OECD in sync with the regional project. A total of three sessions were covered with explicit connection to the regional dialogue: 1) Women’s political participation across all levels in the MENA region, 2) Inclusive Electoral Processes and Systems, and 3) Increasing Consultation between women’s CSOs and Parliament. Additionally, there were three plenary sessions and nine other parallel sessions on topics ranging from women’s role in peacebuilding, to policy responses to migration and political violence against women. In total, over 500 participants attended, including over 400 MPs, 2 current Heads of State and 5 former Heads of State, government officials, members of civil society, local councils and academia. In all, there were 86 countries present.



Capacity Building for political candidates Balancing duties and responsibilities of a local council

member Introduction to voting and civil rights leadership development and local council procedures Running successful campaigns: campaign fundraising and

financial integrity of a local council member

OECD/NCW 9/30/2016

C. Implementation Status of Components Component 1: Making legislatures transparent, equitable, and gender-sensitive - Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 200,105

Sub-component 1.1: Mapping and analysis of parliamentary electoral and workplace operations, processes and policy frameworks through a gender lens, including in selected local election councils

Status of Implementation: This assessment was conducted between 9-14 May 2016. An outcomes report following the fact-finding mission is currently being drafted and will be circulated among relevant stakeholders this fall for validation, revisions and completion.

A gender expert from Egypt, Gihan Abou Zeid, and two peer-reviewers joined the mission – Ms. Mary Hanafin from Ireland (former MP, former Vice-Chair of her political party, held multiple Ministerial posts in Irish government, and current local council member) and Mr. Anis Zahraz (Head of Unit on Women’s Economic Empowerment, Ministry for Woman, Family and Childhood in Tunisia and expert on inclusive electoral processes).

Interviews, based on the Assessment Guides for Component 1a and 2a, with over 80 individuals were held over the course of the mission. Those interviewed included:

- Members of the National Council for Women board who also serve as Heads of committees and hold or have held governmental posts- members of academia and political think tanks- members of the CSO Advisory Group - President of the Arab Women’s Association- Representative from the Ministry for Local Development- Representative from the Ministry for Youth and Sports- Representative from the Ministry of Justice- Representative from the High Elections Committee- Advisor to the Prime Minister on Elections- Members of the Egypt’s Parliamentary Secretariat- President of Parliament, Mr. Ali Abdel Aal- current male and female MPs- male and female leaders of political parties - Past/prospective females candidates, male and female community leaders, former local council members from the city, district and village level

Sub-component 1.2: Providing country-based capacity building activities to parliamentarians, selected local electoral committees and secretariats

Status of Implementation: Seminars will be held in 2017 after local elections have been held. When local election will be held is yet to be determined (but expected to be early 2017).

The national study visit will take place in June 2018.

Component 2: Strengthening capacity and skills of women parliamentarians and the national and local level

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 223,642

Sub-component 2.1: Conducting country-based assessment of the existing opportunities and the current challenges faced by women candidates

Status of Implementation: This assessment was conducted form 9-14 May 2016. An outcomes report following

the fact-finding mission is currently being drafted and will be circulated among relevant stakeholders this summer for validation, revisions and completion. Three governorates were visited to conduct interviews – Gharibiya, Beni Suef and Cairo governorates.

A gender expert from Egypt, Gihan Abou Zeid, and two peer-reviewers joined the mission – Ms. Mary Hanafin from Ireland (former MP, former Vice-Chair of her political party, held multiple Ministerial posts in Irish government, and current local council member) and Mr. Anis Zahraz (Head of Unit on Women’s Economic Empowerment, Ministry for Woman, Family and Childhood in Tunisia and expert on inclusive electoral processes).

Interviews, based on the Assessment Guides for Component 1a and 2a, with over 80 individuals were held over the course of the mission. Those interviewed included:

- Members of the National Council for Women board who also serve as Heads of committees and hold or have held governmental posts- members of academia and political think tanks- members of the CSO Advisory Group - President of the Arab Women’s Association- Representative from the Ministry for Local Development- Representative from the Ministry for Youth and Sports- Representative from the Ministry of Justice- Representative from the High Elections Committee- Advisor to the Prime Minister on Elections- Members of the Egypt’s Parliamentary Secretariat- President of Parliament, Mr. Ali Abdel Aal- current male and female MPs- male and female leaders of political parties - Past/prospective females candidates, male and female community leaders, former local council members from the city, district and village level

Sub-component 2.2: Building women’s capacities to participate in elections and parliamentary operations at national and sub-national levelsStatus of Implementation: Implementation will take place in Cairo or Giza governorate(s) in September 2016, bringing women from governorates across Egypt to participate in capacity building exercises.

Logistical arrangements, finalization of a programme for 2b capacity building and identification/selection of participants for 2b capacity building are currently ongoing.

The study visit will tentatively take place in June 2018.

Component 3: Strengthening public consultation capacity of parliaments and women’s CSOs in law-making processes

Previous Rating: Not Applicable

Current Rating: Not Applicable

Cost (US$): 119,004

Status of Implementation: This component is scheduled to take place at a later stage in the project –most likely in late 2017, early 2018.

Component 4: Regional Dialogue



Cost (US$): 50,682

Status of Implementation: The first regional dialogue for the project was hosted in Amman, Jordan from 4-5 May 2016, within the 2016 Women in Parliament’s (WIP) Global Summit co-organized with WIP and the Jordanian Parliament and held under Jordan’s Parliamentary dome. Dr. Heba Hagres, Member of Parliament from Egypt, Mr. Omar Marwan, Acting Secretary General for Egypt’s Supreme Elections Commission and Mona Mounir, Member of Parliament were speakers on behalf of Egypt. It has been agreed that the 2017 regional dialogue for the project will be held in Egypt.


(US$)

(x)


(y)

Total (US$)


OECD: 593,433 USD OECD: 593,433 USD



Actual Amount Disbursed (c): OECD: 159,090 USD OECD: 159,090 USD

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 OECD: 100,000 USD OECD: 100,000 USD2017 OECD: 120,000 USD OECD: 90,000 USD OECD: 210,000 USD2018 OECD: 100,000 USD OECD: 24,346 USD OECD: 124,343 USD


OECD: 39,900 USD 0 USD OECD: 39,900 USD


Project Development Objective (PDO): Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making

Indicators by Component Unit Baseline Cumulative Target Values Frequency Data Source/Methodology


Description (Indicator Definition, etc)

Jan-Dec 2016

F

Jan-Dec 2017

F

Jan-Sep 2018

FIndicator 1: No. of assessments and guidelines completed and approved

Quantitative Existing yes yes yes once Project progress reports

Project Implementation Team (PIT).

Assessments, reports, action plans, roadmaps, models of good practices or frameworks designed to enhance the enabling environment

Indicator 2: No. of internal regulations and policy proposals endorsed

Quantitative Existing yes yes yes annually Project progress reports


Internal parliamentary operations, parliamentary secretariat

Indicator 3: No. of programs and projects designed and implemented to promote more gender sensitive and equitable allocation of government resources

Quantitative none yes yes yes annually Project progress reports


Programmes and projects that support reform of government safety net systems, subsidy policies and other related programs and thereby promote more efficient and equitable allocation of resources

Indicator4 : No. of public institutions (Parliament, Government Bodies and institutions) received support to conduct mapping exercise of the current situation

Quantitative none

20 40 160 annually Project progress reports


Government bodies, institutions and local government units received support services aimed at increasing their capacity to delivery public services to constituents

Indicator5 : No. of trained representatives of parliamentary secretariat, parliamentarians, local elected officials and women candidates

Quantitative none Yes Yes Yes annually Project progress reports


Public sector staff received training in various thematic areas to improve their capacity for better public service delivery

Indicator 6: No. of CSOs, women or youth groups engaged and empowered at the central and local level

Quantitative Existing Yes Yes Yes annually Project progress reports


Number of CSO’s involved in public consultations and Number of awareness campaigns, hits on the website and regional meetings;

communication strategies; electoral commissions and parliamentary secretariat


Component 1: Making legislatures transparent, equitable, and gender-sensitive

Indicator 1: Parliament, Government Bodies and institutions received support to conduct mapping exercise of the current situation

Qualitative yes n/a n/a Once Project progress report

PIT Mapping exercise for gender sensitive parliamentary and electoral operations, processes and policy frameworks

Indicator 2: No. of trained representatives of parliamentary secretariat, parliamentarians and local elected officials

Quantitative

40 80 100 Annually Project progress report

PIT Number of training seminars, advisory sessions, toolkits and guidelines

Component 2: Strengthening capacity and skills of women candidates for parliament Indicator 3: Studies, assessment, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Quantitative

yes yes n/a Once in 1st and 2nd year

Project progress report

PIT set of targeted policy recommendations, supported by a communication strategy

Indicator 4: Women candidates for parliamentary elections, youth groups trained, engaged and empowered to participate in public life

Quantitative

40 80 160 Annually Project progress report

PIT training materials for the trainers developed during the workshops, training sessions, feedback from the training session


Indicator 5: CSOs, women or youth groups engaged and empowered at the central and local level

Quantitative

yes yes yes Annually Project progress report

PIT CSOs, women or youth groups engaged and empowered at the central and local level aimed at increasing the involvement of these groups in public policies

Indicator 6: Parliament and local elected institutions received support services to develop their engagement capacities

Quantitative

Yes Yes Yes Annually Project progress report

PIT Parliament and local elected institutions received support services aimed at increasing their capacity to engage stakeholders, including women’s groups and

mainstream gender sensitive principles

Component 4: regional policy dialogue

Indicator 7: improved enabling environment and institutional capacity across the region

Quantitative

1 2 3 Annually Project Progress Reports

PIT Number of models of good practices

Indicator 8 : Documents produced and endorsed at the regional level

Quantitative

Yes Yes Yes Annually Project Progress Reports

PIT Studies, assessments, reports, action plans, roadmaps, models of good practices or framework


Building Capacity & Institutional Strengthening of Ministry of International Cooperation

A. Basic Project InformationActivity Name: BUILDING CAPACITY AND INSTITUTIONAL STRENGTHENING OF MINISTRY OF INTERNATIONAL COOPERATION (MOIC)


Name of ISA Project Leader: (from GoE)

Moataz [email protected]

Email of ISA Project Leader: (from AfDB)

Prajesh [email protected]

Recipient Entity: Government of Egypt, MOIC Director North Africa, Jacob [email protected]





12/8/2015


April 2016


March 31 2020



Secondary Pillar(s):Investing in Sustainable Growth

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: Contribute to the enhancement and improvement of the performance of the Ministry of International Cooperation in Egypt and to help strengthen and upgrade the institutional capacity and human resources of the ministry to enable it to carry out its functions of aid coordination and resource mobilization in the most effective way possible.


Satisfactory



The project has started implementation with recruitment of the three project team members (Project Manager, Procurement person (part time) and Accountant (part time). Action has been initiated on TORs for institutional health assessment, M&E specialist. Funds for operational costs are in the process of being transferred from AfDB into the project special account. The project will be implemented over a period of four years starting Q1 2016 and ending March 31 2020.

In line with MENA TF procedures, the project is ISA executed by AfDB.

Grant Approval Date 8 December, 2015



Grant Closing Date 31 March, 2020Grant Amount USD 4,455,000 (incl. ISA charges)


Expected Date of

DeliverySignature of the letter of agreement between MOIC and AfDB (draft of LoA is under review internally at Bank before submitting it to MOIC for comments)

MOIC & AfDB 2/1/2016

Done

Project Effectiveness MOIC and AfDB 28/2/2016

Done

Launching of recruitment of project staff (Proj Manager, Proc Specialist, Accountant)

MOIC 23/5/2016

Done and staff recruited and on board

Request for Proposal for “Institutional Health Assessment” activity MOIC and AfDB 21/7/2016

Submitted to Bank for comments and review

Request for Proposal for “Soft Skills Training” activity MOIC and AfDB 20/8/2016

Request for Proposal for “Information Management System” activity MOIC and AfDB 18/8/2016

C. Implementation Status of Components Component 1: Organizational and Institutional StrengtheningPrevious Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 850,000Sub-component 1.1: Carry out an Institutional Health AssessmentStatus of Implementation: “Terms of Reference” will be finalized by mid-July so that the procurement process can be launched by August through competitive bidding.

Sub-component 1.2: Strengthening the Ministry’s capacity in specialized new or strengthened Units by training or recruiting consultantsStatus of Implementation: “No Objection” is already granted for the Terms of Reference (M&E Specialist and and Economist). Procurement process launched.

Sub-component 1.3: Organize specific study tours for selected senior economic researchers and economic researchers’Status of Implementation: Not yet started as this will wait for the institutional health assessment to be finalised

Component 2: Human Resource DevelopmentPrevious Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 1,600,000Sub-component 2.1: Conduct an in-depth review (HR Strategy) of the ministry’s human resource including training/skills needs

Status of Implementation: Not yet startedSub-component 2.2: Design and implement a training program for Senior and Middle Level Staff

Status of Implementation: Not yet startedSub-component 2.3: Trainings for admin staff on soft skills and IT skills and software

Status of Implementation: “Terms of Reference” will be finalized by mid-AugustSub-component 2.4: Specialized training courses or executive trainings (from 2 to 6 weeks) at specialized institutes

Status of Implementation: Not yet started

Component 3: Enhancing the IT InfrastructurePrevious Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 925,000

Sub-component 3.1: Purchasing office equipment, computers, laptops, scanners, internal network infrastructure, software, VC equipment for at least two meeting roomsStatus of Implementation: Not yet startedSub-component 3.2: Hiring an IT firm

Status of Implementation: “Terms of Reference” not yet initiatedSub-component 3.3: Strengthening the Ministry’s capacity in providing timely and accurate information on aid and the status of cooperation

Status of Implementation: “Terms of Reference” not yet initiatedSub-component 3.4: Hiring a web designer to revamp the web siteStatus of Implementation: Not yet started

Component 4: Project ManagementPrevious Rating: Not Applicable Current Rating: Satisfactory Cost (US$) 762,000Sub-component 4.1: Recruitment of Project Implementation Team (PIT) for duration of project

Status of Implementation: Project Manager, Procurement specialist (part time) and Accountant (part time) all recruited and started their assignments. Sub-component 4.2: Operating costs

Status of Implementation: Request for funds to be transferred to special account is under processSub-component 4.3: Recruitment of audit firmStatus of Implementation: Will be contracted by December 2016


(US$)

(x)


(y)

Total (US$)


1,182,000 4,455,000 5,637,000


0 4,455,000 4,455,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 0 100,000 100,0002017 800,000 1,000,000 1,800,0002018 1,000,000 1,000,000 2,000,00020l9 200,000 135,000 335,0002020 220,000 0 220,000Total 4,455,000


5,000 65,000 70,000


Project Development Objective (PDO): The overall objective of the proposed project is to strengthen the efficiency and effectiveness of the MOIC in aid coordination/management of Official Development Assistance (ODA) and resource mobilization so as to contribute to the socio-economic welfare of the country and the GoE institutional setup.

PDO Level Results

Indicators*

Unit of Measure

Baseline


Frequency

Data Source/

Methodology



etc.)Jun.

2016A

Dec. 201

6F

Jun. 201

7F

Dec. 201

7F

Jun. 201

8F

Dec. 201

8F

Jun. 201

9F

Dec. 201

9F

Jun.202

0F

Dec. 2020

F

Indicator One: Official annual ODA (grants and loans) channeled through MOIC

USD 2014: USD 5.5 billion

tbd 5.8 6.0 6.0 6.5 6.5 6.7 6.7 6.87 6.87 Annual AIMS MOIC Annual statistics of all ODA flows per annum through MOIC

Indicator Two: MOIC supported with strengthened organigram, new Units, and processes to deliver services to its constituents (other line Ministries)

Ministerial decisions

Current structure

Not done yet

New organigram approved

In place

- - - - - - - Annual Ministerial decisions;MOIC web site

MOIC New organigram, new units established, new processes

Indicator Three: Capacity built of MOIC staff to better service delivery

Number of people trained in various thematic areas (debt management, PPPs, etc)

Current levels

Not yet started

tbd 100 100 150 150 300 300 400 400 Annual Annual reports of project; Training reports

MOIC-PIT Number of staff receiving all forms of training (overseas, in-house, on-

the-job, study tours, specialized courses)


Intermediate Result (Component One): Organizational and Institutional Strengthening

Intermediate Result indicator 1a: Institutional Health Assessment report endorsed

Report None 0 0 1 0 0 0 0 0 0 0 Once Report endorsed by Minister through Minutes of Committee or Minister’s Signature

MOIC-PIT Having in place an approved institutional health assessment report of MOIC

Intermediate Result indicator 1b: Strengthening or Establishing new Units

Organigram Current organigram

0 0 2 2 3 3 0 0 0 0 Annual Revised organigram

MOIC-PITWeb site

New units functional and carrying out their duties

Intermediate Result indicator 1c: Staff participating in study tours

Quantitative

0 0 0 0 3 3 3 3 3 0 0 Annual Progress reports

MOIC-PIT Number of staff going on study tours to learn of best practices

Intermediate Result (Component Two): Human Resource Development

Intermediate Result indicator 2a:HR strategy/skills audit report endorsed

Report 0 0 0 0 1 0 0 0 0 0 0 Annual Report endorsed by Minister through Minutes of Committee or Minister’s

MOIC-PIT Report to identify skills gaps

SignatureIntermediate Result indicator 2b:Staff trained in various thematic areas

Number 0 0 0 50 50 50 50 100 100 100 100 Annual Progress reports

Training reports from each course

MOIC-PIT Various training courses organized for all levels of staff in both technical and soft and IT skills

Intermediate Result indicator 2c:Staff attending specialized technical training courses in various thematic areas

Number 0 0 0 2 2 2 2 4 4 0 0 Annual Training reports

MOIC-PIT Sending selected staff at specialized technical trainings on relevant topics to enhance skills of MOIC staff

Intermediate Result (Component Three): Enhancing the IT Infrastructure

Intermediate Result indicator 3a:Units at MOIC provided with appropriate equipment and support services

Number Current levels of equipme

nt

Units operatio

nal

0 0 # # # # # # # # Annual Asset Inventory List

MOIC-PIT Various equipment needs for offices, staff, new Units, Video Conference equipment

Intermediate Result indicator 3b:IT infrastructure upgraded

Number Current state

0 0 # # # # 0 0 0 0 Annual Assert Inventory listNew intranet and IT systems in place

MOIC-PIT New intranet functional, IT infrastructure upgraded

Intermediate Result indicator 3c:

Number 0 0 0 1 1 1 1 0 0 0 0 Annual New AIMS

Generatio

MOIC-PIT New AIMS will allow better

Aid Information Management System operational

n of reports

monitoring of all ODA data

Intermediate Result indicator 3d:New MOIC web site launched

Number Current web site

0 0 0 1 1 1 0 0 0 0 Annual Web site MOIC-PIT New web site launched and operational

Enhancing Social Housing Governance

A. Basic Project InformationActivity Name: Enhancing Social Housing Governance

Country Name: Arab Republic of Egypt Name of Implementation Support Agency(ies): The World Bank

Name of ISA Project Leader: Karim Badr Email of ISA Project Leader: [email protected]

Recipient Entity: Social Housing Fund Name and Email of Recipient Entity Contact: May Abdel Hameed, [email protected]





5/30/2016


7/31/2016


7/31/2019



Secondary Pillar(s): Investing in Sustainable GrowthInclusive Development and Job CreationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objectives of the project are to provide technical advice and capacity building support to SHF to be able to finalize a sound institutional set-up and prepare a housing strategy, which would include steps to ensure private sector engagement


Not Applicable


Brief Summary of Project Implementation Status: The project has been approved by MNAVP on August 1, 2016. The proposal has been revised to avoid any possible conflict of interest or reputational risk on the Bank’s side resulting from being Bank executed TA. However, the changes introduced have no impact on the scope or outcomes of the original proposal.



Initiate discussions with the client to develop a detailed plan for implementation.

The World Bank 7/31/2016



C. Implementation Status of Components Component 1: SHF Policy Tools: This project will aim at building the capacity of SHF to be able to develop a set of


policy and strategy tools for the housing sectorPrevious Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 1,800,000Sub-component 1.1: Capacity for Developing a new Social Housing Strategy

Status of Implementation: Implementation will start immediately.Sub-component 1.2: Capacity for Engaging the private sector in affordable housing through identifying at least one public-private arrangement

Status of Implementation: Implementation will start immediately.Sub-component 1.3: Capacity for developing at least one public program aiming at improving access to rental units for low-income household

Status of Implementation: Implementation will start immediately.Sub-component 1.4: Capacity for Developing the Housing Price Index (HPI)

Status of Implementation: Implementation will start immediately.

Component 2: Improving Governance and Institutional Building in the Social Housing Sector: The grant will be utilized to build the capacity of GoE to be able to establish the governance structure and institutional settings of the SHF.Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 650,000Sub-component 2.1: : Capacity building of SHF internal units and functions

Status of Implementation: Implementation will start immediately.Sub-component 2.2: Building the capacity of SHF in Human Resources Management

Status of Implementation: Implementation will start immediately.Sub-component 2.3: : Building the capacity of SHF in organizational issues

Status of Implementation: Implementation will start immediately.Sub-component 2.4: : Training and Capacity building for SHF staff

Status of Implementation: Implementation will start immediately.


(US$)

(x)


(y)

Total (US$)


2,450,000 2,450,000


0 0


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2013

201420152016 400,000 400,0002017 500,000 300,000 800,0002018 400,000 600,000 1,000,0002019 250,000 250,000


27,544 26,426 53,970


Project Development Objective (PDO): The objectives of the project are to provide technical advice and capacity building support to SHF to be able to finalize a sound institutional set-up and prepare a housing strategy, which would include steps to ensure private sector engagement.


Cumulative Target Values**Frequency Data Source/

Methodology


Collection


YR 1 F YR 2 F YR3 FIndicator 1: Improved good governance in the public sector

Yes/No No Yes Yes Yes Annual SHF SHF/WB Enhanced capacity in SHF in internal governance, monitoring, compliance and transparency and accountability.

Indicator 2: Increased effectiveness of social safety net and other programs to the most vulnerable

Yes/No No Yes Yes Yes Annual SHF SHF/WB GoE’s Housing strategy supports reform of government subsidy policies and thereby promote more efficient and equitable allocation of resources

Indicator 3: SHF adoption of New Housing Strategy

Yes/No No No No Yes Annual SHF SHF/WB

Indicator 4: SHF definition of at least one public-private arrangement

Yes/No No Yes Yes Yes Annual WB/SHF SHF/WB Reaching a workable model to engage the private sector in social housing

Indicator 5: SHF development of at least one public program aiming at improving access to rental units for low-income households

Yes/No No Yes Yes Yes Annual WB/SHF SHF/WB Providing technical capacity building for SHF through sharing international best practices of rent programs.

Indicator 6: SHF implementation of a Housing Price Index

Yes/No No no Yes Yes Annual SHF WB Developing and continuously updating HPI


Component One: Developing a new housing strategy

Intermediate Result indicator One: SHF Development of a new housing strategy

Yes/No No No No Yes Annual WB/SHF SHF/WB

Intermediate Result indicator Two: Workshop on Housing Strategy

Yes/No No No Yes Yes Annual WB/SHF SHF/WB

Component Two: Institutional Set-up of SHF

Intermediate Result indicator One: sharing international experience

Yes/No No Yes Yes Yes Annual SHF WB

with SHF in internal governanceIntermediate Result indicator two: Sharing international experience with SHF in monitoring


Intermediate Result indicator three: Sharing international experience with SHF in accountability and transparency


Intermediate Result indicator four: SHF to adopt operation manual

Yes/No No Yes Yes Yes Annual SHF/WB WB

Intermediate Result indicator five: SHF to deliver a feasibility study on the effectiveness of the Housing Price Index

Yes/No No No Yes Yes Annual SHF/WB WB

Intermediate Result indicator six: Number of trainings delivered to SHF staff

number 0 2 2 2 Annual SHF WB


Jordan Projects

National Center for Innovation, Higher Council for Science and Technology

A. Basic Project InformationActivity Name: National Center for Innovation, Higher Council for Science and Technology

Country Name: Jordan Name of Implementation Support Agency(ies): European Bank for Reconstruction and Development (EBRD)

Name of ISA Project Leader: Heike Harmgart Email of ISA Project Leader: [email protected]

Recipient Entity: Higher Council for Science and Technology

Name and Email of Recipient Entity Contact: Dr. Fawwaz ElKarmi [email protected]


Additional Funds Leveraged and Source(s), if any (US$): N/A



5/18/2015


6/1/2015


10/31/2018



Secondary Pillar(s): Enhancing Economic GovernanceInclusive Development and Job CreationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: Create an institutional environment for new and existing innovation-focused entities to improve collaboration and adopt innovation practices





The first phase of the project is the Mapping Study, which, despite having suffered delays due to some issues during the data collection phase, is due to be completed in July 2016. The purpose of the mapping study was to set the priorities of the National Center for Innovation (NCI) based on international best practice for effective national coordinating/advisory bodies in the context of the Jordanian innovation landscape. The mapping study was designed to identify and articulate the NCI’s overall objective, main tasks, detailed responsibilities, accountabilities, and procedures, as well as staff requirements (including job descriptions) and any necessary training.

The NCI and EBRD are planning to extend the scope of work of the Mapping Study consultant to the development phase of the project. Providing an extension will facilitate the timely mobilization of experts that are familiar to the stakeholders, have a thorough understanding of the project and concepts and will support the NCI to procure the IT developer as well as the consultancy staff and Centre director. It is agreed that the design phase of the project should run in parallel with the procurement for the IT developer and the Centre director, after which the staff will be procured when appropriate.

The establishment of the Steering Committee is ongoing and will be finalized by the end of July 2016. The


Steering Committee will assist in the procurement of the NCI staff, and the IT developer.


Actions to be Taken Responsible Party Expected Date of Delivery

Finalize the Final Report of the NCI Mapping Study Consultant under EBRD management

7/31/2016

Submission of the finalized Mapping Study to the Steering Committee of the MENA TF for information

EBRD 8/15/2016

Establishing the steering committee EBRD/ National Center for Research and Development (HCST)

7/31/2016

Extension of Mapping Study consultant for the Design Phase EBRD/HCST 9/30/2016

C. Implementation Status of Components Component 1: Establishing the NCI IT PlatformPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,310,000Sub-component 1.1: Development of proprietary IT PlatformStatus of Implementation: The Mapping Study has identified and provided a basic design of the IT platform and it is proposed that the Mapping Study consultants support the NCI to procure an appropriate IT company to develop the platform. Procurement for the IT company is expected to start in Q3 2016.

Component 2: Establishment of the Center ( Information, Referral Monitoring & Evaluation, Legal &Policy)- Labor CostsPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 489,610 Sub-component 2.1: NCI DirectorStatus of Implementation: Procurement to start before year end.Sub-component 2.2: Referral ManagerStatus of Implementation: Procurement timeline to be agreed. Sub-component 2.3: Monitoring and Evaluations Manager and technicianStatus of Implementation: Procurement timeline to be agreed. Sub-component 2.4: Information ManagerStatus of Implementation: Procurement timeline to be agreed.

Component 3: Establishment of the Center Information, Referral Monitoring & Evaluation, Legal &Policy)- OverheadsPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 103,200 Sub-component 3.1: Procurement ( serves, laptops, technical equipment… etc.) and staff trainingStatus of Implementation: Procurement timeline to be agreed.

Component 4: Innovation Marketing / Education / Training Initiative across all stakeholders, sectors and general populationPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 80,000 Status of Implementation: Procurement timeline to be agreed.

Component 5: Consultant Engagements


Cost (US$): 287,500

Sub-component 5.1: For NCI inception mapping study, system design, implementation support, bi-annual audit of operations, Project Closure with MENA TF Status of Implementation:

The Mapping Study is due to be complete by the end of July 2016. As part of the assignment, the reports presented by the consultants have so far included:1. A review of international best practices in a national innovation system and in NCI–like agencies.

It represented the best practices in information, given that the NCI’s primary objective is being an advisory body to the government based on data and information gathered from the innovation stakeholders, (organizational views on use and commercialization if information in innovation context),

Best practices in: advisory and services supervision; revenue generation (which looks at ways in which the NCI units can be geared towards services); and; organization design.

The best practices exercise was designed not only to showcase global best practices, but to summarize the full spectrum of possible policy and service interventions for the NCI. The best practice instruments proposed in this space directly address the linkages between public R&D finance and performance of the knowledge value chain. Rather than fight to wrest direct control of public R&D finance from existing players. The consultants encourage the NCI to monitor and publish the performance of existing public funding mechanisms through a combination of standards setting and codification into a grant application platform. In this vision, the NCI can introduce measurement methodologies through its platform through which it can indirectly reform the ways that the SRSF, Ministry of Higher Education, and Ministry of Finance engage in public R&D spending. By assessing performance through a rigorous and data supported set of metrics, it is possible for the HCST to fully activate its oversight mandate. The consultants believe this oversight role should be expanded and codified through the HCST’s bylaws and deployed in the NCI.

2. A representation of Jordan’s innovation landscape –description, form, categorization, and linkages to strategic choices, In the report they identified strategic issues, conducted an environmental scan and conducted a

competitiveness analysis. They also conducted a targeted and efficient SWOT analysis of the Jordanian innovation system on the basis of several functional verticals. They also polled stakeholders about their roles in Jordan’s innovation ecosystem to understand gaps and redundancies. They have avoided compiling a “wishlist” of what various stakeholders want to see in the NCI. According to them, these sorts of wish lists tend to shed more light on the stakeholders’ narrow self-interest than the actual gaps in an innovation system’s value chain.

3. Identification of the NCI’s strategic priority functions. In the report, the NCI is thought to be the most ambitious plan of the HCST in the last two decades; it is the first vehicle to be put in place to activate the role of the Council as it was intended a coordination mechanism across Jordan’s R&D and innovation domains.

The following represent the NCI long term strategic objectives. These objectives have been formulated to respond to key gaps that were identified in Jordan’s innovation value chain.

4. A review of main success factors that will be critical for the NCI to achieve its strategic objective. The value of the NCI product will be based on the IT platform and how it will attract participants both in terms of knowledge and consumption, the design of the IT platform with an open innovation infrastructure makes it easy for others to plug into the platform and share, transact enabling interaction between participants. The integration of various tools within the IT platform like the surveys will allow the rollout and growth of the IT platform to encompass the majority of the indicators.

5. To determine the NCI units’ terms of reference – as the arm of the HCST and secretariat for the NCCI – the consultants have to reconsider whether the proposed organizational design of the NCI per the EBRD’s scope of the assignment is the best way forward. The consultants prepared the units’ terms of reference to drive /support good governance in practice.

Sub-component 5.2: Legal and Policy Unit: For legal regulatory audits: analysis of existing laws to support innovationStatus of Implementation: Procurement timeline to be agreed Sub-component 5.3: For Monitoring & Evaluation design set-up, implementation and audits Status of Implementation: Procurement timeline to be agreed Sub-component 5.4: For design and support in the execution of baseline and annual national surveys in target regions and centers of productivity.Status of Implementation: Procurement timeline to be agreed Sub-component 5.5: For the scoping and development of Sector Skills Councils (or similar mechanisms) in relevant sectors for the engagement with the education authoritiesStatus of Implementation: Procurement timeline to be agreed

Component 6: Initiative to advance skills / vocational training throughout JordanPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 60,000 Sub-component 6.1: Innovation Management Training to SMEs Status of Implementation: The training components will be carried out by staff and potentially consultants after the IT platform is built. It is anticipated that training will start in mid-2017.Sub-component 6.2: Mapping sector-skills requirements with private sector

Component 7: Project contingenciesPrevious Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 100,000


(US$)

(x)


(y)

Total (US$)


2,430,310 0 2,430,310


80,000 0 80,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2013 - - -2014 - - -2015 N/A 12,000 12,0002016 34,000 280,000 314,0002017 900,000 1,204,310 2,104,3102018 N/A N/A N/A2019 - - -


2,400 167,720 170,120


MENA TRANSITION FUND - ENHANCED STATUS QUO RESULTS FRAMEWORK

LEVEL OF EXPECTED RESULTS

TYPE OF EXPECTED RESULTS

PILLAR INDICATOR

PILLAR INDICATOR

DESCRIPTION

PROJECT INDICATORS MAPPED TO

PILLAR INDICATOR

BASELINE

ACHIEVED RESULTS FREQUENCY OF

DATA COLLECTION

DATA SOURCE

RESPONSIBLE ENTITY FOR

DATA COLLECTION

2015 2016 2017 2018

JuneA

DecA

JuneA

DecF

JuneF

DecF

JuneF

DecF

Fund Development Objective: To improve the lives of citizens in transition countries and to support the transformation currently underway by providing grants for technical cooperation to strengthen governance and public institution and to foster sustainable and inclusive economic growth by advancing country-led policy and institutional reforms

Cross Pillar 5 Development Objective/Impact: Results produced in the form of documents produced and endorsed, decrees issued, structures established and public sector staff trained across the four pillars

Output 5.1.1

Documents produced and endorsed

Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks designed to enhance the enabling environment across all pillar areas and endorsed

Mapping and scoping study to set the priorities of the NCI

Annual NCI reports on recommendations to enhance the development of an innovation based society

Annual NCI Actions Plans (including annual budgets)

Completed mapping study

3 5 7 9

Once in the life of the project (the Mapping study)

Annually (Annual NCI reports)

Mapping study report

NCI records

Mapping consultant and other project consultants

Outputs 5.1.2

Decrees issued or structures established

Regulations or laws endorsed or entities, units or systems established

Regulations or laws endorsed or entities, units or systems established through capacity building activities or technical assistance in order to improve the enabling environment for various sectors

Establish the National Innovation Center through HCST decree

Complete HCST decree

1 Once in the life of a project

Board resolution/ Royal approval

General Secretary and Board

Project Development Objective (PDO): Create an institutional environment for new and existing innovation-focused entities to improve collaboration and adopt innovation practices


Unit of Measure Base


Frequency

Data Source



etc.)

Phase 1 2015

F

Phase 2 2016

F

Phase 3 2017

F

Phase 4 2018

F

Indicator One: Establishing the NCI

Amman office infrastructure

Complete Amman office set-up

0 YES May- 2015Board approval of NCI Director

NCI Director Project

Indicator Two: Establish Information Unit

a) Assist in commercialization of applied research & tech

Outreach to research centers, Partner with Research Funds

0 YES By month 30One-on-one communication

Information Manager Project

b) Connect stakeholders; training in ‘innovation management’ to local and international stakeholders

Connect stakeholders; Innovation Mgmt training;

0 BEGIN ONGOING ONGOINGBegin by month 6 through life of project

Personal & Marketing to Industry Assoc, Biz Assoc, University, Intl partners, Governorates, Government entities

Information Manager Project

c) Education & promote Vocational training/workforce productivity

Vocational training/ Workforce productivity

0 BEGIN ONGOINGBegin by month 20 through life of project

Utilize VTC, ETVAT, EJABI, INJAZ, other local NGOs

Information Manager oversees Vocational Training Officer

Process

d) Develop proprietary IT Platform

Develop IT Platform 0 BEGIN END Complete by month 7 including testing

Utilize Design Consultant& Program Consultant

Information Manager oversees IT Manager

Project

Indicator Three: Establish Monitoring and Evaluation Unit

a) Manage innovation surveys

Mgmt innovation surveys

0 BEGIN ONGOING ONGOING ONGOINGEvery Phase prepare for next survey, every other Phase execute

Utilize consultant to design system

M& E Manager, Consultant, Department of Statistics (MOPIC)

Process

b) Track SME development progress through network

Track SMEs in biz development services network

0 BEGIN ONGOING ONGOINGBegin Phase 2, every month perform analysis

Personal communication with Local biz development service consultants, SMEs individually

M&E Manager works with Referral Manager

Process

c) Economic indicators

Measurement of economic indicators

0BEGIN BASELINE

LOW-SCALE REASSESSMENT

Establishment Census

Baseline prep month 0-1, begin month 4-6, results by month 10; Process repeated month 13, Prepare for major Census month 25, Results month 36

Industry and firm-level surveys conducted on data set, use of other annual indices;

M&E Manager, Consultant, Department of Statistics

Process

d) Innovation adoption/adaptation

Measure innovation adoption/adaptation

0BEGIN BASELINE

LOW-SCALE REASSESS

Establishmen

Every 6 month reporting with larger results by end mo. 6,

Industry and firm-level surveys conducted on data set,

M&E Manager works with Information Process

Intermediate Result indicator One: Jordanian owned

Private Sector Contributors to the

Capital

156,593

10% increase 1x2011Establishment Census, 2016

CensusDept of Statistics

Quantitative Analysis

Changes in size of formal economy-new registered businesses in formal economy.

Intermediate Result indicator Two:New businesses set up in target industries/sectors. Evaluate by economic activity

Jordanian owned by economic activity

156,593

3-10% dependent on

activity1x

2011 Establishment Census, 2016

Census

Dept of StatisticsQuantitative

Analysis

Draft results- will be defined during the mapping/scoping phase and presented to the Fund as part of reporting

Intermediate Result indicator Three: Qualitative assessment on attitudes towards innovation

n/a

0BEGIN

BASELINEONGOING

ONGOING Every Phase

Baseline mo. 0-6 survey,

reoccurring surveys

NCI Director, M&E Mgr, Information Mgr

Qualitative Analysis

Intermediate Result (Component Two): Establish Information Unit

Intermediate Result indicator One:Amount of national investment in R&D knowledge and technology transfer to markets.

Financial

0

BEGIN BASELINE

LOW-SCALE

REASSESSMENT

15% increase 4x

Ministries, R&D Centers,

International Programs

Information ManagerQuantitative

Analysis

Intermediate Result indicator Two:Number of new linkages or improvements to existing linkages between firms and public research institutions: co-patents

Number from Baseline

0

BEGIN BASELINE

LOW-SCALE

REASSESSMENT

5% increase 4xR&D Centers,

innovation surveys


Analysis

Intermediate Result indicator Three:Number of new linkages or improvements to existing linkages between firms and public research institutions: co-publications


0

BEGIN BASELINE


5% increase 4xR&D Centers,

innovation surveys


Analysis

Intermediate Result indicator Four:Number of new linkages or improvements to existing linkages between firms and public research institutions: Number of new partnership agreements signed


0

BEGIN BASELINE


20% 4xR&D Centers,

innovation surveys


Analysis

Intermediate Result indicator Five:Number and type of national and international stakeholders that become interconnected.

Number0

BEGIN Quarterly reporting

Quarterly reporting

TOTAL VALUE

16xInformation Unit,

Referral UnitInformation Manager,

Referral ManagerQuantitative

Analysis

Intermediate Result indicator Eight:Type of vocational or skill

Description

0

BEGIN Accumulation 12x Information UnitInformation Manager, , JVC, ETVAT, INJAZ ,

Qualitative

Reliable Quality Water for Jordan

A. Basic Project InformationActivity Name: Reliable Quality Water for Jordan

Country Name: Hashemite Kingdom of Jordan Name of Implementation Support Agency(ies): European Bank for Reconstruction and Development (EBRD)

Name of ISA Project Leader: Heike Harmgart Email of ISA Project Leader: [email protected]

Recipient Entity: Ministry of Planning and International Cooperation, Hashemite Kingdom of Jordan

Name and Email of Recipient Entity Contact: Iyad Dahiyat [email protected]


Additional Funds Leveraged and Source(s), if any (US$): N/A



12/11/2012


1/31/2013


6/30/2017



Secondary Pillar(s): Enhancing Economic GovernanceChoose an item.


The Project Objective is to build sustainable technical capacity for reliable quality water for the Water Authority in Jordan (WAJ) and for Jordanian utilities through the establishment of a Unit of Excellence at WAJ; and to lay the foundation for the involvement of the private sector in the overall management of water services in Jordan.


Satisfactory


Brief Summary of Project Implementation Status: The project is progressing well. The components that are underway are continuing to develop the interaction, communication and capacity of both WAJ and the water utilities in Jordan.

In response to the success of the benchmarking component and the desire to enhance the capacity of not only WAJ but also the utilities to identify, evaluate and manage private sector participation in the sector, the remaining components are proposed to be restructured to ensure that the project responds to the current situation and meets the overall objective of the project by focusing on areas that have the most potential impact.

The refugee crisis has changed the landscape in the water sector and a number of other donors are providing large scale (among others, USAID USD 25 million) assistance to support utility companies, other stakeholders and the sector overall. Programmes include IT support, capacity building, financial training as well as capex programmes. In addition, the management of Yarmouk Water Company remains with WAJ and therefore targeted support to the utility would not be an effective use of resources at the current time. In the future, the water company will require support, but not within the lifetime or scope of this project.

In order to maximise the results of the Transition Fund project, EBRD have discussed with the WAJ, how best


to utilise the remaining funding and agreed that WAJ staff would benefit from consolidating the skills that they have learnt through the Unit for Excellence (component 1.1) and practise applying their knowledge in a real life context, with the comfort of experienced support. The newly proposed scope would facilitate WAJ staff testing their ability to process projects in live examples, which will facilitate the further evolution of bankable public-private partnership (PPP) projects. Private sector engagement is one the cross cutting themes of the Jordan Response Plan for the Syria Crisis, which also requests specific support for the water sector in enhancing the capacity of the sector to process urgently needed infrastructure investments.

In light of the above, EBRD and WAJ are proposing to replace the originally approved content of component 1.2 with targeted support for PPP development and implementation.

Disbursement of funds under MENA Transition Fund-funded projects has been discussed several times by the Steering Committee. The overall disbursement figure for this project is increasing, in line with the expected progress. As previously advised the structure of the project stipulates that EBRD will not disburse funds until specific deliverables of each component are completed to the satisfaction of the both the client, in this case the Water Authority of Jordan and MoPIC, and the EBRD. The team remain confident that the original objectives will be met.




Finalize the scope of Sub-component 1.2: obtain no-objection approval from the Transition Fund Steering Committee for the revised scope of work.

EBRD and WAJ 7/31/2016

Finalize the scope of Sub-component 2.1: (i) procurement is underway.


Finalize the scope of Sub-component 3.1: (i) Twinning visit to Romania complete.


C. Implementation Status of Components Component 1: Establishment of a Unit of Excellence within the Water Authority in Jordan in order to improve monitoring of the overall water quality.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 940,000Sub-component 1.1: (i) The establishment of a Unit of Excellence trough increasing technical capacity and building up a team with an additional senior water expert and a junior water consultant at WAJ; (ii) Increasing the frequency of water testing and undertaking selected laboratory training; and, (iii) Introducing water quality management principles through a series of workshops and training sessions.Status of Implementation: The Unit was established in February 2015. The original objectives, as follows, are expected to be met: (i) ensure improved overall quality and reliability of water and wastewater services; (ii) promote sub-sovereign financial solutions and proactively engage with both public utilities and private sector participants to identify opportunities for future Public Private Partnership (“PPP”) investments as well as to assist the PMU in designing, structuring and implementing such projects; and (iii) improve the overall monitoring of water standards and services in Jordan. The overall purpose of the assignment is to support the PMU to build sufficient and sustainable technical capacity in order to help it achieve the aforementioned three objectives.

The consultants have been working with WAJ extensively and both the legal assessment report of PPP laws in Jordan, as well as the tender documents for the purchase of the laboratory equipment have been completed. The case study PPP project, As-Samra Wastewater Treatment Plant (WWTP), is complete and was dully approved by WAJ. The findings in the case study were accepted by WAJ staff and they were useful

especially in initiating the process for the second expansion of the WWTP.

The development of the PPP Guidelines, which will serve as a tool applicable for a large number of projects, and for any new staff within PMU take into consideration Jordan’s PPP law and EBRD’s procurement guidelines; as well as the role and functions of the new PPP Unit at the Ministry of Finance. The PPP projects preparation guidelines and, financial modelling guidelines were submitted to WAJ in April and first week of May 2016 respectively. They were found to be robust and useful documents by WAJ staff, and will be an important tool in guiding the further processing of PPP project identification and preparation by WAJ.

The water quality management scheme, and the water testing scheme are expected to be delivered in Q3 2016. The seminar to accompany the PPP guidelines and financial model will also take place in Q3 2016.

The latter half of 2016 will see the more general strategies delivered, including the finalized capital projects matrix, which will also include PPP viability criteria. The capital projects matrix is complete with 498 viable projects, including the methodology and criteria to prioritize projects. Those documents enabled WAJ to swiftly use them as a tool in prioritizing its investment planning and donor negotiations. In addition the communications strategy was presented in May to WAJ and following some revisions is almost finalized.

The remaining outputs for the final Q4 of 2016 will be the PPP strategy for water sector development; this tool will enable WAJ to more effectively manage both financial and technical resources, incorporating private sector involvement where appropriate.Sub-component 1.2: (i) Promoting data sharing through the establishment of closer working relations among the full range of public and private organizations that collect water-quality information related to the Yarmouk water source; and, (ii) Designing and implementing a public health campaign.Status of Implementation: The scope of this component has been restructured in light of the success of the financial training (outlined below) and the impact of the Syrian refugee crisis. The objective of this component has been adjusted as described above. The component will support WAJ in identifying and developing 3 PPP projects. The consultant will provide WAJ with the confidence and timely support in decision making, project appraisal and development, These exercises will be based on real life projects that are being considered for development. No supplementary funding will be required; the proposed activity will be carried out within the already allocated budget.

Component 2: Will focus on improving the overall regulatory framework and on strengthening national standards for wastewater discharged from industries and for discharging industrial effluents in the domestic sewer network through broader policy dialogue.Previous Rating: Moderately Satisfactory

Current Rating: Satisfactory Cost (US$): 300,000

Sub-component 2.1: (i) Broader policy dialogue with the Government and different stakeholders regarding improvements to tariff-setting legal and institutional frameworks; and, (ii) Management and Financial Management training based on best practices from the EBRD Transition RegionStatus of Implementation: (i) Broader policy dialogue regarding improvements to tariff-setting and broader capacity within WAJ to manage their regulatory function, particularly in relation to private sector involvement are being discussed as preferred areas of focus for the remaining components.(ii) The financial management training programme has been completed in the first half of 2016. The training programme, with its diversified and broad objectives and components, offered a suitable and useful platform for providing WAJ participants with the necessary financial knowledge, skills and tools to utilize at their workplace. The combination of international experience with the local experience and knowledge enabled effective communication, the design of relevant case studies and exercises and the improvement of skills and tools in accordance with best practice techniques. The evaluation of the training and the tests carried out as part of the training was considered good. This is a very good indication that the training outputs (i.e. knowledge and skills gained) have turned into outcomes that reflect on participants productivity and quality or work through more comprehensive and computerized financial work.Sub-component 2.2: Engaging public and private stakeholders in a broader policy dialogue with the aim of strengthening standards.Status of Implementation: ACWUA were selected to implement the contract and started in November 2014. The focus of the assignment has been adjusted to the current situation in the Water Authority of Jordan and

other Water Companies. Following high level discussions with the Minister of Water and with other involved parties, including OECD, ISSP, UfM, ACWUA were contracted to manage ongoing policy dialogue aimed at strengthening the standards of wastewater discharge and to improve the regulations and legislations related to discharging industrial effluents in the domestic sewer network (trade effluent) to protect workers, the public and sewer systems and treatment plants. The instructions for Non-domestic Wastewater Discharge to the sewage network are being incorporated as a bylaw, which has been drafted and submitted for approval to the Water Authority’s board of directors.

Component 3: Twinning Jordan with Romania, building upon the “Transition to Transition” Initiative sponsored by EBRD. It also aims at promoting cooperation in the Arab Countries water Utility Associations, also by sharing lessons learned from Jordan.Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 200,000Sub-component 3.1: (i) Twinning Jordan with Romania; and, (ii) Advancing Collaboration within the Arab Countries Water Utility Associations.Status of Implementation: ACWUA has been a partner for 3 initiatives: industrial waste standards (as described above), support for the regulatory framework and, the benchmarking programme. Collaboration with ACWUA throughout the implementation of this project has been an effective mechanism through which to reach the water utilities in Jordan.

The Regulatory taskforce of ACWUA were supported to carry out workshops, held in 2013 and 2015, which facilitated the exchange of experiences and promoted dialogue among utilities and respective regulatory authorities. Representatives of the Water Regulators now communicate regularly to consolidate this practice and the achievements made to date. This is particularly important in the light of Jordan's current exercise of reviewing its own regulatory set up so that the right approach based on the experiences of other advanced markets is there from the start.

ACWUA were also partners in the implementation of the first stage of the National Benchmarking Programme that was finalised in Q1 2016. The objective was to introduce a programme to ensure that the water utilities in Jordan operate at the highest level of efficiency. The programme has trained all 9 Jordanian utilities in all aspects of benchmarking, resulting in increased transparency in the sector, and facilitating effective management tools for the utilities. The final workshop for the Benchmarking held in November 2015, with the participation of all the Jordanian water utilities, concluded what has been an important process of collaboration and communication between utilities. All participants have expressed their desire to continue the cooperation and EBRD will support a second stage in the context of a further investment project in the water sector. This will be coordinated with other initiatives.

Following the success and enthusiasm experienced throughout in the benchmarking programme, the Twinning Prgramme builds on this success and will take place at the end of July 2016. All water utilities will be represented on a 7 day trip to Romania. The Romanian Water Association and a number of EBRD clients will host the Jordanian participants. The agenda includes targeted workshops and seminars, for example on the institutional arrangements in Romania, the regulatory structure and their experience of benchmarking. It will also include client visits and opportunities for networking and collaboration.


(US$)

(x)


(y)

Total (US$)


1,440,000 0 1,440,000


1,440,000 0 1,440,000


594,801 0 594,801

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2013 13,561 - 13,561 2014 - - 0 2015 25,000 276,920 301,9202016 279,320 380,000 659,3202017 465,199 - 465,19920182019


67,200 37,800 105,000




MeasureBaseline


Frequenc

y




definition etc.)Jan

2013 – Dec

2013A

Jan 2014 –

Dec 2014

A

Jan 2015 – Dec 2015

A

Jan 2016 – Dec 2016

F

Indicator One:Increased understanding and actual processing of 3 PPP projects16.

Number of PPP projects under preparation by WAJ

0 0 0 3 Yearly

Data will be directly collected by the WAJ and by EBRD

EBRD [Municipal Environmental Infrastructures (MEI)/Office of the Chief Economist (OCE)]

PPP project being prepared by WAJ

Indicator Two: Increased opportunities for transition through improved regulatory frameworks and shared best practice (twinning with Romania and ACWUA).

Number of people trained

0 0 0 200 (reflects participation in regulatory training)

215 (adds participants on study visit)

Yearly

Data will bedirectly collected by the WAJ andby EBRD

EBRD[MEI/OCE]

Number ofofficialstrained onregulatoryframeworksand on bestpractices

Indicator Three: Additional private sector participation inone of the three Water Companies in Jordan

Number of private sectorentities

0 0 0 1 2 Yearly

Data will bedirectly collectedby the WAJ andby EBRD

EBRD[MEI/OCE]

Number ofprivate Sectorentitiesinvolved in the water sector

16 The indicator has been changed. As indicated in the previous progress report, the Feasibility Study undertaken by ATKINS highlights that there are lagging areas where the Company is unable to test for water quality. It was indicated that lack of resources and equipment prevents them from covering the whole service area. The public health campaign will be targeted to these lagging areas.


Intermediate Result (Component One): Water Quality issues are understood and monitored with increased frequency

Water quality monitoring plansubmitted by the Unit of Excellence within the first year of operation

Number 0 0 1 1 2 (final)

Yearly Data will bedirectly collected by the YWC and by EBRD

WAJand EBRD(OCE –MEI)

2 workshops on water quality undertaken within the second year of operation.

Number 0 0 2 2 3 6 monthly Evidence will be directly collected by the YWC andby EBRD and will include agenda, summary of minutes and attendance.

EBRD(OCE)

YWC laboratoryaccreditation by the endof the project17

Text 0 0 0 1 (corrected)

Yearly Evidence will be directly collectedby the YWC and by EBRD

WAJ, YWCand –EBRD(MEI)

Intermediate Result (Component Two): Dialogue on water tariff and water standards ongoing

Number of stakeholders participating in policy dialogue on water tariffs

Number of stakeholders from Public and Private Sector

None 0 8 (corrected to reflect early discussions)

8 20 (tbc tariff study to start 2016)

6 monthly Data will bedirectly compiled by the YWC, WAJ and by EBRD

EBRD(MEI/OCE)

1 workshop on standards for wastewater discharged from industries and on domestic recycling of water organized andImplemented

Text None 0 1 2 4 Yearly Data will bedirectly compiled by the YWC,WAJ and byEBRD

YWC-OCE

17 The Yarmouk Water Company laboratory is currently not accredited.

Intermediate Result (Component Three): Ongoing partnership with twinning country, resulting in increased training opportunities for Public Sector Officials

Number of Jordanianofficials thatparticipated in trainingopportunities throughtwinning with Romania

Number 0 0 0 0 15 (updated to reflect revised study visit 2016)

Yearly Data will be directly compiled by the YWC, WAJ, ACWUA and EBRD. This will include reports on attendance and participation.

WAJ, YWC-OCE

ACWUA 1 workshops and 1 benchmarking exercise organized and delivered.

Number 0 1 1 4 (additional workshops)

4 Yearly Evidence will be directly compiled by YWC, WAJ, ACWUA and EBRD. This will include agenda, summary of minutes and attendance.

ACWUA, OCE

Promoting Financial Inclusion via Mobile Financial Services: Jordan Activities

A. Basic Project InformationActivity Name: Promoting financial inclusion via mobile financial services in the Southern and Eastern Mediterranean countries – activities in Jordan.

Country Name: Jordan


Name of ISA Project Leader: David Demulier Email of ISA Project Leader: [email protected]

Recipient Entity: Central Bank of Jordan Name and Email of Recipient Entity Contact: Maha Bahou [email protected] Amr Ahmad [email protected]


426,000 (including indirect costs)

(originally USD 891,000; updated as per restructuring memorandum of May 2015)

Additional Funds Leveraged and Source(s), if any (US$): 80,000 – co-financing support in kind expected from Central Bank of Jordan

USD 32,000 (EUR 28,000) – commitment from Union for the Mediterranean for UfM labelled project (total commitment, covering Jordan and Morocco, of 2 working sessions at EUR 28,000 each)


56,000


12/5/2013


12/1/2015


11/30/2016




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: This project aims to improve financial inclusion in Jordan through the provision of innovative mobile financial services, targeting particularly low-income Jordanians who do not use banking services.




Brief Summary of Project Implementation Status: The Cooperation Agreement was signed by CBJ and MOPIC on July 23rd and by EIB on July 30th, 2015.

As scheduled, the final selection of the consultant took place on October 28th 2015. The winning bidder was the specialist company, Enclude. Signature of the contract took place on January 14th 2016 (a little later than expected after some additional delays receiving documentation from the selected consultants). The contract runs until




November 30th 2016 following the extension request approved by the SC in May 2016.

After signature of the contract with the consultants on 14 January, the project implementation started with a kick-off call that was held on 2nd February. This was followed by an extensive on-site mission in Jordan, which was conducted by the consultants between 1st March and 10th March. In total, 7 members of the Enclude team participated in this process. The mission allowed the team to carry out a strong internal assessment of the CBJ and an external scoping exercise though interviews with payment system stakeholders.

The EIB team also participated in this on-site mission and were able to notice that the consultant and CBJ team were working very closely.

Following the on-site mission, the EIB and the CBJ received the Inception Report on 18th March.

A first disbursement of EUR 148,319 (45% of the total contract value) was made on 2nd February.

A workshop was conducted in Jordan on April 14 at the CBJ with a select group of stakeholders to present global risks related to mobile financial services, followed by risks observed in JoMoPay’s ecosystem.

The first study visit is scheduled the 12 and 13 July at the Dutch National Bank. This is being held concurrently with the dissemination workshop of the Moroccan mobile banking project: participation of the Moroccan central bank is therefore also expected in order to share benefit from the knowledge of both projects.

Enclude provides on-going support to the CBJ and a second study visit will be planned by the end of September or early October.



Expected Date of

DeliveryFirst study visit at DNB. Enclude 7/12/2016

Second study visit. Enclude 9/19/2016

C. Implementation Status of Components Component 1: Capacity building and support for adapting the regulatory framework for retail payment service providers and enhancing the oversight function of CBJ from practical and functional perspective.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 335,000Sub-component 1.1: Capacity building for the oversight function

Status of Implementation: • Following an initial mission to Jordan Enclude has prepared a stocktaking analysis report. The report

summarizes potential risks to the payment system and outlines initial recommendations on how to address them.

• Enclude has organized a risk management workshop that took place in Jordan.• Enclude has prepared a paper on how to improve the security of USSD-initiated mobile wallet transactions.

Sub-component 1.2: Developing a methodology in processing statistical reports and data to produce concise reports in order to execute actions

Status of Implementation: The work for this component is underway.Sub-component 1.3: Development of public awareness / financial inclusion education strategy

Status of Implementation: As per restructuring memo of May 2015, this sub-component has been removed.

Component 2: Knowledge sharing workshop

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 35,000Status of Implementation: As previously indicated, this component will be instigated only after the work for Component 1 has been carried out. The final workshop is expected to take place in November

Component 3: Project Management, Coordination, Monitoring and Evaluation

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 80,000(estimation of the in-kind contribution of CBJ staff time during the project)

Status of Implementation: The Central Bank of Jordan has been very active in terms of coordinating the project internally, as well as with the consultants.


(US$)

(x)


(y)

Total (US$)


0 370,000 370,000


0 0 0


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 0 02015 0 0 02016 170,000 200,000 370,000


56,000 0 56,000


NB: this is the results framework as submitted with the project proposal. No updates have been made, as the project implementation has not yet commenced.

PDO Level Results Indicators* Unit of Measure

Baseline(31-12-2015)


Frequency

Data Source/

Methodology


Collection


definition etc.)Jan 2016 –Mar 2016

F

YR 2F

YR3F

YR 4F

YR5F

Indicator One : Increase in access metrics.

Number 634.96per 1000

+5% +10% +15% +20% +25% Annual Reporting to CBJ

CBJ Increase in number of accounts

Indicator Two: Per capita cashless transactions.

Number 13.5Per Capita

+10% +20% +30% 40% 50% Annual Reporting to CBJ

CBJ Per adult (>15) number of cashless transactions through debit and credit cards

Indicator Three: Infrastructure metrics

Number 5.77 ATMs and POS per 1000 inhabitant0.16 branch per capita


CBJ Agents, ATMs and POS terminals per 1000 inhabitants and number of branches 1000 per capita

Indicator Four: Transactions per acceptance infrastructure

Number 809 transaction per POS


CBJ Number of transactions per POS

Indicator Five:Increased safety and efficiency of the Payment System

Survey Low-medium

Medium

Medium-High

Medium-High

Medium-High

High Annual Global Payment Systems Survey, WB, every two years

CBJ Legal and Regulatory Score

Large Value Payment Score

Retail Payment Score

Oversight Score

Indicator Six: Number 2 5 5 5 5 5 Annual CBJ CBJ Number of

Number of private sector actors having created new, innovative payment products/services (as a measure of the success of creating a conducive legal and regulatory framework, allowing innovations in retail payments)

institutions offering innovative payment services targeting at low income, unbanked segments

Indicator Seven:Strengthened laws and supporting regulations enacted

Legal and Regulatory Score

Low-medium

Medium-high

high high High high Annual Global Payment Systems Survey, WB

CBJ

CBJ Commitment from Government to implement the adopted NPS Strategy


Project Intermediate Result:

Intermediate Result 1: Periodical progress reports from program of capacity building for adapting the regulatory framework for retail payment service providers and enhancing the oversight function of CBJ from practical and functional perspective

Report n/a As defined with consultants

n/a n/a n/a n/a Periodical during implementation (2014)


Consultants, CBJ See section 14

Intermediate Result 2: Workshop for sharing of knowledge

Workshop n/a 0 1 n/a n/a n/a Once, at project completion


CBJ Successful completion of a workshop to enable knowledge sharing of country experience between countries participating in the program.

Intermediate Result 3: Report n/a 2 n/a n/a n/a n/a Six- CBJ reporting CBJ Establishment

Establishing an implementation structure in the CBJ

monthly during implementation

to the EIB based on observed progress in implementation unit

of a management team within the central bank

SME Growth Programme

A. Basic Project InformationActivity Name: Jordan SME Growth ProgrammeCountry Name: Jordan


Name of ISA Project Leader: David Demulier


Recipient Entity: Jordan Enterprise Development Corporation (JEDCO)

Name and Email of Recipient Entity Contact:Hana Uraidi, CEO of JEDCO, [email protected]


Additional Funds Leveraged and Source(s), if any (US$): /

Total Amount Disbursed (Direct and Indirect in US$): 1,065,975 (= 321,170 + 190,000 + 554,805)


Project Implementation Start Date: 20 April 2015

Project Closing Date:20 April 2018



Enhancing Economic GovernanceInclusive Development and Job CreationCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project objective is to support and sustain startups and MSMEs – with particular focus on high-value growth enterprises – to increase productivity and competitiveness through adopting and applying innovation.


Satisfactory

Rating for overall implementation progress:

Satisfactory


The implementation of the whole project is ongoing.

After a year of implementation, the second Steering Committee was organized on May 8, 2016 in Amman. The next Steering Committee will be held in Amman on November 2016.

Relations between the experts and JEDCO’s team are still very positive. The experts are involved and fully integrated in JEDCO’s organization. A meeting was held with the OECD team to explore potential avenues for cooperation between both projects on the Observatory.

Solid progress with the implementation of the Work Programme and increasing momentum in terms of SME participation and engagement with the Programme has been reported by the consultants during the second Steering Committee.

Regarding component 3, since the official launch on 14th February 2016 and the announcement on 6 th

March 2016 of the opening of applications to join the ‘Accelerate with JEDCO’ programme, some 88



applications have been received from SME’s wishing to participate. Importantly these businesses represent a broad spectrum of SME’s in Jordan both sectorally and geographically. Of particular note is that some 50% of applications have been received from businesses located in Governorates outside the capital area. Thus the programme is already contributing to the regional economic development objectives of both JEDCO and the Government of Jordan as whole. Such a geographical distribution was undoubtedly encouraged and stimulated by JEDCO’s regional roadshow in March.

In order to extend the Growth Management approach throughout JEDCO as part of the organization’s transformation, a further 13 JEDCO staff will be interviewed for the remaining business growth manager (BGM) positions in the organization. Significantly the first group of BGM’s, many of whom have been promoted to more senior positions in JEDCO as part of the organization’s restructuring, will take part in the selection process.

A key part of the programme’s design is that the BGM’s have the portfolio of tools to deploy as part of the design and implementation of Growth Action Plans for the participating businesses. As can be seen from the discussion below, progress in this area has also been strong with 19 business growth coaches trained and 42 currently undergoing training.

With Cohort 6 starting their training in October with up to 15 participants (10 of whom have been selected for interview during July), this should give a talent pool of 76 business growth coaches subject to their joining of the International Coaching Federation (ICF). A ToR has been prepared for international experts to train Jordanian trainers in key areas of relevance such as Leadership, Access to Finance, Innovation etc. This approach of blending international expertise in course design and development with Jordanian delivery ensures that leading edge content can be delivered in a cost effective fashion.

One of the other key tools in the BGM portfolio is the establishment of the Access to Finance database and corresponding software to match business needs to available and more importantly suitable sources of finance from private, public and donor sources. In designing the algorithm for this, the experts in charge of this field have worked to ensure that the application is fully integrated within the suite of software applications being delivered to JEDCO to manage and monitor the ‘Accelerate with JEDCO’ programme. These include a much needed CRM (Client Relationship Management) and Client Diagnostic software, a coach/client management tool and a Masterclass planning and scheduling tool. As the growth management approach extends throughout JEDCO these will become an organizational rather than just a programme resource.

Whilst the SME Growth Observatory has been established and staff have been appointed to key positions, sadly the Head of the Observatory felt he could not accept the Ministry of Public Sector Development’s Affairs assessment of the level of his post within JEDCO and left the organization in mid-April. His departure was also followed by the resignation of the Technical Writer within his probationary period. However the process of recruiting successors for both positions are on-going and with the other team member in place (including the forthcoming appointment of a Senior Economist) and support from experts in terms of capacity development and business planning, the achievement of full operational capability of the Observatory will not be delayed significantly. In order to further accelerate the building of capacity within the Observatory, three international experts were engaged to work with the relevant observatory staff.

As can be seen in the ToR Indicators / Deliverables section below, solid and sustained progress by the programme in meeting the targets set out in the programme’s ToR are shown.

In addition to the above programme-related update, the promotional film made by the World Bank is a further positive step in raising awareness of the project. This film presents very well the activity that is taking place in Jordan on the ground.

C. Implementation Status of Components Component 1*:Identifying, diagnosing and recruiting Startups and SMEs with growth potential motivated and committed to invest in development and innovationPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 500,000Sub-component 1.1: Identifying, diagnosing and recruiting Startups and SMEs with growth potential motivated and committed to invest in development and innovation

Status of Implementation: The first call was officially launched on 6th March 2016 and to date 88 businesses have expressed an interest in joining the programme. Eligibility and suitability checks are currently underway with the call ending 15th May 2016. This nationwide promotion has achieved much in stimulating regional interest in the programme and to date some 50% of the applications received for the programme have come from Governorates outside the capital area. The selection process is ongoing.

Sub-component 1.2: Training JEDCO Staff

Status of Implementation: Following the undertaking of the study visit to the UK in late November 2015, the 5 appointed Business Growth Managers have undergone further training with a structured development programme. A further 13 JEDCO staff will be interviewed for the remaining BGM positions in the organization very soon.

Component 2*: Providing and training internationally recognized and accredited, monitored and specialized business coaching service providers in areas of sustainable growth, productivity enhancement and competitiveness, technology, innovation and exports development

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 760,000Sub-component 2.1: Identify, recruit, train, qualify and promote business coaching service providers

Status of Implementation: A total of 19 participants graduated from the 1st Business Growth Coach Development (BGCD) programme; 19 participants commenced. Gender balance for the 1st BGCD programme was 13 men and 6 women (68% men / 32% women). Recruitment of applicants for the 2nd BGCD programme was conducted during February and concluded by the end of March. A total of 42 applicants have been recruited to participate in the 2 nd BGCD programme. Although applications continued to be received after the ‘official’ deadline, they continued to be accepted in order to ensure our target of 42 participants was achieved.

The 2nd BGCD workshop programme is being delivered to 3 Cohorts each of 14 participants. The first cohort of the 2nd BGCD programme commenced April 25th and will be completed on August 17th 2016. The schedule for cohort 4 and 5 are as follows:

Cohort 4: May 2nd through to August 15th. Cohort 5: May4th through to August 17th.

Planning for the 3rd and final BGCD programme is underway.

Sub-component 2.2: Establish Business Coach Roster and advanced Matchmaking correlations and other monitoring support features database. This may be an online and interactive tool.


The service portal / IT system is currently being established for the entire ‘Accelerate with JEDCO’ programme in a modular fashion to facilitate easier ongoing management, maintenance and enhancement of the system. The current project timeline and delivery schedule for each of the modules is as follows;

MODULE DELIVERY DATE

STATUS

1. COMPANY FILE SYSTEM 30/04/2016 Complete under final testing2. CONTACT TRACKING SYSTEM 31/05/2016 Under development3. ACCESS TO FINANCE 30/06/2016 Under development4. COACH MATCHING 15/07/2016 Under development5. MASTERCLASS SCHEDULING SYSTEM

30/07/2016 Under development

6. REPORTING SYSTEM 15/08/2016 Under development

Some modest hardware upgrades are required for the JEDCO servers and specifications have been prepared for an early local tender to procure this in a timeline consistent with the delivery dates of the software modules.

With the technological solution agreed, contact is now being made with the software providers who installed the JEDCO solution to manage the software migration

Component 3*: Select and support high-growth companies (defined as businesses in a phase in which the company is achieving a minimum of 20% increase in turnover or staff in three consecutive years, and with potential for continued rapid and sustainable growth), by implementing an advanced intensive coaching, training, certification and grant contribution Accelerator programme, tailored to deliver strategic interventions to support the aspirations of this exclusive group of beneficiary companies.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,700,000Sub-component 3.1: Exclusive Startups & SME Beneficiary Selection Process Implementation

Status of Implementation: The processes and procedures for recruiting and evaluating applicants to the programme have been designed by the BGM’s with mentoring support from the experts. As well as meeting the needs of the scheme, this work has contributed to a wider initiative on Business Process documentation and re-engineering being undertaken within JEDCO. The Accelerate with JEDCO work not only involved procedural design but also the development of primary and secondary evaluation forms to be used by the programme. These procedures and documentation are currently being designed into the programme’s IT system.Sub-component 3.2: Provision of sophisticated tailored services, grants and after care services to selected businesses.

Status of Implementation: With the Growth Action Plan template / guidelines completed by the JEDCO BGM’s and the first wave of applications now received, discussions are underway with senior JEDCO staff regarding the allocation of

applications to BGM’s in the context of their changing responsibilities under the recently approved re-organization of JEDCO and the new revised organizational structure.

Draft Terms of Reference for a short assignment to develop a suite of 6 Masterclasses were prepared. The objective of this assignment is twofold:

Customise six Masterclasses to suit the Jordanian business environment, and; Deliver a ‘Train the Trainers’ course and establish a cadre of 18 Jordanian trainers to deliver

Masterclasses to Jordanian SMEs participating in Jordan’s Small Medium Enterprise (SME) Growth Programme.

The assignment will provide 6 international experts who will train a cadre of 18 Jordanian trainers, through the ‘Training of Trainers’ course, to deliver the customised Masterclasses to Jordanian SMEs. The six Masterclasses to be developed are entitled:

Access to Finance Business Development Leadership Development Access to International Markets Innovation Efficiency (Lean Manufacturing)

Component 4*: Establishing a Startup and MSME Growth Observatory at JEDCOPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 500,000Sub-component 4.1: Establish and Equip the Observatory with the necessary hardware and software to establish a service portal and enable operation

Status of Implementation: An IT scoping mission was completed in December 2015. The reason for the scoping mission was to examine from a technical perspective the current IT status and requirements of specifically the Growth Programme but more widely JEDCO as a whole and to realign the draft ToR for the full IT input in the light of the findings.

Following a presentation to the Steering Committee meeting in January 2016, it was decided to proceed with the full design of the system and progress the procurement of the necessary hardware and software as required to achieving both the operational needs and the goals of the Jordan Growth Programme.

Following consultation with the Observatory team, the hardware specification and software specification were prepared. Currently the procurement consultation is ongoing with JEDCO’s procurement staff as a local tender. Four suppliers have been invited to supply the hardware for the Observatory and the BGM’s with two offers being received to date.

Sub-component 4.2: Recruit and train 3-5 new specialized JEDCO staff to manage/operate the service.Status of Implementation: As per component 4.1 of the Programme’s Terms of Reference, it is specified that the SME Observatory is to be located within the Cross Cutting Support Directorate (CCSD) at JEDCO. The reason for this organizational positioning is to enable the Observatory to maximise synergies and harmonise its activities with the associated functions that are now located within the Directorate, i.e.

(1) National Strategies and Policies Department,

(2) International Cooperation Department,(3) IT Department,(4) Public Relations and Communications Department,(5) M&E Department, and the(6) Organizational Planning and Development Department

As per the approved organizational structure received from the Ministry of Public Sector Development in March 2016.

Whilst the SME Growth Observatory has been established and staff have been appointed to key positions, sadly the Head of the Observatory felt he could not accept the Ministry of Public Sector Development’s Affairs assessment of the level of his post within JEDCO and left the organization in mid-April. His departure was also followed by the resignation of the Technical Writer within his probationary period.

In order to further accelerate the building of capacity within the Observatory, it was decided during the second Steering Committee (8 May) to engage three international experts to work with the relevant observatory staff.

Component 5*: Providing a positive, supported and credible deal flow to existing and future new Funds and/or other investorsPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 190,000Sub-component 5.1: Undertake due diligence services of identified deal flow to the existing and new Funds and/or other investors

Status of Implementation: The core BGM team should, through Growth Diagnostic and other engagement with SMEs, identify where SMEs require additional financial support. This could take one or more of the following routes;1. Provide access to expert advisor/coach to Improve Financial Management to release cash within business 2. Support the SME through the provision of a financially competent coach3. Refer the SME to the Finance team (GDF) to provide support to prepare and submit application for funding4. Refer the SME to support material on the Accelerate with JEDCO web portal.

Therefore, the generalist BGM should have an overview understanding of the Access to Finance issues facing SMEs, so that they are able to identify where there is a financial development need and are able to refer to the appropriate financial expert. Specialist Financial support should be provided by the financial experts from the Governorate Development Fund team. For that reason, The access to finance portal is being integrated into the wider Accelerate with JEDCO Portal. Database structures, customer journeys and web wire frames have been defined and are currently being developed.

Sub-component 5.2: Monitor the deal flow to the existing funds and provide advisory support on the due diligence services.Status of Implementation: A pilot Excel version of the Access to Finance matching tool has been developed and populated with 143 sources of financial funds in Jordan, available from 92 different organisations. The information incudes contact details, websites, as well as information to allow the matching of SMEs with the most appropriate finance resource.

Sources of Finance include: Grants Loans Loan Guarantee Lease Sharia Compliant Finance

Equity Finance Match making

Categories of non-financial support such as Business Support, Industrial Zones and Incubators has been included to provide information on sources of help that may also be relevant. The database allows the searching for the most appropriate finance against the following criteria:

Amount Required Duration of Funding Sharia Compliance Location Type of Finance Required (Loan, Lease, Equity etc.) No of Employees Female Ownership Credit Rating Business Life cycle (Pre-start, new, established etc.)

The criteria are scored, allowing the most appropriate matching finance to be prioritised. The report would be able to be generated either in full, or limited to those funds scoring above 70% of the highest score.

* Components marked with an * include USD 5,000 each for steering committee meeting participation by JEDCO.


(US$)(x)


(y)

Total (US$)


3,460,000* 190,000 3,650,000

Amount Received from Trustee (b*):

3,460,000* 190,000 3,650,000


875,975 * 0 875,975

* while EIB shall procure the necessary experts in accordance with its own procurement rules, as JEDCO is being consulted and provides support at each stage of the selection process, the initial allocation between ISA vs Country execution is maintained.

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 - 0 02015 0 321,170* 321,1702016 554,805 554,805 1,430,7802017 554,805 554,805 2,540,3902018 554,805 554,805** 3,650,000

**remaining funds for additional activities to be determined in the course of the project


200,000 0 200,000


Please note that the result framework will be revised in line with the final ToRsProject Development Objective (PDO): Supporting and sustaining Startups and SMEs - with particular focus on high-value growth enterprises –to increase productivity and competitiveness through adopting and applying innovation.


Unit of MeasureBaselin

e


Frequency


Responsibility for

Data Collection


etc.)April 2015 – April 2016

A

April 2016 – April 2017

F

April 2017 –April 2018

F

YR 4F***

YR5F***

Indicator One:a) Identifying, diagnosing and recruiting Startups and SMEs with growth potential motivated and committed to invest in development and innovation.b) No. of JEDCO Staff (Account Managers) trained

a) No. Of Startups & SMEs

0

10088

applications received

175 250 300 350Quarterly Startups and

SMEsJEDCOContractor

Contractor & JEDCO

b) No. of Staff Trained

0

55 JEDCO Staff recruited and

trained

10 15 25 25

JEDCO

Indicator Two:Providing internationally recognized and accredited, monitored and specialized business coaching service providers in areas of sustainable growth, competitiveness, technology, innovation and exports development.

a) No. Of trained Business Coaches and Service Providers.

0

2519 coaches completed

training45 coaches

undertaking training

50 75 100 100Quarterly

JEDCOContractor Service ProvidersInternational Service Certification Bodies Startups and SMEs

Contractor & JEDCO

b) Growth Impact of Services Delivered on Businesses.

0 10% 20% 50% 65% 75%

c) Database at JEDCO

0

1Database fully

operational by June 2016

1 1 1 1

Indicator Three:Exclusively select and support high-growth companies, by implementing an exclusively advanced and intensive

a) No. of exclusive high growth Startups & SMEs selected.

0

25Selection process

underway

50 100 135 175

QuarterlyJEDCOContractorProvidersInternational

Contractor & JEDCO

coaching Accelerator programme to support the aspirations of this exclusive group of beneficiary companies.

Service Certification Bodies Startups and SMEs

b) Variety of tailored services/Coaching Days obtained.

010

To be decided20 30 40 50

Indicator Four:Establishing a Startups &SMEs Growth Observatory at JEDCO

Observatory 3-5 TrainedStaff

0 1Observatory established

1 1 1 1Quarterly JEDCO Contractor

& JEDCO0 3

To be decided5 5 5 5

Indicator Five:Providing a positive, supported and credible deal flow to the existing and future new funds and/or other investors.

No. of Due Diligence Studies and generated Deal flows

0 No. will be established by the 2nd Year of project implementation.Provisionally it would aim at supporting 10% of the high growth SMEs that will benefit from the Programme.

QuarterlyJEDCO/EIBJordan Capital for Growth Fund Badia Impact Fund&/or other investors.

Contractor & JEDCO/EIB

0

N.B An option to include an independent evaluation of the project should be considered to audit the results claimed by the contractor.


Intermediate Result (Component One): a) Identifying, diagnosing and recruiting Startups and SMEs with growth potential motivated and committed to invest in development and innovation.b) No. of JEDCO Staff trained

Intermediate Result indicator 1: Contractor Recruited and Mobilized

Within 3 months NA 1Completed

By month 3 1. Call for

proposal to identify contractor. 2. Evaluation Committee Reports on Selection Process.3. Contract Signed between JEDCO and Contractor. Payment transfers for services rendered.

Contractor & JEDCO

Intermediate Result indicator 2:Marketing communication created and JEDCO website updated

Within 3 months NA 1Completed

By month 3

1. JEDCO Marketing Communication Strategy.2. JEDCO Website

Contractor & JEDCO

Intermediate Result indicator 3:Contractor Delivery office and JEDCO implementation Unit established

Within 3 months NA 1 Completed

By month 3

Unit Establishment, staffing and operations at JEDCO.

Contractor & JEDCO

Intermediate Result (Component Two): Providing internationally recognized and accredited, monitored and specialized business coaching service providers in areas of sustainable growth, competitiveness, technology, innovation and exports development.Intermediate Result indicator 1:Attract, Recruit & Certify Business Coaches

Within 6months NA 15Coaches

Still underway4 members of

ICF

30Coache

s

50Coache

s

65Coach

es

85Coaches

Quarterly 1. Call for Proposal from interested business coaches.2. Selection Reports for the business coaches.3. Attendance to training records.4. Copies of certificates awarded to Business Coaches.

Contractor & JEDCO

Intermediate Result indicator 2:Offer Services to Startups & SMEs

Within 6 months NA 50 100 150 200 250 Quarterly 1. Copies of communication listing the services offering to the MSME community.2. Expressions of interest received from the MSME community.3. Copies Services contracts to MSMEs.

Contractor & JEDCO

Intermediate Result (Component Three):Exclusively select and support high-growth companies, by implementing an exclusively advanced and intensive coaching Accelerator programme to support the aspirations of this exclusive group of beneficiary companies.

Intermediate Result indicator 1:Identify & Engage With targeted Startups and SMEs

Within 6 months NA 5 15 35 50 75 Quarterly 1. Applications of Interest from the MSMEs.2. Assessment Reports of applicant MSMEs.3. Copy of Agreement with MSME to commit to the support program.

Contractor & JEDCO

Intermediate Result indicator 2:Provide Tailored Services

Within 6 months NA 3TBD

7 15 20 35 Quarterly List of services provided and Time plan for execution.

Contractor & JEDCO

Intermediate Result (Component Four):Establishing a Startups and SMEs Growth Observatory at JEDCOIntermediate Result indicator 1:Establishing the Observatory

Within 9 months 1 1Observatory operational

1 1 1 1 Quarterly JEDCO Board of Directors Decision to Establish and staff Observatory and integrate it in the Organizational chart as part of the Policy Department at the Cross Cutting Support Directorate.

Contractor & JEDCO

Intermediate Result indicator 2:Recruiting & Training Staff

Within 9 months 2 33 staff

recruited. TNA carried out

and training plan prepared

4 5 5 5 Quarterly 1. Posts advertisement.2. Shortlisted Candidates Interview reports.3. Staff Contracts.4. Staff training

Contractor & JEDCO

needs assessment reports.5. Staff attendance of training programs.

Intermediate Result (Component Five):Providing a positive, supported and credible deal flow to the existing and future new Funds and/or other investors.Intermediate Result indicator 1:No. of Due Diligence Studies Conducted.

To Be Established

NA NA Provisionally it would aim at supporting 10% of the high growth SMEs that will benefit from the Programme.

Quarterly Copies of Due Diligence Studies.


Intermediate Result indicator 2:No. of Successful Startups and SMEs that attract investments

To Be Established

NA NA Provisionally it would aim at supporting 10% of the high growth SMEs that will benefit from the Programme.

Quarterly Copies of Investment agreements.


*** For information (beyond end of project implementation period)

Regional Integration through Trade and Transport Corridors: Jordan Activities

A. Basic Project InformationActivity Name: Regional Integration through Trade and Transport Corridors (TRANSTRAC) – Jordan Activities

Country Name: Jordan Name of Implementation Support Agency(ies): European Investment Bank


Recipient Entity: Ministry of Public Works and Housing


Mr. Sami Halasa [email protected] Total Amount Approved by the Transition Fund (US$): 2,630,000.00




5/15/2013


9/1/2013


12/31/2018





The objective of TRANSTRAC is to promote the reduction of trade and transport barriers along the priority trade corridors of Jordan and in related border crossings.


Satisfactory



Following the full signature of the technical assistance (TA) Cooperation Agreement (CA) between EIB and Jordan on 10.02.2015, the procurement and implementation of key components of the TRANSTRAC programme for Jordan have started and activities are advancing at a good pace and with satisfactory outcomes.

Whilst key activities will be completed by the end of 2016, the original TRANSTRAC closing date, other activities have not been started for a variety of reasons including safety concerns and change of needs. Funds, which had been allocated to these latter activities, together with savings as a consequence of competitive bidding processes for ongoing activities could potentially be reallocated to other activities. The Jordanian Government has expressed keen interest in reallocating residual funds to new TRANSTRAC activities. To facilitate that, the ninth MENA TF SC meeting held on the 29-30 May 2016 in Morocco approved a closing date extension for TRANSTRAC to 31/12/2018. A restructuring note on how to use residual TRANSTRAC funds in Jordan, as agreed between Jordan and the EIB, will be submitted to the MENA TF separately.

A brief summary of the implementation status of ongoing/completed TRANSTRAC activities is given hereunder.


Activities in progress:

- Component #1 (b) Road Safety Action Programme: This activity is advancing according to schedule and the first phase is completed. The inception report was discussed and approved at the Steering Committee in February 2016. A road safety seminar was organised in Amman on 5 May 2016. Phase 2 is currently starting with an updating of a road audit and signs manual. The training of road safety auditors is scheduled to start mid-July 2016. All actions in Jordan under this regional programme will be completed by end November 2016.

- Component #2 (a) Rehabilitation and upgrading of routes R15 Amman airport-Aqaba Back Road and R65 North Shouna-South Shouna: For the R15, all studies and deliverables of this TA have been completed and approved by MPWH. The study for the R65 will be finalized before end June 2016. The first part of the study has already been approved by the MPWH. The last SC for this TA was held in February 2016.

Activities proposed for restructuring:

- Component #1 (a) TA to transportation activity: Activity proposed to be restructured. Discussions are ongoing to absorb these funds partly under the Road Safety Action Programme (see above), which has been progressing well (cf. separate restructuring note).

- Component #2 (b) Jordan-Iraq border crossing (Al Karamah): ToR prepared and agreed in 2014. Later, procurement of the related consultancy services has been put on hold due to security concerns in the area. Activity proposed to be restructured (cf. separate restructuring note).

- Component #3 Support for a project management unit (PMU): The original TRANSTRAC application included a component to support a project management unit (PMU) within the lead Ministry to monitor and coordinate the TAs. With hindsight, the need for this PMU did not fully materialise as the TA operations were well managed between the SNAP-T team of the EIB on the one hand and the promoter on the other hand. Activity hence proposed to be restructured (cf. separate restructuring note).

C. Implementation Status of Components Component 1: Institutional and capacity building for regional trade framework improvementPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 350,000Sub-component 1.1: TA to transportation (regionwide component)


- This activity is proposed to be restructured. Discussions are ongoing to absorb these funds partly under the Road Safety Action Programme (see below), which has been progressing well (cf. separate restructuring note).

Sub-component 1.2: Preparation of road safety assessment and action plan (regionwide component)


- This activity is advancing according to schedule and the first phase is completed. The inception report was discussed and approved at the Steering Committee in February 2016. A road safety seminar was organised in Amman on 5 May 2016. Phase 2 is currently starting with an updating of a road audit and

signs manual. The training of road safety auditors is scheduled to start mid-July 2016. All actions in Jordan under this regional programme will be completed by end November 2016.

Component 2: Preparatory studies for infrastructure improvements of the priority corridorsPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,750,000Sub-component 2.1: Upgrading of the North-South and East-West corridors


The project concerns the rehabilitation and upgrading of routes R15 Amman airport-Aqaba Back Road and R65 North Shouna-South Shouna. For the R15, all studies and deliverables of this TA have been completed and approved by MPWH. The study for the R65 will be finalized before end June 2016. The first part of the study has already been approved by the MPWH. The last SC for this TA was held in February 2016.

Sub-component 2.2: Upgrading and expansion of Border crossing facilities


For this project, which concerns the Jordan-Iraq border crossing (Al Karamah), ToR have been prepared and agreed in 2014. Later, procurement of the related consultancy services has been put on hold due to security concerns in the area. Activity proposed to be restructured (cf. separate restructuring note).

Component 3: Project Preparation, Management, Coordination, Monitoring and EvaluationPrevious Rating: Moderately Satisfactory


Cost (US$): 400,000

The original TRANSTRAC application included a component to support a project management unit (PMU) within the lead Ministry to monitor and coordinate the TAs. With hindsight, the need for this PMU did not fully materialise as the TA operations were well managed between the SNAP-T team of the EIB on the one hand and the promoter on the other hand. Activity hence proposed to be restructured (cf. separate restructuring note).


(US$)

(x)


(y)

Total (US$)


550,000 1,950,000 2,500,000


550,000 1,950,000 2,500,000

Actual Amount Disbursed (c): 0 1,230,000 1,230,000

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2015 500,000 500,000

2016 800,000 400,000 1,200,0002017 300,000 300,000 600,0002018 200,000 200,000


130,000 0 130,000




MeasureBaseline





definition etc.)Jan.

2016 – Dec. 2016

F

Jan. 2017 –

Dec. 2017

F

Jan. 2018 –

Dec. 2018

FIndicator One:About 20 transport road safety auditors trained

# of participants

020 20 20

Bi-annually



Indicator Two:Studies completed: (i) priority North-South corridor(s), defined and technical studies completed; (ii) road safety action plan completed.


0

0

100%

2

100%

2

100%

2

Bi-annually

ReportsStudies produced


Quality and Number of studies completed and approved


Intermediate Result (Component One): Institutional and capacity building for regional trade framework Sub-component A.1: TA to transportation

Sub-component A.2: Road safety assessment and action planIntermediate Result indicator One:TA to Transportation: About 20 transport road safety auditors trained

# of participants

0 20 20 20Bi-annually


Qualitative- number of participants who have successfully completed the training.

Intermediate Result indicator Four: Road safety assessment and action plan


0 100% 100% 100% 3 -months Reports PMCU, Focal Points with EIB input

Quality study and action plan produced and approved

Intermediate Result (Component Two): Preparatory studies for infrastructure improvements of the priority corridors

Intermediate Result indicator One: Preparation of North-South road corridors (R15 and R65)

Percentage progress

0 100% 100% 100% 3-months Detailed technical studies


Quality Studies produced and approved

Integrated Inspection Management System

A. Basic Project InformationActivity Name: Integrated Inspection Management System “IIMS” for Jordan

Country Name: Jordan Name of Implementation Support Agency(ies): International Finance Corporation

Name of ISA Project Leader: Abeer Kamal Shalan Email of ISA Project Leader: [email protected]

Recipient Entity: Ministry of Industry and Trade and Supply of the Hashemite Kingdom of Jordan


Dr. Jawad Al-Anani, Minister of Industry and Trade and SupplyEmail address: [email protected]



182,000 – USAID Jordan

315,000 – Government of Jordan’s parallel contribution for hardware and infrastructure


756,749


6/11/2014


7/1/2014


7/1/2017



Secondary Pillar(s): Enhancing Economic GovernanceChoose an item.Choose an item.


The objective of this project is to reduce unnecessary time and cost burden on the private sector caused by multiple, uncoordinated, and frequent inspection visits by the various inspectorates; enhance efficiency and use of resources for both inspectorates and businesses; and increase private sector awareness of requirements.

This project supports the Government of Jordan “GoJ” in building an integrated inspection management system “IIMS” that is shared among inspectorates and based on international best practices. This system provides inspectorates with a registry of enterprises subject to inspection, and allows for coordination and sharing of information between inspectorates. This project supports sustainable growth by enhancing the business environment and improving competitiveness, and enhances economic governance by increasing transparency, limiting corruption, and promoting accountability policies in the inspection regime.


Satisfactory


Brief Summary of Project Implementation Status: Work on the development of the inspection management system based on IT applications was kicked-off on

170


January 24th, 2016 as planned. The Ministry of Industry & Trade & Supply has officially signed the License and Maintenance Agreement with the IT vendor, thus concluding all contractual arrangements required. IFC has committed an amount of USD1.65M for this contract. The Vendor has mobilized its team and sub-contractor and activities were initiated.

An introductory workshop was held with all relevant stakeholders on February 1 st, 2016 to introduce the vendor, explain the assignment in more details, and present the work plan and the expected roles & responsibilities of all stakeholders. In addition to IFC and the Vendor, these stakeholders include the Ministry of Industry & Trade & Supply, the various inspectorates participating in the project, and other relevant agencies including Customs Department, Income & Sales Tax Department, and Social Security Corporation (such agencies will feed the inspection database with information about businesses subject to inspection).

Activities to design and develop the system are in progress where we are currently in the detailed design stage of the project. During the past period, the following activities have been conducted:

- Developed the system architecture design, hardware sizing, as well as internal project management documents (such as communication plan, risks and issues management plan, among others);

- Conducted more than 25 requirements gathering sessions with all inspectorates as well as registration agencies to gather detailed system requirements;

- Based on the outcome of the above-mentioned sessions, a first draft of the System Requirements Specifications document was developed and is currently under revision by the IFC project team and the inspectorates;

- Completed the preparation of hosting arrangements for the IT system with the Ministry of Industry and Supply and the Ministry of ICT;

- Initiated the design of the inspection business registry which shall include a database

The development of inspection tools and processes that will be automated using the inspection management system is in progress. These include the development of risk-assessment tools and inspection checklists. This was completed for a number of inspectorates during the past period.

There will be a need to extend the closing date of the project based on the actual start date of the system development and implementation, which took longer than anticipated due to the lengthy procurement procedures. A request for extension will be submitted as per MENA Transition Fund’s procedures.

Note: the overall implementation progress was ranked as “moderately satisfactory”; the Vendor’s team has faced some difficulties at the outset of the assignment in understanding the context and specificities of the different inspectorates participating in the project, which would affect the system requirements. The Vendor has taken corrective actions necessary to overcome these difficulties including putting in additional resources (at no extra cost) to address any gaps and expedite the completion of the detailed design phase.



Complete the detailed design phase for the system IFC in collaboration with inspectorates

August, 2016

Complete the Establishment of the registry of objects of inspection IFC in collaboration with MoITS

December 2016

Finalize the deployment plan, and deploy the system at a number of inspectorates according to the plan

IFC in collaboration

December 2016

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with inspectorates

C. Implementation Status of Components Component 1: Building and Implementing a database and workflows for the inspectorates



Cost (US$): 2,290,000 (this amount represents direct costs funded through the Transition Fund only)

Sub-component 1.1: Design, development, and deployment of the application (enterprise registry and software) consisting of:- Database of enterprises subject to inspection; this registry shall be shared among inspectorates and each

inspectorate will have the ability of updating it with inspection plans and inspection visit results;- Automated workflow capabilities for carrying out inspection activities such as planning, scheduling, risk

assessment, documenting visit checklists, reports and actions, communication with business via e-mail or SMS, etc.;

- Reporting engine to enable inspectorates to generate reports and statistics about their inspection activities and results;

- Document management and archiving capabilities to handle attachments uploaded to the system, such as lab results, photos, and other documents obtained.

Status of Implementation: Work on the development of the inspection management system based on IT applications was kicked-off on January 24th, 2016 as planned. The Ministry of Industry & Trade & Supply has officially signed the License and Maintenance Agreement with the IT vendor, thus concluding all contractual arrangements required with the vendor. The Vendor has mobilized its team and sub-contractor and activities were initiated.

An introductory workshop was held with all relevant stakeholders on February 1 st, 2016 to introduce the vendor, explain the assignment in more details, and present the work plan and the expected roles & responsibilities of all stakeholders. In addition to IFC and the Vendor, these stakeholders include the Ministry of Industry & Trade & Supply, the various inspectorates participating in the project, and other relevant agencies including Customs Department, Income & Sales Tax Department, and Social Security Corporation (such agencies will feed the inspection database with information about businesses subject to inspection).

Activities to design and develop the system are in progress where we are currently in the detailed design stage of the project. During the past period, the following activities have been conducted:

- Developed the system architecture design, hardware sizing, as well as internal project management documents (such as communication plan, risks and issues management plan, among others);

- Conducted more than 25 requirements gathering sessions with all inspectorates as well as registration agencies to gather detailed system requirements;

- Based on the outcome of the above-mentioned sessions, a first draft of the System Requirements Specifications document was developed and is currently under revision by the IFC project team and the inspectorates;

- Completed the preparation of hosting arrangements for the IT system with the Ministry of Industry and Supply and the Ministry of ICT;

- Initiated the design of the inspection business registry which shall include a database

The development of inspection tools and processes that will be automated using the inspection management system is in progress. These include the development of risk-assessment tools and inspection checklists. This was completed for a number of inspectorates during the past period.

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Sub-component 1.2: Training of inspection personnel on the newly developed system, this includes:- end-user (i.e. inspection personnel) training on using the system- technical training for system administrators- ensuring proper hand-over and change managementStatus of Implementation: Not startedSub-component 1.3: One-year implementation support

Status of Implementation: Not started


(US$)

(x)


(y)

Total (US$)


2,290,000 2,290,000


2,290,000 2,290,000

Actual Amount Disbursed (c): 494,021 494,021

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 157,578 157,5782015 134,861 82,456 217,3172016 381,562 560,365 941,9272017 372,766 445,084 817,8502018 415,533 0 415,5332019 91,900 0 91,900


262,728 89,377 352,105

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MeasureBaseline




Collection

Description (indicator definition etc.)Jul

2014 – Jun

2015A

July 2015 –

Jun 2016

A

Jul 2016 –

Jun 2017

F

Jul 2017 –

Jul 2018

F

YR 4(Post-

Completion) F

Indicator One: Average number of inspection visits per enterprise per year

Number 31

Actual results for PDO level indicators will be measured following the implementation of project outputs by the inspection agencies.

26 26 20 Annual Inspectorates’ records

IFC/Ministry of Industry &

Trade

This indicator measures the overall number of visits conducted by the various inspectorates to a single business

Indicator Two: Average number of inspectorates visiting an enterprise per year

Number 7 5 5 4 Annual Inspectorates’ records


Trade

This indicator measures the average number of inspectorates that visit a single business per year

Indicator Three: Number of violations and fine issued against enterprises by inspectorates

Number 106,700 96,000 96,000 85,360 Annual Inspectorates’ records


Trade

This indicator is used to help measure improvement in private sector compliance

Indicator Four: Number of complaints made by citizens against enterprises

Number 14,400 13,000 13,000 11,520 Annual Inspectorates’ records


Trade

This indicator is used to help measure improvement in private sector compliance by observing the number of complaints made by citizens about private sector violations


Intermediate Result indicator Number 0 0 1 5 5 0 Semi-annual Project IFC

174

One: Number of training sessions, workshops, and awareness raising events conducted

records

Intermediate Result indicator Two: Number of participants in training sessions, workshops, and awareness raising events

Number 0 0 42 100 100 0 Semi-annual Project records

IFC

Intermediate Result indicator Three: Number of inspectorates implementing the automated system

Number 0 0 0 5 5 0 Annual Project records, Inspectorates records


Trade

Note: Distribution of interim targets might be revised based on the vendor’s final implementation plan.

Intermediate Result indicator FourLaunch of the integrated inspection management system

Number 0 0 0 1 1 0 Project records, Inspectorates records


Trade

This is a binary indicator:0 means “not yet achieved”1 means “achieved”

175

Leveraging Regulatory Reforms to Advance Financial Inclusion in Jordan

A. Basic Project InformationActivity Name: Leveraging Regulatory Reforms to Advance Financial Inclusion in JordanCountry Name: Jordan Name of Implementation Support Agency(ies):

International Finance CorporationName of ISA Project Leader: Nahla El Okdah Email of ISA Project Leader: [email protected] Entity: N/A Name and Email of Recipient Entity Contact: N/A


Additional Funds Leveraged and Source(s), if any (US$): 0. But an estimated 487,500 is planned

Total Amount Disbursed (Direct and Indirect in US$): $29, 555 (+12,637 regional) =$42,192


Project Implementation Start Date:Sep-Nov (pre-implementation)/Dec 16 2015 (implementation of NMB)

Project Closing Date:30 June 2018





B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of this project is to leverage changes in microfinance regulations in Jordan to support key microfinance service providers18 , prepare them for, and transform them into for-profit entities and further advance financial inclusion. The project will work with 2 MFIs to help them respond to the changing regulatory framework, and also include related KM and client protection activities.Rating for progress towards achievement of objective:


Rating for overall implementation progress: Moderately SatisfactoryBrief Summary of Project Implementation Status: Due to several unforeseen delays and despite satisfactory progress on Component 1, implementation has moved relatively slow this reporting period. IFC delivered a comprehensive Risk Diagnostic Report to the National Microfinance Bank (Al Watany) as well as conducted an initial scoping mission for the Internal Audit component. Under Component 2, discussions resumed with Tamweelcom on a potential follow up engagement in the areas of risk and very small enterprise lending with a mission scheduled in early July to help shape the project and, under Component 3, IFC conducted a regional training on client protection (Smart Campaign) in Cairo.


Expected Delivery

Date Begin implementation of the Internal Audit component with Al Watany IFC (Al Watany) 10/31/2016

Complete follow-up risk diagnostic and project scoping assignment for Tamweelcom in order to finalize an agreement for a new project

IFC 12/31/2016

Identify potential partners for Smart Campaign certification in Jordan (and conduct one assessment visit, time permitting).

IFC (and Smart Campaign)

12/31/2016

18 Microfinance service providers in the region include microfinance institutions, microfinance banks, non-bank financial institutions, NGOs and postal banks amongst other entities.

176


C. Implementation Status of Components Component 1: Risk Management


Current Rating: Satisfactory Cost (US$): 261,250 (this amount represents direct costs funded only through the Transition Fund).

Sub-component 1.1: Assisting MFIs in Jordan to develop or strengthen the risk management functions.

Status of Implementation: -After signing the agreement in December with National Microfinance Bank (Al Watany) in Jordan, preparation began in January for a comprehensive one-week Risk Diagnostic mission which took place in February to assess Al Watany’s current risk management capacity. The assignment offered them a 360-degree view of key risk areas facing their organization as well as identify specific areas for improvement. A comprehensive report including a clear road map to upgrade their risk capacity and several “quick wins” which Al Watany’s staff can implement on their own, was submitted to the client. As part of implementation, IFC worked with the MFI to define job descriptions for key risk positions and begin recruitment to staff the department. The next phase, or implementation of the recommendations, is slightly delayed - pending the completion of recruitment and a key staff member’s return from maternity leave.

-IFC also organized the first phase of the Internal Audit component, beginning with a 3-day Internal Audit diagnostic mission in March/April which likewise produced a clear view of the capacity building needs to be addressed by the project, outlined in a detailed action plan for the audit component. Al Watany also began the critical staffing/recruiting process for the audit department. Internal candidates were interviewed by IFC’s Internal Audit expert and, with IFC support, an advertisement for the necessary external recruitments was posted in local newspapers and professional website.

Component 2: Transformation Preparedness, Transformation and Establishment of GreenfieldsPrevious Rating: Moderately Unsatisfactory



Sub-component 2.1: Assisting MFIs prepare for transformation

Status of Implementation: -As part of the proposal submitted to the Transition Fund, IFC included advisory support to Tamweelcom (a leading Jordanian MFI) on capacity building linked to transformation/commercialization. However, as mentioned in the last period, given the delay in approving and receiving the funds, IFC had already moved ahead and developed an initial report in 2015 on the benefits and challenges of transformation as well as conducted a workshop with Tamweelcom’s management and Board.

-During the recent reporting period, while IFC was in discussions with the Tamweelcom’s management, a changeover occurred at the CEO level which delayed progress on the negotiations. During this reporting period however, IFC met with the MFI’s new CEO and discussed the original scope of work that had been proposed (very small enterprise lending and credit scoring). While an initial agreement was reached, the signing of the engagement was postponed until IFC conducted a short follow up risk diagnostic and scoping mission which is scheduled for early July.

Component 3: Consumer Protection

177




Sub-component 3.1: Assisting MFIs obtain the Smart Campaign Certification

Status of Implementation: The aim of this regional component is to assist MFIs in Jordan demonstrating the highest levels of client protection by assessing MFIs, supporting them as they upgrade their client protection capacity, and eventually obtaining the internationally recognized Smart Campaign certification. During this reporting period, IFC conducted a survey of MFIs in Jordan (and extended to others in the region) to better understand their readiness, capacity and interest to work on client protection – with an aim to begin developing a pipeline for assessments, upgrade and eventual certification. In addition, in collaboration with Sanabel, the regional Microfinance Network of Arab Countries, IFC organized a training in Cairo on client protection for some of its staff as well as some independent consultants (particularly from Jordan) as first step towards building capacity in the region. The three-day training workshop was held between May 2- 5 and included 16 participants, 75% of which have reported that they were very satisfied with the training.

Component 4: Knowledge Management


Current Rating: Not Applicable Cost (US$): 142,500 (this amount represents direct costs funded only through the Transition Fund).

Sub-component 4.1: Sector-wide workshops and publications

Status of Implementation: No further work to report during this period. However, discussions with Sanabel were ongoing on new KM activities to be conducted – both at the next Sanabel conference and also studies/workshops relevant specifically to Jordan.

D. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution (US$) Direct Cost for ISA-



0 712,500 712,500


0 712,500 712,500


0 29,555+12,637 (regional) 42,192

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2015 N/A 35,000 35,000

178

2016 50,000 75,000 125,0002017 125,000 175,000 300,0002018 252,500 N/A 252,500


0 37,500 37,500

179






Data Source/ Responsibility for Data

Collection


etc.)Jul 2015-Jun

2016 (A)Jul 2016-Jun

2017 (F)Jul 2017-Jun

2018 (F) YR 4 (F)19 Methodology

Businesses received business support/advisory services or financial investment



Intermediate Result: Risk Management and Transformation, Transformation Preparedness and Establishment of Greenfields

Business loans provided or guaranteed Number N/A

0 (122,850) 253,682 392,905 540,967

Annual MFIs IFC

Value of micro loans disbursed USD N/A

0 (100,183,811) 212,463,185 333,618,320 463,375,356 Annual MFIs IFC

Number of micro loans outstanding (non-cumulative)

Number107,998 0 (122,850) 130,832 139,222 148,063

Annual MFIs IFC

Outstanding microfinance loan portfolio of supported institutions (non-cumulative)

USD

54,610,807

0 (63,252,500) 68,840,881 73,694,572 78,960,765

Annual MFIs IFC

Intermediate Result: Facilitating Knowledge-Sharing Across the Microfinance Sector Number of workshops, training events, seminars and conferences


19 IFC captures results after project closure20 Regional workshop on client protection (shared with Egypt)

180

Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making in Jordan


Country Name: Jordan Name of Implementation Support Agency(ies): OECD

Name of ISA Project Leader: Tatyana Teplova Email of ISA Project Leader: [email protected]

Recipient Entity: Jordanian National Commission for Women





5/19/2015


11/3/2015


9/30/2018




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: Increase women’s participation in Parliament, local councils and policy-making to underpin and drive inclusive development


Satisfactory



Following the successful launch of the project in November 2015, the establishment of the Steering Group and CSO Advisory Group, great progress has been made in the first half of 2016, with continued support from the Jordanian government:

Progress has been due to the dedicated participation of Jordanian counterparts thus far. Representatives from the Jordanian National Commission for Women (JNCW), the Ministry of Municipal Affairs (MOMA), the Ministry for Political and Parliamentary Affairs (MOPPA), the Ministry for Planning and International Cooperation (MOPIC) and the Independent Elections Commission (IEC) dedicated considerable time to the OECD and peer-reviewers during fact-finding, which demonstrated their strong interest and support too. As such, these ministries and the IEC have agreed to join the 2b capacity-building programme for women candidates in order to educate them on the new laws that have been or will be passed in Jordan – affecting the electoral process and local administration.

The engagement of the Jordanian Parliament in co-organizing the 2016 Regional Dialogue was remarkable. The House of Representatives dedicated considerable human and monetary capital to the success of the event – with over half of the Parliamentary Secretariat contributing to its smooth running. The event was held under the

181


patronage of King Abdullah II himself. Further, the Prime Minister hosted a dinner and invited all participants.

Project donors remain engaged in the project and periodic updates are given on progress via emails, conference calls and short visits during missions. Representatives from all donor countries were invited to participate in this year’s Regional Dialogue and many attended (i.e. Italy, Canada, Great Britain, France & Germany). Main achievements so far include:

A guide on the methodology and framework to conduct Component 1a: Mapping and analysis of parliamentary and local council electoral and workplace operations (including internal parliamentary procedures), processes and policy frameworks through a gender lens and Component 2a: Conducting country-based assessment of the existing opportunities and current challenges faced by women candidates has been drafted and finalized. Assessment 2a was contextualized for Jordan (e.g. taking into account the current legal framework, institutions and state of play in the country).

The first regional dialogue for the project was hosted in Amman, Jordan from 4-5 May 2016, within the 2016 Women in Parliament’s (WIP) Global Summit to maximize the networking opportunities of MENA policy-makers and stakeholders. This Summit was the first of its kind to be held in a Middle East North African (MENA) Parliament bringing together female Parliamentarians from all over the world and in collaboration with the Jordanian National Commission for Women (JNCW).

Seventeen MENA countries participated and sent Parliamentary delegations. The event was co-organized with WIP and the Jordanian Parliament and held under Jordan’s Parliamentary dome. Egypt, Morocco and Jordan were present on all speaker panels organized by the OECD in sync with the regional project. A total of three sessions were covered with explicit connection to the regional dialogue: 1) Women’s political participation across all levels in the MENA region, 2) Inclusive Electoral Processes and Systems, and 3) Increasing Consultation between women’s CSOs and Parliament. Additionally, there were three plenary sessions and nine other parallel sessions on topics ranging from women’s role in peacebuilding, to policy responses to migration and political violence against women. In total, over 500 participants attended, including over 400 MPs, 2 current Heads of State and 5 former Heads of State, government officials, members of civil society, local councils and academia. In all, there were 86 countries present.




Capacity Building for political candidates Balancing duties and responsibilities of a local council



OECD/JNCW 10/15/2016

C. Implementation Status of Components Component 1: Making legislatures transparent, equitable, and gender-sensitive - Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 200,105

Sub-component 1.1: Mapping and analysis of parliamentary electoral and workplace operations, processes and

182

policy frameworks through a gender lens, including in selected local election councils

Status of Implementation: Implementation will begin in Spring 2017 as new Parliamentary elections will take place in September 2016. It is necessary to provide time for the new parliament to acclimate and sit for at least one session before conducting an assessment.

Sub-component 1.2: Providing country-based capacity building activities to parliamentarians, selected local electoral committees and secretariats

Status of Implementation: Seminars will take place after Component 1a has been completed – tentatively in the Spring/Summer of 2017. A study visit will take place in June 2018.



Sub-component 2.1: Conducting country-based assessment of the existing opportunities and the current challenges faced by women candidates

Status of Implementation: An assessment was conducted from 21-25 March 2016. Three governorates were visited to conduct interviews – Amman, Karak and Irbid governorates

A Steering Group and CSO Advisory Group meeting were also held at JNCW during the mission to ascertain the Assessments created for Component 1a and 2a and prepare for the first regional dialogue to be held in Jordan. A gender expert from Egypt, Gihan Abou Zeid, and a peer-reviewer from Belgium, Annemie Neyts-Uyttebroeck (Minister of State, Member of the European Parliament, pervious local councilwoman) joined the mission.

Over 60 interviews were held during the fact-finding mission, based on the Assessment Guides for Component 2a. Interviewees represented every governorate in Jordan. Those interviewed included:

- Members of the Jordanian National Commission for Women- members of academia, political think tanks, and international organizations- members of the CSO Advisory Group - Representative from the Ministry for Municipal Affairs- Representative from the Ministry for Political and Parliamentary Affairs- Representative from the Ministry of Planning and International Cooperation - Representative from the Independent Elections Commission- previous and current members of the Jordanian House of Representatives and Senate- female leaders of political parties - Past/prospective females candidates, male and female community leaders, former and current local council members

An outcomes report based on findings for Assessment 2a is currently being drafted and will be circulated to relevant stakeholders for validation, input and revisions this summer. The report will be finalized in advance of Component 2b capacity building exercises tentatively scheduled to take place in October 2016, just after Parliamentary elections have been held.

Logistical arrangements, finalization of a programme for 2b capacity building and identification/selection of participants for 2b capacity building are currently ongoing. Activities will be held in either Amman or the Dead

183

Sea for logistical purposes (e.g. large enough venue space, central/easiest locations for those commuting to training).

Sub-component 2.2: Building women’s capacities to participate in elections and parliamentary operations at national and sub-national levelsStatus of Implementation: Capacity building activities are scheduled for October 2016, just after Parliamentary elections have finished.




Cost (US$): 119,004

Status of Implementation: Implementation is foreseen for September 2017 and September 2018.

Component 4: Regional Dialogue Previous Rating: Not Applicable


Cost (US$): 50,682

Status of Implementation: The first regional dialogue for the project was hosted in Amman, Jordan from 4-5 May 2016, within the 2016 Women in Parliament’s (WIP) Global Summit co-organized with WIP and the Jordanian Parliament and held under Jordan’s Parliamentary dome.


(US$)

(x)


(y)

Total (US$)








OECD: 39,900 USD 0 OECD: 39,900 USD

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Description (Indicator

Definition, etc.)Jan-Dec 2016

F

Jan-Dec 2017

F

Jan-Sep 2018


Quantitative Existing yes yes yes once Project progress reports


Aassessments, reports, action plans, roadmaps, models of good practices or frameworks designed to enhance the enabling environment










Quantitative none



Government bodies, institutions and local government units received support services

185

aimed at increasing their capacity to delivery public services to constituents








Number of CSO’s involved in public consultations and Number of awareness campaigns, hits on the website and regional meetings; communication strategies; electoral commissions and parliamentary secretariat


186

Jordan Competitiveness and Investment

A. Basic Project InformationActivity Name: Jordan Competitiveness and Investment

Country Name: Jordan Name of Implementation Support Agency(ies): OECD, WBG


OECD : Andreas Schaal/Marie-Estelle Rey

WBG : Najy Benhassine/Mohamed Baider




Recipient Entity:

Ministry of Planning and International Cooperation

Ministry of Industry and Trade

Jordan Investment Commission


Zeina Toukan, MoPIC, [email protected]

Dr. Jawad Anani, Minister of industry and Trade

Thabet Elwir, President, Jordan Investment Commission, [email protected]



Total Amount Disbursed (Direct and Indirect in US$): World Bank: 782,543OECD: 482,773






Secondary Pillar(s): Investing in Sustainable GrowthCompetitiveness and IntegrationInclusive Development and Job Creation

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: In order to attract more quality investment, Jordan must implement reforms throughout the investment life cycle and the institutional mechanisms, through which investment policy is delivered. The project proposes well defined support to strengthen national and sector competitiveness and attract much needed investment into the country, which will have a direct impact on employment and income. It is composed of activities that aim at strengthening the investment rules and regulations by assessing the investment framework with a particular focus on the core protection provisions, the rules and conditions applying to foreign investors, the dispute settlement mechanisms, consistency with Jordan’s international investment obligations, and the incentives regimes. The project will also strengthen the investment facilitation provisions and capacities by streamlining investment procedures for the entry of FDI into the host country through a strengthened one-stop-shop. In addition, investment authorities will be provided with recommendations on how to improve internal procedures and regulation, streamline the decision-making process, and define efficient prospective and established investor services. The project is also supporting related reforms in a specific sector: renewable energy and energy efficiency (RE/EE).


Satisfactory


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The overall implementation of the project is well on track. Substantial progress has been achieved by the OECD on component 1 during the six month reporting period ‐ with additional analysis, policy advice and capacity building conducted on the legal framework for investment (workshop on “Boosting Jordan’s Competitiveness: Modernising the Legal Framework for Investment”, background note and capacity-building workshop on international investment agreements), as well as on the renewable energy sector with the finalisation and the presentation of the draft “Clean Energy Investment Policy Review of Jordan”. WB support to JIC has expanded to provide more internal and external reforms to allow JIC to function properly to fulfil its mandate. The initial support was focusing on reforming the processes linking investor services departments such as Investment Window and Investment promotion & aftercare. The support also delivered investor service catalogue and supported the Investment Window in building its internal structure and related processes. Despite the completion and delivery of the planned tasks, the client faced difficulties in implementing proposed reforms. This triggered more analysis by the project to understanding areas of weakness that hinders implementation. The analysis revealed five areas in need of immediate attention. These areas are: (1) unclear internal department structures (for investor related services); (2) insufficient staffing; (3) poor coordination among JIC departments; (4) poor coordination between JIC and government agencies providing services in the Investment Window; and (5) lack if standards that allows for efficient exchange of data.

The project revised its plans to address these areas and to support JIC in defining proper structure and mandate for investment services departments. The project is working with government agencies present in JIC to reform relevant licensing, permits, and approvals. Moreover, the project is working with Companies Control Department, Tax, Social Security, and Municipalities to standardize the business activities (based on ISIC 4) and data collected from investors so that an electronic exchange of data can happen efficiently between the relevant agencies. Once completed the business entry process will be much simpler, with fewer requirements, and will take less time.

The team continued working closely with all entities granting fiscal/financial incentives to raise awareness and ensure they are on board to the importance of developing an incentives Inventory, which will be a great tool to increase information sharing in a transparent manner. Discussions to upload and maintain the databases of the Incentives Inventory once validated on the E Investment Portal were initiated with relevant Department in JIC.

As part of the WB support to JSMO, the team conducted a thorough 2-day training program for around 30 JSMO customs inspections personnel on how to implement EU directives on 9 appliances. The training was very effective for the border inspectors.

In the aftermath of the London Conference on “Supporting Syria” and the implementation of the Jordan Compact, a workshop on “Boosting Jordan Competitiveness: Modernising the Legal Framework for Investment” was organised by the OECD and USAID (February 2016). Attended by nearly 100 participants from public and private sectors, the workshop reviewed recent investment reforms and discussed challenges that remain to be tackled to create an enabling regulatory framework to boost Jordan’s competitiveness as an investment destination. At the request of the authorities, specific attention was given to international investment agreements (IIAs). The OECD produced a report on Jordan IIAs and investor-State dispute settlement mechanisms. A capacity-building workshop was then organised by the OECD and USAID in May 2016 for a focused group of 20 policy-makers with the view to foster expertise and knowledge. The draft “Clean Energy Investment Policy Review of Jordan” was presented at the OECD Investment Committee (February 2016) and a mission was undertaken to discuss and fine-tune the findings with Jordan stakeholders (May 2016)

In response the London Conference and Jordan Compact, the WB is working with JIC to facilitate business entry processes for Syrian investors and entrepreneurs by adding a “Syrian Window” in the investment window. The aim of this new window is to help Syrians to establish new businesses in a fast and efficient manner. The project will produce services guide for Syrians and will introduces a Syrian desk that should respond to relevant

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enquires.

Next OECD activities under component 1 comprise: Further analytical work and capacity-building workshop on investment disputes and arbitration (fall

2016); Publication of the OECD “Clean Energy Investment Policy Review of Jordan” and launch through a multi-

stakeholders conference (Fall 2016); Revision of the ranking of Jordan in the OECD FDI Restrictiveness Index as the by-law on FDI restrictions

has been adopted following OECD substantive and technical activities. OECD activities under the project should be completed by end 2016.

Next WB activities:Component 2:Support to the investment window:

Finalize the content management process so the electronic portal can be deployed and related capacity-building activities can be implemented.

Finalize Phase II Investment Window reform, including reforming licenses, clearances, and approvals provided by the agencies located in JIC investment window.

Complete the standardization of business activities and relevant data. Implement Syrian investor window in JIC. Support JIC with two international advisors to help them manage investor services and relevant services.

Support to investment promotion / after care:

Structure and define the new IP directorate mandate. Support JIC in building appropriate processes to manage the portal content. Support JIC to create an investor tracking system. Finalize the investor motivation survey Conduct Investment promotion capacity building workshops to Jordanian diplomats.

Energy efficiency: standards and labels:

Conduct planned workshop with European Commission experts and establish an effective connection with the EU office in Brussel. The goal is to build JSMO capacity in understanding EU standards for energy efficient products and progress toward signing the ACAA agreement.

Continue support to JSMO as defined in details below

Management and Coordination:

The management of the project is going smoothly. Changes of key staff in the main beneficiary organization, the Jordan Investment Commission, have not undermined the activities. Both the new Chief and Secretary General opened the OECD workshops and have been closely associated to project development and future activities.

Cooperation with USAID, which is implementing the Jordan Competitiveness Programme, continues to be excellent. Two workshops were jointly organised in February and May 2016 (USAID provided logistical and convening support and the OECD its analytical expertise) The EU office in Amman is providing a great support to the program to help JSMO in building its capacity to comply with the much-needed ACAA agreement. The EU Delegation also contributed to the OECD/USAID Workshop held in February 2016 by delivering substantive presentations.

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Challenges: Delays in hiring of needed staff in JIC Changes of key clients Poor coordination between JIC and relevant government agencies. Difficulties in identifying key responsibilities in investment treaty negotiations and management of

investment disputes


Component 1: The Component 1 supports the implementation of improved investment rules and regulations, both for domestic and foreign investors, at the national level and in the selected pilot sector of RE/EE. The investment framework will be assessed, with a particular focus on the core protection provisions, the rules and conditions applying to foreign investors, the incentives regime and the consistency with Jordan’s international investment obligations, issues of special importance for the follow-up of the OECD Investment Committee recommendations. Based on the assessment of the investment rules and regulations, policy advice and recommendations will be elaborated to implement, improve and strengthen the reforms.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 750,000Sub-component 1.1: Analysis of and advice on the legal investment framework of Jordan (OECD)

Status of Implementation: Completed.

Building on the first substantive output of the OECD, the “Analysis of the new Investment Law with a focus on the protection of investment” discussed during a workshop in March 2015, the OECD held a Workshop on “Boosting Jordan Competitiveness: Modernizing the Legal Framework for Investment” in February 2016. Organized jointly with USAID in cooperation with JIC, the workshop aimed at building awareness on ways to improve the investment climate, in particular in the context of the Jordan Compact in response to the Syrian refugees crisis. The event brought together nearly 100 participants – Jordanian policy makers from relevant ministries and governmental agencies, numerous representatives from the private sector and international partners – to discuss a broad range of issues including recent and ongoing investment policy reforms in Jordan, developments in the economic zones regime in Jordan, the impact of international investment agreements signed by Jordan, and the challenges of dealing with investment disputes. The workshop also provided a venue for public-private dialogue and allowed participants to exchange views on challenges and pressing reforms in a constructive way. Strategic conclusions have been drafted.

All activities under this sub-component have been completed.

Sub-component 1.2: Investor Protection and Restrictions Analysis (OECD)


Following the OECD “Analysis of Jordan’s investment regime with a focus on restrictions to foreign direct investment” discussed at the Workshop on the revision of the regulation on Non-Jordanian Investors in May 2015, and subsequent exchanges and policy advice, the Jordanian authorities proceeded engaged in a revision of the FDI regulation, which takes on board recommendations made by the OECD. According to MoPIC, the Regulation has recently been adopted.

Subsequently, the OECD organized, with the support of USAID, a three-day capacity-building workshop on “The Legal Framework for Investment in Jordan: Modernizing International Investment Agreements and Investor-State Dispute Settlement Mechanisms” in May 2016. The workshop aimed at building capacities of a targeted group of Jordanian policy makers on Jordan’s international investment law, investment treaties,

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Investor-State Dispute Settlement (ISDS), including prevention and management, and arbitration, with a view to improving the country’s investment treaty policy and support Jordan’s efforts to reinforce its attractiveness as an investment destination. A background paper was prepared for the workshop. It contains a descriptive section on Jordan’s IIAs and ISDS and gives an overview of the provisions commonly found in Jordan’s treaties. It also analyses areas in which Jordan might want to consider whether current arrangements meet its interests and identifies policy options for improving the country’s IIA policy. It served as a reference document during the workshop and will inform future efforts to adjust Jordan’s IIAs.

Next steps of OECD support: Revision of the Jordan’s ranking in the OECD FDI Regulatory Restrictiveness Index based on the recently

adopted regulation on Non-Jordanian Investors (fall 2016). Preparation of a note on the role of arbitration and investment dispute settlement (fall 2016). Organization of a workshop on arbitration and investment dispute settlement (end 2016).

Sub-component 1.3: A Cost-Benefit Analysis of the Incentives Regime (WB)


The cost-benefit analysis of incentives and related activities are in the final stages. Collection of data and information on tax expenditure and cost of incentives from tax and customs authorities has proved to be a hard task, which stresses the need for a better incentive management system. The local survey firm has started implementing the Investor Motivation Survey (IMS) and is expected to complete this by end of July.

The Government continue to grant and remove incentives without proper planning or consultation. This can cause market distortion and undermine the private sector ability to manage expectations. The Government committed to revisit/improve such regulations in the medium-term once the JCIP activities are completed to incorporate main recommendations on investment incentives.

Next steps of WB support: Phase I: Finalize field survey implementation Phase II: Analysis and reporting

Sub-component 1.4: Assessment of policy and legal barriers to the Renewable Energy/Energy Efficiency sector (OECD)


The OECD has also drafted the “Clean Energy Investment Policy Review of Jordan” based on consultations with various stakeholders. It aims at providing policy recommendations for improving investment framework for private investment in renewable-energy based electricity generation, with a focus on coherence of investment incentives for renewable energy, grid access, enforceability in the procurement process and donor coordination. The Review has been presented at the Investment Committee of the OECD in March 2016 for peer review and comments from a wide range of peer countries, as well as submitted to the OECD Working Party on Climate, Investment and Development (WPCID).

In addition, the OECD organized a mission to Amman to present the draft to key representatives from Jordanian ministries, donor agencies and representatives of the private sector (May 2016), discuss the main findings and their implementation.

Next steps of OECD support: Finalization of the draft Review with inclusion of comments received during the mission in May and

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dissemination to stakeholders for final review (June-July 2016). Publication of the Review (July-Sept 2016). Official launch of the Review during a Conference in Amman or at COP22 in Morocco (Fall 2016), with

the participation from key Jordanian officials and representatives from donor agencies, business associations and private investors in renewable energy in Jordan and MENA.

Component 2: Support to strengthen the investment service provision and capacitiesThe component focuses on strengthening the capacity to provide investment facilitation, investor protection, tracking and aftercare services building on experiences from the region and other countries. The component proposes the streamlining of investment procedures for the entry of FDI into the host country through a strengthened one-stop shop. The investment authorities will be provided with recommendations to improve internal procedures and regulations, streamlining the decision making process, and defining efficient prospective and established investors’ services. The services include, inter alia, promotion, one-stop shop, aftercare services, market research, and policy advocacy. Based on the recommendations, Action Plans will provide an exact roadmap to improve the promotion capacities and services to investors. The project will not be procuring the IT system.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 565,000Sub-component 2.1: Simplification of the investor entry (WB)


JIC investment window was inaugurated last year with the aim of providing exceptional services to investors. The Investment window was properly built and equipped but lacked skilled staff and proper coordination with other agencies offering business registration, licensing, and permits. Moreover, relevant agencies lack proper business and standards that can allow for efficient exchange of data to provide quick and transparent services to investors.

Phase I of the JIC Investment Window support identified many issues affected by current setup and produced practical recommendations for improvement. JIC implemented some of these recommendations (such as introduction of case managers) but many other recommendations were not implemented yet due to lack of resources or sometimes commitment. In practice, JIC is still struggling between the old organizational habits and the new innovative approach Phase I of the project suggested. The procedures are still in need of optimization, standardization, and automation. Furthermore, government’s authorized representatives still lack proper authorization to provide the full service inside JIC (as the law stated) and this is due to the complexity of the process and the need to go through multiple committees in some occasions. These services or some of the relevant procedures will have to be transferred to another location outside of JIC before a decision can be reached.

There is an overall consensus among both the business community and the government that the existing registration and licensing proceedings do not facilitate the needs of neither of the parties. The following areas are being addressed by this component:

Simplification of the registration and licensing proceedings Elimination of redundant procedures Decrease the cost to register and license a business and have all fees well documented and publically

available and should be subject to clear rules, rather than individual decisions Nation-wide protection of a name of the company Improve access to information Increased insight in the registered information

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Raising the awareness of the public on the benefits of registration to support legalization of the informal economy

Common and unique identifier of companies

Licensing setup: By imposing a license, the government expects to accomplish a specific objective. Unfortunately, in the Jordanian case the licenses are overused and misused as a tool even in situations where they are completely unnecessary. Although good reasons to justify such regulation can always be identified (e.g. market failure, public interest, dependencies etc.), this practice led to overregulation, which eventually turned into a huge burden on the economy.

The team analyzed the process for the current situation and provided recommendations for the following main areas:

1. The vision for the Jordanian business registration and licensing regime; as the major objective of the reform is to design and create a single regime on national level for investment assessment and legal entity registration, licensing and operation, and is applicable to the whole territory of Jordan. The efforts of streamlining the registration and licensing regime shall bring equal benefits for all investors

2. The vision for service provisioning, which focuses on :a. Designing and the creating a national interoperability platform that will offer support of all cross-

institutional data exchangeb. Creating a national point of single contact platform acting as a front end for the provisioning of

service by all governmental bodies.c. Implementing the One Stop Shop concept in all segments of the investment and business

lifecycle including pre-registration, registration, and post registration phases.

3. Recommendations for specific procedures, which include the OSS for legal entity registration and information update, procedures with a focus on a business activity type or a location, and other legal entity related procedures (Investor care, exemptions, etc.)

4. Key short term areas for improvement of the Jordanian business climate.

Next steps of WB support:

JIC will need to complete the following activities:

1. Deployment of the eInvestment Window live: The eInvestment Window was delivered as an output of the OSS Phase I Project. It is currently in final testing before it is launched live. The following is the list of the pending activities:

1. Finalization of technical pre-conditions with JIC/MOICT 2. Infrastructure: still pending VPN connection to the MoICT infrastructure, necessary to deploy the

portal on the MoICT3. Finalization of testing and testing output4. Changes/corrections based on testing output5. Internal capacity building with focus on case managers6. Approval of content

2. List of pending activities that should be completed immediately.

1. Recruitment of staff and appointment of key staff on missing positions – JIC is in process of hiring 193

of staff especially for key positions that are currently vacant in the organization.2. Capacity strengthening – given the turnover of previously trained staff (case managers) the

period of testing of the eInvestment Window should be used for training of new recruits and present staff. Another important aspect is the continuity of the trained staff that should be dedicated to the post for a longer period of time.

3. Adoption of the new business model for JIC with focus on use of the portal as the single entry point for new and recurring investors, pre-approval of projects, promotion, orchestration and after-care of investors.

WB activities:

Streamlining of the licensing regime: The licensing regime will be streamlined with the following focus:

1. Detachment of the requirements for licensing from the business entry (registration) process and its attachment to the start of operations of the business (vocational licenses for instance should as a principle be issued by default in the process of registration without a separate list of requirements, while the information needed by the municipalities will be supplied through the standardized form for registration). This will result in a streamlined simplified business entry with reduction of the steps needed for registration.

2. Supply of the necessary information related to occupancy permits through the process of obtaining construction permits, zoning approvals etc., and its detachment from the business entry process.

3. Removal of all unnecessary sectorial licenses based on their validity, consistency etc.

Business Registration

The development and implementation for Company Registration will provide the practical mechanism need for implementation of the envisaged streamlining of the business registration and business licensing regime in Jordan. Part of the activities will be focused on standardization, data conversion, and clean-up, part relate to amendments of the existing legislative framework and a part that relates to implementation of the necessary system components and upgrade of existing ones. The activities include:

1. Data definition and data reconciliation between stakeholders involved in the process2. Development and maintenance of data vocabularies3. Standardized form definition and adoption.4. ISIC Rev.4 adoption and migration5. Impact assessment of introduction of ISIC Rev.4 beyond stakeholders – taxes, incentives, customs, line

ministries. 6. Agreement on statuses of legal entities post-conversion and status maintenance mechanisms

(active/inactive/dormant – maintenance through CCD/Tax, etc.)7. Promulgation and adoption of the Standardized form 8. Agreement on recognition of electronic transactions between the stakeholders and removal of requests

for paper certificates 9. Agreement on payment of cumulative fee for registration10. Name registration and reservation

Sub-component 2.2: Strengthened services to investors (WB)


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The project provided JIC with reports detailing needed reforms to activate the investment promotion directorate. The project delivered investment promotion processes, capacity-building activities, and supported JIC in one main investment promotion event in China with promotion plans and needed materials.

As described earlier, JIC slow progress triggered more analysis to understand issues hindering the implementation process. The team realized that JIC needed more internal support including clarifying department mandate, job description (including relevant qualifications), and implementing an efficient structure with clear roles and responsibilities.

The project has completed a new reports addressing the following activities:

A. The structure for the Investment Promotion Directorate of JICB. An explanation of the different functions and activities to be delivered by each proposed section of the

Investment Promotion Directorate of JIC.C. A brief and basic guide to understanding lead generation.D. A proposed system for the handling of Investor inquiries.E. A proposed set of indicators to be tracked for monitoring and evaluation purposes.F. A brief guideline document on how to update the investment promotion related content from the JIC

portal.G. A set of activities the Investment Promotion Directorate of JIC can implement as soon as a basic team in

put in place.

Next Steps of WB support:

Support JIC to implement promotional content management system. Supporting JIC in providing training to diplomats before they start their assignment. On-going support to JIC on the branding so that it can be finalized as soon as possible and applied to the

new portal. Support JIC in selecting qualified staff. Support JIC in its plans to outsource some function (such as lead generation)

Sub-component 2.3: Building the RE/EE capacities (WB)


During a stakeholder workshop on the progress with energy efficiency standards and labeling that included Ministry of Energy and Mineral Resources, Ministry of Finance, Ministry of Industry and Trade, Jordan Customs Department and the Jordan Standards and Metrology Organization, it was decided that JSMO will coordinate with the Ministry of Energy and Mineral Resources to work on guidance for consumers and importers on the meaning of energy efficiency labels and their implementation. They will also work together to raise awareness through a communications plan. One of the main issues of standards and labeling was the confusion customs exemptions on energy efficient products were causing. The different ministries have decided to work on reviewing the exemptions and leverage World Bank expertise on good practice financial mechanisms for such measures.

The team also held a workshop on EU directives concerning water pumps. It was understood that the majority of water pumps under the scope of the EU directive are from the EU markets with relatively good efficiency. The manufacturers and importers of pumps were supportive of standards on such water pumps as it would help their business and ensure only high quality pumps enter the market. Preliminary estimates showed that

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monetary savings to the government on energy savings in the long term would amount to ~ 2.9 million JOD / year (or US$ 4 million/ year) with little cost to the consumer. What is needed now is additional data from manufacturers to develop a more concrete case for implementing eco-design requirements for pumps.

The WB team and National Energy Research Center of Jordan conducted a thorough 2 day training program for around 30 JSMO customs inspections personnel on how to implement EU directives on 9 appliances. The training was very effective for the border inspectors. The inspectors mentioned that though the training was effective, their top remaining needs for capacity building include:

1. Guidelines of how to deal with different cases in a simple manner (10)2. Hierarchical process (9)3. Practical approaches (8)4. Training at the borders (4)5. Excel / software (4)

As standards and labels directly affect manufacturers, the team held a dialogue with the main manufacturers and importers of the appliances affected by the standards and labeling, and who subsequently need to be made aware of the EU process of updating such standards. The main concern was primarily on the anti-competitive nature of the customs exemptions and their need for revisions. The workshop was valuable for participants and had generally a constructive atmosphere on rescaling of the label, making a long term plan (roadmap), and developments on testing labs. They had not been aware of changes in EU directives and were appreciative of the update.

The team, in coordination with EU office in Amman, have established good communication channel between JSMO and EU office in Brussels to help JSMO in following and adopting new EU regulations related to energy efficiency.

Next Steps of WB support:

Provide detailed guidance to JSMO on the transposition of EU directives to Jordanian legislations Organizing an EU workshop in Brussels on improved coordination between JSMO and EU institutions on

updating eco-design and energy efficiency labeling. Assistance to JSMO and Government of Jordan on good practices in financial mechanisms for energy

efficiency standards and labeling. Assist JSMO in improving the case for energy efficiency standards on water pumps by collecting more

information from manufacturers and distributors. Develop guidelines for JSMO customs inspection staff on how to interpret EU directives on the eight

products covered.

Component 3: Reform implementation support (WB) and coordination (WB/OECD)This component will support reform implementation through a local staff, a project steering group, the setting up of a public-private dialogue mechanism and ensure monitoring and evaluation of project activities.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 420,000Status of Implementation:

Implementation is supported by a WBG team based in Amman, MENA region, and WB HQ, ensuring close coordination and timely response to GOJ needs, as witnessed in the ability to accelerate activities when needed.

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OECD and WB teams continue to deliver planned reforms and are working with clients to assess implementation difficulties to provide needed support. The teams may propose an extension to the support given to Government of Jordan in areas covered by this project upon the full implementation of planned reforms.

Next activities: Third project steering group in fall 2016 Donors’ coordination meetings to be organized by MoPIC Continue leading the project activities and providing support to client to facilitate proper reform

implementation. Public-private dialogue to discuss the reformed services and related priorities. M&E: monitor the result generated so far and compare it to plans.


(US$)

(x)


(y)

Total (US$)


OECD: 630,000WB: 1,385,000

OECD: 630,000WB: 1,385,000


OECD: 341,191 WB: 1,385,000

OECD: 341,191 WB: 1,385,000

Actual Amount Disbursed (c): OECD: 440,185WB: 727,543

OECD: 440,185WB: 727,543

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$) Year Jan-June Jul-Dec Total by Year End2016 N/A WB: 200,000

OECD: 100,000 WB: 200,000

OECD: 100,0002017 WB: 111,109

OECD: 89,815N/A WB: 111,109

OECD: 89,815


OECD: 42,588WB: 55,000

OECD: 3,412WB: 0

OECD: 46,000 WB: 55,000

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Project Development Objective (PDO) : The project aims to support the Government of Jordan in strengthening the reform implementation capacity of selected institutions responsible for investment policy, promotion and services.


MeasureBaseline


Frequency

Data Source/

Methodology

Responsibility for

Data Collection


definition etc.)Aug

2014 – Jul 2015

(A)

Aug 2015 – Jul 2016

(A)

Aug 2016 – Aug 2017

(F)

YR 4 YR5

Indicator One: Adoption of a strategic plan to implement a new investment framework;

Binary No No Yes One time ISAs

Indicator Two: Endorsement of the Action Plan to improve services to investors;

Binary No No Yes One time ISAs

Indicator Three: Endorsement of an Action Plan to improve services to investors in the RE/EE sector.

Binary No No No Yes One time ISAs

Indicator Four: Regular meetings of a Public Private Dialogue (PPD) group on Competitiveness and Investment.

Binary No No Yes Yes Yearly ISAs

PPD during the Workshop on

“Boosting Jordan Competitiveness: Modernizing the

Legal Framework for Investment”

(large participation of the private

sector)


Intermediate Result (Component One): Support to strengthen the investment rules and regulationsIntermediate Result indicator One: Submission of recommendations to ensure coherence of international investment obligations for endorsement

Binary No No Yes One timeProject

Reports and workshops

ISAsDone. Policy advice

and capacity building on IIAs

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Intermediate Result indicator Two: Endorsement of the Cost Benefit Analysis of the Incentives Regime and related reform recommendations

Binary No No One timeProject Reports

ISAs

Intermediate Result indicator Three: Participants to the technical workshops on drafting of the bylaw on foreign investments

Binary No Yes Yes One timeProject

Report and workshop

ISAs

Done. Regulation adopted.

Substantive legal analysis, workshop

and follow-up advisory services

Intermediate Result indicator Four: Submission of recommendations on how to strengthen investment framework in EE/RE sector for endorsement.

Binary No No Yes One timeProject

Report and workshops

ISAs

Partially done. The OECD Jordan Clean Energy Investment

Policy Review being finalized

based on comments received.

Intermediate Result (Component Two): Support to strengthen the investment service provision and capacities

Intermediate Result indicator One: Adoption of an Action Plan to improve investor services.

Binary No Yes Yes One timeProject report

ISAs

Intermediate Result indicator Two: Number of study tours to OECD and MENA investment promotion agencies.

Number No n/a 3 n/a In YR 2Project report

ISAs

Intermediate Result indicator Three: Number of participants in workshops on investment promotion functions and tools.

Number No n/a 20 10 YearlyProject report

ISAs

Intermediate Result indicator Four: Adoption of an Action Plan to improve services to investors in the RE/EE sector.

Binary No n/a Yes One timeProject report

ISAs

Intermediate Result (Component Three): Reform Implementation Support and CoordinationIntermediate Result indicator One: Number of PPD workshop participants (public and private sector) to discuss competitiveness and investment.

Number No n/a 30 40 Yearly Project Report ISAs

Strong participation of private sector

representatives in OECD workshops.

Intermediate Result indicator Two: Monitoring and evaluation

Binary No n/a Yes Yes Yearly Project Report

ISAs Evaluation questionnaires for

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reports prepared and published regularly on schedule.

the OECD technical workshop

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Support to Building Active Labor Market Program


Activity Name: Support to Building Active Labor Market Program (ALMP) (P145241)Country Name: Jordan Name of Implementation Support Agency(ies): World

BankName of ISA Project Leader: Setareh Razmara Email of ISA Project Leader: [email protected] Entity: Employment, Technical and Vocational Education and Training (E-TVET) Fund


Bashar Soboh (PMU Director) [email protected]

Ghassan Abuyaghi, Director General E-TVET Fund [email protected])

Total Amount Approved by the Transition Fund (US$): 4.75 million USD

Additional Funds Leveraged and Source(s), if any (US$): Enter co-financing amounts and sources of these funds








Investing in Sustainable GrowthInvesting in Sustainable GrowthChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project development objective is to increase access to career guidance, job search, and on the job training among targeted youth.






Since the last reporting period of January 2016, an implementation support mission for the project was fielded in May-2016. As shown by the findings of the mission, the overall progress between the project’s components continues to be mixed and uneven. While the Career Counseling Program (Component 1) and Market Information and Job Search Program (Component 2) are almost completed, the implementation of Job Readiness and Placement Program (JRRP) (Component 3 - representing more than 60 percent of the grant proceeds) is facing major bottlenecks leading to significant delays. Indeed, while the JRRP was finally


launched and about 3,363 youth out of the 5,000 who registered were found eligible, and 610 beneficiaries completed the employability skills training, placement has yet to happen for any of the beneficiaries nearly seven months since the launch of the program. This delay in the placement stems mostly from the: (i) introduction by the E-TVET Fund of changes in the design of the Voucher programs that creates disincentives for firms to hire and provide on the job training; (ii) delays in the signing of the contracts with the Chambers of Commerce and Industry in the three selected Governorates (Zarqa, Irbid, and Ma’an) which are the main providers for the placement; and (iii) delays in the recruitment of the Placement Officer. In addition, the recruitment of a Financial Advisor, which will be critical during the payment phase of the JRRP, has yet to be initiated. Finally, difficult working relationships between the E-TVET Fund and the PMU are negatively affecting the project’s implementation and contributing to the delays described above. As a result, the Financial Officer of the PMU has recently resigned and there is a risk that the remaining PMU staff may follow if the working relationship and environment do not improve. This would be a major setback and would seriously hinder the project’s performance at this late stage into implementation.

To address all these major issues and get the project back on track towards achieving its development objectives, the Bank has sent a letter to the Government. However, if these bottlenecks are not addressed before September 2016, the PDO and IP would be downgraded to “Moderately Unsatisfactory” and this will signal a strong unlikelihood of achieving the PDO with less than eleven months remaining in the implementation before the closing of the project in June 2017. The Bank team will continue to follow up with the Project Management Unit on the implementation of the activities agreed upon in the implementation plan as well as provide technical support to the PMU team.




Component 1: School to Work Program (STW) – Finalize the International Youth Foundation (IYF) assessment and report of the career counseling program and close the contract

ETVET/PMU 8/15/2016

Component 1: School to Work Program (STW) – Completion of refurbishment of KAFD career centers and MOL Employment Directorates

ETVET/PMU 8/15/2016

Component 2: Labor Market Information and Job Search Program – Complete fine-tuning of ELE system as well as fix all remaining technical issues and close the outstanding contract for the ELE service provider

KAFD 8/30/2016

Component 3: Job Readiness and Placement Program – Finalize and award contracts for Placement Firms/Chambers of Commerce and Industry

ETVET/PMU 8/15/2016

Component 3: Job Readiness and Placement Program (JRPP) – Amend the contract of Dale Carnegie (the employability skills training firm) to extend the scope and duration of the contract

ETVET/PMU 8/15/2016

Component 3: Job Readiness and Placement Program – Complete the last batches of beneficiaries of the employability skills

ETVET/PMU 8/30/2016

trainingComponent 3: Start placement of beneficiaries into firms ETVET/PMU 8/30/2016

Component 4: Complete the hiring of a placement officer and a financial advisor

ETVET/PMU 9/1/2016

C. Implementation Status of Components 21

Component 1: School to Work Program (STW)H.

To date, four (4) out of the five (5) activities planned have been completed (i) the review of the career guidance manual and training provider’s capacity and (ii) the implementation of career guidance and counseling services, (iii) a needs assessment to inform the refurbishment needs of KAFD offices and Employment offices, and (iv) the communications strategy for this component have been completed, while (v) the procurement for refurbishment is currently underway and expected to be completed by mid-August2016.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 0.73 million Sub-component 1.1: Career Counseling Services & Job Fairs

Status of Implementation: The International Youth Foundation (IYF) was hired competitively on April 14, 2015 for the implementation of the career counseling. They have completed career counseling, mostly through Open Days in universities, to 10,432 beneficiaries: 10,290 received career counseling in KFAD/universities (Zarka 46 %, Irbid 10%, Maan 6%, Tafila 10%, Mafraq 28%), 92 in MOL employment offices (88% in Irid and 12% in Zarqa), and 50 in MOL’s Community based organizations (CBOs) (50% in Mafraq and 50% in Zarqa). The 1.5-hour career counseling sessions (Open day forums) focused on Learning Module 1, “know yourself,” based on psychometric testing and evaluation kits aiming at improving participants’ understanding of potential career paths. In addition to these open days, IYF provided to 600 beneficiaries with career counseling sessions on Learning Modules 2 and 3, labor market information and career path preparation. The female participation for all career counseling sessions exceeded the 50% target with an average of 72% for overall attendance as measured in Irbid, Maan, and Zarqa. An assessment report of the activity has been drafted and will be finalized by the end of July-2016 by IYF. Sub-component 1.2: Needs assessment report for targeted universities and employment offices

Status of Implementation: The Needs Assessment Report for the targeted universities and employment offices was completed and a mapping matrix and a detailed specification of needs and budget was prepared. Based on this mapping, the refurbishment activity was launched.Sub-component 1.3: Upgrading career guidance offices at universities and employment offices of the MOL in the targeted governorates including Irbid, Zarka, Maan, Mafraq, and Tafila.

Status of Implementation: The refurbishment the MOL employment directorates and KAFD offices has been procured and installation of IT-equipment took place on June 20 th-23rd at all locations (MoL and KAFD-centers). The delivery of deployment of furniture and office supplies is expected to be finalized by the end of July 2016. Sub-component 1.4: Communication strategy and campaign for Irbid, Zarka, Maan, Mafraq, and Tafila.Status of Implementation: The communication has been bundled for all three components of the project.

21 Include for each component: (i) qualitative achievements, (ii) key milestones (current or future), (iii) any significant changes in project components or budget reallocations, and as applicable (i) reasons for implementation delays, (ii) implementation challenges, (iii) funding status, and (iv) other relevant information.

The communication strategy for Component 1 was key in generating participation of potential beneficiaries. However, given the expiration of INSIGHT (the communication firm) contract, a no-cost extension is being prepared to enable the firm to support the launching of the JRPP/the placement into firms.

Component 2: Market Information and Job Search Program (MIJS)The ELE-Portal was launched Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 0.68 million Sub-component 2.1: Customization of the Electronic Labor Exchange (ELE) Portal and job-matching engine were completed and the Portal was launched in May-2016, followed by an extensive awareness and marketing campaign. To date, more than 12,500 interested parties (students, job seekers, employers, entrepreneurs) have visited/used the Portal. Except for the fine-tuning and fixing of some technical glitches in the ELE and the SMS package- which started in May 2016, all other activities under this component have been completed and their contracts closed. Status of Implementation: The customization of the Electronic Labor Exchange (ELE) Portal and job-matching engine has well progressed and led to the launch of the Portal. All the infrastructure and content of the Portal were delivered by the respective contracted firms. Preliminary testing for functionality and user-friendliness were completed and subsequently, workshops and training of trainers were delivered to more than 80 staff from MOL and KAFD.Sub-component 2.2: Communication strategy and campaign for the whole country

Status of Implementation: As explained above, the communication has been bundled for all three components of the project. Given the expiration of INSIGHT’s (the communication firm) contract, a no-cost extension is being prepared to enable the firm to support the launching of the JRPP.Previous Rating: Satisfactory Current Rating: Moderately

SatisfactoryCost (US$): 2.87 million

Component 3: Job Readiness and Placement Program (JRPP) While the project was restructured to extend the closing date for 18 months in order to enable the completion of the several mandatory phases of the JRPP and reduced the length of the on-the-job training shortened from 12 to 9 months, implementation has seen major delays due to procurement bottlenecks. An MIS was developed and delivered. The registration of beneficiaries was completed in March 2016 and about 3,363 youth, out of the 5,000 who registered, were found eligible, and 610 beneficiaries completed the employability skills training (of which more than 70% were female). However, to date, none of the beneficiaries have been placed into the on-the-job training (voucher component) of the JRRPt. The recruitment of the Chambers of Commerce and Industry/the firms for the Voucher Placement, the Placement Officer, and a Financial Advisor to assist with the payment of the social security contribution and the voucher processing, are substantially delayed. During the supervision mission, it was agreed to expedite the processing of these procurement activities to ensure that the project will reach its development objectives by the closing date (June 30, 2017).

Sub-component 3.1: Employers’ needs assessment

Status of Implementation: With the goal to inform the design and content of the employability training, as well as the job voucher program, an Employers’ Needs Assessment was completed and delivered on September 2, 2015. This assessment provided information on the needs of the demand side of the labor market across a variety of sectors in the three targeted governorates (Irbid, Zarqa, and Ma’an) through face-to-face interviews with a sample of firms from these governorates.

Sub-component 3.2: Implementation of skills training and on-the-job training with wage subsidy vouchers

Status of Implementation: In April 2016, the employability skills training was launched by Del Carnegie (the training firm) in all three governorates. To date, a total of 610 beneficiaries have received the training (316 in Irbid, 54 in Maan, and 240 Zarqa) with an average female participation of more than 70%. The employability/soft-skills training is plannedto be completed by mid-September-2016. In order for the training firm to assist with the placement and matching of beneficiaries into the OJT/the firms, it has been agreed that their contract will be extended in scope and time.

The MIS and registration has been finalized since May-2016 and is being updated as the project progresses.

Sub-component 3.3: Communication Strategy

Status of Implementation: As explained above, the communication has been bundled for all three components of the project. However, given the expiration of INSIGHT’s (the communication firm) contract, a no-cost extension is being prepared to enable the firm to support the launching of the JRPP.

D. Disbursements of Transition Fund Funds for Direct Project Activities22 Country-Execution

(US$)

(x)

Direct Cost23 for ISA-Execution (US$)

(y)

Total (US$)


4,750,000 0 4,750,000


4,750,000 0 4,750,000


1,551,860.741 0 1,551,860.74

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)24

Year Jan-June Jul-Dec Total by Year End20132014 US$500,000 US$500,0002015 US$200,000 US$580,000 US$1,280,0002016 US$1,220,000 US$1,500,000 US$4,000,0002017 US$750,000 -- US$4,750,00020182019


250,000 0 250,000

22 Funds for direct project activities should include approved allocations for both country- and ISA-executed activities.23 ISA direct costs are those costs related to the ISA’s direct provision of technical assistance within the project. Please also refer to Paragraph 47 of the Operations Manual at (http://www.menatransitionfund.org/content/apply-funding) 24 Enter actual disbursements for years past.

http://www.menatransitionfund.org/content/apply-funding

G. Results Framework and MonitoringUsing the results framework provided in the proposal submitted to the Steering Committee for approval, please update the cumulative target values section of the results framework as appropriate.

The ELE Portal has not been launched yet and the Job Readiness and Placement Program has not started yet, hence the data to inform indicator measure result on these two activities is not yet available

Project Development Objective (PDO): The project development objective is to increase access to career guidance, job search, and on the job training among targeted youth.


Unit of Measure

Baseline (A) Oct2013-Dec. 2014

Cumulative Target Values** FrequencyData Source/

MethodologyResponsibility


Jan 2015 – Dec. 2015(A)

Jan. 2016-Dec 2016(F)

January 2017 –June 2017 (F)

Indicator One: Total Direct project beneficiaries:

(a) Total; and(b) Of which are

female

Number

Percentage

0 10,432

72

13,687

50

13,700

50

Yearly Administrative data

Online database

PMU in MOL with collaboration of KAFD/ETVET-Fund and SSC

Sum of beneficiaries of school to work program and revamped ELE. The job readiness and placement program beneficiaries are not yet included because the OJT has not yet started

Indicator Two: Beneficiaries of career

0 Yearly Administrative Data

PMU/MOL/KAFD

Beneficiaries = students in the

guidance and counseling

(a) Total(b) Of which are

female

Number

Percentage

10,432

72

9,077 50 10, 000

50

final years of community college & university and unemployed youth in employment offices of MOL. The total number of beneficiaries was revised down based on duplications which were found when cleaning the final attendees list.

Indicator Three: Beneficiaries of revamped Electronic Labor Exchange


female

Number

Percentage

0

00

00

4,000

50

2,500

50

Yearly Online database

PMU/MOL/KAFD

Beneficiaries = those who accessed the revamped ELE

Indicator Four: Beneficiaries of Job Readiness and Placement Program


female

Number

Percentage

0 00

00

1,200

50

1,200

50

Yearly Administrative data

PMU with collaboration of MOL/KAFD/ETVET-Fund and SSC

Beneficiaries = at least one year unemployed graduate youth (19-25 years) from community college and university

Indicator Five: Beneficiaries of Labor Market Programs 25

(a) Total(b) Of which female

Number

Percentage

0 5,200

50

10,432

72

13,700 Yearly Administrative data

PMU Same as the total beneficiaries of the project.


Intermediate Result (Component One): School to Work Program (STW)

Intermediate Result indicator One: Refurbished career counseling centers in universities and employment offices

Number 0 0 5 10 Yearly Administrative data

PMU/MOL/KAFD/Universities

Career counseling centers in selected universities, and employment offices

Intermediate Result indicator Two: Trained counselors in universities and employment offices

Number 0 27 20 20 Yearly MOL /Universities database

PMU/MOL/KAFD/Universities

Counselors in universities and employment offices


System for collecting feedback from beneficiaries in place

Yes/No NO Yes Yes Yes End of project

Beneficiaries of career counseling

PMU/MOL Based on the beneficiary review.

Intermediate Result (Component Two): Market Information and Job Search Program (Electronic Labor Exchanges)

Intermediate Result indicator One: Staff


PMU Staff in universities and

25 Total beneficiaries of Labor Market Programs are limited to the project and equal to total direct project beneficiaries.

trained on revamped ELE employment offices.

Intermediate Result indicator Second: number of awareness campaigns on revamped ELE


PMU Awareness campaigns to promote use of revamped ELE

Intermediate Result (Component Three): Job Readiness and Placement Programs

Intermediate Result indicator One: Beneficiaries to complete skills training


PMU ETVET Beneficiaries: unemployed university or community college graduates who have been unemployed for a year or more

Intermediate Result indicator Two:

Beneficiaries satisfied with on the job training program

Percent 0 00 50 50 Baseline and Final

Impact evaluation

PMU/ETVET-Fund

Based on impact evaluation of the voucher program (baseline and final)


Enhancing Governance and Strengthening the Regulatory & Institutional Framework for MSME Development

A. Basic Project InformationActivity Name: Enhancing Governance and Strengthening the Regulatory and Institutional Framework for MSME Development Transition Fund

Country Name: The Hashemite Kingdom of Jordan Name of Implementation Support Agency(ies):

The World Bank in partnership with the Arab Fund for Economic and Social Development (AFESD)

Name of ISA Project Leader: Ghada Ismail (incoming TTL as of December 2015)

Email of ISA Project Leader: [email protected]

Recipient Entity: The Central Bank of Jordan Name and Email Address of Recipient Entity: Mohamad Amaireh [email protected]



Total Amount Disbursed (Direct and Indirect in US$): 1.2 MILLION


12/5/2013


3/15/2014


8/31/2018



Secondary Pillar(s): Enhancing Economic GovernanceInclusive Development and Job CreationChoose an item.


Project Development Objective: The project development objective (PDO) is to enhance financial services and products and to strengthen financial protection mechanism for MSMEs, while enhancing governance.


Satisfactory


Brief Summary of Project Implementation Status: Total disbursements reached US$ 1.2 million representing 40% percent of the grant amount of US$ 3million.- Very good progress was made under the first project component on credit guarantees implemented by the Jordan Loan Guarantee Corporation (JLGC), and component three on Supporting the development of the institutional framework for microfinance and non-bank financial institutions (NBFIs) supervision. Component two is lagging behind despite progress made in providing Technical assistance to CBJ for establishing the consumer protection unit. This included (i) developing a proposal for the setup, responsibilities and composition of the new consumer protection department, its cooperation with other units of CBJ and other stakeholders, as well as key requirements for the manager of the new department; (ii) assessing the legal and regulatory framework for protecting consumers of the services provided by all types of institutions regulated by the CBJ, including banks, nonbanks and payment service providers.

Actions to be Taken Responsible Expected Date of


Party Delivery




C. Implementation Status of Components Component 1: Strengthening Credit Guarantees Schemes This component aims at developing the Jordan Loan Guarantee Corporation's (JLGC) SME loan guarantee products, and designing new ones that are tailored to SMEs, which are based on proper risk analysis, addressing moral hazard and adverse selection, with the objective of enhancing JLGC operations development and sustainability. JLGC support mainly includes the following:


Current Rating: Satisfactory Cost (US$): 1 million

Sub-component 1.1: Organization and Human Resources.Status of Implementation: There were significant gaps identified in order for JLGC to gain the required competencies, and enhance its chances for the successful implementation of the change initiatives. In this respect, JLGC has recruited two resident advisors, one for risk management (to implement and manage the risk framework transformation and reform the payment rules), and a second for product and business development (to help launch new products and revamp the existing ones, as well as oversee execution of strategic enablers). These resident advisors are currently training JLGC staff, and improving their technical know-how for changes to be sustained. The risk management strategy developed by the resident advisor was already endorsed by the Board and is currently being implemented. The charter for risk management and the annual action plan for risk management policy implementation was also developed and will be submitted for board approval by late July. JLGC is currently working on recruiting a new business development advisor Sub-component 1.2: Analytics and systems.Status of Implementation: JLGC has already procured and fully implemented an Enterprise Resource Planning (ERP) system; and enhanced their data warehousing, reporting and analytics generating systems. They have improved their Management Information System (MIS) mechanism, and enhanced their processes by establishing an automated application system, which their business partners can access. JLGC has acquired hardware and software to support all the growth initiatives. Sub-component 1.3: Knowledge.Status of Implementation: JLGC will significantly benefit by learning from best practice guarantee schemes around the world. JLGC team has already participated in study tours in Malaysia, Morocco, Lebanon, and Korea. Furthermore, JLGC team participated at an SME Development conference in Egypt and utilized the opportunity to visit the Egyptian Credit Guarantee Company as well. JLGC is currently coordinating a study tour to Turkey to learn from the Turkish credit guarantee (KGF) particular experience in portfolio guarantees. The visit is expected to be conducted during the second half of the year 2016 pending improvement in security situation.Sub-component 1.4: Capacity building for banks.Status of Implementation: There is a need to build the frontline people’s capacity at banks through training, in order to allow them to better understand, bundle and sell the products and schemes that would be launched by JLGC. In this respect, JLGC has been able to improve its communication and tools with banks as a result of the enhanced processes and systems developed. In addition, an interactive workshop for banks was held at the Dead Sea in May 2015, during which the feedback on issues relating to lending and challenges from engaging with JLGC was obtained from the different business partners. JLGC also contributed to the Certified SME Officer program undertaken by the Institute of Banking Studies, which is focused on developing capacity in order to promote lending to MSMEs.

Component 2: Enhancing the Consumer Protection Mechanism This component aims at providing a supervisory and complaint resolution structure to support a reliable and strong consumer protection system, whilst promoting financial literacy in Jordan. This component is divided into three sub-components:Previous Rating: Moderately Satisfactory


Cost (US$): 1.2 million

Sub-component 2.1: Establishment of a Consumer Protection Unit at CBJ

Status of Implementation: Technical assistance has been provided to CBJ for establishing the unit. This included (i) developing a proposal for the setup, responsibilities and composition of the new consumer protection department, its cooperation with other units of CBJ and other stakeholders, as well as key requirements for the manager of the new department; (ii) assessing the legal and regulatory framework for protecting consumers of the services provided by all types of institutions regulated by the CBJ, including banks, nonbanks and payment service providers. Next steps include hiring head of consumer protection unit implementing the business plan to fully operationalize the consumer protection unit.

Sub-component 2.2: Two study tours on responsible finance and financial consumer protection (after the establishment of CPU)

Status of Implementation: Not yet.one study tour is expected this FY.Sub-component 2.3: Building the capacity and training of Consumer Protection Unit staffStatus of Implementation: This sub-component focuses on the capacity building of the consumer protection division based on the business plan aforementioned, including financing furniture and IT equipment (both software and hardware). More importantly, it will help CBJ to establish an appropriate on-site and off-site monitoring framework suitable to the Jordanian context, respective systems and procedures; create reporting templates (such as consumer complaints reporting) and analytical tools, as well as effective enforcement mechanisms. Implementation will start next September.Sub-component 2.4: Promoting financial literacyStatus of Implementation: through public awareness campaigns and media programs, focusing on issues such as the legal rights of clients, understanding different financial products offered in the market, and the complaint resolution mechanism. This component will complement the efforts done by the steering and technical committees headed by the CBJ (which were established by a Ministerial Decree in May 2014), as their main mandate is to conduct a nation-wide financial literacy program in Jordan. To ensure effectiveness of the financial literacy interventions and provide a baseline for impact measurement in the future, it is advisable that a national financial literacyOne financial literacy campaign has already been conducted, and CBJ finalized signing a contract with INJAZ on October 22, 2015 that focus on the continuation of the financial literacy program within the school curricula across of Jordan, where the Ministry of Education will then adopt and carry over the implementation of the financial literacy for all grades at later stages. Specifically, this project is developing learning frameworks that support the development of a financial literacy curriculum for Grade eight.

Component 3: Supporting the development of the institutional framework for microfinance and non-bank financial institutions (NBFIs) supervision This component aims at supporting policy and regulatory reforms to develop the NBFI and micro finance sector. Recognizing the importance of its role as a financial regulator and supervisor, not for only banks but also for NBFIs, CBJ took serious steps towards regulating and supervising the microfinance sector. This entails setting a regulatory framework that is conducive to micro finance and NBFIs, as well as, institutional reforms that would allow CBJ to undertake such a mandate. In addition, the CBJ would also cover IT, both software and hardware, strengthening the institutional infrastructure.Previous Rating: Moderately Satisfactory


Sub-component 3.1: Technical assistance to CBJ

Status of Implementation: The microfinance bylaw No. (5) for 2015 was approved by the CBJ Board on May 29, 2014, and was ratified by the Cabinet on December 14, 2014, and is effective since June 1, 2015. Based on this bylaw, the CBJ has the mandate and authority to regulate and supervise the microfinance sector. The bylaw is consistent with international good practices, and adopts some light prudential rules with more focus on consumer protection, fit and proper requirements, strong governance rules, risk management and internal controls. The bylaw also adopts a general definition of the term “Microfinance” by including other financial services besides microcredit (with the exception of deposit taking), and targeting the poor segments of the population, by carting to the unbanked and the underserved.Moreover, in April 10, 2016, CBJ issued the “Instructions of Microfinance Companies’ Licensing and Visibility” No. (62/2016) in Compliance with the Provisions of Article (26) of the Microfinance Enterprises Bylaw No. (5) for 2015. The instructions cover the major following components: Microfinance criteria; Microfinance according to the Provisions of Islamic Sharia; Requirements of Licensing and Status Reconciliation; Relevance Criteria for the Board of Directors’ Members and the Senior Executive Management; the Sharia Control Entity; and the Internal and External Visibility.

The Microfinance Unit has been formally established at CBJ, and seven staff members were hired, including the Head of the unit. The teams agreed that the unit staff will receive training on the GIRAFE rating methodology for MFIs, which is part of the qualifying criteria under the MSME line of credit. CBJ can benefit from the Egyptian Social Fund for Development (SFD) experience in adopting and applying this rating methodology by organizing a workshop for the staff of the MF Unit.The project is supporting the CBJ in gathering all available data about the NBFIs that are engaged in financial services (for example, consumer lending, unregulated investment funds and factoring), as well as those that operate without any specialized regulation or supervision. This is done in order to identify the risks and issues that need to be covered, in order to further assist the CBJ in adopting a more comprehensive approach of regulating and supervising NBFIs, rather than just being limited to MFIs. This will include a comprehensive market study, technical assistance in drafting any needed regulation, and building the capacity of the staff in charge of supervising these institutions. The TOR will be advertised next September.Sub-component 3.2: Support CBJ in establishing the Unit (including staff and IT)

Status of Implementation: In February 2016, the Cabinet approved transferring the regulatory function of the Insurance sector to CBJ to. The decision stipulates transferring the regulatory function to the CBJ within a year, while the task of updating the regulatory framework for the insurance sector is to be completed within two years. Updating of regulations would involve improving the financial solvency of insurance companies, developing clear and transparent criteria for solvency and strengthening corporate governance requirements for insurance companies. Regulations will also be developed to ensure the separation between the life insurance business and general insurance business for companies that offer these types of insurance and to implement prudential requirements with respect to the investment policies of insurance companies.

Accordingly, a competent Insurance resident advisor was appointed under the project in May 2016 to provide necessary technical assistance to ensure transferring the regulatory function to the CBJ. This includes (i) preparing the legal requirements needed to transfer Insurance under CBJ supervision; (ii) developing the legal and regulatory framework; and (iii) developing a proposal for the setup, responsibilities and composition of the Insurance department, its cooperation with other units of CBJ and other stakeholders, as well as key requirements for the manager of the new department.

The World Bank, in close cooperation with GIZ, participated and assisted in organizing several workshops and meetings with the CBJ team, they managed to finalize the following: (i) an estimated budget for all components of the project; (ii) a work plan and time frame for each sub component; (iii) TOR for the lead consultant who will be responsible for assisting the CBJ in conducting the market study and assessment regarding NBFIs (and based

on this assessment to consider moving all NBFIs at a later stage under the supervisory authority of the CBJ); (iv) prepare the microfinance criteria and main executive instructions that the CBJ will need to take on the responsibility of regulating and supervising MFIs; and (v) participate in a learning visits and study tours to Morocco in May 2015, Malaysia in August 2015, as well as Egypt to benefit and learn from the Egyptian, Malaysian and Moroccan experience in regulating and supervising microfinance. The Bank team continues to closely collaborate with GIZ, to ensure complementarity of efforts.


(US$)

(x)


(y)

Total (US$)


3,000,000 3,000,000


3,000,000 3,000,000


1,234,768.12 1,234,768.12

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 400,000 0 400,0002015 600,000 400,000 1,000,0002016 500,000 500,000 1,000,0002017 150,000 200,000 350,0002018 200,000 50,000 250,000

F. Disbursements of Funds for Indirect Costs (US$)Disbursed (Million US$) Available (Million US$) Total (US$)

170,000 30,000 200,000


Project Development Objective (PDO): The main objective of the project is to enhance financial services and products and to strengthen financial protection mechanism for MSMEs, while enhancing governance.


Cor

e

Unit of Measure

Baseline

YR 1Mar 2014 – Feb

2015

YR 2Mar 2015 – Feb

2016

YR 326

Mar 2016 – Feb 2017

YR 4(2018) Frequency Data Source/

Methodology

Responsibility for Data CollectionTarget Actual Target Actual Target Actual Target

Number of microfinance loans after bringing the MFIs under the umbrella of CBJ

Number 0 0 0 500 76,93227 1000 100028 1500 Annual CBJ Report CBJ

Number of SME loans guaranteed by JLGC Number 3000 3200 3575 3500 4,105 4000 3466 4500 Annual JLGC CBJ

Number of complaints resolved to the satisfaction of the consumer by the Consumer Protection Unit at CBJ within [30] days.

Number 0 0 0 400 178 500 38929 600 Annual CBJ Report CBJ

INTERMEDIATE RESULTSComponent I: Strengthening the Credit Guarantee Schemes

Value of guarantees issued MillionJD 49 51 65.3 54 67.6 60 60 65 Annual JLGC CBJ

Guaranteed loans by JLGC to women-owned SMEs % 5 6 7 7 7 9 38 11 Annual JLGC CBJ

Component II: Enhancing the Consumer Protection MechanismConsumer Protection Unit at CBJ fully staffed and operational Yes/No No No No Yes No Yes No Yes Annual CBJ Report CBJ

Completion of the necessary training programs for the staff in the Consumer Protection Unit


Number of public awareness campaigns and financial literacy programs


Component III: Developing the Regulatory and Institutional Framework for Micro Finance Institutions and NBFIsMicrofinance Division at CBJ fully staffed and operational Yes/No No No No Yes Yes Yes Yes Yes Annual CBJ Report CBJ

26 These values are as of July 201627 These values were reported by Tanmeyah, as the MFI do not yet operate under the umbrella of the CBJ28 This number is yet to be confirmed in the next Supervision Mission, planned for September 201629 This refers to the number of complaints that have been received and resolved during 2015 (269) and 2016 (120), reported by the financial operations follow-up division, as the Consumer Protection division had not been in operation30 Financial Education in a school’s program

National Unified Registry and Outreach Worker Program

A. Basic Project InformationActivity Name: NATIONAL UNIFIED REGISTRY AND OUTREACH WORKER PROGRAM (P144832)

Country Name: Hashemite Kingdom of Jordan Name of Implementation Support Agency(ies): Income and Sales Tax Department (ISTD) in Ministry of Finance (MOF) for Component 1

Ministry of Planning and International Cooperation for Component 2

Name of ISA Project Leader: Setareh Razmara Email of ISA Project Leader: [email protected]

Recipient Entity: Income and Sales Tax Department (ISTD) in Ministry of Finance (MOF) for Component 1 and Ministry of Planning and International Cooperation (MOPIC) for Component 2.


Component 1: Bashar Alsaber, ISTD new Director (Bashar.Alsaber @ISTD.GOV.JO)

Component 2: Mukhallad Omari , MOPIC ([email protected])





2/20/2013


11/30/2013


12/31/2017



Secondary Pillar(s): Investing in Sustainable GrowthChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project development objective is to improve the targeting of social safety net programs and develop an efficient outreach mechanism





Since the last reporting period of January 2016, a technical review mission (Feb. 2016) and an implementation support mission (May 2016) were held. The objectives of the May mission were to: (i) finalize the scope of restructuring of Component 1 (NUR) based on earlier technical review and agreements with counterparts during the mid-term review mission (Nov. 2015); (ii) discuss and agree on the implementation and institutional arrangements for the restructured project; (iii) follow-up on the status of activities for the Outreach Program particularly with IYF; (iv) update the procurement plan and implementation schedule; and (v) update the result matrix of the project. In respect to restructuring, it was agreed with the Government that (i) there will be no change to Project’s Development Objectives, the scope of Component 2, nor component allocations across projects; and (ii) the implementation arrangements will be revised whereby MOPIC will undertake the fiduciary responsibilities and NAF will be the primary implementing agency for component 1.

In respect to NUR (Component 1), the restructuring is critical next step to improve the project’s progress towards achievement of its development objectives. As discussed in previous progress report, since ISTD has no longer any compensation program, it has been agreed that ISTD should not be responsible for implementation of Component 1. During the May supervision mission, to ensure that the available project funds are used to reach its development objective of “improving targeting of Safety Net programs”, it has been agreed to restructure the NUR component to ensure alignment with the new developments in the country and better use of the funds (a balance of about US$2.4million) during the remaining implementation timeline (project closing date of December 31, 2017). The Bank team worked closely with Government counterparts to pin down activities that are aligned with the PDO and which could be achieved during the remaining months of implementation. To move forward with the restructuring, the Government needs to (i) refund the World Bank the remaining outstanding balance which is in the Designated account of ISTD; and (ii) sent the withdrawal application to document expenses of ISTD. Currently the Bank team is working closely with MOPIC to ensure that restructuring could be completed before September 2016. After this restructuring is effective and the newly revised activities are launched, the team expects that the performance of this component could be upgraded to “Moderately Satisfactory” after the next implementation support mission.

In respect to Piloting the Integrated Outreach Worker Program (IOWP) (Component 2), progress has picked up with the kick off of implementation of all component’s activities following the signing and implementation of the three major contracts (Training, Mapping, and NGO). AZ International (the training firm) has completed the training of supervisors and outreach social workers. The pilot phase was completed in April 2016 and a detailed report of the activities carried-out, results, obstacles and main challenges for the deployment phase was prepared by the NGO (IYF). Taking into account the main lessons learned from the pilot phase, a detailed implementation plan for the deployment phase was prepared and the deployment of the outreach program has been initiated.



Expected Date of

DeliveryCoordinate the refund of the balance of the Designated Account (DA) under ISTD and submit the withdrawal application for ISTD expenses

MOPIC 8/31/2016

Process the disbursement letter for transferring the fiduciary responsibilities for the project’s First Component

Bank and Government

8/31/2016

Close follow-up of the implementation plan using information provided by the Case Management Information System (CMIS)

MOPIC Ongoing


Component 1: Building and Using National Unified Registry




Sub-component 1.1: Setting-up a single registry of potential beneficiaries for social assistance - the National Unified Registry (NUR) – at ISTD that will be used to target subsidies and distribute the compensation benefits/social assistance to eligible households affected by the subsidy reform.

Status of Implementation: As discussed in previous progress report, Income and Sales Tax Department (ISTD), under the Ministry of Finance, was responsible for its implementation. ISTD has developed, in the context of establishing a temporary cash compensation scheme for fuel subsidy, an MIS and a database (covering almost 80 percent of the households in the country) that allowed consolidation of data in off-line mode from various public

sources in a short time-span in 2012/2013. That system was seen as an embryo of a more comprehensive information system of the National Unified Registry (NUR) that would allow information exchange and consolidation of data on clients of social programs in Jordan. The project originally aimed at supporting ISTD in building such NUR on the basis of expanded scope and functionality of their information system. ISTD utilized the project funds to design detailed institutional and business process maps for the establishment of NUR. Three technical reports were prepared (business process, MIS, and legal) which provided various options for the design of NUR. However, due to falling international fuel prices, cash compensation scheme administered by ISTD was suspended in December 2014. At the same time, given the delays in the institutionalization of the NUR Unit within ISTD, the implementation of the component's activities were put at halt. Therefore, Component 1 (NUR) did not achieve any progress towards its objective. On the other hand, a comprehensive e-Government program, led by the Ministry of Information, Communication, and Technology (MoICT), was initiated to set up a shared ICT platform for the Government and coordinate provision of an array of electronic services to the citizens and various public agencies. As a result, the concept of the NUR required a new vision and design. Therefore the Bank team and MOPIC agreed to restructure NUR (Component 1).

Sub-component 1.2: Developing and using the NUR for social assistance programs.

Status of Implementation: Please see above with the new developments in the country and the proposed restructuring of the Component. The newly proposed restructuring will likely require change in the sub-components and the overall scope. To that end, once the restructuring is completed, a more relevant status of implementation will be reported by each of the newly introduced sub-components.

Component 2: Piloting Integrated Outreach Workers Program (IOWP)

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$):7.0 million Sub-component 2.1: Design, Planning and Training of Outreach Workers program.

Status of Implementation: Good progress has been achieved under this component with the completion of (i) mapping exercise and (ii) training and refreshment course of supervisors and social workers. With regards to mapping exercise, the objective aimed at mapping the main entities and stakeholders to provide referral services for targeted poor households in the three selected Governorates (Irbid, Zarka and Maan). The contracted firm, submitted their final report and the quality was found satisfactory by the Bank. This is an important milestone integral to the referral management and is expected to help the NGO (IYF) organize the information to be provided to supervisors and social workers for their work with the households. With regards to the training conducted with AZ international, the refreshing training was completed and covered all supervisors and social workers that will be implementing the activities of the program during the deployment phase.

Sub-component 2.2: Outreach Deployment and Monitoring.

Status of Implementation: Since the last reporting period, the component is on track of achieving its development objectives. The pilot phase was completed in April 2016 covering a total of 329 households in the three-targeted governorates. A detailed report of the activities, results, obstacles and main challenges for the deployment phase was discussed during the May mission with representatives of IYF. Taking into account the main lessons learned from the pilot phase, a detailed implementation plan for the deployment phase was prepared. The program will outreach 22,400 households from June 2016 to June 2017 in cycles of 4 months. To support a successful implementation of the deployment phase, the project management unit is expected to work closely with IYF in organizing and coordinating meetings, in each of the targeted governorates, with the counterparts or focal points from the agencies that will provide services to referred households. In addition, a close follow-up of the implementation plan is required, using the information provided by the Case Management Information System (CMIS) already developed, and taking in a timely manner the necessary measures to face potential obstacles in implementing the deployment phase.

While for the NUR Component, the PMU and staffing will be decided in light of the restructuring, for the IOWP Component, the performance of the Project management Unit has substantially improved in the last few months and the PMU team in MOPIC has been active in following up closely the implementation of the Outreach Program. With the hiring of the M&E Officer, monitoring of day-to-day operations of the project has been effectively improved. Moreover good quality progress report has been prepared. With the restructuring of Component 1, it is expected that the quarterly progress report will be efficiently prepared for both component 1 and 2 by MOPIC PMU.



(x)


(y)

Total (US$)


9,500,000 9,500,000


9,500,000 9,500,000

Actual Amount Disbursed (c): 1,824,503 1,824,503


Year Jan-June Jul-Dec Total by Year End20132014 1,000,000 0 1,000,0002015 250,000 250,000 1,500,0002016 1,000,000 1,000,000 3,500,0002017 2,000,000 2,000,000 7,500,0002018 1,000,000 1,000,000 9,500,000

The above disbursement forecast will also be revised during the upcoming restructuring.


498,883 1,117 500,000

G. Results Framework and Monitoring: During the restructuring of the project the result framework indicators will be also revised.

Project Development Objective (PDO): The project development objective is to “improve the targeting of social safety nets programs and develop an efficient outreach mechanism”.


Cor

e Unit of Measure Baseline





Dec 2013 – Nov 2014

A

Dec 2014 – Nov 2015

A

Dec 2015 – Nov 2016

F

Dec 2016 – Dec 2017

F

Indicator One: Direct project beneficiaries:

(c) Of safety net programs (subsidy compensation program) following new targeting schemes

(d) Of outreach worker program

(e) Of which are female

Household Number

percentage

0

0

700,000

0

031

0

0

0

20,400

50

700,000

22,000

50

Annual Ministry of Finance/ISTD Databases

Implementing NGO databases

Ministry of Finance/ISTD

MOPIC

Sum of beneficiaries of subsidy compensation program and outreach worker program

Indicator Two: Beneficiaries of safety net programs

(c) Total

(d) Of which are female

Number

Percentage

0 3.5 million

50

0

50

0

50

3.4 million

50

Annual Ministry of Finance/ISTD Databases


Beneficiaries = Households whose annual income is below JD10,000 will benefit from the program. This will cover approx 70% of Jordanian population)

Indicator Three: Poor households as a share of total beneficiaries of subsidy compensation program

Percentage 30 NA 32 35 40 Annual Ministry of Finance/ISTD databases


“Poor households” is defined as those whose incomes range from JD 0-2000/year according to

31 The fuel subsidy compensation scheme was suspended in December 2014

MOPIC/MOF policy that established the Subsidy Compensation Program.

Indicator Four: Beneficiaries of outreach worker program who are receiving the services

Percentage 0 0 0 50 50 Annual Implementing NGO database and/or survey

Ministry of Planning in partnership with the implementing partners

Beneficiaries = Poor household


Intermediate Result (Component One): (i) Government databases on beneficiaries consolidated into single database; (ii) MOF delivers compensation based using National Unified Registry database

Intermediate Result indicator One: Adopt modified welfare ranking to assess household eligibility for subsidy compensation program

Yes/No No No Yes Yes Yes Annual Revised application form

ISTD ISTD will use additional welfare indicators to establish eligibility.

Intermediate Result indicator Two: Grievance Redress System (GRS) developed and functional.

Yes/No No No Yes Yes Yes Annual GRS reports ISTD/MOF

Intermediate Result Indicator Three: Government databases on beneficiaries consolidated into single database

Yes/No No Yes Yes

Intermediate Result Indicator Four: MOF delivers compensation based using NUR database

Yes/No No Yes Yes

Intermediate Result Indicator Five: Data collected is verified

Percentage 0 0 70% 70% 70%

Intermediate Result Indicator Six: Other Government agencies using NUR in delivering services and assistance

Yes/No No No No Yes

Intermediate Results (Component Two): (i) Outreach workers fully integrated in poverty pockets; (ii) poorest households are registered in NUR; (iii) introducing referral system and case management; and (iv) tailoring and delivering services to the needs of households in poverty pockets

Intermediate Result Indicator One: Skilled Outreach Workers deployed

Number 0 0 0 576 896 Quarterly NGO database MOPIC in partnership with the lead NGO

Outreach workers = personnel to be recruited for household case management and supporting the grievance system at NUR

Intermediate Result indicator Two: Supervisors trained to train the outreach workers

Number 0 15 86

(15 from NAF and 71 recruited by the NGO)

36 56 Annual NGO database MOPIC in partnership with the lead NGO

Supervisors = personnel to be recruited as part of the outreach program to train and supervise the outreach workers

Intermediate Result Indicator Three: Case management approach used to assessing the needs of selected households participating in the program.

Percent of Households

0 0 0 50 50 Annual NGO database and rapid assessment reports from the households

MOPIC in partnership with the lead NGO

Households contacted by outreach workers


Virtual Market Places for the Development of Export SME: Jordan Activities

A. Basic Project Information Activity Name: Development of SMEs Exports through Virtual Market Places (Jordan)Country Name: Jordan (this is a regional project that includes Morocco and Tunisia)

Name of Implementation Support Agency(ies):The World Bank

Name of ISA Project Leader: Laurent Gonnet Email of ISA Project Leader: [email protected]

Recipient Entity: World Bank Executed Name and Email of Recipient Entity Contact:N/ATotal Amount Approved by the Transition Fund (US$):1,000,000



Steering Committee Approval Date:11 February 2014

Project Implementation Start Date:May 26, 2014 (date signature contract with International Trade Center, implementation partner).

Project Closing Date:December 30, 2017.




Competitiveness and IntegrationChoose an item.Choose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: This is a pilot project aimed at a) increasing SMEs exports through Virtual Market Places and b) supporting institutional reforms to create an enabling environment for e-commerce.


Satisfactory.

Rating for overall implementation progress: Satisfactory. Brief Summary of Project Implementation Status:

The VMP project was launched in Jordan on September 21, 2014. Project implementation is progressing as outlined in the report.

Summary highlights:A. VMP EXPORT ADVISORS (EAs) SELECTION AND TRAINING :

Training materials for EAs were developed and customized to match the e-commerce landscape in Jordan;

A training guideline for the EAs was developed as an educational tool with a step-by-step approach and country-specific content for assessing SMEs e-marketing opportunities (sell-ability study);

2 training workshops for export advisors (EAs) were delivered in Jordan; 20 EAs were trained, of which 14 have passed the training test and were appointed in the framework

of the project; 10 new EAs were evaluated, of which 8 additional EAs were selected, but not yet recruited; Coaching of advisors on the step by step guide to register on VMPs.

B. SME’s SELECTION AND REGISTRATION IN VMP SITES : An info day was conducted in November 2015 to mobilize beneficiary SMEs and to help them better

understand the project objectives; 169 SMEs submitted their applications, of which 53 SMEs were selected and assigned to their

respective EA; Coaching of SMEs and registration in VMP sites were initiated; Partnerships with VMP sites was established; Partnership with the Exporters’ Association and Handicraft Association was established to publicize

project to association members. C. ENABLING ENVIORNMENT:

Inter-Institutional Committee on E-Commerce was established; 3 barriers that hamper the development of e-commerce have been selected by the Inter-Institutional

Committee.D. Project Management:

Programme Implementation Unit was established; A questionnaire to measure the impact of the project on the SMEs was distributed to get SMEs

feedback; Corrective actions will take place in the coming period. Feedback from the EAs was collected with the

objective of introducing changes that might help the project move smoother. A Project management meeting was conducted to evaluate the current status of the Project and to design the upcoming activities. Phase (2) of the project was designed to start in July 2016 (mobilizing new advisors, SMEs, conduct the training for the new group, etc.).

No major risks jeopardize the outlook. There is a satisfactory level of engagement from main partners.



The work with trained advisors is activated. They clearly understand and accept their targets and are well-equipped to provide effective services to participating SMEs.

ITC and JEDCO 8/29/2016

Selection of a new cohort of advisors is completed. The advisors are trained and well-equipped to provide efficient services for participating SMEs.

JEDCO and ITC 9/23/2016

Promotion materials are reviewed and improved to better reach out SMEs (participation in the project is positioned as a unique experience).

Ministry of Trade

8/1/2016

The first meeting of the steering committee in Jordan is successfully organized.

JEDCO and ITC 9/22/2016

C. Implementation Status of Components Component 1: Institutional Reform Component

It is important that the government adopt policies, laws, and incentives that focus on promoting trust and confidence among e-commerce participants and on developing a national framework compatible with international norms on e-commerce. This component aims at supporting current discussions and at

introducing policy and regulatory changes.

This component supports the creation of an inter-ministerial committee with the private sector participation, by analytical and diagnostic studies, with the objective of concretizing reforms in the enabling environment for e-commerce.

Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$):100,000

Draft of initial proposal of the Terms of Reference (ToR) for the Inter-Institutional Committee on E-Commerce was developed and shared with the Ministry of Industry, Trade, and Supply (MITS). The draft proposal was developed based on joint discussions undertaken between ITC, MITS, Ministry of Information and Communications Technology (MoICT) and Ministry of Transport (MoT). The discussion included the setting-up of an inter-Institutional Committee on E-Commerce.

The proposed committee met on December 9, 2015 to discuss the proposed ToR ( see Annex 1 – Term of Reference), and to take the required actions. During the meeting, the inter-Institutional Committee agreed on the following:

- To include some of the leading Jordanian exporting companies that export through e-commerce as part of this committee;

- To focus on the main challenges and obstacles facing these companies, such as: shipping cost, shipping procedures, taxes, payment mechanism;

- Focus on resolving common problems shared by these companies.

The committee was established in 2016, a meeting was held to share additional information on key obstacles, as well as a revised version of the ToR resulting from the discussions, and inform on the subsequent actions that will be undertaken by the Committee.

It is worth mentioning that the ITC is currently undertaking the Non-Tariff Measures Survey in Jordan, as part of the Aid for Trade Initiative for Arab States project: ITC took this opportunity to include in the survey additional questions on the main obstacles and challenges that face SMEs in exporting through VMPs. The results of the survey will be shared with the Inter-Institutional Committee to address these impediments.

Component 2: Capacity Building Program VMP Export Advisors (EAs)

Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 445,000Sub-component 2.1: Capacity Building Program.The sub-component covers the cost of the design and the delivery of training programs that will enable country partners to fully understand the methods, techniques and dynamics of VMPs, to maximize the opportunities they offer and to increase exports and diversify markets.

Status of Implementation: Satisfactory. 01. Two training workshops on virtual market places were delivered: The first workshop was conducted on December 9 - 11, to build capacity of local IT and marketing

consultants. The workshop aimed at enriching EAs e-commerce knowledge and e-marketing skills to enable them to deliver the required support to SMEs;

Twenty (20) of the local IT and Business consultants attended the training, of which fourteen (14) were appointed in January 2015 ( see Annex 2 – List of selected advisors). The consultants were hired to work with ITC on assisting the Jordanian SMEs in the implementation of virtual market places (VMPs)

solutions; The second workshop was conducted on April 21-23, as a continuation to the first training. The

advisors were trained mainly on how to complete cycle of cross-border e-commerce transactions. The training covered product and market research, content preparation, commercial offers, as well as assessing the financial, legal and logistic environment in the target markets (see Annex 3 - Trainings/Roadmap);

During this training, the following activities were carried-out: Some SMEs were invited to present real cases on the challenges they face while exporting through

VMPs to expose the selected consultants to real-business stories and challenges SMEs face on e-commerce opportunities;

Assign SMEs to the consultants and explain the project objectives and expectations in terms of results.

02. On 25 November 2015, the ITC conducted a one-day workshop for the advisors to answer their queries on the tasks they are expected to deliver during the second assignment and to provide them with guidance. For this workshop, the ITC developed a “step by step guide” to be used as a reference for EAs work (see Annex 6: step by step guide). Coaching was delivered by the ITC trainers during this period during which weekly meetings were organized with the EAs to clarify outstanding issues and guide them towards finalizing their work. Feedback on the first draft of deliverables was provided by the ITC trainers to improve the work of the advisors which was later re-submitted for final review.

03. ITC created an online shared platform to facilitate reporting and sharing of information and obtain feedback from the ITC.

04. Recruitment of new EAs: ITC communicated with Academic institutions such as the German Jordan University and the

Pioneer Academy to identify qualified EAs. Additionally communication was initiated with the Jordanian Consulting Association (MIC) to identify qualified e-commerce consultants.

Additional on-line head hunting of qualified e-commerce consultant were contacted. As a result, 10 new EA applications were received. Of which 8 applicants were found qualified and

will be hired by the ITC in the next stage of ITC EA training.Sub-component 2.2: Registration and Coaching of SMEs

Along with the outreach phase of the project, beneficiary SMEs were registered in between one to three different VMPs, SMEs were coached on how to maximize sales on VMPs and how to deal with the inquiries coming from the potential buyers.

Status of Implementation: Satisfactory.

Call for Expression of Interest was launched online and applications were received from 169 SMEs to benefit from the project; 53 SMEs were selected and allocated to the 14 advisors. An information day was conducted on November 26, 2015. The objective of this day was to mobilize more SMEs and help the selected SME's to better understand benefits, results, how the project will take-off, what are the roles of advisors and that of SME's in achieving project results..

The advisors completed the first assignment under ITC supervision: 42 SMEs were assisted in capturing the content that will be showed in the VMPs (see Annex 4).

The second assignment was mainly focused assisting SMEs to get registered in the VMPs. More than 20 SMEs were registered on the VMPs in December 2015 (see Annex 5: sample of registration), and an additional 20 SMEs are in the process of being registered in the VMPs.

It was recommended that the advisors focus on a few platforms for a more effective use of available

resources, mainly: etsy, eBay , tradekey and Alibaba, and have been advised to assist the SMEs to open a paypal account, as registering on VMPs such as ebay require a paypal account.

It is worth mentioning that the second assignment is considered to be the main phase of the project, where all the “engineering” is done. The advisors have to work with the SMEs on different aspects in order to select the right VMP. Such as: benchmark exercise to for each product in each Market/VMP to have a competitive analysis of the SME’s offers, undertaking “Salability exercise” on each product for each Market/VMP with the objective of proposing optimizations or alternatives, and finally identification of the best 3 VMPs for the SMEs (See Annex 4). ITC is currently following up on the progress the consultants/advisors made so far and a detailed description of the achievements will be provided by the beginning of August.

In relation to new SME registrations, industry associations were contacted and a flyer for mass-mailing was developed by the ITC for circulation to Association members (see Annex 7).

Component 3: Partnerships, Business Intelligence and Certification

Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 340,000Sub-component 3.1: Partnerships with Virtual Market Places.


The project team initiated contact with several VMPs and discussed modalities of partnership to ensure customized support to selected SMEs.

The discussions helped define the framework for collaboration. Implementation of partnership arrangement is being discussed with AliBaba, eBay, LittleMajlis (LittleMajlis.com), Souq.com, MarkaVIP.com.

A contract with Tradekey is in place to help some beneficiary SMEs. Tradekey was selected because it connects traders with global whole sellers, buyers, importers & exporters, manufacturers and distributors in over 240 countries with a special focus on Asia and the Middle East, markets that are of interest to selected companies.

Discussions are progressing with Alibaba, Etsy, Feelancer.Sub-component 3.2: Business Intelligence Development.ITC will provide market and export related data to the export advisors. Furthermore, the project will benefit from statistics on users, accesses and transactions which may allow for a comparative evaluation of SMEs under different VMPs. Access to tools such as Terapeak.com and Alexa.com are being discussed and organized.

Status of Implementation: Satisfactory.This component will be implemented at a later stage of the project.Sub-component 3.3: Certification.

Status of Implementation: Satisfactory. This component will be implemented at a later stage of the project.

Component 4: Project ManagementPrevious Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 90,000Sub-component 4.1: Project Management – This component will finance the PIUs at country level.


The national coordinator is identified and hired after a selection process. He follows up on the day to day management of the project, ensuring linkages with the partner institutions.

The national coordinator is working with ITC on the following :

Take the appropriate actions to mobilise more companies by undertaking the following: identify potential SMEs from Jordan; initiate contact and invite beneficiaries to learn about and participate in the project; manage Communications with beneficiaries until official registration;

Facilitate ITC’s work with the national consultants ( and the SMEs); Assist in establishing the Inter-institutional committee; ensure that the committee has a clear

understanding of the project and of their responsibilities, follow-up on the progress the committee is making;

Assist in establishing an oversight committee for the project; and propose terms of reference for its roles and responsibilities, assist ITC in submitting the required progress reports to the committee (as required).

lead advisors:

To facilitate the working process, two lead advisors were hired to assist in providing technical feedback and backstopping to a group of 6 national consultants during their first and second assignments, and to give them an extensive guidance and written feedback by electronic means; feedback should be provided within a maximum of two days

A Project management meeting was conducted in May 2016 to evaluate the current status of the project and to design the upcoming activities. Phase (2) of the project was designed to start in July 2016 (mobilizing new advisors, SMEs, conduct the training for the new group, etc).Sub-component 4.2: Impact Evaluation Assessment

Status of Implementation: The component will be implemented at the end of the project.


(US$)(x)


(y)

Total (US$)


975,000 975,000


975,000 975,000

Actual Amount Disbursed (c): 659,180.7 659,180.7

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 94,169 94,169

2015 188,337 94,169 282,5062016 188,337 282,506 470,8432017 127,482 127.482Total 504,156 470,844 975,000


25,000 0 25,000


Indicators by Component

Unit Baseline Cumulative Target Values Frequency Data Source/Methodology


Collection


May 2014 –

Apr 2015

A

May 2015 – Apr 2016

A

May 2016 – Dec 2017

F

PDO LEVEL RESULTS INDICATORS:

The proposed project development objective (PDO) is to (i) increase SMEs access and exports via Virtual Market Places, and (ii) support institutional reforms to create an enabling environment for e-commerce in targeted countries.

Indicator 1: Registered SMEs with at least one export transaction completed via VMPs

Number0 0 0 120 Quarterly Statistics VMP

platforms/Feedback from surveys/M&E

Database

PIU Number of transactions conducted by SMEs registered

Value of Exports increase since VMP access

Indicator 2. Roadmap for the reform of the enabling business environment for e-commerce in each participating country and integrated in national commerce strategies

Yes/No No No No Yes Bi-annual Reporting by the Oversight

Committee; Ministries of

Trade

PIU - ITC Roadmap document endorsed by the OC

Indicator 3. SMEs registered in VMPs Number

0 0 45 135 Quarterly Captured by EAs and monitored through M&E

Database

PIU-ITC Registration involves opening of a VMP account and uploading of product

and contact information.

INTERMEDIATE OUTCOMES

COMPONENT I. INSTITUTIONAL REFORM

Workshops conducted

Number 0 0 2 3 Bi-annual Reporting PIU-ITC

PIU-ITC Output Delivered – Workshop report

Analytical Work delivered on key e-commerce topics

Number 0 1 2 2 Bi-annual Reporting PIU – ITC

PIU-ITC Output delivered – Workshop Report

COMPONENT II. EXPORT MARKETS ACCESSED THROUGH VMPS

Export Advisors Trained

Number 0 20 20 40 Bi-annual Reporting PIU-ITC

PIU/ITC Captures number of EAs trained on VMPs

Export Advisors Certified

Percent 0 80% 80% 100% Quarterly Training provider assesses

performance

PIU-ITC Percent of EAs who receive certification, out of total number of trained EAs; Not all EAs may end up qualifying; target for 2016 expects 90% to obtain it.

Training program for TSIs delivered (# activities)

Number 0 0 1 3 Quarterly M&E Database PIU-ITC # Training sessionsReport disseminated and workshops evaluations# Number of advisory services provided#SMEs satisfaction with TSIs service delivery

COMPONENT III. VMP PARTNERSHIPS, CERTIFICATION AND BUSINESS INTELLIGENCE

Collaborative partnerships with VMPs

Number0 0 4 4 Quarterly Project

implementation reports

PIU MoU, Letter of Intent or other agreement-related documentation.

Newsletters published by TSIs to roll out the Competitive Intelligence Mechanism

Number0 0 25 50 Quarterly PIU and RIA PIU and EA # product (newsletter) delivery by

TSI main partner

Premium Accounts awarded – Certifications

Number0 0 0 50 Quarterly Project

Implementation Reports

M&E Database and VMPs

ITC/PIU Trust label certificates

Assessment body created and operational

Yes/NoNo No No Yes Quarterly Project


WB/ITC/PIU Creation of Conformity Assessment body

SME Policy Effectiveness Project

A. Basic Project InformationActivity Name: Jordan SME Policy Effectiveness Project

Country Name: Jordan Name of Implementation Support Agency(ies): Organisation for Economic Co-operation and Development

Name of ISA Project Leader: Andreas Schaal; Jorge Gálvez Méndez

Email of ISA Project Leader: [email protected] ; [email protected]

Recipient Entity: N.A. (beneficiary: Jordan Development Enterprise Corporation - JEDCO)

Name and Email of Recipient Entity Contact: Acting CEO, Eng. Riyad Al-Khatib; [email protected]; CC: Mr. Basheer Salaytah, Director of Policy Support, [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 36,000 JEDCO



8/12/2015


1/1/2016


1/8/2018


Primary Pillar: Inclusive Development and Job Creation

Secondary Pillar(s): Enhancing Economic GovernanceChoose an item.Choose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The Project supports Jordan to increase SME policy effectiveness by building capacity to reinforce key elements of the SME policy making process: coordination, public-private consultations, monitoring and evaluation.


Satisfactory



The OECD has undertaken consultations with key stakeholders to prepare the organisation of the initial series of seminars for each of the components. The seminars were planned to take place in early July 2016; nonetheless, political changes and the cabinet reshuffle taking place in June 2016 led to the postponement of the events to September 2016.

Consultations have included JEDCO, the Ministry of Planning and International Co-operation, the EIB-JEDCO-led MENA Transition Fund project “SME Growth Programme”, the Department of Statistics, the Central Bank of Jordan, the Companies Control Department, private sector associations and donors, including the Delegation of the European Union to Jordan. The OECD also participated in a multi-stakeholder conference on Public-Private Dialogue for SME policies in Amman in May to disseminate good practices and to inform the wide audience about the Project, its objectives and forthcoming activities. The Ministry of Industry, donors, private sector associations and others expressed interest in participating in the activities of the project.

Section C below outlines specific results for each component.









C. Implementation Status of Components Component 1: Provide support and capacity building for JEDCO to lead the implementation and coordination of the overall SME StrategyPrevious Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 427,000Sub-component 1.1: Identification of coordination shortcomings and bottlenecks

Status of Implementation: Consultations have taken place between the OECD and Jordanian stakeholders for the implementation of this component. Those consultations indicate that:

The SME Strategy has not yet been endorsed by the Jordanian cabinet (which has been recently reshuffled), but JEDCO has started the implementation of the elements that are under its mandate. For instance, JEDCO is in the process of preparing to conduct an SME Test and has started the implementation of the SME Observatory.

It will be very important to ensure that the Strategy is implemented also at the sub-national level, since there are areas that are not densely populated and which require attention.

The High Level Committee (HLC) has been identified, but not the technical and operational networks in charge of the implementation of the Strategy. This component will support the implementation of the Committee and the networks based on international experience.

The current definition of SMEs identified in the Strategy (similar to the EU definition) is to be adjusted to better correspond to the Jordanian economic reality.

The workshops on Institutional coordination and public-private dialogue, to take place in Amman in September 2016 will complement the information from the consultations and will raise awareness among Jordanian stakeholders on the overall objectives of the project, its component 1 and international practices on institutional coordination and public-private dialogue. They will also provide input for the start of the preparation of guidelines to improve SME data collection, dissemination and analysis. Participants will include the Department of Statistics; Central Bank of Jordan; Companies Control Department; JEDCO; Jordan Chamber of Commerce; Jordan Chamber of Industry; universities and research centres.Sub-component 1.2: Elaboration of guidelines to improve coordination and consultations

Status of Implementation: Not yet under implementation. Sub-component 1.3: Application of guidelines to the overall SME Strategy

Status of Implementation: Not yet under implementation.

Component 2: Build capacity to collect, harmonise, analyse and publish business statistics online and in the form of reports

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 366,500Sub-component 2.1: Capacity building workshops to improve SME data collection, harmonisation and dissemination

Status of Implementation: Consultations have taken place between the OECD and Jordanian stakeholders for the implementation of this component. Those consultations indicate that:

There is high level awareness of the need to have accurate data on SMEs to assess progress internationally (as stated by the Prime Minister of Jordan during the SME Conference on public-private dialogue in Amman on 23 May).

There is an important potential to improve the dissemination of SME data since the Department of Statistics processes only a small portion of the raw data they collect and since there is a general weakness in the preparation of policy papers based on robust data.

However, there are difficulties in sharing statistical information among different sources (social security, income tax, chambers of commerce, Department of Statistics). Component 2 and Component 1 will help to address those difficulties.

Concerns about the use of different SME definitions among institutions could be addressed if the Department of Statistics (DOS) is able to produce raw data on the enterprise population. According to the DOS this is feasible.

Sources of information on enterprise population are available from the Establishment Census (taking place every 5 years) and annual surveys. There are no special efforts to measure the informal economy.

The Central Bank of Jordan has much of the information necessary to participate in the OECD Scoreboard on Financing SMEs and Entrepreneurs (a key instrument for Component 2). There are other relevant institutions to be included in this component (e.g. Jordan Loan Guarantee Company (JLGC), The Association of Banks in Jordan, Jordan Microfinance Network (Tanmeyah), and Jordanian Association of Leasing Companies).

The SME Observatory, an important component for the dissemination of the statistics to be produced, is in the initial stages of implementation by the MENA Transition Fund project “SME Growth Programme”. There are important synergies between that project and the “SME Policy Effectiveness Project”.

The workshops on Improving availability, reliability and timeliness of SME statistics to take place in Amman in September 2016 will complement the information from the consultations and will raise awareness among Jordanian stakeholders on the overall objectives of the project and its component 2 and the OECD instruments that will be used throughout the project. They will also provide input for the start of the preparation of guidelines to improve SME data collection, dissemination and analysis. Participants will include the Department of Statistics; Central Bank of Jordan; Companies Control Department; JEDCO; Jordan Chamber of Commerce; Jordan Chamber of Industry; universities and research centres. Sub-component 2.2: Production of a manual reflecting the results of the workshops

Status of Implementation: Not yet under implementationSub-component 2.3: Publication of SME and entrepreneurship data

Status of Implementation: Not yet under implementation

Component 3: Assist JEDCO in implementing a monitoring and evaluation system of SME support measures and their individual and aggregate impact on SME and entrepreneurship performance

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 427 000Sub-component 3.1: Capacity building workshops on monitoring and evaluation techniquesStatus of Implementation: Consultations have taken place between the OECD and Jordanian stakeholders for the implementation of this component. Those consultations indicate that:

No M&E techniques are yet systematically implemented in the country. There are some initial steps such as the evaluation of projects implemented by some donors, notably the

European Union. The SME Growth Programme has undertaken a one off M&E workshop. JEDCO is establishing a M&E unit, which will benefit from Component 3.

The workshops on the Design and implementation of mechanisms for monitoring and evaluation, to place in Amman in September 2016 will complement the information from the consultations and will raise awareness among Jordanian stakeholders on the overall objectives of the project and its component 3 and the OECD instruments that will be used throughout the project. They will also provide input for the start of the preparation of guidelines to implement M&E. Participants will include the Min. of Industry and Trade, Min. of Planning and International Co-operation; Min. of Finance; JEDCO; Central Bank of Jordan; Jordan Chamber of Commerce; Jordan Chamber of Industry; sector associations and regional chambers of commerce; EU Delegation in Jordan, USAID, GiZ.Sub-component 3.2: Production of M&E guidelines for the different thematic pillars of the SME Strategy

Status of Implementation: Not yet under implementationSub-component 3.3: Report on the state of SMEs and entrepreneurship, including an overview of SME statistics and results of M&E

Status of Implementation: Not yet under implementation


(US$)(x)


(y)

Total (US$)


OECD: 1,220,500 USD OECD: 1,220,500 USD


OECD: 0 USD OECD: 0 USD



E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End

2016 n/a OECD: 241,067 USD OECD: 241,067 USD

2017 OECD: 273,545 USD OECD: 273,545 USD OECD: 547,090 USD

2018 OECD: 273,545 USD OECD: 95,926 USD OECD: 369,471 USD


Disbursed (US$)1 Available (US$) Total (US$)

OECD: 81,743 USD OECD: 0 USD OECD: 81,743 USD


Project Development Objective (PDO): The Project will support Jordan to increase SME policy effectiveness by building capacity to reinforce key elements of the SME policy making process: coordination, public-private consultations, monitoring and evaluation.


MeasureBaseline




Collection


definition etc.)Jan-Dec

2016F

Jan-Dec

2017F

Jan-Aug 2018

F

YR 4F

YR5F

Indicator One:Government bodies, institutions and local government units receiving support services

Number of bodies, institutions and units

No institutions receiving support

At least 4 instit-ution

At least one more institution

At least one more institution

Annually Progress ReportProject Implementation Team (PIT)

Institutions in charge of SME policy benefiting from the activities of the project

Indicator Two: Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Number of guidelines developed and endorsed

No guidelines

0

3 sets of guideli-nes (one per compo-nent)

Comprehensive publication for JEDCO


Guidelines developed and endorsed to support each are under each component

Indicator Three: Public sector staff trained in various aspects of SME and entrepreneurship coordination, dialogue, monitoring and evaluation, and data collection, harmonisation and analysis

Number of staff

No staff trained

35 staff 70 staffOver 100 staff


Staff benefiting from the capacity building activities under each component

Indicator Four:


Intermediate Result (Component One): Provide support and capacity building for JEDCO to lead the implementation and coordination of the overall SME Strategy

Intermediate Result indicator One: Consultations between relevant actors of different levels (high and technical level) in selected, highly horizontal policy areas (e.g. innovation policy, access to finance, business environments, etc.).

Number of well-structured, formal consultations

Consultations are sporadic, not well-structured and relevant actors are not consistently involved

At least one consultation

At least one additional consultation

Semi-annually OECD-JEDCO

Qualitative indicator. Relevance of the indicator lies in the form and participation of the consultations rather than their number.

Intermediate Result indicator Two: Key Number of No specific Primary Second Semi-annually OECD-JEDCO Qualitative indicator.

shortcomings and bottlenecks identified in current coordination and consultation mechanisms

coordination and consultation short-comings and bottlenecks

shortcomings and bottlenecks identified

shortcoming s and bottlenecks identified

ary shortcoming s and bottlenecks identified

Relevance of the indicator lies on severity of shortcomings and bottlenecks identified rather than their number.

Intermediate Result indicator Three: Key recommendations or guidelines developed to address these shortcomings and bottlenecks. These recommendations or guidelines should be applicable to different SME policy domains

Specific guidelines or recommendations addressing specific shortcomings and bottlenecks

No guidelines to guarantee coordination and consultations

Primary and secondary bottlenecks and shortcoming addressed

Semi-annually OECD-JEDCO Qualitative indicator. Relevance of the indicator lies in the pertinence or usefulness of the recommendations rather than their number.

Intermediate Result (Component Two): Coordinate with JEDCO and the EIB in the implementation of the SME Observatory, especially by building capacity to collect and harmonise business statistics

Intermediate Result indicator One: Capacity building workshops to improve the collection, harmonisation, analysis and publication of enterprise data, including SMEs

Number of workshops

No capacity building in place

At least one workshop

At least one additional workshop

Semi-annually OECD-JEDCO Qualitative indicator. Relevance of the indicator lies in the results of the workshops rather than their number.

Intermediate Result indicator Two: Recommendations, in the form of a manual, to collect and analyse SME and entrepreneurship statistics

Number of recommendations

No guidelines on SME data collection

One manual

Data collection by JEDCO and DOS based on the manual

Annually OECD-JEDCO Qualitative indicator. Relevance of the indicator lies in the usefulness and application of the recommendations rather than their number.

Intermediate Result indicator Three: Number and type of indicators collected by Jordanian authorities and published in the SME Observatory

Number and type of indicators

No internationally comparable indicators currently available online

First set of indicators online

Second set of indicators online

Annually OECD-JEDCO Qualitative indicator. Relevance of the indicator lies in the usefulness and application of the indicators collected rather than their number.

Intermediate Result (Component Three): Assist JEDCO in implementing a monitoring and evaluation system of SME support measures and their individual and aggregate impact on SME and entrepreneurship performance

Intermediate Result indicator One: Capacity building workshops on monitoring and evaluation of different SME support measures

Number of workshops

No capacity building in

place

At least one

workshop

At least one

additional

workshop

Semi-annually OECD-JEDCO Qualitative indicator. Relevance of the

indicator lies in the results of the

workshops rather than their number.

Intermediate Result indicator Two: Guidelines to improve SME policy monitoring and evaluation, at the individual SME programme level and the

Number of recommenda

tions

No guidelines on

M&E

One manual

Implementation of M&E based

Annually OECD-JEDCO Qualitative indicator. Relevance of the

indicator lies in the usefulness and

aggregate, SME Strategy level on the manual

application of the recommendations rather than their

number.Intermediate Result indicator Three: Publication of policy papers and a first report on the state of SMEs and entrepreneurship in Jordan, including SME statistics and results of the effectiveness of the SME Strategy’s measures taken so far

Reports No annual report on the

state of SMEs and

entrepreneurship

Pilot or working version report

First report

Annually OECD-JEDCO


Jordan Support to Decentralization Efforts

A. Basic Project InformationActivity Name: Support Jordan’s ongoing decentralisation efforts by promoting good governance and open government policies and practices with a focus on municipalities


Name of ISA Project Leader: Andreas Schaal; Alessandro Bellantoni


Recipient Entity: Ministry of Planning and International Cooperation

Name and Email of Recipient Entity Contact: Mr. Nasser Al-Zoubi, [email protected]





8/12/2015


1/3/2016


2/28/2019





The Project will support the efforts of Jordan in fostering inclusive growth by leveraging good governance, in particular open government policies across levels of government and within municipalities.

The overall objective of the Project is to “Support Jordan’s ongoing decentralisation efforts by promoting good governance and open government policies and practices across levels of government and with a focus on municipalities” by:

1. building the capacities of central and local institutions (governorates and municipalities) for inclusive and effective policymaking and public service delivery in the context of Jordan’s ongoing decentralisation reform; and

2. implementing open government principles and practices in selected municipalities.

Both components will further be complemented by activities aimed at increasing the participation of Jordan’s central and local institutions and CSOs in the international and regional dialogue on good governance, multi-level governance, and open government policies as an integral part of the project.


Satisfactory



Since the last reporting period, the project has made satisfactory progress towards the achievement of its objectives.

1) Launching conference on 16 May 2016 in Amman




With around 90 high-level representatives from the central government and public administration, civil society, the parliament, international partners, and governors and mayors the official launching conference took place on 16 May 2016 in Amman.

Delivering the welcoming remarks at the conference, Imad N. Fakhoury, Minister of Planning and International Cooperation of Jordan, stressed the commitment of the Jordanian government to provide new opportunities for citizen engagement in the identification of policy priorities at the municipal and governorate level. Subsequently, David Bertolotti, Ambassador of France to Jordan, and Birgitta Siefker-Eberle, Ambassador of Germany to Jordan, both expressed the readiness of their countries in accompanying Jordan to achieve this ambitious reform process in collaboration with the OECD. Mari Kiviniemi, Deputy Secretary General of the OECD, highlighted the importance of dedicated policies and increased technical capacities, as well as a new culture of collaboration and coordination across the different levels of government, in partnership with non-governmental stakeholders.

Next steps: A summary note with the key outcomes of the conference will be shared with the participants.

2) First meetings of the project’s Steering Committee and the Network of Civil Society Organisations for Open Government at the Local Level in Jordan

Two dedicated bodies will support the collaboration between Jordan and the OECD. Both bodies met for the first time on 16 May 2016 in Amman following the launching conference.

The project’s Steering Committee (SC) brings together the ministries with a key stake in the decentralisation reform – notably the Ministry of Planning and International Cooperation, the Ministry of Interior, the Ministry of Municipal Affairs, the Ministry of Public Sector Reform and the Ministry of Finance. The members of the SC expressed their commitment to collaborate closely in the implementation of the project and considered extending the scope of the SC to become the cross-ministerial body to coordinate the overall reform process.

Upon invitation of the OECD and of the Al –Hayat Centre for Civil Society Development-RASED around 25 civil society organisations from all 12 governorates gathered to create the new Network of Civil Society Organisations for Open Government at the Local Level in Jordan. The Network, which is open to all interested actors, will function as a national platform to promote the systematic engagement of citizens and non-governmental stakeholders in the formulation and implementation of public policies and services at the sub-national level. The session was jointly organised by OECD and Al Hayat Centre for Civil Society Development -RASED for capacity building and development.

Next steps: A second meeting with the project’s Steering Committee will be organised in the framework of the second fact-finding mission (see below). The meeting at technical level will serve to discuss the strategic document which has been co-formulated by the Ministry of Planning and International Cooperation, the Ministry of Interior and the Ministry of Municipal Affairs. The document is expected to outline the process and mandate for each entity in the implementation process of the decentralization reform in Jordan.

3) First fact-finding mission with stakeholders at the central level on 17-19 May 2016 in Amman

With the support of Mr. Jean-Louis Rocheron, a senior public official from the French Region of Aquitaine, Limousin and Poitou-Charentes who acted as peer expert, the OECD team conducted a first series of interviews which was successful in understanding the status of the reform process in the relevant ministries at the central level.

The OECD team met with the following institutions: Ministry of Planning and International Development; Ministry of Interior; Ministry for Municipal Affairs; Ministry of Political Development and Parliamentary Affairs; Ministry of Public Sector Development; and Greater Amman Municipality. In a meeting organised by Al-Hayat Center-RASED for capacity building and development, the OECD team discussed the state of the reform process with around 12 stakeholders from civil society organisations, media and academia.

Following the mission, the OECD team ensured direct follow-up with all stakeholders to receive relevant documents, publications and strategic initiatives currently underway. The Ministry of Planning and International Cooperation plays a crucial role in facilitating these exchanges.

Next steps: Ahead of the second-fact finding mission, the OECD team will send a questionnaire to all concerned stakeholders to complement the information received during the first mission with a focus on the following aspects: 1) Contextualisation; 2) Reform on decentralization in the context of Jordanian public sector; 3) Whole-of-government co-ordination of public sector reform with a focus on decentralization and open government; 4) and Openness and citizen engagement.

A second fact-finding mission will be organised in the week of the 18th of July to continue the process of collecting data and information. The main interlocutors will be line ministries at the central level. Moreover, the OECD team will visit and invite selected municipalities and governorates (e.g. Ajloun, Al Salt) to understand the specific challenges for sub-national institutions and authorities in the implementation of the new legal framework in Jordan. The mission will provide an occasion to discuss and prepare the first steps of the workshop to be held in October 2016.

4) Donor coordination

The mission provided an excellent opportunity to coordinate OECD activities and discuss the reform process with key international partners and donors.

In the course of the three-day fact-finding mission, the OECD team identified possible synergies with the following institutions: French Development Agency (AFD); the Agencia Española de Cooperación Internacional para el Desarrollo (AECID); the World Bank; USAID and VNG International ( the International Cooperation Agency of the Association of Netherlands Municipalities).

Next steps: The OECD will continue to identify and exploit synergies with ongoing initiatives on the decentralization reform in Jordan.



Questionnaire: will be sent to the interviewed ministries to complete relevant data and information. Relevant documents will be shared with the OECD team.

OECD End June

Second fact-finding mission: to meet with line ministries, selected municipalities and governorates, civil society from the local level and international partners (18-22 July 2016).

OECD 7/18/2016

Technical workshop: The workshop at technical level will gather representatives from the ministries with a key stake in the decentralization reform (e.g. Ministry of Political Development and Parliamentary Affairs, Ministry of Planning and International Cooperation, Ministry of Interior, Ministry of Municipal Affairs, Ministry of Finance) to present and discuss the preliminary findings from the two fact-finding missions.

OECD Fall 2016

C. Implementation Status of Components Component 1: Building the capacities of central and local institutions (governorates and municipalities) for inclusive and effective policymaking and public service delivery in the context of Jordan’s ongoing decentralisation reform

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 959,026Sub-component 1.1: Strategic assessment of the readiness of Jordan’s evolving governance frameworks to design and deliver effective and inclusive public policies and services

Status of Implementation: The first fact-finding mission was successful in collecting relevant data and information on the status of the reform process and to identify possible bottlenecks rooted in the public governance framework. A second fact-finding mission will be organised with line ministries and representatives

from the sub-national level in the week of the 18th of July 2016.Sub-component 1.2: National dialogue and capacity building initiatives to promote a culture of integrated governance among public officials at the central and local levels and the necessary skills to implement the ongoing reforms

Status of Implementation: Implementation has not started yet. Sub-component 1.3: Participation of national and local stakeholders (both public officials and representatives of CSOs) in the regional and international policy dialogue on public governance

Status of Implementation: Jordanian stakeholders from the Ministry of Planning and International Cooperation participated in the 11th annual meeting of the Working Group on Open and Innovative Government on 7 February 2016 in Dubai. In the meeting, the OECD presented the preliminary version of the report “Benchmarking Digital Government Strategies in the MENA region”, the preliminary results of the OECD Open Government Survey with a focus on open government policies at the local level, the results of the regional study “Youth in the MENA region: How to bring them” in and discussed ways to foster innovation in the public sector.

On 31 May 2016, Dr Saleh Al-Kharabsheh, Secretary General of the Ministry of Planning and International Cooperation, Jordan, visited the OECD for a Jordan-OECD round table on refugees and migrants.

Component 2: Implementation of open government principles in selected municipalities

Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): Sub-component 2.1: Review of open government principles and practices at the local level

Status of Implementation: Following a first meeting of the Network of Civil Society Organisations for Open Government at the Local Level in Jordan on 16 May 2016, the OECD team will meet with a variety of CSOs at municipal level (e.g. Ajloun) to discuss current mechanisms for citizen engagement and how the current reform process is perceived among them. Sub-component 2.2: Guide to implementing open government principles and practices at the local level, with a view to fostering inclusion and diversity

Status of Implementation: Implementation has not started yetSub-component 2.3: National dialogue and capacity building programmes to promote a culture of open and inclusive government in local and regional councils and ensure effective implementation

Status of Implementation: Implementation has not started yetSub-component 2.4: Participation of Jordanian sub-national stakeholders in the regional and international dialogue on open and inclusive government

Status of Implementation: Implementation has not started yet


(US$)

(x)


(y)

Total (US$)


OECD: 1,827,150 USD OECD: 1,827,150 USD


OECD: 0 USD OECD: 0 USD


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)*Year Jan-June Jul-Dec Total by Year End2016 401,518 401,5182017 300,000 300,000 600,0002018 300,000 300,000 600,0002019 109,050 0 109,050

* Please note that the actual disbursements by calendar year may vary from the disbursement projections.


OECD: 122,850 USD 0 OECD: 122,850 USD


Project Development Objective (PDO): Support Jordan’s ongoing decentralisation efforts by promoting good governance and open government policies and practices across levels of government and with a focus on the municipalities.

PDO Level Results Indicators* Unit of MeasureBaseli

ne


Frequency

Data Source/

Methodology


Collection

Description (indicator definition etc.)Jan –

Dec 2016

F

Jan – Dec

2017F

Jan – Dec

2018F

YR 4F

Target

Indicator One: Number of assessments and guides completed and disseminated

Nr. of reports

0 1 2 3 3 AnnuallyProgress

report

Project Implementation Team (PIT)

OECD Reviews on the governance framework and

open government at the local level, Guide on

inclusive policy making

Indicator Two: Number of initiatives by the government and by civil society to implement OECD recommendations on good governance and open government

Quantitative


report


Initiatives such as awareness campaigns,

coordination mechanisms, dialogue with citizens etc

that promote open government and good

governance

Indicator Three: Number of CSOs, women or youth groups engaged and empowered at the central and local levels

Quantitative


report


Participation of CSOs, women and youth groups in outreach activities of municipalities and other

levels of government, number of CSOs, women and youth groups trained

on their rights and participation possibilities.


Intermediate Result (Component One): Building capacities in selected local institutions for inclusive and effective public service delivery in the context of decentralisation reform in JordanIntermediate Result indicator One: Number of initiatives by the government to implement OECD recommendations

Quantitative 0 3 6 9 9 AnnuallyProgress Report

Project Implementation

Team (PIT)

Number of initiatives such as legal changes,

procedural changes, new policies or processes to

enhance the decentralisation process.

Intermediate Result indicator Two: Number of initiatives by civil

Quantitative 0 3 6 9 9 Annually Progress Report


Team (PIT)

Number of initiatives such as awareness raising

campaigns, trainings to

society to implement OECD recommendations

promote decentralisation in Jordan

Intermediate Result indicator Three: Number of national dissemination events

Nr. of conferences 0 1 2 3 3 Annually

Progress Report


Team (PIT)

Number of national and international events to

disseminate OECD findings on decentralisation

Intermediate Result indicator Four: Number of public officials capable of working under the new conditions as established by the new laws

Nr. of public officials 0 80 160 240 240 Annually

Progress Report


Team (PIT)

Number of officials participating in capacity building and study tours

Intermediate Result indicator Five: Change in perception among public officials about the benefit of decentralisation

Perception Change - - -

Significant

change

Significant

change

At the beginning and end of

the project

Perception survey


Team (PIT)

Changing perception and understanding among

public officials at different levels of government about

the benefits of decentralisation

Intermediate Result (Component Two): Implementation support of Open Government principles and policies in local government in Jordan

Intermediate Result indicator One: Number of initiatives by the government to implement OECD recommendations



Team (PIT)

Number of initiatives such as procedural changes, new

policies or processes to enhance the participation of citizens in municipality

affairs.Intermediate Result indicator Two: Number of initiatives by civil society to implement OECD recommendations



Team (PIT)

Number of initiatives such as awareness raising

campaigns, trainings to promote open government

at the local levelIntermediate Result indicator Three: Number of international dissemination events

Nr. of conferences 0 1 2 3 3 Annually

Progress Report


Team (PIT)

Number of national and international events to

disseminate OECD findings on open government at the

local levelIntermediate Result indicator Four: Number of public officials capable of working under the new conditions as established by the new laws

Nr. of public officials 0 100 200 300 300 Annually

Progress Report


Team (PIT)

Number of officials participating in capacity building events on the 7 modules being able to

implement the Guide and OECD recommendations

Intermediate Result indicator Five: Change in perception among public officials about the importance on inclusion of women and youth

Perception change - - -

Significant

change

Significant

change

At the beginning and end of

the project

Perception survey


Team (PIT)

Changing perception and understanding among public officials at the

municipality level about the importance of including

women and youth in policy making and the public

administration

Jordan Economic Legislation Reform

A. Basic Project InformationActivity Name: Jordan Economic legislation Reform

Country Name:

Jordan

Name of Implementation Support Agency(ies):

World Bank


Najy Benhassine/Mohamed Baider


[email protected] ; [email protected]

Recipient Entity:

Ministry of Planning and International Cooperation

Ministry of Industry and Trade

Jordan Investment Commission


Zeina Toukan, MoPIC, [email protected]

Dr. Jawad Anani, Minister of industry and Trade

Thabet Elwir, President, Jordan Investment Commission, [email protected]


3,000,000




12/8/2015


1/1/2016


12/31/2018



Secondary Pillar(s): Investing in Sustainable GrowthCompetitiveness and IntegrationInclusive Development and Job Creation


The project will help the Government of Jordan to modernize critical laws and regulations governing business activities in line with international best practices and help introduce a sustainable mechanism for the quality of regulatory delivery. It is expected that the reformed regulatory environment for businesses would enable more private sector investments and jobs.

The project will also support the new WB Program-For-Results Operation “Economic Opportunities For Jordanians And Syrian Refugees” by implementing the investment climate reforms identified by the program.





Jordan Economic Legislation Reform (JELR) Project was approved for funding by the Deauville Partnership MENA Transition Fund on December 8, 2015. The project aims at: (i) modernizing critical laws and regulations governing business activities; and (ii) introducing a sustainable mechanism for the quality of regulatory delivery. One of the main goals of this Project is to improve investment climate for domestic and foreign investors in a sustainable manner.


The project conducted consultation with relevant stakeholders through focus group meetings to identify priority areas for reforms at the level of specific regulatory areas as well as at the level of generic business environment constraints. Priority areas were identified and agreed with the clients and stakeholders.

Support to the Jordan Compact. In the aftermath of the London Conference on “Supporting Syria” and the international community's agreement on the Jordan Compact, the WB has been asked to implement the economic opportunities aspect of the Compact. A Program-For-Results Operation “Economic Opportunities For Jordanians And Syrian Refugees” has been put in place. This program will support Jordan with 300 Million USD utilizing the MENA Concessional Financing Facility established by the international community to deal with situations of this nature. The aim of this program is to support the implementation of the Jordan Compact, in particular, the following pillars: (i) Investment Climate Reforms including trade; (ii) Labor Market Reforms; and (iii) Investment Promotion. Jordan Economic Legislation Reform (JELR) scope is aligned with the P4R program and will seek to support the implementation of the investment climate reforms identified by the program.

The project disbursement rate was low and progress was slightly delayed to accommodate the needed support for P4R and other urgent priorities. The project is in the process of procuring consulting services as planned and will accelerate the work during the second half of 2016 to compensate for the delays.



Business Regulations - Predictability framework MOPIC 6/30/2017

Export diversification note WB 12/31/2016


C. Implementation Status of Components Component 1: Prioritization and Preparation

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 500,000Sub-component 1.1: Prioritize business law for modernization


A structured and direct consultation process was conducted through focus group meetings with a variety of private sector representatives. The purpose of the Focus Groups discussions was to identify priority areas for reforms as seen by the private sector both at the level of specific regulatory areas as well as at the level of generic business environment constraints. Such structured approach is very informative for identifying bottlenecks and more systemic problems that hinder business development and investments.

This dialogue-centered approach also allows addressing issues of business environment not only through legislative changes but also through changes in institutional behavior, and, most importantly, implementation and enforcement of regulations. The most critical business environment constraint in Jordan relates to the unpredictability of changes in regulatory requirements and fees established by ministries and departments within, and sometimes outside, the framework of vague and contradicting regulations. Furthermore, this unpredictability is reinforced, as reported by private sector representatives, by apparent absence of some of these requirements in official registered legislative databases.

This problem is closely followed by the practice of collective decisions-making (using committees) by authorities

in regards to preapprovals, issuing permits, and other administrative formalities for businesses. Even if the applicant fully complies with all requirements, the committee decision may still be negative without a clear explanation of such decision. This further aggravates the perception of unpredictability of the business environment.

As for the specific regulatory areas, licensing regime appears to be the most severe constraint for business start-up, operations, and expansion. Specifically, the focus group participants mentioned issues related to frequent changes of fee schedules, high fees, the way fees are collected, as well as unclear regulatory purpose of introducing certain licenses. One type of licensing was singled out as the most problematic with unclear regulatory purpose, namely – municipally issued vocational license, which is mandatory to obtain for all registered businesses. ICT sector representatives named this generic license as the single most important constraint that impedes business development. The project validated the targeted business legislation for reform based on the government and private sector feedback. The list includes the following:

1. Business Entry and operationsa. Company’s laws 22 1997b. Investment Law 30, 2014c. Professions Licenses Law 20 of 1985d. Law of Craft and Industry no.16 of 1953

2. Tradea. Customs Law No. (20) of the Year 1998b. Prepare export diversification note

3. Competition a. Competition Law No. (33) For the year (2004) and related regulations

Export diversification note: The project has started consultation with Ministry on Industry and Trade to define the scope of the note. A proposal was drafted and will be discussed with the clients in late July.

Next Step:1. Prepare a comprehensive plan to support the project objectives as well as the P4R program supporting

Jordan to deal with the Syrian refugees’ crisis. 2. Prepare the export diversification note.

Sub-component 1.2: Enhancing the regulatory reform unit at the PM office.

Status of Implementation: This sub-component will be evaluated as a result to the government plan to establish a unit in MOPIC to support such reforms.

Sub-component 1.3: Communication strategy and M&E framework

Status of Implementation: Not started but next steps include:1. Develop a communication and outreach strategy 2. Support the government to develop an M&E framework to track relevant reforms.

Component 2: Comprehensive Assessment and implementation plan

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 1,500,000Sub-component 2.1: legislation review and reform implementation plan

Status of Implementation: The project has started a selection process to identify legal firm to review selected laws and relevant areas.

Next Step;1. Conduct a comprehensive legal review targeting selected laws and relevant areas.2. Identify clients’ needs and challenges to implement proposed reforms.3. Prepare draft implementation plan.

Sub-component 2.2: Capacity building assessment

Status of Implementation: The project will start Capacity building activities on September 2016

Component 3: Implementation and sustainability

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 1,000,000Sub-component 3.1: Reform implementation

Status of Implementation: This component will start on January 2017

Sub-component 3.2: Reform sustainability

Status of Implementation: The initial analysis revealed that regulation sustainability and predictability are major impediments investors face when starting and operating a business in Jordan. The project is analyzing the causes of such issues to determine the best possible solutions. A regulation predictability framework is being discussed with the government, which will include (among others) measure to ensure that new regulations are not implemented without proper consultations with stakeholders.

Next:1. Define the predictability framework2. Update the implementation plan with agreed framework.

D. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution (US$)

(x)


(y)

Total (US$)


3,000,000 3,000,000


3,000,000 3,000,000


21,248 21,248

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 600,000 6,00,0002017 700,000 700,000 1,400,0002018 600,000 400,000 1,000,000

2019


100,000 0 100,000


Project Development Objective (PDO): The project aims to support the Government of Jordan to modernize critical laws and regulations governing business activities in line with international best practices and help introduce a sustainable mechanism for the quality of regulatory delivery. It is expected that the reformed regulatory environment for businesses would enable more private sector investments and jobs.


Unit of Measure

Baseline


Frequency

Data Source/

Methodology



etc.)

Jan - Dec201

6F

Jan – Dec 2017 F

Jan – Dec 2018 F

YR 4 YR5

Indicator One: Adoption of a strategic plan to implement a new IC framework

Binary No Yes One time ISA

Indicator Two: Enhancement of the Reform Implementation Unit.


Indicator Three: Endorsement of a

new Public Private consultation partnership


Indicator Four: Endorsement of the regulatory impact assessment mechanism

Binary No No Yes One time ISA

Indicator Five: Regular meetings of a Public Private Dialogue group on Competitiveness and Investment.

Binary No Yes Yes Yes Yearly ISA

252


Intermediate Result (Phase One): Prioritization and PreparationIntermediate Result indicator One: Submission of recommendations for legal review targets.

Binary No No Yes One timeProject Reports

ISA

Intermediate Result indicator Two: Submission of private sector priorities report

Binary No Yes One timeProject Reports

ISA

Intermediate Result indicator Three: endorsement of the communication and M&E strategies.

Binary No Yes One timeProject Report

ISA

Intermediate Result (Phase Two): Assessment and Capacity Building

Intermediate Result indicator One: Submission of the legal assessment report

Binary No Yes One timeProject report

ISA

Intermediate Result indicator Two: Submission of the legal revision report

Binary No Yes One timeProject report

ISA

Intermediate Result indicator Two: Number of study tours to expose clients to relevant reform experience

Number No 1 2 1 4 timesProject report

ISA

Intermediate Result indicator Three: Number of participants in workshops on investment climate reforms.

Number No 50 50 100 YearlyProject report

ISA

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Intermediate Result (Phase Three): Reform Implementation Intermediate Result indicator One: Number of PPD workshop participants (public and private sector) to discuss competitiveness and investment climate.

Number No 30 30 30 YearlyProject Report

ISA

Intermediate Result indicator Two: Monitoring and evaluation reports prepared and published regularly on schedule.

Binary No n/a Yes Yes YearlyProject Report

ISA

MENA TF Indicators

Government bodies, institutions and local government units received support services

Number No 5 13 YearlyProject report

ISA

Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed


ISA

Regulations or laws endorsed or entities, units or systems established

Number No n/a 3 2 YearlyProject report

ISA

Public sector staff trained in various aspects of Investment Climate reform


ISA

254

Youth in Public Life: open & Inclusive Youth Engagement – Jordan ActivitiesA. Basic Project Information

Activity Name: Jordan Youth in Public Life: Towards open and inclusive youth engagement


Name of ISA Project Leader: Andreas Schaal; Miriam Allam


Recipient Entity: Ministry of Youth (former Higher Council for Youth)

Name and Email of Recipient Entity Contact: Mr. Rami Wreikat, [email protected] / Ms. Fatima Al-Harasis, [email protected]





5/30/2016


9/1/2016


8/31/2019





The project will support Jordan in building stronger mechanisms for youth engagement and mainstreaming their considerations in public life through: (i) Fostering an integrated approach to youth engagement in public life in Jordan; (ii) Scaling up the institutional and legal framework for youth engagement in youth bodies and Parliament; and (iii) Promoting new forms of youth engagement.

The first objective is to promote an integrated approach to the engagement of young men and women in public life in Jordan. To ensure a coherent approach in young people’s civic and political engagement as put forward in the National Youth Strategy 2016-18, which still awaits final approval, the project will contribute to strengthening relevant framework conditions (e.g. legal, policy, institutional, organizational parameters).

The second objective is to scale up the institutional and legal framework for inclusive youth engagement in public life. Based on the existing opportunities for young people to interact and partner with the government, it will contribute to the operationalization of youth representative bodies (e.g. Youth parliaments), present similar arrangements (e.g. Youth councils) and foster their direct involvement in the activities of the Parliament.

The third objective is to promote new forms of youth engagement to mainstream youth considerations in public policies and governance. OECD assistance will explore new forms for a more inclusive youth-government dialogue (e.g. via digital technologies) and increase the quality of coordination among youth associations and civil society for a stronger voice and impact vis-à-vis the government.

The project with Jordan is part of a regional project which will benefit stakeholders in Morocco, Tunisia and Jordan.

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Not Applicable



The project was approved by the Steering Committee of the MENA Transition Fund on 30 May 2016 in Rabat. On 1 June 2016, King Abdullah II swore in a new government led by new Prime Minister Hani Mulki who is replacing Abdullah Ensour following the dissolution of the parliament. As part of the cabinet reshuffle, the Ministry of Youth, which had been cancelled in May 2012, was reintroduced in the new government replacing the Higher Council for Youth. The Ministry is led by Minister Rami Wreikat.

Throughout June, the OECD has engaged in close consultation with the focal points for the project in the former Higher Council for Youth to prepare the official kick-off in September 2016. The OECD team was informed that the cabinet reshuffle is neither expected to have a major impact on the internal organization of the former Higher Council for Youth nor on the overall distributing of roles and responsibilities for the delivery of youth policy in Jordan. On the contrary, the upgrading to the status of a Ministry shows the high priority of youth concerns for the government. The Ministry and the OECD team are currently fine-tuning the project activities in line with the priorities of the new Ministry and the National Integrated Youth Strategy 2016-18.

For this purpose, the OECD will organize a first coordination meeting in September 2016 with the project partners from Jordan, Morocco and Tunisia to (a) identify and set up the implementation mechanisms for the project (e.g. Project Working Group); (b) agree on a timeline for the delivery of the project activities; and (c) reach out to non-government stakeholders (e.g. civil society, youth associations, youth activists) to involve them throughout the project. An official launching conference at high political level will take place in Amman in late 2016.

All key implementation partners have demonstrated strong commitment to ensure a timely and successful implementation of the project to maximize the expected outcomes. The project has been presented to relevant donors, and the OECD is in continuous contact with them to create synergies. In addition, the project has been presented to OECD member countries as part of the policy dialogue of the MENA-OECD Governance Programme.

The OECD has continued to reach out to international experts (e.g. Chatham House), peers and NGOs (e.g. European Youth Council) to partner up in the implementation of project activities and identify good practices in both OECD and MENA countries.






C. Implementation Status of Components Component 1: Fostering an integrated approach to youth engagement in public life in Jordan

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The project will contribute to the implementation of youth engagement/democratic empowerment component of the National Youth Strategy 2016-2018. It will promote an inclusive approach featuring all relevant stakeholders both at the central and local level to discuss existing frameworks and mechanisms, evaluate their efficiency and promote a joint-up approach to involve youth throughout the policy cycle.

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 507,878Sub-component 1.1: National dialogue to foster youth’s civic and political engagement as put forward in the National Youth Strategy 2016-2018Status of Implementation: N/A (The Ministry of Youth and the OECD are preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 1.2: Capacity building for an integrated approach to the engagement of young men and women in public life

Status of Implementation: N/A (The Ministry of Youth and the OECD is preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 1.3: Regional conference for MENA countries on the formulation and implementation of national youth strategies [Regional component]

Status of Implementation: N/A (The Ministry of Youth and the OECD is preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)

Component 2: Scaling up the institutional and legal framework for youth engagement in representative youth bodies and Parliament

The project will stress the importance of scaling up institutional and legal frameworks for a more effective and inclusive engagement of youth at the national, regional and community level. This relates to the access and quality of youth representative bodies (e.g. youth parliaments, youth councils) and other forms of increasing youth ownership in the development of their country and region. Furthermore, this Component will focus on youth inclusion in the activities of the national Parliament and their direct impact on legislative decision-making.

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 197,413Sub-component 2.1: Capacity building to strengthen the institutional framework for youth engagement in representative youth bodies and Parliament

Status of Implementation: N/A (The Ministry of Youth and the OECD is preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 2.2: Regional conference for MENA countries on the institutional and legal framework for inclusive youth engagement in public life [Regional component]


Component 3: Promoting new forms of youth engagement

Low levels of traditional or conventional forms of participation (e.g. membership in political parties, voting) in Jordan and elsewhere point to an increasing disappointment among youth with existing mechanisms to drive

257

change. For public officials, the variety and new behaviour patterns present both a challenge and an opportunity to reach out and foster inclusion. A set of new skills, tools and mechanisms will be required to interact with youth in both online and offline networks and communicate in a clear manner how their ideas have been taken into account. Through an exchange between public officials and youth representatives, this component will foster a joint understanding among both sides for ways to exploit non-traditional and innovative forms of engagement. This component is complementary to the efforts aiming at strengthening conventional forms of engagement.

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 503,439Sub-component 3.1: Capacity building to disseminate innovative tools, mechanisms and channels for youth engagementStatus of Implementation: N/A The Ministry of Youth and the OECD is preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 3.2: Good practice guide to engage youth through innovative forms of participation in policy-making and public governance

Status of Implementation: N/A (The Ministry of Youth and the OECD is preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 3.3: Regional dialogue on innovative forms of youth engagement in policy-making and public governance



(US$)

(x)


(y)

Total (US$)


1,208,730 1,208,730


0 0


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)*

Year Jan-June Jul-Dec Total by Year End2016 0 100,000 100,0002017 225,000 225,000 550,0002018 225,000 175,000 950,0002019 175,000 83,730 1,208,730



258

0 81,270 81,270

259


PDO: Support Jordan in building stronger mechanisms for youth engagement and mainstreaming their considerations in public life


Cumulative Target Values Frequency Data Source/Methodology

Data Collection Responsibility

Sep 2016 – Aug 2017

F

Sep 2017 – Aug 2018

F

Sep 2018 –

Aug 2019

F

Target

Number of Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Nr. of reports 0 0 1 2 2 Annually Progress Report


Team (PIT)

This will include 1 strategic manual, and one good practice guide.

Number of CSOs, women or youth groups engaged and empowered by the local government



Team (PIT)

Number of youth associations engaged in processes of public consultation / decision-making at the local level

Number of national institutions, regions, municipalities and youth associations mobilized in youth engagement in public life.



Team (PIT)

National and local institutions encouraging youth engagement in public life participating in project activities

Public sector staff trained in engaging youth in public life



Team (PIT)

Number of public officials from the central and local level participating in the capacity building seminars

Improved enabling environment and government capacity to implement the National Youth Strategy



Team (PIT)

Number of initiatives undertaken by the government such as legal, institutional, policy or procedural reform and activities to implement the Strategy.

Specific/special stakeholder groups engaged in the elaboration, implementation and monitoring of youth policies



Team (PIT)

Number of initiatives undertaken by central and local authorities to strengthen representative youth bodies and youth participation in Parliament


Component 1 – Fostering an integrated approach to youth engagement in public life in Jordan

Number of national dialogues/advisory sessions + strategic manuals produced and endorsed

Quantitative 0 2 3 3 3 Annually Progress Report Project

Implementation Team (PIT)

National dialogue/Advisory sessions + Strategic manual

Number of capacity-building seminars Quantitative 0 1 2 2 2 Annually Progress Report Project


Two capacity building seminars to promote a whole-of-government approach to the implementation of the National Youth Strategy

Number of regional conferences Nr. of conferenc

es

0 1 1 1 1 Annually Progress Report


Team (PIT)

1 regional conference with high-level youth stakeholders from Morocco, Tunisia, Egypt and Jordan and the MENA region to exchange on the progress made in formulating and implementing their

260

respective national strategies

Component 2 –Scaling up the institutional and legal framework for youth engagement in representative youth bodies and Parliament



Two capacity-building seminars

Number of regional conferencesNr. of

conferences

0 0 1 1 1 Annually Progress Report Project Implementation

Team (PIT)

1 regional conference with high-level youth stakeholders from Morocco, Tunisia, Egypt and Jordan and the MENA region to exchange on the institutional and legal framework for inclusive youth engagement in public life


Nr of initiatives 0 0 1 3 3 Annually Progress Report Project


Number of initiatives to strengthen representative youth bodies and youth participation in Parliament

Component 3 – Promoting new forms of youth engagement




Number of guides produced and endorsed

Nr of guide 0 0 0 1 1 Annually Progress Report


Team (PIT)

Good Practice Guide featuring good practice examples to engage youth in non-traditional forms of participation in policy-making, public service delivery and public governance

Regional dialogue on innovative forms of youth engagement

Nr of events 0 0 0 1 1 Annually Progress Report


Team (PIT)

1 regional conference with youth stakeholders from the MENA region (in particular MOR, TUN, JOR, EG) to discuss innovative forms of youth engagement in policy-making and public governance.

261

Strengthening Municipal FM Systems in Municipalities Affected by Refugee Crisis

A. Basic Project InformationActivity Name: Strengthening municipal financial systems to sustain service delivery in municipalities affected by the refugee crisis.

Country Name:

Jordan


World Bank


Rama Krishnan Venkateswaran; Jad Mazahreh; Anya Vodopyanov


[email protected]; [email protected]; [email protected]

Recipient Entity:

Ministry of Municipal Affairs


Waleed Al Masri, Minister of Municipal Affairs, +96264640404


3,050,000



0


5/30/2016


9/1/2016


8/31/2019



Secondary Pillar(s): Inclusive Development and Job CreationInvesting in Sustainable GrowthCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of the project is to strengthen the financial management systems and service delivery capacities of select Jordanian municipalities. Under this broad objective, the project sets out four specific goals: to improve the effectiveness and impact of municipal spending; to improve municipalities’ transparency and accountability to local communities-beneficiaries; to strengthen municipalities’ capacity to mobilize own revenues; and to improve municipalities’ debt management and (in the longer term) solvency.

Rating for progress towards achievement of objective: Not Applicable


Brief Summary of Project Implementation Status: Implementation is on track to begin in September 2016.

Actions to be Taken Responsible Party Expected Delivery Date Click here to enter a date.




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Component 1: Strengthening Municipal FM systems and CapacitiesPrevious Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 950,000Sub-component 1.1: Programmatic PEFA Assessment of target municipalities


Sub-component 1.2: Design of financial management systems to improve efficiency


Sub-component 1.3: Mobile Teams to provide hands on TA and advisory support


Sub-component 1.4: Training to Municipal Officials on Change Management and Municipal Financial Management


Component 2: Improving the Transparency and Accountability in Municipal GovernancePrevious Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 800,000Sub-component 2.1: Strengthening Transparency through information sharing

Status of Implementation: Not Started

Sub-component 2.2: Strengthening Grievance Resolution Systems


Sub-component 2.3: Improving the quality and timeliness of municipal audits


Sub-component 2.4: Strengthening Citizen Engagement in Municipalities


Component 3: Strengthening Local Revenue MobilizationPrevious Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 500,000Sub-component 3.1: Strengthening Revenue Administration


Sub-component 3.2: Preparation of Revenue Manuals and Capacity Building of Municipal Staff

Status of Implementation: Not stared

Component 4: Financial Sustainability of Municipalities through improved Debt ManagementPrevious Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 500,000Sub-component 3.1: Analysis of existing debt situation of Municipalities and training in debt management


263

Sub-component 3.2: Preparation of Financial Recovery Plans

Status of Implementation: Not stared


(x)


(y)

Total (US$)


0 3,000,000 3,000,000


0 0 0

Actual Amount Disbursed (c): 0 3,000,000 3,000,000

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 300,000 300,0002017 600,000 600,000 1,200,0002018 500,000 500,000 1,000,0002019 400,000 100,000 500,000


0 50,000 50,000

264


Project Development Objective (PDO): The objective of the project is to strengthen the institutional and financial systems and capacities of selected municipalities in Jordan to improve local service delivery .


Unit of Measure BaselineCumulative Target Values**



Collection


YR 1 YR 2 YR 3

Indicator One: improved efficiency of public financial management (PFM) in municipalities

No. of municipalities with Improved percentage of budget execution compared to the previous year

TBC NA 8 16 Annual from Year 2

Project Progress reports

Task Team Improved percentage of budget execution compared to the previous year

Indicator Two: Improved transparency and accountability to local communities-beneficiaries.

No of municipalities with an annual audit completed

none TBC 8 16 Annual from year 2


Task Team Annual Audits completed

Indicator Three Government Bodies and Institutions (including Local Governments Supported)

No of Municipalities receiving technical and capacity support services through mobile teams

none NA 8 16 Annual from year 2


Task Team Mobile teams providing advisory and capacity support services directly to municipalities


Intermediate Result (Component One): Strengthening municipal financial management systems and capacities.

Intermediate Result indicator One:

No of municipalities with capital investment plans

none 6 10 15 Annually Project Progress reports

Task Team CIPs prepared according to PIM guidelines


No of municipalities with staff trained in Financial Mgmt

TBC 10 16 20 Annually Project Progress reports

Task Team training courses, workshops, exposure visits to learn good practices on municipal financial mgmt

Intermediate Result (Component Two): . Improving the Transparency and Accountability in municipal governance


No of municipalities uploading their financial reports on their website

TBC 6 10 15 Annually Project Progress reports

Task Team existing websites improved and reports uploaded periodically


No of municipalities with participatively prepared annual plans

TBC NA 6 12 Annual from year2


Task Team Capacity support provided to Audit Bureau to plan and implement audits

Intermediate Result (Component Three): Strengthening Local Revenue Mobilization and Management


Revenue Administration Manual prepared

None 8 12 20 Annual Project Progress reports

Task Team Based on existing systems and incorporating good international practices


No of municipalities with staff trained in Local Revenue management

None 8 12 20 Annual Project Progress reports

Task Team training courses, workshops, exposure visits

Intermediate Result (Component Four): Strengthening Financial Sustainability of Municipalities through improved debt management.


No of municipalities with staff trained in debt Management

None NA 12 20 Annual from year2


Task Team training courses, workshops, exposure

visits

265


No of municipalities with financial recovery plans prepared

None NA 8 12 Annual from year2


Task Team TA and advisory support provided to municipalities to maintain debt records

systematically

266

Libya Projects

267

SME Development Strategy for Libya

A. Basic Project InformationActivity Name: SME development strategy for LibyaCountry Name: Libya Name of Implementation Support Agency(ies): OECDName of ISA Project Leader: Andreas Schaal, Pilar Sanchez-Bella

Email of ISA Project Leader: [email protected] , [email protected]

Recipient Entity: Libya Enterprise Name and Email of Recipient Entity Contact: Dr Abdelnasr Abouzkeih; email: [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 700,000

Total Amount Disbursed (Direct and Indirect in US$): 1,669,571 USD


Project Implementation Start Date:July 1, 2013

Project Closing Date:30 September 2016



Enhancing Economic GovernanceChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: To develop a SME strategy and strengthen the overall legal and institutional framework for promoting entrepreneurship and high-potential SME’s in Libya.

Rating for progress towards achievement of objective: Moderately UnsatisfactoryRating for overall implementation progress: Moderately UnsatisfactoryBrief Summary of Project Implementation Status:

In December 2015, given the ongoing conflict in Libya, it was agreed to focus on component 1 and put on hold the rest of the project until a unity government was in place. As of the date of the present project report, component 1 has been successfully completed. The diagnostic is pending final production and will be launched formally in October.

In the last progress report, components 2, 3, 4, and 5 were downgraded to “moderately unsatisfactory” due to delays in implementation resulting from the political uncertainties as well as the security situation in Libya. No changes have been made to the latest rating of the project.

Nevertheless, it must be noted that some progress was achieved since December 2015 on components 2, 3 and 4. In particular, the basis for the SME strategy has been developed through the diagnostic, which includes recommendations for a future strategy on vertical and horizontal policies, as well as the institutional framework (sub-components 2.1, 2.2 and 2.3). Regarding the legal framework, the gap analysis was undertaken within the diagnostic taking into account the inputs from the 2015 stakeholders’ consultation (sub-component 3.2). Finally, some activities took place to support implementation capacity (component 4): two officials participated in the training courses organized by the OECD and the IMF Center for Economics and Finance (Kuwait, May 2016), and Libya Enterprise participated in the regional conference on resilience organized by the OECD (Beirut, May 2016).

During the past 6 months, the OECD has been closely monitoring the situation in Libya. A UN-brokered

268



agreement brought into being a Government of National Accord, which is gradually establishing itself. The OECD is consulting with other partners –such as Expertise France, UNDP and the AfDB– to assess the latest developments. The OECD participated in a donor workshop organized by the German government, which gathered the German BMZ, DIE, the World Bank, the EU external service, ECFR, Expertise France, UNESCWA, UNICEF, KfW and other think tanks (Berlin, March 2016). Most organizations are still waiting to see how the situation evolves before re-engaging and returning to Libya. An EU-funded project on economic diversification to be implemented by Expertise France was reactivated in March 2016. Despite positive developments since the signing of the UN-brokered agreement and the creation of a Government of National Accord, there was much scepticism regarding its likelihood to succeed. Another common approach has been to focus on the work with municipalities, who have become the most reliable institutions given the division of the central government since 2014.

The OECD organized a workshop with Libya Enterprise representatives to discuss their final comments on the SME diagnostic and to assess next steps (Paris, June 2016). With all elements taken into consideration, the OECD is discussing with Libya Enterprise potential ways forward. Given that several project activities have been on hold in response to the prevailing country context and that the project is technically coming to an end in September, the project cannot be completed as originally planned and some project activities planned originally seem no longer feasible. One option that is being considered is to restructure the project, including an extension. Preliminary discussions seem to indicate that it would be advisable to prioritize activities based on the current country needs, focus on activities that can lead to concrete outputs, and use implementation modalities adapted to country circumstances (e.g. difficulties to travel to Libya). A final decision will be taken in consultation with the Libyan authorities during the month of July.


Take decision to either restructure and extend the project or cancel it and communicate to the MENA TF Steering Committee.

OECD/Libya Enterprise 7/31/2016

C. Implementation Status of Components Component 1: Component 1 – Diagnostic Study - aims at developing a common understanding of private sector development in Libya and main issues on the demand- and supply side as to inform the drafting of a SME strategy and more in-depth analysis. This diagnostic study consists of several sub-sections including analysis on macroeconomics and the enabling environment (sub-component 1.1), business and investment climate (sub-component 1.2), sector competitiveness (sub-component 1.3), and a SME policy assessment (sub-component 1.4), and a knowledge and policy forum (sub-component 1.5). The analysis also aims to reflect the ramifications of the current conflict in Libya.



Cost (US$): 790,000

The SME Diagnostic has been finalized during the past 6 months taking into account the inputs from the workshop in Istanbul on July 2015, and the final delivery from expert consultants on legal reviews, economic diversification, and SME development.

Based on the final output, a key decision was taken to upgrade the report and publish it as an official OECD Public Affairs and Communications Department (PAC) publication. This entails an in-depth peer review

269

process involving several OECD directorates, as well as from delegates from an OECD Member country as well as from the MENA region. The two countries reviewing the report were Tunisia, through Mr. Saddok Bejja (Director General, Direction Générale de la Promotion de PME), and Italy, through Ms. Maria Ludovica Agro (Director General for Industrial Policy and Competitiveness, Ministry of Economic Development) and Ms. Benedetta Francesconi (Head of Office for International Policies, Directorate general for industrial policy and SMEs, Ministry of Economic Development). Being a PAC publication, Libya’s SME Diagnostic will be fully disseminated through the OECD formal channels, which will ensure wider reach and provide more visibility to the project.

The final diagnostic was also discussed in depth with Libya Enterprise counterparts, which provided detailed comments and recommendations. Comments were provided and discussed in a workshop in Paris (June 2016).

Libya’s SME diagnostic will be launched at the MENA-OECD Ministerial Meeting in October 3-4 to obtain maximum visibility. It will be one of the main publications presented at the Resilience and Fragility forum, together with a report on the OECD’s Iraq project on investment policies. A high-level delegation from Libya will participate to discuss the diagnostic’s findings and the challenges of developing SME policies in times of conflict.

Sub-component 1.1: Macro-economic and enabling environment analysis - One of the main components of the diagnostic study is to analyse the major framework conditions for private sector development in Libya. Among these conditions, an analysis of structural and current macroeconomic trends is being undertaken, as well as an analysis of broad enabling environment building blocks including infrastructure (roads, power, ICT), the education and skill system, as well as the innovation system. The impact of the current conflict on these elements is also being assessed.

Status of Implementation: The chapter has been finalised.

Sub-component 1.2: Business and investment climate analysis - The Business and Investment Climate analysis will provide an analysis of the impact of the overall legal and institutional framework regarding SMEs in Libya and identifying the major constraints for SMEs accordingly, thereby completing information already provided by other organisations, such as the World Bank. The Study will cover in this regard aspects of ease of doing business, tax and labor regulations, but also competition and the investment framework for domestic and international investors.


Sub-component 1.3: SME policy analysis - The analysis looks at SME development from a demand-side and supply-side perspective. First, it is analysing the SME sector in Libya. Furthermore, it is focusing on the assessment of SME development policies and programmes in Libya based on a number of dimensions included in the SME Policy Index, a tool developed by the OECD and partner organisations (European Commission, the European Training Foundation, and the European Bank for Reconstruction and Development) to assess SME policies in the southern Mediterranean neighbourhood countries.


Sub-component 1.4: Sector competitiveness study - Following an established methodology, the OECD will analyse priority sectors against their potential positive impact on the Libyan economy and investment climate.

270

Status of Implementation: The chapter has been finalised; the final version was merged within the chapter analysing framework conditions.

Sub-component 1.5: Knowledge and policy forum - This Forum will serve to discuss and inform the relevant stakeholders in the Libyan Government about the output of the diagnostic component. A series of workshops integrated into the forum will yield a crucial input for the next component, developing the Libyan SME development strategy.

Status of Implementation: The knowledge and policy forum was held in Istanbul during the last reporting period. It gathered over 40 experts from the public and private sector, OECD member countries, and MENA countries.

Component 2: Libyan SME development strategy: This component will be implemented by the OECD with the assistance of and in close collaboration with Libya Enterprise. Major stakeholders in Libya will be actively involved in the actual development and drafting of the strategy with the aim of an eventual adoption by the Government of Libya. The overall approach of the strategy is to use an output of Component 1 to develop and prioritise two kinds of policies: productive development policies targeting specific sectors and/or areas (vertical policies) and business climate enhancing policies (horizontal policies).



Cost (US$): 500,000

Although political developments in Libya during the past semester seem to go in a positive direction, the security situation has not allowed for further advancement of this component. The approach taken during this semester was to build on the SME Diagnostic so it could serve as basis to draft an SME strategy once a unity government is in place. The SME Diagnostic was in fact finalized including sections and recommendations with this view. It includes recommendations on the process, the content and the format of a future SME strategy. Inputs from the previous forum in 2015, which included about 20 Libyan representatives from the public and private sector, were taken into account.

Activities on this component beyond the analytical part linked to the diagnostic were put on hold.

Sub-component 2.1: Development of horizontal policies - This activity is to develop, evaluate, and prioritise measures to develop the overall business climate for SMEs. It will be executed by the OECD with an input from Libya Enterprise.

Status of Implementation: Existing horizontal policies for SMEs are analysed in the SME Diagnostic, together with recommendations based on other countries’ experiences for a future strategy.

Sub-component 2.2: Development of vertical policies - This activity looks at the output of the sector competitiveness analysis from Component 1. It is being executed by the OECD and Ms Lois Stevenson, with inputs from Libya Enterprise.

Status of Implementation: Existing vertical policies for SMEs are analysed in the SME Diagnostic, together with recommendations based on other countries’ experiences for a future strategy.

Sub-component 2.3: Development of an institutional framework - This activity aims at mapping out the roles and responsibilities of institutions involved. In line with its mandate, it will position Libya Enterprise as a

271

coordinator of all policies related to SME development. The structure and capacities of Libya Enterprise will be evaluated to produce recommendations on how the agency could best be structured to assume this coordinating role.

Status of Implementation: The institutional framework is analysed in the diagnostic, which includes recommendations going forward.

Sub-component 2.4: Preparation of the strategy and presentation to the Government of Libya - This activity will develop and pilot a solid, regular and broad consultation mechanism for the acceptance, implementation, modification, and evaluation of the SME development strategy.

Status of implementation: This component has been put on hold. Now that there is a unity government, the team is exploring the feasibility of reactivating it. However, as long as the current security conditions do not improve significantly, consultations will need to take place in the close vicinity of Libya.

Component 3: Legal framework for enterprise creation and growth: This component will aim at the development of a series of complementary legal acts aimed to facilitate the implementation of the objectives in the strategy on the basis of existing laws and regulations.



Cost (US$): 275,000

Concrete discussions around possible new laws will hinge on the evolving political situation in Libya and the Government of National Accord fully operational, including the capacity to enact legislation and issue other regulations (through the Parliament and responsible institutions).

Sub-component 3.1: Broad consultation of stakeholders and good practices - The component starts out with a broad review of the structure of similar legislation in MENA countries and OECD members with a particular emphasis on the best practices.

Status of Implementation: The 2015 forum addressed best practices examples on laws and regulations from several OECD and MENA countries. No additional activities took place during the last semester.

Sub-component 3.2: Gap Analysis - The theoretical framework for good practices will be evaluated against existing Libyan legislation and the extent to which the legislation is implemented. The gaps will be analysed and the ways to amend such gaps in the most efficient manner given the existing legal framework will be proposed.

Status of Implementation: The senior consultant Hanan El-Nuweisri completed the analysis on laws and regulations pertaining to competition, investment regimes and related business regulations and laws. The findings had been discussed and presented in the 2015 forum. The final analysis has been incorporated into the SME diagnostic.

Sub-component 3.3: Development of complementary legal acts - After identifying the gaps that need to be filled, the legislation and the legislative amendments to fill those gaps will be drafted in close consultation with relevant authorities.

Status of Implementation: This sub-component is subject to the existence of an adequate institutional framework allowing for the possibility of legal reforms or something along these lines.

272

Component 4: Assistance in implementation: This component aims at assisting the implementation of the SME development strategy. It also targets areas that the Libya Enterprise considers to be strategic and important to ensuring success in the implementation of the overall strategy. In particular, the component will also help to institutionalise and align initiatives already underway or in planning, such as the Enterprise Development Centres.


Current Rating: Moderately unsatisfactory

Cost (US$): 575,000

In order to strengthen Libyan institutional capacity and integrate them in relevant networks, Libyan officials have been invited during the period of the progress report to several trainings and meetings conducted by the OECD in the context of the MENA-OECD Investment Programme. In particular:

1) Participation in regional working groups: Libya Enterprise actively participated in the regional conference on resilience and the role of the private sector (May 2016, Beirut). The Head of International Co-operation from the Ministry of Labour participated in the meeting of the MENA-OECD Business Integrity Network (April 2016, Paris).

2) Trainings by the OECD in collaboration with the IMF Center for Economics and Finance in Kuwait: two public officials (one from the Ministry of Planning and one from the Ministry of Finance) participated in a high-level course on competitiveness (May 2016).

Future capacity building efforts will be closely aligned with the elements included in the draft SME strategy. Activities might include trainings, participation in OECD MENA working groups and study tours.

Sub-component 4.1: Establishment of the institutional structure - The project will assist Libya Enterprise and related institutions in setting up the appropriate institutional structure to implement the project and build up the appropriate capacities.

Status of Implementation: This and other subcomponents will be elaborated and detailed as part of the follow-up work under Component 2 in a post-conflict environment, and depending on the demand of the unity government.

Sub-component 4.2: Development of regional business centers - This activity will ensure that the structure, mandate, and priorities of regional business centers - key elements in the implementation of any SME development strategy - are in line with the SME development strategy.

Status of Implementation: Ibid.

Sub-component 4.3: Development of the incubator network - This activity will help to develop a department within the most appropriate institution or ministry (that remains to be identified). This department will be responsible for developing incubators, coaching employees and trainers, in full alignment with the overall SME development strategy.


Sub-component 4.4: Establishment of an advisory competitiveness council - This activity aims at establishing and institutionalising an advisory competitiveness council depending on the need of the beneficiary. A report

273

on the bylaws, the institutional structure and the mandate will be produced based on worldwide experience from, inter alia, Egypt, Sweden, and Turkey, and the particular needs of the Libyan advisory competitiveness Council.


Sub-component 4.5: Assistance in the implementation of the legal framework - This activity supports an implementation of the structural and procedural framework developed under Component 3, providing targeted coaching and training sessions, depending on the needs of the beneficiary institutions.


Component 5: Access to finance for SMEs: The OECD, in potential collaboration with the IsDB which supports the establishment of the SME development fund, will lead efforts on addressing a funding gap in the Libyan SME sector. The component has been designed to complement the planned project of the Libyan government with IsDB to set up regional SME development funds, with assistance from the IsDB under the aegis of the Libyan Ministry of Economy.

The OECD is analysing how to best target the substantial systemic risks which the Libyan financial system is facing including the dominance of state-backed assets (over 96% of loans). A first step was taken through discussions of the systemic failures in the Libyan financial system with the Central Bank and the Ministry of Finance officials during a September 2013 mission. These discussions were the outcome of the raising awareness training the OECD offered on sovereign guarantees and equity-backed mechanisms for SME and investor projects. The Central Bank has requested that a similar, more extensive training be provided to higher levels of political authority, with the objective of bringing this topic more to the attention of policy makers.

The sub-components of this component were kept for this progress report, but future discussion with IsDB and the Libyan counterparts might lead to adjustments in their nature. One option in particular is to complement existing and planned debt support mechanisms with equity mechanisms designed to target high-risk projects with high potential social returns, such as investment into manufacturing of a kind not already established in the country, or products liable to contribute to the diversification of the export basket.

While a concept note has been developed, the technical work is currently on hold (due, in part, to instabilities and current funding constraints holding up the launch of the SME regional funds).



Cost (US$): 300,000

Sub-component 5.1: Assessment and assistance for the establishment of venture capital fund for SME projects and start-ups.

Status of Implementation: Given the budgetary constraints in Libya and the situation in the country, the SME funds initiative has been put on hold.

Sub-component 5.2: Assessment and assistance for the establishment of an SME financing bank.

Status of Implementation: Given the budgetary constraints in Libya and the situation in the country, the idea to establish a SME bank has been put on hold.

274

D. Disbursements of Funds for Direct Project Activities Country-Execution (US$) (x)

Direct Cost for ISA-Execution (US$)(y)

Total (US$)


OECD: 2,451,192 USD


OECD: 1,472,586 USD


OECD: 1,504,763 USD

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 Project on hold



276

G. Results Framework and Monitoring 32

Project Development Objective (PDO): To develop and strengthen the overall legal and institutional framework for promoting entrepreneurship and high-potential SME’s in Libya.

PDO Level Results Indicators Unit of

MeasureBaseline


Frequency

Data Source/

Methodology


Collection


definition etc.)Jul 2013 – Jun 2014

A

Jul 2014 – Jun 2015

A

Jul 2015 – Sep 2016

F

YR 4

F

YR5

F

Indicator One: Improvement in SME Policy Index value

TBC TBC TBC TBC TBC Once a year

OECD report PIO Ranking of different aspects of good practice SME policy

Indicator Two: Improvement in the Global Competitiveness Report

Ranking 106 of 144 (2012-2013)

108 126 120 115 110 Once a year

Global Competitiveness Report

PIO Composite competitiveness ranking

Indicator Three: Improvement in the dimension Business Sophistication of the Global Competitiveness Report

Ranking 116 of 144 (2012-2013)

131 135 130 125 120 Once a year


PIO Sub-component of GCR rating the level of professionalism among businesses

Indicator Four: Improvement in the dimension Business Innovation of the Global

Ranking 129 of 144

125 120 110 Once a year


PIO Sub-component of GCR ranking levels of

32 Nota bene: Due to the conflict in Libya, actual PDO Level Results indicators on all dimensions have actually worsened. The relationship between project impact and impact of the conflict is therefore hard to measure. However, it is clear that targets can only be reached in the context of the improvement of the overall situation. This also relates to intermediate outcomes, many of which needed to be postponed.

277

Competitiveness Report innovation (patents etc.)

Indicator Five: Improvement in the index of economic freedom

Ranking 175 of 178

170 160 150 Once a year


PIO Degree of openness of the economy for SME’s and other investors


Intermediate Result (Component One): Deepened common understanding among stakeholders as to the priorities for SME development in Libya.

Results Unit of measure

Baseline YR1 YR2 YR3 YR4 YR5 Frequency

Data Source ResponsibilityDescription

Intermediate Result indicator One: Number of participants in the Knowledge and Policy Forum.

Number 0 0 30-40

Once Forum report MENA-OECD

Forum in Istanbul 29/30

of July

Intermediate Result indicator Two: Formal acceptance of all outputs.

Yes/No No No No Once Interim report MENA-OECD

Intermediate Result (Component Two): Acceptance and adoption of the SME development strategy.




Intermediate Result indicator One: Acceptance of the strategy by the PSC/Government

Yes/No No No No Once Interim report MENA-OECD N/A

Intermediate Result indicator Two: Adoption of the strategy

Yes/No No No No Once Interim report MENA-OECD N/A

Intermediate Result (Component Three): Adoption of complementary legal acts.

278




Intermediate Result indicator One: Acceptance of complementary legal acts

Yes/No No No No Once Interim report

MENA-OECD

Intermediate Result indicator Two: Formal adoption of at least two legal acts as proposed by the Project

Number of acts

adopted

0 0 0 Every six months

Interim report

MENA-OECD

Intermediate Result (Component Four): Considerable progress in the implementation of the SME development strategy.



Data Source Responsibility Description

Intermediate Result indicator One: Adoption of institutional structure

Yes/No No No No Once Interim report

MENA-OECD

Intermediate Result indicator Two: At least five additional Enterprise Development Centers are operational.

Number of EDC

TBC 0 0 5 Every six months

Interim report

MENA-OECD

Intermediate Result indicator Three: At least five additional incubators are operational.

Number of

incubators

TBC 0 0 5 Every six months

Interim report

MENA-OECD

Intermediate Result indicator Four: Competitiveness Council established and at least three meetings held.

Number of formal meetings


Meeting reports

Libya Enterprise

Intermediate Result indicator Five: At least three sectoral development plans developed.

Number of

approved sectoral

development plans


Interim report

MENA-OECD To be Approved by

the PSC/Governme

nt

279

Intermediate Result (Component Five): Considerable improvement in access to finance for Libyan SMEs.




Intermediate Result indicator One: VC fund investment

Length of balance

sheet

0 0 0 Once Interim report

MENA-OECD Equity capital invested in

Libyan projects by the fund

Intermediate Result indicator Two: SME financing bank established

Yes/No No No No Bank established in

line with recommendatio

ns of the project

Intermediate Result indicator 2: Lending to SMEs increased

USD lent to SMEs

TBC TBC TBC Lending should increase by

100% over the first five years.


280

Leading the Way: A Leadership Capacity Building Pilot Project

A. Basic Project InformationActivity Name: Libya: Leading the WayCountry Name: Libya Country Name: LibyaName of ISA Project Leader: Mr. Ahmad Yasser & Ms. Yasmine Eita

Email of ISA Project Leader: [email protected] & [email protected]

Recipient Entity: Ministry of Planning Name and Email of Recipient Entity Contact: Mr. Esam [email protected]



Total Amount Disbursed (Direct and Indirect in US$): Indirect (80,000 USD)Direct (0)


12/5/2013



3/31/2018


Primary Pillar (select only one):

Enhancing Economic Governance


Investing in Sustainable GrowthInclusive Development and JobCreationCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: This project aims at strengthening leadership capacity at decision-making levels of the public and private sectors, and civil society to lead the way to long-term institutional effectiveness, efficiency and success.Rating for progress towards achievement of objective:




Brief Summary of Project Implementation Status: The project grant agreement was signed by the Libyan counterparts on 22 May 2014 but actual implementation only started in march 2016 owing to the worsening situation in Libya and a complaint received by the Bank from one of the potential bidders, which have delayed the initiation phase of the project. The Bank approved the contract award to the consortium Adam Smith International in November 2015 and the contract was signed with Adam Smith International on 29 March 2016. An extension to the original closing date of 31 December 2017 to 31 March 2018 was also requested and granted by the MENA TF steering committee, in order to take into account the delayed start up period at the start.

During the project implementation period, a project kick off meeting was held, involving Government of Libya counterparts, the Bank’s project team, and the Adam Smith International project management team. Stakeholder roles were clearly defined and agreed, the project implementation timeline was reviewed, and the selection criteria for project participants finalized. Adam Smith has also submitted their first deliverable to the Bank’s team, which consists of the first inception Report in May 2016. The Technical Needs Assessment commenced in May 2016, involving key informant interviews with Libyan sectoral experts, a review of relevant reports, a survey of potential participants, and meetings with key donors and implementation agencies operating in Libya. Adam Smith International will analyze these findings, and this analysis will be submitted to the Bank’s project team in Report 2, which will include an analysis of user requirements. In June 2016, the request for proposal (RFP) for the e-learning platform, and the transformation of consortia-produced content into the development for e-learning courses was launched.

281





Submission of a project logo and the Communication Strategy

Adam Smith to share with the Bank’s project team

7/7/2016

Submission of the Technical Needs Assessment Report Adam Smith to share with the Bank’s project team

7/15/2016

Launching of the Libya Leading the Way application process

Adam Smith 7/17/2016

Review of E-learning course structure, and platform architecture


8/15/2016

Shortlist of applicants fulfilling the agreed selection criteria for the Libya Leading the Way project


8/18/2016

Notification to course applicants on their application to the Libya Leading the Way Leadership course

Adam Smith 9/5/2016

Launch of the Libya Leading the Way e-learning Leadership course

Adam Smith 9/18/2016

C. Implementation Status of Components Please note that the components of the project have been updated after a due diligence was conducted of the expected outcomes and outputs of the project. The results-based log-frame was modified according to this due diligence and the new components identified are indicated below.

Component 1: Establishment of a Project Management Unit and the international consortiumPrevious Rating: Current Rating: Satisfactory Cost (US$): $350,000Sub-component 1.1: Setup of a Project Management Unit in Tunis

Status of Implementation: Completed. The AfDB nominated a project management team while ASI Project Management Unit was mobilized on the signing of the contract in March 2016. The project inception report was approved by AfDB in June 2016; the report provided a summary of mobilization-related activities.

Component 2: Requirement analysis, programs architecture and content developmentPrevious Rating: Current Rating: Moderately

SatisfactoryCost (US$): $1,375,000

Sub-component 2.1: Leadership Capacity building requirements assessed

Status of Implementation: In progress.

A training needs assessment, including key informant interviews with Libyan sectoral experts, a review of relevant previous reports, and a survey of potential participants have all been conducted. Findings are currently being analyzed, and a report will be submitted to the AfDB in July 2016 summarizing the main findings of this exercise.Sub-component 2.2: Training program architecture and content determined


Draft module outlines have been produced for the foundational leadership e-module. These, along with the

282

specialized pathways outlines, will be finalized based on the training needs assessment.

Component 3: Executive training program for senior executive staffPrevious Rating: Current Rating: Moderately

SatisfactoryCost (US$): $1,300,000

Sub-component 3.1: Female participation in the programme.


The participant selection criteria for the programme were developed during March 2016 and agreed in June 2016 among the different stakeholders of the project. A communications plan is currently being developed in order to ensure that the selection process targets appropriate potential beneficiaries effectively, and will include the need to secure the inclusion of high quality female potential candidates. A soft minimum target of 10% was included in the selection criteria.

A two-week intensive training course is expected to take place in Tunis in November 2016 owing to the difficulties of holding such classroom trainings in Libya, with implementation of the e-learning modules starting from September 2016.

Component 4: Identification, capacity building to, and handover of leading the way e-learning courses and alumni network to a Libyan institutionPrevious Rating: Current Rating: Moderately

SatisfactoryCost (US$): 235,000

Sub-component 4.1: Libyan partner institution selected to host the leading the way course and alumni network


Initial discussions regarding potential Libyan partner institutions to take on the work throughout the project have been conducted with stakeholders and key experts (through the training needs assessment research). The majority of work on this component is likely to take place during 2017.


(US$)

(x)


(y)

Total (US$)


3,260,000 3,260,000


3,500,000 3,500,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 0 815,000 815,0002017 800,000 800,000 1,600,0002018 845,000 0 845,000


283

120,000 80,000 240,000

284




MeasureBaseline

Forecasts of Cumulative Target

Values**Frequenc

yData Source/Methodology



Jan 2016 –

Dec 2016

F

Jan 2017 – Dec 2017

F

Indicator 1: Public sector staff trained in various aspects of leadership

Number of trainees

0 126 126 One-off Training records

Project implementation unit

Number of public sector staff receiving training through the programme

Indicator 2: Private sector staff sector staff trained in various aspects of leadership

Number of trainees



Number of private sector staff receiving training through the

programmeIndicator 3: Civil Society sector staff trained in various aspects of leadership

Number of trainees



Number of civil society staff receiving training through the programme

Indicator 4: Formal and informal interactions between participants from different sectors

Qualitative assessment

0 0 One-off E-learning platform and

official project social media

activity; end of programme

survey


Alumni network, including programme participants from all three sectors maintained

‘Hits’ and ‘activity’ on the programme Facebook page (to be reported on in the final report); an end of programme survey will assess whether participants have built relationships across sectors.


Intermediate Result (Component One): Establishment of a Project Management Unit and the international consortium

Intermediate Result indicator 1.1: Setup of a Project Management Unit in Tunis

Report 0 1 1 One-off Inception Report


Project Management Unit established and functional – evidenced through

inception reportIntermediate Result (Component Two): Requirement analysis, programs architecture and content development

Intermediate Result indicator 2.1: Analysis of user requirements conducted

Report 0 1 1 Bi annually

Reports Project implementation unit

Training Needs Assessment conducted– evidenced through report

Intermediate Result indicator 2.2: Curriculum and training materials for courses developed

Modules developed

0 4 4 One-off Reports Project implementation unit

Course outlines, curricula and training materials produced – evidenced

through reports and material on the e-learning platform

285

Intermediate Result (Component Three): Executive training program for senior executive staff

Intermediate Result indicator 3.1: Percentage of female participants

% 0 10 10 One-off Reports Project implementation unit

Percentage of participants in the programme who are female – evidenced through register of

programme participantsIntermediate Result (Component Four): Identification, capacity building to, and handover of leading the way e-learning courses and alumni network to a Libyan institution

Indicator 4.1: Selection of partner institution

Report 0 0 1 On-off Reports Project implementation unit

Libyan partner institution identified capable of taking on the work being conducted by the programme – evidenced through report

286

Energy Sector Reform Technical Assistance

A. Basic Project InformationActivity Name: Libya-Electricity Sector Reform Technical Assistance

Country Name: Libya Name of Implementation Support Agency(ies): The World Bank

Name of ISA Project Leader: Mikul Bhatia, Samira Elkhamlichi


[email protected]

Recipient Entity: Ministry of Electricity and Energy

Name and Email of Recipient Entity Contact: Mr. Idres El-Sharif, [email protected].



Total Amount Disbursed (Direct and Indirect in US$): 110,586.49

97491.90


6/10/2014


10/1/2014


12/31/2017



Secondary Pillar(s): Enhancing Economic GovernanceInclusive Development and Job CreationCompetitiveness and Integration


Project Development Objective: The overall objective of the Technical Assistance activity would be to support the Government of Libya in its efforts to reform the electricity sector and its institutions with a view of enhancing the technical and financial viability of the sector.




Brief Summary of Project Implementation Status: Due to the security situation and the political vacuum in Libya there was a hiatus in the collaboration on energy with the Government. A launching workshop scheduled in Tunisia could not proceed in early 2015 due to border closure between Libya and Tunisia. Subsequently multiple attempts to organize the launching workshop did not materialize due to the difficult political and security environment in the country. The Bank team changed its approach and held a meeting with GECOL officials in Tunis on April 29 and 30, 2016. Based on the discussions with the GECOL officials, the Bank team reprioritized the tasks under the Technical Assistance program, though the essential elements of the program remained the same. The agreements secured with the GECOL officials were captured in the aide memoire to the mission. Subsequently, draft Terms of Reference have been formulated for the various consultancy tasks under the program and are now under finalization in discussion with the GECOL officials. The consultancy assignments would be procured shortly to initiate the activities under the TA program. Meanwhile, the team would continue to engage with GECOL officials, until political situation improves and opportunities to engage with the more senior levels of the government are visible. The outputs from the TA would provide the technical and analytical

287




basis for improving sector performance, investments as well as policy dialogue once the political and security situation improves.


Expected Date of

DeliveryFinalize Terms of Reference for Consultancy Assignments WB and

GECOL7/31/2016

Procurement of consultants for first set of assignments (consistent with the sub-components listed below)

World Bank 8/31/2016


The component-structure has been revised to better reflect the discussions with GECOL officials during the meetings held in Tunis on 29-30 April 2016. The revised activities agreed with GECOL officials are consistent with the original set of activities in the concept note approved by the World Bank management. The changes reflected in the component structure are explained in Annex-1.

Component 1: Rapid Assessment of Sector Performance, Structure, Financials and Investment Needs

And Design of Structural Reforms of Electricity Sector

Previous Rating: Unsatisfactory


Cost (US$): 400,000

Sub-component 1.1: Rapid Assessment of Sector Performance, Structure, Financials and Investment Needs. This includes the following tasks: Assess the current performance status of the electricity sector to identify the key challenges. Review past studies on the subject – including the study conducted by Booze Allen Hamilton. Review demand projections under different scenarios. Assess performance improvement scenarios for

various segments of the electricity sector (i.e., generation, transmission, and distribution). Review, update, and confirm existing Master Plan for 2030, related load flow studies, plans for generating

capacity on augmentation, as well as prioritized investment plans for transmission and distribution investments.

Identify key issues affecting the sector and typical measures required to address these issues.Sub-component 1.2: Design of Structural Reforms of Electricity Sector. This includes the following tasks:

a. Gap Analysis of Sector Structure and High Level Options for Reform. This includes the following tasks: Assess the current structure of the electricity sector, including legal, organizational and governance

aspects. Review the most relevant regulatory arrangements applicable from other countries; identify lessons

learned and evaluate the strengths and weaknesses of the approaches used. Propose options for restructuring and organization of the entire sector.

b. Electricity Act and Sector Restructuring. This will include the following tasks: Develop a new structural framework for the electricity sector Define the roles and responsibilities of the power sector actors, including for the ones in charge of

renewable energy and energy efficiency and the potential regulatory authority LEMRA. Assist in drafting a new “Libya – Electricity Law” Conduct workshops to facilitate discussions among key stakeholders on the main issues in sector

restructuring.c. Options Study for Restructuring of GECOL. This will include the following tasks:

Assess the need for restructuring GECOL in the new electricity sector structure and suggest options based on detailed analysis of advantages, disadvantages, risks and feasibility of implementation.

Assess the key considerations that would determine the competitiveness of GECOL and/or its

288

daughter entities under different unbundling options in face of competition from private sector players under a market scenario.

d. Detailed Roadmap for Establishing LEMRA. This will include the following tasks: Design the framework for the establishment of an entity in charge of regulating the electricity sector. Outline functions and responsibilities, including for tariff determination, licensing and market

operation. Suggest the institutional arrangements, such as staffing, management, and operating procedures and

other resources required for the regulatory body.e. Training and Workshops for Consensus Building. This will include organizing a series of workshops to

build consensus within Government and among stakeholders to complement the above listed sub-components. This process will ensure that the GECOL / MOE’s recommendations get accepted and endorsed by Government and will be essential if proposed legislation is to be implemented.

Status of Implementation: After considerable delay in organizing the inception workshop due to the prevailing political and security environment, the Bank team held meetings with GECOL officials in Tunis on April 29-30, 2016. Based on the discussions, the draft Terms of Reference for the assignment have been prepared and are currently under finalization in discussion with GECOL. The procurement of consultants would commence shortly.

Component 2: Fuel (Natural Gas) Availability, Cost Reduction and LNG Import Options Study

Previous Rating: Unsatisfactory Current Rating: Moderately Unsatisfactory

Cost (US$): 250,000

Sub-component 2.1: Assessment of Fuel Availability and Opportunities for Cost Reduction. This will include the following tasks: Examine the availability of fuels at various current and future generation facilities in Libya. Assess the financial impact of inadequate availability of fuel and the expected saving from using the optimal

fuel. Explore options for improving the availability of fuel supply for GECOL, including through expansion of local

production, improved pipeline network and import through a new LNG terminal. Assess domestic natural gas market (reserves, supply, demand including for gas-to-power, pricing and

subsidies, infrastructure and legal/regulatory framework). Develop a framework for prioritization of use of natural gas for power generation.

Sub-component 2.2: LNG Import Options Study. This will include the following tasks: Conduct a broad assessment of the LNG market (value-chain, supply/demand, terminal technologies, and

commercial/contractual terms) and feasibility of a new LNG import terminal for Libya. Readiness (and specification) of the existing infrastructure (pipeline network) to cope with the

requirements of LNG injection and new power plants to be connected – and recommend on the upgrades need to the network – over the 2030 timeframe.

Opportunity study for LNG terminal including suggesting potential sites, technology options, cost estimates, financial and economic viability etc.

Status of Implementation: After considerable delay in organizing the inception workshop due to the prevailing political and security environment, the Bank team held meetings with GECOL officials in Tunis on April 29-30, 2016. Based on the discussions, the draft Terms of Reference for the assignment have been prepared and are currently under finalization in discussion with GECOL. The procurement of consultants would commence shortly.

Component 3: Institutional Development and Performance Improvement of GECOL



Cost (US$): 750,000

Sub-component 3.1: Institutional Development of GECOL. This activity will include the following tasks:a. Strategy for Institutional Development of GECOL

289

Prepare an overarching strategy for institutional development of GECOL. Review governance and management effectiveness, and highlight key issues affecting performance. Suggest organization-wide approaches to fostering financial and energy accountability, as well as

performance accountability. Review of the existing ERP System and suggest ways of making it more effective. Explore and develop the option of creating Strategic Business Units (SBUs) to foster accountability

for results. b. Business Process Mapping and Manpower Rationalization Strategy

Carry-out a detailed study of the Business Processes to identify gaps in processes, skills, manpower availability (or excess manpower), technical performance etc. Prepare complete documentation of all business processes and analyze to optimize these processes. Identify gaps in skills, resources, information, manpower and other key inputs for effective delivery on the desired business processes.

In light of the above Business Process analysis, examine the manpower and skill needs. Map out the available manpower and skills, as well as the manpower and skills needed for effective functioning of the business. Based on such an analysis, develop a training / reskilling plan, effective manpower deployment plan, and a manpower rationalization plan.

Sub-component 3.2: Assessment of Financial Performance and Development of Financial Models. This activity will include the following tasks: Conduct a comprehensive Cost of Service study. Develop a detailed methodology for tariff calculation which reflects the allocation of costs across different

segments of the value chain, as well as geographies, and consumer categories. The methodology should reflect all costs, including depreciation, financial costs, cross-subsidies etc.

Develop a tariff structure which is sensitive to the socially/economically vulnerable consumers, encourages energy conservation, reflects time-of-day considerations, addresses economic objectives of the government, and also covers the full costs of service.

Develop a tariff reform pathway which incrementally takes the sector towards more cost-reflective tariffs Provide the tools for cost of service analysis and tariff calculations, and provide in-depth training to GECOL

and LEMRA.Sub-component 3.3: GECOL Distribution Performance Improvement. This activity will include the following tasks:

a. Improving Financial Performance of Distribution Subsector Review the measures already being taken for improving metering, billing and collections, and for

preventing theft. Suggest and help implement approaches to plug gaps in the existing measures, as well as new

measures that may be helpful in improving collections and reducing losses. Develop a strategy for implementing energy accountability framework across GECOL, and mapping

consumption data to energy input. Identify approaches for smart-metering of high-end consumers, facilitating easy and timely

payments, as well as assuring improved quality of supply to them. Develop and help implement approaches for regularization of illegal connections Suggest approaches for implementing a program of demand side management through energy

conservation and energy efficiency measures.b. Improving Technical Performance

Review technical performance aspects, conduct an audit of technical practices, identify gaps in practices as well as current state of technical assets, and suggest measures to address these gaps.

Review the ongoing efforts at GECOL to introduce Balance Scorecard and KPIs. Examine issues faced in effective implementation of these measures. Provide a comprehensive strategy for effective implementation of these approaches as well as other suitable approaches to enhance the technical performance at GECOL.

Status of Implementation: After considerable delay in organizing the inception workshop due to the prevailing

290

political and security environment, the Bank team held meetings with GECOL officials in Tunis on April 29-30, 2016. Based on the discussions, the draft Terms of Reference for the assignment have been prepared and are currently under finalization in discussion with GECOL. The procurement of consultants would commence shortly.

Component 4: Strategic Plan for Renewable Energy Development



Cost (US$): 300,000

Sub-component 4.1: Energy Mix Assessment and Renewable Resource Assessment. This activity includes the following tasks: Examine the role of renewable energy in the overall energy supply and energy security in Libya. Review renewable energy resource availability in Libya. Development/Review of a Least cost expansion plan. Develop renewable energy scenarios that confirm the economically optimal level of mix of renewables,

including specific applications (e.g. desalination, if applicable).Sub-component 4.2: Strategic Plan for Development of Renewable Energy. This activity includes the following tasks: Suggest a suitable sector structure for development of renewable energy. Suggest institutional mechanism, procedures and processes for selection and licensing of RE projects. Develop a road map for RE development until 2030 and estimate the size of investments required.

Sub-component 4.3: Framework for a Pilot Private Sector Participation Transaction. This activity includes the following tasks: Identify and prepare a framework for private sector participation transactions in renewable energy. In

context of renewable energy development, review the current PPP law in Libya. Develop technical specifications for PSP in wind and solar energy. Developing a grid code for connecting renewable energy projects (wind projects, solar farms as well as roof-

top solar etc.) to the Libyan electric grid. Identify potential candidates for first few renewable energy PSP transactions. Assist in identification and reserving a dedicated site for a pilot PPP transaction. This would include a

feasibility study of the project and its legal framework. Specific transaction can be identified in the first study, and a transaction advisory under the second study –

this first transaction can be done even before the regulator is in place. Examine the financial viability of the suggested pilot transactions based on actual project data. Suggest a

financing strategy for the pilot transactions. Conduct a risk assessment for PSP in renewable energy and suggest approaches for risk mitigation. Conduct a market analysis to identify interest in potential pilot projects. Prepare a set of standardized documents for PPP/PSP transactions, such as Power Purchase Agreement(s)

(PPAs) to be used for conventional and renewable energy project(s).The project will finance the review and update the existing least-cost expansion plan, which includes dedicated renewable energy scenarios will be developed, that would confirm the economically optimal level of mix of renewables.Status of Implementation: After considerable delay in organizing the inception workshop due to the prevailing political and security environment, the Bank team held meetings with GECOL officials in Tunis on April 29-30, 2016. Based on the discussions, the draft Terms of Reference for the assignment have been prepared and are currently under finalization in discussion with GECOL. The procurement of consultants would commence shortly.


(US$)Direct Cost for ISA-

Execution (US$)(y)

Total (US$)

291

(x)Approved Amount for Direct Project Activities (a):

0 1, 960,000 1, 960,000


0 1, 960,000 1, 960,000

Actual Amount Disbursed (c): 0 0 110,586.49

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 -2015 80,189.64 30,396.85 110,586.492016 17,302.26 760,000 777,302.262017 800,000 232111.25 1032111.2520182019


39,746.85 253.15 40,000

292


Project Development Objective (PDO): The Project Development objective of this Technical Assistance Project is to support the Government of Libya in its efforts to reform the electricity sector and its institutions with a view of enhancing the technical and financial viability of the sector.


Unit of Measure

Baseline


FrequencyData

Source/Methodology


Collection


etc.)Oct 2014 – Sept 2015

Revised:Oct 2014 –Sept 2016

F

Oct 2015 – Sept 2016

Revised:Oct 2016 –Apr 2017

F

Oct 2016 – Dec 2017

Revised:May 2017 –

Dec 2017F

Options for restructuring the power sector analyzed

Text Ministerial decisionN°539 that empowers the MoE to undertake necessary reform measures

- Gap analysis- High level strategic policy document

WB Team and the Technical Committee.

Report

Electricity Market Law adopted

Text Law N°17 on creation of GECoL

- Law drafted and endorsed by the advisory committee

- Legal Framework for RE and EE defined


Law

The Libyan Electricity Market Regulatory Authority (LEMRA) Framework developed.

Authority None - Sr Expert recruited

- Framework developed

- Business Plan for LEMRA developed


Authority responsible of power regulation

Roadmap and Action Plan for GECoL Restructuring developed

Text None - Assessment of GECoL Operations prepared- Technical analysis of losses in the systemprepared

- Roadmap and Action Plan for GECoL Restructuring


Plan

Development of a Framework for Renewable Energy(RE)

Text None -Energy Mix Assessment reviewed and updated

- a Strategic Plan for RE Development prepared

- A Framework for a Pilot Private-Public Partnership (PPP) Transaction prepared


Studies and plans

293


- A series of stakeholders’ consultation workshop will be organized to build consensus around the reform options.

Number of consultations

0 2 4 4 quarterly WB Team and the Technical Committee.

- Capacity building program is developed and number of training workshops are organized and exchange events

Number 0 0 4 4 quarterly WB Team and the Technical Committee.

- a dedicated site identified and reserved to pilot a PPP transaction for a RE project

project None a feasibility study of the project and its legal framework conducted



294

Finance and Private Sector Development Technical Assistance

A. Basic Project InformationActivity Name: Libya Finance and Private Sector Development Technical Assistance

Country Name: Libya Name of Implementation Support Agency(ies): World Bank

Name of ISA Project Leader: Pietro Calice Email of ISA Project Leader: [email protected]

Recipient Entity: Central Bank of Libya, Ministry of Economy, Privatization and Investment Board, Chamber of Commerce, Libya Business Council

Name and Email of Recipient Entity Contact: Dr. El Sadiq El Kabir (Governor, Central bank of Libya - +218 21 333 3588); Khaled Al Bakory (Director, Privatization and Investment Board - +218 21 340 5226); Abdulnaser Ben Nafaa (Chairman, Libya Business Council - +218 91 222 0629).



Total Amount Disbursed (Direct and Indirect in US$): 749,610.41


12/5/2013


1/1/2014


1/31/2017


Primary Pillar: Investing in Sustainable GrowthSecondary Pillar(s): Enhancing Economic Governance

Inclusive Development and Job CreationCompetitiveness and Integration


Project Development Objective: (i) To strengthen the capacity of key Libyan financial institutions to assess and reform the foundational elements of financial infrastructure; and (ii) to strengthen the capacity of institutions responsible for promoting private investment and private sector development.




Brief Summary of Project Implementation Status: The project has started implementation in a highly volatile political environment, characterized by outright civil war. The challenging political and security situation in the country has requested a new model of engagement with Libyan counterparts, based on remote delivery and focused on capacity building. The baseline scenario underlying this Progress Report is a gradual yet bumpy and slow normalization of the political situation in the country, supported by the international community. Against this background, the project is deemed to be on track, with one sub-component closed and two ongoing. At the request of the Central Bank of Libya (CBL), the original sub-component 1.1 of the Project has been replaced by “Capacity building to the banking industry”. This change will not have any impact on the overall project development objective. This new activity involves technical assistance (TA) to the Institute of Banking and Financial Studies (IBFS), the Libyan banking industry training center operated under the aegis of the CBL.Against the background of ongoing political uncertainty, the CBL and the Government of National Accord (GNA) have requested the World Bank to drop sub-component 1.3 (Capacity building to the Central Bank on banking

295

supervision) and replace it with a full diagnostic of the banking sector, particularly (but not only) of state-owned banks and specialized credit institutions to assess their viability and develop a strategy for the reorganization of the segment, which may include liquidation, restructuring, corporate governance reform, and/or privatization. This will require a closing date extension and involve a change in the results framework. A separate request will be sent to the Steering Committee.


Expected Date of

DeliveryRequest for an extensión of closing date and change in results framework. ISA 6/30/2018

C. Implementation Status of Components Component 1: Financial infrastructure development




Sub-component 1.1: Capacity building to the banking industry (Support to the IBFS)Status of Implementation: Activity launched in May 2015 with the delivery of a two-day workshop in Tunis attended by the Libyan financial community, including the CBL and the IBFS. During the workshop, the team presented the results of a benchmarking exercise and discussed best practices in banking training organizations; validated the methodology to undertake a diagnostics of IBFS’ capacity and governance; identified Libyan banks’ needs in professional training; and discussed and agreed on the target organizational structure. In November 2015, a follow-up two-day workshop was held in Tunis where the results of a diagnostics of the IBFS and a comprehensive architecture for vocational training were presented and discussed with delegates from the CBL, the IBFS and commercial banks. Several quick-win training modules and diploma programs were also proposed to the IBFS, of which two will be delivered under the project. The first module on International trade was held in Tunis in May 2016, while the second (Leveraging the economy through SMEs) will be delivered in September 2016.Sub-component 1.2: Strategic plan to lay the framework for implementing Islamic finance in LibyaStatus of Implementation: Organized dialogue with key stakeholders, including the CBL, on the transition to an Islamic financial system; contributed to organize a conference on Islamic finance which was supposed to be held in March 2014 but was then postponed due to security issues (next date TBD); initiated the development of a strategic framework for Islamic finance; initiated needs assessment in both the CBL and the banking system. In December 2014, the team organized a workshop titled “Towards Developing a Sound Sukuk Market in Libya”, targeting top officials of the Libya Stock Exchange (LSE), which has the mandate to develop the Sukuk market in Libya. The training was delivered through the Global Islamic Finance Development Center in Istanbul. The workshop familiarized senior LSE staff with basic principles, financing structures, as well as sound practices relating to a well-functioning Sukuk market (for both sovereign and corporate issuances). It also introduced participants to key issues relating to the regulation and supervision of Sukuk markets, including compliance with relevant AAOIFI standards. More recently, the team re-engaged with the CBL on the Strategy for Implementing Islamic Finance and delivered a first draft for discussion in December 2015. A follow up technical meeting with the CBL was scheduled for early February 2016 but was postponed due to the ongoing issues in the country. Then team is now heading for September 2016 to meet again with the CBL and discuss the final draft of the Strategy document. This would be followed by a workshop with stakeholders.Sub-component 1.3: Capacity building to the Central Bank on banking supervisionStatus of Implementation: This activity has not started yet. An expert has been identified and contacts with CBL are ongoing. The implementation of this sub-component requires the physical presence of the expert in Libya, which is not feasible at the time of writing this report. For this reasons, the CBL and the GNA have requested the World Bank to replace this activity with a full diagnostics of the banking sector.

296

Component 2: Private sector developmentPrevious Rating: Not Applicable Current Rating: Moderately

UnsatisfactoryCost (US$): 1.2 million

Sub-component 2.1: Capacity building of private sector institutionsStatus of Implementation: This activity has not started yet as it requires engagement in Libya which is not feasible at the time of writing this report. Sub-component 2.2: Mapping/assessing private sector activities and opportunities for growthStatus of Implementation: A standard Investment Climate Assessment (ICA) had been planned during a period of relative calm in Libya, where it was realistic to consider in-depth interviews with business owners, CEOs and CFOs. However, in the light of the conflict which started in July 2014, the team decided to adopt a revised methodology based on a quick assessment of the main constraints to private sector development as well as the impact of the crisis/conflict and business needs and priorities for recovery. In particular, it was agreed that a set of phone interviews reaching out to about 500 firms based on a focused, streamlined questionnaire would be implemented in collaboration with the Libyan Bureau of Census and Statistics. This would be followed by an analysis of the key constraints to doing business in the current environment and a preliminary mapping of private sector activities. The activity was finalized in August 2015, with the publication of the report titled “Simplified enterprise survey and private sector mapping: Libya 2015” (available at http://documents.worldbank.org/curated/en/2015/09/25016718/simplified-enterprise-survey-private-sector-mapping-libya-2015). Sub-component 2.3: Development of a Privatization and Public Private Partnership (PPP) frameworkStatus of Implementation: This activity has not started yet as it requires engagement in Libya which is not feasible at the time of writing this report.

Component 3: Project implementationPrevious Rating: Not Applicable Current Rating: Moderately

UnsatisfactoryCost (US$):

Sub-component 3.1: World Bank Staff cost to be based in Libya for 2 yearsStatus of Implementation: Due to security issues in the country, World Bank staff is currently managing the project from Washington DC. A local staff may be hired to help coordinate the project on the ground if and when security conditions improve in Libya.Sub-component 3.2: Monitoring and EvaluationStatus of Implementation: N/ASub-component 3.3: Travel CostStatus of Implementation: N/ASub-component 3.4: PPD process for project implementation (TA to the Advisory and Technical Committees)Status of Implementation: The formation of the Advisory Committee has been delayed due to political developments in the country. However, the technical committees have been established. These may change in light of the evolving political situation. Nonetheless, the team remains engaged with the main technical counterparts of the project.




297

http://documents.worldbank.org/curated/en/2015/09/25016718/simplified-enterprise-survey-private-sector-mapping-libya-2015

http://documents.worldbank.org/curated/en/2015/09/25016718/simplified-enterprise-survey-private-sector-mapping-libya-2015

(x)(y)


3,300,000 3,300,000


3,300,000 3,300,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End20132014 71,454 171,533 242,9872015 368,253 138,371 506,6242016 114,892 250,000 264,8922017 200,000 300,000 500,000


134,379 3,021 137,400

298


Project Development Objective (PDO): (i) to strengthen the capacity of key Libyan financial institutions to assess and reform the foundational elements of financial infrastructure; and (ii) to strengthen the capacity of institutions responsible for promoting private investment and private sector development.


Unit of Measure

Baseline


FrequencyData Source/ Methodology


Collection


Jan – Dec 2014

A

Jan – Dec 2015

A

Jan 2016 – Jan 2017

F

(i) Endorsement by the Advisory Committee of a strategic plan that outlines gradual introduction of Islamic financial services

Plan to introduce exclusive Islamic finance in Jan 2015

Plan developed

and adopted (F)

Annually World Bank Endorsement of the advisory committee reported in the committee’s minutes of meeting

ii) Endorsement by the CBL of an Instruction Manual to enable banks examiners to produce regulatory reports aligned with CAMELS rating.

Resident advisor

recruited (F);

Manual developed

and adopted (F)

Annually Advisor progress report and CBL supervision program

World Bank Endorsement of the advisory committee reported in the committee’s minutes of meeting and the CBL

(iii) Endorsement by the Advisory Committee of the private sector mapping and capacity assessment

PS mapping

and capacity

assessment prepared

and endorsed

by the committee

(F

299


Intermediate Results Indicators*

Unit of Measure

Baseline


FrequencyData Source/ Methodology


Collection


Jan 2014 – Dec 2014

A

Jan 2015 – Dec 2015

A

Jan 2016 – Jan 2017

F

Component I: Financial Infrastructure DevelopmentIslamic finance conference organized and attended by key Libyan public and private sector representatives, as well as international practitioners and experts.

Number of participants

Female participation (%)

0

0

8

25%

40

20%

Annually World Bank Conference completion report

International Islamic finance case studies prepared and disseminated in the conference.

Number of case studies prepared

0 1 1 4 Annually World Bank Conference completion report

CBL and commercial bank supervision unit staff members trained on key banking supervisory and reporting tasks

Percentage of supervision staff trained

0 20 20 Annually World Bank Training completion report

Component 2: Private Sector DevelopmentPrivate sector associations’ staff trained in: Organizational

development. Corporate governance. Strategy development. Business development

practice.

Number of assoc. staff trained

Female

0 10 Annually World Bank Training completion reports

300

participation (%)

0% 0% 0% 20%

Identification of a pipeline of projects that are suitable for privatization of PPP

Number of projects included in the pipeline

0 0 0 15 Annually World Bank PIB annual reports


301

Morocco Projects

Regional Affordable Housing Project: Morocco Activities

A. Basic Project InformationActivity Name: MENA Regional Affordable Housing Project –Morocco activitiesCountry Name: Morocco Name of Implementation Support Agency(ies): World

Bank, Arab Monetary Fund

Name of ISA Project Leader: Fadwa Bennani (WB)

Yisr Barnieh (AMF)/ Habib Attia (AMF)

Email of ISA Project Leader: [email protected], [email protected]; [email protected];

Recipient Entity: Ministry of Economy and Finance, Ministry of Housing and City Policy


Nouaman Alaissami; [email protected] – [email protected] (Ministry of Finance);

Hind Benzha; [email protected] (Ministry of Housing and City Policy)


Additional Funds Leveraged and Source(s), if any (US$):-



12/5/2013


1/1/2014


1/31/2017




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of the proposed project is to support the Government of Morocco in designing reforms of programs and policies to promote access to affordable housing for the low to middle income households. Rating for progress towards achievement of objective:




The prospects of achieving the development objectives remain good in Morocco, with most activities under implementation. Key outputs include: (i) delivery of a study on supply and demand analysis for housing; (ii) delivery of an analytical piece on land issues for housing and best practice approaches and tools for land –based financing, (iii) delivery of a benchmarking study of best practices for affordable rental policy and a seminar on international experiences for affordable rental policy; (iv) delivery of a peer to peer knowledge exchange program between the French and Moroccan guarantee program in relation to the establishment of bank oversight framework. Furthermore, substantial progress is made in the implementation of activities launched: (i) technical assistance for the review of product offering, delivery model and institutional set-up of the mortgage guarantee program; (ii) evaluation of government housing programs and related subsidies; (iii) design of a national program for housing finance education for low income households and development of a consumer protection framework (lending standards for low income housing finance). The Government remains committed to revisiting their existing policies and programs to address persistent gaps in access to housing, especially for lower income families and disadvantaged groups and lagging regions.







The project is rated “satisfactory” given the progress achieved to-date. The total disbursement is at 40%. However, implementation so far provides evidence that the project implementation period set at entry is not realistic to allow for the quality delivery of all the activities supported, in a sector as complex as housing. In addition, under the project’s programmatic approach, the sequencing of activities is key, and has led to delays in the launch of some key outputs. Finally, the interinstitutional nature of some components (involving convening services across several stakeholders) and the difficulty to mobilize adequate francophone expertise for certain highly technical topics (housing subsidy evaluations and housing credit guarantee funds reform) have also contributed to a slower than expected implementation. These challenges have been largely addressed at this stage of project implementation, with most activities now launched and commitments currently stand at over 60% of project funding. Accordingly, the ISA teams have submitted in parallel a request to extend the closing date of the Project by 17 months, from January 30, 2017 to June 30, 2018 to allow for a more adequate implementation period.



Expected Date of

DeliveryDeliver second interim report of the study on the evaluation of subsidies towards the housing programs

World bank 8/30/2016

Finalize the diagnostic of the housing credit guarantee funds (including product review, delivery mechanism, processes, institutional, governance, supervisory framework)

World Bank in conjunction with Ministry of Finance and CCG

10/31/2016

Delivery of TA to strengthen the housing credit guarantee fund’s risk analysis, assessment systems (including risk based pricing of guarantees)

World Bank in conjunction with Ministry of Finance and CCG

11/30/2016

Hold a workshop to present the results of the international benchmarking for consumer protection frameworks for low income housing finance and the relevant model for Morocco

World Bank in conjunction with Ministry of Finance

12/30/2016

Firm- up the institutional delivery mechanism for the financial education program

Ministry of Finance

11/30/2016

Finalization of the technical material for the financial education program World Bank in conjunction with Ministry of Finance

01/30/2017

Signature of MoU with the regional partner university for the Wharton housing finance training

AMF in conjunction with World Bank and Wharton

11/30/2016

Finalize the data collection for the online affordable housing finance knowledge platform and resource center for the MENA region

AMF 11/30/2016

C. Implementation Status of Components Component 1: Scaling up the Supply of Affordable Housing (WB)

Previous Rating: Moderately Current Rating: Satisfactory Cost (US$): 0.85 million

SatisfactorySub-component 1.1: Evaluation of Government Housing ProgramsStatus of Implementation: The study on the evaluation of subsidies towards the housing programs was launched following the completion of a firm selection process. The study is set to be delivered in February 2017. An initial interim report was delivered in May 2016. The aim of the study is undertake an evaluation of public support to the affordable housing sector in Morocco. This evaluation should allow a better understanding of the impact of the support provided and needed reforms to improve its efficiency, if necessary. The study is in response to a request from the Finance Ministry, the main body responsible for the implementation the policies on housing aid. The study is structured around 4 specific components: (1) evaluation of the impact of housing policy in terms of public spending; (2) evaluation of the impact of the sector in terms of public resources; (3) evaluation of the contribution of the affordable housing sector to the economy and jobs; and (4) evaluation of the impact of public aid on the affordable housing sector. In conjunction with the conclusions of the study on housing supply, the conclusions of this study will provide the basis for reform avenues to be contemplated by the Moroccan Government in the affordable housing policy in the coming years.

The study of supply analysis of has been delivered in May 2016. The general objective of this study was to support the Ministry of Housing in assessing the supply of housing in Morocco by analyzing the balance between supply and demand for housing both in quantitative terms, household income levels, and in geographical terms, and the impact of production methods on the urban development of cities and social inclusion, irregular or informal production and the coordination between the players in the housing policy, thus ultimately designing reform measures that improve housing accessibility. A geographical dimension has been taken into account as much as possible in order to measure the spatial efficiency of production and possible differentiation of supply gaps at the level of various cities (e.g City of Casablanca versus smaller regional cities such as Meknes and Agadir). Following a decision from the Ministry of Finance and Ministry of Housing, the results of this study will feed into the analysis in the context of the study on the evaluation of subsidies towards the housing programs. The results of both studies will be presented and discussed with the project steering committee and sector stakeholders, when the study on the evaluation of subsidies towards the housing programs is finalized, in the context of a dissemination workshop to be organized by the Ministry of Finance and the Ministry of Housing in partnership with the project team.

An analytical piece has also been delivered on land bottlenecks for housing and policy recommendations for their alleviation.Sub-component 1.2: Stimulating the Rental Housing MarketStatus of Implementation: Following the completion of the benchmarking report on best practices for affordable rental policy, and the delivery of the May 2015 international seminar to present the results of the benchmarking, the ISA team agreed with Ministry of Finance that the launch of the phase 2 project technical assistance under this sub-component will be undertaken following the completion of the study on the evaluation of government programs and subsidies to the sector (sub-component 1.1).

Component 2: Expanding Access to Affordable Housing Finance (WB)

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 0.95 millionSub-component 2.1: Reform of the mortgage Guarantee Fund for low income households (Damane Assakane)

Status of Implementation: Technical assistance for reform of the mortgage guarantee Fund for low income households. The implementation of this technical assistance started and various interim reports have been delivered. The TA has several objectives: (i) to strengthen the effectiveness and outreach of the Moroccan Partial Guarantee Programs in Support of housing loans, in particular by reviewing the existing product offerings and improving operational processes; (ii) to strengthen the guarantee fund’s capacity to analyze credit risks, assess their impact, derive from this assessment economic pricing principles of guarantees, conduct stress test and

calibrate economic capital required to face adverse scenarios with a view of improving the sustainability of the guarantee fund; (iii) to assess and strengthen the institutional and governance framework of the fund. The completion of the delivery of this TA is set for October 2016.

The implementations of the technical assistance to support a bank oversight function for the guarantee fund has also been delivered, working with the French Guarantee Fund SGFGAS as part of a knowledge exchange program between France and Morocco. The objective of this activity is to strengthen the fund’s capacity to conduct an effective oversight function over the banks that are covered through the credit guarantee mechanism, and as such strengthen the risk management of its portfolio.

Sub-component 2.2: Strengthening the Lending Environment for Affordable Housing (through financial education and an improved consumer protection framework)Status of Implementation: The Moroccan Ministry of Finance (MoF), in conjunction with key project partners including the Central Bank, Ministry of Housing, and the Moroccan Foundation for Financial Education (FMEF), is finalizing the technical design of a financial education program for Moroccans who benefit from or are eligible to participate in Morocco’s low-income housing schemes, with particular emphasis on new and existing FOGARIM clients. The objective of this financial education training is to improve access to affordable housing finance through strengthening the ability of low-income households to make informed borrowing and money management decisions. The program will train existing and potential beneficiaries of FOGARIM as well as conduct training of trainer (ToTs) amongst financial institutions most active in the affordable housing finance market, most notably BMCE Bank and CIH Bank, thereby enhancing sustainability of the intervention. Coordination and policy work at the industry-level aimed at addressing consumer protection gaps and assist in developing a code of conduct related to affordable housing finance will also be pursued. A best-practice workshop will also be planned to take stock of lessons learnt through the program and develop joint policy moving forward. This activity has been launched through several World Bank implementation support missions that have taken place over the past 6-months which have allowed: (i) the identification of specific financial education themes that are relevant to the target program and population; (ii) identification of institutional delivery mechanism for such program (involving the MoF, FMEF, CCG and Centre Mohamed VI); and (iii) the completion of a benchmarking of relevant international experiences for consumer protection frameworks for low income housing finance. The next foreseeable steps will consist in: (i) holding a workshop to present the results of the international benchmarking for consumer protection frameworks and the relevant model for Morocco; (ii) firming up the institutional delivery mechanism for the financial education program; and (iii) finalization of the technical material for the training prior to its roll-out.

Component 3: Affordable Housing and Housing Finance Capacity Building and Knowledge Sharing (AMF)Previous Rating: Moderately Satisfactory



Sub-component 3.1: Strengthening technical capacity in affordable housing sectorStatus of Implementation: The terms of reference of the regional housing finance training in partnership with the Wharton School together with an agenda and a financial plan were prepared. The WB-AMF team is in the process of identifying a country / university in the region to host the course. Several discussions have taken place with a number of universities in the region to confirm strategic interest in housing finance, track record, faculty strength and hosting capabilities. The team is currently pursuing final discussions with one strong regional university which appears to comply with most of these criteria. A Memorandum of Understanding has been drafted between the four institutions (AMF, World Bank, Wharton and proposed host university) and is pending finalization and validation by the four institutions. Sub-component 3.2: Affordable Housing and Housing Finance Capacity Building and Knowledge Sharing Status of Implementation: Online affordable housing finance knowledge platform and resource center for the MENA region. The existing Hofinet platform will be supported to develop and maintain a regional MENA section of the portal that will show comparative data on the sector, relevant studies, laws, news and will maintain a blog for regional discussions and knowledge exchange. Initial terms of reference for this activity were prepared.


(US$)

(x)


(y)

Total (US$)


AMF: 200,000WB: 1,800,000

AMF: 200,000WB: 1,800,000


AMF: 200,000WB: 1,800,000

AMF: 200,000WB: 1,800,000

Actual Amount Disbursed (c): AMF: 21,432WB: 702,237

AMF: 21,432WB: 702,237

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 AMF: 0

WB: 105,657AMF: 0

WB: 142,137AMF: 0

WB: 247,7952015 AMF: 0

WB: 297,105AMF: 21,432

WB: 51,764AMF:21,432

WB: 348,1752016 AMF: 0

WB: 105,581AMF: 44,642 WB: 274,441

AMF: 44,642 WB: 380,022

2017 AMF: 44,642 WB: 274,441

AMF: 44,642 WB: 274,441

AMF: 89,284WB: 548,882

2018 AMF: 44,642 WB: 274,441

AMF: 44,642 WB: 274,441


AMF: 2,810WB: 80,460

AMF: 27,190WB: 0

AMF: 30,000WB: 80,460

Project Development Objective (PDO): The objective of the proposed project is to support the Government of Morocco in designing reforms of programs and policies to promote access to affordable housing for the low to middle income households. The objective will be achieved by supporting the Government in (i) the evaluation of their existing programs for affordable housing, (ii) designing the key policies that will be catalytic and transformational in improving the supply of affordable housing and the availability of affordable housing finance, and (iii) cross-regional knowledge sharing and expertise strengthening in the area of affordable housing and housing finance.


MeasureBaseline


Frequency

Data Source/

Methodology

Responsibility for

Data Collectio

n

Jan 2014 – Dec 2014

A

Jan 2015 – Dec 2015

F (A)

Jan 2016 – Jan 2017

F

Indicator 1

Counterparts endorse project recommendations in designing or modifying relevant housing policy and programs.

Number of recommendations endorsed by key stakeholders that feed into housing policy and program formulation

0 0 4 6 Bi-annually

Endorsement as reported by the Ministry of Housing and the Ministry of Economy and Finance.

World Bank

Policies and programs may include Government strategy, policy guidance, laws and regulations, decrees, donor sponsored Government operations.

Note: Technical assistance and studies ongoing

Indicator 2

Counterparts endorse project recommendations in strengthening the rental market enabling environment and operational efficiency.

Number of recommendations endorsed by key stakeholders that feed into improvements in the policy and legal frameworks as well as the efficiency of the rental market.

0 0 2 3 Bi-annually

Endorsement as reported by the Ministry of Housing.

World Bank

Note: TA and studies ongoing

The rental sector benchmarking review have proposed a set of recommendations in the area of the design of incentives to develop rental supply and to develop a mechanism for rent guarantees which have been included in the revision of the rental strategy of the Ministry of Housing but not approved by MoF in the 2016 budget law. The MoF postponed the decision to implement specific recommendations in the area of rental following the completion of the full evaluation of the housing programs (evaluation of subsidies towards the housing programs).

Indicator 3

Counterparts endorse project recommendations for improved access to affordable housing finance for the low and informal income population.

Number of recommendations endorsed by key stakeholders that feed into policy and programs for improved access to housing finance by the low income population

0 0 2 3 Bi-annually

Endorsement as reported by the Central Bank, the Central Guarantee Fund and the Ministry of Finance.

World Bank

Note: TA and studies ongoing

(technical assistance for reform of the mortgage guarantee Fund for low income households, Technical assistance for the development of a financial education Program, low income households lending standards and a consumer protection framework)

Indicator 4

Improved capacity of Moroccan policy makers for formulating and implementing affordable housing and housing finance policy through the capacity building and knowledge sharing initiatives supported by the Project.

No. of participants in workshops or trainings

0 62 20(A;122)

30(A;122)

Bi-annually

Training, conferences and workshops reports and beneficiary surveys.

Arab Monetary Fund

October 14, 2014 mortgage guarantee fund and mortgage financial education seminar / knowledge sharing between French and Moroccan guarantee funds. Wharton training of 2 Ministry of Finance officials/

/ May 25 and 26, 2015: international rental seminar

Logismed Soft Regional Project: Morocco Activities

A. Basic Project InformationActivity Name: LOGISMED soft project – Regional project – Activities in Morocco

Country Name: Morocco Name of Implementation Support Agency(ies): European Investment Bank


Recipient Entity: Agence Marocaine de Développement de la Logistique / Ministère des Transports


Younes TAZI [email protected]



EUR 3 million from the European Commission for 5 countries including Morocco (Agreement finalized between EC and EIB in November 2013)


297,942


2/20/2013


7/31/2013


12/11/2018






Moderately satisfactory





In order to implement Logismed Soft, funds have been secured from the MENA Transition Fund and the EU Commission.

In July 2014, EIB signed a service contract with the CETMO (Centre d'Études des Transports pour la Méditerranée Occidentale) for the day to day management and implementation of large parts of these activities.

The Logismed Soft Cooperation Agreement (CA) between Morocco and EIB was fully signed on 17.08.2015. A first mission by CETMO/EIB to Morocco was organized on 21st and 22nd of October 2015 with a view to launch the project and carry out a first fact finding in view of updating the training needs assessment.

Furthermore, the first Logismed Soft steering committee meeting was held under participation from 3 countries (Algeria, Morocco, and Tunisia) at Hotel Africa in Tunis on September 10th, 2015 with the aim to involve all the initiative’s partners into the coordination and monitoring of the project. The meeting was also attended by a MENA TF representative.

Work advance moderately in all the components: The report defining the characteristics and services of the Logismed logistics platforms and also the

configuration of the network has been drafted by CETMO. EIB signed a contract with a consortium head up by GOPA in order to implement the second component,

training activities, of the project. This consultant will launch the training activities funded by the EU Commission as a first wave. After the necessary period of assessment of the results of the consultant’s work and of the capacity of the beneficiaries to receive the activities, a second wave of training activities will be launched, using funding from the MENA Transition Fund.





Regional Workshop with the beneficiaries and experts to submit the report defining the characteristics and services of the Logismed logistics platforms and also the configuration of the network.

CETMO 9/19/2016

Finalization of the diagnostic study of the training offer in logistics in the country and holding the second steering committee to present it..

GOPA 10/26/2016


CETMO 10/26/2016

C. Implementation Status of Components Component 1: LOGISMED Coordination



Cost (US$): 314,387


Status of Implementation: This component was launched in October 2015 during the first mission to Morocco. It will advance, once the concept of the Logismed logistics platforms and network (sub-component 1.2) is fully agreed by the parties. Work of the next period will focus on the screening of existing logistics platforms or projects to become candidates for inclusion in the network.

Sub-component 1.2: Definition of LOGISMED platform network



Once adopted the study and taking into consideration its guidelines, CETMO and the Moroccan authorities will screen all the possible existing and planned logistic platforms for their potential to be incorporated into the Logismed network.

Identification of needs of each of the logistics platforms selected.

Immediate activities for Component 1 include: Workshop to finalize the report to define the characteristics and services of the Logismed logistics

platforms and network. Meeting with the Moroccan logistics sector representatives to define the roadmap for choosing Logismed

platforms.




Cost (US$): 491,660




Immediate activities for Component 2 include: Launching of the work of the training consultant:


Morocco (August 2016)o Implementation of the training activities in Morocco (consecutively to the end of the previous



Component 3: LOGISMED Observatory

33 First Logismed Soft Steering Committee Meeting soft held in September 2015 in Tunisia. Representatives from Algeria, Morocco, Tunisia and international partners of Logismed participated in this interesting meeting. Next meeting will probably be held in Jordan.



Cost (US$): 617,047


Status of Implementation: A draft of the Logismed Observatory Action Plan was prepared by CETMO in a regional approach and presented during the Kick-off mission in Morocco. Work to adapt this draft to Moroccan specific needs has been completed thanks to a meeting that took place, in December 2015. Action plan agreed.Sub-component 3.2: Observe and analyze regional developments

Status of Implementation: This component was launched at the regional level in the spring of 2015. A first proposal of thematic areas and indicators of the regional Observatory has been designed by CETMO. This work has taken into consideration best practices of Observatories and existing Macro-indicators to describe Logistics performance. This proposal has been presented to the Moroccan authorities and a meeting to receive and discuss feedback has been held in December 2015. A second piece of work finalized is the study of statistical data production in Morocco that will be used to elaborate the indicators. The meeting mentioned above was also useful to discuss the Moroccan counterparts’ comments on the indicators and also to understand the Moroccan priorities for the short term concerning the Observatory. This meeting helped CETMO and Morocco to adopt the list of activities to implement in 2016. In order to define the final list of indicators of the Regional Observatory, a short term expert has been engaged to analyze and to ameliorate the pertinence of the list of indicators. The final version of the list of indicators will be proposed and agreed during the second Steering committee (October 2016). This time is being used by CETMO to prepare the structure of the Observatory (database, metadata, geographic information system, etc.) and to collect all the public statistic data interesting for the future. In parallel, the list of technical assistances to be launched in Morocco has been agreed with its representatives.

Sub-component 3.3: Promoting the emergence of national observatories of logistics and transports

Status of Implementation: Since 2014, Morocco already has a logistics observatory: the OMCL (Observatoire maroccain pour la competitivité logistique). Work on this sub component for Morocco will concentrate on assessing to what extent (i) the work and services of the OMCL can be enhanced and aligned to the work of other observatories emerging in the region and (ii) the OMCL could take in charge the functions of the Regional Observatory by the end of the present Logismed TA programme.Immediate activities for Component 3 include:

To fully define the agreed list of indicators of the Regional Observatory (finalize the short term expert work).

To continue collecting/processing data to elaborate the indicators of the Logistics observatories (national & regional).

To implement short technical assistances to ameliorate the quality and quantity of logistic data produced in Morocco.

To complete the structure & tools of the observatory to collect, process and disseminate meaningful sector statistics.


(US$)

(x)


(y)

Total (US$)


0 1,423,094 1,423,094


0 1,423,094 1,423,094



Year Jan-June Jul-Dec Total by Year End2014 0 63,686 63,6862015 0 48,296 48,296 2016 43,651 206,349 250,000 2017 300,000 300,000 600,000 2018 300,000 161,112 461,112 Total


142,309 0 142,309


Project Development Objective (PDO): To support the enhancement of platform capacities as well as the creation of a collaborative network between these platforms.


Unit of Measure

Baseline


Frequency

Data Source/

Methodology


Collection


definition etc.)

Aug 2013 –

Jul 2014

A

Aug 2014 – Jul 2015

A

Aug 2015 –

Jul 2016

A

Aug 2016 – Jul 2017

F

Aug 2017 – Dec 2018

F

Indicator One:

Logistics Performance Index (LPI) unit 3.03 n/a n/a

2.67(LPI

2016)- -

Each 2 years

WB LPI report

EIB



"friendliness" of 155 countries

Indicator Two:

Labour force employed by the transport and logistics sector

% 4.644.6(4T

2013)

4.6(2T

2014)

4.6(3T

2015)4.80 4.95

Once per year

National statistic

institutesEIB



logistics sector.

Indicator Three:

Tones and value of the intra-Mediterranean external trade

Millions tones

3.8(2008 data)

4.9(2013)

5.5(2014

)34

2015 data not

yet available

4.9 5.5Once per

year

COMTRADE (United Nations)

EIB





Component I: LOGISMED coordination

SCI.1: Promotion of the LOGISMED project

SCI.2: Definition of the LOGISMED platform network


Unit of Measure

Baseline



Methodology


Collection


definition etc.)Aug 2013 – Jul 2014

Aug 2014 – Jul 2015

Aug 2015 – Jul 2016

Aug 2016 – Jul 2017

Aug 2017 – Dec 2018

Intermediate Result indicator One: Number of platforms that study the opportunity to be part of the LOGISMED network

# platforms

0 0 0 0 2 4Once per

year

Forms asking for information

about procedures

Consortium leader





logistics platforms under the LOGISMED standards

34 Provisional data

Intermediate Result indicator Two:Number of platform infrastructures promoted by the national authorities

# platforms

0 0 0 3 4 5Once per

year


Projects launched


equipment



offer


Component II: LOGISMED Training Activities

SCII.1: LOGISMED country Training Activities

SCII.2: LOGISMED platform Training Activities





Methodology


Collection



Aug 2014 – Jul 2015

Aug 2015 – Jul 2016

Aug 2016 – Jul 2017

Aug 2017 – Dec 2018

Intermediate Result indicator One:Number of national logistics associations in place

# assoc. 0 0 0 1 1 1Once per

year

Ministry of transport and equipement



promotion comes from a powerful sector asking for their needs. This



working

Intermediate Result indicator Two:Number of people participating in training (general public)

# persons 0 0 0 0 120 120 Once per year


sessions

Consortium leader This indicator measure the


generate sufficient capacity in

countries to provide

independently a consolidated

training offer

Intermediate Result indicator Three:Number of platform workers trained

# workers 0 0 0 0 150 250

Once per year








Component III: LOGISMED Observatory

SCIII.1: Action Plan for the LOGISMED Observatory

SCIII.2: Observe and analyze the region developments in logistic & transport

SCIII.3: Promotion the emergence of national observatories of logistics & transports





Methodology


Collection



Aug 2014 – Jul 2015

Aug 2015 – Jul 2016

Aug 2016 – Jul 2017

Aug 2017 – Dec 2018

Intermediate Result indicator One:Number of quality indicators in the database

# records 0 0 0 8(draft) 12 20

Once per year

LOGISMED database Consortium leader

Number of quality indicators in the

database describing the

evolution of the transport and logistics sector

Intermediate Result indicator Two:Number of national observatories in place or in progress to be set up # observ. 0 0 0

1(in

place)1 1

Once per year

Ministry of transport Consortium leader


depends on the country capacity to generate the

statistics and indicators to



Promoting Financial Inclusion via Mobile Financial Services: Morocco Activities

A. Basic Project InformationActivity Name: Promoting financial inclusion via mobile financial services in the Southern and Eastern Mediterranean countries – activities in MoroccoCountry Name: Morocco


Name of ISA Project Leader: David Demulier Email of ISA Project Leader: [email protected] Entity: Bank Al Maghrib (Central Bank of Morocco)

Name and Email of Recipient Entity Contact: Lhassane BENHALIMA, [email protected] TAHIRI JOUTEI DRISSI HASSANI [email protected]


(originally USD 677,000; updated as informed to Transition Fund by Moroccan Ministry of Finance in February 2015)

Additional Funds Leveraged and Source(s), if any (US$): USD 60,000 – co-financing support in kind expected from Bank Al MaghribUSD 32,000 (EUR 28,000) – commitment from Union for the Mediterranean for UfM labelled project (total commitment, covering Jordan and Morocco, of 2 working sessions at EUR 28,000 each)




Project Closing Date:07/31/2016 (extension request approved by last Steering Committee)



Investing in Sustainable GrowthInclusive Development and Job CreationCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The overall objective of the project is to promote the development of innovative retail payment solutions such as mobile financial services which will support expanded access to finance across Morocco. Rating for progress towards achievement of objective:

Satisfactory


Satisfactory


The project started implementation in February 2015. Work for Components 1 and 2 has now been fully and satisfactorily completed, as per the Terms of Reference. The Bank Al Maghrib is finalizing the circulars on payment service providers, with which this project provided support, in view of an imminent publication. The organization of the Knowledge sharing workshop will finally be held on 12 and 13 July at the DNB (Dutch National Bank) in close cooperation with the Central Bank of Jordan.

The project will be finalized after that joint workshop.



Expected Date of

DeliveryOrganization of the Knowledge sharing workshop EIB 7/12/2016

C. Implementation Status of Components Component 1: Capacity building for BAM via an international review of the regulatory framework for mobile financial services in a selection of countries considered relevant and/or international best practices

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 210,000Status of Implementation: As previously reported: The full package of reports for this component were approved in September 2015. Reports included: inception report, country reports, synthesis report. Publication of the synthesis report on EIB website (not part of the project proposal, but an important aspect of regional information sharing) is expected shortly.

Component 2: Accompaniment for the BAM in drafting new regulations for the provision of electronic retail payments

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 105,000 Status of Implementation: As previously reported: On the basis of the benchmarking study above, the consultants engaged in a number of working sessions with the BAM in order to provide support with the regulation drafting process. These sessions were based on an initial written review of the circulars, provided by EY in May 2015. Formal meetings took place in May, June, August and September (in person or by video conference) with different departments of BAM in order to discuss progress and comments on the reports and the regulations.

Component 3: Knowledge sharing workshop

Previous Rating: not applicable Current Rating: Satisfactory Cost (US$): 35,000 Status of Implementation: As mentioned in the extension request, the workshop will take place the 12 July jointly with the first study visit planned for the Jordan Mobile Finance project the week of 11 July. Therefore, the Bank Al Maghrib will take benefit of the visit and it would also be the opportunity for the Central Banks to meet and to share their knowledge together on both the results (Morocco) and the on-going mission (Jordan).

Component 4: Project Management, Coordination, Monitoring and Evaluation

Previous Rating: not applicable Current Rating: Satisfactory Cost (US$): 40,000 (in-kind participation of BAM)

Status of Implementation: This activity – which is country executed by the Bank Al Maghrib – in terms of coordinating the project internally, is ongoing.

D. Disbursements of Transition Fund Funds for Direct Project Activities (US$)Country-Execution (US$)

(x)


(y)

Total (US$)


0 350,000 350,000


0 420,000 420,000*


0 USD 274,000 (approximate USD figure; actual disbursement of EUR 248,000 based on according to exchange rate of 11July 2016)

USD 274,000 (approx.)

* This amount included in Transfer Request sent on 9 January 2015.

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 0 02015 110,000 0 110,0002016 274,000 20,000 294,000

F. Disbursements of Funds for Indirect Costs (US$)Disbursed Available Total42,000 0 42,000


Note: The assessment is based on the completion of the scheduled work. Data on indicator metrics is to be provided by the Central Bank.


Unit of Measure

Baseline at the end of

2014




Collection


definition etc.)Dec 2015

A

YR 1F

YR 2 F

YR3 F

YR 4F

YR5 F

Indicator One: Increase in access metrics

Number 19 311 420 of which 1 093 169 (prepaid account)

+11% 5% +15% +20% +25% +30% Annual Reporting to BAM

BAM Increase in number of active accounts 35

Indicator Two: Infrastructure metrics

Number 3,73 +6% 3% 9% 12% 15% 18% Annual Reporting to BAM

BAM Agents, ATMs and POS36 terminals per 10 000 inhabitants (adults)

Indicator Three: Transactions per acceptance infrastructure37

Number 8 942 of which 88% is cash out transaction

+5% 5% +10% +15% +20% +25% Annual Reporting to BAM

BAM Number of transactions per ATM, POS, agent, mobile or any other acceptance infrastructure over a period of time

35 Regulated Deposit account + Prepaid card36 AFI defines “Access point” as: physical entity where an individual can perform cash-in and cash-out transactions with a regulated financial institution, such as bank branches, any type of banking office, and ATMs, agents and POS devices that perform cash-in and cash-out transactions.37 Average Deposit amount (MAD)

Indicator Four: Cost reduction to maintain specific payment product accounts by institution type38

Number Awaiting confirmation from BAM

0% 5% 10% 15% 20% Annual Reporting to BAM

BAM Cost for the consumer to maintain specific payment product accounts under a given use

scenario39

Intermediate Result indicator One: Capacity building for BAM based on an international review of the regulatory framework for mobile financial services in countries considered to be best practices

Report 1 n/a n/a n/a n/a Once, six months after project start


EIB, BAM Report detailing international review of the regulatory framework for mobile financial services in countries considered to be best practices; to be completed six months after commencement of the operations.

Intermediate Result indicator Two: Regulations to accompany the new legislation should be ready and agreed by both BAM and the Ministry of the Economy and Finance.

Report 1 n/a n/a n/a n/a Once, at project completion

Progress report to the EIB

EIB, BAM The consultant will submit a report on the assistance offered in this component to the EIB.

38 This indicator will be replaced by an Affordability indicator which will be calculated at the end of 2016 within this formula: Average monthly cost to keep a standard deposit account in terms of the average income of the 50% poorest population39 According to the calculation method, BAM decide to give up this indicator. A replacement indicator will be proposed after the approval of the banking association.

Intermediate Result indicator Three: Workshop for information sharing will be completed

Report 1 n/a n/a n/a n/a Once, at project completion

A workshop to share the results of the study will have been organized and a report provided to the EIB.

Intermediate Result indicator Four: Project management team will have been operating for the project

Report 2 n/a n/a n/a n/a Twice, once halfway through project implementation and once at completion

A report detailing the activities of the CBJ in managing and implementing the project will be shared with the EIB.


Regional Integration through Trade and Transport Corridors: Morocco Activities

A. Basic Project InformationActivity Name: Regional Integration through Trade and Transport Corridors (TRANSTRAC) –Morocco Activities

Country Name: Morocco Name of Implementation Support Agency(ies): European Investment Bank


Recipient Entity: Ministry of Equipment and Transport and Logistics


Mr. Jamal RAMDANE: [email protected] Total Amount Approved by the Transition Fund (US$): 3,550,000.00




5/15/2013


10/31/2014


12/31/2018




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of TRANSTRAC is to promote the reduction of trade and transport barriers along the priority trade corridors of Morocco.


Satisfactory



Following the full signature of the technical assistance (TA) Cooperation Agreement (CA) between EIB and Morocco in July/August 2015, the procurement and implementation of most components of the TRANSTRAC programme for Morocco started and is advancing at a relatively good pace and with expected satisfactory outcomes.

Some activities will be completed beyond the original TRANSTRAC closing date. Therefore, the ninth MENA TF SC meeting held on the 29-30 May 2016 in Morocco approved a closing date extension for TRANSTRAC. The new closing date was set to be 31/12/2018, which will also allow the countries and EIB to use residual TRANSTRAC funds, resulting from (a) savings as a consequence of competitive bidding processes and (b) partial/full cancellation of activities, which turned out to be unnecessary / inopportune for a variety of reasons. A restructuring note on how to use residual TRANSTRAC funds in Morocco, as agreed between Morocco and the EIB, will be submitted to the MENA TF separately.

A brief summary of the implementation status of ongoing/completed TRANSTRAC activities is given hereunder:

- Component #1 - regional activities – covering all TRANSTRAC countries (Tunisia, Jordan, Egypt, Morocco): a) Road Safety Action Programme: This activity experienced 3 months delays because of Moroccan


boycott of EU institutions (Jan.-Apr. 2016). The first phase is ongoing and a seminar on road safety will be held in July 2016. Further, a road safety auditor training will be carried out in September 2016. Programme to be completed in November 2016.b) TA to transportation activity: Activity proposed to be restructured (cf. separate restructuring note). ToR had been completed. For Morocco, this TA is intended to focus on capacity strengthening of a PPP unit within the Ministry of Equipment and Transport. Procurement expected to start in the 3rd quarter of 2016.

- Component #2.1(Motorway Oujda-Algerian border): Morocco studies this project with own funds.

- Component #2.2 on RN8 Fes-Marrakech: Activities started in October 2015. 3 steering committees were held to analyse and approve deliverables. This study will be completed by November 2016. A continuation of the TA for the adjacent section of the “Autoroute du centre” between Fès and Kénitra would seem pertinent and could be financed from residual funds under the TRANSTRAC project in Morocco. (cf. separate restructuring note).

- Component #2.3 (Logistics sector): A small TA (EUR 50,000) to help AMDL supervise regional logistics zones studies is ongoing according to plan. Furthermore, EIB/SNAP-T and AMDL prepared ToR for two logistics zones feasibility studies (regions Oriental et Khénifra-Béni-Mellal). Tendering starts in the 3 rd

quarter 2016. Also, ToR for the feasibility study on construction materials and ToR for a pre-feasibility study on "agro-commercialization" logistics had been drafted/sent to AMDL mid-2015. However, the promoter has recently indicated that against original expectations, these two studies are currently not opportune to undertake.

- Component #2.4 (port d’Agadir): This TA called “Étude de faisabilité technique et économique des scenarii de développement de l’offre portuaire dans la région d’Agadir.” will study the question of whether and to what extent to continue investing in the existing port or to transfer some or all port activities elsewhere. ToR had been agreed with the promoter. Procurement is completed. TA will start in July/August 2016 and take 18 months to complete.

- Component #3 (Transtrac project management unit (PMU)): By the end of 2014, ToR had been agreed with the Moroccan authorities. However, with hindsight, the need for this PMU did not fully materialise as the TA operations were well managed between the SNAP-T team of the EIB on the one hand and the promoters on the other hand. EIB is currently discussing this with Ministry of Equipment, Transport and Logistics to determine whether this budget component should be re-allocated. Activity proposed to be restructured (cf. separate restructuring note).

C. Implementation Status of Components Component 1: Institutional and capacity building for regional trade framework improvementPrevious Rating: Moderately Satisfactory

Current Rating: Satisfactory Cost (US$): 250,000

Sub-component 1.1: TA to Ministry of Transport (regionwide component)


In Morocco, this item will focus on the establishment and/or support of a PPP unit in the Ministry of Equipment and Transport. ToR have been drafted. Procurement is expected to start in the 3nd quarter of 2016.

Sub-component 1.2: Ministry of Transport: Road safety assessment and action plan. (regionwide component)


Under this regional TA, activities in Morocco started in April 2016 with some delays (caused by Morocco boycott of European institutions). The 1st steering committee was held 1st June 2016 to validate inception report and to discuss activities details (seminar and training of road safety auditors). The seminar is organized for July 2016 to present experience of similar countries in Road safety and lessons learned. Concerning phase 2 (road safety training) it is planned to start in September 2016 for some 20 engineers from the Ministry of Equipment and Transport in road safety audit and inspection of roads and motorways.

Component 2: Preparatory studies for infrastructure improvements of the priority corridors and multi-modal transport networkPrevious Rating: Moderately Satisfactory

Current Rating: Satisfactory Cost (US$): 2,700,000

Sub-component 2.1: Direction des Routes, DR; Preparation of the missing link of Morocco-Algeria motorway

Status of Implementation: This item is being carried out by the Autoroutes du Maroc on their own resources.

Sub-component 2.2: Direction des Routes, DR ; Preliminary study of the East-South corridor (rocade centrale RN8)

Status of Implementation: Etude d’une Rocade Centrale RN8 Fes-Marrakech: Etude de Faisabilité et APS.

Activities started in October 2015. A first steering committee was held in mid-November 2015 with EIB, the promoter and consultant to discuss the Inception Report. Two other SCs were held in February and May 2016 to validate deliverables. The contract will be extended by 3 months taking into account the postponement of consultant services because of the Morocco boycott of European institutions (January- April 2016). The study will be completed by November 2016.This project will move rapidly to implementation as a part of national priorities in road sector. This project is also part of the ‘’l’axe central’’ linking Marrakech-Béni Mellal-Fès-Tanger. Another section of this corridor (Fès-Kénitra) is proposed to be financed under Transtrac residuel budget (cf. separate restructuring note)

Sub-component 2.3: Logistics Agency; Preparation of logistics centersStatus of Implementation:

AMDL had commissioned with own funds studies into the feasibility of logistics centres in the regions Souss-Massa-Draâ (Agadir) and Tanger-Tétouan. In that context, AMDL has requested EIB to provide TA to supervise these latter regional studies. Approximately EUR 50,000 from TRANSTRAC are being used for this assignment, which is ongoing to the satisfaction of the AMDL. The last mission with AMDl is scheduled for July 2016 and This TA is approaching completion.

EIB/SNAP-T also received in December 2015 ToR for two logistics zones (region de l’Oriental et region de Khénifra-Béni-Mellal). SNAP-T has enhanced these and incorporated them into one coherent set of ToR, for which the tendering will start in the 3rd quarter 2016 (budget: EUR 345,000). This TA will cover the logistics market demand, feasibility of the first logistics zones (technical, eco-fin and environmental/social) and institutional aspects. The consultant will be in place in the beginning of 2017 for contract duration of 10 to 12 months.

AMDL had also requested EIB/SNAP-T to provide TA for the analysis of two specific freight flows in the greater area of Casablanca, underpinning the idea of a Greater Casablanca Logistics Hub. namely:

Feasibility study on construction materials flows: Draft ToR and sent to AMDL for comments in 4/2015.

Pre-feasibility study “agro-commercialization” logistics: Draft ToR and sent to AMDL for comments in 6/2015.

Unfortunately these two projects seem not to have the necessary maturity within potential beneficiaries and promoters. These 2 studies cannot be launched without reaching the minimum consensus between stakeholders, which in the short run seems difficult/impossible to achieve.

EIB is currently in discussion with AMDL to establish a clear prioritization of its needs in terms of technical assistance. Result of these discussions will be reflected in the restructuring note to be submitted to MENA TF. In the absence of further projects in the logistics sector, which have a reasonable chance to be rapidly implemented, a reallocation of the residual funds to other priority projects could be considered (see comment on component #2.2 “autoroute du centre”).

Sub-component 2.4: Ports Directorate; Preparation of selected activities for the extension of Agadir portStatus of Implementation:

In May 2015, EIB/SNAP-T and the Moroccan authorities agreed on the project scope. ToRs have been finalised in autumn 2015. Procurement is now complete. The consultancy contracted is expected to be signed in 7/2016.

The objective of the study is to provide a technical analysis regarding the existing Port functioning and capacity against the future demand and propose alternatives for port development (continuing to invest in the existing port and/or transfer some/all activities out of Agadir), taking in account the urbanistic/touristic development of the city.

The assignment will be completed with 15 to 18 months to get a final project proposal for the 4 th quarter of 2018.

Component 3: Project Preparation, Management, Coordination, Monitoring and EvaluationPrevious Rating: Moderately Satisfactory


Cost (US$): 400,000

Status of Implementation: A project management unit (PMU) was supposed to be established within the lead Ministry to monitor and coordinate the TRANSTRAC TAs. So far, the need for this PMU did not fully materialise as the TA operations were well managed between the SNAP-T team of the EIB on the one hand and the promoters on the other hand. EIB is currently discussing this with Ministry of Equipment, Transport and Logistics to determine whether this budget component should be partially re-allocated.


(US$)(x)


(y)

Total (US$)


500,000 2,850,000 3,350,000


500,000 2,850,000 3,350,000




2014 50,000 50,00020152016 300,000 700,000 1,000,0002017 800,000 500,000 1,300,0002018 500,000 500,000 1,000,000


200,000 0 200,000







Collection


definition etc.)Jan.

2016 – Dec. 2016

F

Jan. 2017 – Dec. 2017

F

Jan. 2018 –

Dec. 2018

F

Indicator One:About 20 transport road safety auditors trained

# of participants

0 20 20 20 Bi-annually Reports PMCU and Focal Points


Indicator Two: Studies completed: (i) priority logistic centers (2 TAs); (ii) Etude d’une Rocade Centrale RN8 Fes-Marrakech (iii) feasibility study for port of Agadir port; (iv) road safety action plan completed.

Percentage progress; and

# of studies

0

0

60%

3

80%

4

100%

5

Bi-annually ReportsStudies produced


Quality and number of studies completed and approved


Intermediate Result (Component One): Institutional and capacity building for regional trade framework Sub-component A.1: TA to TransportationSub-component A.2: Road safety assessment and action plan

Intermediate Result indicator:TA to Transportation: training

# of participants

0 20 20 20 Bi-annually Reports PMCU and Focal Points

Qualitative- number of participants who have successfully completed the

training.Intermediate Result indicator:Road safety assessment and action plan;



Quality studies and action plans produced and approved

Intermediate Result (Component Two): Preparatory studies for infrastructure improvements of the priority corridorsSub-component B.2: Etude d’une Rocade Centrale RN8 Fes-MarrakechSub-component B.3: Preparation of priority logistics centers as defined by the national strategy Sub-component B.4: Feasibility study for the development of Agadir port

Intermediate Result indicator One: Etude d’une Rocade Centrale RN8 Fes-Marrakech


0 100% 100% 100% 3-months Reports PMCU, Focal Points with EIB input

Quality studies completed and approved

Intermediate Result indicator Two: Studies in preparation of priority logistics centers as defined by the national strategy




Intermediate Result indicator Three: Feasibility study for the development of the port of Agadir




Intermediate Result (Component Three): Project Preparation, Management, Coordination, Monitoring and Evaluation

Intermediate Result indicator Quality reportingTime based

0 0% 60% 100% 3-months Reports PMCU, with EIB input

Quality reporting, M&E

Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making in Morocco

A. Basic Project InformationActivity Name: Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making in Morocco

Country Name: Morocco Name of Implementation Support Agency(ies): OECD

Name of ISA Project Leader: Tatyana Teplova Email of ISA Project Leader: [email protected]

Recipient Entity: Ministry for Solidarity, Women, Family and Social Development, 47 avenue Ibn Sina, Rabat Morocco





5/19/2015


1/17/2016


10/30/2018




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: Increase women’s participation in Parliament, local councils and policy-making to underpin and drive inclusive development in Morocco.


Satisfactory



The project has been launched in December 2015 with support from the Morocco counterparts and stakeholders as well as the donor community. In the first half of 2016 all the activities planned have been successfully implemented.

Representatives from key ministries (Ministry of Solidarity, women, Family and Social Development, Ministry of Interior, Ministry of the relations with the Parliament and Civil Society, Ministry of Economy and Finance, Ministry of Public Function and Modernization of the Administration), parliamentarians, representatives of different political parties and members of Women’s CSOs dedicated considerable time to the OECD and peer-reviewers during fact-finding, which demonstrated their strong interest and support too. They contributed providing detailed information.

The continuous commitment, consistent communication, regular coordination and the engagement from Ministry of Solidarity, Women, Family, and Social Development ensured a steady progress. Main achievements so far include the elaboration of a guide on the methodology and framework contextualized based on Morocco’s specific circumstances (e.g. taking into account the current legal framework, institutions and state of play in the country, current electoral process, etc.) to conduct:


Component 1a: Mapping and analysis of parliamentary and local council electoral and workplace operations (including internal parliamentary procedures), processes and policy frameworks through a gender lens; and,

Component 2a: Conducting country-based assessment of the existing opportunities and current challenges faced by women candidates was drafted, finalized and then

Morocco has also participated and was greatly represented in the first regional dialogue hosted in Amman, Jordan from 4-5 May 2016, and co-organized with the 2016 Women in Parliament’s (WIP) Global Summit, and the Jordanian Parliament.



We will organize a capacity Building for political candidates on: Balancing duties and responsibilities of a local council



OECD and Ministry of Solidarity,

Women, Familly and Social

Development (MSWFSD)

7/18/2016

The Moroccan steering committee meeting in Paris (tbc)

OECD and Ministry of Solidarity,

Women, Family and Social

Development (MSWFSD)

2016


Component 1: Making legislatures transparent, equitable and gender-sensitive Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 200,105

Sub-component 1.1: Mapping and analysis of parliamentary electoral and workplace operations, processes and policy frameworks through a gender lens, including in selected local election councils

Status of Implementation: Implementation at the national level foreseen on April – December 2017Implementation at the local level foreseen on March 2017Sub-component 1.2: Providing country-based capacity building activities to parliamentarians, selected local electoral committees and secretariats.

Status of Implementation: Implementation at both levels will take place in December 2017



Sub-component 2.1: Conducting country-based assessment of the existing opportunities and the current challenges faced by women candidates in Morocco


A fact-finding mission was held from 30 March- 1 April 2016 to conduct Assessment 2a. A gender expert from Egypt, Gihan Abou Zeid, and a peer-reviewer from Spain, Laura Seara (Former Secretary of State of the Ministry of Women Affairs and a former member of the Spanish Parliament) joined the mission.

The report based on findings for Assessment 2a is currently being finalized and will be circulated to relevant stakeholders for validation, input and revisions by next week. The report is based on an adapted guide on the methodology and framework to conduct: -Component 1a: Mapping and analysis of parliamentary and local council electoral and workplace operations (including internal parliamentary procedures), processes and policy frameworks through a gender lens; and, - Component 2a: Conducting country-based assessment of the existing opportunities and current challenges faced by women candidates was drafted, finalized and then.

The report will be finalized in advance of Component 2b capacity building exercises that will take place in July 2016.

During this mission we held several interviews with:

Steering Committee:

o Key representatives of the Ministry of Solidarity, Women, Family and Social Development,o Key representatives of the Ministry in charge of the relations with the Parliament,o Key representatives of the Ministry of Public Function and Modernisation of the Administration, o Key representatives of the Ministry of Interior,o Key representatives of the Ministry of Economy and Finance.

Mrs. Naima Benyahya, President of the commission for gender equality of the Parliament and the civil society and other members of the commission,

Women parliamentarians from the House of Representatives and the House of Councilors.

Key representatives of political parties: Parti de la Justice et du Développement, Parti de l’Indépendance, Parti du Progrès et du Socialisme, Parti authenticité et modernité, Parti de l’Union socialiste des forces populaires, Parti du Rassemblement national des indépendants, Parti du Mouvement Populaire and Parti de l’Union Constitutionnelle.

Women’s NGO’s: Organisation du Renouveau de la Prise de Conscience Feminine (Casablanca), Association Démocratique des Femmes du Maroc (Casablanca), Union de l’Action Féminine (Casablanca), Union Nationale des femmes du Maroc (Casablanca), Association marocaine pour la défense des droits de la femme (Casablanca), Mouvement pour la Démocratie Paritaire, Forum Azzahrae Pour la Femme Marocaine ( Rabat), Espace Associatif (Rabat), Jossour Forum des Femmes Marocaines.

The General Secretary of the Ministry of Solidarity, Women, Family and Social Development.

Implementation at the local level foreseen on March 2018 (tbc)

Sub-component 2.2: Building women’s capacities to participate in elections and parliamentary operations at the national level.Status of Implementation: The capacity building exercises will take place in July 2016

Logistical arrangements for 2b capacity building are currently ongoing.




Cost (US$): 119,004

Status of Implementation: Implementation at the national level will take place between September2017 – April

2018 (tbc) and Implementation at the local level in January 2018 (tbc)

Component 4: Regional Dialogue



Cost (US$): 50,682

Status of Implementation: The first regional dialogue for the project was hosted in Amman, Jordan from 4-5 May 2016, and co-organized with the 2016 Women in Parliament’s (WIP) Global Summit, and the Jordanian Parliament to maximize the networking opportunities of MENA policy-makers and stakeholders. The event took was held under Jordan’s Parliamentary dome.

Seventeen MENA countries participated and sent Parliamentary delegations. Morocco, Egypt and Jordan were present on all speaker panels organized by the OECD in sync with the regional project. A total of three sessions were covered with explicit connection to the regional dialogue:

1) Women’s political participation across all levels in the MENA region;2) Inclusive Electoral Processes and Systems; and, 3) Increasing Consultation between women’s CSOs and Parliament.

Additionally, there were three plenary sessions and nine other parallel sessions on topics ranging from women’s role in peacebuilding, to policy responses to migration and political violence against women. In total, over 500 participants attended from more than 86 countries, including over 400 parliamentarians, 2 current Heads of State and 5 former Heads of State, government officials, members of civil society, local councils and academia.

The next regional dialogue will take place in Egypt in 2017 and in Morocco in 2018.


(US$)

(x)


(y)

Total (US$)














Jan-Dec 2016

F

Jan-Dec 2017

F

Jan-Sep 2018


Quantitative Existing yes yes yes Once Project progress reports


Aassessments, reports, action plans, roadmaps, models of good practices or frameworks designed to enhance the enabling environment










Quantitative none











Number of CSO’s involved in public consultations and Number of awareness campaigns, hits on the website and regional meetings; communication strategies; electoral commissions and parliamentary secretariat


Improving Connectivity in the Maghreb: Morocco

A. Basic Project InformationActivity Name: Northern Africa: Improving Connectivity in the Maghreb

Country Name: Morocco Name of Implementation Support Agency(ies): World Bank, OECD

Name of ISA Project Leader: Jean-Francois Arvis (WB)

Ben Dickinson (OECD)


[email protected]

Recipient Entity 1: Administration des douanes et impôts indirects (ADII)


[email protected]

Recipient Entity 2: PortNet S.A. Name and Email of Recipient Entity Contact: :

[email protected]

Recipient Entity 3: Agence Marocaine de Développement de la Logistique (AMDL)

Name and Email of Recipient Entity Contact: [email protected]

Recipient Entity 4: Société Nador West Med Name and Email of Recipient Entity Contact:

[email protected]

Recipient Entity 5: Comité Régional de l’Environnement des Affaires (CREA) – Centre Régional d’investissement de Casablanca


[email protected]

Recipient Entity 6: General Tax Administration of Morocco


[email protected]


US$ 3,577,513


Parallel financing by recipient entities (ADII and PortNet): US$ 1,400,000


World Bank: 299,570.68

OECD: 233,416


5/18/2015


9/1/2015


6/30/2018


Primary Pillar: Competitiveness and Integration

Secondary Pillar(s): Investing in Sustainable GrowthEnhancing Economic GovernanceInclusive Development and Job Creation

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of the project is to streamline the chains of international trade between the Maghreb countries and with their major trading partners, to increase cooperation among border management agencies, to strengthen capacities in economic governance, and to build effective and transparent tax systems.

Rating for progress towards achievement of Satisfactory

objective:


Brief Summary of Project Implementation Status: World Bank portion (Components 1 and 2): As a follow-up to the July 2015 and November 2015 mission, four implementation support missions for the different project components took place in February, April, May and June 2016. Meetings were held with the Ministry of Finance, the Agence Marocaine du Développement de la Logistique (AMDL), PortNet, Agence de Nador West Med, and Moroccan Customs (ADII). So far all project components are proceeding as scheduled.

OECD Portion (Component 3; Effective tax system design) The project Fiscal Connectivity aims at assisting Morocco in building effective and transparent tax systems that also contribute to improving the region’s trade and investment climate. This will be achieved by promoting changes in tax policy and administration that introduce global standards and best practices to tackle tax evasion and avoidance, attract investment and facilitate cross border investment. It includes three sub components:

Assisting with the Implementation of international tax standards on tax transparency and information exchange

Addressing Base Erosion and Profit Shifting (BEPS) caused by aggressive tax planning Revenue Statistics

The implementation of the project has continued progressing well on its key components. A major benefit from the technical assistance provided by the OECD and the Global Forum on Transparency and Exchange of Information (GFTEOI) has been the preparation of the Phase 2 Peer review of Morocco and the launch of a pilot project on automatic exchange of financial account information. The Phase 2 Review Report will be presented to the GFTEI Peer Review Group meeting in September 2016.Important progress has also been made to assist Morocco to counteract Base Erosion and Profit Shifting (BEPS). The first transfer pricing workshop attended by over 25 participants took place in Rabat on 18-20 May 2016. Morocco also benefitted from assistance to present its Revenue Statistics according to the internationally agreed methodology which will enable tax policymakers to better inform their decisions, improve their ability to mobilize domestic resources to support sustainable economic growth and address inequality




Component 1: Process contract (Expression of Interest process completed) on regional electronic data exchange, and execute (ADII, Moroccan customs)

WB 10/31/2016

Component 3: Phase 2 Peer review of Morocco Report OECD Q3 2016

Component 3: Second transfer pricing workshop OECD Q3 2016

Component 3: Second tax statistician in training at the OECD Morocco/OECD Sept –Nov 2016

C. Implementation Status of Components Component 1: Regional customs connectivity Operational dialogue is functional between Maghreb countries when related to technical subjects for which the administrations and operators concerned can easily find constructive projects, unhindered by third parties. This is the case for customs, where the cooperation has been more intense in recent years. This proposal focuses on data exchange, border crossings, corridors, risk management and trade surveillance. Adhering to the World Customs’ Organization vision of the 21st century on Globally Networked Customs (GNC), which aims to rationalize, harmonize and standardize the secure and efficient exchange of information between WCO Members, the Moroccan Customs Authority

(ADII) is requesting assistance in order to link its data platform to regional customs partners, such as Tunisia, Egypt and Jordan.


Cost (US$): US$ 750,000

Sub-component 1.1: Connected customsThis subcomponent will provide Technical Assistance, with the goal of facilitating the effective implementation of a network that would include Morocco, Tunisia, Algeria, France, Spain and potentially Egypt and Jordan. Beyond IT issues, this project involves legal aspects or relationships with the private sector which are complex. The TA will support implementation which currently is at an early stage. The expected benefits are very important in terms of visibility on trade facilitation and on non-tariff barriers or value analysis.Status of Implementation:As for cooperation with Mauritania, Tunisia, Egypt and Algeria: ADII is ready to cooperate within the framework of an action under the auspices of the World Customs Organization (WCO). Currently the implementation of this component is dependent on response from other partners. Algeria has expressed its strong interest. No other new developments have been achieved since January 2016; the cooperation is still being discussed.

Sub-component 1.2: Border crossings and corridors: Improvement of vehicle tracing (ADII)As part of its dematerialization and simplification efforts, ADII plans to set up an automated management system for the temporary admission procedure (AT) passenger vehicles, which will allow considerable reduction in customs clearance time, especially during the transit operation. World Bank will provide technical assistance to design and implement a virtual platform that is linked to ADII’s existing online customs clearance platform, BADR.Status of Implementation: This sub-component needs to be re-evaluated with the client.

Sub-component 1.3: Information, control and risk:This component includes i) the development of mobile applications (software development), and ii) the development of new risk management concept based on predictive analytics (Big Data).Status of Implementation:The implementation mission for this sub-component has been delayed and will take place in October 2016.

Component 2: Facilitating trade through upgrading the institutional and regulatory environment for businessesTo address the issues of regulatory convergence and an improved investment climate for competitive sectors, World Bank will support (i) the simplification effort undertaken by the Moroccan Agency for Logistics Development to improve the regulatory framework for the logistics sector (activity 2.1), and (ii) the public private regional investment climate committee established in the Greater Casablanca and the Oriental regions, and Port agencies (NadorWest Med) (activities 2.2 and 2.3) to improve competitiveness of key sectors, as described below. Working both at the economy-wide and local levels will allow for a better identification of specific binding constraints, including at sector level), and iii) the creation of a Trade portal (PortNet). It also allows for greater involvement of concerned stakeholders.Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): US$ 1,400,000Sub-component 2.1: Upgrading the legal and regulatory environment for the logistics sector One of the priorities of the Deauville partnership is to promote the process of institutional change through regulatory convergence of norms and standards and other behind-the-border regulations to FDI-enhancing aspects of the regulatory environment such as the logistics landscape. In order to reap the full benefits of their greater trade and FDI integration, accelerating the convergence of regulatory frameworks in Morocco with international best practices is key. Before convergence of regulatory frameworks can occur, domestic policies need to be improved. To this end, World Bank will provide technical assistance to AMDL for development of an adequate legal and regulatory framework for the logistics sector in Morocco. Specifically, World Bank will work with AMDL to undertake a regulatory needs assessment for the logistics sector after which policy definition and design of a legal and regulatory roadmap for the short, medium and long term would occur. Upon approval of the legal and regulatory roadmap, World Bank will assist AMDL in the implementation of the policy

recommendations. Status of Implementation: An implementation support mission comprising two experts on logistics regulation took place in Morocco in May 2016. The mission helped advance the development of a logistics law for Morocco, in partnership with the client, the Agence Marocaine de Développement de la Logistique (AMDL). French and European law will be considered for possible templates. The law will include a glossary of logistics vocabulary to be defined juridically, logistics professions, urban regulations on logistics construction, logistics real estate and city logistics.

Sub-component 2.2: Maximizing the impact of the maritime complex Nador West MedThe suggested activity includes an evaluation study of how to maximize the socio-economic impact of the planned industrial port complex of Nador West Med on all investments made or planned in the Oriental region, notably in terms of job creation. This activity would involve expert assessment as well as structured public private dialogue to confirm and deepen the diagnosis on priority sectors and institutional and regulatory reforms needed to maximize the impact of Nador West Med.

Status of Implementation: As a follow-up to the November 2015 mission, during a February 2016, a March/April 2016 and June 2016 mission the Bank worked with the focal point (Nador West Med) and met several stakeholders on the regional and provincial level in the Oriental region. The objectives, scope, and methodology of the assistance are now defined. They are being laid out in a conceptual note that will be delivered to the client in Q3 2016. The team has prepared three different surveys assessing the connectivity challenges of the region. These will be implemented with local partners which have already been pre-identified.

Sub-component 2.3: Improving the competitiveness of businesses and trade in CasablancaThe World Bank has assisted the Government of Morocco in establishing the “Comité National de l’Environnement des Affaires” (CNEA), a public-private Committee created in 2009 and chaired by the Head of Government, which facilitates and oversees the implementation of investment climate reforms. In December 2014, a similar committee (CREA) was created at the local level in Casablanca and works closely with the CNEA. The Regional Investment Center (CRI), which is in charge of managing the CREA, has requested WBG support and expertise to support these working groups, notably those focused on the simplification and automation of key procedures relating to trade, competitiveness of key sectors, and operating licenses. Accordingly, the project will support the CREA in establishing a structured and well-functioning public private dialogue (PPD). The project will also provide expertise to support the implementation of reform actions identified by the CREA working groups to improve the city competitiveness, notably through a legal and regulatory assessment of reform needs in view of simplifying and increasing the transparency of key procedures, through the setting up of IT tools for managing standardized licenses, and through the training of stakeholders.Status of Implementation: The World Bank Group supports the CREA, chaired by the Wali, and the Regional Investment Centre (CRI) on certain reform actions within the framework of the Development Plan of Grand Casablanca. Among the activities supported by the Bank are a study that aims to better understand the fate of companies created by the CRI, and to help identify internal and external factors explaining the evolution of these companies. The study will issue a set of recommendations and will include an action plan. The Bank is in the final round of the process of selecting the consulting firm for implementing a quantitative and qualitative analysis of the creation of companies for the past 10 years in the region of Casablanca. An MoU was signed earlier this year between all entities involved in the business registration process (tax administration, social security administration, central commercial registry, etc.) as well as the Wilaya and Maroc PME, to ensure their commitment and contribution to the work undertaken in the framework of this study. The Bank is also in the final round of designing TOR for hiring consultants for structuring and assisting the work of the recently established public private CREA committee.

Sub-component 2.4: Trade Portal (PortNet)PortNet is a limited liability company in charge of developing and managing an operations management system for Moroccan Ports Communities that coordinates export and import services related to ports. Its purpose is to link all stakeholders (public and private) of the logistics value chain to facilitate access to information and documents and reduce the management costs of exporting and importing. World Bank will be providing

technical assistance to PortNet in the design and launch of a trade information portal, a virtual platform where one can obtain all the information on regulatory requirements needed to undertake international trade. Status of Implementation: A February 2016 Bank mission helped move forward this sub-component together with the client, PortNet. The client has completed the hiring process of the project managers responsible for the trade information portal. An expert who is able to do an international benchmark exercise for the trade information portal will be mobilized.

Component 3: Fiscal connectivity (to be implemented by the OECD)Assist Morocco in building effective and transparent tax systems that also contribute to improving the region’s trade and investment climate. This will be achieved by promoting changes in tax policy and administration that introduce global standards and best practices to tackle tax evasion and avoidance, attract investment and facilitate cross border investment.Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): US$1,087,513Brief Summary of project implementation status: The implementation of the project has continued progressing well on its key components. A major benefit from the technical assistance provided by the OECD and the Global Forum on Transparency and Exchange of Information (GFTEOI) has been the preparation of the Phase 2 Peer review of Morocco which looks at the efficiency of the implementation of exchange of information on requests for tax purposes. Important progress has also been made to assist Morocco to counteract Base Erosion and Profit Shifting (BEPS) which undermines the tax system integrity and the trust of citizens. The GoM has taken an active part in the G20/OECD work on BEPS and in February 2016 participated in the regional consultations on BEPS held in Senegal.

Sub-component 3.1: Assisting with the Implementation of international tax standards on tax transparency and information exchange http://www.oecd.org/tax/transparency/abouttheglobalforum.htm

Assist Morocco with the implementation of the international standard on exchange of information on request and the new standard of automatic exchange of financial account information. Assist Morocco to maximize the benefits of effective implementation of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters in the areas of exchange of information, assistance in tax collection, exchange of tax intelligence, bilateral/multilateral simultaneous tax examinations and joint audits Activity 3.1.1: Reviewing the current exchange of information framework and practices, making recommendations and assisting with legislative and process changesStatus of Implementation : In 2015 Morocco underwent the Global Forum on Tax Information exchange (GFTEI) Phase one Peer Review which made a number of recommendations for improvement of its legal framework (report available at: http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-peer-reviews-morocco-2015_9789264233614-en#page1). Morocco benefitted from the technical assistance of the GFTEI Secretariat to prepare for the Phase 2 Review which looks at the effective implementation of EOI on request. The Phase 2 Review has been completed and will be presented to the GFTEI Peer Review Group meeting in September 2016.A pilot on Automatic exchange of financial account information is underway between France and Morocco.

Activity 3.1.2: Enhancing the effectiveness of Exchange of Information Unit Status of Implementation: Morocco has identified as a high priority receiving assistance from the GFTEI to put in place an effective EOI Unit with adequate human resources, monitoring systems, guidance manuals, security and IT systems etc. according to international best practices. This is expected to improve the quality and speediness of EOI on request. A new EOI Unit has been established in the Directorate for tax legislation and studies and international cooperation within General Directorate for Taxes. The head of the new EOI unit is in the process of being selected.

Activity 3.1.3: Exploiting the Multilateral Convention on Mutual Administrative Assistance in Tax Matters Status of Implementation: A seminar to raise the awareness of tax auditors on the potential of EOI to improve the performance of tax audit of cross border transactions was held in Rabat on 18-20 April 2016 and attended

http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-peer-reviews-morocco-2015_9789264233614-en%23page1



http://www.oecd.org/tax/transparency/abouttheglobalforum.htm

by 26 participants. Another event in 2017 will focus more particularly on the potential of the MAC to counteract Base erosion and profiting shifting (BEPS) (there are now almost 100 jurisdictions participating to this powerful instrument (see http://www.oecd.org/ctp/exchange-of-tax-information/Status_of_convention.pdf ) Morocco signed the Convention on 21 May 2013 and ratified it in February 2016. Morocco still needs to deposit its instrument of ratification for the Convention to come into force. Activity 3.1.4: Automatic Exchange of Information [AEOI] pilotStatus of Implementation: As part of the GFTEI African initiative a Pilot project has been agreed between Morocco and France on Automatic exchange of financial account information. A MOU will be signed between France and Morocco to launch the pilot. Preparatory work is well under way.

Activity 3.1.5: Capacity building through staff assignment and participation at multilateral eventsStatus of Implementation: Moroccan tax officials with adequate skills will be selected to come to the GFTEI Secretariat as trainees. Sub-component 3.2: Addressing Base Erosion and Profit Shifting (BEPS)

Enable Morocco to benefit from assistance in the implementation of the BEPS package the toolkits designed to assist in the implementation of the BEPS solutions. BEPS issues lead to inefficient allocation of resources by distorting investment decisions, unfairness and undermining voluntary compliance (see http://www.oecd.org/tax/beps.htm ).

Activity 3.2.1: Assistance in participating in the BEPS project rule setting and implementing appropriate measures in Morocco Activity 3.2.2: Assistance to develop and implement a strategy on implementing an effective regime to address Transfer Pricing and other BEPS risks (OECD executed)Activity 3.2.3: Assistance to develop and implement an Advanced Pricing Agreement (APA) program

Status Status of implementation on activities 3.21, 3.2.2 and 3.2.3 : On the basis of replies to a comprehensive questionnaire, and input from findings during training in Rabat the OECD is presently in the process of preparing an in depth Diagnostic on BEPS risks in Morocco, existing legislation and regulations on transfer pricing, thin capitalisation and other legislation relating to profit shifting (together with proposals for reform). The draft diagnostic report and proposals for reform will be discussed with the GoM in early 2017 to agree on the measures to be taken and the assistance to be provided. Senior Moroccan tax officials will be benefiting from assistance to put in place the measures developed to address BEPS issues. An extensive capacity building programme for tax auditors has been launched on the most significant legal and practical issues to be taken into account when auditing MNEs from the basic concepts to the most complex issues introducing them to the “best practice” audit approaches. This training will strengthen Morocco’s capacity to protect its tax base against Aggressive Tax Planning of MNEs as well as profit shifting through transfer pricing or other means, while avoiding double taxation that would be detrimental to the overall business climate. The first workshop on transfer pricing attended by over 25 tax auditors from the Directorate of Large Businesses and from Regional Tax Audit Departments took place on 23-27 May 2016 in Rabat and focused on the arm’s length principle; Comparability analysis; Transfer pricing methods; Intra-group services; Dispute resolution; and Exchange of information.

Activity 3.2.4: Capacity building through participation at multilateral events Morocco is invited to attend the launch of the BEPS inclusive framework in Kyoto on 30 June-1 July 2016 and to send participants to BEPS related meetings and to seminars on International Tax Avoidance - Focus on Hybrids and Interests/ Transfer Pricing and Customs Valuation/Transfer Pricing Documentation and Country By Country Reporting.Sub-component 3.3: Revenue StatisticsEnable Morocco to produce accurate, complete, current, consistent and reliable data according to the OECD methodology which are crucial to enhancing the effectiveness and efficiency of tax policy.

http://www.oecd.org/tax/beps.htm

http://www.oecd.org/ctp/exchange-of-tax-information/Status_of_convention.pdf

Activity 3.3.1: Developing internationally comparable Revenue Statistics data, including customs dataStatus of Implementation: The OECD has assisted the Moroccan authorities to gather data according to the methodology used by OECD and other countries. Morocco was one of the eight countries included in the first edition of Revenue Statistics in Africa published on 1st April 2016 (available at: http://www.oecd.org/tax/africa-revenue-statistics.htm ). Extending the OECD methodology to African countries enables comparisons about tax levels and tax structures on a consistent basis, both among African economies and with OECD, Latin American, Caribbean and Asian economies. Having internationally comparable indicators will enable Moroccan tax policymakers to better inform their decisions, improve their ability to mobilize domestic resources to support sustainable economic growth and address inequality.

As part of the capacity building, a Moroccan statistician from the DGI has been based at the OECD from April to June 2016 and shared the Moroccan experience at an OECD, African Tax Administration Forum (ATAF) , AU workshop on Revenue Statistics in South Africa end of June aimed at preparing the 2017 edition of Revenue Statistics in Africa with a broader scope and more countries. A second Moroccan statistician from the DGI will join the OECD from September to November 2016 for training. Onsite technical support from the OECD Centre for Tax Policy will follow in Rabat during Q4 2016.


(US$)

(x)


(y)

Total (US$)


WB: 0OECD: 0

WB: 2,325,000OECD: 1,019,000

WB: 2,325,000OECD: 1,019,000


WB: 0OECD: 0

WB: 2,325,000OECD: 43,640

WB: 2,325,000OECD: 43,640

Actual Amount Disbursed (c): WB: 0OECD: 0

WB: 39,023.91OECD: 163,953

WB: 39,023.91OECD: 163,953

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2015 WB: 0

OECD: 0WB: 50,000

OECD: 0 WB: 50,000

OECD: 02016 WB: 400,000

OECD: 0WB: 500,000

OECD: 179,257WB: 900,000

OECD: 179,257 2017 WB: 700,000

OECD: 89,394WB: 500,000

OECD: 463,433WB: 1,200,000OECD: 552,827

2018 WB: 175,000OECD: 122,963

WB: 0OECD: 0

WB: 175,000OECD: 122,963


WB: 1,786.93OECD: 69,463

WB: 135.823.07OECD: 0

WB: 137,610OECD: 69,463

http://www.oecd.org/tax/africa-revenue-statistics.htm

http://www.oecd.org/tax/africa-revenue-statistics.htm


Project Development Objective (PDO: The objective of the project is to streamline the chains of international trade between the Maghreb countries and with their major trading partners, to increase cooperation among border management agencies, to strengthen capacities in economic governance, and to build effective and transparent tax systems.




Frequency

Data Source/

Methodology


Collection


definition etc.)Sep 2015

– Aug 2016

F

Sept 2016 –

Aug 2017

F

Sep 2017 –

Jun 2018

F

YR 4

F

YR5

F

Component 1 (World Bank)Indicator 1.1: Operational customs data exchange channel between Morocco and Tunisia functional

Binary No No Yes One time ProjectReports

ISAs

Indicator 1.2: Customs agents and IT technicians trained on the use of mobile customs applications/ software

Quantitative 0 50 50 One time Project Reports

ISAs

Indicator 1.3: Temporary admission tracing tools in Morocco available


ISAs

Component 2 (World Bank)Indicator 2.1: Outputs expected by ADII and PortNet submitted


ISAs

Indicator 2.2: Regulatory reviews carried out


ISAs

Indicator 2.3: Government bodies and institutions supported (AMDL)

Binary No No Yes One time Project Reports

ISAs AMDL to receive support services aimed at increasing their capacity

to carry out regulatory and legal reviews of the business environment for the logistics sector.

Indicator 2.4: Action plans to address binding constraints to the competitiveness of selected sectors in Nador adopted


ISAs

Indicator 2.5: Reform roadmap formally launched for modifying key regulations and procedures identified as main bottlenecks for enhancing the competitiveness of Casablanca economy


ISAs

Indicator 2.6: Output expected by PortNet submitted


ISAs

Component 3 (OECD)

Indicator 3.1: Tax transparency and international tax co-operation as measured against international standards

Qualitative and quantitative

In 2015 Phase 1 Peer Review of Global Forum completed

Phase 2 Peer Review of Global Forum completed

N/A International standards on tax transparency met

According to the Global Forum Schedule

Global Forum on Transparency and Exchange of Information for Tax Purposes Reports

Global Forum and DGI

www.oecd.org/tax/transparency/

International standards as measured by Phase 1 and Phase 2 peer review of the Global Forum

Indicator 3.2: implementation of solutions to address Base Erosion and Profit shifting

Quantitative BEPS diagnostic

b) No Advanced Pricing Agreement (APA) in place

N/A a) CIT increased and broadened (Baseline plus 10%)

a) CIT increased and broadened (Baseline plus 10% cumulative)

Annually Terms of reference of the GFTEI

DGI a) Corporation tax increases as profit shifting risks are addressed

b) Unilateral APA’s provide certainty for

b) 1 APA operational

b) APAs operational

c) 3 APA operational (cumulative)

business

Indicator 3.3: Transparent revenue statistics published in internationally comparable format

Qualitative Statistics not published in internationally comparable format

Revenue statistics published according to internationally comparable criteria

Repeat of 2016

Repeat of 2017

Annually Revenue Statistics publications

OECD/DGI Publication of statistics is measure of transparency and allows international comparability

Indicator 3.2: Tax transparency and international tax co-operation as measured against international standards

Quantitative Corporation tax yield (approximately 17% of total tax revenues)

Zero unilateral Advanced Pricing Agreements (APA) in place

N/A

b) 1 APA operational

a) Corporate income tax increased and broadened (Baseline plus 10%)

b) 2 APAs operational (cumulative)

a) Corporate income tax increased and broadened (Baseline plus 10% cumulative)

c) 3 APA operational (cumulative)

Annually DGI corporate income tax data

DGI a) Corporation tax increases as profit shifting risks are addressed

b) Unilateral APA’s provide certainty for business

Indicator 3.3: Transparent revenue statistics published in internationally comparable format

Qualitative Statistics not published in internationally comparable format

Revenue statistics published according to internationally comparable criteria

Repeat of 2016

Repeat of 2017

Annually Revenue Statistics publications

OECD/DGI Publication of statistics is measure of transparency and international comparability

INTERMEDIATE RESULTS (Component 2)

Intermediate Result (Component Two):Note: No intermediate results previewed for components one due to the short duration of the project.

Intermediate Result indicator 2.1: Legal and regulatory roadmap for the logistics sector is endorsed by the AMDL.

Binary

No Yes Yes One timeProjectReports

ISAs

Intermediate Result indicator 2.2: Assessment and prioritization of binding constraints to competitiveness in Nador carried out.

Binary

No No Yes One timeProjectReports

ISAs

Intermediate Result indicator 2.3: Number of workshops and focus groups organized with the CREA and carried out for identifying and assessing binding constraints to competitiveness

Numerical

One timeProjectReport

ISAs

Intermediate Result indicator 2.: Assessment report on simplification of key operating procedures endorsed by the CREA

Binary

No No No Yes One timeProjectReport

ISAs

INTERMEDIATE RESULTS (COMPONENT 3)

Sub Component 3.1: Assisting with the implementation of international tax standards on tax transparency and information exchange

PDO Level Results

Indicators*

Unit of Measure

Baseline Cumulative Target Values Frequency

Data Source/

Methodology


Collection


2016

F

2017

F

2018

F

(a) Activity 3. 1.1: Reviewing the current framework and practices, making recommendations

Qualitative

Global Forum Phase 1 peer review

Global Forum Phase 2 peer review

n/a Legal and institutional reforms

According to Global Forum timetable

Terms of reference of the Global forum

Global Forum/DGI

Morocco implements the recommendations of the GFTE and meets the international standard on EOI on request.

and assisting with legislative and process changes

2015 to be adopted Sept 2016

are adopted to improve EOI

(b) Activity 3.1.2: Enhancing the effectiveness of Exchange of Information (EOI) Unit

Quantitative and Qualitative

Zero EOI requests initiated

10 EOI requests initiated

20 EOI requests

initiated

(cumulative)

30 EOI requests initiated (cumulative)

Project Implementation Reports

DGI/Global Forum Reports

EOI requests and tax reassessments based on foreign source information are indicative of effective EOI operations

(c) Activity 3.1.3: Exploiting the Multilateral Convention on Mutual Administrative Assistance in Tax Matters MAC (OECD executed)

quantitative and qualitative

MAC signed in 2013

MAC ratified awaiting Royal Seal

25 officials trained on EOI

Conc MAC comes into effect

Assessed annually


DGI MAC ratification will allow broader cooperation with all jurisdictions covered by the Convention and serve as a basis for Automatic exchange of financial account information and country by country reporting. (http://www.oecd.org/ctp/exchange-of-tax-information/conventiononmutualadministrativeassistanceintaxmatters.htm)

(d) Activity 3.1.4: Automatic Exchange of Information AEOI Pilot

quantitative

No information shared automatically

Signature of the MCAA for AEOI of Financial Account Information

Pilot on AEOI of Financial Account Information Legislation in place to permit automatic exchange

AEOI According to Global Forum timetable



Success criterion is information exchange of financial account information completed on an automatic basis and tax reassessment of unreported income

(e) Activity 3.1.5: Capacity building through staff assignment and participation at multilateral events

quantitative

25 officials trained on the benefits of the MAC

25 officials trained on the potential of EOI to improve tax audits A

2X officials trained on 2 X courses to be determined F

2X officials trained on 2 X courses to be determined F

Assessed annually



Skills acquired by tax auditors on EOI to improve the efficiency of tax audits of cross border transactions

Sub Component 3.2:Addressing Base Erosion and Profit Shifting

http://www.oecd.org/ctp/exchange-of-tax-information/conventiononmutualadministrativeassistanceintaxmatters.htm



(a) Activity 3.2.1: Assistance in participating in the BEPS project rule setting and implementing appropriate measures in Morocco

quantitative

BEPS actions finalized end 2015

The GoM contributes to the regional BEPS consultation adopts 1 key BEPS priority action (tbc) F

DGI adopts 2 key BEPS priority actions (tbc) cumulative F

DGI adopts 3 key BEPS priority actions (tbc) Cumulative F

Assessed annually


DGI Morocco benefits from the toolkits designed to assist developing countries in the implementation of the solutions to address BEPS.

(b) Activity 3.2.2: Assistance to develop and implement a strategy on implementing an effective regime to address Transfer Pricing and other BEPS risks (OECD executed)

qualitative

Risk assessment of profit shifting in 2015, baseline

10 % increase in audits on BEPS issues. F

10 % increase in audits on BEPS issues, cumulative F

10 % increase in audits on BEPS issues, cumulative. F

Assessed annually


DGI Audits lead to adjustments and thus increased revenues

(c) Activity 3.2.3: Assistance to develop and implement an Advanced Pricing Agreement (APA) program

(see also above PDO level 1 indicator)

quantitative

Legislation and rules not yet fully in place A

Legislation and regulation fully in place to facilitate APA program F

APA guidelines and procedure drafted

APA staffing structure in place and operational

Assessed annually


DGI APAs between DGI and companies

(d) Activity3.2.4: Capacity building

quantitative

2 x officials

2 x officials in 2 X

2 x officials

Assessed annually

Project Implementat

DGI Skills/knowledge acquired support other sub components

through participation at multilateral events

in 2 X courses F

courses F in 2 X courses tbc F

ion Reports

Sub Component 3.3: Revenue Statistics

(a) Activity 3.3.1: Capacity to develop internationally comparable Revenue Statistics data, including customs data.

Qualitative/

Quantitative

N/A 1 official trained at OECD (CTPA

rev stats team)

Apr._June A

1 official trained at OECD (CTPA

rev stats eam) F

Sept Nov) F

completion of statistics from 1990

to 2016

expansion of

coverage to

include local

authorities

taxation

Annually Project Implementation Reports

DGI Skills and knowledge required to publish revenue statistics according to the international methodology.


Accessing Overseas Employment Opportunities for Moroccan Youth

A. Basic Project InformationActivity Name: Accessing Overseas Employment Opportunities for Moroccan Youth

Country Name: Kingdom of Morocco Name of Implementation Support Agency(ies): World Bank

Name of ISA Project Leader: Ms. Manjula Luthria Email of ISA Project Leader: [email protected]

Recipient Entity: Agence Nationale de Promotion de l’Emploi et des Compétences (ANAPEC)


Total Amount Approved by the Transition Fund (US$): 1.75M

Additional Funds Leveraged and Source(s), if any (US$): an additional 20% of project budget (around 300,000 US$) will be added as co-financing to cover for the VAT applicable in Morocco.



June 11th, 2014



June 30, 2018



Inclusive Development and Job Creation

Secondary Pillar(s): Competitiveness and Integration


B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The proposed project development objective is to strengthen institutional capacity to pilot the reform of international labor intermediation services in Morocco and better prepare the Moroccan workforce for greater integration with international labor markets through a concrete recruitment experience with Germany.


Unsatisfactory

Rating for overall implementation progress: Unsatisfactory

Brief Summary of Project Implementation Status: The grant was signed in April 2015 and in this period, GIZ and ANAPEC have drafted and negotiated, with WB´s support, the single source contract that will give the basis for project implementation in Morocco. A clearance from the WB Regional Procurement Manager to proceed with this contract was provided this month. The PMU has hired the procurement specialist who is helping get all contract details ready for signature. A financial specialist is in the process of getting hired (as of July 20, 2016). The PMU has also opened the project account. The delays in the drafting of the documents were partly due to GIZ´s change of the project team and internal restructuring, as well as an issue regarding the applicable taxes on the contract (resolved by ANAPEC covering that extra 20% of VAT on the contract amount) and some previous concerns regarding the environment in Germany with regards to immigration. The project management team on GIZ side has been identified and is already involved in planning project implementation activities, in coordination with ANAPEC. The contract signature took place on July 20, 2016. Project activities are lined up to start implementation immediately after.


Expected Date of

DeliveryStart project implementation ANAPEC and GIZ 8/1/2016

C. Implementation Status of Components Component 1: Institutional capacity building for the selection and preparation of overseas employment candidates: The first component will provide technical assistance and capacity building to ANAPEC to strengthen the design of pre-selection procedures, and implementation of the pre-selection process for the Moroccan candidates seeking overseas employment opportunities. The component will also finance the development of pre-departure training modules and seminars in Morocco to support ANAPEC in preparing the candidates for their stay and employment abroad.

Previous Rating: Not Applicable Current Rating: Unsatisfactory Cost (US$): 1,300,000Sub-component 1.1: Pre-selection of candidates: This sub-component will finance consultant services and workshops to provide technical assistance and capacity building to ANAPEC to strengthen the design and implementation of pre-selection procedures for Moroccan candidates seeking overseas employment opportunities.

Status of Implementation: Not yet startedSub-component 1.2: Pre-departure training: This sub-component will finance consultant and firm services, training modules and seminars to support ANAPEC in preparing the pre-selected candidates for their stay and employment abroad. This sub-component will support ANAPEC in: (i) organizing an intensive language and intercultural training course tailored to the specificities of the Tourism-Hospitality industry and work and daily life abroad; and (ii) developing a specific module on expectation management.

Status of Implementation: Not yet startedSub-component 1.3: Assistance upon departure and integration support: This sub-component will finance visa fees, work permit processing, travel costs and any other travel-related expenses upon departure for the selected candidates, as well as consultant services, workshops and travels at destination to support the integration of the candidates in their hosting companies throughout the program.


Component 2: Developing sustainable partnerships between public and private actors within and across borders for job placement beyond the pilot: The second component will focus on building sustainable partnerships between ANAPEC and relevant public and private partners in the destination country to facilitate overseas job placement throughout and beyond the pilot. It will entail regular consultations with employers’ representatives and other relevant players at destination.Previous Rating: Not Applicable Current Rating: Unsatisfactory Cost (US$): 200,000Status of Implementation: Not yet started

Component 3: Knowledge Sharing and Dissemination: The final component will support the Ministry of Employment and Social Affairs (MESA) and ANAPEC in drawing and sharing the lessons learned from the design and implementation of the pilot at the national, regional and international levels. Activities will include south-south learning, monitoring and evaluation, as well as communication and knowledge dissemination.Previous Rating: Not Applicable Current Rating: Unsatisfactory Cost (US$): 200,000Status of Implementation: Not yet started



Execution (US$)(y)

Total (US$)

(x)Approved Amount for Direct Project Activities (a):

1,550,000 200,000 1,750,000


0 0 0


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 02015 350,000 350,0002016 350,000 500,000 850,0002017 250,000 200,000 200,0002018 200,000 150,000 350,0002019


83,030 141,970 225,000




MeasureBaseline




Collection


definition etc.)Sep

2014 – Aug 2015

A

Sep 2015 –

Aug 2016

A

Sep 2016 –

Aug 2017

F

Sep 2017 –

Jun 2018

F

--

Indicator One: Morocco, through ANAPEC, has established stronger pre-selection procedures and pre-departure training modules for candidates seeking overseas employment

Qualitative

None No No Yes Yes Once, updated as necessary

Implementation Completion Report

ANAPEC and MESA

Lessons from the pilot inform the design of pre-departure and pre-selection guidelines that are in line with international good practice.

Indicator Two: A sustainable public-private partnership between ANAPEC, GIZ and German employers’ representatives is established and functioning in practice to scale up and replicate the pilot

Qualitative

None No No No Yes Annually Implementation Completion Report, ANAPEC partnership databases

ANAPEC ANAPEC maintains lists of relevant partners in Germany and contact them frequently to update selection requirements, discuss success of apprentices, etc.

Indicator Three: Percentage of German employers willing to hire again from Morocco

Percent None No N/A N/A TBD after initial survey

Twice Employer surveys

World Bank Increase in percentage of employers who would be willing to hire a Moroccan worker

Indicator Four: A regional model Qualitativ None No No No Yes Ongoing Implementati ANAPEC and Pilot is endorsed

of good practice is developed and shared through World Bank and other networks

e on Completion Report, citations of program as a good practice, replication

World Bank by World Bank peer reviewers as a good practice and used as a model for other labor intermediation programs, in Morocco and abroad.


Intermediate Result (Component One): Institutional Capacity Building for the Selection and Preparation of Overseas Employment Candidates

Intermediate Result indicator One: Pre-selection manual which incorporates feedback from project stakeholders is developed and aligned with the established selection principles and international good practice

Qualitative

None No No No No Once Project implementation reports

ANAPEC and GIZ

Manual is developed and used for candidate pre-selection

Intermediate Result indicator Two: Candidate pre-selection completed in line with good practice and led jointly by private and public sector stakeholders from destination countries

Percentage

None No No 45 45 Once Project implementation reports

ANAPEC and GIZ

List of all candidates who applied, were shortlisted, and were selected

% of short-listed candidates who meet agreed selection criteria

Intermediate Result indicator Three: Pre-selection interviews held in Morocco, led by ANAPEC and destination country interviewers

Qualitative

None No No Yes No Once Project implementation reports

ANAPEC and GIZ

Successful pre-selection interviews, list of participating destination country interviewers

Intermediate Result indicator Four: Pre-departure and orientation training, including language and intercultural training, tailored to the industry and specificities of work and daily life at the destination, designed

Qualitative


ANAPEC and GIZ

Training designed and delivered alone by GIZ or together with another firm

and implemented with a strong record in language training for employment in Germany

List of candidates with signatures to prove participation in the training modules

Intermediate Result indicator Five: Module on expectation management, incorporating input from destination country stakeholders and return migrants or diaspora, designed by ANAPEC and its partner agencies

Qualitative


ANAPEC and GIZ

Module designed and delivered

Intermediate Result indicator Six: Apprenticeship participants and firms reporting participation in integration activities

Percent None No No 100 100 Ongoing Project implementation reports, survey reports

MRE and GIZ % of candidates and firms assigned and working with integration mentors, % of firms and candidates who participated in orientation seminar (with signed lists to prove participation)

Intermediate Result indicator Seven: Percent of participants who report being adequately equipped for their apprenticeship

Percent None No No 50 75 Twice Participant survey report

World Bank and MRE

Participant surveys, administered in the first and the final year of the apprenticeship by WB and MRE, and shared with the TSC

Intermediate Result (Component Two): Developing Sustainable Partnerships between Public and Private Actors Within and Across Borders for Job Placement Beyond the Pilot

Intermediate Result indicator One: Preparation of a placement strategy for ANAPEC and MESA in Germany on the basis of recent and detailed information on growth prospects and labor needs in key sectors of the German economy, legal frameworks and administrative arrangements for the admission of foreign workers at different skill levels

Qualitative

None No No Yes Yes Once Strategy document

ANAPEC/MESA/GIZ

Strategy document completed with support from GIZ

Intermediate Result indicator Two: Consultations held with employers and other relevant public and private players in Germany based on the sectoral analysis to be conducted for the placement strategy beyond the pilot

Qualitative

None No No Yes Yes Ongoing Project implementation reports

ANAPEC and GIZ

List of employers, employers’ representatives and other relevant players consulted in Germany

Intermediate Result (Component Three): Knowledge Sharing and Dissemination

Intermediate Result indicator One: South-South workshops with other MENA origin countries and Deauville partners, at least one of which is held in Morocco, to share experience on international labor intermediation and related pilot experiences

Qualitative

None No No No Yes Twice Project implementatio

n reports

WB South-South workshop

proceedings prepared

Intermediate Result indicator Two: Firms surveyed to measure level of satisfaction with candidates and perceptions of Moroccan workers

Percent TBD through survey

N/A Baseline + %

TBD

Baseline + %

TBD

Baseline + %

TBD

Thrice Firm surveys WB Firms surveyed to assess their perceptions of

Moroccan workers

Intermediate Result indicator Three: Communication strategy and material designed

Qualitative

None No No Yes No Once Project implementatio

n reports

WB Strategy to disseminate

lessons learned from the pilot to

national, regional, and World Bank

audience developed


Local Government Support Program

A. Basic Project InformationActivity Name: Local Government Support Program (PACT)Country Name: MOROCCO Name of Implementation Support Agency(ies): World

BankName of ISA Project Leader: Andrea Liverani Email of ISA Project Leader: [email protected] Entity: Ministry of Interior - Morocco Name and Email of Recipient Entity Contact:

M. Hamimaz [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 3,900,000

Total Amount Disbursed (Direct and Indirect in US$): 1,274,691.40


Project Implementation Start Date:December 1, 2013

Project Closing Date:August 31, 2018



Investing in Sustainable GrowthCompetitiveness and IntegrationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: To strengthen the public service delivery capacity at decentralized level in Morocco by improving local governments’ access to support services and incentives.






The Mid-Term Review (MTR) conducted in May 2016 confirmed the clear pick-up in implementation noticed over the past 10 months, progress on certain results indicators, and further signs of increased ownerships engagement of key stakeholders involved. Ratings for project implementation and development objective have been upgraded to Moderately Satisfactory (MS).

Both components are now ongoing and are progressing at a satisfactory pace: in accordance with the Results Framework, a first Technical Assistance Center (centre de ressources) should be created over the summer in Casablanca and become fully operational by end of 2016 (component 1). As for the technical assistance on inter-municipal groupings and asset companies (component 2), activities are now in place: the first two deliverables for phase 1 have been issued. Also, 5 additional activities confirmed by the 1st COPIL will be included in the project provided the ongoing discussions between the Ministry of Interior and the Ministry of Finance lead to the revision of the grant amount in Moroccan Dirhams (MAD). Indeed, the favorable evolution of the exchange rate since 2013 (appreciation of the US dollar) could lead to a positive balance of about MAD 10 million, which should be confirmed through a new budgeting decree by the Ministry of Finance. The decree would be published after a new procurement plan presented to the Bank for non-objection is approved by the next COPIL.

The organization of the first Steering Committee (Comité de Pilotage, COPIL) on April 28, 2016 confirmed ownership of the project among the implementation agency (Ministry of Interior, MI). Chaired by the Wali Secretary General and the Wali Director General of Local Governments (DGCL) at the Ministry of Interior, the COPIL confirmed the willingness of the Government to make every effort to accelerate the implementation of PACT and meet the objectives defined in the PAD. Among its recommendations, the COPIL insisted on the need for the Support Centers (component 1) to be funded on a sustainable basis (recommending that the Resource Centers be institutionally anchored within the Wilayas).

Financial management of the project has also undergone major improvements, particularly in terms of procedures, as well as regarding cumulative commitments, which reached 52% of the total budgeted amount of the grant in April 2016. As for cumulative commitments by end of 2017, they are estimated at 110% of the total budgeted amount of the grant (the exceeding amount should be funded through the revision of the grant amount in Moroccan Dirhams (MAD). Also, an ex post procurement review (revue a posteriori des marchés) has been conducted by the Bank team in May 2016. Among its main conclusions, the review highlights a recent and significant pick-up in the implementation rate of procurement activities. The main recommendations include the streamlining of key procedures (formal notice of contract awards, etc.), as well as increased PIU coordination to meet deadlines.

The recent progress in project implementation is also illustrated by the fact that all intermediate results defined in the Results framework for calendar year 2016 are expected to be met by December 31 thanks to the efforts carried out over recent months, which include:For component 1:

- Signature in November 2015 of the contract for the design and initial set-up of the resource centers. The finalization of the final deliverable aimed at defining the most adapted institutional and financial arrangements (schema-type) is underway.

- Approval by the COPIL of two additional activities to be included in the procurement plan.For component 2:

- Signature of the technical assistance contract at the end of February 2016. The first two deliverables for phase 1 have been submitted and are currently under review.

- Three additional activities have been approved by the COPIL under component 2. For component 3:

- The PIU has continued to improve the implementation performance, particularly in relation to consultation and coordination of MI teams involved in the PACT. This enabled the joint development and regular update of an action plan, a procurement plan and a disbursement plan which implementation is followed by the PMU. Furthermore, regular meetings, including with the World Bank team, have promoted dialogue and joint decision making.

- A new procurement specialist was recruited in January 2016. The procurement team with DAA shows increased understanding of Bank procedures and commitment to the project, and has been working in close coordination with the rest of the PIU. An updated procurement plan is currently under finalization: it includes the new activities to be potentially funded through the positive balance that may result from the favorable evolution of the exchange rate.

- The hiring of the M&E specialist (which should allow to bring the PIU up to full speed) was launched in May 2016. His missions will include the development of a project M&E system as well as the review of the results framework and the mapping of the project results chain. He will also maintain close follow up of the PDO.

- Following a first update of the Operational Manual (MANOP) in March 2016 (to clarify and simplify procedures in the execution of the Program), the document has been further updated in May 2016 through joint working sessions with the World Bank team. This allowed to: (i) clarify the section relating to the organization of the PMU and to the COPIL meetings (required to meet at least twice a

year); (ii) correct certain deadlines or procedures for financial management and procurement; (ii) update of the Results Framework and better define certain baselines and indicators. An updated version of the MANOP had been presented to the Steering Committee for validation.

• Progress of some project results, including > a first Support Center is expected to be created and operational in Casablanca by end of 2016 (indicator 1). Also, a new budget line has been dedicated to the program through the 2016 Budget Law which constitutes a clear signal in favor of the program sustainability after the grant closing date. > counterpart funding is exceeding initial expectations, further demonstrating the Ministry of Interior’s continued commitment to the project’s objectives. According to estimates by the PIU, funding committed by the State since November 2013 in order to support the project objectives should amount to USD 1.7 million by the end of 2016 –thus exceeding the target of USD 1 million set by the results framework) (indicator 2). > The methodology for calculating the target values for indicator 3 has been defined.

The team will maintain close support to the client over the coming months.




Consultations with the Ministry of Finance (Budget Directorate) to define the institutional and financial modalities for operationalizing the Resource Centers. Consultations with the Wilaya et Municipality of Casablanca de Casablanca to ensure the setting up of the first Resource Center.

PIU 9/15/2016

Sharing of the ToRs for the new activities (component 1 and component 2) with the Bank team for non-objection.

PIU 9/15/2016

Setting up of the first resource center in Casablanca (appointment of the General Director) (the Center is to by fully operational by end of 2016.

PIU 10/15/2016

Launch of the second phase for the technical assistance for component 2

DRSC 09/01/2016

Confirmation of the revision of the grant amount in Moroccan Dirhams (MAD)

MF 09/30/2016

C. Implementation Status of ComponentsComponent 1: Deconcentrated LG Support Centers. This component designs and pilots a support mechanism that will provide LGs with technical assistance to prepare and manage projects.Previous Rating: Moderately Satisfactory


Cost (US$): US$1,950,000, of which US$900,000 in terms of local contributions

Sub-component 1.1: Initial studies and implementation planning. Expertise to assist the Moroccan Government with reviewing implementation options and organizing a consultative process to define, in partnership with LGs, central government departments and other stakeholders, the optimal legal and administrative form, territorial mapping, and deployment plan of such Support Centers. This will also include staffing requirements, IT and other resources, budget, etc.

Status of Implementation: Strong efforts have been made to speed up the implementation. The final deliverable aimed at defining the most adapted institutional and financial arrangements (schema-type) for

the centers is currently being revised by the consultant to incorporate the recommendations of COPIL and the World Bank. It was agreed with the COPIL and the World Bank that the centers should be housed by and institutionally linked to the Wilayas, in order to ensure their regular and sustainable funding. Sub-component 1.2: Setting up and operation of a small number of Support Centers on a pilot basis. Establishment of the first three to four Support Centers and possibly the strengthening of the central support unit.

Status of Implementation: The COPIL is strongly supporting the creation of a first support center in Casablanca, since the Wilaya as well as the municipality have clearly expressed their willingness to set up such an institution in the economic capital as soon as possible. To this end, it has been agreed that the consultant, in coordination with the PMU, DRSC, DAA and DAJEC will hold discussions with the MF to further define potential scenarios allowing for a joint financing of the center by the central and local governments. Meetings with representatives from the Wilaya and the municipalities will also be hold throughout the summer. The General Director should be appointed in September and the center should be fully operational by end of 2016. Sub-component 1.3: Tools development. Inventory of existing resources and the system to make them publicly available, so that each Support Center can offer them to LGs. If the inventory shows significant gaps, it would also fund the design of new tools, including possible software and hardware, and/or selected studies.

Status of Implementation: Two new activities have been validated by the COPIL and should be launched and will be included shortly in the procurement plan:

- Preparation / updating / translation of guides and procedure manuals for key activities of municipalities regarding the provision of municipal public services. A set of documents, including practical guides, organic laws and implementing regulations, will be available online (estimated amount of MAD 1.5 million);

- compendium (digital version) of texts relating to the management of local public services for an easier access to and understanding of texts relating to territorial authorities, groups, public institutions, local development corporations, etc. (estimated amount of MAD 1.2 million).

Component 2: This component includes specific consulting services and incentives towards accelerating the formation of inter-municipal cooperation structures and the creation of new service delivery models on a pilot basis. Inter-municipal cooperation structures are necessary to manage local network services, such as urban transport which often needs to go beyond municipal boarders, in an efficient and effective way.Previous Rating: Moderately Satisfactory


Cost (US$): US$5,950,000, of which US$3,000,000 of local contributions in terms of incentives

Sub-component 2.1: Technical Assistance to LGs to set up associations. The grant will finance consulting services to provide hands-on expertise to a limited number of municipalities wishing to form an association on a pilot basis. This assistance will help them design adequate arrangements for governance, budgeting and financial transfers, staffing, incentive mechanisms, etc.Sub-component 2.2: Stocktaking of private sector participation (PSP) issues, design of a sustainable sector financing framework, design and set up of asset companies (SP). This will include studies, such as a brief study to re-assess what conditions would be optimal in Morocco for preserving effective private sector involvement. Such study will be based on the results of existing sector-specific studies and complement them to draw generic lessons, with a view to designing the new pilots. It will also include the review of possible designs for SPs or other types of institutional arrangements based on international benchmarks.

Status of Implementation: The technical assistance contract at the core of this component has been signed at the end of February 2016. Following a launching mission in April in the 4 pilot sites (Casablanca, Rabat, Tangier, Agadir), the firm produced an orientation note and submitted the first two deliverables, currently under review. Three additional activities have been approved by the COPIL under component 2 and will be included shortly to the procurement plan:

- Update of the law pertaining to delegated management (gestion déléguée): the study will conduct an inventory of delegated management in terms of performance, service quality, legal and institutional framework. It will also provide with recommendations and solutions to the issues identified. The firm will also draft a bill (with its implementing decrees) to implement a legal and institutional reform.

- Assessment of transport fare integration in Greater Rabat/Sale/Temara for the newly created inter-municipal cooperation authority (Al Assima). The study will explore ways to ensure the financial sustainability for the management system of urban transport and will provide with potential solutions to promote intermodal transport for the benefit of users.

- Assessment of the potential options and scenarios to restructure the electricity, water, and sanitation distribution system in the Souss-Massa region. The study aims to create a single distribution agency involving stakeholders at the regional, provincial and municipal, and the firm will also support the authorities during the implementation and operationalization phase.

Sub-component 2.3: Incentive mechanisms. The proposed program will also fund an incentive mechanism for the formation of new municipal groupings, which could be in the form of a contribution to set-up costs or to all or part of the associations’ incremental operating costs for a defined period.

Status of Implementation: the Institutional Expert and Project assistant delivered a first report on incentive mechanisms in November 2015, exploring the current funding mechanisms and potential options to support new inter-municipal cooperation structures and local asset companies. This component represents a main objective of the PDO, which will enable to guarantee Program’s consistency and sustainability to further support inter-municipal cooperation in the long run. Comments have been made by the PIU and the WB to complete the report and a final version should be disseminated by end of January.

Component 3: In addition to normal implementation functions, such as project management, procurement and financial management, this component includes planning the deployment of the project activities with participating government departments, regularly following up with each of them on progress towards meeting their commitments, and organizing continued consultations with stakeholders and in particular LGs all along project implementation. The grant would also finance incremental operating costs for the Program monitoring and evaluation (M&E). This will enable to ensure the overall quality of services provided to LGs through the deconcentrated Support Centers and technical assistance. Previous Rating: Moderately Unsatisfactory


Cost (US$): US$450,000 + US$100,000 for contingencies

Status of Implementation:The organization of the first meeting of the Project Steering Committee in April 2016 provided an important signal regarding project implementation and result achievement. The COPIL brought together the new Wali DGCL, the Wali SG and the various members of the institutional architecture supporting the project. It took decisions pertaining to the programming of funds (including the prioritization of new activities to fund) as well as to the implementation of each component.

The PMU has continued to improve the implementation performance, particularly in relation to consultation and coordination of teams involved in the PACT. This enabled the joint development of an action plan, a procurement plan and a disbursement plan which implementation is followed by the PMU. Furthermore,

regular meetings, including with the World Bank team, have promoted dialogue and joint decision making. Given their need for further support, and as explained by representatives from DAJEC and DRSC, the contracts of both the Assistant-chef de projet (ACP) and that of the Institutional Expert should be extended in 2016 and renewed in 2017 and amendments should be added to their respective contracts accordingly. Moreover, in the interests of consistency and follow-up, it was agreed to include payments relevant to the activities of the institutional expert under component 3 (and not component 2) in the procurement plan.

The hiring of the M&E specialist (which should allow to bring the PIU up to full speed) is in progress His missions will include the development of a project M&E system as well as the review of the results framework and the mapping of the project results chain. He will also maintain close follow up of the PDO, including technical assistance implementation on components 1 and 2.

. The three directorates responsible for Project Implementation (DAA, DAJEC, DRSC) have demonstrated a sustained ownership for the project, and a real commitment to improve coordination. In addition, the recruitment of the M&E consultant by the beginning of 2016 will enable to maintain close follow up of the PDO, result framework and prior action plan. Lastly, regular meetings will be maintained with the PIU and the Bank team to monitor component 1 and 2 studies implementation, PDO and intermediary results.


(US$)

(x)

Direct Cost for ISA-Execution

(US$)(y)

Total (US$)


4,550,000 4,550,000


4,550,000 4,550,000

Actual Amount Disbursed (c): 970,889.40 (21.34% of total amount)

970,889.40

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2013 - - -2014 614,832 - 614,8322015 110,000 365,700 475,7002016 617,924 537,767 1,155,5962017 353,352 210,632 563,9842018 350,592 70,000 260,592


303,802 191,198 495,000


Project Development Objective (PDO): The PDO of the proposed Grant is to strengthen the public service delivery capacity at decentralized level in Morocco by improving local governments’ access to support services and incentives.


Unit of Measure

Baseline


Fre-quency

Data Source/


Collection


Dec 2013 – Nov 2014

A

Dec 2014 – Nov 2015

A

Dec 2015 – Nov 2016

F

Dec 2016 – Nov 2017

F

Dec 2017 – Sep 2018

FMethodo

logy

Indicator 1:The Local Government Support Program (PACT) is set-up and operational.

yes/no No No No No Yes Yes AnnuallyOfficial Gazette

Implementing organization

Support Centers are providing services to LGs.

Indicator 2: The financial incentive of the PACT is financed adequately and there is a formal commitment to fund the Program after grant closure.

eq. US$ m 0 0 0 0 1,000 3,000 AnnuallyBiannual report


Incentive funds in a cumulative amount of US$3 million are allocated. After grant closure an adequate amount is budgeted for the Program.

Indicator 3:Number of beneficiaries (male/female) (core sector indicator)

Population 0 0 01000000

TBD TBD AnnuallyCensus data


Population of the LGs benefitting from the program, and % male/female – targets to be determined when design will be finalized.

Intermediate results

Intermediate results of component 1: Deconcentrated Local Government Support Centers

Intermediate Result Indicator 1.1:The number of Local Government support centers established.

number 0 0 0 1 2 4 Annually

Biannual report


Intermediate Result Indicator 1.2:The number of Government Departments offering services through the established support centers.

number 0 0 0 1 1 4 AnnuallyBiannual report


Intermediate Result Indicator 1.3:The number of Municipalities benefiting from support of the LG Support Centers.



Intermediate results of component 2: Inter-municipal Cooperation and Institutional Reform for Local Service Delivery

Intermediate Result Indicator 2.1:Number of inter-municipal local authorities (Etablissements de cooperation intercommunale, ECI created and/or expanded (geographically or in sector terms) with clear/sustainable legal, financial, governance, and human resources.



Intermediate Result Indicator 2.2:Number of inter-municipal local authorities (ECI) with operational asset companies or similar institutional arrangements.



Intermediate Result Indicator 2.3:Lessons learnt from the pilot phase drawn and program to further support to inter-municipal cooperation developed.

Yes/no No No No No No Yes AnnuallyBiannual report


Document with lessons learned and plan to continue with the support to inter-municipal cooperation available.

Intermediate results of component 3: Project Management, Monitoring and Evaluation

Intermediate Result Indicator 3.1:The monitoring and evaluation system for the

Yes/no No No No Yes Yes Yes Annually Biannual report


Program is operational.

Morocco Microfinance Development Project

A. Basic Project InformationActivity Name: Morocco Microfinance Development Project

Country Name: Morocco Name of Implementation Support Agency(ies): World Bank

Name of ISA Project Leader: Peter McConaghy Email of ISA Project Leader: [email protected]

Recipient Entity: PMU (Ministry of Economy and Finance (MoEF)

Name and Email of Recipient Entity Contact: Aziz Alouane, Division Chief, Credit Institutions (Etablissements de Crédit), [email protected]



Total Amount Disbursed (Direct and Indirect in US$): $1,160,000


2/20/2013


7/31/2013


1/31/2018


Primary Pillar: Inclusive Development and Job Creation.


Secondary Pillar(s): Investing in Sustainable Growth, Enhancing Economic Governance, Competitiveness and Integration


B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project objective is to promote access to finance to low income households and micro and small enterprises through the promotion of a sustainable and inclusive microfinance sector.




Brief Summary of Project Implementation Status: This project, financed under the Middle East and North Africa Transition Fun (Deauville), became effective upon signing of the Grant Agreement on July 25, 2013. The project aims to improve access to finance for low-income households and micro and small businesses through the development of an inclusive and sustainable microfinance sector.

Overall the project is advancing in a moderately satisfactory manner. The team, however, notes marked improvements in the pace of implementation of key activities since January 2016 and congratulates the project implementation unit (PIU) in this respect. The PIU has made progress on activities across the projects three primary pillars: i) strengthening the legal, regulatory, tax, and governance framework for microfinance; ii) strengthening market infrastructure, product innovation, and funding sources for microfinance; iii) and integrating microfinance into a national financial inclusion strategy.

The project benefits from strong support from central authorities and implementing partners, as well as a robust portfolio of activities planned for 2016. Priority activities completed since the last progress report (January

2016) include a study on the modernization of the legal, regulatory and institutional of the Moroccan Microfinance Sector. A dissemination workshop was successfully organized on June 28, 2016 which brought together key microfinance institutions (MFIs) and regulators to discuss the report’s findings. The government is now considering appropriate policy and legislative responses as a result of the diagnostic report and dissemination. The project has also supported a diagnostic outlining a governance structure for Morocco’s national financial inclusion strategy, working in close coordination with GIZ. Work to support national financial education initiatives were also accelerated, most notably with the development of digital learning modules to support entrepreneurs, as well as the organization of a large-scale financial education workshop in conjunction with the Central Bank (Bank Al-Maghrib) and the Arab Monetary Fund (AMF) set to take place October 20-21, 2016.

Since January 2016 the World Bank team has intensified supervision of the project and has provided additional technical feedback and support with respect to procurement and financial management procedures. Two formal supervision missions were conducted in the past six months (March and June 2016). This has helped accelerate key project activities, most notably the modernization of the regulatory structure for microfinance and the national financial inclusion strategy. The PIU hired new procurement and financial management consultants in April 2016. This has significantly increased the pace of procurement-related procedures and is expected to improve the pace and quality of overall project implementation. Tools introduced to monitor project progress, including a weekly supervision tool developed and sent out by the MEF to key project partners continues to be used by the PIU. The project has also prioritized and consolidated project activities to minimize administrative procedures and maximize overall project effectiveness.

The World Bank team will continue to work closely with the PIU to address key bottlenecks that continue to slow down project implementation. The team will continue to invest additional resources over the coming months to ensure capacity related to procurement and FM functions are strengthened, steering committee meetings occur on time, and as a result activity implementation accelerates.

The team notes certain delays in advancing with the national financial inclusion strategy due to ongoing discussions between the MoEF and the Central Bank on the governance structure and which agency will lead the strategy work. The World Bank team will accelerate technical support in the coming months to help resolve any points of disagreement and advance with the development of the strategy.




Update Key Project Documents Update:

o Procurement Plan o Work Plan for 2016 and 2017o Project Operations Manualo Hold next steering committee meeting

MEF/World Bank

9/15/2016

Additional Technical Support Training of PIU staff on streamlining administrative and procurement

procedures Increase resources and time dedicated to supervising and providing

technical support for the project

MEF/World Bank

9/30/2016

Updated Financial Management Reports MEF/World 8/1/2016

Finalize Interim Financial Report (for period ending June 2016) Submit audit report for 2015

Bank

Simplification Consolidation of tasks to decrease transaction costs in 2016 and 2017

work plan Use of direct payment as preferred method of payment to reduce delays

MEF/World Bank

First round of consolidation completed in March 2016. Second round will be completed before august 15th with updated 2016 work plan. Use of direct payment is ongoing when appropriate.

Advance on Technical Decision Points:

Governance for National Financial Inclusion Strategy Hold high-level meeting between authorities to advance on national

financial inclusion strategy Finalize launching of findex survey

MEF/Central Bank

9/1/2016


Component 1: Strengthening the institutional, legal, regulatory, tax and governance framework for microfinance

This component aims to support activities contributing to the strengthening of the institutional, legal, regulatory and governance framework of the microfinance sector. This component aims to prepare an action plan to assess and reinforce the capacity of the National Federation of Microcredit Associations of Morocco (FNAM) and support activities contributing to the strengthening of the legal, regulatory, tax and governance framework of the microfinance sector. This component will also finance goods, services, travel, and incremental operating costs incurred by the PMU in the implementation and management of the project.Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): (US$ 1.9 million)

The MoEF advanced in a satisfactory manner with the finalization of a study examining the legal and regulatory framework for microfinance in Morocco, produced by Azimut consulting with technical guidance from the World Bank team. The objective of the study is to assist authorities and key market players in the modernization and long-term development of the microfinance sector through an analysis of the institutional, legal, and regulatory environment underpinning the sector. The study provided an analysis of existing legislation applicable to the sector and assessed meso-level market infrastructure (industry support structure, credit information, consumer protection, and financial infrastructure) to assist the sector in its overall growth. The study also examined the institutional environment required for the transformation of NGO MFIs to regulated financial institutions, an important pre-cursor of promoting overall financial inclusion in Morocco. Key recommendations from the report include:

Macro-level: Anchor microfinance in a national financial inclusion strategy; update the sector’s overall strategy, detail the role and contribution of public (government authorities) efforts at promoting

financial inclusion on a national level Meso-level (sector representation): Clarify current legislative structure allows for a diversity of

institutional types of microcredit organizations; Restructuring of the sector association (FNAM - Federation Nationale des Associations de Micro Crédit) to include members not defined as associations also important

Micro level recommendation (includes): Addressing the legal void of financial cooperatives and microfinance companies (MC); Outline taxation and minimum capital requirements of financial companies, detail licensing conditions of banks and finance companies; Address taxation issues of newly formed MCs, under law 18-97 allow for federation of smaller associations and address legal framework for cooperative microfinance banks; Further develop consumer protection framework (specifically market monitoring, and reviewing maximum lending rate for credit institutions).

A summary of other activities under component one of the project is as follows:

Component Activity Title Responsible Entity

Status of Activities

Component 1: Strengthening the institutional, legal, regulatory, tax and governance framework for

1. Technical assistance program to reinforce the capacity of the FNAM.

2. Study tour for MEF and BAM to Peru to better understand international best practices concerning microfinance regulation

3. Study on interest rates in the microfinance sector

4. Reinforcement of capacity of MEF for development of microfinance sector

5. Study on the potential of the Moroccan microfinance sector.

6. National study on factors determining growth of microenterprises in Morocco.

7. Communication strategy for microfinance sector

FNAM

MEF/BAM

BAM

MEF

FNAM/CM6

FNAM

FNAM

Publication of expression of interests

The study tour was postponed until late-2016 to secure availability of key participants.

Awaiting reception of terms of references

Developing terms of references

Contract negotiations;

Launch of call for proposals

Awaiting reception of terms of references

Component 2: Strengthening the market infrastructure, product innovation and funding sources for microfinance

This component focuses on activities aimed at building common platforms improving the efficiency and effectiveness of microcredit associations, building market infrastructure in support of microenterprises, and promoting the strengthening and diversification of funding.



Cost (US$): (US$ 1.5 million)

Authorities have advanced in a satisfactory manner on a nationally representative demand-side survey under

component two of the project, updating the 2011 findex survey and the 2015 financial inclusion and capability survey. The study will assess the level of financial inclusion in Morocco and determine key usage patterns, as well as opportunities and barriers to access financial services for low-income Moroccans. The study will assist authorities in providing a baseline for their national financial inclusion strategy and will also assist in developing a robust monitoring and evaluation framework for the strategy implementation. Similar studies have undertaken in emerging markets considered leaders in financial inclusion, including Peru and South Africa. Authorities are finalizing procurement procedures and are working on contracting Gallup (firm in charge of implementing global findex surveys as part of a larger Global World Poll) to conduct the survey. It is expected the survey will be completed in December 2016.

Sub-component 2.1: Promoting innovative common platforms and new products for MFIs. This sub-component will support the development of common platforms, systems and products aimed at improving the efficiency and effectiveness of MFIs.

Status of Implementation: Work is ongoing on developing e-learning platforms to promote financial education and microfinance development working with the Centre Mohammed VI. Work should be accelerated and focus on finalizing key outputs.Sub-component 2.2: Building market infrastructure for micro entrepreneurs: This sub-component will support the development of market infrastructure aimed at facilitating microenterprises’ access to markets.

Status of Implementation: The team has launched a study on the ‘commercialization of products for micro entrepreneurs’, which aim to help micro entrepreneurs to better market their products: The consultant was selected and the contract was signed in June 2015. The implementation of the recommendations of the study will follow in a second phase. The PIU is encouraged to follow up on the status of this activity and encourage the CMVI to accelerate project implementation.

Component 3: Integrating Microfinance into a National Financial Inclusion Strategy

This component aims to integrate the national microfinance roadmap into a wider, comprehensive national financial inclusion strategy. In a first step, this component aims to conduct a cross-cutting stocktaking exercise of all previous and ongoing activities aimed at promoting financial inclusion, putting the microfinance sector in a larger financial sector development context. This component will also finance the design and roll out of financial literacy programs for low income households and microenterprises, the key beneficiaries of microfinance, within the framework of the proposed ‘foundation for financial education’, which is in the process of being rolled out under the leadership of BAM. This component will also finance studies and impact evaluations assessing the effectiveness of public policies and private initiatives aimed at promoting financial inclusion, as well as the impact of financial inclusion, including microfinance, on employment creation, poverty reduction and growth. In a second phase, this component aims to build on the findings of the aforementioned activities to develop a comprehensive national financial inclusion strategy, to be developed in a structured consultative process with all key public and private sector stakeholders, and develop an action plan with specific objectives and targets to achieve the aims of the strategy, as well as a clearly defined M&E framework to measure progress.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): (US$ 1.5 million)Status of Implementation:

Integrating Microfinance Into a National Financial Inclusion Strategy:The project has advanced in a satisfactory manner on a national financial inclusion strategy co-led by the MoEF and the Central Bank. The strategy follows closely the core recommendations of a technical note as part of FY15 Morocco Financial Sector Assessment Program (FSAP), which was presented to the authorities in September April 2015. This strategy is being developed in line with the WBG's 2020 universal financial access initiative (Morocco and Egypt are priority countries for the MENA region). A workshop between MEF, BAM, and the World Bank took place in December 2015 which reviewed the objectives of a national financial inclusion strategy and

agreed on a tentative governance structure and technical work streams. The World Bank and GIZ have been assisting authorities on finalizing the governance structure of the strategy. A World Bank mission in early March brought independent experts to Morocco to assist in formulating a governance structure with authorities, taking into account the views and relative positions of key market players. A workshop formally launching the strategy formulation process is slated for the second half of 2016, pending agreement by the authorities on the governance structure.

Scaling up of Financial Capability/Education Initiatives:Financial capability and education initiatives under component three of the project are being scaled up, mainly through cooperation with the national financial education foundation. These activities include the development of national financial education curriculum in conjunction with Ministry of Education, development of edutainment programs, direct support to micro entrepreneurs via value chain integration, and global best practice knowledge sharing. Component three will finance a large-scale conference on financial education to be held on October 20-21 and organized jointly by the Arab Monetary Fund, the OECD, GIZ, and CGAP. The objective of the event is to promote policy development and share international best practices regarding financial education amongst Central Bank and key market players in the MENA region. The MEF and BAM are working with project partners at developing the technical content of the conference. The conference is seen as an important step to follow up on individuals financial education activities launched across the region and to use financial education as a key lever to promote financial inclusion in the MENA region.


(US$)

(x)


(y)

Total (US$)


4,900,000 0 4,900,000


4,900,000 0 4,900,000

Actual Amount Disbursed (c): $1,160,000 0 $1,160,000

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End20132014 491,866 0 491,8662015 0 0 02016 668,134 500,000 1,168,1342017 1,000,000 1,000,000 2,000,0002018 742,134 742,1342019


330,000 270,000 660,000


Project Development Objective (PDO): The project objective is to promote access to finance to low income households and micro and small enterprises through the promotion of a sustainable and inclusive microfinance sector.


Measure

Baseline (Dec

2012)


Data Sourc

e/Methodolo

gy

Responsibility

for Data

Collection


etc.)

Year 1 (Aug 2013 – Jul 2014)

Year 2 (Aug 2014 – Jul 2015)

Year 3 (Aug 2015 – Jul 2016)

Year 4 (Aug

2016 – Jan

2018)Indicator One: % of adults (and women) with an account at a formal financial institution, including low income households

Number (000) (%) ; number women (% women)

12,870,000 (39%); 4,544,100 (27%)

F

13,530 (41%); 5,217 (31%)

A

13,530, (41%); 5,217 (31%)

F

14,520 (44%); 5,386(32%)

A

TBD via updated market survey

F

1,6170

(49%);

6,227 (37%)

A

TBD via updated market survey

F

16,830 (51%); 7,069 (42%)

Bi-annually

BAM PMU (MoEF)

Access to formal financial inclusion is a core indicators of relative financial inclusion levels in a given country

Indicator Two: Outstanding Microfinance Loan Portfolio

USD mn 550 F560

A541

F570

A567 (as of July 2015)

F

580

A

567 (as of July 2016)

F

700

Semi-annually

BAM PMU (MoEF)

Volume of outstanding microloans

Indicator Three: Number of end beneficiaries of MFIs, including low-income households, microenterprises, and small firms

Number (000)

804 F830

A819

F

900

A

766 (as of Dec 2014)

F

1,000

A

760 (as of July 2016)

F

1,100

Semi-annually

BAM PMU (MoEF)

This indicator includes loan accounts held by low-income households, microenterprises and small firms.

Indicator Four: Portfolio at Risk - Percent 6.7% F A F A F A F Semi- BAM PMU

Microfinance -- 6.74 6.6% 3.77% (mar 15)

4.00% 3.77%(mar 15) 6.4%

annually

(MoEF)


Intermediate Result (Component One): Strengthening the institutional, legal, regulatory, tax and governance framework for microfinance

Intermediate Result indicator One: Regulatory studies completed

Number 0 F

0

A

0

F

1

A

1

F

2

A

1

F

3

Annually

PMU (MoEF)

PMU (MoEF)

Intermediate Result indicator Two: Number of operational and regulatory initiatives implemented by BAM and other key stakeholders

Number 0 F

0

A

0

F

0

A

0

F

1

A

1

F

3

Annually

PMU (MoEF)

PMU (MoEF)

Intermediate Result (Component Two): Strengthening the market infrastructure, product innovation and funding sources for microfinance

Intermediate Result indicator One: Number of alternative microfinance products developed and piloted (e.g. Islamic finance, mobile phone banking, housing)

Number 0 F

0

A

0

F

1

A

0

F

2

A

2

F

3

Quarterly

PMU (MoEF)

PMU (MoEF)

Intermediate Result indicator Two: Number of trainings to micro entrepreneurs delivered

Number 0 F500

A1570

F700

A2260

(through the CM6 in 2014)

F

900

A

To be determined

F1100

Semi-Annually

CM6 Centre Mohammed 6; PMU (MoEF)

Intermediate Result (Component Three): Integrating Microfinance into a national financial inclusion strategy

Intermediate Result indicator One: Financial inclusion stock-taking completed

Binary (Yes/No)

No F

No

A

In Process

F

Yes

A

In process

F

Yes

A

Yes

F

Yes

Once

BAM PMU (MoEF)

Intermediate Result indicator Two: Evaluation completed of existing financial inclusion measures

Binary (Yes/No)

No FYes

AIn

Process

- -In

process

- - Once BAM PMU (MoEF)

Intermediate Result indicator Three: Number of beneficiaries receiving financial literacy training

Number 6,000 (4,099 from CM6; 2,000

estimates from

F8,000

A8618

F10,000

A1384

(through the CM6 in 2014)

F

12,000

A

To be determined

F14,000

Semi-Annually

CM6; BAM

PMU (MoEF)

Modules (class room or interactive) that enhance knowledge and understanding of financial

BAM) concepts, and the skills, motivation and instill the confidence to apply such knowledge and understanding in order to make effective decisions across a range of financial contexts


New Governance Framework Implementation Support Project

A. Basic Project InformationActivity Name: New Governance framework Implementation support projectCountry Name: Morocco Name of Implementation Support Agency(ies): World

BankName of ISA Project Leader: Fabian Seiderer Email of ISA Project Leader: [email protected] Entity: Ministry for General Affairs and Governance

Name and Email of Recipient Entity Contact: Mr Alaoui, Project Director: [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 300,000 from the MENA multi-donor Trust Fund


Steering Committee Approval Date: February 20, 2013

Project Implementation Start Date:October 31, 2013

Project Closing Date: March 31, 2018



Inclusive Development and Job CreationEnhancing Economic GovernanceChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: To contribute to the strengthening of government transparency, accountability and public participation by supporting (i) the development and implementation of a public consultation policy and a law on petitions; (ii) the improvement of access to fiscal information and enhancement of performance orientation in budget management; and, (iii) the strengthening of fiscal decentralization.





Following the midterm review of the project and the portfolio deep dive the implementing agency and the Bank held a revitalization workshop on February 24th in order to simplify the project management and improve the performance of its implementation. An action plan covering the 14 core areas of project implementation was approved and is being implemented. To date more than half of these measures have been implemented and the others are in the process. Critical actions have been taken such as the simplification of the project leadership (the dual leadership has been ended), the full integration of the project staff in the implementing agency, the appointment of two additional staff and the strengthening of the internal communication and reporting systems. Other critical actions are ongoing, such as the streamlining of the budgeting and implementation procedures as off the 2017 budget, a revision of the project implementation manual, capacity building for the implementing agency’s staff, the strengthening of its internal control framework as well as the project’s monitoring and evaluation. A team building workshop is programmed in September and will be followed by a steering committee aimed at validating the main pending actions, such as the new project implementation manual.

This proactivity is starting to pay off as evidenced by the increase in commitments and payment rates over this semester respectively to 70% and 32%. Additional payments up to USD 288K are in the approval process. Even component three, whose implementation has been delayed by the overhaul of the legal framework for decentralization, has been picking up and has achieved a commitment rate of 60%. Likewise for component 2, which finances the twinning project between the Moroccan and French MoF to support the implementation of

the new performance based budgeting. All its components have now started and it is in full swing, adding new activities and technical assistance in order to respond to the growing demand for support from the MoF and line ministries for the implementation of the new organic budget law. The complex and innovative nature of this institutional twinning project aimed at providing also high level on demand public expertise has generated high transaction costs and steps have been taken to streamline and speed up its contractual and financial management. A dedicated steering committee has been held for that purpose on July 20th 2016 and adopted resolutions in that sense.



Expected Date of

DeliveryReorganize Project management MAGG done

Streamline payment procedures MAGG-Finance done

Adopt a streamlined Project implementation manual MAGG Oct 2016

Streamline the budgeting and implementation procedures of the twinning Project between the Moroccan and French MoF (component 2)

MAGG-Finance Sept 2016

C. Implementation Status of Components Component 1: Strengthening Public Participation. This component aims at contributing to strengthen public participation by supporting the development of a public consultation policy, an e-consultation platform, and a petitions law. The new Moroccan constitution strengthened the principles of public participation and introduced new rights for the citizen to be consulted and to present motions.



Cost (US$): 730,000

Sub-component 1.1: Support to Ministry, to Civil society and to the National Dialogue on the new constitutional principles of citizen participation and to the participatory development of related consultation and petitions policies

Status of Implementation: The project’s support to the National dialogue on citizen engagement has been finalized and the thematic reports summarizing this country wide and yearlong dialogue, involving over 10 000 CSOs have been delivered. A capacity building and knowledge exchange has been organized with the UK in partnership with the Westminster foundation. The organic law on public petitions has been adopted by Parliament and work is ongoing on the implementing regulations. The project is supporting the design of an inter-ministerial e-participation platform that should facilitate citizen engagement across the country, including be enabling e-petitions and online consultations.

Sub-component 1.2: Piloting of the new consultation policy in one ministry and one local government and capacity building of officials and CSOs

Status of Implementation: The project will also support the implementation of the new citizen engagement policies at the local level, in close cooperation with the Ministry of interior and local governments. An outreach and communications strategy is currently being developed and is expected to be tendered in the fall. This right will be piloted as soon as all the implementing regulations and tools are finalized. Sub-component 1.3: Development of a monitoring and evaluation system, including on-line consultations and user surveys.

Status of Implementation: An inter-ministerial working group has been set up for the development of an e-consultation platform, under the leadership and coordination of the Head of Government’s office and the Ministry in charge of relations with Parliament and civil society (MCRP) and with the involvement of the and with the

Ministry in charge of Trade, Industry and ICT, who has the mandate of the e-government strategy. A concept note on the development of this e-participation platform has been validated by the MCRP. This will be the basis for the development of the functional and technical specifications of the platform. There have been no significant changes in budget allocation and activities.

Component 2: Enhancing Efficiency and Accountability in the Use of Public FundsThis component supports key intertwined public financial management reforms aimed at strengthening the efficiency of public spending and accountability over its use. It supports the implementation of the performance based budgeting reform introduced by the new organic budget law, adopted in April 2015. The component will also support the implementation of the new procurement rules, following the adoption of a modified decree in December 2012, which extends the said rules to the local governments and certain administrative SoEs. Finally the component will also support external PFM diagnostics and technical assistance. It was agreed to finance the joint Public Expenditure and Financial Accountability (PEFA) diagnostic by the Bank, the EU and the AfDB and to reallocate the corresponding resources to the public investment management support and the MEF’s performance budgeting website foreseen in the project. There have been no other significant changes in budget allocation and activities.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,842,000Sub-component 2.1: Support to the implementation of the performance budgeting reform through public sector expertise from OECD countries having implemented the same reform. It comprises support to (i) the design and steering of the budget reform and for the development of the new procedures and tools, (ii) the implementation of the performance-based approach in line ministries, and (iii) the development of a government wide performance monitoring and evaluating system and the revision of the financial management information systems.

Status of Implementation: The twinning contract ($1,36 million) between the Moroccan and French Ministries of Finance is under implementation. The activities under the first component are almost completed and the implementing regulations and tools for performance budgeting have been produced and adopted. The second component is in full swing and supporting 20+ departments in the implementation of this new budgeting approach. This is well beyond the initial 5 ministries envisaged and accommodated through internal reallocations and the hiring of additional experts under the twinning. The last component on the performance monitoring and evaluation policy has started with the support of a French and a Canadian high official. While the operational implementation of this project exceeds initial expectations, its financial management is lagging behind with two pending invoices from the French partner. The Bank has thus convened special working sessions to streamline the contractual and financial management of this complex project. The steering committee proposed a series of actions aimed at simplifying and speeding up the project’s management. A high level seminar on the new organic budget law and this twinning project has been held on Oct 2015. It was presided by the head of government and the president of the assembly and provided the necessary political support for this structural reform. A website dedicated to the budget reform has been developed and posted on the MoF’s portal.

Sub-component 2.2: Training and capacity building for the implementation of the new public procurement rules.

Status of Implementation: An inter-ministerial working group, chaired by the Secretary General of the Government and including the Ministry of Finance, Governance and Interior has been set up and tasked with developing the training curricula on public procurement across the public sector. The Bank has supported the initial development of training curricula and the training of a first wave of trainers. Both will be leveraged by the project to support also the demand side, through training and capacity building to small and medium enterprise. The ToRs for this activity are being finalized. This cross-cutting activity as well as the similar one focusing on local governments (component 3) will be managed directly by the MAGG (implementing agency) to maximize synergies.

Sub-component 2.3: Public investment management (PIM) diagnostic and technical assistanceStatus of Implementation: This task is foreseen in year 2, upon the results of the PEFA assessment. The 2016 PEFA has just been concluded and is in its approval process. The ToRs for the PIM TA are currently being prepared

by the client. The Bank organized an international knowledge exchange on PIM in February 2016 to inform the policy dialogue on this reform. Sub-component 2.4: Public financial management assessment through an update of the 2009 PEFA.

Status of Implementation: This multi-donor activity has started in June 2015 and is directly being financed by the Bank, the EU and the AfDB, thus freeing up the USD 50 000 foreseen in the project. These resources have been reallocated to the above activities related to PIM and to the performance budgeting website.

Component 3: Advancing RegionalizationThis component supports the implementation of Morocco’s new regionalization strategy, adopted in March 2011, as well as the new constitutional principles strengthening regional and local governments. This requires strengthening the capacities and financial management of local governments and revising the inter-governmental fiscal transfer and equalization system. Technical assistance, international knowledge transfer and capacity building will be provided to that effect.



Cost (US$): 768,800

Sub-component 3.1: Adapting the fiscal transfer and equalization system for local governments (LG), in accordance with the new constitution and the advanced regionalization strategy.

Status of Implementation: the project recruited an international expert to advise the Ministry of Interior on the reform of the fiscal transfer and equalization system. The activity is ongoing and the first report has been delivered.

Sub-component 3.2: Capacity building for Local Government (LG) financial management, including on the new public procurement rules.

Status of Implementation: As mentioned above for subcomponent 2.2, the training modules for the training of trainers on the new procurement rules have been developed. The training contract has been signed and four regional training of trainers sessions have already been delivered. The experts for the financial management capacity building have been selected and are expected to start their work in fall after the summer break. Sub-component 3.3: Strengthening the planning and performance contracting process in line with the enhanced role of regions

Status of Implementation: This activity will start later in 2016, once the new regional governments are in place. The tendering is ongoing.


(US$)

(x)


(y)

Total (US$)


4,000,000 0 4,000,000


4,000,000 0 4,000,000


1,199,090 0 1,199,090


Year Jan-June Jul-Dec Total by Year End2013 0 0 02014 739,217 41,137 780,3542015 167,894 200,000 367,8942016 300,000 288,000 588,0002017 490,000 602,000 1,092,0002018 500,000 671,752 1,171,752


241,347 258,653 500,000


Project Development Objective (PDO): The Project Development Objective is to contribute to the strengthening of government transparency, accountability and public participation by supporting (i) the development and implementation of a public consultation policy and a law on petitions; (ii) the improvement of access to fiscal information and enhancement of performance orientation in budget management; and, (iii) the strengthening of fiscal decentralization.





Methodology



Nov 2013 – Oct 2014

A

Nov 2014 – Oct 2015

A

Nov 2015 – Oct 2016

F

Nov 2016 – Mar 2018

F

Indicator One:

Strengthened legal framework and formalized practices for participation in public affairs

Number of dedicated policies of formalized practices for public engagement established

1 policy related to US-Morocco Free Trade Agreement

0 laws

1 policy

2 laws, respectively on petition and legislative motion have been adopted by GoM

A consultation policy is being developed

2 laws

2 policies

2 laws

2 policies

Every legislative cycle, as relevant

Official government bulletin; MCRP

MCRP Stocktaking assessment of newly established laws or policies in the domain of public engagement

Indicator Two: Increased accountability of government over the use of public resources New PEFA indicator !

Ranking on PEFA40 performance indicators related to budget transparency (nº6), policy based budgeting (nº12) and external

2009 assessment: Indicator nº6 scored B, nº 12 : C, nº26: D, and

nº6 scored B, nº 12 : C, nº26: D, and

The new 2015 PEFA methodology is being tested. The results

nº6 scored B, nº 12 : C+, nº26: D+, and nº27: B+

nº6 scored B+, nº 12 : B, nº26: C, and

Once, by end of the project cycle

Morocco PEFA assessments

World Bank and client

Data on PEFA framework generated by World Bank PEFA assessments

The 2016 PEFA assessment is expected to

40 Public Expenditure and Financial Accountability (PEFA) is a multi-donor diagnostic instrument, with 28 high level performance indicators measuring a country’s public financial management. Morocco was assessed in 2009 and the current budget reform should translate into better scores on budget transparency, link between policies and budget and external budget oversight (respectively indicators nº6, 12, 26 and 27. Indicators are ranked from A to D, D being the lowest score.

scrutiny (nº 26 and 27) nº27: B nº27: B framework will be revised accordingly

nº27: B+

be adopted in September 2016. The results framework can be updated then

Indicator Three: Increased transparency of intergovernmental fiscal relations and local finances

Ranking on PEFA indicator measuring competition and value for money in procurement (PI-19)

PI-19 (2009): B

B As above B B+ Once, by end of the project cycle




As above


Intermediate Result (Component One): Strengthening public participationIntermediate Result indicator One: Increased participation rate of CSOs in public consultation activities since and as a result of the National Dialogue

Number of CSOs participating in consultation activities since and as a result of the National Dialogue

250 CSO representatives (regional consultation in Kenitra on constitutional roles of CSOs)

10 000 10 500 12242 11 500 Annual Diagnostic survey will be built in the e-participation platform currently developed

MCRP Report of the national dialogue.

Participation data compiled through MCRP diagnostic surveys

Share of participation by gender using e-consultation processes in X sectors

NONE 75% male; 25% female

68% male;32% female.

Estimate at this stage

55% male; 45 % female

55% male; 45% female

Annual Participation measured through a survey

MCRP/MCINT

Data compiled through MCRP e-consultation platform, which is not yet operational. The CSO participation is not gender disaggregated

Intermediate Result indicator Two: Strong satisfaction rate among CSOs participating in public consultation

Percentage of CSOs that feel public consultation processes met their expectations

NONE 0 50 60 70 Annual Satisfaction survey will be built in the e-participation platform currently developed

MCRP Data not yet available in the absence of operational surveys

Intermediate Result indicator Three: Strong engagement of CSOs in development of legal

Number of proposals submitted by CSOs to MCRP for the development of public

NONE 0 50 150 200 Annual MCRP data MCRP An annual report on the number of proposals submitted by CSOs in the context of public

framework on public engagement

engagement framework consultation activities

Intermediate Result (Component Two): Enhancing Efficiency and Accountability in the use of Public Funds

Intermediate Result indicator One: Strengthened budget transparency, policy based budgeting and external scrutiny

Ranking on PEFA

performance indicators related to budget transparency (nº6), policy based budgeting (nº12) and external scrutiny (nº 26 and 27)

Indicator nº6 scored B, nº 12 : C, nº26: D, and nº27: B

nº6 scored B, nº 12 : C, nº26: D, and nº27: B

The new 2015 PEFA methodology is being tested. The results framework will be revised accordingly


nº6 scored B+, nº 12 : B, nº26: C, and nº27: B+


Morocco’s PEFA assessments


Data on PEFA framework generated by World Bank PEFA assessments in 2016, the results are expected to be available by sept 16

Intermediate Result indicator Two: Improved budget execution rate

Budget execution within budget programs

2010: 67.3% 70% 72% 73% 75% Annual MoF - budget directorate database

MoF budget directorate

Data on budget execution rates as reported by the MOF budget directorate

Intermediate Result indicator Three: Strengthened budget transparency and access to information

Ranking of budget transparency on OBI index

2012 ranking: 38

38 38 38 42 Bi-annually Open Budget Index (OBI)


A sub-set of indicators measuring budget transparency from the Open Budget Index, conducted by the International Budget Partnership, which covers 95 countries in total

Ranking of access to information framework on RTI measure from OGP

2010 baseline : 1

3 4. the ATI law has been adopted by Cabinet and is pending parliament approval.

4The AtI law has been adopted in July 2016

4 Annual Right to Information Index (RTI) as presented by the Open Government Partnership (OGP)


RTI assessment on existence of ATI law (4 points), a constitutional provision guaranteeing ATI (3), or a draft ATI law under consideration (1)

Intermediate Result (Component Three): Advancing Regionalization

Intermediate Result indicator One: Increased public accessibility of formal rules and regulations for

Number of formal rules and regulations for fiscal transfers and equalization made

Transfer rules are scattered and

Partial Partial Partial full Annual MoI, local finance directorate

MoI local finance directorate

Annual assessment conducted on number of formal rules and regulations for fiscal

fiscal transparency and equalization

available online allocation criteria are only partly public

transfers and equalization made accessible online via government websites

Intermediate Result indicator Two: Training on the new procurement rules and on financial management

Cumulative number of trainers and officials trained (disaggregated by gender).

None 0 30 (12% women)

50 (15% women)

80 (20%)

Annual MoI, local governments

MoI, local governments

Attendance sheets of trainings

Trainings are ongoing and data is expected to be available by end of 2016

Intermediate Result indicator Three: Strengthened competition and value for money in procurement

Ranking in PEFA index on competition and value for money in procurement (PI-19)

PI-19: B B B B A Once, by end of project cycle


World bank and client

Public procurement of local governments has improved as evidenced by a higher PEFA ranking

New data available end of 2016

Intermediate Result indicator Four: Improved fiscal reporting by local governments

Budget information from local governments are available in real time through GID

80%

1000

95%

1187

100%

1250

100%

1250

100%

1250

Annual MoI local budget directorate assessment

MoI local budget directorate

A greater number of local governments are using the integrated information system GID and reporting their fiscal data in real time.

Project Development Objective (PDO): The Project Development Objective is to contribute to the strengthening of government transparency, accountability and public participation by supporting (i) the development and implementation of a public consultation policy and a law on petitions; (ii) the improvement of access to fiscal information and enhancement of performance orientation in budget management; and, (iii) the strengthening of fiscal decentralization.





Methodology



Nov 2013 – Oct 2014

A

Nov 2014 – Oct 2015

A

Nov 2015 – Oct 2016

F

Nov 2016 – Mar 2018

F

Indicator One: Number of dedicated policies of formalized

1 policy related to

0 laws 2 laws, respectively

2 laws 2 laws Every legislative

Official government

MCRP Stocktaking assessment of newly established laws or

Strengthened legal framework and formalized practices for participation in public affairs

practices for public engagement established

US-Morocco Free Trade Agreement

1 policy on petition and legislative motion have been adopted by GoM

A consultation policy is being developed

2 policies 2 policies

cycle, as relevant

bulletin; MCRP policies in the domain of public engagement

Indicator Two: Increased accountability of government over the use of public resources New PEFA indicator !

Ranking on PEFA41 performance indicators related to budget transparency (nº6), policy based budgeting (nº12) and external scrutiny (nº 26 and 27)

2009 assessment: Indicator nº6 scored B, nº 12 : C, nº26: D, and nº27: B









Indicator Three: Increased transparency of intergovernmental fiscal relations and local finances

Ranking on PEFA indicator measuring competition and value for money in procurement (PI-19)

PI-19 (2009): B

B As above B B+ Once, by end of the project cycle





Intermediate Result (Component One): Strengthening public participation

41 Public Expenditure and Financial Accountability (PEFA) is a multi-donor diagnostic instrument, with 28 high level performance indicators measuring a country’s public financial management. Morocco was assessed in 2009 and the current budget reform should translate into better scores on budget transparency, link between policies and budget and external budget oversight (respectively indicators nº6, 12, 26 and 27. Indicators are ranked from A to D, D being the lowest score.

Intermediate Result indicator One: Increased participation rate of CSOs in public consultation activities since and as a result of the National Dialogue

Number of CSOs participating in consultation activities since and as a result of the National Dialogue

250 CSO representatives (regional consultation in Kenitra on constitutional roles of CSOs)

10 000 10 500 11 000 11 500 Annual Diagnostic survey will be built in the e-participation platform currently developed

MCRP Report of the national dialogue.

Participation data compiled through MCRP diagnostic surveys

Share of participation by gender using e-consultation processes in X sectors

NONE 75% male; 25% female

68% male;32% female.

Estimate at this stage

55% male; 45 % female

55% male; 45% female

Annual Participation measured through a survey

MCRP/MCINT

Data compiled through MCRP e-consultation platform

Intermediate Result indicator Two: Strong satisfaction rate among CSOs participating in public consultation

Percentage of CSOs that feel public consultation processes met their expectations

NONE 0 50 60 70 Annual Satisfaction survey will be built in the e-participation platform currently developed

MCRP

Intermediate Result indicator Three: Strong engagement of CSOs in development of legal framework on public engagement

Number of proposals submitted by CSOs to MCRP for the development of public engagement framework

NONE 0 50 150 200 Annual MCRP data MCRP An annual report on the number of proposals submitted by CSOs in the context of public consultation activities

Intermediate Result (Component Two): Enhancing Efficiency and Accountability in the use of Public Funds

Intermediate Result indicator One: Strengthened budget transparency, policy based budgeting and external scrutiny

Ranking on PEFA

performance indicators related to budget transparency (nº6), policy based budgeting (nº12) and external scrutiny (nº 26 and 27)

Indicator nº6 scored B, nº 12 : C, nº26: D, and nº27: B






Morocco’s PEFA assessments


Data on PEFA framework generated by World Bank PEFA assessments in 2015

Intermediate Result indicator Two: Improved

Budget execution within budget programs

2010: 67.3% 70% 72% 73% 75% Annual MoF - budget directorate

MoF budget directorate

Data on budget execution rates as reported by the

budget execution rate database MOF budget directorateIntermediate Result indicator Three: Strengthened budget transparency and access to information

Ranking of budget transparency on OBI index

2012 ranking: 38

38 38 42 42 Bi-annually Open Budget Index (OBI)


A sub-set of indicators measuring budget transparency from the Open Budget Index, conducted by the International Budget Partnership, which covers 95 countries in total

Ranking of access to information framework on RTI measure from OGP

2010 baseline : 1

3 4. the ATI law has been adopted by Cabinet and is pending parliament approval.

4 4 Annual Right to Information Index (RTI) as presented by the Open Government Partnership (OGP)


RTI assessment on existence of ATI law (4 points), a constitutional provision guaranteeing ATI (3), or a draft ATI law under consideration (1)

Intermediate Result (Component Three): Advancing Regionalization

Intermediate Result indicator One: Increased public accessibility of formal rules and regulations for fiscal transparency and equalization

Number of formal rules and regulations for fiscal transfers and equalization made available online

Transfer rules are scattered and allocation criteria are only partly public

Partial Partial Full full Annual MoI, local finance directorate

MoI local finance directorate

Annual assessment conducted on number of formal rules and regulations for fiscal transfers and equalization made accessible online via government websites

Intermediate Result indicator Two: Training on the new procurement rules and on financial management

Cumulative number of trainers and officials trained (disaggregated by gender).

None 0 30 (12% women)

50 (15% women)

80 (20%)

Annual MoI, local governments

MoI, local governments

Attendance sheets of trainings

Intermediate Result indicator Three: Strengthened competition and value for money in procurement

Ranking in PEFA index on competition and value for money in procurement (PI-19)

PI-19: B B B B A Once, by end of project cycle


World bank and client

Public procurement of local governments has improved as evidenced by a higher PEFA ranking

Intermediate Result Budget information 80% 95% 100% 100% 100% Annual MoI local MoI local A greater number of local

indicator Four: Improved fiscal reporting by local governments

from local governments are available in real time through GID

1000 1187 1250 1250 1250 budget directorate assessment

budget directorate

governments are using the integrated information system GID and reporting their fiscal data in real time.

Virtual Market Places for the Development of Export SMEs: Morocco Activities

A. Basic Project InformationActivity Name: Development of SMEs Exports through Virtual Market Places (Morocco Activities)Country Name: Morocco (this is a regional project that includes Tunisia and Jordan)

Name of Implementation Support Agency(ies): The World Bank

Name of ISA Project Leader: Laurent Gonnet


Recipient Entity: World Bank Executed Name and Email of Recipient Entity Contact:Total Amount Approved by the Transition Fund (US$): 1,000,000



Steering Committee Approval Date: February 11, 2014

Project Implementation Start Date:May 26, 2014 (date signature contract with International Trade Center, implementation partner).







B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: This is a pilot project aimed at a) increasing SMEs exports through Virtual Market Places and b) supporting institutional reforms to create an enabling environment for e-commerce.


Satisfactory.


Satisfactory.


The launch of the project in Morocco was delayed due to the processes of preparing a Partnership Agreement between the Ministry of Foreign Trade and ITC. The signing of the agreement was a prerequisite for the launch of activities. The project was launched on January 14, 2015.

The delay is estimated to be of one month and the team is speeding up the implementation to ensure the timely achievement of the main milestones.

Summary highlights: Training materials for e-commerce advisors developed and customized 2 training workshops for e-commerce advisors delivered in March 2015 36 E-commerce Advisors (EAs) trained from which 20, that passed the training test, were

hired to work with the enterprises More than 150 SMEs submitted their application to benefit from the VMP project. Among

them, 70 SMEs have been selected and assigned to the e-commerce advisors A detailed report on the e-commerce environment in Morocco, including recommendations

to boost the sector, completed and submitted to the Ministry Partnerships with some VMP have been established An e-commerce workshop for was held in Casablanca on 27 January 2016 New SMEs continue to submit their applications to participate in the VMP programme. A total of 124 SMEs have been selected to participate in the programme in April 2016

No major risks jeopardize the outlook. There is satisfactory level of engagement from our main partners.

C. Implementation Status of Components Component 1: Institutional Reform ComponentIt is important that governments adopt policies, laws, and incentives that focus on promoting trust and confidence among e-commerce participants and developing a national framework that is compatible with international norms on e-commerce. This component aims at supporting current discussions and to introduce policy and regulatory changes. This component supports the creation of an inter-ministerial committee with private sector participations, analytical and diagnostic studies with the objective of concretizing reforms in the enabling environment for e-commerce.

Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 100,000 Status of Implementation of the Component 1. Satisfactory.

As a result of a meeting organized with key stakeholders supporting e-commerce in Morocco, it was agreed to design a roadmap to develop the sector. In this context, ITC initiated a feasibility study that served as a platform to design both the roadmap and the action plan.

Several institutions including the Customs department, Maroc Export, ASMEX, Postal services, Logistics among others were consulted and a detailed report on the status of e-commerce environment in Morocco was completed. As part of the study, in depth discussions were held with public and private sector stakeholders. Sector federations, logistics providers, payment systems, public services such as customs, tax department, banks, consumer protection representatives were consulted to get a comprehensive analysis of the situation. Institutional structures and services offered were analysed and recommendations provided to further enhance the e-commerce environment in Morocco.

The roadmap provides recommendations of various aspects of developing e-commerce in Morocco, including:

(i) Technical cooperation among national stakeholders to improve B2B and B2C platforms(ii) Organisation and coordination among different institutions to optimise resources(iii) Promotion and marketing of the sector(iv) Capacity building of local institutions(v) Financial support and cooperation

The report has been submitted to the Ministry for review. Later on, the findings and recommendations provided will be shared with the national level stakeholders.

This process will lead to the development of a roadmap for the sector and the forming of a join committee, which will oversee the implementation of the action plan. The committee, led by the Secretary General of Foreign Trade of Morocco, is expected to represent 15 different institutions.

Terms of reference for a national committee to develop the sector have been drafted by ITC. Once approved by the proposed committee, the terms of reference will be an integral part of the road map. The e-commerce road map will serve the national committee to define and implement actions to develop the sector and improve the business environment.

Component 2: Capacity Building Program

Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 445,000Sub-component 2.1: Capacity Building Program - The sub-component covers the cost of the design and the delivery of a training program that would enable country partners to fully understand the methods, techniques and dynamics of VMPs to maximize the opportunities they offer to increase export and diversify markets.


The existing training material, which was further enhanced, covers the following items: e-commerce value chain: challenges and solutions for logistics, e-payments, risk mitigation, client management, and after sale service. It also included description of Virtual Market Places and modalities/conditions to register to enable advisors to coach selected SMEs in these technical aspects. In addition, advisors were exposed to best practices related to how to create an attractive and sales oriented e-shop.

Two consecutive training sessions were organized for e-commerce advisors in Casablanca from March 18 to 20 and March 23 to 25, 2015. A total of 35 advisors took the training, out of which 23 passed the final evaluation. 20 e-commerce advisors are recruited by the VMP programme to work with SMEs.

Training material that will be used by the EA for coaching of the SMEs was developed and disseminated among the EAs.

E-commerce workshop for SMEs, 27 January 2016

80 SMEs participated in an e-commerce workshop organised by ITC in January 2016. The workshop connected SMEs with export advisers so they could work through obstacles to e-commerce, especially when doing business across borders. VMP programme activities and initial findings of the e-commerce environment study were presented.

Most importantly, participants were able to share the main challenges they face in selling their products online, including logistics, customer relationship management, payments and return policies. A good discussion on major issues blocking SMEs from benefitting from e-commerce reiterated the relevance and importance of the VMP programme.

Continuous training of Export Advisers

The export advisers are continuously guided and coached when necessary by ITC technical advisers and national programme coordinator. New training programmes are being developed based on the feedback received from the advisers and their experience with the SMEs. Logistics management, payment systems, customer relationship management and client support are few of the trainings among others that are being developed by the project. The trainings and guides will benefit the advisers, SMEs as well as the institutions.

E-commerce guides

Several guides and manuals for SMEs have been developed under the programme. The manuals give practical information and guidelines on subjects such as:

- E-commerce engineering- Contents management- Export logistics- Payment solutions- Customer relationship management

Institutional capacity building

The VMP programme is directly supporting and building capacities of six national institutions, namely:

- Maroc export (CMPE) : Centre Marocain de Promotion des Exportations- Maroc Taswiq (OCE) : Office de commercialisation et d’exportation- FNEM : Fédération nationale d’e-commerce au Maroc- ASMEX : Association Marocaine des exportateurs- ADA : Agence pour le Développement Agricole- La Maison de l’artisan

The six institutions have their own online platforms. All of them are focussed on promoting Moroccan products internationally. However, only two out of the six have e-commerce platforms, which are Maroc Taswiq with its three online stores and National Federation of e-commerce in Morocco (FNEM) with its initiative called Made in Morocco. ITC is building their capacities to be more competitive in cross-border e-commerce. The programme’s support to the other four online platforms has been on improving the efficiency, online performance and visibility of the platforms. This in order to maximise buyer interest and their connection with potential Moroccan suppliers.

Reach of the VMP programme

The VMP programme has enjoyed high level interest both at the institutional as well as the private sector level. Implementation of the programme has been very timely with current trends and changes in the e-commerce environment in Morocco. The programme strives to align its activities with national interests and initiatives taken to enhance the sector.

The programme currently reaches out to :- 124 SMEs participating in the programme- 20 Export Advisers trained and actively supporting the SMEs- 15 inter-institutional committee members to enhance the national e-commerce

environment

- 6 Institutions benefitting from direct institutional capacity building activities- more than 500 cooperative products from 16 regions benefitting from Moroccan e-

commerce platforms supported by programme activities.

Sub-component 2.2: Registration and Coaching of SMEs -Along with the outreach phase of the project, beneficiary SMEs will be registered in one to three different VMPs, coached on how to make the best use of their presence on these VMPs and coached on how to concretely deal with the inquiries coming from the first potential buyers through the VMPs.


By April 2016 more than 180 SMEs have applied to participate in the project. 124 SMEs among them have been selected and export advisers allocated accordingly.


Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 340,000Sub-component 3.1: Partnerships with Virtual Market Places: To ensure the best use of the VMPs, certain high-performing/potential firms will be offered premium accounts in VMPs so they gain greater visibility from potential clients. This sub-component will cover the expenses related to the subscription of these premium accounts. To ensure the best use of the VMPs, some high-performing/ firms will be offered premium accounts in VMPs so they gain greater visibility from potential clients and will serve as a role model for others.

Status of Implementation: The project team initiated contact with several VMPs and discussed modalities of partnership to ensure customized support to selected SMEs.

The discussions helped define the framework for collaboration. Implementation of partnership arrangement is being discussed with AliBaba, eBay, LittleMajlis (LittleMajlis.com), Souq.com, MarkaVIP.com.

A contract with Tradekey is in place to help an initial group of 8 companies. Tradekey was selected because it connects traders with global whole sellers, buyers, importers & exporters, manufacturers and distributors in over 240 countries with a special focus on Asia and the Middle East, markets that are of interest to selected companies.

Discussions are progressing with Alibaba, Etsy, Freelancer.Sub-component 3.2: Business Intelligence Development: Furthermore, the project will benefit from statistics on users, accesses and transactions which may allow for a comparative evaluation of SMEs under different VMPs.

Status of Implementation: Satisfactory. This component will be implemented at a later stage of the project.Sub-component 3.3: Certification.

Status of Implementation: Satisfactory. This component will be implemented at a later stage of the project.


Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 90,000Sub-component 4.1: Project Management – This component will finance the PIUs at country level.

Status of Implementation: Satisfactory. The terms of reference for the national coordinator were finalized in agreement with partners in the field. The PIU, composed of one national project coordinator, is in place and interacting well with SMEs, advisors and institutional partners.Sub-component 4.2: Impact Evaluation Assessment

Status of Implementation: The component will be implemented at the end of the project.

I. Disbursements of Transition Fund Funds for Direct Project ActivitiesCountry-

Execution (US$)(x)


(y)

Total (US$)


975,000 975,000


975,000 975,000


J. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 94,169 94,1692015 188,337 94,169 282,5062016 110,000 282,506 470,8432017 127,482Total 504,156 470,844 975,000

K. Disbursements of Funds for Indirect Costs (US$)Disbursed Available Total

25,000 0 25,000

D. Results Framework and Monitoring

Indicators by Component

Unit Baseline Cumulative Target Values Frequency Data Source/Methodology


Collection

Description (Indicator Definition,

etc)May 2014 –

Apr 2015

A

May 2015 – Apr 2016

A

May 2016 – Dec 2017

F






Database

PIU Number of transactions conducted by SMEs

registeredValue of Exports

increase since VMP access


Yes/No No No Yes Yes Bi-annual Reporting by the Oversight


Trade



0 0 40 160 Quarterly Captured by EAs and

monitored through M&E

Database

PIU-ITC Registration involves opening of a VMP

account and uploading of product and contact

information.INTERMEDIATE OUTCOMES


Workshops conducted Number 0 2 4 7 Bi-annual Reporting PIU-ITC






Export Advisors Trained Number 0 36 36 36 Bi-annual Reporting PIU-ITC


Export Advisors Certified Percent 0 0 70% 100% Quarterly Training provider assesses

performance





Collaborative partnerships with VMPs Number

0 0 4 8 Quarterly Project implementation

reports



Number0 0 1 4 Quarterly PIU and RIA PIU and EA # product

(newsletter) delivery by TSI main partner

Premium Accounts awarded – Certifications Number

0 0 0 50 Quarterly Project Implementation

ReportsM&E Database

and VMPs


Assessment body created and operational Yes/No

No No No Yes Quarterly Project Implementation

Reports

WB/ITC/PIU Creation of Conformity

Assessment bodyIndicators by Component Unit Baseline Cumulative Target Values Frequency Data Source/


for Data Collection


May 2014 –

Apr 2015

A

May 2015 – Apr 2016

A

May 2016 – Dec 2017

F






Database

PIU Number of transactions conducted by SMEs

registeredValue of Exports

increase since VMP access


Yes/No No No Yes Bi-annual Reporting by the Oversight


Trade



0 0 600 Quarterly Captured by EAs and monitored through M&E

Database

PIU-ITC Registration involves opening of a VMP

account and uploading of product and contact

information.INTERMEDIATE OUTCOMES




Collection


etc)May 2014 –

Apr 2015

A

May 2015 – Apr 2016

F

May 2016 – Dec 2017

F

Workshops conducted Number 0 2 2 3 Bi-annual Reporting PIU-ITC








Description (Indicator Definition, etc)May

2014 – Apr 2015

May 2015 – Apr 2016

May 2016 – Dec 2016

Export Advisors Trained Number 0 36 36 0 Bi-annual Reporting PIU-ITC


Export Advisors Certified Percent 0 0 70% 0 Quarterly Training provider assesses

performance




Collection


etc)May 2014 –

Apr 2015A

May 2015 – Apr 2016

F

May 2016 – Dec 2017

F






Collection


etc)May 2014 –

Apr 2015

May 2015 – Apr 2016

F

May 2016 – Dec 2017

F

ACollaborative partnerships with VMPs Number

0 0 1 4 Quarterly Project implementation

reports



Number0 0 0 Quarterly PIU and RIA PIU and EA # product (newsletter)

delivery by TSI main partner



Collection


May 2014 –

Apr 2015

A

May 2015 – Apr 2016

F

May 2016 – Dec 2017

F

Premium Accounts awarded – Certifications Number

0 0 0 Quarterly Project Implementation

ReportsM&E Database

and VMPs


Assessment body created and operational Yes/No

No No No Yes Quarterly Project Implementation

Reports

WB/ITC/PIU Creation of Conformity Assessment body

Strengthening Micro-Entrepreneurship for Disadvantaged Youth in the Informal Sector

A. Basic Project InformationActivity Name: Strengthening micro-entrepreneurship for disadvantaged youth (P144134)Country Name: Morocco Name of Implementation Support Agency(ies):

World BankName of ISA Project Leader: Gloria La Cava Email of ISA Project Leader:

[email protected] Entity: MINISTRY OF ECONOMY AND FINANCE (TGR)-MOROCCO

Name and Email of Recipient Entity Contact:Malika Dhif, [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 800,000 from Moroccan counterparts

Total Amount Disbursed (Direct and Indirect in US$): 2,710,000 (54%)

Steering Committee Approval Date: 20-Feb-2013

Project Implementation Start Date:27-Aug-2013

Project Closing Date:31-Mar-2018




Investing in Sustainable GrowthChoose an item.Choose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of the Project is to provide Beneficiaries in the Project Areas with access to micro-entrepreneurship development services.

"Beneficiary" means a disadvantaged man or woman between the ages of 18 and 29 who is aspiring to be or is an entrepreneur with secondary education or less, as selected pursuant to the provisions of the Project Operations Manual




Brief Summary of Project Implementation Status: This project directly contributes to address one of the key measures of the Integrated National Youth Strategy, i.e. youth inclusion through self-employment. The project was successfully negotiated on June 11-12, 2013, the first Transition Fund grant to be negotiated with Moroccan counterparts. A Project Operations Manual received the World Bank’s no objection prior to negotiations and is currently being updated to reflect stronger additional accountability mechanisms. The grant agreement was signed on July 25th, 2013 and the condition for effectiveness, i.e. the establishment of a fully staffed Project Management Unit (PMU), was promptly met. The Project became effective on August 27th, 2013 and PMU started working as of September 1st, 2013.



The World Bank has ensured ongoing implementation support of the project through several supervision missions, the latest of which took place at Mid Term during March 14-25, 2016. The Mid Term Review Mission (MTR) found that the Project Development Objective remains achievable by the project closing date on March 31, 2018 and underlined the impressive progress achieved to date.

First, the project is showing substantial progress towards the attainment of PDO indicators and Progress indicators related to the ultimate target of reaching 5,000 beneficiaries. The youth training follows three-phase approach, namely (i) pre-selection phase through boot-camps for 10,000 youth; (ii) micro-entrepreneurship training phase for 5000 youth of which 4500 are expected to complete the training; and (iii) mentoring and post-creation support for ca. 1800 young entrepreneurs. Overall, 11,024 youth, of which 47% are young women, already participated in the selection boot-camps out of a total target of 10,000, and 160 boot-camps have taken place. An additional 40 boot-camps that have been added to the final target to ensure the required numbers of surveyed youth for the Impact Evaluation. Regarding phase 2, specifically 2522 young beneficiaries have been taking part in the training, i.e. 50.4% of the total target of 5000 beneficiaries. The project has completed all training under phase 2 by June 30, 2016 and the PMU is currently working on setting up the post-creation support phase (phase 3).

Second, data collection for the Impact Evaluation baseline survey is advancing well and will be completed during the summer of 2016. The follow-up survey of the Impact Evaluation is scheduled to be completed by the end of 2017, about a year after the initiation of the post-creation phase.

Third, the M&E activities show strong signs of positive project impact. The preliminary analysis of the impact evaluation baseline sample at 50% survey completion rate shows that participants are highly satisfied with the project, over 85% rate the micro-entrepreneurship training as useful or very useful. The data further show that participants are confident that the training will lead to an increased income generation (53% rate the training as useful in this regard and 34% as very useful), will help them start (53% rate it as useful, 36% as very useful) or expand their entrepreneurial activities (52% rate it as useful, 38% as very useful), and improve their employability (52% rate it as useful, 37% as very useful). Also, more than 75% of the youth state that their preferred employment status would either be employer or independent worker, which underlines the relevance of the entrepreneurship training. The sample includes youth between the ages of 18-30 years who have successfully completed the pre-selection phase (boot-camps), prior to randomization. About half of the youth in the sample will be selected for the full training program (treatment group). When disaggregating the results by gender the preliminary analysis shows that satisfaction remains high across gender with a slightly higher satisfaction among female participants. It further shows that females are less likely to have prior working experience. In particular entrepreneurial experience is more prevalent among males. 10% of male participants have worked as employer and 17% as self-employed before versus 4% and 5% of female participants respectively. Despite small differences in employment preferences 75% of females state that their preferred employment status would be either employer or independent worker, emphasizing the relevance of entrepreneurship training for young women.

Fourth, the project is also showing substantial progress in disbursements. The disbursement rate has nearly doubled from 28 to 54 percent through the most recent Withdrawal Application on March 4. This reflects the greater momentum in project implementation with all the contracts and logistics arrangements in place for the next stages.

Fifth, the PMU is operational with most of the staffing in place, except for the Financial Management specialist (recruitment is underway). There is a need to strengthen managerial and fiduciary systems as a whole until the overall project ratings can be raised.



Expected Date of

DeliveryComplete the agreed updates to the Operations Manual PMU 7/31/2016

Validate Action Plan and evidence that it is being implemented, to address weaknesses identified in the IGF Audit Report

PMU 7/31/2016

Strengthen document management control by the PMU PMU 8/31/2016

Hire a PMU Financial Management Consultant PMU 7/31/2016

Demonstrate that the National Advisory Council and Provincial Advisory Committees have complete membership, meet regularly, and play an active role in guiding implementation during the stage of strong support to budding young entrepreneurs

PMU 8/31/2016

Integrity Training for PMU staff, Ministry of Youth and Sports and IGF staff

PMU 8/31/2016

C. Implementation Status of Components Component 1: Component 1 : Integrated Micro-entrepreneurship Support for Disadvantaged Youth in the Project Areas

This component provides a menu of non-financial support services to 5000 disadvantaged youth designed to facilitate the start-up and expansion of local youth-led micro-entrepreneurship. Aspiring and existing youth entrepreneurs can enroll in the program based on defined eligibility criteria. The component includes the following activities which are being implemented through contracts awarded to lead Moroccan NGOs (NGO Masters).

The PMU raised awareness and shared information about the project with regional delegations of the Ministry of Youth and Sports and private sector stakeholders. A total of nine meetings across Morocco took place by January 2014. It included 73 representatives of Youth Centers and Women’s Centers. Overall, eight regional meetings kicked off the identification process of local needs and resources also in view of the set-up of the Regional Advisory Boards with members of relevant local institutions and private sector, as foreseen in the Project Operations Manual.

The PMU finalized a list of approximately 229 local youth facilities and 100 additional ones in case of need. These facilities were selected on the basis of equitable regional distribution, poverty criteria, gender balance, rural access, adequate capability of the physical infrastructure also in terms also of equipped rooms for trainings.

All key implementation agencies, i.e. the consulting firm and 14 civil society associations have been contracted. A training methodology for micro-entrepreneurs has been developed by a private sector firm. The training of trainers has been conducted. Prior to the training, mobilization and pre-identification phase (bootcamps) of ca. 10,000 youth has started.



Cost (US$): (Total: US$ 3,429,424; TF: US$ 2,956,400)

Sub-component 1.1: Market assessments: The 14 local associations have carried out local market assessments to identify the key sectors offering promising livelihood opportunities (as well as saturated markets), constraints of existing businesses and

trades, and possibilities for creating new and upgrading existing micro-enterprises — for example, by fostering value chain integration or exploring stronger distribution channels. The assessments will guide the micro-entrepreneurship development support services, allowing them to specialize in strategic sectors and professions. The assessments will also allow identifying opportunities for non-traditional economic activities, especially for women, thereby broadening the scope for income-generating activities beyond the traditional sex-stereotypes.

Status of Implementation: All 14 associations have completed the markets assessments. Sub-component 1.2: Entrepreneurship training:Local implementing organizations (associations) have been contracted to provide a combination of skills needed to start and grow a business, including financial literacy (how to manage money and the use of financial services, such as savings and credit), behavioral and life skills (communication, goal setting and achievement, decision making, etc.), and business skills (market research, budgeting, etc.). As part of the training, the project will also orient beneficiaries in the start-up/expansion process, in particular by preparing them to apply to local microfinance institutions.

Status of Implementation: First, the project is showing substantial progress towards the attainment of PDO indicators and Progress indicators related to the ultimate target of reaching 5,000 beneficiaries. The youth training follows three-phase approach, namely (i) pre-selection phase through boot-camps for 10,000 youth; (ii) micro-entrepreneurship training phase for 5000 youth of which 4500 are expected to complete the training; and (iii) mentoring and post-creation support for ca. 1800 young entrepreneurs. Overall, 11,024 youth, of which 47% are young women, already participated in the selection boot-camps out of a total target of 10,000, and 160 boot-camps have taken place. An additional 40 boot-camps that have been added to the final target to ensure the required numbers of youth for the control group in the Impact Evaluation methodology. Regarding phase 2, specifically 2522 young beneficiaries have been taking part to the entrepreneurship training, i.e. 50.4% of the total target of 5000 beneficiaries.Sub-component 1.3: Post-creation business development support:A sub-set of 1800 participants will be eligible for ongoing business development services from local implementing organizations to help them sustain and grow their business. This will include mentoring, access to physical space that can be used by for production and/or distribution, and assistance with access to markets.

Status of Implementation: This activity is started in the second quarter of 2016 as planned. Implementing partners are currently in the process of selecting the beneficiaries and ensuring that all eligible beneficiaries have created their micro-enterprise. The activity is planned to be completed by December 2016.

Component 2: Institutional Capacity BuildingThis component provides all the auxiliary support services necessary to successfully implement Component 1, including product and curricula development, strengthening institutional capacity for service delivery, and capacity building to recipient agencies and local entities. The institutional capacity building has been provided through competitively selected international service providers (private sector firm) under the coordination of the recipient agency and the project management unit. The component includes the following activities which are being procured under a single contract.



Cost (US$): (Total: US$ 943,428; TF: US$ 813,300)

Sub-component 2.1: Development of training tools and curricula: Based on national and international training curricula and other micro-enterprise support tools, minimum

standards for the delivery of the services offered under Component 1 will be established and existing materials adapted to make them suitable for the project.

Status of Implementation: Development of training tools and curricula have been developed by the firm MSI, building on its global experience in this field. The training materials have been used and this activity is complete. Sub-component 2.2: Institutional capacity building for service delivery: Under this sub-component the project will also provide technical assistance and strategic advice to NGOs and youth-friendly services on the local level so that they can deliver the integrated services efficiently and effectively. This includes capacity building on the content, curricula, and methods of the training and post-creation support provided, strengthening organizational functions of local organizations (Budgeting, Reporting, Financing, etc.), and enhancing the capacity of civil servants in Youth and Women Centers managed by the MYS on outreach and programming.

Status of Implementation: This activity is complete and trained 204 youth professionals in December 2014 (i.e. 102% of the originally planned 200 personnel)Sub-component 2.3: Capacity building to recipient agency and local governments: Targeting public officials at central and provincial levels (especially civil servants of the MYS, other interested entities and provincial governments, as needed) the project will provide training on territorial planning and outreach of youth-focused programs, support the participation in specialized trainings and workshops on youth employment and entrepreneurship, and support the integration of lessons for future scaling up.

Status of Implementation: This activity has begun in December 2014 and so far 201 civil servants have been trained (i.e. 80% of the planned 250 personnel). Sub-component 2.4 : Capacity building on Monitoring and Evaluation (M&E): The technical assistance will also cover training and coaching in M&E to ensure that quality data is collected as part of program implementation.Status of Implementation: This activity begun in June 2014 and included a series of M&E training workshop for the PIU with training events in September 2014, January 2015, and May 2015. The PIU has developed strong capacity for project monitoring and is submitting high quality progress reports on a timely basis. The PIU is also benefiting from continuous training for effectively implementing Impact Evaluations.

Component 3: Project Management and Monitoring A Project Management Unit (PMU) is responsible for overall coordination and implementation of the project. Key responsibilities include national and regional coordination, procurement, financial management, monitoring and evaluation, communication and knowledge management, formalizing partnerships, as well as the selection and oversight of local implementing organizations and service providers. Gender balance is ensured within the PMU in order to facilitate the reaching of target values for young female beneficiaries. The project draws on several complementary monitoring and evaluation tools, including process and impact evaluation. The expenditures financed by this component primarily include consultant salaries for the PMU consultants, transportation and office operating costs, the Information Technology (IT) system for project monitoring, external audits and periodic assessments, as well as consultant fees and data collection for an impact evaluation.Previous Rating: Moderately Satisfactory


Cost (US$): (Total: US$ 1,276,000; TF: US$ 1,100,000)

Sub-component 3.1: Project Management : The PMU is being staffed with one Project Coordinator, one Procurement Specialist, one Financial

Management Specialist, one M&E Specialist, and two Regional Coordinators.

Status of Implementation: Due to internal turn-over, the Procurement Specialist position is currently re-filled as is one of the Regional Coordinator positions. In addition, a third Regional Coordinator position is being added to the PMU to ensure implementation can proceed in parallel through all 14 local implementing associations. The PMU is currently conducting activities at a good pace, to compensate for the accumulated delays in implementation. Sub-component 3.2: M&E: The Impact Evaluation design has been developed with World Bank support and an experienced international Research Team is leading the evaluation effort. The baseline survey has been started in September 2015 and will follow the treatment- and control-groups of youth over 12-18 months to establish causal effects on the impacts of this project. The ICT platform for the monitoring process has been developed and is operational since April 2015.

Status of Implementation: The M&E work is Moderately Unsatisfactory, given delays in the procurement of the survey firm for the baseline data collection of the Impact Evaluation. Otherwise, the PMU is submitting very regular and high-quality progress reports. The PMU is supported by a strong external impact evaluation research team which is implementing a rigorous impact evaluation strategy. The evaluation baseline survey has been launched and additional funding has been mobilized to ensure the independence and quality of the evaluation.


(US$)

(x)


(y)

Total (US$)


5,000,000 0 5,000,000


5,000,000 0 5,000,000


2,710,000 0 2,710,000

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2013 0.00 0.00 0.002014 544,735.00 0.00 544,735.002015 566,076.63 566,076.63 1,132,153.26 2016 873,853.59 873,853.59 1,747,707.192017 525,706.63 504,962.49 1,030,672.122018


Disbursed Available Total422,107.60 17,392.40 500,000

G. Results Framework and MonitoringH. Project Development Objective (PDO) : The objective of the Project is to provide Beneficiaries in the Project Areas with access to micro-entrepreneurship

development services. I. "Beneficiary" means a disadvantaged man or woman between the ages of 18 and 29 who is aspiring to be or is an entrepreneur with secondary education or

less, as selected pursuant to the provisions of the POM.


Unit of Measure

Baseline

ActualsCumulative

Target Values**

Frequency

Data Source/

Methodology



definition etc.)

Sept 2013

– Aug 2014

A

Sept 2014

– Aug 2015

A

Sept 2015

– Aug 2016

A

Sept 2016

– Aug 2017

F

Sept 2017

– Mar 2018

F

Indicator One:Direct project beneficiaries of which female (percent), who participate in the training in entrepreneurship

Number0 0 0 2522 5000

QuarterlyMonitorin

g toolImplementing

Agency

Defined as those who attend entrepreneurship trainingFemale

percent0% - - 50.4% 40%

Indicator Two: Direct project beneficiaries of which female (percent), who successfully complete entrepreneurship training

Number 0 0 0 2522 4500

QuarterlyMonitorin

g toolImplementing

Agency

Training Certification issued based on assessment of acquired life, financial & business skills, and attendance of each participant (target: 90%)

Female Percent

0% - - 50.4% 40%

Indicator Three:Youth micro-entrepreneurs who receive post-creation follow-up support for at least 12 months (number), of which female (percentage).

Number 0 0 0 1080 1800 Quarterly Monitoring tool

Implementing Agency

40% of the certified youth are expected to receive follow-up support

Female Percent

0% - - - 40%

INTERMEDIATE RESULTSIntermediate Result (Component 1): Youth beneficiaries receive quality entrepreneurship support services

Direct project beneficiaries (number) of which female (percent), participating in pre-identification

Number (total)

0 0 29331 11,024 10000 Quarterl

yMonitorin

g Tool


Participation in BootcampPercentage

(female)0% - 47.8% 47% 40%

Direct project beneficiaries (number) of which female (percent), who complete a business plan

Number (total)

0 0 0 2522 4500

Quarterly

Monitoring Tool


Business Plan

viability will be assessed (target: 90%

of total)

Percentage (female)

0% - - 50.4% 40%

Participants who rate the quality of the training package as useful and very useful

Percentage 0% - - 85% 80% Quarterly

Monitoring Tool, Evaluation Sheets


Beneficiaries who evaluate the post-creation follow-up support as useful and very useful

Percentage 0% - - - 80% Quarterly

Monitoring Tool, Evaluation Sheets


Intermediate Result (Component 2): Implementing organizations and public authorities participate in the institutional capacity building

Trained Youth Professionals (number) at implementing NGOs/CBOs providing training and support to youth, of which female (%)

Number 0 221 204 200

Quarterly

Monitoring Tool


Percentage (female)

0% - 33.9% 41% 50%

Public officials at the central and Number 0 0 176 201 250 Quarterl Participati Regiona incl. Staff of

local level trained by the program y on sheetsl

coordinators

MSJ, Maisons de Jeunes, Foyer Feminins

Intermediate Result (Component 3): Quality project management and M&E in place

Timely submission of monitoring reports

Yes/No 0 4 8 12 16 Quarterl

yProject records

PMU

Impact Evaluation carried out Yes/NoBaseline survey

Evaluation and survey

design

Baseline survey

schedules; questionnair

e tested

Baseline survey

ongoing; Follow-up Tracking

End of Project survey

& report

Baseline

Survey before project

start

Household Survey

Data

Survey Firm,

Principal

Investigator


Strengthening Parliamentary Accountability and Oversight

A. Basic Project InformationActivity Name: STRENGTHENING PARLIAMENTARY ACCOUNTABILITY AND OVERSIGHT IN MOROCCOCountry Name: Morocco Name of Implementation Support Agency(ies): The

World BankName of ISA Project Leader: Lida Bteddini Email of ISA Project Leader: [email protected] Entity: Parliament of Morocco Name and Email of Recipient Entity Contact: Chafik

Rachadi

Total Amount Approved by the Transition Fund (US$): 4 million

Additional Funds Leveraged and Source(s), if any (US$): 350,000 House of Representatives of Morocco


Steering Committee Approval Date: December 8, 2015

Project Implementation Start Date:January 1 2016

Project Closing Date:December 31 2018



Choose an item.Choose an item.Choose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The Project Development Objective is to contribute to enhanced legislative oversight and establishing mechanisms for public engagement with Parliament.

The program, will achieve these objectives by (i) supporting open parliament in the area of public access to information and strengthening avenues for public engagement; (ii) improving parliamentary budget oversight linked to budget analysis and the newly adopted performance based budgeting approach to increase accountability, and (iii) reinforcing knowledge development and dissemination of the value and impact of ongoing reforms among citizens and civil society.


Satisfactory


Satisfactory


To date, many actions have been taken to ensure the successful administrative setup of the project and its formalization within the Parliament. An action plan was developed in collaboration with Parliament which includes sequencing and prioritization of activities linked to the first year of implementation and in line with results indicators. Terms of reference documents have been established and validated for the role of project coordinator, the comité de pilotage of the project, and the three thematic focal points that will lead the coordination of the three project components. The project coordinator TORs were published on the parliament website and three candidates have been identified. The selection of the project coordinator will be determined on the basis of a review meeting including the TTL and parliament representatives (end of July 2016). An office and the necessary equipment have been secured and are in place to support the coordinator once he/she is recruited. The comité de pilotage structure and role has been validated by an internal decision by the President of Parliament and the Bureau. Team building exercises are taking place between July – August 2016 to ensure all members of the comité have adequate ownership of the project and their respective roles. A distribution list for the project has been

established to facilitate communication among the project team. A seminar on public petitions took place on July 1 2016 in Rabat convening MPs and staff and government representatives to discuss the reform and international expertise has been mobilized to support the parliament in this domain. A formal launch event took place on July 14 2016 with the CD’s participation to announce the official launch of the event. A website has been established to communicate about the project and its activities (http://www.chambredesrepresentants.ma/banquemondiale/). Furthermore, terms of references have been developed for the recruitment of a University/Institute which will be tasked with identifying the international expertise for the training of training programs, developing the modules and carrying out the training of training sessions over the next year to be done in close coordination with the Parliament’s comité de pilotage and the World Bank project team.


Recruitment of project coordinator based in Parliament ISA/Recipient entity

9/1/2016

Identification and recruitment of University/Institute for Training of Trainers

ISA/Recipient entity

9/30/2016

Identification and recruitment of petitions trainers through institute


10/31/2016

Technical assistance support on internal regulations of parliament on petitions


11/30/2016

C. Implementation Status of Components Component 1: Open Parliament Activities under this component aim to support the development of a strong, open and accountable parliament through enhancing citizen participation in public policy making and improving access to information. The program will include policy guidance and capacity building relating to the establishment of a parliamentary petitions system in line with the newly adopted organic petitions law, which implicates Parliament directly. Support will also be provided on access to information, a key innovative reform taking place in Morocco. The access to information law will be adopted in the coming months. Capacity building on access to information will be focused on the development of training guidelines as well as the development and implementation of an institution-wide training program linked to the implementation of this reform.Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 2,255,000 Sub-component 1.1: Public PetitionsThis support includes technical assistance and policy advice, training of trainers, twinning arrangements, development of an e-petitions portal, information and communication strategy support and outreach with civil society.

Status of Implementation: Parliament has provided draft of revised bylaws for Parliament which integrates petitions clause. Expertise is mobilized and a seminar on petitions was organized in June 2016 to inform the discussion on the internal parliamentary setup on petitions. The organic law on petitions was adopted and technical assistance on the bylaws will continue until November 2016.Sub-component 1.2: Access to InformationSupport to Development of an information and communication strategy, development of guidelines and training modules, training of trainers, development of information systems and the update and reform of the archiving and record management system within Parliament.

Status of Implementation: Provide update on implementation statusThe recruitment of the institute/university to carry out trainings on ATI is in the process and we hope to have the institute on board by September 2016.

Component 2: Parliamentary Budget Oversight

http://www.chambredesrepresentants.ma/banquemondiale/

Activities under this component support the institutionalization of a well-designed training program in line with budget reforms underway. Technical assistance and training will be provided to the Parliamentary team and an academic institution tasked with ensuring the continuity of this capacity building program past the program duration. Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,100,000 Sub-component 2.1: Performance based budgetingSpecific activities include training of trainers of performance based budgeting, technical assistance and coaching, and support on performance program evaluation

Status of Implementation: Technical expertise to support this activity is being mobilized. Training modules in this area will be developed in addition to a background reference document to be distributed to new MPs after parliamentary elections in October on the scope of the reform and the subsequent role of parliament Sub-component 2.2: Budget OversightSupport on training of trainers on report writing for finance committee staff, training of trainers on the budget cycle and budget analysis, and development of a budget and performance review website

Status of Implementation: Technical expertise to support this activity is being mobilized. Training modules in this area will be developed

Component 3: Knowledge Development and DisseminationActivities under this component are linked directly to the overarching policy reforms underway in Morocco, including broad cross-cutting reforms such as access to information, public petitions and performance based budgeting. The knowledge development and dissemination activities linked to this component will focus on strategic information and communication support to strengthen awareness of citizens and civil society in regards to reform implementation, and will aim to contextualize the policy dialogue on these broad reform areas where relevant. This component will also reinforce the demand side which will determine the success of reforms, such as is relevant for reforms on public access to information and public petitions.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 495,000 Sub-component 3.1: Knowledge Development and DisseminationActivities under this component are linked directly to the overarching policy reforms underway in Morocco, including broad cross-cutting reforms such as access to information, public petitions and performance based budgeting. The knowledge development and dissemination activities linked to this component will focus on strategic information and communication support to strengthen awareness of citizens and civil society in regards to reform implementation, and will aim to contextualize the policy dialogue on these broad reform areas where relevant. This component will also reinforce the demand side which will determine the success of reforms, such as is relevant for reforms on public access to information and public petitions.

Status of Implementation: A communications firm will be identified and recruited to support this component. Activities under this component will be organized during the second half of the year.


(US$)

(x)


(y)

Total (US$)

Approved Amount 3,500,000 3,500,000

for Direct Project Activities (a): Amount Received from Trustee (b):

3,500,000 3,500,000


20,160 20,160

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 410,000 1,000,000 1,410,0002017 500,000 840,000 1,340,0002018 600,000 650,000 1,250,000

F. Disbursements of Funds for Indirect Costs (US$)Disbursed Available Total26,800 429,200 456,000


Fund Level Results Indicators* Unit of Measure Baseline




Collection


etc.)Jan-Dec 2016F

Jan-Dec 2017F

Jan-Dec 2018F

Pillar 3 Development Objective/Impact: Enhanced economic governance including improvements in transparency, anti-corruption, accountability, asset recovery, public financial management and oversight, public sector audit and evaluation, integrity, procurement reform, regulatory quality and administrative simplification, investor and consumer protection, access to economic data and information, management of environmental and social impacts, capacity of local government, decentralization, establishing partnerships with entities such as Open government, public service delivery in social and infrastructure sectors and banking systems as well as support for the emergence of new and innovative government agencies related to new transitional reforms Fund Level Indicator One:

Specific/special stakeholder groups engaged and empowered

Number of CSOs engaged and empowered in public policy

N/A 10 CSOs 25 CSOs 35 CSOs Annual Parliament’s e-Petitions platform

WB and clientCSOs, women or youth groups engaged by the local government in the form of partnerships aimed at increasing the involvement of these groups in public policy

Cross Pillar 5 Development Objective/Impact: Results produced in the form of documents produced and endorsed, decrees issued, structures established and public sector staff trained across the four pillars Fund Level Indicator Two:

MPs and staff trained Number of MPs and staff trained

65 Number of MPs and staff trained increased by 25%

Number of MPs and staff trained increased by 45%

Number of MPs and staff trained increased by 60%

Annual Evaluation by the WB and Parliament project team

WB and client MPs and staff received training in various thematic areas to improve their capacity for better legislative oversight

Project Development Objective (PDO): The Project Development Objective is to contribute to enhanced budget oversight and systematic public engagement within Parliament.


Cumulative Target Values**Frequency Data Source/

Methodology


Collection


etc.)YR 1 YR 2 YR3PDO Level Indicator One:

Enhanced budget oversight functions

Percentage of finance committee MPs and staff expressing increased competency in budget

N/A 45% 60% 75% Annual Qualitative surveys conducted through the project

WB and client Strength of budget oversight by the legislature in Morocco

oversight;

PDO Level Indicator Two:

Systematic public engagement processes increased

Number of parliamentary public engagement processes effectively formalized

N/A1 bylaw integrating parliamentary petitions + e-Petitions portal implemented in line with organic petitions law

1 bylaw on petitions + guidelines on parliamentary petitions procedures + e-Petitions portal implemented in line with organic petitions law

1 bylaw on petitions + guidelines on parliamentary petitions procedures implemented in line with organic petitions law

Annual Parliament M&E system; Parliament ICT portal

WB and client Parliamentary bylaws and guidelines implemented in line with organic petitions law; establishment of e-Petitions portal in line with parliamentary procedure

INTERMEDIATE RESULTSIntermediate Result (Component One): Open ParliamentIntermediate Result indicator One:

Parliamentary petitions system developed in line with organic petitions law

Percentage of petitions responded to in a timely manner (i.e. in line with legal provision);

N/A 30% of petitions responded to in a timely manner (disaggregated by gender)

50% of petitions responded to in a timely manner (disaggregated by gender)

75% of petitions responded to in a timely manner (disaggregated by gender)

Annual e-Petitions portal M&E system; qualitative survey conducted for written submissions

WB and client Evaluation of the effectiveness of formalized petitions procedure in line with new organic petitions law


Support to the establishment of parliamentary ATI process

Percentage of users satisfied with response to their ATI request

N/A30% of users satisfied with response to ATI request(disaggregated by gender)

50% of users satisfied with response to ATI request(disaggregated by gender)

75% of users satisfied with response to ATI request(disaggregated by gender)

Annual Parliament ICT portal and written ATI requests submitted to committees

WB and client Evaluation of the satisfaction of formalized ATI procedure by citizens in line with new right to information legislation

Intermediate Result (Component Two): Parliamentary Budget Oversight


Improved capacity of MPs and staff on budget oversight

Percentage of participants with increased technical capacity on budget oversight assessed through qualitative surveys

N/A 45% of participants express increased technical capacity on budget oversight (disaggregated by gender)

60% of participants express increased technical capacity on budget oversight (disaggregated by gender)

75% of participants express increased technical capacity on budget oversight functions(disaggregated by gender)

Annual Qualitative surveys conducted through the project

WB and client Assessment of increased capacity of MPs and staff on budget oversight as a result of program


Parliamentary review of ministerial performance projects and reports conducted

Percentage of annual assessments of ministerial performance plans published before vote of the budget law

N/A 50% of annual assessments of performance plans published

75% of annual assessments of performance plans published

100% of annual assessments of performance plans published

Every legislative cycle

Evaluation by the project team and finance committee

WB and client Assessment of capacity to effectively engage in review of performance projects and reports


Significant social programs undergo parliamentary review

Reviews of significant social program completed

N/A Test of the program evaluations conducted

One significant social program has been evaluated

Two significant social or agriculture program has been evaluated

Annual Evaluation by the project team and finance committee

WB and client Assessment of capacity to review complex programs through performance based approach

Intermediate Result (Component Three): Knowledge Development and DisseminationIntermediate Result indicator One: Improved awareness on petition and ATI reforms

Percentage of respondents expressing increased awareness

N/A 45% of participants express increased awareness of parliamentary public engagement initiatives (disaggregated by gender)

60% of participants express increased awareness of parliamentary public engagement initiatives (disaggregated by gender)

75% of participants express increased awareness of parliamentary public engagement initiatives (disaggregated by gender)


WB and client Evaluation of the awareness of ATI procedure by citizens in line with new right to information legislation

Intermediate Result indicator Two: Improved citizen satisfaction with Parliament-CSO relations

Citizen satisfaction with Parliament-CSO relations

N/A 45% of respondents express positive attitude

65% of respondents express positive attitude

75% of participants express positive attitude


WB and client Assessment of parliamentary – CSO engagement mechanisms and their effectiveness

increased through beneficiary feedback mechanism

towards exchanges between Parliament and CSOs (disaggregated by gender)




Youth in Public Life: Open & Inclusive Youth Engagement – Morocco ActivitiesA. Basic Project Information

Activity Name: Youth in public life: Towards open and inclusive youth engagement.

Country Name: Morocco Name of Implementation Support Agency(ies): OECD

Name of ISA Project Leader: OECD: Andreas Schaal/Miriam Allam

Email of ISA Project Leader: OECD: [email protected]; [email protected]

Recipient Entity: Ministry of Youth and Sports Name and Email of Recipient Entity Contact: M. Abdellatif Aït Laamiri, Secretary General, Ministry of Youth and Sports, [email protected]





5/30/2016


9/1/2016


8/31/2019




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project will support Morocco in building stronger mechanisms for youth engagement and mainstreaming their considerations in public life.

The project will work towards the realization of the objective by (i) supporting the implementation of the National Youth Strategy 2015-30 across the different levels of government; (ii) strengthening the institutional and legal framework for youth engagement and representation in public life; and (iii) fostering a more systematic and inclusive dialogue between public officials and youth associations.

The project will support the Ministry of Youth and Sports to implement the National Youth Strategy. It will further support the creation of consultation mechanisms at all levels of government as stipulated in the National Strategy, by empowering stakeholders and raising awareness on the importance of such processes for national and local development. Each project component is complemented by regional activities to leverage regional peer-to-peer learning.

The project will benefit from OECD expertise and member countries’ experience as well as good practices from Tunisia, Egypt and Jordan that are part of this regional project.


Not Applicable



Following the project’s approval by the steering committee in May 2016, the OECD started developing the detailed implementation strategy and action plan to be presented to the Moroccan counterparts in the coming weeks. A first coordination meeting in Paris (OECD) with Morocco, Jordan and Tunisia as beneficiaries of the regional project is planned in September 2016 followed by an official launching in Rabat in autumn 2016.


Prior to the project approval, the Ministry of Youth and Sports organized several scoping meetings to prepare the proposal, ensure that fully reflects the government priorities and complements other donors’ activities. Various coordination meetings and conference calls were set up with the Ministry of Youth and Sports, the Ministry of Finance and Economy, the Ministry of Civil Service and Administrative Modernization, Youth associations and Donors (UNESCO, EU, UNDP, UNICEF, France, Germany, UK, US). All along the preparation process, Moroccan stakeholders have shown strong buy-in and commitment to build a high-quality project that will address efficiently youth challenges.

It is important to note that these preparatory discussions helped to clarify the commitments made by the Ministry of Youth and Sports through the National Youth Strategy and better understand the legislative calendar related to youth (especially on the Organic Law on the Conseil Consultatif de la Jeunesse et de l’Action Associative). Information has been disseminated among various stakeholders to establish an informal network to support the implementation of the project.

On May 20th, Rabat became “Arab Youth Capital” during the 38th session of the council of Arab youth and sports ministers. This event demonstrates a high level of commitment from the Moroccan authorities to youth concerns and will surely help the cross-sector approach of the project. Such visibility will also ease the communication related to project activities.

Various donor coordination meetings were organized in the past months to discuss international engagement supporting young men and women in Morocco and to further explore synergies and joint activities. In addition, the OECD has reported on the project to MENA and OECD countries in the framework of the MENA-OECD Governance Programme – a forum that provides for the coordination of country and donor-led activities at regional and national level.

The coordination meetings mentioned above set the set the ground for creation of the Project Implementation Team which will play a crucial role in the delivery of the project and is supposed to convene for the first time in September 2016.

C. Implementation Status of Components Component 1: Supporting the implementation of the National Youth Strategy 2015-30 across the different levels of government: the project will assist Morocco in strengthening public governance systems to support the effective implementation of the National Youth Strategy 2015-30 Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): $ 507 879Sub-component 1.a: Strategic mapping of Morocco’s public governance framework to implement the Integrated National Youth Strategy 2015-30;

Status of Implementation: (Ongoing): the implementation strategy and action plan will be agreed by the project implementation team in September. Sub-component 1.b: Capacity building activities to promote an integrated and coherent youth strategy

Status of Implementation: (Ongoing): the implementation strategy and action plan will be agreed by the project implementation team in September.Sub-component 1.c: Regional conference for MENA countries (in particular MOR, TUN, JOR, EG) on the formulation and implementation of national youth strategiesStatus of Implementation: (Ongoing): the implementation strategy and action plan will be agreed by the project implementation team in September

Component 2: Strengthening the institutional and legal framework for youth engagement and representation in public lifeThrough component 2, the project will support Morocco in implementing the institutional framework for youth

engagement at the central (e.g. Advisory Council for Youth and Associative Action) and sub-national (e.g. regional and local youth councils) level.

Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 321,601Sub-component 2.a: Capacity building activities to support the effective implementation of youth councils at the different levels of government

Status of Implementation: (Ongoing): the implementation strategy and action plan will be agreed by the project implementation team in September.Sub-component 2.b: Regional conference for MENA countries (in particular MOR, TUN, JOR) on the institutional and legal framework for inclusive youth engagement in public life.

Status of Implementation: (Ongoing): the implementation strategy and action plan will be agreed by the project implementation team in September.

Component 3: Fostering a more systematic and inclusive dialogue between public officials and youth associations on public governance reforms. This component will focus on the role of the youth in the implementation of the national anti-corruption strategy. It will foster a joint understanding among both sides for ways to exploit non-traditional and innovative forms of engagementPrevious Rating: Not Applicable Current Rating: Not Applicable Cost (US$): $ 379,250Sub-component 3.a: Capacity building activities to disseminate innovative tools, mechanisms and channels for youth engagement

Status of Implementation: (Ongoing): the implementation strategy and action plan will be agreed by the project implementation team in September. Sub-component 3.b: Good practice guide to engage youth through innovative forms of participation in policy-making and public governance

Status of Implementation: (Ongoing): the implementation strategy and action plan will be agreed by the project implementation team in September.Sub-component 3.c: Regional dialogue on innovative forms of youth engagement in policy-making and public governanceStatus of Implementation: (Ongoing): the implementation strategy and action plan will be agreed by the project implementation team in September


(US$)

(x)


(y)

Total (US$)


1,208,730 1,208,730


0 0


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 0 100,000 100,0002017 225,000 225,000 550,0002018 225,000 175,000 950,0002019 175,000 83,730 1,208,730


81,270 81,270


PDO: Support Morocco in building stronger mechanisms for youth engagement and mainstreaming their considerations in public




Sep 2016 – Aug 2017

F

Sep 2017 – Aug 2018

F

Sep 2018 –

Aug 2019

F

Target

Number of Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Nr. of reports 0 0 1 2 2 Annually Progress ReportProject


This will include one OECD Review and one good practice guide.


Quantitative 0 0 3 5 5 Annually Progress ReportProject



Support the mobilization of a large range of national institutions, regions, municipalities and youth associations.



Number of national and local institutions working on youth engagement in public life participating in project activities.

Public sector staff trained in engaging youth in public life Quantitative 0 40 80 100 100 Annually Progress Report


Team (PIT)


Improved enabling environment and government capacity to implement the Integrated National Youth Strategy



Number of initiatives such as legal, institutional, policy or procedural reform and activities to implement the Strategy.

Specific / special stakeholder groups engaged in the elaboration, implementation and monitoring of youth policies



Number of initiatives to promote the systematic engagement of youth in relevant policies


Component 1 – Supporting the implementation of the National Youth Strategy 2015-30 across the different levels of government;

Number of review completed and endorsed Quantitative 0 1 1 1 1 Annually Progress Report Project


OECD Review of Morocco’s Public Governance Framework to implement the Integrated National Youth Strategy 2015-30

Number of capacity-building seminars Quantitative 0 1 2 2 2 Annually Progress Report Project Implementation

Team (PIT)

Two capacity building seminars to promote a whole-of-government approach to the implementation of the Integrated National Youth Strategy 2015-30

Number of regional conferences Nr. of conferences

0 1 1 1 1 Annually Progress Report


Team (PIT)


respective national strategies

Component 2 – Strengthening the institutional and legal framework for youth engagement and representation in public life


Team (PIT)


Number of regional conferences Nr. of conferences 0 0 1 1 1 Annually Progress Report Project


1 regional conference with high-level youth stakeholders from Morocco, Tunisia, Egypt and Jordan and the MENA region to exchange on the progress made in formulating and implementing their respective national strategies

Component 3 – Fostering a more systematic and inclusive dialogue between public officials and youth associations.


Team (PIT)


Number of guides produced and endorsed Nr of guide 0 0 0 1 1 Annually Progress Report


Team (PIT)

Good Practice Guide featuring good practice examples to engage youth in non-traditional forms of participation in policy-making, public service delivery and public governance

Regional dialogue on innovative forms of youth engagement Nr of events 0 0 0 1 1 Annually Progress Report


Team (PIT)

1 regional conference with youth stakeholders from the MENA region (in particular MOR, TUN, JOR, EG) to discuss innovative forms of youth engagement in policy-making and public governance.

Tunisia Projects

Enhancing governance and economic growth in Tunisia: promoting transparency and integrity in public procurement

A. Basic Project InformationActivity Name: Enhancing governance and economic growth in Tunisia: promoting transparency and integrity in public procurementCountry Name: TUNISIA Name of Implementation Support Agency(ies): African

Development BankName of ISA Project Leader: Amine Mouaffak Email of ISA Project Leader: [email protected] Recipient Entity: Haute Instance de la Commande Publique (HAICOP)

Name and Email of Recipient Entity Contact: ELHEM [email protected]

Total Amount Approved by the Transition Fund (US$): 2,528,900 USD (including )

Additional Funds Leveraged and Source(s), if any (US$): 150,000 USD (Government of Tunisia)

Total Amount Disbursed (Direct and Indirect in US$): No disbursement at this stage


Project Implementation Start Date:05 April 2016 (date of signature of the letter of agreement)

Project Closing Date:August 31, 2018





Project Development Objective: The purpose of the project is to support the Tunisian Government’s ongoing reforms to strengthen its public procurement systemRating for progress towards achievement of objective:




Brief Summary of Project Implementation Status: The Letter of agreement of the project was signed between the Tunisian government (TG) and the African development Bank (AfDB) in April 5th 2016. Almost a year after the Steering committee approval date. A one-day launching workshop was organized between the AfDB and the Recipient Entity (HAICOP) on May 19th 2016.Actually the procurement Plan is under preparation and should be finalized by mid-July.



Finalization of the procurement Plan. HAICOP and AfDB

7/15/2016

Recruitment of consultants specialized in IT application development and electronic archiving for the development of an electronic archiving

HAICOP and AfDB

10/3/2016



system (e-archiving) (prepare ToR, Non-objection of the Bank, advertisement, selection, etc.)Recruitment of consultants for the development of a price nomenclature (prepare ToR, Non-objection of the Bank, advertisement, selection, etc.)

HAICOP and AfDB

10/17/2016

C. Implementation Status of Components Component 1: Increase efficiency of procurement processing and streamline the information systemPrevious Rating: Moderately Satisfactory


Cost (US$): 1,549,900 USD

Sub-component 1.1: Assist in implementing activities set forth in the Action Plan including financing of consultancy contracts for studies needed to help decision making, more specifically: (i) the recruitment of consultants specialized in IT application development and electronic archiving for the development of an electronic archiving system (e-archiving); (ii) the recruitment of consultants for the development of a price nomenclature; (iii) the recruitment of consultants specialized in Enterprise resource Planning (ERP) for the development of an integrated budget management system to compile data on Public Enterprises related public procurement; and (iv) the recruitment of consultants for the development of quality assurance standards and procedures for 70 public entities (24 Governorates, 24 CRDA, 21 Ministries and the “Haute Instance de la Commande Publique”/HAICOP) and other entities involved in public procurement and related ISO 9001 certification.

Status of Implementation: Not implemented yetSub-component 1.2: Support the “Conseil National de la Commande Publique” (CNCP) former CNCS and the “Haute Instance de la Commande Publique” (HAICOP) by (i) the recruitment of consultants for the development and setting up of a fully integrated Public Procurement and Monitoring Information System (PPMIS) which should also aim at integrating or interlink, in the long term, the various IT systems addressed by sub-component 1.1 such as managing archives and data on public enterprises; (ii) the financing of logistics costs needed for dissemination and training countrywide on the use of the system; (iii) the acquisition of office equipment and IT equipment including for the new e-procurement platform; and (iv) maintenance services for TUNEPS e-procurement platform.

Status of Implementation: Not yet implemented

Component 2: Capacity building and strengthening of procurement workforcePrevious Rating: Moderately Satisfactory


Cost (US$): 450,000 USD

Sub-component 2.1: Reinforce the professional skills of forty (40) procurement expert officials within the HAICOP and the bodies that control and/ or audit public procurement (State Control, Control of public expenditure, General control of public services, General control of finance), by providing on-site tailored training and certification provided by certified institutes on purchasing (such as trainings sessions offered by the Chartered Institute of Purchasing and Supply -CIPS) so to increase the officials’ understanding of purchasing strategies and supply chain, procurement risk and management.

Status of Implementation: Not yet implementedSub-component 2.2: Reinforce the professional skills of forty (40) procurement expert officials within the HAICOP, by providing on-site tailored training and certification provided by certified institutes on procurement auditing procedures such as trainings sessions offered by the Institute of Internal Auditors (IIA). Training and certification will follow international standards such as those followed by CIPS, IIA and INTOSAI.Status of Implementation: Not yet implemented

Component 3: Knowledge development and disseminationPrevious Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 199,000 USDSub-component 3.1: Organize and promote regional peer learning and exchange of experiences among the HAICOP procurement officials through study trips to audit and control bodies of partner international organizations or countries.


Component 4: Project ManagementPrevious Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 150,000 USDSub-component 4.1: The objective of Project component 4 is the management of activities and the financial audit of funds.



(x)


(y)

Total (US$)


2,298,900 USD (excluding 230,000 USD ISA fees)

2,298,900 USD


2,298,900 USD (excluding 230,000 USD ISA fees)

2,298,900 USD


0 0

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2015 0 0 0 2016 0 500,000 USD 500,000 USD2017 800,000 USD 600,000 USD 1,400,000 USD2018 298,900 USD 100,000 USD 398,900 USD

F. Disbursements of Funds for Indirect Costs (US$)Disbursed Available Total0 230,000 USD (for AfDB) 230,000 USD


Project Development Objective (PDO): Support the Tunisian Government’s ongoing reforms to strengthen its public procurement system (impact = Increased transparency and Integrity in public procurement service delivery)


Baseline


Frequency

Data Source/

Methodology


Collection


definition etc.)Jan-Dec

2015A

Jan-Dec

2016F

Jan-Dec

2017F

Jan-Aug 2018

F

Indicator One : Average Procurement lead time (from advertisement to signing)

days 150 days 150 days

90 days Bi annually

Reports by the HAICOP/ CNCP

HAICOP QuantitativeQualitative

Indicator Two : Number of exhaustive analytic report on public procurement processing published per year

# 0 0 0 1 Bi annually


HAICOP Quantitative

Indicator Three : Number of Ministries that have adopted the New Quality Standards for public procurement

# 0 0 75% Bi annually



Indicator Four : Percentage of Ministries with staff certified in public procurement

% 0 0% 50% Bi annually




Intermediate Result (Component One): The procurement system is operating efficiently

Intermediate Result indicator One: Number of activities (including procurement or legal documents) implemented under the Action Plan

# 3 3 19 Bi annually


HAICOP Quantitative

Intermediate Result indicator Two: Number of hits per day to

day 850/day 850/day

1200/day

Bi annually


HAICOP Quantitative

access ONMP/HAICOP website

Intermediate Result indicator Three: Development and setting up of fully integrated PPMIS

# 0 0 1 Bi annually


HAICOP fully integrated PPMIS available

Intermediate Result (Component Two): The Capacity of public procurement officials is strengthened

Intermediate Result indicator One: Completion rate of tailored CIPS, IIA type training on purchasing for public officials

% 0% 0% 100% Bi annually



Intermediate Result indicator Two: Number of Public officials certified in procurement auditing

# 0 0 25 participants of which 10 females

Bi annually


HAICOP Quantitative – number of participants who have successfully completed the training

Intermediate Result (Component Three): Knowledge development and dissemination is done across the region

Intermediate Result indicator: Number of HAICOP officials involved in regional peer learning and experience sharing

# 0 0 10 officials of which

5 females

Bi annually


HAICOP Quantitative – number of participants who have successfully completed the training


Leading the Way Program: Developing Leadership Capacity

A. Basic Project InformationActivity Name: Leading the Way Program: Pilot project for developing leadership capacity to support Tunisia’s transition (Phase I.1 )Country Name: TUNISIA Name of Implementation Support Agency(ies): AFDBName of ISA Project Leader: Yasser Ahmad

Amine MouaffakEmail of ISA Project Leader: [email protected]

[email protected] Recipient Entity: Government - Prime Ministry Name and Email of Recipient Entity Contact:

Nejoua [email protected] Coordinator, Government of Tunisia



Total Amount Disbursed (Direct and Indirect in US$): 140,000 – this amount is currently in the process of being reimbursed back to the Bank

Steering Committee Approval Date: 1 April, 2013


Project Closing Date:30/06/2017 – the project was cancelled in 2Q2016



Enhancing Economic GovernanceInclusive Development and Job CreationCompetitiveness and Integration


Project Development Objective: Project cancelledRating for progress towards achievement of objective:

NA - cancelled

Rating for overall implementation progress: NA - cancelled

Brief Summary of Project Implementation Status

The project has suffered from repeated implementation startup delays owing mainly to changes in the Tunisian administration which meant that a continued and sustained effort to get all the elements in place for implementation was missing. The grant agreement had been signed by the African Development Bank and the Government of Tunisia and the members of the Project's Steering Committee (PSC) had been officially named.

Despite the Government’s firm resolve to turn around the project’s poor implementation the project was unable to take off. The Steering Committee of the MENA Transition Fund had even approved the extension of the closing date of the project to June 30, 2017. A first disbursement of US$140,000 had been processed in May 2015 however on further consultation the GoT decided to cancel the project and utilize the allocated amount for a new project. This cancellation request was approved by the MENA TF SC and the project’s amount was allocated to a new project, approved by the MENA TF for Tunisia, during the end of May 2016 Steering Committee meeting in Rabat.




The Bank is now in the process of getting the GoT to reimburse the US$140,000 that had been already disbursed.

Actions to be Taken Responsible Party Expected Date of

Delivery1) Reimburse the US$140,000 to the Bank by the GoT prior to

project closureGoT Immediately

2)

3)

C. Implementation Status of Components Component 1: na

Previous Rating:Unsatisfactory Current Rating: Unsatisfactory Cost (US$):

Component 2: na Previous Rating: Unsatisfactory Current Rating: Unsatisfactory Cost (US$):

Component 3 naPrevious Rating: Unsatisfactory Current Rating: Unsatisfactory Cost (US$):

Component 4: naPrevious Rating: Unsatisfactory Current Rating: Unsatisfactory Cost (US$):


(x)


(y)

Total (US$)

Approved Amount 1,475,000 1,475,000

for Direct Project Activities (a): Amount Received from Trustee (b):

1,475,000 1,475,000


140,000 140,000

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2013 0 0 02014 0 0 02015 0 140,000 140,0002016 0 -140,000 -140,0002017 0 0 0


0 125,000 125,000


Project Development Objective (PDO): The development of leadership capacity and synergies between key stakeholders will lay the foundation for a new momentum in Tunisia.


Unit of Measure

Baseline


Frequency

Data Source/

Methodology



etc.)

Jan 2014 – Dec 2014

A

Jan 2015 – Dec 2015

A

Jan 2016 – Dec 2016

F

YR 4F

YR5F

Indicator 2: the curriculum is developed

1 structure

0 1F0A

1F0A

1F Bi annually


QuantitativeQualitative (quality of the training delivered)

Indicator 3 : Number of participants successfully completing their training

1 curricula

0 1F0A

1F0A

1F Bi annually


A curricula is made available (including teaching material on the e portal)

Indicator 4: impact of national leadership

# of participants

0 35F0A

70F0A

70F Bi annually



Indicator 2: the curriculum is developed

Surveys and Independent project evaluation

0 1F0A

1F0A

1F Mid and end of the project

1. National surveys2. Independent evaluation (research team)

Independent research team

Impact assessment Research report to be published by Oxford and other institutionsMedia release


Intermediate Result (Component One): Consolidation of the program delivery consortium

Indicator 1: Number of partnership agreement negotiated

# 0 4F0A

4F0A

4F Bi annually


Memorandum of understanding signed

Indicator 2: The governance structure of the program is established

1 institutional structure

0 1F0A

1F0A

1F Bi annually


The governance structure is made available in a report

Indicator 3: Delivery arrangements are determined and available

1 institutional structure

0 4F0A

4F0A

4F Bi annually


The governance structure is made available in a report

Intermediate Result (Component Two): Design of the program architecture, development of the content and delivery platform

Indicator 1:Training needs are identified

1 detailed report

0 1F0A

1F0A

1F Bi annually


The needs are presented in a report (available on the e portal)

Indicator 2 : curriculum modules are developed

Teaching modules

0 6F0A

8F0A

8F Bi annually


The content of the teaching modules and is available on the e portal

Intermediate Result (Component Three): Pilot delivery of the program to Tier 1

Indicator 1:Number of senior officials and politicians trained

Number of people

0 35F0A

70F0A

70F Bi annually



Indicator 2: % of women participating

% of participa

0 40%F

40%F

40%F

Bi annually

Reports Project implementati

% or female participants

nts 0%A 0%A on unit in the training sessions

Indicator 3 : % of participants from central regions

% of participants

0 50%F0%A

50%F0%A

50%F

Bi annually


% or female participants in the training sessions

Indicator 4: score obtained from participants on quality

Average score

0 6F0A

7F0A

7F Bi annually


Average Rating obtained from the participants at the end of the training session (1-10 scale; 10 being the highest score)

Intermediate Result (Component four): Evaluation of the pilot project

Indicator 1: independent impact assessment methodology developed

Methodology and Data Collection Plan (Surveys)

0 1F0A

1F0A

1F Once Impact assessment methodology


Research team (Researchers, post-doctoral fellow and graduate students) will be hired to design an evaluation plan of the project including data collection plan, surveys, etc.

Indicator 2: Project impact assessment

Independent project evaluation

0 1F0A

1F0A

1F Mid and end of the program

Impact assessment


The same team as above will be responsible to carry on the assessment and produce a mid and end

of project impact assessment

Indicator 2: Capstone celebration organized

# of events

0 1F0A

1F0A

1F Bi annually


1 events


Enhancing Domestic Resource Mobilisation through Effective Tax System Design and Improved Transparency and International Cooperation

A. Basic Project Information Activity Name: Enhancing Domestic Resource Mobilization through Effective Tax System Design and Improved Transparency and International Cooperation

Country Name: The Ministry of Finance of TUNISIA (MoF)

Name of Implementation Support Agencies (ISA): AfDB, OECD

Name of ISA Project Leader: AfDB : Jacob Kolster,Regional Director M. Julien BANDIAKY, Team leader, Senior macroeconomist, OSGE.1 OECD: Andreas Schaal, Head of Sherpa Office Martine Milliet-Einbinder, Senior advisor, Centre for Tax Policy and Administration

Email of ISA Project Leader: AfDB [email protected]@afdb.orgOECD [email protected]@oecd.org

Recipient Entity: The Tunisian Ministry of Finance (MoF)

Name and Email of Recipient Entity Contacts:Madame Sihem Boughdiri Nemsia Director General of the [email protected]: +216 71 783 786M Ridah BEN HAMEDDirector General of the DGI [email protected]+21671894033 (Ph.); +21671796938 (Fax)

Transition Fund: USD 4, 401,800 (of which USD 2,943,900 AfDB as ISA)

Additional Funds Leveraged and Source(s), if any (US$): co-financing from Tunisia: 288 ,200

Total Amount Disbursed (Direct and Indirect in US$): USD 550,360 (AfDB as ISA)OECD: 942,054 (direct)OECD: 91,848 (indirect)

Steering Committee Approval Date: 5 December 2013


Project Closing Date: 30/12/2016 Request from the GoT for a no objection to the extension of the project closing date to 30/06/2018



Inclusive Development and Job CreationCompetitiveness and IntegrationInvesting in Sustainable Growth


Project Development Objective: The project aims at assisting the government of Tunisia (GoT) to mobilise domestic resources to foster sustainable economic growth and income redistribution by improving the design of taxation policies and improving transparency

439






and international cooperation.


Satisfactory


Satisfactory

Brief Summary of Project Implementation Status The implementation of the project has continued progressing well on its key components. A major

benefit from the technical assistance provided by the OECD and the Global Forum on Transparency and Exchange of Information (GFTEOI) has been the adoption in the Finance Bill for 2016, of the full lifting of bank secrecy to respond to requests for bank information received by Tunisia from foreign tax authorities on the basis of an Exchange of Information agreement. With this important change Tunisia meets the international standard on EOI concerning access to bank information. This will also allow the Tunisian tax authorities to obtain information on residents of Tunisia with foreign bank accounts and be in a better position to fight offshore tax evasion. The GFTEI has approved the Phase I Peer review report of Tunisia which looked at the legal and regulatory framework for EOI on request.

Important progress has also been made to assist Tunisia to counteract Base Erosion and Profit Shifting (BEPS) which undermines the tax system integrity and the trust of citizens. The GoT has taken an active part in the G20/OECD work on BEPS and has now expressed its interest in joining, as an Associate on an equal footing, the BEPS inclusive framework aimed at improving the coherence of international tax rules reinforce the focus on economic substance and ensure a more transparent tax environment. The Director General of taxes and a Director of the Tax legislation and studies Directorate (DGELF) will take part in the launch the inclusive framework in Kyoto on 30 June 2016-1 July 2016 together with OECD members and other Associates.

The management of the project is going smoothly. The OECD had a long established and very good relationship with its Tunisian counterparts who are closely associated to the design of proposals and capacity building activities. Two new General Directors have recently been appointed: in March Mme Sihem Boughdiri Nemsia who replaced Mme Louati at the head of the DGELF and in April Mr Ridah Ben Ahmed who replaced Mr Riadh Karoui at the head of the Tax Directorate (DGI). All support the request for the extension of the project

From the beginning of the programme, the OECD has established regular contacts with the other donors: IMF, the IFC, and the USAID mission based in Tunisia to take stock of each institution’s activities related to Tunisian fiscal and administrative reform and coordinate the activities whenever needed and avoid duplication.

Much work has been completed :

AfDB (i) From October 2014 to June 2016, AfDB funded the participation of Tunisian tax officials to meetings, multilateral events/training organized by OECD as well as the secondments of four tax officials for 3 months each at the OECD. A total number of 26 government officials have taken an active part in OECD meetings and Global Tax Fora. A training plan for the period January 2016 to June 2016 with a total cost of USD 299.710 has been approved by AfDB and executed. The estimated number of beneficiaries is 128 government officials. A Work plan for July 2016 till June 2018 has been elaborated and included in the request for the extension of the project. (ii) The consultant for the Establishment of the Exchange of Information Unit was hired. The second Expressions of Interests for the remaining consultants services (Establishment of the Tax Fraud Unit, Establishment of a risk

440

management strategy and the elaboration of the communication strategy) were unsuccessful as the individual consultants who responded to the advertisements were found unqualified by the evaluation committee established by the government. AfDB recommended the re advertisement of the positions. In addition, the government consulted OECD to find suitable candidates who can apply for these positions. At least three (3) qualified individual consultants should be shortlisted for each position.(iii) AfDB approved a reallocation request of project funds from unallocated and operating costs categories to goods category. Those funds will be used to buy equipment for the newly created units and strengthen the communication capacity of the tax directorate.

OECDMuch has been accomplished by the OECD in the first half of 2016 Component 1: Tunisia benefitted from a Phase I Pre review of its legal framework by the GFTEI and from technical assistance from the GFTEI which resulted in a legislative amendment in the Finance Bill for 2016, allowing access to bank information without limitations for exchange of information on request for tax purposes. The GFTEI completed the review of the legislative and regulatory framework of Tunisia for EOI on request and approved the Phase I Peer Review Report on 14 March 2016. Component 2: Revenue losses from BEPS are conservatively estimated at USD 100-240 billion annually, or 4-10% of global corporate income tax (CIT) revenues. Given developing countries’ greater reliance on CIT revenues, the impact of BEPS on these countries is particularly damaging. Addressing Base Erosion and Profit Shifting (BEPS): The OECD has now delivered 3 capacity building workshops based on the Action Plan with Tunisia on Transfer Pricing (TP) and BEPS capacity development (the last one in April 2016). The expected outcome of the OECD assistance is a predictable business environment for MNEs, in accordance with internationally agreed tax principles, to encourage cross border trade and investment. A 4th capacity building workshop on TP and Advance Pricing Agreements will be delivered in December 2016. Moreover assistance in the implementation of the toolkits relevant to Tunisia and designed to address BEPS issues will be provided in 2017-2018 if the project is prolonged.

Component 3: Tax policy analysis and planning: The OECD has delivered 4 models to the FAU for their daily tax policy analysis work. 1. A Corporate Effective Tax Rates Model 2. A Corporate Tax Revenue Model, 3 A Taxing Wages Model and 4. Taxing Wages Model . The OECD also developed a detailed proposal for reforming the Tunisian VAT Code and for aligning it with international standards and best practices. Furthermore Tunisia has produced statistics according to the methodology used by OECD and other countries. Having internationally comparable indicators will enable Tunisian tax policymakers to better inform their decisions, improve their ability to mobilize domestic resources to support sustainable economic growth and address inequality. It is one of the eight countries included in the first edition of Revenue Statistics in Africa published on 1st April 2016. Tunisia will also participate in the 2017 edition of Revenue Statistics in Africa

Component 4: Tax Administration Reform, Managing and Improving Tax Compliance The OECD is awaiting the establishment of new Unité Nationale d'Investigation et de Lutte Contre la Fraude et l'Evasion Fiscales (UNILEF) to provide targeted capacity building to this new Department. In the meantime five senior tax officials have benefitted from the training at the OECD Academy on criminal tax investigations. http://www.oecd.org/ctp/crime/tax-crime-academy.htm

Some activities have progressed on a somewhat slower pace as the consultants for the UNILEF, risk analysis and for the conception of the communication strategy have still not yet been selected by the GoT as the calls for services have not been satisfactory . This impacts particularly activities, 3.1, and 4.3.

Request for an extension of the closing date of the programme to 30/06/2018

Despite the above progress, there have been some difficulties in the procurement of consultant services by the GoT, which has resulted in delays regarding the delivery of technical assistance for certain activities. The total disbursement

441

http://www.oecd.org/ctp/crime/tax-crime-academy.htm

rate on AfDB executed-activities was 19% as of end May 2016.On June 14, 2016, the GoT therefore presented to the AfDB a request of no-objection for an extension of the project’s closing date for one year and half (18 months) from December 31, 2016 to June 30, 2018.An extension of the project closing date would allow the completion of the planned activities and the achievement of the project’s development objectives. The project experienced starting delays due to the signing of the grant agreement between AfDB and the GoT. The project launching took place in June 2014. In addition, a number of TA activities were not conducted due to the difficulty to find suitable consultant candidates to support the establishment of a Tax Fraud Unit (UNILEF), assist in the design of risk management strategy and for the elaboration of the communication strategy. On behalf of both co-ISAs, AfDB submitted on 17 June 2016 the above request for a no objection to the extension of the project’s closing date for consideration by the MENA TF Steering Committee. The request included a detailed implementation timeline for the period of the extension.

Actions to be Taken in the second semester of 2016 Responsible Party Date of Delivery

Attend launch of the BEPS inclusive framework Tunisia 30 June 1 July Selection of consultants for the UNILEF, for risk analysis and for the conception of the communication strategy

Tunisia Q 3

Discussion with the MoF of the proposals for VAT reform to finalise the proposed model for the reform of Tunisia’s VAT Code seminar in Tunis

OECD /Tunisia Q3

Global Forum on tax treaties in Paris OECD Tunisia September

Global Forum on Transparency and EOI Paris Tunisia October

Workshop on Bribery and money laundering awareness for tax examiners (Tunis)

OECD October date TBC

Workshop on Building a taxpayers’ education programme and sharing of experiences (TBC)

OECD November date TBC

4th Transfer pricing Workshop in Tunis on Advance Pricing Agreements

OECD 19-21 December


Component 1: Assisting with the implementation of international tax standards on tax transparency and information exchange (EOI) on request

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 628,200Sub-component 1.1: Reviewing the current framework and practices making recommendations and assisting with legislative and process change (OECD executed) As a member of the GFTEOI, http://www.oecd.org/tax/transparency/abouttheglobalforum.htm Tunisia has committed to the international standard of EOI on request. The OECD assistance has helped Tunisia to be in line with the standard but also to benefit fully from the progress made in counteracting offshore tax evasion and avoidance, enhance tax receipts, economic governance, improve the international visibility of the country and improve the trust of tax treaty partners and investors.

Status of Implementation: Tunisia benefitted from the technical assistance of the GFTEI Secretariat which resulted in a legislative amendment in the Finance Bill for 2016, allowing access to bank information without limitations for EOI on request for tax purposes. The GFTEI completed the review of the quality of the and


442

http://www.oecd.org/tax/transparency/abouttheglobalforum.htm

regulatory framework of Tunisia framework for the exchange of information and approved the Phase I Peer Review Report on 14 March 2016 which was published on http://www.oecdbookshop.org/browse.asp?pid=title-detail&lang=en&ds=Global-Forum-on-Transparency-and-Exchange-of-Information-for-Tax-Purposes-Peer-Reviews-Tunisia-2016&K=5JM5GNHXXFR3 This allows Tunisia to move on to the Phase 2 of the review which will look at the practical implementation of that framework. The ultimate goal is to help Tunisia to effectively implement the international standard .

Sub-component 1.2 Establishing an effective exchange of information unit Status of Implementation: The OECD and GFTEI have continued to provide guidance to the new EOI Unit and the Head of the EOI Unit is in the process of putting in place efficient EOI processes. The Consultant on EOI starting 1 July will assist together with the OECD the Head of the EOI Unit in designing guidelines, monitoring systems and best practices to ensure tax confidentiality of EOI.

Sub-component 1.3: Exploiting the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the Convention) (OECD executed)

Status of Implementation: The GFTEI Secretariat together with a French tax expert organized a seminar in Tunis in February 2016 to raise the awareness of Tunisian Tax Examiners from the Large Taxpayers Department and Regional tax offices about the potential of EOI to improve the tax audits of cross border transactions. Sub-component 1.4: Capacity building through staff assignment and participation at multilateral events (GoT executed) Status of Implementation: Tunisians tax officials took part in GFTEI meetings. The OECD is assisting the GoT to organise on site visits of EOI units of relevant EOI partners.

Component 2: Addressing Base Erosion and Profit Shifting (BEPS) BEPS impacts on domestic resource mobilisation in all countries and in particular in developing countries but it extends beyond revenue and undermines the credibility of the tax system in the eyes of all taxpayers. The major sources of BEPS identified by the GoT are: wasteful tax incentives, excessive or unwarranted payments to MNE affiliates, and lack of availability of quality comparability data for transfer pricing purposes. Tunisia has joined the BEPS inclusive framework which brings together all interested countries and jurisdictions as Associates on an equal footing with OECD and G20 countries in the OECD’s Committee on Fiscal Affairs to develop international standards related to BEPS and to review and monitor the implementation of the whole BEPS package.

Previous Rating : Satisfactory Current Rating: Satisfactory Cost (US$): 1,135,300

Sub-component 2.1: Reviewing Tunisia’s current laws, treaties and practices (OECD executed)

Status of Implementation: Based on a diagnostic of BEPS related risks in Tunisia the OECD has prepared and agreed an Action Plan with the GoT. The action plan was also discussed with representatives of the business community.The GoT has contributed to the BEPS project and finalisation of the BEPS reports. The OECD is preparing proposals for legislative changes aiming at addressing BEPS issues.

Sub-component 2.2: Assistance to develop and implement a strategy on Transfer Pricing Rules (OECD executed) (OECD executed) Status of Implementation: Building on the results of BEPS Transfer pricing diagnostic the OECD designed together with

443

the DGELF and DGI a 2 year Action plan on Transfer Pricing and BEPS Capacity Development. This Action Plan is in the process of being delivered. This plan includes assistance in drafting legislation and guidelines as well as setting up a Transfer pricing team and capacity building. It will assist Tunisia to collect the right amount of tax from multinational enterprises, counter cross-border profit shifting and create a predictable investment climate. The Action Plan on BEPS and TP is included in the OECD Conceptual Note: Sustaining the National Development Plan 2016-2020 provided to the GoT. Technical assistance in the implementation of the BEPS measures and tool kits will continue in 2017 if the project is extended. Tunisia will also benefit from the new OECD/UNDP Initiative Tax Inspectors Without Borders (TIWB). http://www.oecd.org/tax/taxinspectors.htm

Sub-component 2.3 Auditing multinationals (OECD executed)

Status of Implementation: As part of the BEPS TP Action Plan, the third capacity building seminar on TP and auditing MNEs was delivered in April 2016 by the OECD Secretariat and an expert from the Danish tax administration: the focus of the workshop was on the update on arm’s length principle, comparability analysis, functional analysis and transfer pricing methods; Transfer pricing documentation and country-by-country reporting; Transfer pricing risk assessment; and Safe harbours. This training strengthens Tunisia’s capacity to protect its tax base against Aggressive Tax Planning of MNEs as well as profit shifting through TP or other means, while avoiding double taxation that would be detrimental to the overall business climate. The fourth seminar will be delivered in December 2016 and focus on Advance Pricing Agreements which provide tax certainty to investors.

Sub-component 2.4: Capacity building through participation at multilateral events (GoT executed) Status of implementation: The Director General of the DGELF and TP tax experts attended the Global Forum on Transfer Pricing in March in Paris.

Component 3: Tax policy analysis and planning Developing databases and analytical capabilities and systems for tax policy analysis will ensure that policy decisions are based on full information about their likely impacts. Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,475,700 Sub-component 3.1 Establishing a Fiscal Analysis Unit (FAU) (OECD executed)Status of Implementation: As the USAID mission had already started assisting in the establishment of the FAU, the OECD developed for the FAU several models to measure the tax burden on income in Tunisia. The different models were presented and delivered to the Tax Policy Analysis Unit of the Tunisian Ministry of Finance during a workshop in Tunis from 21-23 June.. The aim of the workshop was to explain participants how they can use the models in their daily tax policy analysis work. Four models were delivered a

1. A Corporate Effective Tax Rates Model which calculates forward-looking corporate effective tax rates2. A Corporate Tax Revenue Model which allows calculating the expected revenue effects of corporate income tax changes3. A Taxing Wages Model which calculates the tax burden on labour income for different types of families with or without children at different income levels. 4. Taxing Wages Macro which allows to calculate and graphically present Taxing Wages tax burden indicators across a wide range of incomes (e.g. 50% to 250% of the average wage).

Sub-component 3.2: Developing internationally comparable revenue statistics data (OECD executed)

Status of Implementation: The OECD has assisted the Tunisian authorities and other African partners towards the publication of the first edition of Revenue Statistics in Africa http://www.oecd.org/tax/tax-policy/rising-tax-revenues-are-key-to-economic-development-in-african-countries.htm on 1st April in Addis

444

http://www.oecd.org/tax/tax-policy/rising-tax-revenues-are-key-to-economic-development-in-african-countries.htm

http://www.oecd.org/tax/tax-policy/rising-tax-revenues-are-key-to-economic-development-in-african-countries.htm

http://www.oecd.org/tax/taxinspectors.htm

Ababa. The statistics show that -reported tax revenues in Tunisia represented 31.3%.of GDP. Having internationally comparable indicators will enable Tunisian tax policymakers to better inform their decisions, improve their ability to mobilize Tunisia’s own domestic resources to support sustainable economic growth and address inequality. Tunisian officials also participated in the revenue statistics ATAF OECD AU workshop in South Africa on 28-30 June 2016 to prepare the next edition of the publication in 2017.

Sub-component 3.3: Review of indirect tax structures and assisting in implementation of necessary reforms(OECD executed)

Status of Implementation: The IMF and the OECD agreed that the OECD would focus primarily on assisting Tunisia with the legislative implementation of the VAT reform. The OECD developed a proposal for reforming the Tunisian VAT Code and for aligning it with international standards and best practices. It is being reviewed by the Tunisian Ministry of Finance. A workshop in Tunis is planned for Q3-4 2016 to discuss the proposals for reform in further detail and to enhance the experience and know-how of Tunisian tax officials concerning best practices in VAT tax policy design. The proposed model for the reform of Tunisia’s VAT Code will subsequently be finalised, in light of the feedback and suggestions received from the Tunisian Ministry of Finance and of the outcome of the workshop.

Sub-component 3.4 Consensus-Building and Communication (GoT executed)

Status of Implementation: Expertise France has provided seminars for the DGI on the strategy of Communication.

Sub-component 3.5 Capacity building through staff assignment and participation at multilateral events (GoT executed)

Status of Implementation: The Tunisian tax officials working at the OECD from September to November 2015 participated in meetings/workshops on Tax and development; Two senior tax officials took part in the Global Forum on VAT in November 2015. The Tunisian tax official seconded to the OECD from September to November to work on Revenue Statistics benefitted from training on analytics and statistics.

Component 4: Tax Administration Reform, Managing and Improving Tax Compliance The objective is to strengthen tax compliance, including risk assessment and risk management, tax audit capabilities, and the capacity of tax crime investigators to tackle illicit financial flows.

Previous Rating : Moderately Satisfactory


Cost (US$): 900.800

Sub-component 4.1: Establishing a Criminal Tax Investigation Unit (GoT/OECD executed)

Status of Implementation: The consultant to assist in the establishment of the Tax Fraud Unit: Unité Nationale d'Investigation et de Lutte Contre la Fraude et l'Evasion Fiscales (UNILEF) has still not been selected by the GoT so it was proposed to first deliver a bribery and money laundering awareness seminar for tax examiners and if the project is prolonged to then deliver training to the staff of the UNILEF focusing on detection and analysis of suspicious transactions, techniques of investigation, conducting surveillance operations and interrogation techniques. The OECD will assist in the delivery of training in newly identified topics by the GoT: the tax audit of the oil sector, the financial sector and the telecommunications sector.

Sub-component 4.2: Designing a strategy and assisting with the implementation of a risk management process (GoT/OECD executed)

445

Status of implementation: This activity is still being coordinated and discussed with the USAID mission. Further action will be discussed once the consultant to be hired to work on risk management systems is selected. Sub-component 4.3: Designing a Taxpayer Education Programme (OECD executed)

Status of Implementation: The OECD is planning to organise in Q4 2016 a workshop to discuss country best practices that will build on the findings of its publication “Building Tax Culture, compliance and citizenship: A Global Source Book on Taxpayer Education , which illustrates the innovations underway in how governments can reach out to inform their taxpayers, to strengthen tax morale and tax compliance http://www.oecd.org/fr/publications/edifier-une-culture-fiscale-du-civisme-et-de-citoyennete-9789264230163-fr.htm Sub-component 4.4 Capacity building through participation at multilateral events (GoT executed)Status of Implementation: In the spring A Tunisian tax official has attended training at the OECD Academy for Criminal Tax Investigation http://www.oecd.org/ctp/crime/tax-crime-academy.htm hosted by Italy and aimed at improving skills in the detection and investigation of financial crimes, and at recovering the proceeds of those crimes. A senior tax official took part in the Tax and Crime seminar in Ankara in March 2016 and has been selected to attend the training at the OECD Academy for Criminal Tax Investigation in September 2016 .

Component 5: Project management and monitoring (GoT executed) Previous Rating : Satisfactory

Current Rating: Satisfactory

Cost (US$): 367.600 (including 288.200 in country-co-financing)

The initial coordination team established by the government Mr Karoui the Director General of Taxes coordinator and Mrs Louati the General Director of the DGELF alternate coordinator have respectively been replaced by the new Director General of Taxes Mr Ridah Ben Ahmed and the new General Director of the DGELF Madame Sihem Boughdiri Nemsia



(x)


(y)

Total (US$)


AfDB: 2,843,900 OECD: 1,375,400 USD AfDB: 2,843,900OECD: 1,375,400 USD


AfDB: 2,843,900 OECD: 734,400 AfDB: 2,843,900OECD: 734,400


AfDB: 550.360 OECD: 942,054 AfDB: 550.360OECD: 942,054

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 AfDB: 550.360 AfDB: 1,000,000

OECD: 423,998AfDB: 1,550,360 (cumulative)OECD: 423,998

446

http://www.oecd.org/ctp/crime/tax-crime-academy.htm

http://www.oecd.org/fr/publications/edifier-une-culture-fiscale-du-civisme-et-de-citoyennete-9789264230163-fr.htm

http://www.oecd.org/fr/publications/edifier-une-culture-fiscale-du-civisme-et-de-citoyennete-9789264230163-fr.htm

F. Disbursements of Funds for Indirect Costs (US$)Disbursed ¹ Available TotalAfDB: 0OECD: 91,848 USD

AfDB: 100,000OECD: 0

AfDB: 100,000OECD: 91,848 USD

¹ While the budgeted amount of indirect costs was USD 82,500, the actual amount incurred was USD 91,848 [as per OECD Financial Regulations on VC administrative cost recovery, BC(2011)40]. Only the budgeted amount of USD 82,500 was claimed.

447









definition etc.)Jan 2014 – Dec 2014

A

Jan 2015 –

Dec 2015

A

Jan 2016 – Dec 2016

F

Indicator 1:Improved domestic revenue mobilizationTax revenue as % of GDP

Quantitative 20.8% (2012)

31.3%. n/a 21.5% Yearly Public Revenue Statistics for Africa

PCU Tax revenues increased and tax collection rates improved

Indicator 2:Improved tax transparency and international co-operation

Qualitative Bank secrecy for tax purposes

Partial lifting of bank secrecy for tax purposes

Multil. Conv. Comes into effect

Finance Bill for 2016 adopted: full lifting of bank secrecy for EOI on request

GFTEI approves Phase 1 Peer Review report on the EOI legal and regulatory framework

Once Terms of reference of the GFTEI.

PCU and Global Forum

combined Peer review of the EOI legal framework and practice in 2018 published

Indicator 3:Direct project beneficiaries of :A. EoI Unit staff B. TP team trained basicC. TP trained on business

restructuringD. TP team trained on APA

MAPs etc E. Trainers trained on TP F. FA Unit staff trained on

using ETR models G. CTI Unit staff trainedH. MoF staff participated at

multilateral tax events I. MoF staff seconded to the

OECD

Cumulative

NumberNumber Number

Number

Number

number

0

0

00

0

20A00

20A

0

55A30A30A

15A

20A

4 for 3m A

28 A/85 F

30 F

30 F

30 F

20F

2 F

Quarterly Project Monitoring and Evaluation Database

PCU Total number of beneficiaries from all components of the project combined

Indicator 4: Tax reform plan prepared and disseminated

Qualitative None n/a Yes n/a Once Project Coordination Reports

PCU Report disseminated

448


Component 1: Assisting with the implementation of international tax standards on tax transparency and information exchange

Reviewing the current framework and practices, making recommendations and assisting with legislative and process changesLegal and institutional reforms adopted

Qualitative Current framework and practices not reviewed

Yes n/a Legal and institutional reforms are adopted

Once Pre phase 1 report by GFTEI Secretariat

PCT

Exchange of Information (EOI) unit established

Qualitative EoI Unit not established

None One (1) EoI Unit established

n/a Once Project Implementation Reports

PCT

Component 2:Addressing Base Erosion and Profit Shifting

Strategy on Transfer pricing rules elaborated

Qualitative Strategy on Transfer pricing rules not elaborated

Action plan on transfer pricing

and BEPS

capacity develop

ment

One (1) Strategy on Transfer pricing rules is validated

n/a Once Project Implementation Reports

PCT

Capacity built on auditing tax affairs of multinationals

Number 0 6 60 60F Quarterly Project Monitoring and Evaluation Database

PCU

Component 3:Tax policy analysis and planning

Fiscal Analysis Unit established

Qualitative FAU not established

n/a One (1) FAU

established

n/a Once Project Implementati

on Reports

PCT

Internationally comparable revenue statistics data developed

Qualitative Statistics database not

developed

n/a One (1) Statistics database

developed

Tunisia included in

the First publication of

Revenue

Once Project Implementati

on Reports

PCT

449

Statistics

Africa

Component 4:Tax Administration Reform, Managing and Improving Tax Compliance

A risk-based approach for tax collection and effective resource mobilization developed

Quantitative Number of risk-based inspection

actions

n/a n/a 50 F Quarterly Project Implementati

on Reports

PCT

Taxpayer Education Program took place

Quantitative Number of persons trained

n/a n/a 30 persons of which: (10) Private sector, (10) public, (5) civil society and (5) academic sectors

Quarterly Project Implementati

on Reports

PCT

* Indicate ‘A’ for ‘Actual’ and ‘F’ for ‘Forecast’

450

Operationalizing Public Private Partnership in Tunisia


Activity Name: Operationalizing Public Private Partnership in Tunisia

Country Name: Tunisia Name of Implementation Support Agency(ies): AfDB, OECD

Name of ISA Project Leader: OECD: Andreas Schaal/Iza Lejarraga / Ian Hawkesworth AfDB: Thouraya Triki /Yasser Ahmad

Email of ISA Project Leader: [email protected] ; [email protected]; [email protected]; [email protected];

Recipient Entity: Office of the Prime Minister Name and Email of Recipient Entity Contact: M. Atef Majdoub ([email protected] ) & Mme Sonia Attia ([email protected] )

Total Amount Approved by the Transition Fund (US$): 2.3M (0.8M OECD-executed + 1.4M GoT executed + 0.1M indirect costs)

Additional Funds Leveraged and Source(s), if any (US$): - AfDB co-financing of 1.2M through the Middle Income Countries Trust Fund- In-kind GoT contributions of 179,000

Total Amount Disbursed (Direct and Indirect in US$): OECD: 799,400

AfDB: 136,792





Primary Pillar: Competitiveness and Integration

Secondary Pillar(s): Enhancing Economic GovernanceInclusive Development and Job CreationInvesting in Sustainable Growth


Project Development Objective: The objective of the project is to support the Government of Tunisia in operationalizing the forthcoming PPP law and implementation decrees, in a manner which will promote transparency, efficiency and effectiveness of public spending, and help the government of Tunisia in meeting its public policy objectives (economic transformation, job creation, reduction of regional disparities and closing poverty and social gaps,). The project should also help develop an effective institutional framework for PPP development, notably by building the capacity of the forthcoming PPP Unit. This should enable the rapid implementation of a number of PPP projects with the goal to improve public service delivery to Tunisians and overcome the above discussed challenges that the country is facing.

Rating for progress towards achievement of objective: Satisfactory



A Public Private Partnership law was adopted by the Assembly of the Representatives of the People (Tunisia’s national assembly) in November 2015. On 1st of June 2016, the decrees accompanying the law were adopted by a ministerial council on 31 june 2016. The PPP law and its decrees built on the recommendations and analysis provided by the project to the Tunisian authorities. During a workshop organized to celebrate the launching of the decrees and handover of oECD reports, the work of both the OECD and AfDB was highly praised and both Organisations were commended for their assistance to the Tunisian authorities in the preparation of the PPP law. The adoption of the law and more recently its decrees will facilitate the completion of the project activities. The publication on june 8th of the EOI to recruit the consortium that will be assisting the government on the launching of the 2 first pilot projects (supported by MENA TF funding) constitute the first concrete steps towards operationalization of such projects.

The implementation status of planned activities during this reporting period can be summarized as follows:

451






The analytical reports (components 1B and 2B) have been finalised (three reports). Since the analyses of the legal, institutional and budgetary frameworks were based on the September 2014 draft PPP project, the reports and the policy recommendations were revised to reflect the content of the PPP law adopted in November 2015. The reports were finalised in close collaboration with the USC (“Unité de suivi des concessions”).

The reports were launched during a high-level workshop on 3 june 2016 in Tunis (component 5B). Spearheaded by the USC, and in cooperation with the AfDB, a high level event was organised by the OECD to launch the above-mentioned reports. The decrees accompanying the law were also presented by the USC for the first time during this event, two days after their validation by the Tunisian authorities. The event featured around 50 participants from several ministries and governmental institutiuons, senior international speakers, and private sector representatives. The debates during the event were very constructive and focused on how to move forward with the implementation of the law and the operationalization of PPPs in Tunisia. The event was highly appreciated and both OECD and AfDB were commended for their assistance.

In the framework of the communication around OECD activities and building the capacity of Tunisian public officials (components 3B and 5B) the General Director of the USC and another USC staff attended the OECD 9th annual Network meeting of Senior Infrastructure and PPP Officials (1 March 2015) and the Symposium on Governance of Infrastructure (29 February 2015), both held in Paris.

On AfDB side, The project manager has been providing valuable assistance to USC since his recruitment in August 2015. Specificalle, he proved very useful to assist the USC in the recruitment process of the consortium that will be in charge of executing components 1A-2A-3A-5A. For this component, the recruitment process for the consortium was finalized and execution has started. Work has also resumed on component 4 funded by MENA after the adoption of the 5-year plan by the government. The request for expression of interest was published on June 8th.

With the finalisation and the launch of the reports, all components for which the OECD is an ISA (components 1.B, 2.B, 3.B, and 5.B) have been completed.

The USC and its new management has proven to be a valuable partner to the OECD and the AfDB, and continued communication and flexibility have been displayed by all partners on this project. The progress has been satisfactory over the last year (since project restructuring) and efforts are ongoing to provide high quality deliverables that complement each other. The adoption of the PPP law should help accelerate the pace of execution of the PPP agenda in Tunisia.




Recruitment of the consortium that will execute component 4 USC under AfDB oversight

12/31/2016




Component 1: PPP policy and institutional framework

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): OECD sub-component 1.B: USD 374,800 AfDB funded sub-component 1.A (non-Transition Fund): 500,000

Sub-component 1.A: Leading PPP policy and institutional framework (this subcomponent is funded by AfDB MIC TAF – not by the MENA TF)

452

Status of Implementation: Ongoing

The recruitment of the consortium that will be implementing these activities (i.e. institutional support, communication and capacity building) was finalized in February 2016 and a contract was signed with "SOFRECO / Nathan Associates". Actual implementation has already started since April 2016 and the first disbursement request should be submitted soon to the AfDB.

Sub-component 1.B: Advisory analytical work on: 1)PPP legal framework, 2)current institutional set up (ISA: OECD)

Status of Implementation: Complete

This sub-component has been completed. The analytical reports and recommendations on the legal and institutional frameworks in Tunisia were based on the September 2014 draft PPP project. In collaboration with the USC, the reports have been substantially reviewed in light of the adoption of the PPP law in November 2015.

Component 2: Establishing the PPP Unit

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): OECD sub-component 2.B: USD 149,920AfDB funded component 2.A (Non Transition Fund): USD 310,000

Sub-component 2.A: Lead in establishing the PPP Unit (this subcomponent is funded by AfDB MIC TAF – not by the MENA TF )


The recruitment of the consortium that will be implementing these activities (i.e. institutional support, communication and capacity building) was finalized in February 2016 and a contract was signed with "SOFRECO / Nathan Associates". Actual implementation has already started since April 2016 and the first disbursement request should be submitted soon to the AfDB..

Sub-component 2.B: Analysis of the budgetary framework (ISA: OECD)


This sub-component is completed. The analytical report and recommendations on the budgetary framework in Tunisia was based on the September 2014 draft PPP project. In collaboration with the USC, the report have been substantially reviewed in light of the adoption of the PPP law in November 2015.

Component 3: Developing Capacity and Skills Transfer

Previous Rating: Moderately satisfactory

Current Rating: Satisfactory Cost (US$): OECD sub-component 3.B: USD 149,920AfDB funded component 3A (non- Transition Fund): USD 140,000

Sub-component 3.A: Lead in developing capacity and skill transfer (this subcomponent is funded by AfDB MIC TAF – not by MENA TF)


The recruitment of the consortium that will be implementing these activities (i.e. institutional support, communication and capacity building) was finalized in February 2016 and a contract was signed with "SOFRECO / Nathan Associates". Actual implementation has already started since April 2016 and the first disbursement request should be submitted soon to the AfDB..

Sub-component 3.B: Tailored workshop & training materials on PPP implementation (ISA: OECD)

453


This sub-component has been completed. A training workshop was organised in Tunis in November 2015 following the adoption of the PPP law (see January 2016 progress report for more details about the training).

In addition, as a capacity building and policy dialogue around Tunisia’s investment policy reform efforts activity, the General Director of the USC, Mr. Atef Mahjoub, and another USC staff, Ms. Amira Benboubaker were invited to attend the OECD 9th annual Network meeting of Senior Infrastructure and PPP Officials (1 March 2015) and the Symposium on Governance of Infrastructure (29 February 2015), both held in Paris.

Component 4: Development of a PPP pipeline and preparation of pilot projects (ISA: AfDB) - Note: this subcomponent is funded by the MENA TF – not by the AfDB MIC TAF


Current Rating: Moderately satisfactory Cost (US$): GoT executed activities: USD 1,200,000


The request for expression of interest prepared by USC received AfDB non objection and was published on June 8 th. This marks the official resumption of the recruitment process of the consortium that will be executing this component after a hiatus resulting from the government’s decision to wait until finalization of the 5-year plan and getting clarity about projects that are likely to be PPP candidates.

Component 5: Consultation and communication


Current Rating: satisfactory Cost (US$): OECD sub-component 5.B: USD 74,960AfDB funded subcomponent 5.A (non Transition Fund): USD 250,000

Sub-component 5.A: Leading consultation and communication activities (this subcomponent is funded by AfDB MIC TAF)


capacity building) was finalized in February 2016 and a contract was signed with "SOFRECO / Nathan Associates". Actual implementation has already started since April 2016 and the first disbursement request should be submitted soon to the AfDB..

Sub-component 5.B: Communication around OECD activities & Tunisia’s investment policy reform efforts (ISA: OECD)


Spearheaded by the USC, and in cooperation with the AfDB, a high level launch event was organized by the OECD in cooperation with AfFB and the Presidency of the Government on 3 june 2016 to launch the three following reports:

1. Operationalising Public-Private Partnerships in Tunisia: an overview2. Operationalising Public-Private Partnerships in Tunisia: the institutional and legal framework3. Operationalising Public-Private Partnerships in Tunisia: the budgetary framework

The decrees accompanying the law were presented by the USC for the first time during this event, two days after their validation by the Tunisian authorities. The event featured around 50 participants from several ministries and governmental institutiuons, senior international speakers, and private sector representatives. The debates during the event were very constructive and focused on how to move forward with the implementation of the law and the operationalization of PPPs in Tunisia. International experts presented the experiences of European and other MENA countries. The event was appreciated and both OECD and AfDB were commended for their assistance.

454

Component 6: Program Management (ISA: AfDB)

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): GoT executed activities: USD 200,000

Status of Implementation: the project manager has been in place since August 2015 and proved extremely useful. So far, AfDB disbursed several requests see table D below. The project manager proved very useful in assisting USC in the executon of the project’s other components.

D. Commitments and Disbursements of Transition Fund Funds for Direct Project Activities


(x)


(y)

Total (US$)


AfDB: 1,400,000 OECD: 749,600 2,149,600


AfDB: 1,400,000 OECD: 664,817 2,064,817

Actual Amount Disbursed (c): AfDB: 36,792 OECD: 749,000 785,792


Year Jan-June Jul-Dec* Total by Year End

2016

2017

2018

AfDB: N/A

OECD: 0

AfDB: 200,000

AfDB: 433,208

AfDB: 30,000

AfDB: 700,000

AfDB: 30,000 USD

OECD: 0

AfDB: 900,000

AfDB: 433,208


Disbursed (US$) Available (US$) Total (US$)

OECD: 50,400

AfDB: 100,000

OECD: 0

AfDB: 100,000

OECD: 50,400

AfDB: 100,000

455

G. Results Framework and MonitoringProject Development Objective (PDO): Improvement of Public-Private Governance, Improvement of Public Service Delivery, Investment Mobilization and Job Creation






Collection


Apr 2013 – Mar 2014

A

Apr 2014 – Dec 2015

A

Apr 2014 – Dec 2016

F

Indicator one: number of policy reforms identified in view of strengthening the legal framework for PPPs

# policy reforms 0 0 1 4 12 months reports Project implementation unit, OECD & GoT counterparts

Priority reforms on the legal framework have been identified by the Tunisian government with the support of the OECD and implementation plan is developed. The policy reforms identified here include progress made on the two concessions laws (2013), the public procurement law (2014) and the draft PPP law (adopted in November 2015)

Indicator two: a co-ordination platform is established within GoT for monitoring PPP and infrastructure-related policies

Co-ordination platform

0 1 1 1 3 months Reports & dialogue with platform

OECD & GoT counterparts (platform)

Inter-ministerial taskforce set up to co-ordinate inputs to OECD policy review process; taskforce remains active after conclusion of review exercise. The taskforce is presided by the USC

Indicator three: a functional PPP Unit is in place

PPP unit 0 0 0 1 6 months reports Project implementation unit

PPP Unit will be established and adequately soon now that the PPP law was passed and executive regulation adopted. Meanwhile USC is created and functional.

Indicator four: PPPs pipeline is developed

# of PPP projects identified

0 0 5 5 6 months reports Project implementation unit

# projects identified so far as potential PPP candidates. Yet, final list will be dependent on the –year national plan.

Indicator five: PPP pilot projects are prepared

# of bids launched to select private partners

0 0 0 2 PPP Unit launches bid to select private partner on specific projects. PPP Unit receives valid proposals from the private sector. This is expected to begin in 2017. USC submitted already in the EOI the list fo the 2 projects that were identified as pilot PPPs

Indicator six: Private sector investments crowded in

Million USD 0 0 0 0 6 months Reports ; Ministry of finance


Investments mobilized through the establishment of the PPP Unit and dissemination/ communication efforts. Also expected to begin in 2017.

456

Indicator seven:Institutional PPP awareness

# of staff trained 0 30 60 60 3months Reports Project implementation unit

Number of staff trained (including within USC and across relevant ministries) during 2014 workshops to discuss OECD assessment of the legal, institutional and budgetary frameworks for PPPs in Tunisia; and during PPP training workshops in 2015 and AfDB implemented training activities

INTERMEDIATE RESULTS***

Intermediate Result (Component One): PPP policy and institutional framework

Intermediate Result indicator One (with inputs from OECD network): Implementation of PPP Unit and institutional framework

Unit in placeInstitutional framework in place

0 0 1 1 3 months Reports Project implementation unit & OECD network (including Network of Senior Budget Officials)

PPP Policy is adopted, institutional framework is agreed, including with benefit from OECD best-practices in fiscal management. Although PPP Unit is not formally in place as of June 2016 due to delay in passage of PPP law, concessions unit (USC) is in place and the overall architecture of the future PPP unit is ready.

Intermediate Result indicator two (led by OECD):

Co-ordination platform for monitoring PPP and infrastructure-related policies

Inter-ministerial taskforce set up to co-ordinate inputs to OECD policy review process.

0 1 1 1 3 months Regular communication with task-force partnering with OECD in policy review process

Government task-force established for providing responses to OECD questionnaire and reviewing drafts of analytical reports; and OECD analytical team

Timely responses to OECD questionnaire provided by inter-ministerial taskforce; active leadership & participation of taskforce at all stages of the self-assessment & review process; taskforce remains active after conclusion of review exercise.

Intermediate Result indicator three (led by OECD):

Identifying and facilitating reforms to the PPP policy framework

Implementation plan for priority reforms.

0 0 1 1 6 months All-stakeholder workshops held

in context of policy review

exercise

OECD analytical team attending implementation workshops

Priorities have been identified within suggested recommendations in 2014. In 2015 and together with the PPP training programme, a timeline and implementation plan was discussed, for elaboration in 2015.

Intermediate Result (Component Two): Setting-up the PPP Unit

Intermediate Result Business plan in 0 0 0 0 6 months Reports Project PPP Unit organization structure is defined, staff

457

indicator One (with OECD inputs): Organization structure, staffing and skill requirements

place implementation unit & OECD analytical team

skill requirements are established with reference to best-practices across OECD and non-OECD countries. Progress is made on this front with the USC, but will only really be realized once PPP Unit is in place. The cosornrtium that will be handling this component has been recruited.

Intermediate Result indicator two: PPP Unit staff recruited

Reforms proposed 0 0 2 6 months Reports Project implementation unit

PPP Unit is adequately staffed (again, will only really be verified once PPP Unit is in place). Note that USC was set up and staff recruited.

Intermediate Result indicator three: Toolkit, operating manuals and procedure defined

Financing strategy in place

0 0 1 6 months Reports Project implementation unit

Procedures are defined. Progress is beginning on this front with the USC, but will only really be realized once PPP Unit is in place. The cosornrtium that will be handling this component has been recruited.

Intermediate Result indicator four: IT system in place

Operational manual in place

0 0 0 6 months Reports Project implementation unit

IT platform is operational (will be undertaken once PPP Unit is in place). The cosornrtium that will be handling this component has been recruited.

Intermediate Result (Component Three): Capacity Building

Intermediate Result One (led by OECD):

Tailored training materials are prepared

Course-pack & PPP training modules in place

0 0.5 1 1 6 months Course-pack for training

programme

Project implementation unit & feedback from training participants

Course-pack tailored to needs of Tunisia’s PPP Unit (perhaps on a specific infrastructure sub-sector) are prepared, including case-studies. Although the training programme was postponed to early 2015, the course pack material, based on the analytical reports and other expertise, is under elaboration.

Intermediate Result indicator two (led by OECD): Training sessions are organized

#PPP unit staff # Staff at sector ministries # external participants/experts sharing country experiences

0 10 30 30 6 months Reports OECD training staff & feedback from training participants

Number of staff trained and contacts established with other PPP experts across the region/ internationally. The workshops held in 2014 and 2015, and the high-level event in june 2016, were highly useful for sharing experiences and discussing key risks and opportunities of PPPs with members of the USC and other government officials (future PPP Unit).

Intermediate Result indicator three (with inputs from OECD): transfer of

#of seminars organised

0 2 3 3 6 months Reports Project implementation unit & PPP Unit

Number of seminars organized (including to follow up on experiences gathered during PPP Training programme). Two workshops were held in 2014 (April and October) while the PPP

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experience Training Programme was was held in may 2015.

Intermediate Result (Component Four): PPP pipeline and project preparation

Intermediate Result indicator one: Project reviewed

# of projects 0 0 5 5 6 months Reports Project implementation unit

Projects reviewed by the PPP unit as potential PPP candidates

Intermediate Result indicator two: Project shortlisted


2 projects have been short listed by the USC and an EOI to recruit the consortium that will assist in their implementation has been published.

Intermediate Result indicator three: Project prepared


Project prepared by the PPP unit (EOI ongoing)

Intermediate Result indicator four: expert panel

# of panel 0 1 1 1 6 months Reports Project implementation unit

A panel of experts (legal, technical, financial, environmental, social) is established. This is already well on its way thanks to the stakeholder taskforce gathered by USC.

Intermediate Result (Component Five): Communication and consultation

Intermediate Result indicator one (with support from OECD): consultation platforms

# of Round tables / other consultation

platforms

0 4 6 7 6 months Reports Project implementation unit

High-level events, Round table & bilaterals with government, civil society and the private sector.

Intermediate Result indicator two (with OECD inputs): communication material

# of communication products

0 2 4 4 6 months Reports Project implementation unit & OECD

The cosornrtium that will be handling this component has been recruited.

Intermediate Result indicator three: web site

# of dedicated website


website developed – still pending as PPP Unit is not yet set up. The cosornrtium that will be handling this component has been recruited and work is ongoing.

Intermediate Result indicator four (with input from OECD networks): project specific road-shows & international presentations

# of roadshows# international /

regional conferences at which experience

is discussed & presented


Project roadshows to market Tunisian PPPs;International/ regional conferences used as an opportunity for GoT (PPP Unit) to present on ongoing reforms and to raise awareness on the status of the PPP pipeline, among development partners as well as the private sector. This will come at a later stage once the projects are

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technically ready.


460

Regional Affordable Housing Project: Tunisia Activities

A. Basic Project InformationActivity Name: MENA Regional Affordable Housing Project –Tunisia activitiesCountry Name: Tunisia Name of Implementation Support Agency(ies): World

Bank, Arab Monetary Fund

Name of ISA Project Leader: Fadwa Bennani (WB)

Yisr Barnieh (AMF) / Habib Attia (AMF)

Email of ISA Project Leader: [email protected], [email protected]; [email protected]

Recipient Entity: Ministry of Finance, Ministry of Equipment, Territorial and Sustainable Development, Secretariat of State for Housing, Central Bank of Tunisia

Name and Email of Recipient Entity Contact: <[email protected]>


Additional Funds Leveraged and Source(s), if any (US$):-

Total Amount Disbursed (Direct and Indirect in US$): $): 806,939


12/5/2013


1/1/2014


1/31/2017




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of the proposed project is to support the Government of Tunisia in designing reforms of programs and policies to promote access to affordable housing for the low to middle income households. Rating for progress towards achievement of objective:

Satisfactory


Brief Summary of Project Implementation Status: The prospects of achieving the development objectives for this project remain good in Tunisia. Following the completion of a set of eight diagnostic studies43 and the delivery of the new housing strategy, the project has also delivered technical assistance in three key areas: (i) review of credit linked housing subsidies and provision of recommendations to improve their effectiveness and efficiency; (ii) review of urban regulations and planning tools; and (iii) operational and regulatory tools for land development programming and financing. Over the course of the last 6 months, new technical assistance activities have been launched in the following areas: (i) definition of incentives for developer-led affordable housing production for middle and low income households; (ii) detailed rental sector review; (iii) feasibility study of credit guarantee fund for low and informal income households. Client ownership and commitment on the objectives of the reform agenda remains strong and have been confirmed under the new ‘Note d’Orientation 2016-2020’ of the Tunisian Government (GoT). The Note d’Orientation puts forward affordable housing as a key reform area within GoT’s 5-year reform program. An

43 covering assessment of the contribution of the housing sector to the economy and employment; housing supply; housing demand and affordability analysis; informal housing; owner driven-construction; urban planning and land use instruments; rental housing; finance and sector related subsidies.

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ambitious quantitative target to produce 100,000 new social housing units by 2020 has also been recently announced. Its achievement calls for an adequate policy framework and delivery mechanisms, which are supported by the project.

The project is rated “satisfactory” given the progress achieved to-date. The total disbursement is at 40%. However, implementation so far provides evidence that the project implementation period set at entry is not realistic to allow for the quality delivery of all the activities supported, in a sector as complex as housing. In addition, under the project’s programmatic approach, the sequencing of activities is key, and has led to delays in the launch of some key outputs. Finally, the interinstitutional nature of some components (involving convening services across several stakeholders) and the difficulty to mobilize adequate francophone expertise for certain highly technical topics (housing subsidy evaluations and housing credit guarantee funds reform) have also contributed to a slower than expected implementation. These challenges have been largely addressed at this stage of project implementation, with most activities now launched and commitments currently stand at over 60% of project funding. Accordingly, the ISA teams have submitted in parallel a request to extend the closing date of the Project by 17 months, from January 30, 2017 to June 30, 2018 to allow for a more adequate implementation period.



Expected Date of

DeliveryDelivery of interim report #2 related to the definition of incentives for private-sector led affordable housing production

WB in conjunction with Ministry of Housing

11/30/2016

Delivery of interim report #1 related to the rental sector review (rental sector diagnostic)

WB in conjunction with Ministry of Housing and Ministry of Finance

11/30/2016

Finalize Procurement and launch study of the institutional framework of urban land provision for housing

WB in conjunction with Ministry of Housing

9/30/2016

Launch the technical assistance in support of Implementation of medium term reforms to credit -linked government support mechanisms


09/30/2016

Delivery of interim report #1 related to partial credit guarantee fund feasibility study


11/30/2016

Signature of MoU with the regional partner university for the Wharton housing finance training

AMF in conjunction with World Bank and Wharton

11/30/2016

Finalize the data collection for the online affordable housing finance knowledge platform and resource center for the MENA region

AMF 11/30/2016

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C. Implementation Status of Components Component 1: Scaling up the Supply of Affordable Housing (WB)



Sub-component 1.1: Evaluation of the effectiveness of government programs and recommendations for reformsStatus of Implementation: Activities under this component have been delivered. A number of background studies have been completed which aimed at conducting a detailed evaluation of the successes and shortcomings of the government’s housing policy. Based on this detailed analysis, the project team supported the preparation and delivery of a new housing strategy for Tunisia together with a strategy action plan. The strategy action plan was endorsed by the Government and stakeholders, as part of a one day seminar that took place on October 5, 2015 (World Housing Day), attended by over 70 participants and which received wide national TV, written press and social media coverage. The new housing strategy is presently permanently advertised under the Ministry of Equipment and Housing’s website.

Over the course of the last 6 months, new technical assistance activities have been launched in the following areas and in continuation of the implementation of the strategy action plan under this component: (i) a study on the definition of incentives (fiscal, urban regulation and financing) for producing affordable housing; (ii) a detailed rental sector review. Delivery is ongoing for both studies is set for March 2017. Sub-component 1.2: Review of tools for land supply and recommendations of reformStatus of Implementation: A broad analysis of the supply and demand for land for housing in Tunisia has been carried out which allowed a better understanding of how access to suitable land constrains the various affordable housing production processes in Tunisia and subsequently the development of a set of strategic recommendations to alleviate the identified constraints. An additional study has been delivered to inform the Government and developers on instruments to improve profitability of residential land development operations (so called land value capture mechanisms). Finally, a study will be launched in relation to an institutional framework of urban land provision for housing, the procurement of which is ongoing, and is set to be delivered by November 2017.

On the urban regulations and procedures side, a technical assistance was provided to shorten the production cycle of urban plans (reduction of decision chains, introduce a simplified procedure of revision of urban plans and the use of digital tools for the production of maps) and to better integrate low income housing into the urban planning process (through minimal urban standards that are more suitable to low income housing production). A dissemination workshop has been organized for the delivery of the report and to discuss a timeline for endorsement of its recommendations. The Ministry of Housing has subsequently initiated some changes to the urban code which reflect some of the main outcomes of this TA. The project would also support the implementation training plan in relation to the new procedures and tools proposed by the TA. A proposal for the training plan has been prepared by the Ministry of Housing and is under discussion with the bank team. Sub-component 1.3: Feasibility study of suburbanizationStatus of Implementation: Based on the housing strategy that has been endorsed by the new government, this study does not appear in the action plan. It has been agreed by project stakeholders that this study will not be conducted as described specifically in the project proposal. That being said, several activities related to Sub-component 1.2 will look into this question.

Component 2: Expanding Access to Affordable Housing Finance (WB)

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 0.7 millionSub-component 2.1:

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Increasing access to housing finance to low income and informal income households Status of Implementation: The new housing strategy identified three strategic proposals to promote access to housing finance to low income and informal income households; the implementation of which is supported by the project: (i) the reform of credit linked-subsidy schemes (credit related public support mechanisms to low income households); (ii) exploring the potential for development of micro-credit schemes for housing; (iii) ) and defining conditions for expanding access to housing credit to creditworthy households in the informal sector through a guarantee instrument.

Reform of credit linked-subsidy schemes: The report which provides recommendations to reform credit –linked subsidies (FOPROLOS, FNAH and savings for housing scheme) has been delivered and disseminated in the context of a workshop which took place on May 30, 2016 and which was chaired by H.E. the Minister of Housing and attended by high level representatives from the Ministry of Finance, Central Bank of Tunisia, and the Prime Minister’s office (among 12 participants). The report was extremely well received. Subsequently, the team was informed that, on the basis of the short term recommendations of the report, a decree reviewing the eligibility criteria and operating mechanisms of the main housing support mechanism has been submitted for approval by the head of the Government and follow-on promulgation. A technical assistance program will also be launched in the coming weeks to support the implementation of the proposed medium term reforms of the report which relate to (i) opening the support mechanisms to all lenders (beyond the Housing bank); (ii) moving to an instrument that leverages financial sector credit (hence multiplies the impact of public support) and improves the solvency of low income households.

Opportunity study for housing micro-finance: This study has been put on hold for the time being given important limitations that are imposed by the current legal framework for the microfinance sector (very low loan amount caps for housing related loans). The study will be resumed if plans to review the microfinance law are put forward by the Government.

Feasibility study of a mortgage guarantee fund for informal income households: A first phase of this study has been completed, with an initial assessment of the scope of the informal / undocumented borrower segment, and an estimation of the number of households who could potentially be served by such guarantee fund. A second phase of this study has been launched following strong interest formulated by the Ministry of Housing and Ministry of Finance in the guarantee instrument. The study is set to be delivered in March 2017.

Sub-component 2.2: Development of long-term finance for housingStatus of Implementation: Preparatory work for this key study is being carried out through sub-component 2.1. Terms of references for this study have been completed. Implementation start is expected in September 2016.

Component 3: Affordable Housing and Housing Finance Capacity Building and Knowledge Sharing (AMF)Previous Rating: Moderately Satisfactory



Sub-component 3.1: Strengthening technical capacity in affordable housing sectorStatus of Implementation: The terms of reference of the regional housing finance training in partnership with the Wharton School together with an agenda and a financial plan were prepared. The WB-AMF team is in the process of identifying a country / university in the region to host the course. Several discussions have taken place with a number of universities in the region to confirm strategic interest in housing finance, track record, faculty strength and hosting capabilities. The team is currently pursuing final discussions with one strong regional university which appears to comply with most of these criteria. A Memorandum of Understanding has been drafted between the four institutions (AMF, World Bank, Wharton and proposed host university) and is pending finalization and validation by the four institutions. Sub-component 3.2: Affordable Housing and Housing Finance Capacity Building and Knowledge Sharing Status of Implementation: Online affordable housing finance knowledge platform and resource center for the MENA region. The existing Hofinet platform will be supported to develop and maintain a regional MENA section

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of the portal that will show comparative data on the sector, relevant studies, laws, news and will maintain a blog for regional discussions and knowledge exchange. Initial terms of reference for this activity were prepared.


(US$)

(x)


(y)

Total (US$)


AMF: 200,000WB: 1,800,000

AMF: 200,000WB: 1,800,000


AMF: 200,000WB: 1,800,000

AMF: 200,000WB: 1,800,000

Actual Amount Disbursed (c): AMF: 21,432WB: 702,237

AMF: 21,432WB: 702,237

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 AMF: 0

WB: 105,657AMF: 0

WB: 142,137AMF: 0

WB: 247,7952015 AMF: 0

WB: 297,105AMF: 21,432

WB: 51,764AMF:21,432

WB: 348,1752016 AMF: 0

WB: 105,581AMF: 44,642 WB: 274,441

AMF: 44,642 WB: 380,022

2017 AMF: 44,642 WB: 274,441

AMF: 44,642 WB: 274,441

AMF: 89,284WB: 548,882

2018 AMF: 44,642 WB: 274,441

AMF: 44,642 WB: 274,441


AMF: 2,810WB: 80,460

AMF: 27,190WB: 0

AMF: 30,000WB: 80,460

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Project Development Objective (PDO): The objective of the proposed project is to support the Government of Tunisia in designing reforms of programs and policies to promote access to affordable housing for the low to middle income households. The objective will be achieved by supporting the Government in (i) the evaluation of their existing programs for affordable housing, (ii) designing the key policies that will be catalytic and transformational in improving the supply of affordable housing and the availability of affordable housing finance, and (iii) cross-regional knowledge sharing and expertise strengthening in the area of affordable housing and housing finance.




Frequency



Collection


Jan 2014 – Dec 2014

A

Jan 2015 – Dec 2015F (A)

Jan 2016 – Jan 2017

FIndicator 1Counterparts endorse project recommendations in designing or modifying relevant housing policies and programs.

Number of recommendations endorsed by key stakeholders that feed into housing policy and program formulation.

0 0 4(A: 1)

6(A:2)

Bi-annually

Endorsement as reported by the Ministry of Public Works and Housing and the Ministry of Finance.

World Bank- New housing strategy endorsed by the Government.

- The Ministry of housing initiated changes to the urban code to simplify procedures for urban plans and introduce minimal urban standards that are more suitable to low income housing production

Indicator 2

Counterparts endorse project recommendations for improved access to affordable housing finance for the low and informal income population.

Number of recommendations endorsed by key stakeholders that feed into formulation of policy and programs for improved access to housing finance by the low income population

0 0 2(A: 1)

3(A:2)

Bi-annually

Endorsement as reported by the Ministry of Public Works and Housing, Central Bank, and the Ministry of Finance.

World Bank- The Ministry of housing initiated revisions to the decree governing the FOPROLOS (housing finance fund for low income household) following the strategy recommendations on this instrument. - Ministry of housing and Ministry of Finance have launched feasibility study for partial Credit Guarantee Program for informal and low income households as recommended by the strategy document.

Indicator 3 No. of participants in

0 0(A; 40)

20(A; 102)

30(A; 102)

Bi-annually

Training, conferences

Arab Monetary Fund

- National consultation workshop was held over

466

Improved capacity of Tunisian policy makers for formulating and implementing affordable housing and housing finance policy through the capacity building and knowledge sharing initiatives supported by the Project.

workshops or trainings

and workshops reports and beneficiary surveys.

the course of October 2014 to present and collect feedback on the findings of the evaluation of the housing sector and current government housing policy, as part of an iterative consultation process for the new housing strategy formulation. - Two participants from Tunisia attended a capacity building event on international experiences for rental sector development which was held in Rabat on May 25 & 26, 2015. - Over 60 participants from Tunisia’s public and private sector stakeholders attended a seminar on October 5, 2015 that presented and discussed the new housing strategy and its action plan (event opened by the Prime Minister and Minister of Housing, organized by the Ministry of Housing with technical support from the ISAs).

- Upcoming: Training will be provided to senior staff of the urban development directorate and the regional equipment directorates of the ministry of equipment and housing in best practice tools and instruments for quality and timely delivery of urban planning documents).

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INTERMEDIATE RESULTSIntermediate Result (Component One): Scaling-up the supply of affordable housing.Sub-component 1.1: Evaluation of the effectiveness of government programs and recommendations for reformsSub-component 1.2: Review of tools for land supply and recommendations of reform Sub-component 1.3: Feasibility study of suburbanization.Intermediate Result indicator: Market analysis of supply and demand, evaluation of effectiveness of government programs and recommendations.

Number of reports completed.

0 1(A: 1)

2(A; 3)

3(A; 3)

Bi-annually

Reports and studies produced.

World Bank Supply and demand analysis completed.

Evaluation of government housing policy completed.

New Housing strategy and related action plan delivered

Intermediate Result indicator: Technical analysis, feasibility studies and policy support for increasing supply of urban land for residential development (including the feasibility study on suburbanization).

Number of reports completed.

0 1(A: 1)

2(A: 2)

3(A: 3)

Bi-annually


World Bank Land and urban development issues study completed.

Review of urban regulations completed.

Study on instruments to improve profitability of residential land development operations completed

Intermediate Result (Component Two): Expanding access to affordable housing finance.Sub-component 2.1: Increasing access to housing finance for low and informal income households.Sub-component 2.2: Development of long-term finance for housing.Intermediate Result indicator: Feasibility report guarantee mechanism to increase access to housing finance to low income and informal income groups and development of lending standards

Number of reports completed

0 0 2(A:1,5)

2(A:1,5)

Bi-annually


World Bank Partially completed.

Study on analysis of informal income households completed. Note: Intermediate results Indicator to be modified to reflect broader work on this pillar (which also includes the review of credit-linked subsidies, and the housing microfinance opportunity study),

Intermediate Result indicator: Feasibility reports

Number of reports completed

0 0 2 2 Bi-annually


World Bank Activity launched.

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to develop long term finance and action plan to improve regulatory setting. Intermediate Result (Component Three): Affordable housing and housing finance capacity building and knowledge sharing.Sub-component 3.1: Building Technical Capacity in Affordable Housing Sector.Sub-component 3.2: MENA regional integration and knowledge sharing.Intermediate Result indicator: Workshops and trainings undertaken on affordable housing finance and policy.

# events 0 1 4(A;2)

6(A;12)

Annually Training, conference and workshop participant surveys

Arab Monetary Fund

Two participants from Tunisia attended a capacity building event on international experiences for rental sector development which was held in Rabat on May 25 & 26, 2015.

The report which provides recommendations to reform credit –linked subsidies was disseminated in the context of a workshop which took place on May 30, 2016 and which was chaired by H.E. the Minister of Housing and attended by over 10 high level representatives from the Ministry of Finance, Central Bank of Tunisia, and the Prime Minister’s office.

Wharton training to be launched Intermediate Result indicator: Content on an e-platform to consolidate housing data, information.

Percentage of progress

0 0% 50% 100% Annually Progress report Arab Monetary Fund

To be launched


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Logismed Soft Regional Project: Tunisia Activities

A. Basic Project InformationActivity Name: LOGISMED soft project – Regional project – Activities in Tunisia

Country Name: Tunisia Name of Implementation Support Agency(ies): European Investment Bank


Recipient Entity: Ministry of Transport Name and Email of Recipient Entity Contact:

Wissem Gaida Mahjoub [email protected]



EUR 3 m from the European Commission for 5 countries including Tunisia (Agreement finalized between EC and EIB in November 2013)


297,942


2/20/2013


7/31/2013


12/11/2018





Rating for progress towards achievement of objective: Moderately satisfactory




In order to implement Logismed Soft, funds have been secured from the MENA Transition Fund and the EU Commission.

In July 2014, EIB signed a service contract with the CETMO (Centre d'Études des Transports pour la Méditerranée Occidentale) for the day to day management and implementation of large parts of these activities

The Logismed Soft Cooperation Agreement (CA) between Tunisia and EIB was fully signed on 11.12.2014. A first mission by CETMO/EIB to Tunisia was organized on 6th and 7th April of 2015 with a view to launch the project and carry out a first fact finding in view of updating the training needs assessment.

Furthermore, the first Logismed Soft steering committee meeting was held under participation from 3 countries (Algeria, 470


Morocco, and Tunisia) at Hotel Africa in Tunis on September 10th, 2015 with the aim to involve all the initiative partners into the coordination and monitoring of the project. The meeting was also attended by a MENA TF representative.Work advance moderately in all the components:

The report defining the characteristics and services of the Logismed logistics platforms and also the configuration of the network has been drafted by CETMO.

EIB signed a contract with a consortium head up by GOPA in order to implement the second component, training activities, of the project. This consultant will launch the training activities funded by the EU Commission as a first wave. After the necessary period of assessment of the results of the consultant’s work and of the capacity of the beneficiaries to receive the activities, a second wave of training activities will be launched, using funding from the MENA Transition Fund.



Actions to be TakenResponsible

PartyExpected Date

of DeliveryRegional Workshop with the beneficiaries and experts to submit the report defining the characteristics and services of the Logismed logistics platforms and also the configuration of the network.

CETMO 9/19/2016

Finalization of the diagnostic study of the training offer in logistics in the country and holding the second steering committee to present it..

GOPA 10/26/2016


CETMO 10/26/2016

C. Implementation Status of Components Component 1: LOGISMED Coordination



Cost (US$): 314,340


Status of Implementation: This component was launched in April 2015 during the first mission to Tunisia. It will advance, once the concept of the Logismed logistics platforms and network (sub-component 1.2) is fully agreed by the parties. Work of the next period will focus on the screening of existing logistics platforms or projects to become candidates for inclusion in the network.Sub-component 1.2: Definition of LOGISMED platform network



EIB – in close cooperation with the Tunisian authorities and under funding from the MENA TF Transtrac project – is currently carrying out a ports and logistics sector study, which will also look at a prioritisation of alternative sites for logistics platforms and assess the feasibility of the two top-ranked sites. Once finalised this study, CETMO and the Tunisian authorities will screen all the possible existing and planned logistic platforms for their potential to be incorporated into the Logismed network.

Identification of needs of each of the logistics platforms selected.

Immediate activities for Component 1 include:

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Workshop to finalize the report defining the characteristics & services of the Logismed logistics platforms & network.

Meeting with the Tunisian logistics sector representatives to define the road map for choosing Logismed platforms.




Cost (US$): 491,660




Immediate activities for Component 2 include: Launching of the work of the training consultant:


Tunisia (August 2016)o Implementation of the training activities in Tunisia (consecutively to the end of the previous



Component 3: LOGISMED ObservatoryPrevious Rating: Moderately satisfactory


Cost (US$): 617,000


Status of Implementation: A draft of the Logismed Observatory Action Plan was prepared by CETMO in a regional approach and presented during the Kick-off mission in Tunisia. A further meeting took place, in November 2015 to agree on the final adaptations to this draft to include specific needs. Action plan agreed.Sub-component 3.2: Observe and analyze regional developments

Status of Implementation: This component was launched in spring 2015 (CA was signed in December 2014). A first proposal of thematic areas and indicators of the regional Observatory has been designed by CETMO. This work has been done taking into consideration best practices of Observatories and existing Macro-indicators to describe Logistics performance. This proposal has been shared with Tunisian Transport ministry in order to receive their comments and to include them. A second piece of work finalized is the study of statistical data production in Tunisia to be used to elaborate the indicators. The meeting mentioned above was also useful to discuss the Tunisian counterparts’ comments on the indicators and also to understand the Tunisian priorities for the short term concerning the Observatory. This meeting

44 First Logismed Soft Steering Committee Meeting soft held in September 2015 in Tunisia. Representatives from Algeria, Morocco, Tunisia and international partners of Logismed participated in this interesting meeting. Next meeting will probably be held in Jordan.

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helped CETMO and Tunisia to adopt the list of activities to implement in 2016.However, in order to define the final list of indicators of the Regional Observatory, a short term expert has been engaged to analyze and to ameliorate the pertinence of the list of indicators. The final version of the list of indicators will be proposed and agreed during the second Steering committee (October 2016). This time is being used by CETMO to prepare the structure of the Observatory (database, metadata, geographic information system, etc.) and to collect all the public statistic data interesting for the future. In parallel, the list of technical assistances to be launched in Tunisia has been agreed with its representatives.Sub-component 3.3: Promoting the emergence of national observatories of logistics and transports

Status of Implementation: This component was launched in the spring of 2015. Tunisian authorities confirmed during the Logismed kick-off meeting their interest to create a national observatory to monitor the progress of logistics development, whilst pointing out limitations of Tunisia’s human and budgetary resources dedicated to this. The setting-up of a Tunisian logistics agency to promote the sector is under study by the Tunisian authorities. The national observatory for logistics and transport monitoring (ONLT) is foreseen to be embedded in this agency. However, while we wait for the set-up of the agency, the General Directorate for Logistics and Multimodal Transport (DGLTM) of the Transport Ministry will assume the role of the observatory. The support towards the establishment of the logistics observatory is considered timely and useful. Activities related to the observatory should be reinforced in the next period.Immediate activities for Component 3 include:

To fully define the agreed list of indicators of the Regional Observatory (finalize the short term expert work).

To continue collecting/processing data to elaborate the indicators of the Logistics observatories (national & regional).

To implement short technical assistances to ameliorate the quality and quantity of logistic data produced in Tunisia.

To complete the structure & tools of the observatory to collect, process and disseminate meaningful sector statistics.


(x)


(y)

Total (US$)


0 1,423,000 1,423,000


0 1,423,000 1,423,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 63,686 63,6862015 0 48,296 48,296 2016 43,651 206,349 250,000 2017 300,000 300,000 600,000 2018 300,000 161,018 461,018


142,000 0 142,000

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To support the enhancement of platform capacities as well as the creation of a collaborative network between these platforms.


Unit of Measure

Baseline


Frequency

Data Source/

Methodology


Collection


definition etc.)

Aug 2013 – Jul 2014

A

Aug 2014 – Jul 2015

A

Aug 2015 – Jul 2016

A

Aug 2016 – Jul 2017

F

Aug 2017 – Dec 2018

F

Indicator One:

Logistics Performance Index (LPI) unit 3.2 n/a 2.5

2.5 (LPI

2016)3.5

Each 2 years

WB LPI report



"friendliness" of 155

countries

Indicator Two:

Labour force occupied by the transport and logistics sector

%5.99(May 2012)

6.0(1T

2013)

5.8(1T

2014)

5.4(1T

2016)6.15 6.30

Once per year

National statistic

institutes



logistics sector.

Indicator Three:

Tonnes and value of the intra-Mediterranean external trade

Millions of

Tones

3.5(2008)

4.5(2013

)

n/a 4,72015

4.6 5.2Once per

year

COMTRADE (United Nations)




Intermediate Result: Component I: LOGISMED coordination

474

SCI.1: Promotion of the LOGISMED projectSCI.2: Definition of the LOGISMED platform network


Unit of Measure

Baseline


Frequency

Data Source/

Methodology


Collection



A

Aug 2014 – Jul 2015

A

Aug 2015 – Jul 2016

A

Aug 2016 – Jul 2017

F

Aug 2017 – Dec 2018

FIntermediate Result indicator One:

Number of platforms that study the opportunity to be part of the LOGISMED network

# platform

s0 0 0 0 2 2

Once per year

Forms asking for

information about

procedures

Consortium leader





logistics platforms under the LOGISMED

standards


Number of platform infrastructures promoted by the national authorities

# platform

s1 0 0

2 under study

4 5Once per

year


Projects launched

Ministry of transport



offer

Intermediate Result:Component II: LOGISMED Training Activities

SCII.1: LOGISMED country Training ActivitiesSCII.2: LOGISMED platform Training Activities


Unit of Measure

Baseline


Frequency

Data Source/

Methodology


Collection


definition etc.)

Aug 2013 – Jul 2014

A

Aug 2014 – Jul 2015

A

Aug 2015 – Jul 2016

A

Aug 2016 – Jul 2017

F

Aug 2017 – Dec 2018

FIntermediate Result indicator One:Number of national logistics associations in place

# assoc. 0 0 0 0 1 1 Once per year




promotion comes from a powerful

475

sector asking for their needs. This



workingIntermediate Result indicator Two:Number of people participating in training (general public)

# persons

0 0 0 0 120 120Once per

year


sessions

Consortium leader


capacity of the project to generate sufficient

capacity in countries to

provide independently a

consolidated training offer

Intermediate Result indicator Three:Number of platform workers trained

# workers

0 0 0 0 150 250Once per

year


sessions

Consortium leader





Intermediate Result (Component Three):Component III: LOGISMED Observatory

SCIII.1: Action Plan for the LOGISMED ObservatorySCIII.2: Observe and analyze the region developments in logistic & transport SCIII.3: Promotion the emergence of national observatories of logistics & transports


Unit of Measure

Baseline


Frequency

Data Source/

Methodology


Collection


definition etc.)

Aug 2013 – Jul 2014

A

Aug 2014 – Jul 2015

A

Aug 2015 – Jul 2016

A

Aug 2016 – Jul 2017

F

Aug 2017 – Dec 2018

FIntermediate Result indicator One:Number of quality indicators in the database

# records

0 0 08

(draft)12 20

Once per year

LOGISMED database

Consortium leader

Number of quality indicators

in the database describing the

evolution of the transport and

logistics sectorIntermediate Result indicator Two:

# observ. 0 0 0 1(in

1 1 Once per year


Consortium leader


476

Number of national observatories in place or in progress to be set up

progress)

depends on the country capacity to generate the statistics and indicators to



** Indicate ‘A’ for ‘Actual’ and ‘F’ for ‘Forecast

477

Regional Integration through Trade and Transport Corridors: Tunisia Activities

A. Basic Project InformationActivity Name: Regional Integration through Trade and Transport Corridors (TRANSTRAC) – Tunisia Activities

Country Name:

Tunisia


European Investment Bank


Recipient Entity: Ministry of Transport and Ministry of Equipment


Mr. Sassi Hammami [email protected] Total Amount Approved by the Transition Fund (US$): 3,800,000.00

Additional Funds Leveraged and Source(s), if any (US$):0.00



12/5/2013


10/31/2014


12/31/2018





Project Development Objective: The objective of TRANSTRAC is to promote the reduction of trade and transport barriers along the priority trade corridors of Tunisia and in related border crossings.


Satisfactory



Following the full signature of the technical assistance (TA) Cooperation Agreement (CA) between EIB and Tunisia on 12.02.2015, the procurement and implementation of almost all components of the TRANSTRAC programme for Tunisia has started and is advancing at a good pace and with satisfactory outcomes.

Whilst key activities will be completed by the end of 2016, the original TRANSTRAC closing date, some activities are expected to last somewhat longer than that. Against that background, the ninth MENA TF SC meeting held on the 29-30 May 2016 in Morocco approved a closing date extension for TRANSTRAC. The new closing date was set to be 31/12/2018, which will also allow the countries and EIB to use residual TRANSTRAC funds, resulting from (a) savings as a consequence of competitive bidding processes and (b) partial/full cancellation of activities, which turned out to be unnecessary / inopportune for a variety of reasons. A restructuring note on how to use residual TRANSTRAC funds in Morocco, as agreed between Morocco and the EIB, will be submitted to the MENA TF separately.

478


A brief summary of the implementation status of ongoing/completed TRANSTRAC activities is given hereunder:

- Component #1 - regional activities – covering all TRANSTRAC countries (Tunisia, Jordan, Egypt, Morocco): a) Road Safety Action Programme: This activity is advancing according to schedule. The first phase was delivered and a seminar on road safety was held in Tunisia in April 2016. Further, a road safety auditor training was carried out in the week of 23rd of May 2016. Programme to be completed in September 2016. b) TA to transportation activity: Activity proposed to be restructured (cf. separate restructuring note).

- Component #2.1 East-West Strategic Corridor Study: Activity started end April 2015. Steering committee meetings were organised in June 2015 (Inception Report) and November 2015 (scenario evaluation and choice of preferred scenario). The next steering committee meeting is expected for Q3/2016 (preliminary design / APS). TA to be concluded end 2016.

- Component #2.2 Sectoral Port and Logistics study: TA contract signed in autumn 2015. Kick-off meeting (Promoter, EIB and Consultant) held in November 2015. Steering committee meetings were organised in March 2016 (inception report/market study) and May 2016 (port sector development/investment scenarios), the latter one followed in June 2016 by a high level presentation and discussion of the study results in an audience with the Minister of Transport, the Minister of Public Works, the Economic Adviser of the Prime Minister, as well as other high level representatives of the Tunisian Government. The logistics part of the study will be completed by end 2016, with final TA completion expected for early 2017.

- Component #2.3: Rail Network Extension Study: TA started October 2015. The first steering committee meeting (market/traffic study) was organised in Tunis in December 2016 and the second one (conceptual/preliminary design) was held in May 2016. TA completion is expected for October 2016.

- Component #2.4 Upgrading of two Border Crossings: A first procurement of the related TA turned out to be unsuccessful in early 2016. After retendering, a consultant is now expected to be contracted by end summer 2016. TA completion is expected for early 2017.

- Component #3 Project Management Unit: Activity proposed to be restructured (cf. separate restructuring note).

C. Implementation Status of Components Component 1: Institutional and capacity building for regional and trade framework improvement.


Cost (US$): 250,000

Sub-component 1.1: TA to Customs

Status of Implementation: This training component was cancelled in agreement with the counterpart to provide additional funds for the TA for border crossings (component 2.4).

Sub-component 1.2: TA to Transportation (regionwide component)


479

Sub-component 1.3: Preparation of Road Safety Assessment and Action Plan (regionwide component)

Status of Implementation: MENA Regional Road Safety Action Programme This activity is advancing according to schedule. The first phase was delivered and a seminar on road safety was held in Tunisia in April 2016. Further, a road safety auditor training was carried out in the week of 23rd of May 2016. Programme to be completed in September 2016.

Component 2: Preparatory studies for infrastructure improvements of the priority corridors

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 2,950,000Sub-component 2.1: East-West Strategic Corridor study

Status of Implementation: Activity started end April 2015. Steering committee meetings were organised in June 2015 (Inception Report) and November 2015 (scenario evaluation and choice of preferred scenario). The next steering committee meeting is expected for Q3/2016 (preliminary design / APS). TA to be concluded end 2016.

Sub-component 2.2: Sectoral Port and Logistics study

Status of Implementation: TA contract signed in autumn 2015. Kick-off meeting (Promoter, EIB consultant) held 12/11/2015. Steering committee meetings were organised in March 2016 (market study) and May 2016 (port sector development/investment scenarios), the latter one followed in June 2016 by a high level presentation and discussion of the study results in an audience with the Minister of Transport, the Minister of Public Works, the Economic Adviser of the Prime Minister, as well as other high level representatives of the Tunisian Government. The logistics part of the study will be completed by end 2016, with final TA completion expected for early 2017.

Sub-component 2.3: Rail Network Extension Study

Status of Implementation: Rail Network Extension Study: TA started October 2015. The first steering committee meeting (market/traffic study) was organised in Tunis in December 2016 and the second one (conceptual/preliminary design) was held in May 2016. TA completion is expected for October 2016.

Sub Component 2.4: Upgrading of Border crossings

Status of implementation:

A first procurement of the related TA turned out to be unsuccessful in early 2016. After retendering, a consultant is now expected to be contracted by end summer 2016. TA completion is expected for early 2017.

Component 3: Project preparation, Management, Coordination, Monitoring and Evaluation (PMU)


Cost (US$): 400,000

480


Activity proposed to be restructured (cf. separate restructuring note).


(US$)

(x)


(y)

Total (US$)


0 3,600,000 3,600,000


0 3,600,000 3,600,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2015 200,000 200,0002016 700,000 500,000 1,200,0002017 600,000 600,000 1,200,0002018 500,000 500,000 1000,000


200,000 0 200,000

481




Unit of Measure

Baseline


Frequency

Data Source/

Methodology



etc.)

Jan. 2016 – Dec. 2016

F

Jan. 2017 –

Dec. 2017

F

Jan. 2018 – Dec. 2018

FIndicator One:About 80 staff trained in road safety and other aspects.

# of participants

0 20 40 80 Bi-annually Reports Focal Points with EIB input


Indicator Two:Studies completed: (i) East-West Strategic Corridor study

; (ii) Sectoral Port and Logistics study; (iii) Rail Network Extension Study, (iv) Upgrading of Border crossings (v) Road safety action plan


0

0

60%

3

100%

5

100%

5

Bi-annually ReportsStudies produced

Focal Points with EIB input

Quality and number of studies completed and approved


Intermediate Result (Component One): Institutional arrangements, capacity building and regional trade frameworkSub-component Road safety assessment and action plan

Intermediate Result indicator three: Road safety assessment and action plan

Percentage progress


Study & action plan produced / approved

Intermediate Result (Component Two): Preparatory studies for infrastructure improvements of the priority corridors

482

Sub-component 2.1: East-West Strategic Corridor studySub-component 2.2: Sectoral Port and Logistics studySub-component 2.3: Rail Network Extension Study Sub-component 2.4: Upgrading of border crossings

Intermediate Result indicator One: Sub-component 2.1: East-West Strategic Corridor study




Intermediate Result indicator Two: Sub-component 2.2: Sectoral Port and Logistics study




Intermediate Result indicator Three: Sub-component 2.3: Rail Network Extension Study




Intermediate Result indicator Four: Sub-component 2.4: Upgrading of border crossings




483

Establishment of Tunisia Investment Authority

A. Basic Project InformationActivity Name: : Establishment of Tunisia Investment AuthorityCountry Name: Republic of Tunisia Name of Implementation Support Agency(ies): International Finance

Corporation, Organization for Economic Co-operation and Development

Name of ISA Project Leader: Najy Benhassine, Mohamed El-Shiaty (IFC)Andreas, Schaal, Iza Lejárraga (OECD)

Email of ISA Project Leader: [email protected] ; [email protected]@oecd.org; I [email protected]

Recipient Entity: Ministry of Development and International Cooperation

Name and Email of Recipient Entity Contact: Ms. Kalthoum Hamzaoui, General Director of Multilateral Cooperation, k [email protected]

Total Amount Approved by the Transition Fund (US$): 1,900,000 (IFC: 1,100,000; and OECD: 800,000)

Additional Funds Leveraged and Source(s), if any (US$): TBD

Total Amount Disbursed (Direct and Indirect in US$): Direct: IFC45: 344,659 USDOECD: 656,192 USDIndirect: OECD: 112,316 USD






Investing in Sustainable GrowthInclusive Development and Job CreationCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: This project aims at improving the investment environment, increasing investments and increasing the number of firms investing by reforming the institutional framework responsible for investment-related functions in Tunisia. A revised institutional framework will help improve the investment attraction of the country in general by streamlining the different functions of existing investment-related institutions and providing clear mandates and government structures. In more detail, the project will aim at:

Focusing on the development of an investment strategy to allow Tunisia to upgrade in Global Value Chains in particular in the transport and logistics sectors;

Improving public sector governance, by clearly defining roles and responsibilities of the Investment institutions and ensuring public and private sector participation in investment-related decisions;

Reforming public service delivery, through the review, simplification and reengineering of investment-related processes;

Providing institutional capacity building, through training of investment related institutions’ management and staff, exchange of experiences and knowledge (including south-south participation), study tours and other capacity building tools; and

Introducing state-of-the-art IT tools including client tracking systems and website development.Rating for progress towards achievement of objective: Moderately Satisfactory


Brief Summary of Project Implementation Status: The project has benefited from the continued high-level interest of the Tunisian authorities. It allowed to stimulate the debate regarding the investment climate in Tunisia and helped in finalizing the latest version of the code submitted to the parliament in October, 2015. Finance commission from the parliament started to study this version on June, 9. Project progress will depend from the dynamic of the discussion and the willingness of the parliament to pass the code before parlement vacation in July. It also put in motion the policy work to further integrate the economy in the GVC through the logistics and transport sector .

45 As of June 19, 2016 ; committed amounts are $30,422484





The Government of Tunisia (GoT) has been actively engaged in the project, participating in the recruitment of local experts, reviewing and providing feedback on the analytical outputs, co-organizing and securing high-level participation in relevant events, and participating in peer-review and learning experiences. The project has been implemented in a sequential manner with Components 1, 2 and 4 being implemented first, and the remaining components to be implemented next.

Component 1 (analysis of the existing institutional framework) and Component 2 (institutional design and governance) have been finalized. Building on the studies and different scenarios developed with the help of IFC experts and a local firm, a revised draft investment code and a revised institutional set-up were developed in May 2015. After a two-year delay, the Tunisian Government has finally approved the draft investment code in October 2015, which was in turn submitted to the Assembly of Representatives of the People “ARP” .The finance commission started studying the code in June, 2016 (adoption forecasted in Q3-Q4 2016).

In light of the delays in the adoption of the investment code, the steering committee meeting of the Transition Fund held in December2015 agreed to extend the project end date and to restructure some of its still ongoing components. This one year extension is meant to provide enough time to roll-out the activities linked to institutional capacity building and process/IT support provided to the newly-formed Investment Authority (Component 5 and 6).

Component 3 (Investment in transports and logistics to upgrade Tunisia in the Global Value Chains - formerly Horizontal Linkages and Consultation Platform): The objective of this component is to support the Tunisian authorities in identifying the main institutional and legal obstacles to implement effective, coherent, and well-coordinated logistics policies. The Tunisian authorities are currently revising the institutional framework in charge of the delivery of logistics policies and their implementation. In that context, The authorities are considering establishing a specialised structure that will, inter alia, be in charge of setting up four logistics areas in the country, in line with the objectives of the 2016-2020 National Development Plan. The project team met with the director of the logistics department at the Ministry of Transport on 3 june 2016 in Tunis. A workshop to present the preliminary findings and policy recommendations and to initiate an evidence-based policy dialogue should take place in October 2016, back-to-back with the MENA-OECD Initiative for Governance and Competitiveness Ministerial Meeting (3 and 4 October).

Component 4 (Sector-specific investment Strategies to upgrade Tunisia in the GVCs): The report was completed following the integration of the country in the OECD Trade in Value Added (Tiva) database in autumn 2015. The final version of the report has been submitted to the Tunisian Authorities in December 2015.

The main activities under Components 5 and 6 will start after the Parliamment approves the GOT desired institutional model mentioned in the investment code. Based on MDCI request, additional activities were anticipated under component 5 and 6, namely streamlining investment entry authorizations. To improve market access and investment entry to both local and foreign investors, we are helping the Ministry of Development and International Cooperation “MDCI” to develop a 5-year plan to streamline authorizations. Under these activities, we held three meetings with Cooperation Director and team in order to set up the objectives of the technical assistance. Request Of Expression of Interest was launched and 6 consulting firms were shortlisted. ToR for this study were also finalized and discussed with the MDCI last week of June.

The delay in adopting the investment code, and subsequently the proposed institutional framework, have an impact on some components 5 and 6 causing unexpected delay. In order to mitigate the risk of not finishing activities on time, IFC will propose complementary activities activities that have a strong impact on investment framework, and which can be conducted in the time span of project (global lead generation services, database building for local big companies in order to enhance the connection between foreign investors and local top tier companies).

For IFC to go ahead with remaining activites, it is crucial that MDCI hire the core team responsible for the set-up of the new institutional framework. Delays in hiring such team may cause delays in the implementation of remaining activities. A dialogue with MDCI for mitigating such risk is underway.


Study: Preliminary findings and policy recommendations to support the Tunisian authorities in overcoming the main institutional and legal obstacles to implement effective, coherent, and well-coordinated logistics policies.

OECD 10/30/2016

Event: workshop to present the preliminary findings and policy recommendations of the study and initiate an evidence-based policy dialogue.

OECD 10/30/2016

Support in capacity building once the institutional framework is approved by the Parliament, and once the core team of the Authority is hired

IFC 6/30/2017

C. Implementation Status of Components Component 1: Institutional Framework Analysis (IFC and OECD)

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): IFC budget: 100,000

485

Sub-component 1.1: Baseline and Benchmark Reports

Status of Implementation: CompleteComponent 1 (analysis of the existing institutional framework) has been finalized: Both the baseline and benchmark reports, which were developed with the help of a local firm and IFC experts, have been presented to the COMEX (Executive Committee) and the new Minster of Development and International Cooperation. The baseline and benchmark reports have allowed to identify the main shortcomings of Tunisia’s current institutional framework in terms of functional, sectoral and geographic coverage, and to draw best practices and lessons learned from other countries experiences that are beneficial in the Tunisian context.

Component 2: Institutional Design and Governance of Investment-related Agencies (IFC)Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): IFC budget: 450,000Sub-component 2.1: Development of Scenarios for the future institutional framework

Status of Implementation: Activities under Component 2 (Institutional Design and Governance) are completed: The team responsible for the project (the Government’s Executive Committee for the project “COMEX”, the IFC team, and the local firm hired to assist) developed multiple scenarios to improve the institutional framework, that vary in terms of effectiveness, and ease/timeframe of implementation. The different scenarios were presented to the new Minister of Development and International Cooperation, and were used as an input for the revised draft code, including the chapter on institutional set-up. The project team worked closely on the draft code until it was approved by the Government during this reporting cycle, and is now submitted to the ARP for approval. The COMEX, IFC team and the local consulting firm hired discussed in details the institutional Design and governance. The Tunisian Investment Authority will have a private-sector like status giving flexibility to hire the best talent. This was approved by the minister and will be reflected in the discussion with the parlement. In addition to the formation of the Investment Authority, the new investment code refers to a new Investment Fund that will act as a vehicle to channel State aid to investors, and restructure the different funding mechanisms currently provided by the sectorial ministries and their respective investment promotion agencies. The Tunisian Government asked IFC to expand the scope of work under Component 2, in order to provide best practices and high-level recommendations on how to set-up the new Investment Fund (the original scope covered only the Investment Authority), hence the addition in budget. In this regard, IFC team reached out to Finance & Market teams from the World Bank to bring expertise to MDCI. An expertise mission took place during the week, June 6-10, 2016. Discussions were held with different stakeholders : MDCI, Ministry of Finance, Banque de Financement des PME, Banque Tunisienne de Solidarite, Private Equity Funds, Caisse de Depot et de Consignation. First recommendations on the scope and best practices will be delivered in June, 2016.

Component 3: Investment in transports and logistics to upgrade Tunisia in the Global Value Chains (OECD)



Cost (US$): OECD budget: 234,250

Sub-component 3.1: Investment in transports and logistics to upgrade Tunisia in the Global Value Chains (OECD)

Status of Implementation: Activities under component 3 are on track with some delay. The objective of this component is to support the Tunisian authorities in identifying the main institutional and legal obstacles to implement effective, coherent, and well-coordinated logistics policies. The Tunisian authorities are in fact revising the institutional framework in charge of the delivery of logistics policies and their implementation. In that context, The authorities are considering establishing a specialised structure that will be, inter alia, in charge of setting up four logistics areas in the country, in line with the objectives of the 2016-2020 National Development Plan. The project team met with the director of the logistics department at the Ministry of Transport on 3 june 2016 in Tunis and one Tunisian external expert was hired. Another expert will be hired in the next month to examine previous international experiences how the lessons learned can be applied to the Tunisian context. A workshop to present the preliminary findings and recommendations of the study and to initiate an evidence-based policy dialogue should take place in October 2016, back-to-back with the MENA-OECD Initiative for Governance and Competitiveness Ministerial Meeting (3 and 4 October).

Component 4: Sector-specific investment Strategies to upgrade Tunisia in the GVCs (OECD)

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): OECD budget: 515,350

486

Sub-component 4.1: Analytical report on investment policies impacting Tunisia’s participation in GVCs

Status of Implementation: The report was recently completed following the integration of the country in the Trade in Value Added (Tiva) database in autumn 2015 and should be shared shortly with the Tunisian Authorities. A preliminary version was presented at a high-level OECD event held in 10-11 March 2015, which was marked by the visit of the OECD Secretary General to Tunisia. The event was attended by the Secretary of State for international cooperation, the Minister of labour and a large number of representatives from the Tunisian government and civil society.

Component 5: Institutional Capacity Building (IFC) Previous Rating: Satisfactory Current Rating: Moderately

SatisfactoryCost (US$): IFC budget: 150,000

Status of Implementation: The delay in adopting the investment code, and subsequently the creation of the Tunisia Investment Authority, have an impact this component with a risk of not finishing activities on time. During a meeting with Minister of Development and International Cooperation, project team urged the need to nominate a core team of members for the investment authority that can start benefiting from capacity building activities. This was to anticipate the delays in the investmenmt code adoption. MDCI confirmed that activities can start in September/October 2016.

Component 6: Process and IT (IFC) Previous Rating: Satisfactory Current Rating: Moderately

UnsatisfactoryCost (US$): IFC budget: 400,000

Status of Implementation: The main activities for the development of new processes or IT systems will start after the end of implementation of the first and second components’ activities, and after the parlement approves the GOT choice of institutional model. This got delayed due to the delays in the adoption of the investment code. At this stage, a first draft of the baseline report describing key procedures in the investor project life cycle has been developed, and presented to the Tunisian Government. After the extension of the end date of the project by one year, the project team wil have more time to conduct such activities. In addition to the original activities, the following will be added:

o Choose priority economic activities that are currently subject to authorization/cahier de chargeo Provide recommendations on how to eliminate / simplify the authorizations/cahiers de charge based on analysis

from investment policy, competition and trade angles.

Regarding the above mentioned new activities, and in order to improve market access and investment entry, IFC project team launched a ROEI and shortlisted 6 consutling firms.Under these activities, we held three meetings with Cooperation Director and team in order to set up the objectives of the technical assistance. ToR for this study were also finalized and will be discussed with the MDCI last week of June. The delay in adopting the investment code, and subsequently the creation of the Tunisia Investment Authority, have an impact this component with a risk of not finishing activities on time. In order to mitigate this risk we need to rethink redirect funds to other relevant activities in time span of project (Global Lead Generation Services, capacity building for the core team, database building for local big companies in order to enhance the connection between foreign investors and local top tier companies)


(x)


(y)

Total (US$)


Not applicable IFC: 1,100,000OECD:749,600

IFC: 1,100,000OECD:749,600


Not applicable IFC: 1,100,000OECD: 637,284

IFC: 1,100,000OECD: 637,284

Actual Amount Disbursed (c): Not applicable IFC46: 344,659OECD: 656,192

IFC: 344,659OECD: 656,192

46 As of June 19, 2016; Commitments amount to $30,422487

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 IFC: 450,000

OECD: 93,408IFC: 450,000

OECD: 93,4082017 IFC: 350,000

OECD: 0IFC: 350,000

OECD: 0


OECD: 50,400 OECD: 0 OECD: 50,400

488

G. Results Framework and MonitoringProject Development Objective (PDO):


Measure2011-13

A


Frequency

Data Source/

Methodology


Collection

Remarks / Comments

2014 A

2015 F

2015 A

2016 F

2017 F

2018 F

Indicator One: Increase in Foreign Direct Investments Generated - cumulative

US Dollars Million

1,289 1,061 NA NA NA 111 210 Yearly FIPA Reports MDCI Assuming passage of law / decrees in 2015, 3%, 6% and 8% increase after law passage

Indicator Two: Increase in Number of Firms Investing

Number 54 36 NA NA NA 4 8 Yearly FIPA Reports MDCI Assuming passage of law/decree in 2015

Indicator Three: Increase in FDIs generated in five priority sectors - cumulative

US Dollars Million

199 165 NA NA NA 17 32 Yearly FIPA Reports MDCI Five sectors: Textile, electric/electromechanic/metal/agri-food / tourism ; assuming same increase rate as indiscator 1


Intermediate Result (Component One): Institutional Framework Analysis

Study completed - cumulative Number Zero 1 1 1 1 1 1 Yearly IFC IFC

489

Intermediate Result (Component Two): Institutional Set-up

Number of decrees/laws approved by GoT and/or enacted by Parliament - cumulative

Number Zero Zero Zero 1 (approved by GoT)

1 2 2 Yearly Government records and/ or National Gazette

MDCI

Intermediate Result (Component Three): Investment in transports and logistics to upgrade Tunisia in the global value Chains

Study completed Number Zero Zero Zero 1 1 1 Yearly OECD OECD

Workshop organized Number Zero Zero Zero 1 1 1 Yearly OECD OECD

Number of consultations held - cumulative

Number Zero Zero Zero 2 2 2 Yearly MDCI MDCI

Number of policies and/or procedures effectively improved - cumulative

Number Zero Zero Zero 2 2 2 Yearly Government records

MDCI/Ministry of transport

Intermediate Result (Component Four): Investment Strategy for Upgrading in GVCs

Study completed Number Zero Zero Zero 1 1 1 Yearly OECD OECD

Number of training sessions / workshops / seminars / conferences - cumulative

Number Zero 4 4 1 4 Yearly OECD/MDCI OECD/MDCI

Development of policy tools / instruments

Number Zero 1 0 0 0 Yearly OECD OECD

Number of policy and institutional improvements

Number Zero Zero 1 1 2 3 Yearly Government records

MDCI

Intermediate Result (Component Five): Institutional Capacity Building

Number of training sessions / workshops / seminars / conferences - cumulative

Number Zero 3 4 3 NA 6 6 Yearly Attendance Sheets

MDCI

Number of participants in cap. building events cumulative

Number Zero 9 12 9 NA 30 30 Yearly Attendance Sheets

MDCI

490

Intermediate Result (Component Six): Process and IT Support

Number of procedures / policies eliminated or improved - cumulative

Number Zero Zero Zero Zero NA 2 4 Yearly Government records

MDCI


491

Strengthening the Employability of Youth during Tunisia’s Transition to a Green Economy

A. Basic Project InformationActivity Name: Strengthening the Employability of Youth during Tunisia’s Transition to a Green Economy

Country Name: Tunisia Name of Implementation Support Agency(ies):

OECD and IsDB


OECD: Mr Andreas Schaal; Mr. Alessandro Goglio;

IsDB: Mr. Abderrahman Beddi


[email protected] ; [email protected] / [email protected]

Recipient Entity: Ministry of Vocational Training and Employment (MVTE)

Name and Email of Recipient Entity Contact: Mr Youssef Naouar ([email protected])


4,475,000


US$ 1,750,000 from the Tunisian Bank of Solidarity (BTS).

US$ 300,000: Country Co-financing


Direct Costs:

IsDB: US$ 1,043,699OECD: 486,675

Indirect Costs:OECD: 38,325 IsDB: 85,000


7/22/2013


Expected: 9/1/2013

Actual: 10/1/2014


Initial closing date: 12/31/2016

Expected closing date: 03/31/2018



Secondary Pillar(s): Choose an item.Investing in Sustainable GrowthEnhancing Economic Governance


Project Development Objective:

The Project Development Objective is to support the Tunisian government in its endeavour to set the Tunisian economy on a path of more sustainable and inclusive growth, in particular by strengthening the employability of Tunisian young generations. This is achieved by means of two concrete deliverables:

a) The definition of a comprehensive action plan for youth. In line with the goals of the National Employment Strategy, the action plan will set out practical policy guidelines conducive to the creation of an enabling environment where Tunisian youth can realise their work aspiration through the right skills mix needed to integrate themselves into the formal labour market, while at the same time accessing more stable, more productive and better quality jobs.

b) The Project will also lay essential ground for supporting the transition of the Tunisian economy towards a wide range of “new emerging sectors”, particularly in the domain of the green economy. In this context and as a test case, a key feature of the Project will be the development of new “green jobs” opportunities.

Rating for progress towards achievement of objective: Moderately Satisfactory


492






As far as Component 1 is concerned, the project has been completed. On 7 October the OECD team working on the project travelled to Tunis to present the draft report at an informal seminar organised by the Ministry of Vocational Training and Employment (MVTE). The seminar gathered forty participants from several ministries and governmental institutions. The OECD report was extremely well received, with all participants appreciating its capacity to put the many specific policy recommendations set out within the context of a comprehensive strategic framework to raise the employability of Tunisian youth and the quality of their jobs. In the following weeks the MVTE has collected written comments from the bodies represented at the Seminar, on which basis the OECD team has finalised report. The revised report was sent to the MVTE on 16 December 2014, and any additional comments received were subsequently worked into the report. The final report was launched on the 9th of March 2015 in Tunis by the Secretary General of the OECD and the Minister of Vocational Training and Employment. Of Tunisia. The report was also presented at a number of other events across Tunisia in the days following the official launch, and received considerable media coverage.

After the preparatory period, the actual implementation of Component 2 has started by the selection of 100 young job seekers, who will benefit from the individual support through 2 paths: (i) 80 youths for professional integration to the green jobs; and (ii) 20 youths for creation of their proper business in the Green Economy. For professional integration, the junior consultants with the assistance of senior consultants are currently conducting the individualized support of the selected beneficiaries to finalize their skills assessment and career paths in green jobs. A parallel process is engaged with companies to assist them in formulating their human resources needs for their transition to the green economy.With regard to the business creation path, an ecological project consisting of the diagnosis and reduction of polluting gas emissions for vehicles was approved by the Tunisian Bank of Solidarity and the funds will be shortly released, while 12 projects are being processed for their onward submission for financing by the BTS. The capacity building for local partners has also started through some training activities conducted since February 2016 for the following stakeholders: MVTE, The Agency for Employment and Self-Employment (ANETI) and BTS.Given the current progress of the implementation of component 2, the closing date is expected to be postponed until 31/03/2018.


Finalize the procurement process for the recruitment of the selection of juniors advisors in Eco- enterprises and professional integration as well as consultants in Business Promotion and Networking

MVTE/UNOPS/IsDB July 2016

Complete the individualized support for youth under professional integration path (Phase 1)

MVTE/UNOPS Before the end of 2016

Prepare the second phase involving 240 youth for professional integration MVTE/UNOPS 2nd semester 2016

Establish 13 Cleantech companies MVTE/UNOPS/BTS December 2016

Launch the selection process of second phase for the establishment of Cleantechs companies

MVTE/UNOPS 2nd semester 2016

C. Implementation Status of Components Component 1: OECD Report on Investing in Youth Tunisia: Strengthening the Employability of Youth during Tunisia’s Transition to a Green Economy (ISA: OECD). This report provides an in-depth analysis of the obstacles to improve labour market outcomes in the formal sector for Tunisia’s youth and discusses the most promising labour market and social policies to remove them. The report also proposes viable policy strategies for promoting employment and employability among under-represented youth, such as women. Furthermore, it identifies cost-effective policy options to strengthen the vocational education and training system and to move towards effective entrepreneurship support programmes. The report also lays the ground to support Tunisia’s youth in the transition towards a green economy, which is a key priority for the country. The report is in 5 Chapters, plus an executive Summary and a self-contained Policy Toolkit Chapter (Chapter 0), which as extracted from the main Report and reproduced as a separate Brochure. The report is complete in both English and French. Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): USD 487.000Sub-component 1.1: Sub-component 1.1: Labour market analysis and policy discussion (three Chapters).


493

Sub-component 1.2: Sub-component 1.2: Discussion of the attractiveness of Vocational Education and Training (VET) in Tunisia (Chapter 4)

Status of Implementation: CompleteSub-component 1.3: Discussion of the greening of the Tunisian economy and the opportunities it provides to create jobs for youth (Chapter 5)


Component 2: DEVELOPING AND IMPLEMENTING THE GREEN JOBS PLATFORM (ISA: IsDB)This component is executed by the Ministry of Vocational Training and Employment (MTVE) with the support of UNOPS (United Nations Office for Project Services), as implementing partner. This component is the pilot to test new approaches for employability and using the green market opportunities for developing job options for qualified youth. The pilot governorate that has been selected by the Government is Bizerte based on specific criteria such as potentialities of green market, dynamic youth organizations, committed local authorities, active private sector and so forth. The component aims at improving the employability of 850 young graduates in different sectors of the green economy over four main subcomponents. The component foresees interventions that require an established management team to guide it. Provision of monitoring and backstopping will ensure outputs that will meet the quality expected. This pilot scheme will reach out to each district in the selected governorate where the MTVE has employment offices (these can range between 5 and 7 offices). The implementation progress for the last 6 months may be summarized as follows: Procurement process:

Recruitment of 4 junior advisors in professional integration and placement Recruitment of 4 junior advisors in business creation Recruitment of 1 driver for Tunis office Recruitment of 3 senior advisors in business creation Recruitment of an Eco-business senior advisor Recruitment of 4 senior advisors in professional integration and job placement Selection process for the following positions is ongoing : target date is July 31th, 2016

Eco-enterprises support Junior Advisors Integration Junior Advisors Consultant on Business Promotion Consultant on Networking

Monitoring and communication tools: Preparation of the detailed project work plan; Preparation of the resource mobilisation plan; Elaboration of reporting and communication tools; Establishment of the Regional Committee for Project Monitoring in Bizerte. It is chaired by the Regional Director of

Vocational Training and Employment and composed of key stakeholders concerned. The committee has met twice to date. A third meeting is scheduled by the end of June 2016.

Key deliverables finalized:The kickoff of the process of individual support has been successfully launched. 263 candidates participated in the Call for applications and project idea proposals. A selection process was conducted with the participation of key stakeholders and was concluded by the selection of 100 young people. The accompanying process is underway. Networking:

Meeting with some international partners intervening in the field of youth employability. A possible cooperation is expected with GIZ for technical training;

Meeting with CONECT; Partnership with the Regional Chamber of trade and Industry; Preparation of Memorandums of Understanding to formalize the cooperation with the civil society. The target is to

sign at least 10 agreements by the end of 2016.

Key Events:

494

March 21st, 2016 was the starting date of the individualized support process of 100 youth selected in 2 paths: the Integration to the green jobs and the creation of Cleantech companies. This event was chaired by the Minister of Vocational Training and Employment.

April 29th, 2016: Organization of a meeting with the civil society to agree on a roadmap for their cooperation and involvement in the project implementation.

May 24th 2016: Organization of a day dedicated especially to companies and entrepreneurs in the region of BIZERTE in the framework of the Regional Alliance for the Green Economy. The objective is to ensure greater involvement of the private sector by explaining the benefits of the project and how it will facilitate their transition to the green economy. This event brought together companies that operate in the green economy sector and those who wish to start an ecological/Green transition. During this event, the main components of the project have been presented with a focus on how to support the targeted companies for their transition to the green economy. A strategy for the involvement of these companies was discussed and some of them have proposed eco-placements for the youth trained under the project.


Current Rating: Moderately Satisfactory Cost (US$): US$ 3,850,000

Sub-component 2.1: Youth Professional Development in the field Green Jobs MarketEnrolled young unemployed graduates will benefit up to four weeks of training combining theoretical knowledge and practical hand on experience/operational know-how in the field of “green jobs”. They will be provided with the necessary support, monitoring, supervision and backstopping by local and international experts in professional integration and individual trainings before, during and after their conversion to the green economy sector. To this effect a number of tools and instruments will be established to allow the achievements foreseen: (i) Integrated Training to cover know-how, interpersonal skills, job search techniques and key knowledge concerning the green economy. (ii) The Eco Experience to develop practical skills in a green business with a growth potential. It provides an appropriate way to deal with the lack of practical experience for new graduates. The Eco-experience also seeks to strengthen employment-generating projects in the area of green economy. (iii) Coaching and mentoring by several actors (mentors, trainers, integration advisors and employment advisors) to advise, support and orient beneficiaries. (iv) Participation to conferences and debates on the employment and green market. Lecturers are practitioners as well as potential employers.

Status of Implementation: As planned, a first phase targeting 100 young job seekers was launched following the adoption of the methodology validated by the project partners based on the Swiss model for the green job platforms:

The approach consists of the launching of the selection process of beneficiaries based on an open call for interest of youth in 2 paths: (i) integration to the green jobs; or (ii) creation of their proper Business in the green Economy.

The call for applications was launched on January 20, 2016 in the websites of the Ministry of Vocational Training and Employment (MVTE), the Agency for employment and Self-Employment (ANETI), The Tunisian Bank of Solidarity (BTS) and other key institutions in the governorate of Bizerte.

As of 20 February 2016, 263 applications were received. After the selection process, 100 young people have been retained for this first phase as follows: (i) 80 youths for professional integration to the green jobs; and (ii) 20 youth for creation of their proper business in the Green Economy.

Each beneficiary is then accompanied by a junior advisor as his sole interlocutor, who will ensure the individual support.

The junior consultants with the assistance of senior consultants are currently conducting the individualized support of the selected beneficiaries to finalize their skills assessment and career paths in green jobs. A parallel process is engaged with companies to assist them in formulating their human resources needs for their transition to the green economy. This corporate relation will be strengthened by the recruitment of professional integration and job placement senior advisors.

An evaluation of the current phase of the project is underway in order to improve the support process and its efficiency. At the same time, a second phase targeting 240 young people is being prepared.

Sub-component 2.2: Green Business CreationThis sub-component aims at providing On-the-Job Training (OJT) to the enrolled group of unemployed youth graduates to create their “Cleantech companies”. Local and international experts will coach the selected entrepreneurs throughout the

495

process of business creation and start up. The ultimate objective of this subcomponent is to contribute to the establishment of an integrated Cleantech value chain (ex. in the solid waste recycling sector). A series of instruments will be made available to facilitate the launch of the selected “Cleantech projects” such as financial and technical assistance, guarantee funds and incubation to facilitate proper development, and other active measures related to the establishment of green enterprises.

Status of Implementation: 20 were selected for the individualized support process to launch their Cleantech -companies. The target is to establish around 13 companies by the end of 2016.The process consists of accompanying the selected youth in reviewing their proposed projects: business model, business plan, conducting field researches to assess the relevance of the project and then submission for financing by BTS. To date, an ecological project consisting of the diagnosis and reduction of polluting gas emissions for vehicles was approved by the Tunisian Solidarity Bank and the funds will be shortly released. 12 other projects are being processed for their onward submission for financing by the BTS. It is worth noting the support process will continue for the post-creation phase to help the concerned youth resolving any issues that may occur during the first year of the business creation. A second phase involving 40 young owners of projects will be launched in the second semester of 2016. Sub-component 2.3: Financial supportThe Project will provide financial support to youth entrepreneurs through micro finance schemes to set-up their own “Cleantech Companies”. It is expected that 50 start-ups will be established, each one will benefit from a financing support of about US$ 35.000. This subcomponent will be financed by the Tunisian Bank for Solidarity (BTS) under the coordination of the GJP Steering Committee.

Status of Implementation: An agreement has been signed on 12th November 2015 between the MVTE, BTS and UNOPS for the financing of cleantech enterprises. The purpose of the agreement is to formalize the process of funding the creation of 50 Green Businesses in accordance with the project design. To date, the BTS has approved the financing of one project while 12 other projects are under preparation for their submission to the financing of the Bank. Sub-component 2.4: Capacity development of local partnersThis subcomponent aims to build the capacities of the locally identified advisors, MTVE and BTS staff in the pilot governorate as well as the central level through training sessions and personalized curricula. Under this subcomponent, the Project will benefit from international experienced and qualified experts to ensure effective transfer of knowledge and know-how for employability, employment and integration advisors. The subcomponent will include: (i) Training of Employability Advisors; (ii) Training of Employment Advisors; (iii) Training of Integration Advisors; (iv) Capacity Building for MTVE and BTS staff.Status of Implementation: The activities of this sub-component have started on February 2016 through capacity building sessions dedicated to MVTE, ANETI and BTS advisors. The objective is to set-up a group of national professionals empowered in Green Business creation and appropriate innovative methodologies of employability enhancement in green job market.This training has been assured by senior advisors recruited under the project and consists of the following topics:

Training on the entrepreneurship skills assessment; Project design and formulation of the business creation path; Capacity building of the junior advisors in professional integration and job placement was scheduled with the

contribution of the senior advisor in professional integration;

A certified training on Prince 2 for Project Management has been planned and will be provided to 6 national stakeholders.Other capacity building actions targeting local stakeholders from public and private sectors and civil society will be identified.

D. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution (US$)47 Direct Cost for ISA- Total (US$)

47 IsDB Allocation496

Execution (US$)48


3,850,000 486,675 4,337,000


3,850,000 248,463 4,098,463

Actual Amount Disbursed (c): 1,043,699 486,675 1,530,374

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End20132014 IsDB: 21,830 IsDB: 187,310 IsDB: 209,1402015 IsDB: 0 IsDB: 500,000 IsDB: 500,0002016 IsDB: 334,559 IsDB: 765,441 IsDB: 1,100,0002017 IsDB: 700,000 IsDB: 700,000 IsDB: 1,400,0002018 IsDB: 640,860 IsDB: 640,860


OECD: 38,325 IsDB: 85,000

OECD: 0IsDB: 15,000

OECD: 38,325 IsDB: 100,000

48 OECD Allocation497

G. Results Framework and MonitoringIt is so important to mention that the actual implementation of the project’s component 2 has started on Oct 2014 (date of the first replenishment of the special account) instead of Sept 2013. In addition, the project official launching under chairman the Minister of VTE took place on March 2015 in Bizerte.

Furthermore, the long procurement process and consequently the delay in the recruitment of the required human resources (International senior advisor, Regional coordinator, National coordinator, Project Assistants, senior and junior advisers…) has negatively impacted the project implementation as planned.

For these reasons, the timeline for delivery of the indicators related to component 2 has to be revised in order to take into consideration the actual starting date of the project. Taking into account the 42 months of implementation period, the final results and the closing date need to be subsequently rescheduled to March 2018.

Project Development Objective (PDO): The Project Development Objective is to support the Tunisian government in its endeavour to set the Tunisian economy on a path of more sustainable and inclusive growth, in particular by strengthening the employability of Tunisian young generations.


Baseline


Frequency

Data Source/

Methodology



Sep 2013

– Dec

2015(A)

Jan –

Dec 201

6(F)

Jan – Dec

2017(F)

Jan – Mar

2018(F)

Indicator One: OECD report assessing the broader policy framework for investing in youth, in particular to promote the employability of youth, through better labour market, education and training policies.

Legal and institutional reforms are adopted

0 1

YearlyMVTE / Reports

OECD in cooperation with MVTE and IDB

Delivery of the OECD report.

Indicator Two: Enrolled beneficiaries are employed or have launched their own projects

Percentage 70% 0% 30% 70% Yearly MVTE GJP Steering Committee + IDB + UNOPS

Number of enrolled beneficiaries employed.

Indicator Three: Creating small and medium sized "Cleantech Companies”.

Number 50 0 20 50 Yearly MVTE GJP Steering Committee + IDB + UNOPS

Number of small and medium "Cleantech Companies” created.

Indicator Four: Direct and indirect Number 300 0 50 300 Yearly MVTE GJP Steering Number of jobs created by

498

jobs generated by the “Cleantech Companies”

Committee + IDB + UNOPS

incubators.


Intermediate Result (Component One): Comprehensive VT and Employment policy framework analysis

Intermediate Result indicator One: Co-ordination platform for monitoring VT and employment related policies

Inter-ministerial taskforce set up to co-ordinate inputs to policy review process

0 1 6 months Regular communication with task-force partnering in policy review process

Inter-ministerial taskforce led by MVTE + OECD + IDB

Preparation of OECD questionnaire. The MFPE will be in charge of providing answers to the questionnaire, possibly consulting with other experts and officials from the relevant Tunisian authorities. Collection of responses from MFPE. Kick-off seminar back-to-back with OECD mission. Reporting back seminar before finalisation of OECD report to collect comments and feedbacks from Tunisian authorities on preliminary draft. OECD to host a labour economist on secondment from the MFP for a period of six months.

Intermediate Result indicator Two: Invest in Youth: Tunisia” Report completed

Analytical report 0 1 6 months Reports OECD, MFPE and IDB teams attending two workshops (together with other experts)

OECD Report completed, published and disseminated. Publication of OECD report on policy Options for Investing in Youth will complete the mission of the OECD.

Intermediate Result (Component Two): Setting-up the Green Jobs Platform *

Intermediate Result indicator One: Organization structure, pilot identified, staffing and skill requirements, including gender focus approach,

Organization structure, pilot identified, staff skills, procedures defined, gender focus

0 1 (A)Partially

1 6 months

Workplan and Implementation set up; reports

GJP Steering Committee + IDB + UNOPS

GJP organization structure is defined; pilot identified, staff skill requirements are established including gender focus.

Intermediate Result indicator Two: youth professional preparation for the green markets’ jobs and its potential in Tunisia: approach, arrangements and material prepared

Approach including a combined set up of an integrated (academic and practical) training & eco-experience, coaching and

1 (A)Partially

1 10 months Arrangements and integrated training pack, eco experience , coaching and mentoring programme prepared

GJP Steering Committee + IDB + UNOPS& feedback from enrolled beneficiaries

Arrangements and integrated training pack are prepared, including eco- experience, coaching and mentoring programmes;

499

mentoring arrangement in place.

Intermediate Result indicator Three: Integrated Training sessions are organized as well as eco-experiences and coaching and mentoring programmes

# enrolled beneficiaries # external participants/experts sharing country experiences

0 0 325 525 850 10 months Reports

Experts &training staff & feedback from training participants

Number of beneficiaries trained, coached and mentored; contacts established with practitioners and other experts and network including at the international level

Intermediate Result indicator Four: Cleantech companies are created and established including its related technical and financial instruments

# of companies

0 0 20 50 10 months

MVTE statistics on creation of start-ups accompanied by the GJP.


Technical and financial instruments established to facilitate Projects launched and established in the framework of the Green Jobs Platform

Intermediate Result indicator Five: Direct and Indirect Jobs are generated

# of jobs

0 0 50 300 10 months

MVTE statistics, Mission report of monitoring and evaluation and periodic reports to the Steering Committee.


Number of direct and indirect jobs generated by the Cleantech companies + incubators

Intermediate Result indicator Six: Capacity Development provided for selected MVTE staff and qualified youth in the pilot governorate

#of staff in training, internships and exchange programme

0 0 30 50 6 months ReportsGJP Steering Committee

Number of staff and youth benefiting from training programs, including internships and exchange programmes with partner countries.


500

Tunisian Energy Reform Plan (TUNEREP)

A. Basic Project InformationActivity Name: Tunisian Energy Reform Plan (TUNEREP)

Country Name: Tunisia Name of Implementation Support Agency(ies): OFID


Mr. Fuad Albassam


[email protected]

Recipient Entity:

Ministry of Energy and Mines


Mr Ridha Bouzouada – Director General of Energy

[email protected]


US$ 3,836,000


N/A


US$ 825,000


6/7/2013


8/1/2013


12/31/2016



Secondary Pillar(s): Enhancing Economic GovernanceCompetitiveness and IntegrationInclusive Development and Job Creation


Project Development Objective: To align the institutional and investment plans of the operational and central entities of the sector with the emerging policy framework of the government through: (i) limiting costly energy dependence by way of demand management and increase of domestic production of all sources of primary energy; and (ii) ensuring that the country realizes its renewable energy potential and contributes to the development of the regional market and benefit from its strategic geographic position.Rating for progress towards achievement of objective:



Brief Summary of Project Implementation Status: The terms of reference for the recruitment of the individual consultants in charge of providing the technical assistance required under the various project’s components still need to be validated by the project’s steering committee. The long delays encountered in the process were mainly due to the retirement of the Project Coordinator and the appointment of a new Minister at the helm of a newly created structure (dedicated Ministry of Energy and Mines). The new Project Implementation Unit has been finally set-up on 3 May 2016 with the appointment of the Director-General of the ANME as the new Project Coordinator. The recruitment of the Consultant in charge of quality assurance and coordination has been delayed for the same reasons stated above. The project’s steering committee is now due to meet beginning of July to validate the respective ToR in order to

501



enable the launch of pending tenders.Actions to be Taken Responsible Party Expected Date

of DeliveryLaunch tender for the recruitment of the consultant in charge of quality assurance and coordination

Transition Country 7/15/2016

Launch tender for the recruitment of a consortium of consultants Transition Country 7/15/2016

C. Implementation Status of Components Component 1: Development Plans and SWOT Analyses Elaboration / confirmation of investment and financing plans for the years 2014 -2018, and analysis of the strengths and weaknesses of the operating entities in the context of a changing business environment, and validation through technical assistance.



Cost (US$): 545,000

Sub-component 1.1: Support to ETAP through (i) the elaboration of a development plan and SWOT analysis: and (ii) recruitment of consultants for high-level technical assistance

Status of Implementation: ToRs for the recruitment of consultants under preparationSub-component 1.2: Support to STEG through: (i) the updating of an existing development plan and SWOT analysis; and (ii) recruitment of consultants for high-level technical assistance

Status of Implementation: ToRs for the recruitment of consultants under preparationSub-component 1.3: Support to ANME through: (i) the elaboration of a development plan and SWOT analysis; and (ii) recruitment of consultants for high-level technical assistance

Status of Implementation: ToRs for the recruitment of consultants under preparationSub-component 1.4: Support to STIR through: (i) the elaboration of a development plan and SWOT analysis; and (ii) recruitment of consultants for high-level technical assistanceStatus of Implementation: ToRs for the recruitment of consultants under preparationSub-component 1.5: Support to SNDP through: (i) the elaboration of a development plan and SWOT analysis; and (ii) recruitment of consultants for high-level technical assistanceStatus of Implementation: ToRs for the recruitment of consultants under preparationSub-component 1.6: Support to DGE through: (i) a study on the reorganization of the DGE in response to a new energy context; and (ii) recruitment of consultants for high-level technical assistanceStatus of Implementation: ToRs for the recruitment of consultants under preparation

Component 2: Energy Monitoring and Strategic Surveillance System Strengthening - DGEPrevious Rating: Moderately Satisfactory

Current Rating: Unsatisfactory Cost (US$): 243,000

Sub-component 2.1: Enhancement of the Energy Information System (EIS)

Status of Implementation: ToRs for the recruitment of consultants under preparation

Component 3: Energy Efficiency Enhancement - ANMEPrevious Rating: Moderately Satisfactory


Sub-component 3.1: Setting-up of an Energy Efficiency Monitoring, Reporting and Evaluation System (MERS)

Status of Implementation: ToRs for the recruitment of consultants under preparationSub-component 3.2: Study on the Integration of the Social and Regional Dimensions into the Energy Efficiency Strategy

502


Component 4: Electricity Sector Support - STEGPrevious Rating: Moderately Satisfactory


Sub-component 4.1: Study on the Security of Mid- to Long-term Natural Gas Supply

Status of Implementation: ToRs for the recruitment of consultants under preparationSub-component 4.2: Review of Household Consumption Patterns (including air conditioning), and Review of Load Curves


Component 5: ETAP’s Organizational Strengthening - ETAPPrevious Rating: Moderately Satisfactory


Sub-component 5.1: Pre-Feasibility Study on the Enhancement of ETAP’s Operational Procedures


Component 6: Oil Products Supply Strategy - STIRPrevious Rating: Moderately Satisfactory


Sub-component 6.1: Strategic Study on the Production and Supply of Oil Products by 2030


Component 7: Oil Products Distribution Strategy - SNDP Previous Rating: Moderately Satisfactory


Sub-component 7.1: Strategic Study on the Oil Products’ Distribution Sector

Status of Implementation: ToRs for the recruitment of consultants under preparationSub-component 7.2: Strategic Study on the Positioning of SNDP by 2030


Component 8: Project Coordination and Quality ControlPrevious Rating: Moderately Satisfactory


Status of Implementation: Project Implementation and Coordination Unit (PMCU) formally set-up. Operations manual drafted. Revised ToRs for the recruitment of the consultant (quality assurance and coordination) finalized and tender to be re-launched


(US$)

(x)


(y)

Total (US$)

Approved Amount for Direct 3,488,000 0 3,488,000

503

Project Activities (a):


825,000 0 825,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2013 0 0 02014 0 0 02015 0 500,000 500,0002016 0 1,155,000 1,155,0002017 945,000 888,000 1,833,00020182019


75,000 273,000 348,000

504


Project Development Objective (PDO): To align the institutional and investment plans of the operational and central entities of the sector with the emerging policy framework of the government through: (i) limiting costly energy dependence by way of demand management and increase of domestic production of all sources of primary energy; and (ii) ensuring that the country realizes its renewable energy potential and contributes to the development of the regional market and benefit from its strategic geographic position.


MeasureBaseline


Frequency




definition etc.)

2014 2015

Jun 2016 – Dec 2016

F

YR 4F

YR5F

Indicator One:SWOT analyses and institutional and operational development plans

SWOT Reports &Dev.Plans

None Draft SWOT Report& Plans

Validated SWOT Report& Draft Plans discussed

Validated Dev. Plans

Quarterly Operating Entities/PMCU

Operating Entities/PMCU

Indicator Two:Energy Monitoring

Report None Data sourcing & analysis

EIS validated & tested

EIS operational

Quarterly Operating Entities /PMCU

DGE

Indicator Three:Energy Efficiency

Report None Household energysurvey(pilot)

MERS outline discus

Household energy survey(generalized)MERSvalidated &

Action Plan finalized

MERS operational

Quarterly STEG ANME

ANME

505

sed testedIndicator Four: Oil Supply & Distribution

Study None Draft studies

Validated studies

Work programs & implementation plans

Quarterly ETAPSTIRSNDP

ETAPSTIRSNDP

INTERMEDIATE RESULTS49

Intermediate Result (Component One):

Intermediate Result indicator One:Intermediate Result indicator Two:Intermediate Result (Component Two):

Intermediate Result indicator One:Intermediate Result indicator Two:Intermediate Result (Component Three):

Intermediate Result indicator One:Intermediate Result indicator Two:


49 In view of the nature of the work (essentially studies and plans ) Intermediate results are outlined as stages under’’ cumulative target values’’

506

Tunisia Social Protection Reform Support Project

A. Basic Project InformationActivity Name: Tunisia Social Protection Reforms Support Project

Country Name: Tunisia Name of Implementation Support Agency(ies): Ministry of Finance

Name of ISA Project Leader: Carine Clert Email of ISA Project Leader: [email protected]

Recipient Entity: Ministry of Economy and Finance Name and Email of Recipient Entity Contact: M. Kais Rziga [email protected]





5/15/2013


11/1/2013


6/30/2017



Secondary Pillar(s): Investing in Sustainable GrowthCompetitiveness and IntegrationChoose an item.


Project Development Objective: The project development objective is to strengthen institutional capacity to design social protection reforms and improve targeting of safety net programs.




Brief Summary of Project Implementation Status: This project aims to strengthen institutional capacity of Government and stakeholders to design social protection reforms and improve the targeting of social safety nets programs, through 3 components: (i) Subsidy and Safety Net reform Support; (ii) Strengthening Social Security System Analysis and Planning; and (iii) project management and monitoring. The Project is implemented by an Implementation Unit (Unite de Gestion du Projet- UGP) located in the Ministry of Finance (MOF), with the Ministry of Social Affairs (MAS) as main execution agency. Oversight is provided by a high-level Interministerial Steering Committee (COPIL) headed by a representative from the Government President’s office. The project became formally effective November 2013, but actual implementation only kicked off towards the end of 2014, which stems mostly from Government reshuffles and subsequent lack of knowledge and/or ownership of the project. This transition was the initial cause for implementation and disbursement delays.

Since the last Progress report of January 2016, project implementation has improved substantially. The project has benefitted from close supervision and a lengthy 6 weeks mid-term review that completed at the end of March 2016. The objective of the Mid-Term-Review (MDTR) was to further enhance client’s ownership both at the high and technical levels, ensuring the full involvement of the Head of the Steering Committee-Najoua Khraief, its members and other stakeholders. This resulted in (i) a shared understanding of disbursement bottlenecks and way forward; (ii) enhanced capacity building of counterparts on monitoring and evaluation, procurement, financial management, disbursements; (iii) and increased trust and fluidity in the exchange of

507


information. Progress is reflected at three main levels:

1. Increased Disbursements. Disbursement has increased from USD 626,148.41 (last January) to USD 833,262.32 by early July 2016 since the last report. The disbursed amount should be in fact about 1 million but the signature of latest June withdrawal application was delayed in the Central Bank. Additional disbursements were delayed due to a country-level systemic bottleneck that emerged with regard to Signature authorization for withdrawal and direct payments. This has been solved only recently and it should allow direct payments and thus accelerate disbursements. Coming back to the Project, the PIU has recently signed four important contracts that amount to a total of about 1,1 million US$. This leads the team to expect a disbursement rate of about 40 percent by November if no unforeseen bottlenecks emerge.

2. Capacity Enhancement at the PIU and enhanced fiduciary ratings. With the recruitment of a dedicated procurement staff since October 2015, the PIU benefitted considerably with regard to procurement, notable improvements took place. Among the capacity enhancement was the staff training at the international procurement training in Turin in March, 2016. The Project Procurement Plan (PPM) was revised and validated to full satisfaction. With regard to financial management, the IFR for 2nd semester 2015 was submitted on time and acceptable to the bank and the first audit had an unqualified opinion with no major deficiencies in internal controls. The client assigned a fully dedicated FM specialist who benefitted from training by the Bank team. On these grounds, fiduciary ratings were upgraded from Marginally Satisfactory to Satisfactory for both procurement and Financial Management. Finally, the MDTR included an exercise of joint revision of the operational manual, and improved rules and procedures are de facto operating.

3. Agreement on Project Restructuring. More substantively, the Government and the Bank team have agreed on the need to restructure the project to align it better with Government priorities as reflected in the latest version of the Five year Plan and the National Program on major reforms (restructuring mission took place the week of June 20th,2016). Redesigned component 1 would shift away from the ambitious subsidy reform activities to focus spending on the modernization of the social safety net system: updating of the SSN beneficiary registry through a field survey; development of a targeting tool and of an integrated management information system. Redesigned component 2 will focus on interconnectivity between contributory and non-contributory social protection, which will help implement the common social identifier. Finally, component 3 will go beyond implementation support to include cross-cutting elements of communication and civic engagement (complaints and redress mechanisms)- key elements of the new social contract. All of these elements will help build key building blocks of a more effective and better targeted social protection system, which is consistent with the Tunisia CPF (social inclusion pillar 3) and the MENA strategy. There is already consensus on the scope and indicators and the restructuring implications have now been shared with Committee Head. The reception by the Bank of the Government’s Restructuring Request is imminent and may have been only delayed by the difficult political climate since last June.

While recognizing implementation improvements, the Country Management Unit (CMU) has asked to downgrade the PDO from moderately Satisfactory to Moderately unsatisfactory The PDO remains broad enough (strengthening capacity for social protection reforms) and is likely be achieved in view of these recent improvements- which may require an extension in duration time. However, this promising prospect is not reflected yet in the results framework since (i) restructuring is not complete with a new matrix of indicators; and (ii) disbursements remain modest. As agreed with the Management, the PDO rating would be upgraded in November 2016 subject to the following: (i) completion of the restructuring process; (ii); Revised matrix of indicators partially filled; and (iii) signature of 3 contracts that were just awarded non objection for a total amount of 1, 125 Million USD (this action was already completed in June after the May Implementation Supervision Report).

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Next steps. As soon as a formal request for project restructuring is received, a dedicated team will begin work on the restructuring paper (with a level 2 since the PDO will remain relevant). Progress to date for each component are highlighted below although these components still reflect some of the old structure and some activities are outdated hence the importance of restructuring..



Expected Date of

DeliverySubmit Letter of Request for Project Restructuring Government of

Tunisia. Ministry of Cooperation and Development through Presidency of Government

July 31th, 2016

Submit restructuring paper for Bank Management Task team subject to above action

September 15th, 2016

Country Management Unit with Fiduciary Teams to continue monitoring improvemenst in country level disbursement procedures and processes

Bank Iterative

C. Implementation Status of Components Component 1: Subsidy and Safety Net Reform Support: support to design of fuel and food subsidy reform strategy and to improving targeting of social safety net programs.



Cost (US$): 3.9M

Sub-component 1.1: Technical Assistance to Inter-ministerial Working Group (IWG).

Status of Implementation: This subcomponent focuses on strengthening capacity for subsidy reform. The project so far financed the hiring of three individual consultants to assist the interdepartmental working groups with: (i) the development of a targeting model (2 consultants); (ii) the impact assessment of the various scenarios for reducing energy subsidies, which have been completed. The reports of Phase 1 have been presented and accepted by the respective coordinators of each group. Since the last report, Progress was seen in information sharing and mutual trust building as the World Bank has now received reports for these tasks. Indicators wil be modified however in the new restructuring framework as the Government confirmed no indication of subsidy reform in the short term. In the same vein, the initially planned activity of “developing an operational guide for a compensatory program for subsidy reform” will be eliminated under the new restructured project.Sub-component 1.2: Unified Database and Targeting Support

Status of Implementation:Under the new agreed restructuring this subcomponent would aim at “improving knowledge of Social Safety Nets (SSN) beneficiaries; and the related targeting and information management system” which could be summarized as support to the modernization of the Government’s social assistance system. This subcomponent would focus exclusively on non contributory social protection and move activity on the Common Social Unique Identifier to a component 2 as per summary of the restructuring above.This is the most advanced subcomponent

509

and tangible progress has continued in the last months:

An application for a common Social unique identifier has been developed: The TMI company has been recruited to develop the application of a unique identifier at the level of the Center for Economic and Social research (CRES). The developments are completed and the application is currently being tested. The testing period started in October 2015 and should last until April 2016.

The development of an integrated Social Management Information System (GIS) for social safety nets is progressing. The social survey that will update the registry of poor families under the safety net flagship program of Needy Families (Familles Necessiteuses) has taken time to take off given sensitivity and stakeholders’ concerns but should be completed by March 2017. At least 500,000 of 900,000 taregted hosueholds would be expected to be surveyed by that date. The Bank has provided intensive support and additional consultancy from statistician expert to help ensure quality and credibility. The questionnaire was revised completed, training of concerned staff is under way, the bidding process for the survey Tablets that will be used by social workers was completed and tablets are operating with key survey modules. The number of registered households (a prerequisite for the on-site visit of social workers who will apply the survey with newly boughts tablets) has significantly increased. 212 000 households (26% of current SSN beneficiaries) were registered by mid June 2016 (versus 3% only in March 2016). Among these households, 43% belong to the SSN program PNAFN and 37,000 households could be potentially eligible subject to the survey and application of future targeting instrument.

A proposed targeting instrument is expected to be proposed by Center for Economic and Social research (CRES) by July 31st 2016. On this basis, tests and institutional support will be required to achieve a proposed socioeconomic classification/ranking of households covered under the registry by mid 2017. Note that the goal of rethinking and making SSNs more efficient is inserted in the Five Year Plan that was approved by Council of Ministers. Both this Trust Fund Project and Bank supervision and support will be strongly needed to accompany this process.

The expected outcome of this process is for the Ministry of Social Affairs (MoSA) to count with what the Government calls “a Banque de donnees or Database for poor and vulnerable families” (term preferred to social registry) and have sufficient evidence to revise the list of beneficiaries with a view to enhance the overall targeting accuracy of the program. Similarly, the Banque de Donnees will act as a social registry of potentially eligible applicants from other programs or compensation measures, should the Government decide to implement a subsidy reform in the future.

Sub-component 1.3: Consensus-Building and Communication Status of Implementation: These activities were delayed partly due to delays of above activities and partly due to topics’ sensitivity and lack of mutual understanding among different stakeholders of the importance and type of activities required. Comorehension. The Bank has now received and gave no objections to communication activities for the survey on SSN. Given their cross-cutting nature, these activities would be moved to component 3 under the new restructuring framework. Pending is the support for civic engagement and grievance, redress. This delay is understandable given the above delays and will need to receive priority focus in the next 12 months.

Component 2: Strengthening Social Security Reform Analysis and PlanningPrevious Rating: Moderately Satisfactory


Cost (US$):0.4 million

Status of Implementation: This component originally also envisaged financing studies on reform analysis (shown in the results framework) by consultants to support the social dialogue commission. Planned activities under this component had initially focused on financing TA around different topics including: (i) Projections of financing pension funds from 2014 to 2018; (ii) Health financing analysis; (iii) Analyses of the impact of social security reforms in the labor market; and (iv) Development of a summary note on the basic scenarios of simulations SIMPLE reforms by May 30, 2015 (WB and workgroup) However, the social dialogue process stalled starting basically late 2014. The Bank team did help convene the technical tri-partite group under this component that would have produced these studies, and it even developed the model and ran a simulation for the GoT for unemployment insurance. In this context, the GoT and the team agreed, in 2015, to replace studies

510

by required IT investments that will generate enhancements in capacity, efficiency, and planning in social security areas: 3 IT/Management Information System Projects for CNSS-CNRPS-CNAM on inter-operability, e-guichet; also the CRES Servers already procured go under this component. These IT investments are likely to occupy all the budget of this component. It is important to note that the MAS and Social Insurance stakeholders (during the course of 2015) have asked to center the work on these IT activities to ensure the interoperability of information systems within the MAS including the establishment of an epension system. The latter will enhance transparency and efficiency and have been included in the procurement plan. In this context, this second component would be renamed in the new restructured framework as “Support to an Integrated Social Protection System” and redesigned as focusing on the interconnectivity between contributory and non-contributory social protection, which will help implement the common social identifier

Progress in implementation (and future disbursements) of these new activities as of mid July 2016 is significant. In June 2016, 3 contracts were signed for a total amount of almost 1 Million USD: modernization of the information systems for contributory social protection- public (CNSS) with the firm Next Step (802,000 USD$ ) and Direct contract (137,000 USD$) with the Center of National Information technology (CNI) for the implementation of the Interconnectivity between non contributory and contributory social protection databases.

Component 3: Project Management and Monitoring Previous Rating: Moderately Satisfactory


Status of Implementation: As per the implementation summary assessment above, the PIU was considerably strengthened on fiduciary aspects and agreeement was reached on Operational Manual. The Project Procurement Plan (PPM) was revised and validated to full satisfaction. With regard to financial management, the IFR for 2nd semester 2015 was submitted on time and acceptable to the bank and the first audit had an unqualified opinion with no major deficiencies in internal controls. The rating is therefore upgraded from moderately satisfactory to satisfactory with a task team note that the previous report rating should have been moderately unsatisfactory. This was an oversight.Moving forward, the team has asked for the recuritment of a technical specialist to help trouble-shoot activities and ensure proper data collection and reporting on the to-be-restructured Results Framework.

Finally, note that this last component will be redesigned in the new Restructuing to contain cross-cutting activities on communication and civic engagement.


(US$)

(x)


(y)

Total (US$)


4,700,000 4,700,000


4,700,000 4,700,000

Actual Amount Disbursed (c): 900,000.00 900,000.00

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End20132014 250,000 250,000 500,0002015 1,000,000 500,000 1,500,0002016 500,000 1,000,000 1,500,0002017 600,000 600,000 1,200,000

TOTAL 4,700,000511

Note from Task team by July 14, 2016: The disbursement forecast in the previous report was outdated. We have manually modified it for a more candid and realistic estimate. It does not contemplate the fact that the Government of Tunisia is expected to ask for extension of duration in the Letter of Request for restructuring.Revised and subject to extension of duration date:

Year Jan-June Jul-Dec Total by Year End20132014 500,0002015 600,0002016 200,000 1,100,000 1,300,0002017 800,000 700,000 1,500,000

2018 Only if extension of Project duration would be

granted

600,000 200,000 800,000

TOTAL 4,700,000


Note from Task team by July 14, 2016: The table below should be updated with 0 US$ available. We were informed by the Transition Fund that the allocated amount for Indirect costs is not exhausted as indirect costs may have been underestimated given the complexity of the topics involved in this critical project. The CMU kindly allocated 50,000 US of Bank Budget to allow the team to continue supervision and allow proper restructuring next Fiscal year and solutions will be sought for to allow quality and close support to the client and stakeholders.

Disbursed (US$) Available (US$) Total (US$)224,886 73,039 355,000

512


Project Development Objective (PDO): To strengthen institutional capacity to design social protection reforms and improve targeting of safety net programs.


Unit of Measure

Baseline


Frequency



Description

(indicator definition

etc.)

Target Progress as

of 3/31/2015

Progress as of

7/19/2016Nov

2013 – Oct

2014

A

Nov 2014 – Oct 2015

A

Nov 2015 –

Oct 2016

F

Nov 2016 –

Jun 2017YR5

F

Indicator One:Direct project beneficiaries

(a) Institutional capacity building

Number 0 50 0 300 500 Monthly Project M&E database

PIU Total number of beneficiaries from all components of the project combined

Database still under testing phase

(b) Registration in unified population database

Number 0 0 0 10m 500m Monthly Project M&E database

PIU

Indicator Two:Citizens registered in new unified database

(a) Total

Number 0 0 0 10m 500m Monthly Project M&E database

PIU Citizens that have received a unique identification number


(b) Of which are female

% 0 50 0 50 50 Monthly Project M&E database

PIU

(c) Of which are vulnerable

% 0 50 0 50 50 Monthly Project M&E database

PIU

Indicator Three:Beneficiaries of safety net programs (from among citizens registered in national database)

(a) Total

Number 235,000 235,000

235,000

258,500

258,500 Bi-annually

Project M&E database

PIU Heads of households registered in subsidy compensation program


(b) Of which are poor

% 60 60 60 80 80 Bi-annually

Project M&E database

PIU

(c) Of which are % 51 50 51 50 50 Bi- Project M&E PIU

513

female annually databaseIndicator Four: Subsidy and safety net reform plan prepared and disseminated

Qualitative

None Yes No n/a n/a Once Project Implementation Reports

PIU Report disseminated

No

Indicator Five:Integrated social security reform plan prepared and disseminated

Qualitative


PIU Report disseminated

No


Intermediate Result (Component One): Safety net and subsidy reform support

Intermediate Result indicator One: Participants involved consultation activities during project implementation

Number 0 200 0 5000 10,000 Quarterly Project Implementation Reports

PIU Citizens having received information or provided feedback through various channels

Communication TORs in progress (Najet and Najoua should know if for entire project or just one part, which is fine)

Intermediate Result indicator Two: Government staff trained to evaluate subsidy and social expenditures; and

Civil society representatives trained to evaluate subsidy and social expenditures

Number 0

0

50

X

0

X

300

X

500

X

Annually M&E Database PIU Training delivered

12 Check with Najoua

Intermediate Result indicator Three: Unified database Operations Manual developed

Qualitative

None No No n/a n/a Once Project Implementation Reports

PIU Manual designed on use and access of unique identifier system

No In progress (check with Lotfi Allani and Hafedh Bouktif)

Intermediate Result indicator Four: Targeting Operational Manual developed for subsidy-compensation

Qualitative


PIU Manual designed on targeting mechanism for subsidy compensati

No Planned (check with Najet and Hafedh Bouktif)

514

program on program

Intermediate Result (Component Two): Strengthening social security analysis and planning

Intermediate Result indicator One: Joint social security-labor code assessment conducted with stakeholders as part of social dialogue process

Qualitative


PIU Report prepared on the basis of social dialogue with government and civil society

N/A TBD pending social dialogue process re-starting; check with CNSS (Rachid Barouni, who is on the COPIL) who have a technical ad-hoc committee

Intermediate Result indicator Two: Poverty and social impact analysis of social security reform options completed and disseminated

Qualitative


PIU Reports published

TBD pending social dialogue process re-starting (this was supposed to be the roll-out of the model developed already in 2013-4 with Bank TA, see my earlier notes)

Intermediate Result indicator Three: Feasibility study to explore options to finance unemployment insurance completed and disseminated

Qualitative


PIU Reports published

TBD pending social dialogue process re-starting (this was supposed to be the roll-out of the model developed already in 2013-4 with Bank TA, see my earlier notes)

Intermediate Result indicator Four: Annual

Qualitative

None No Annually Project Implementation

PIU Report published

TBD pending social

515

reports on updates of pensions and health insurance actuarial analyses completed and disseminated

Reports and Documents

on simulations and assessment of policy options

dialogue process re-starting (this was supposed to be the roll-out of the model developed already in 2013-4 with Bank TA, see my earlier notes)



delete


delete


*** Target Progress as of 3/31/2015

516

Virtual Market Places for the Development of Export SMEs: Tunisia Activities


Country Name: Tunisia (this is a regional project that also includes Morocco and Jordan)

Name of Implementation Support Agency(ies): The

Name of ISA Project Leader: Laurent Gonnet Email of ISA Project Leader: [email protected] Entity: World Bank Executed Name and Email of Recipient Entity Contact:

Total Amount Approved by the

Transition Fund (US$):

Additional Funds Leveraged and


Steering Committee Approval

Date: 11 February 2014

Project Implementation Start

Date:

May 26, 2014 the date of the signature of the contract with the International Trade


December 30, 2017.

Pillar(s) to which Activity Responds (as per the proposal approved by the Steering

Committee)


Inclusive Development and Job


Competitiveness and Integration

Choose an item. Choose an item.


Project Development Objective: This is a pilot project aimed at a) increasing SMEs exports through Virtual Market Places and b) supporting institutional reforms to create an enabling environment for e-commerce in the targeted countries.


Satisfactory.

Rating for overall implementation progress: Satisfactory.

517


Project implementation is progressing well as outlined in the report. The deliverables planned in the 2015 work plan have been achieved, project implementation in 2016 is moving forward as per the agreed work plan.

Summary highlights:

• SME beneficiaries have established meaningful business relations with importers and completed transactions in new markets.

• A s tudy, requested by the Ministry of Trade, to analyze the issues and challenges affecting the development of e-commerce in Tunisia has been carried out

• 19 E-commerce Advisors certified• 164 new SMEs submitted their application, among which 90 SMEs were selected and assigned to the EAs• The 72 selected SMEs have been registered on at least 3 Virtual Market Places, and have initiated e-commerce

activities• 15 SMEs received the premium accounts on TradeKey, contract by ITC.

518


Component 1: Institutional Reform Component

It is important that governments adopt policies, laws and incentives that focus on promoting trust and confidence among e-commerce participants and developing a national framework that is compatible with international norms on e-commerce. This component aims at supporting current discussions and introducing policy and regulatory changes. This component will support the creation of an inter-institutional committee with private sector participation, analytical and diagnostic studies with the objective of shaping reforms needed for development of the enabling environment for e-commerce.Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 100,000

Status of Implementation of the Component 1. Satisfactory.

1) Setting up an E-commerce inter-institutional committee (IIC), or strengthening existing IICFollowing consultations with the Ministry of Trade and the Ministry of New technologies, the project team decided to work with the existing E-commerce Task force and establish a smaller action oriented committee, composed of all the critical actors in the area of e-commerce to improve the existing environment and initiate required changes and reforms to the existing regulatory framework.

The Ministry of Trade and the members of the Task force requested the project to carry out a study to analyze the issues and challenges affecting the development of e-commerce in Tunisia and more specifically the development of exports through VMPs. The study and its recommendations will form the Action Plan of the Task Force.

2) Study on E-commerce in TunisiaThe study was launched in September 2015 and was finalized in March 2016. A validation workshop will be held in September 2016 for all key stakeholders and partners. The main outcome of the workshop will be the concrete recommendations regarding the required regulatory reforms to support improved e-commerce competitiveness. Some of these policy changes will be initiated by the VMP project.

Component 2: Capacity Building Program

Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 445,000Sub-component 2.1: Capacity Building Program - The sub-component will cover the cost of the design and the delivery of a training program that would enable country partners to fully understand the methods, techniques and dynamics of VMPs to maximize the opportunities they offer to increase export and diversify markets.Status of Implementation: Satisfactory.

519

1) Training material further improved Based on the training already organized in the three beneficiary countries and the feedback received from the partner institutions and participants, it was decided to further improve the existing training materials. An expert was hired early 2016 and worked on revising, improving and expanding the existing training materials. The new material was used for training the second group of advisors in Tunisia, in June 2016; it was assessed as highly satisfactory by all stakeholders.

The training material covers the following items: e-commerce value chain, challenges and solutions for logistics, e-payments, risk mitigation, client management, and after sales service. It also includes description of Virtual Market Places and modalities/conditions to register to enable advisors to coach selected SMEs on these technical aspects.

2) Training workshops and capacity building activitiesA second training was organized in June 2016 in Tunis. 20 advisors, out of the 70 who applied, have been selected to undertake the training. The training aimed to enable the selected EAs to fully understand the methods, techniques and dynamics of VMPs and provide them with a well-defined framework to provide coaching and advisory services to the selected SMEs. 5 EAs will be hired in July 2016.

Sub-component 2.2: Registration and Coaching of SME -Along with the outreach phase of the project, selected beneficiary SMEs will be registered in one to three different VMPs, coached on how to make the best use of their presence on these VMPs and coached on how to concretely deal with the inquiries coming from the first potential buyers through the VMPs


1) Selection of SMEsA second call for expression of interest (EOI) launched online and applications were received from 170 SMEs. The project team decided to focus on building synergies and cooperation with initiatives and project that are focusing on strengthening the capacities of SMEs.

The 90 selected SMEs are beneficiating from the World Bank’s funded Third Export Development Project (EDP III), from The Project Access to markets for Food and local products implemented by the United Nations Industrial Development Organization, the project Strengthening the competitiveness of the textile and garments value chain, implemented by ITC and SOUK ETTANMIA (implemented by the African Development Bank).

The process ensured that the selected group is balanced in terms of company size, gender, products/services, and distribution across different regions in the country.

2) Build the Capacity of SMEs through coaching provided by the Export Advisors

Following the assignment of the SMEs to each EA in June 2015, the EAs have provided during the period tailored coaching and support of the SMEs. The EAs are guiding the selected companies on how to promote their products and services, how to manage customer relationships and export transactions generated through the internet, including after sale service as well as equipping the companies with knowledge and skills gained through the capacity-building program.

The EAs organized regular meetings with the SMEs. The first visit focused on providing the company with general knowledge about utilization of VMPs and to collect all the requited data to carry out further business diagnosis. The following meetings and visits aimed at supporting the SMEs engagement in e-commerce activities.

520

All selected SMEs have registered and started e-commerce activities on, at least, three Virtual Market Places. After the registration and creation of the profiles on VMPs, the EAs ensured that the beneficiary SMEs respond adequately and rapidly to all requests for information from potential buyers.

15 SMEs have beneficiated from a Gold account on Trade Key. 3 SMEs are selling thanks to their presence in TradeKEy.

The registration of SMEs in VMPs has shown that it is a very effective way to diversify target markets. For example a company is selling its products in Australia.


Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 340,000Sub-component 3.1: Partnerships with Virtual Market Places: To ensure the best use of VMPs, certain high- performing/potential firms will be offered premium accounts on VMPs, so they could gain greater visibility for potential clients. This sub-component will cover the expenses related to the subscription to these premium accounts.


The project team initiated contact with several VMPs and discussed modalities of partnership to ensure customized support to selected SMEs.

A contract with Tradekey is in place to help an initial group of SMEs. Tradekey was selected because it connects traders with global whole sellers, buyers, importers & exporters, manufacturers and distributors in over 180 countries with a special focus on Asia and the Middle East, markets that are of interest to the project selected companies. 15 Tunisian SMEs operating in the sectors of handicrafts and food processing were provided with the Gold subscription on the Tradekey that allowed those companies to have additional visibility and, thus, better chances to reach consumers.

Sub-component 3.2: Business Intelligence Development: Furthermore, the project will benefit from statistics on users, accesses and transactions which may allow for a comparative evaluation of SMEs under different

Status of Implementation: Satisfactory. This component will be implemented at a later stage of the project.Sub-component 3.3: Certification.Status of Implementation: Satisfactory. This component will be implemented at a later stage of the project.


Previous Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 90,000Sub-component 4.1: Project Management – This component will finance the PIUs at country level.

521


1) Project Oversight Committee (POC)

The POC meeting took place on February 2016. The meeting was chaired by the Chef de Cabinet of the Minister of Trade. During the meeting ITC made a presentation on the implementation progress and the work plan. The meeting ensured that the project is aligned with the national priorities and supports the Government`s effort to boost exports and the promotion of the digital economy.

2) The project implementation unit (PIU)

The PIU is in place and operational. The PIU is in charge of the country level day-to day management of the project. The PIU organizes monthly meetings with the EA to discuss the status of implementation and find solutions to any issues that may arise.

Sub-component 4.2: Impact Evaluation AssessmentStatus of Implementation: The component will be implemented at the end of the project.

522

Disbursed Available Total25,000 0 25,000

D. Commitments and Disbursements of Transition Fund Funds for Direct Project

Country-Execution

(US$) (x)

Direct Cost 1 for ISA-

Execution (US$) (y)

Total (US$)

Approved Amount for Direct Project 975,000 975,000

Amount Received from Trustee (b): 975,000 975,000Actual Amount Disbursed (c): 659,180 659,180


Year Jan-June Jul-Dec Total by Year End2014 94,169 94,1692015 188,337 94,169 282,5062016 188,337 282,506 470,8432017 127,482 127.482Total 504,156 470,844 975,000


523


Indicators by

Component

Unit Baseline Cumulative Target Values Frequency Data Source/ Methodology

Responsibility

for Data Collection

Description (Indicator

Definition, etc)May

2014 – Apr ‘15

May 2015

– Apr ‘16

May 2016

– Dec ‘16


Indicator 1: Registered

SMEs with at least one export transaction completed via VMPs

Number

0 0 10 100 Quarterly Statistics VMP

platforms/ Feedback

from surveys/M&E

Database

PIU Number of transactions

conducted by registered SMEs

Value of ExportsIndicator 2. Roadmap for

the reforms improving the enabling business

environment for e-

commerce in each participating country

Yes/No No No Yes Yes Bi-annual Reporting by the

Oversight

Committee; Ministries of Trade

PIU - ITC Roadmap document

endorsed by the OC

Indicator 3. SMEs

registered on VMPs Number

0 80 120 200 Quarterly Captured by EAs

and monitored

through M&E

PIU-ITC Registration involves

opening of a VMP

INTERMEDIATE OUTCOMES


Workshops conducted Number 0 2 9 10 Bi-annual Reporting PIU-

ITC

PIU-ITC Output Delivered –

Workshop report

524


Export Advisors Trained Number 0 40 40 60 Bi-annual Reporting PIU-

ITC

PIU/ITC Captures number of

EAs trained on

VMPs

Export Advisors Certified Percent 0 0% 80% 100% Quarterly Training

provider assesses

performance

PIU-ITC Percent of EAs who

receive certification, out of total number

of trained EAs; Not all EAs may end up qualifying; target Training program for TSIs

delivered (# activities)

Number 0 2 5 8 Quarterly M&E Database PIU-ITC # Training sessions

Report disseminated and workshops

evaluations

# Number of advisory servicesCOMPONENT III. VMP PARTNERSHIPS, CERTIFICATION AND BUSINESS INTELLIGENCE

525

Collaborative partnerships

with VMPs

Number 0 0 1 4 Quarterly Project

implementatio

n reports

PIU MoU, Letter of

Intent or other agreement-related

documentation.

Newsletters published by

TSIs to roll out the

Competitive Intelligence

Mechanism

Number

0 0 0 2 Quarterly PIU and RIA PIU and EA # product

(newsletter) delivery by the partnering

TSIs

Premium Accounts

awarded – Certifications Number

0 0 15

30 Quarterly Project

Implementation

Reports

ITC/PIU Trust label

certificates

Assessment body created

and operational

No No No Yes Quarterly Project

Implementation

WB/ITC/PIU Creation of

Conformity

526

Optimizing and Monitoring Employment in Infrastructure Investments

A. Basic Project InformationActivity Name: Optimising and monitoring employment in infrastructure investments in Tunisia

Country Name: Tunisia Name of Implementation Support Agency(ies):European Investment Bank

Name of ISA Project Leader:Chiraz Karoui


Recipient Entity:Ministère de l'équipement, de l'habitat et de l'aménagement du territoire (MEHAT)

Name and Email of Recipient Entity Contact:Khaled Dridi, Head of Minister’s [email protected]


Additional Funds Leveraged and Source(s), if any (US$):58,500 ILO in-kind contribution62,800 Tunisia in-kind contribution



12/9/2015


7/1/2016


3/31/2018



Secondary Pillar(s): Investing in Sustainable GrowthEnhancing Economic GovernanceCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project aims to estimate the impact of government investments in public infrastructure on job creation, in qualitative and quantitative terms, by creating a Management Information System and to apply lessons learnt in order to design better projects which can create more and better jobs.


Satisfactory


Brief Summary of Project Implementation Status: -The EIB has worked jointly with the ILO on a final version of the Terms of Reference, which have been shared with the Tunisian authorities in March 2016.-The procurement of the services will start when the Cooperation Agreement is signed by stakeholders (the EIB, the Tunisian authorities and the ILO). The service provider will be recruited through a framework contract procedure, if possible during Q3 2016. In parallel with the procurement process, EIB legal services have worked on a draft Cooperation Agreement to be signed between EIB, Tunisia and the ILO. The cooperation agreement has been shared with the ILO and it is now in the process of negotiation.



Cooperation agreement to be signed EIB, ILO and Tunisia

8/15/2016

527



Procurement EIB 10/30/2016


C. Implementation Status of Components Component 1: Identify opportunities during the project cycle for enhancing employment impact

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 391,600Status of Implementation: Implementation of this component will begin once the Cooperation Agreement is signed procurement of consultants is completed.

Component 2: Build a set of employment indicators for infrastructure projects for monitoring and reporting


Component 3: Develop management information system (MIS) specifications for MEHAT as part of a national monitoring and reporting system


Component 4: Develop a standardised schedule of employment indicators for incorporation into loan contracts


Component 5: Enhance the macroeconomic Input-Output (I-O) model based on the results of the case studies


Component 6: Draft the final project report



(US$)

(x)


(y)

Total (US$)

528


569,500 569,500


0 0


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 0 227,800 227,8002017 0 0 227,8002018 341,700 0 569,500

NB: These are approximate figures at this stage. Actual disbursement forecast will be updated in the next progress report, depending on contractual agreements between EIB and ILO, on the one hand, and EIB and consultants, on the other.


0 40,000 40,000

529


Project Development Objective (PDO): The project aims to estimate the impact of government investments in public infrastructure on job creation, in qualitative and quantitative terms, by creating a Management Information System, and to apply lessons learnt to design better projects which can create more and better jobs.


MeasureBaseline




Collection


definition etc.)Jul 2016 –

Jun 2017

F

Jun 2017 –

Mar 2018

F

YR3 YR 4 YR5

1. Opportunities to enhance employment impact are identified:

Indicator One:Intensive labour sub-sectors are identified

n/a Yes Once Data collection on on-going and complete projects and other sources and result analysis

Consultant A proposal by consultants to be discussed and then formalized in interim reports

Indicator Two:A set of indicators of employment content in projects will be defined by the consultant as part of the project, through which employment impact can be best measuredExample indicator 1: Average labour intensity by type of infrastructure projects (by sectors and sub-sectors),by type of job (managers and engineers; technicians; skilled workers; unskilled workers; administrative staff and other elementary occupation), and by gender

No of FTE per year

these may or may not be cumulative indicators: they may instead give a snapshot per project

tbc The estimation will be done with background information and data extracted from projects being implemented or completed

Consultant The Consultant will provide a clear description of the indicator and the data used to estimate it

Example indicator 2: Average annual earnings/labour cost by type of infrastructure (by sectors and sub-sectors), by type of job (managers and engineers; technicians; skilled workers; unskilled workers;

USD per year

these may or may not be cumula

tbc The estimation will be done with background information

Consultant The Consultant will provide a clear description of the indicator and the data used

530

administrative staff and other elementary occupation), and by gender

tive indicators: they may instead give a snapshot per project

and data extracted from projects being implemented or completed

to estimate it

2. A national monitoring tool along with appropriate reporting requirements is developed:

Indicator Three: Indicators for the system are defined

n/a Yes Once Based on the the indicators defined in point 1 Indicator 2

Consultant

Indicator Four:Specifications of the monitoring tool are prepared

n/a Yes Once Should be aligned with the CNI's specifications as appropriate

Consultant The tool must be adapted to the standardised IT specification established by the CNI as far as is relevant

Indicator Five:Guidelines and data requirements specified

n/a Yes Once

Fund Level Indicators

Output 5.1.1 Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

n/a Yes Once Endorsement received from Tunisian authorities

Tunisian ministries/EIB/ILO

Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks designed to enhance the enabling environment across all pillar areas and endorsed

Outcome 2.2 Programs and projects designed and implemented to promote more efficient and

n/a Yes Once Information received from Tunisian

Tunisian ministries/EIB/ILO

Programs and projects that support reform of

531

equitable allocation of government resources

authorities that new MIS will be used to record information and to guide policy decisions

government safety net systems, subsidy policies and other related programs and thereby promote more efficient and equitable allocation of resources

Output 3.1.2 Government bodies and institutions including Local governments supported

n/a Yes Once Information in consultant’s reports concerning the number and type of government bodies supported during the mission

Consultant Government bodies, institutions and local government units received support services aimed at increasing their capacity to delivery public services to constituents



Intermediate Result indicator One: Progress result about the data analysis and data collection

Report/ database delivered

Draft Final Once Consultant reports

Consultant / EIB

Intermediate Result indicator Two: Draft guidelines on enhancing employment impact through the project cycle

Report delivered


Consultant / EIB

Intermediate Result Indicator Three: Workshop about the guidelines

Workshop completed

Workshop

Once Consultant reports

Consultant / EIB

Intermediate Result Indicator Four: Training and training workshop

Workshop completed

Workshop


Consultant / EIB

Intermediate Result (Component Two):

Intermediate Result indicator One: Set of monitoring indicators

Report delivered


Consultant / EIB

Intermediate Result indicator Two: Guidance note on monitoring

Report delivered


Consultant / EIB

532

indicatorsIntermediate Result (Component Three):

Intermediate Result indicator One: Develop the MIS

Database completed

Draft / Final


Consultant / EIB

Intermediate Result (Component Four):

Intermediate Result indicator One: Monitoring indicators and clauses for inclusion in contract

Report delivered

Draft / Final


Consultant / EIB

Intermediate Result (Component Five):

Intermediate Result indicator One: Enhancement of I-O tables to better estimate the macroeconomic impact of the construction sector on employment

Model estimation and report delivered

Draft / Final


Consultant / EIB

Intermediate Result (Component Six):

Intermediate Result indicator One: Final report prepared

Report delivered

Draft / Final


Consultant / EIB

533

Broadband Internet and ICT for Education Acceleration Project

A. Basic Project InformationActivity Name: Broadband Internet and ICT for Education Acceleration ProjectCountry Name: Tunisia Name of Implementation Support Agency(ies): World

Bank

Name of ISA Project Leader: Carlo M. Rossotto Email of ISA Project Leader: [email protected]

Recipient Entity: Ministry of Communication Technologies and Digital Economy

Name and Email of Recipient Entity Contact: Nebil CHEMEK [email protected]

Marouane BEN SAID: [email protected]

Total Amount Approved by the Transition Fund (US$): $3,285,750


Total Amount Disbursed (Direct and Indirect in US$): $262,337


12/8/2015


2/1/2016


5/30/2019


Primary Pillar: Investing in Sustainable GrowthSecondary Pillar(s): Inclusive Development and Job

CreationCompetitiveness and IntegrationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The primary objective of the proposed project is to support the Government of Tunisia (GoT) in accelerating access to high speed internet in Tunisia and to improving service delivery in Tunisia’s education sector by the use of information and communications technologies (ICT).




Brief Summary of Project Implementation Status: The team has started working together with the Tunisian counterparts to prepare the TORs for implementationsupport by firms and experts to meet the timeline and achieve the objectives of the proposal.

A launch-mission to Tunisia for the project started on June 27, 2016 and will end on July 7, 2016.

The mission discussed with the Government of Tunisia the overall plan of technical assistance and engaged on main private and public stakeholders on all components of the project. Relevant Terms of Reference, bidding documents and overall technical assistance approach has been discussed and validated with the counterparts.

The consulting firm for the e-education component of the project has been selected in early June 2016, and visited Tunisia the week of June 20, 2016 and engaged with the multi-party working group on digital education. An individual consultant to assist with the draft of the new Digital Economy Code has been recruited on June 24, 2016.



534



Prepare relevant Individual Consultant Terms of Reference for

1. Regulatory and Industry Experts to support the Digital Economy Code

2. Wholesale License Expert

Validate TOR above

Prepare Terms of Reference for PPP Consulting assignment

Validate TORs

Launch procurement processes for activities above

World Bank

GOT

World Bank

GOT

World Bank

7/29/2016

C. Implementation Status of Components Component 1: Deepening reforms on telecoms liberalization and broadband regulation


Cost (US$): 645,000

Status of Implementation: A legal expert has been hired and TORs for additional experts are under preparation. The legal team should be in place in July 2016 to start working on the revision of the legal framework governing the Telecommunication sector in Tunisia and creating an appropriate regulatory and enabling environment for the Digital Economy. The Terms of reference for a consultant to assist the GOT with wholesale licensing approach has also been drafted and discussed with the counterparts.

Component 2: Examining the strategic options for the state-owned incumbent telecoms operator in the context of the plan for overall sector liberalizationPrevious Rating: Not Applicable Current Rating: Moderately



Component 3: Introducing new models of broadband infrastructure supplyPrevious Rating: Not Applicable Current Rating: Moderately


Status of Implementation: TORs for a consultant under preparation and Consultant should be hired and ready to work in October 2016. The consultant will prepare an actionable plan and design, with full government ownership, to support the design of a Public Private Partnership (PPP) that would maximize private participation and speed-up investments into the national backbone infrastructure, while taking into account the specific context of Tunisia’s existing telecommunications market.

Component 4: Testing and evaluation of promising approaches and drafting a detailed implementation strategy including policy reforms at the macro level and training and investments at the school and classroom level for ICT4E (ICT for Education)Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 495,000Status of Implementation: A mission was organized in May/June 2016 to finalize the timeline for the Operational Plan for “l’Ecole Numerique” (EN) as well as discuss the client-requested modifications to the utilization of ICT study and multiple school visits.

A contract for the « Mise en Place du Plan de Développement Opérationnel (PdO) pour le projet de l'Ecole Numérique» was signed on 6/14/16 in the amount of $216,205. The objective of the contract is to support the Govt of Tunisia to operationalize its existing ‘Digital Schools Strategy’ (Ecole Numerique). The outcome will be a

535

costed, time-bound action plan for the achievement of the goals of the E.N. strategy which could be potentially financed by an eventual WB loan to the education sector.

A second contract examining the experience with uptake and utilization of ICT materials at the school level is under preparation and the procurement process will be launched in July 2016 to secure services before the beginning of the next school year (September 2016) when this intervention is expected to begin.

Component 5: Conducting an Impact Evaluation (IE) to ascertain the effects of broadband infrastructure and accompanying e-education program on the economic and social outcomes of beneficiariesPrevious Rating: Not Applicable Current Rating: Moderately




(US$)

(x)


(y)

Total (US$)


US$ 3,225,000 US$ 3,225,000


US$ 3,225,000 US$ 3,225,000

Actual Amount Disbursed (c): US$ 247,375 US$ 247,375

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 $200,000 $595,000 $7950002017 $600,000 $600,000 $1,200,0002018 $350,000 $350,000 $700,0002019 $300,000 $230,000 $530,000


$14,962 $9,645 $24,607

536


Project Development Objective (PDO): The primary objective of the proposed project is to support the Government of Tunisia (GoT) in accelerating access to high speed internet in Tunisia and to improving service delivery in Tunisia’s education sector by the use of information and communications technologies (ICT).


MeasureBaseline

Cumulative Target Values**Frequenc

y

Data Source/

Methodology


Collection


definition etc.)YR 1 YR 2 YR3 YR 4 YR5

Fund-Level Indicators:

Businesses, including MSMEs, demonstrated increased performance after receipt of support/advisory services

document

No document

Increased private sector participation in the telecoms / broadband sector

Yearly Ministry in charge of Digital Economy / sector regulator INT

Ministry in charge of Digital Economy

Number and revenues of operators and service providers in the telecoms / broadband sector

Programs and projects designed and implemented to promote more efficient and equitable allocation of government resources

document

No document

Intervention drafted

Intervention design completed

Yearly Ministry in charge of Education records and World Bank records

Ministry in charge of Education and World Bank

Design of intervention to provide special needs students with appropriate learning software

Project-Level Indicators:

Indicator One: Adoption of key broadband-related regulations by the Government

document

Primary legislation (basic telecom Law - PPP),

Revise the basic telecom law to

Introduce full set of wholesale

Yearly Ministry in charge of Digital Economy / sector regulator


537

secondary telecom legislation and decisions of the sectoral regulator INT in need of revision

introduce the notion of Dominant Operator and strengthen institutional framework for INT and for the universal access fund

broabdand offers in line with best practice

INT

Indicator Two: Adoption of a strategic options for the state-owned incumbent telecoms operator by the Government

document

Absence of strategic options for the state-owned incumbent operator

GoT selects its preferred optionfor the state-owned incumbent operator

Yearly Ministry in charge of Digital Economy


538

Indicator Three: Adoption of the enabling environment for a PPP for ultrafast broadband networks by the Government

document

Absence of enabling environment for a PPP for ultrafast broadband networks

GoT selects design of ultrafast broadband PPP models based on best practices

Putting in place of adequate PPP legislation (if not already there)

Draft license/cahier des charge for the infrastructure operator is available



Indicator Four: Adoption of the detailed implementation strategy for ICT4E by the Government

document

No Digital Education Implementation Plan

Digital Implementation Plan finalized

Digital Implementation Plan adopted by Government

Yearly Ministry in charge of Education records and World Bank records

Ministry in charge of Education and World Bank

An implementation plan including policy work and training activities and connectivity for schools and software and hardware investments

Indicator Five: Implementation of Impact Evaluation (IE) for High-Speed Internet Access by the Government

document

No Impact Evaluation (IE) available

Final Analysis Report Completed



Randomized Controlled Trial


Intermediate Result (Deepening reforms on telecoms liberalization and broadband regulation):

Intermediate Result indicator docume No Introd Yearly Ministry in Ministry in

539

One: Availability of key transparency of regulation instruments

nt mandatory public consultation process for the INT established following public consultation on the said process

uce a requirement for [all] decision of INT to be published as a draft for a period of 20 days, to give stakeholders the opportunity to comment before undertaking final determinations

charge of Digital Economy / sector regulator INT

charge of Digital Economy

Intermediate Result indicator Two: Availability of key universal service fund regulatory instruments

document

Absence of universal service fund manual

Universal service fund manual available



Intermediate Result (Examining the strategic options for the state-owned incumbent telecoms operator in the context of the plan for overall sector liberalization): not applicable

Intermediate Result indicator Docume Absence of Availa Yearly Ministry in Ministry in

540

One: nt a set of options for the state-owned incumbent operator

bility of a set of option for the state-owned incumbent operator

charge of Digital Economy / sector regulator INT

charge of Digital Economy


Absence prefered option for the state-owned incumbent operator



Intermediate Result (Introducing new models of broadband infrastructure supply):

Intermediate Result indicator One: Existence of private operator for the ultrafast broadband PPP

Document

Absence of private operator for the ultrafast broadband PPP

Private operator for the ultrafast broadband PPP selected



Intermediate Result indicator Two: GoT’s officials have enhanced capacity to monitor the execution of the ultrafast broadband PPP

document

GoT’s officials have limited capaacity to monitor the execution of the ultrafast broadband PPP

GoT’s officials trained on procedures and systems to monitor the



541

execution of the ultrafast broadband PPP

Intermediate Result (Testing and evaluation of promising approaches and drafting a detailed implementation strategy including policy reforms at the macro level and training and investments at the school and classroom level for ICT4E (ICT for Education): Intermediate Result indicator One: Availability of Evaluations and solutions testing

document

Absence of Evaluation

s and solutions

testing

Evaluations

and soluti

ons testin

g completed on at least three intervention

s

Yearly Ministry of Education

Ministry Education and

World Bank

The interventions

to be examined and solutions

to be tested will focus on (i) uptake of

school administration tools by school directors and

content provision for (ii) hearing

impaired and (iii) sight impaired students

Intermediate Result indicator Two: Availability of implementation plan

Document

Absence of Implementation plan

Implementa

tion plan draft

completed

Yearly Ministry in charge of Education

records and World Bank

records

Ministry in charge of

Education and World Bank

A full draft of the

implementation plan will be completed in

Y1

Intermediate Result (Conducting an Impact Evaluation (IE) to ascertain the effects of broadband infrastructure and accompanying e-education program on the economic and social outcomes of beneficiaries): Intermediate Result indicator One: Availability of Baseline Data

Data set

No Baseline

Data Collected

Baseline

Data Collec

ted

Yearly Ministry in charge of

Digital Economy


Digital Economy


Intermediate Result indicator Two: Availability of Follow-up Data

Data set

No Follow-up Data

Collected

Follow-up Data

Collec

Yearly Ministry in charge of

Digital Economy


Digital Economy


542

ted

543

Implementing Priority Actions for Competitiveness & Improved Public Services

A. Basic Project InformationActivity Name: Tunisia Delivery UnitCountry Name: Tunisia Name of Implementation Support Agency(ies): World

BankName of ISA Project Leader: Mohamed Hisham El Shiaty


Recipient Entity: Presidency of the Government (particularly Office of the Prime Minister)

Name and Email of Recipient Entity Contact: Ridha Ben Mosbah, Advisor to the Head of Government, [email protected]

Total Amount Approved by the Transition Fund (US$): $1,888,900

Additional Funds Leveraged and Source(s), if any (US$): 477,000, country co-funding;







Secondary Pillar(s): Investing in Sustainable GrowthChoose an item.Choose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: To endow the Office of the Prime Minister with an innovative and efficient Delivery Unit dedicated to the implementation of top priority public actions and to support the Government of Tunisia in delivering concrete and measurable initiatives that help improve public services and enhance the competitiveness of the country.


Satisfactory


Brief Summary of Project Implementation Status: The project is now launched and on track after some unexpected delays due to administrative clearance and procurement processes to hire the first consultancy firm that took longer than expected. A consultancy firm is now hired and its mission launched on Wednesday’s 29th of June 2016. Pending imminent clarity at a political level, it is expected that the first consultancy missions, and the project as a whole, will advance steadily. The upcoming six months will be key for the establishing of the DU, which is expected to be fully operational as of January 2017. Efforts are also engaged by the government, with the assistance of the firm, to have an early/pilot version of the DU already operational (on a limited number of objectives) as of October 2016.

The objective of the firm’s mission is to support the Prime minister’s Office in the design and launch of the Delivery Unit. In particular, the firm will be in charge of: (a) assisting the Prime Minister’s Office to establish an effective legal framework for the DU; (b) assisting in the design and implementation (launch phase) of the DU’s operational framework and mechanisms.

The primary task for the firm is to deliver the overall conception of the Delivery Unit by:1. Identifying a suitable and effective legal and financial framework for the Delivery Unit leading to the official creation of

the DU by decree;

544

2. Refining the exact mission, goals and objectives of the DU including general area of services and responsibilities and leading to a short term and mid-term work plan on 5-8 key priorities;

3. Setting up innovative operational mechanisms to fulfil the mission of the DU, including tools and processes;4. Establishing an organizational chart with roles and responsibilities and profiles of leader and team members and

supporting the recruitment process;5. Elaborating and identifying tools for the monitoring and evaluation of impact including the development of

clear impact indicators;6. Providing the DU with the needed internal and external communication strategy. 7. Assisting the DU core team in establishing an open platform that will support government’s communication on the

DU’s progress, showcase success and keep involved stakeholders focused on targets and results;8. Supporting in the anchorage in the environment by providing a report assisting in the political economy around the DU

and identifying key stakeholders in the CoG and line ministries able to support the DU in achieving its mission;

Implementation is evaluated as moderately satisfactory since most components remain on track to be executed as originally planned, except for a slight circumstantial delay in the launching phase.



Preparing a two-week intensive mission by the selected consultant’s team to Tunisia as of the 18th of July. The mission will be exploring and preparing proposals to the government on the potential legal structure and work program of the DU.

Office of Prime Minister (OPM

7/22/2016

Follow up of consultants mission after summer break and insuring completion of component 1.1 and 1.2 by December 2016

OPM/WB 12/30/2016

Terms of reference for the recruitment of advisory services specialized in strategic communication validated, recruitment process launched

OPM/WB 9/30/2016

Terms of reference for design & development of a public on-line platform presenting the work of the DU as well the detailed progress of its activities validated, recruitment process launched

OPM/WB 10/31/2016

C. Implementation Status of Components Component 1: Establishment and Strengthening of the Delivery UnitPrevious Rating: Not Applicable Current Rating: Moderately


Sub-component 1.1: Set up and launch

Status of Implementation: Consultancy firm selected and mission launched to support the establishment of the Delivery UnitSub-component 1.2: Providing the necessary tools for efficient program management and implementation

Status of Implementation: Consultancy firm selected and mission launched (same firm as component 1.1)Sub-component 1.3: Capacity Building of the team

Status of Implementation: This subcomponent is not yet launched, since it is imperative to advance on the previous two subcomponents before starting any capacity building program.

Component 2: Support to team and partner institutions during implementation

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 780,000Status of Implementation: Component 2 is planned to start once the DU is operational, which is expected to occur in January 2017. However, guidelines have been provided by the government to the consulting firm to study the possibility of launching and early /pilot version of the DU by October 2016, in which case it will be possible to

545

launch component 2 in October 2016. There will be more clarity on the possible scenarios early September.

Component 3: Communication and transparency


Cost (US$): 326,000

Sub-component 3.1: Strategic communication with counterparts and involved stakeholders

Status of Implementation: As part of its mission, the currently hired consulting firm will suggest recommendations that will help orient the activities planned within this subcomponent: the launch of planned activities will thus be kept on hold until more progress is achieved on component 1.1 and 1.2. Expected launch of the component is January 2017.Sub-component 3.2: Strategic communication with beneficiaries

Status of Implementation: As part of its mission, the currently hired consulting firm will suggest recommendations that will help orient the activities planned within this subcomponent: the launch of planned activities will thus be kept on hold until more progress is achieved on component 1.1 and 1.2. Expected launch of the component is January 2017.Sub-component 3.3: Transparency and accountability platform

Status of Implementation: The currently hired consulting firm will provide TORs for the implementation of this subcomponent. The firm will first assist the government in identifying the key priorities and work program of the DU, based on which it will assist the government in elaborating a more refined results matrix for the DU: the platform foreseen in this subcomponent is meant to incorporate this matrix and display it in an easily understandable manner, and thus convey progress on DU/Prime Minister’s priorities (or the lack thereof) to the general public. Expected launch of the component is November 2016.


(US$)

(x)


(y)

Total (US$)


0 1,730,000 1,730,000


0 1,730,000 1,730,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 0 390,000 390,0002017 454,000 590,000 1,044,0002018 454,900 0 454,900


546

Disbursed (US$) Available (US$) Total (US$)41,158 117,742 158,900

547


PDO: To endow the Office of the Prime Minister with an innovative and efficient delivery mechanism dedicated to the implementation of top priority concrete and measurable initiatives that increase the efficiency of public services and enhance the competitiveness of Tunisia.

MENA Transition Fund Pillar 3 Indicators




Data Collection Responsibility DescriptionJan – Dec

2016F

Jan – Dec 2017

F

Jan – Jul 2018

FTarget

Output 3.1.2: Government bodies and institutions including Local governments supported

Y/N - yes yes yes Y AnnualProject


DU

DU and partner institutions in line ministries received support in the form of methodological and technological tools and advisory services aimed at increasing their capacity to delivery public services to constituents

MENA Transition Fund Cross Pillar 5 Indicators




Data Collection Responsibility DescriptionJan – Dec

2016F

Jan – Dec 2017

F

Jan – Jul 2018

FTarget

Output 5.1.1: Documents Produced and Endorsed # 0 5 35 50 50 Annual Progress Report DU

Number of roadmaps, frameworks, procedures, regulatory reform documents produced or endorsed designed to enhance competitiveness and service delivery

Output 5.1.2: Decrees Issued or Structures Established # 0 2 10 18 18 Annual Progress Report DU

Number of laws, policies, or regulations endorsed and number of units and systems established through capacity building or TA activities to enhance the delivery of services and competiveness

Output 5.1.3: Staff Trained

# 0 15 60 70 70 Annual Progress Report DU

Number of public sector staff receiving training in the DU and client agencies to improve capacity for enhanced service delivery to constituents


Baseline Cumulative Target Values Frequency Data Source/Methodology


Description

Jan – Dec 2016

Jan – Dec 2017

Jan – Jul 2018

Target

548

F F F

Indicator one: Establishment of the Delivery Unit

Delivery Unit

0 Establishment of the

unit completed,

fully functioning

1 1 1 Annual Project Implementation

Reports, Decrees, Laws etc.

DU within the OPM

Line Ministries.

Corresponds with Transition Fund Output

5.1.2 “Structures established”: the legal document creating the unit has been finalized and approved by all relevant institutions. The legal document appointing all critical administrators of the unit has been signed/approved and published.

Corresponds with Transition Fund Output 3.1.2: “Government bodies and institutions including Local governments supported”: unit established and fully functioning: Main administrators of the unit have entered in their function, unit has all material means to function and at least 75% of unit positions have been filled.

Indicator two: Number of new public actions implemented by relevant line Ministries and agencies with the support and coordination of the DU.

# of actions 0 5 23 30 30 Annual Project Implementation

Reports

OPM,DU,

Line Ministries

Corresponds with Transition Fund Outcome Indicator 5.1 “Improved enabling environment and government capacity. Implementation of critical aspects of public actions has been completed or has been initiated and is on-track to being completed within a period of no more than 6 months.

Indicator three: Establishment of an open communication platform

Communication

platform0

Establishment of the platform

completed, fully

functioning

1 1 1 AnnualProject


DU

Corresponds with Transition Fund Outcome Indicators 3.1 “improved good governance in the public sector” and 5.1 “Improved enabling environment and government capacity”. Completion of the Establishment of the platform. Website developed, progress indicators and relevant information material available and updated and feedback mechanism in place.


Component 1 - Establishment and Strengthening of the Delivery Unit

Intermediate Result indicator one: Organization structure,

0 1 1 1 10 6 months Progress Report OPM, DU Corresponds with Transition Fund Output

549

Organization structure, staffing and skill requirements

staff skills, procedures

defined.

5.1.2 “Structures established”: Delivery Unit organization structure is defined; staff kill requirements are established with reference to best-international practices.

Intermediate Result indicator two: Delivery Unit staff recruited

DU recruitment 0 5 10 10 10

6 months Progress Report OPM, DUDelivery Unit is adequately staffed

Intermediate Result indicator three: Intermediate Result indicator four: Toolkit, operating manuals and procedure defined

Toolkits and operating manuals

0 0 1 1 1 6 months Progress Report DU

Corresponds with Transition Fund Output 5.1.1 “Documents produced and endorsed”: Operational manual and DU toolkit are available. Procedures are defined.

Intermediate Result indicator four: IT system in place

IT system 0 1 1 1 1 6 months Progress Report DUCorresponds with Transition Fund Output 5.1.2 “Structures established”. IT platform is operational

Intermediate Result indicator five: Tailored training materials are prepared

Course-pack & training modules in

place

0 1 1 1 1 6 months Course-pack for training program

DU & feedback from training participants

Course-pack tailored to needs of Tunisia’s DU (change management, mediation and facilitation) are prepared, including case-studies.

Intermediate Result indicator six: Number of DU staff trained in workshops

#of staff trained 0 5 10 10 10 Annual Progress Report DU

Corresponds with Transition Fund Output 5.1.3 “Staff trained”: Staff trained and contacts established with other partner institutions

Intermediate Result indicator seven: Staff exchange with other recognized /established DU

#of staff in exchange 0 5 5 5 5 Annual Progress Report DU Number of staff benefiting from an

exchange with recognized DU.

Component 2 – Support to team and partner institutions during implementation

Intermediate Result indicator one: Just-in-time advisory services for DU to address specific obstacles encountered during implementation

# of operations 0 2 13 10 10 Annual Progress Report DU

Corresponds with Transition Fund Output 5.1.1. “Documents produced and endorsed”: Operations undertaken by the DU staff to resolve specific technical issues and knowledge transferred.

Intermediate Result indicator two: Punctual capacity building workshops for partner institutions and line Ministries

# of workshops 0 2 4 4 4 Annual Progress Report DU

Corresponds with Transition Fund Output 5.1.3 “Staff trained”: Staff of partner intuitions trained on specific aspects and underlying sectoral issues resolved.

Intermediate Result indicator three: Number of staff trained in workshops

# Staff at sector

ministries

# external participants/

0 10 4060

60 Annual Progress Report DU & feedback from training participants

Number of partner intuitions benefitting from capacity building.

550

experts sharing country

experiences

Intermediate Result indicator four: Just-in-time advisory services for partner institutions and line Ministries

# of operations 0 2 13 10 10 Annual Progress Report DU

Corresponds with Transition Fund Output 3.1.2: “Government bodies and institutions including Local governments supported”: Operations undertaken by consultants in and with staff from partner institutions and obstacles removed.

Intermediate Result indicator five: Number of reforms and new policy actions implemented by relevant partner institutions and line Ministries.

# of actions 0 5 23 30 30

Annual Progress Report DU

Corresponds with Transition Fund Output 5.1.2 “Decrees issued”; Initiation of Reforms and Policy Actions: (i) technical and institutional analysis of proposed or planned reforms or policy actions, (ii) drafting of decrees, laws, (iii) submission to relevant institutions for approval.

Component 3 – Communication and transparency

Intermediate Result indicator one: Communication strategy and framework developed and adopted

Communication

strategy0 0 0 0 0 Annual Progress Report DU

Communication framework based on political economy analysis and strategic stakeholder management adopted.

Intermediate Result indicator two: Communication material

# of communic

ation products

0 2 4 4 4 Annual Progress Report DU

Corresponds with Output 5.1.1 “Documents produced and endorsed”. Communication products designed and produced.

Intermediate Result indicator three: Consultation and knowledge sharing events

# of events 0 2 2 2 2 Annual Progress Report DU Round tables and workshops with civil society and the private sector organized.

Intermediate Result indicator four: Transparency and accountability platform development

Web platform 0 1 1 1 1 Annual Progress Report DU

Corresponds with Transition Fund Output 5.1.2 “Structures established”. Platform developed and publically accessible. Improved access to information to the beneficiaries of the various public actions granted.

Intermediate Result indicator five: Qualitative and quantitative surveys Opinion

polls 1 0 0 0 1 2 years Progress Report DU

Prior and post opinion poll exercise, to measure the perception of reform pace supported by the DU undertaken and impact of the communication actions assessed.


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Work Readiness ProgrammeA. Basic Project Information

Activity Name: Work Readiness Program in TunisiaCountry Name: Republic of Tunisia Name of Implementation Support Agency(ies): African

Development Bank

Name of ISA Project Leader: Oussama Ben Abdelkarim


Recipient Entity: Ministry of Vocational Training and Employment (MVTE)

Name and Email of Recipient Entity Contact: Mr. Oussama ALIOUA; [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 128,000 (Government of Tunisia)



1/21/2016




5/31/2018



Secondary Pillar(s): Choose an item.Competitiveness and IntegrationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: Provide a visible change in the short and medium term in the labour market in Tunisia by increasing the capacity of employment public services to implement and evaluate complex programs and by reducing the gap between the economy’s needs and the job seekers skills and competencies.


Not Applicable


Brief Summary of Project Implementation Status: The Tunisia Work Readiness Program has not started yet. The letter of Grant agreement has just been finalized and printed by the Legal Services Department of the Bank. It is subject to the signing of the government (Ministry of Development, Investment and international Cooperation) the week of July 11.


Expected Date of

DeliveryThe signing of the grant agreement letter MVTE and AfDB 7/15/2016

An update of the procurement Plan. MVTE and AfDB 7/27/2016

Finalization of a simplified procedures manual by MVTE and submitted to the Bank

MVTE 8/17/2016

Recruitment of Trainer for the national Observatory of Employment and Qualifications (ONEQ), (prepare ToR, Non-objection of the Bank, advertisement, selection, etc.)

MVTE and AfDB 9/15/2016

Shopping of computers for ANETI employment offices and PIU MVTE and AfDB 9/15/2016

552



Recruitment of Trainer in project management and monitoring for ANETI and MFPE, (prepare ToR, Non-objection of the Bank, advertisement, selection, etc.)


Recruitment of specialist for WRP project monitoring and evaluation, (prepare ToR, Non-objection of the Bank, advertisement, selection, etc.)


Recruitment of consultant to conduct a study on the regulatory framework for private employment agencies in Tunisia, (prepare ToR, Non-objection of the Bank, advertisement, selection, etc.)


Recruitment of firm to develop a study on priority sectors, (prepare ToR, Non-objection of the Bank, advertisement, selection, etc.)


C. Implementation Status of Components Component 1: Capacity building for key stakeholders participating in employment programs and increasing the employability job seekers

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 1,885,000Sub-component 1.1: Capacity building for the Government and key stakeholders in designing and managing employment programs and initiatives

Status of Implementation: NASub-component 1.2: Introducing community management approach to employment offices

Status of Implementation: NA

Component 2: Supporting the development of the National Employment Policy

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 425,000Sub-component 2.1: Diagnosing the skills gaps and general trends in labour market

Status of Implementation: NASub-component 2.2: Development of National Employment Policy

Status of Implementation: NA

Component 3: Program management and support tools



(US$)

(x)


(y)

Total (US$)


2,460,000 2,460,000


2,460,000 2,460,000


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E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 0 100,000 100,0002017 400,000 800,000 1,200,0002018 1,160,000 0 1,160,000


0 100,000 USD (for AfDB) 100,000 USD

554


Project Development Objective (PDO): Provide a visible change in the short and medium term in the labour market in Tunisia by increasing the capacity of employment public services to implement and evaluate complex programs and by reducing the gap between the economy’s needs and the job seekers skills and competencies.


MeasureBaselin

e


Frequency

Data Source/

Methodology


Collection


definition etc.)Jan – Dec

2016F

Jan – Dec

2017F

Jan – May

2018F

YR 4F

YR5F

Indicator One: Rate of registered job seekers at ANETI

Percentage 34% 36% 40% NA NA NA Annual ANETI and ONEQ

Reports

PIU + Steering committee

Number of registered job seekers with ANETI / Total number of job seekers

Indicator Two: Rate of job offers unsatisfied two months after their posting

Percentage 56% 52% 45% NA NA NA Annual ANETI and ONEQ

Reports


Number of unsatisfied job offers after two months / Total number of job offers


Intermediate Result (Component One): Capacity building for key stakeholders participating in employment programs and increasing the employability job seekers

Intermediate Result indicator One: Public sector staff trained (ONEQ staff members)

Number 0 15 NA NA NA NA Annual Project Reports


Number of ONEQ staff trained in monitoring and evaluating active labour programs

Intermediate Result indicator Two: Public sector staff trained (MVTE and ANETI staff members)

Number 0 30 NA NA NA NA Annual Project Reports


Number of PIU, MVTE and ANETI senior staff trained in managing and rolling-out large and complex programs

Intermediate Result indicator Three: Public sector staff trained (Employment advisors)

Number 0 100 150 NA NA NA Annual Project Reports


Number of employment advisers trained in

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profiling, mentoring, coaching job seekers

Intermediate Result indicator Four: Stakeholders trained (Civil society associations)



Number of civil society associations and private employment agencies trained in profiling, mentoring and coaching job seekers

Intermediate Result indicator five: Model of good practices endorsed (Procedures manual on reconversion advisory issued and adopted)

Number 0 1 NA NA NA NA Once Project Reports


One Procedures manual on reconversion advisory issued and adopted by MVTE

Intermediate Result indicator Six: Individual trained to improve employability (Job seekers trained)



Number of socially vulnerable job seekers who are trained to improve their employability

Intermediate Result indicator Seven: Individual placed to improve employability (Job seekers placed in jobs in priority sector)

Number 0 0 0 220 NA NA Annual Project Reports


Number of job seekers placed in jobs by ANETI in priority sector

Intermediate Result (Component Two): Supporting the development of the National Employment Policy

Intermediate Result indicator One: Report endorsed (Diagnosis of the skills Gap developed)

Report 0 1 NA NA NA NA Once Study report


Analysis on priority sectors with high potential for job creation and growth constraints from skills gap issued and approved

Intermediate Result indicator Two: Roadmap endorsed (National Employment policy developed and adopted)

Report 0 NA 1 NA NA NA Once Strategy document


National Employment policy developed by MVTE

Intermediate Result indicator Report 0 NA 1 NA NA NA Once Strategy PIU + Steering National

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Three: Action plan endorsed (National Employment Action Plan developed and approved)

document committee Employment Action Plan developed and approved by MVTE

Intermediate Result indicator Four: Workshops to share the results of the Strategy is organized

Number 0 NA 6 NA NA NA Annual Project Reports


Number of Workshops to share the results of the Strategy is organized, especially in the religions

Intermediate Result (Component Three): Program management and support tools

Intermediate Result indicator One: Online platform for feedback of job seekers, trainees and private companies

Number 0 1 NA NA NA NA Once Online platform


The Online platform for feedback of job seekers, trainees and private companies is functional

Intermediate Result indicator Two: Quarterly M&E report



The Quarterly M&E report is produced

Intermediate Result indicator Three: Annual auditing report

Report 0 1 1 NA NA NA Annual Project Reports


The Annual auditing report is produced

Intermediate Result indicator Four: Program completion report (PCR)

Report 0 NA NA 1 NA NA Once Project Reports


The PCR is produced


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Supporting the Design and Implementation of Economic and Social Reforms- Inclusive Growth

A. Basic Project InformationActivity Name: Supporting the design and implementation of economic and social reforms for inclusive growth in Tunisia through capacity building in statistics, monitoring and evaluation

Country Name: Tunisia Name of Implementation Support Agency(ies): African Development Bank (AfDB); Organisation for Economic Co-operation and Development (OECD)


OECD: Andreas Schaal/Anton Leis Garcia

AfDB: Jacob Kolster/Thouraya Triki


OECD: [email protected]; [email protected]

AfDB: [email protected]; [email protected]

Recipient Entity: Ministry of Investment Development and International Cooperation (MIDIC)


Rached Ben Romdhane, Director of Cabinet, MIDIC; Email: [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 231,000 (Government counterpart funding)



5/30/2016


1/9/2016


8/31/2019





The objective of this project is to enhance efficiency and effectiveness in the implementation of the Government of Tunisia (GoT)’s 5-year Strategic Development Plan 2016-2020 (SDP) and future structural reforms and policies by strengthening its capacity in statistics, impact assessment, monitoring and evaluation. Notably, the project presents a perfect opportunity to support Tunisia’s efforts to achieve its economic transition and structural transformation. In particular, the objectives and activities planned under this project makes it a suitable candidate for financing by the MENA Transition Fund given the Fund’s objective of assisting countries in transition to develop inclusive growth and foster home-grown reforms.

In particular, the project will support the delivery of sustainable and inclusive growth by serving three key areas: (1) support to the design and implementation of macroeconomic and structural policies; (2) support to inclusive regional development through improved regional statistics and monitoring and evaluation; and (3) support to Tunisia’s open data agenda through the design and installation of a new statistical dissemination infrastructure.

558






Not Applicable


Brief Summary of Project Implementation Status

Following the project’s approval by the steering committee in May 2016, the two ISAs have established contact with the MIDIC to prepare the ground for a swift kick-off of project activities. A meeting between the OECD project team and MIDIC took place on 17 June 2016 to discuss priority actions to be undertaken before the summer break. Another meeting is planned for early July 2016 between the AfDB team and representatives of key beneficiary entities to discuss preparatory activities while waiting for the official grant letter and grant agreement. The main priority is the creation of a Steering Committee to spearhead project activities led by the MDICI with representatives from the key project stakeholders (DGP, DGDR, INS, ITCEQ). AfDB activities: In addition to the creation of the Project’s Steering Committee, the AfDB is discussing with the MIDIC a detailed timetable for the implementation of other key preparatory activities involving in particular ITCEQ given its role as the project’s implementation agency, and namely:

Appointment of a project management team composed of a project manager, an accountant and a procurement specialist (disbursement condition);

Opening of a project special account at the Central Bank and submission to AfDB of evidence regarding the account and the specimen signatures to operate such account (disbursement condition);

Prepare the project’s general procurement notice; and Finalize the procurement documents (request for proposals and terms of reference) regarding the

recruitment of the project manager. A template ToRs was shared with MIDCI to facilitate their work.

OECD activities: The OECD team is liaising with key beneficiary entities to define a detailed implementation plan for each of the project activities based on the needs of each entity. Pending reception of the formal commitment letter, these exchanges are aimed at laying the ground for a swift kick-off of project activities in September 2016. Subject to the outcome of these exchanges, priority activities for the next six months have already been outlined and are briefly described in Section C, below.

C. Implementation Status of Components Component 1: Support for the implementation of macro-economic and structural policies and reforms: This component is aimed at the definition of clear and well-defined outcome and policy indicators as well as the development of adequate capacities for the planning, design, implementation, and monitoring and evaluation of reforms.Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 1,883,985Sub-component 1.A: Benchmarking Tunisia’s economic performance and policiesBenchmarking Tunisia’s economic performance and policies against OECD countries and key emerging economies will serve to better design policies and structural reforms, and to monitor progress in policy implementation and outcomes. An in-depth policy analysis based on well-tested OECD methodologies will allow Tunisia to learn from the experience of other countries, to build expertise at the government level and to enrich the policy dialogue with key stakeholders.

Status of Implementation: Once the OECD Budget Committee has approved the project the OECD team will initiate discussions with beneficiary entities on a detailed implementation plan for this component. Sub-component 1.B: Enhancing MIDIC forecasting, planning and monitoring capacities This sub-component aims at strengthening the capacity of the MDICI in planning, designing and implementing reforms under the 2016-2020 SDP and beyond. Specifically the component will seek to: (i) Enhance the GoT’s forecasting and implementation capacity of macroeconomic policies, (ii) Improve Quantitative Impact

559

assessment of structural reforms, and (iii) Develop dashboards that would ensure more effective monitoring of Tunisia’s economic performance.

Status of Implementation: Actual implementation of this component can only start once the grant agreement is signed. Meanwhile, AfDB has already communicated to MIDIC a list of preparatory tasks that could be done and a meeting will be held in july to discuss these and a timeline for implementation.

Component 2: Support to inclusive regional development through improved regional statistics and M&E capacityThis component includes two complementary and mutually-reinforcing components aimed atPrevious Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 1,118,160Sub-component 2.A: Support the GoT in developing a system of internationally comparable indicators at the sub-national level. This sub-component is aimed at improving the implementation, monitoring and evaluation of regional development and social policies in Tunisia through a strengthened governance of regional statistics. The work will offer a diagnosis of the legal and regulatory frameworks, data gaps in the context of a reformed multi-level governance system, as well as capacity needs at the national and the sub-national level to carry out new functions in the production and use of regional statistics.Status of Implementation: The OECD team is currently discussing with beneficiary entities a detailed implementation plan. Subject to the outcome of these exchanges, key activities under this component for the next 6 months include:

- OECD sent a brief questionnaire to the Tunisian authorities to gather information regarding the organisation, status and priorities for regional statistics. The questionnaire aims also at understanding the main national/local agencies to involve both in the role of producers and users of statistics

- OECD prepares a first “institutional mapping” on regional statistics to be discussed with GoT and define roadmap for the component.

- INS and MDICI are invited to participate at the OECD Working Party on Territorial Statistics (WPTI) 31st meeting (Paris, 7 November 2016). Preliminary list of topics that will be discussed in the meeting: cities and inclusive growth; cross-country database on regional business demography and entrepreneurship statistics; the role of local governments in migrants integration.

Sub-component 2.B: Enhance effectiveness of Tunisia’s regional development policies through strengthened M&E capacity and improved indicators. The main objective of this sub-component is to enhance the efficiency and effectiveness of regional development policies by (i) reviewing historical regional development policies to identify gaps and weaknesses, (ii) building indicators that measure the attractiveness of regions with the goal to identify areas for interventions and priorities, and (iii) strengthening the GoT’s capacity in monitoring and evaluating the impact of regional development policies.

Status of Implementation: Actual implementation of this component can only start once the grant agreement is signed. Meanwhile, AfDB has already communicated to MIDIC a list of preparatory tasks that could be done and a meeting will be held in July to discuss these and a timeline for implementation.

Component 3: Support Tunisia’s open data agenda through a new statistical dissemination infrastructure: This component will support the development of a sustainable and robust statistical dissemination infrastructure to provide relevant and timely data to monitor progress of Tunisia’s economic situation and policies through relevant indicators, and data enriched policy dialogue with civil society and key partners.

Status of Implementation: The OECD team is currently discussing with beneficiary entities a detailed implementation plan. Subject to the outcome of these exchanges, key activities under this component for the next 6 months include:

560

- Connection to INS management- Preparation of initial mission to INS premise, planned on September or latest early October- Execution of the mission, which should lead to a detailed project scoping, a finalized join INS-OECD

project structure in place and first elements of the blueprint (see below).

This project initiation is part of Phase 1 of the project (due by March 2017) leading to a ‘blueprint for statistical dissemination at INS,’ which includes:

- Assessment of INS data dissemination processes and definition of the 2 year target;- Assessment of INS data product portfolio and definition of the 2 year target;- Assessment of INS ICT Infrastructure and definition of the 2 year target;- Delivery of a temporary prototype of the future INS data dissemination platform based on small subset

of available data, that could be temporarily hosted at OECD or in the cloud;- Detailed identification of the 2 year target, action plan and refined resource requirement to reach it.


Component 4: Component 4: Project Management and audit: This component will support the project management and audit activities for the project, including the recruitment of a project manager and an auditor for the GoT-executed activities.

Status of Implementation: Actual implementation of this component can only start once the grant agreement is signed. Meanwhile, AfDB has shared with MIDCI draft ToRs to facilitate preparation of the task manager one. .



(US$)

(x)


(y)

Total (US$)


1,830,000 1,848,017 3,678,017


0 0 0


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 0 408,669 408,6692017 613,003 613,003 1,226,0062018 613,003 613,003 1,226,0062019 613,002 204,334 817,336


0 AfDB: USD 100,000OECD: USD 124,253

AfDB: USD 100,000OECD: USD 124,253

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Project Development Objective (PDO): Enhance efficiency and effectiveness in the implementation of Tunisia’s 5-year Strategic Development Plan and structural reforms by strengthening the Government’s statistical, monitoring and evaluation capacity in project and reform managementPDO Level Results Indicators Unit Baseline Cumulative Target Values Frequency Data Source/


for Data Collection


Sep 2016 – Aug 2017 F

Sep 2017 – Aug 2018 F

Sep 2018 – Aug 2019 F

PDO indicator 1: Enhanced economic growth measured

Quantitative 0.8% (INS) 2% 3% 4% Annual National Institute of Statistics and DGP (MDICI)

Project Implementation Team (PIT); MDICI

Annual GDP growth rate for 2016, 2017 and 2018

PDO indicator 2: Reduced regional disparities

Quantitative 30 percentage points

- - 20 percentage points

Once National Institute of Statistics (INS)


Difference between highest and lowest regional unemployment rates

PDO indicator 3: Improved enabling environment and government capacity to implement the SDP 2016-2020 (MENA TF pillar indicator 5.1)

Qualitative Capacity gaps

- - Improved capacity

Annual Project reports capturing progress and results


Qualitative assessment of improved government capacity to implement the SDP effectively

PDO indicator 5: Documents produced (MENA TF pillar indicator 5.1.1)

Quantitative 0 1 7 10 Annual for OECD, once for GoT

Project reports capturing progress and results; documents produced


Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks designed and (if applicable) endorsed by the GoT

PDO indicator 6: Government bodies and institutions including local governments supported (MENA TF pillar indicator 3.1.2)

Quantitative 0 6 8 9 Annual Project reports capturing progress and results


Government bodies and institutions receiving support (target: DGP, DGDR, ITCEQ, ODS, ODNO, ODCO, CGDR, CNS, INS)


Component 1: Support for the implementation of macro-economic and structural policies under the Strategic Development Plan and the design of future reforms and policies

Indicator 1.1: Availability of economic projections for Tunisia based on OECD methodology

Quantitative

Economic projections not benchmarked

1 3 5 Semi-annually OECD Economic Outlook

PIT Development of economic projections in line with OECD standards allowing for benchmarking under the bi-annual OECD Economic Outlook.

Indicator 1.2: Availability of structural Quantitativ Tunisia not - 1 (interim) 3 (interim Annual (bi-annual OECD Going PIT Inclusion of Tunisia in the

562

indicators and policy recommendations

e participating

and main report)

main report and interim reports)

for Growth publication

OECD Going for Growth publication, including capacity building to maintain indicators in the future

Indicator 1.3: Availability of in-depth policy analysis (Economic Report), including policy recommendations

Quantitative

No report - 1 1 Once Tunisia Economic Report

PIT Economic Report covering macroeconomic and structural aspects and policy recommendations, followed by a workshop on structural reforms

Indicator 1.4: Capacity building through seminars in Tunisia / participation of government officials in OECD Committees

Quantitative

None 1 / 1 3 / 3 5 / 3 Annually Project progress reports; minutes of meetings and seminars

PIT Number of seminars organised in Tunisia / Number of missions of Tunisian officials to OECD HQ

Indicator 1.5: Number of Tunisian officials seconded to the OECD to foster knowledge transfer

Quantitative

None 1 2 2 Annually Project progress reports

PIT Number of secondees to the OECD

Indicator 1.6: Number of structural reforms and policies for which ex-ante quantitative impact assessment is performed

Qualitative 0 - - 4 Annually Project progress reports

PIT Assessment for 2018 to be carried out

Indicator 1.7: Models developed for enhanced forecasting, planning and monitoring by MDICI

Qualitative 0 - 3 3 Annually Project progress reports

PIT Development and operationalisation of DGSE, dynamic factor and CGE models; related training activities

Indicator 1.8: Number of Training sessions organized

Quantitative

0 - 4 7 Once Project progress reports

PIT Training related to maintenance and use of DGSE, dynamic factor and CGE models;

Component 2: Support to inclusive regional development policies through improved regional statistical capacity

Indicator 2.1: Capacity building through workshop on the production of regional indicators

Quantitative

None - 1 1 Once Project progress report; workshop report

PIT Workshop focusing on the production of regional indicators and their sustainability over time

Indicator 2.2: Diagnostic of the governance of statistics for regional development developed

Quantitative

None - 1 1 Once Diagnostic report, minutes of Working

PIT/OECD Diagnostic report , including targeted recommendations, to be peer reviewed by the

563

Party Meeting

OECD Working Party on Territorial Indicators and discussed at MENA OECD Governance Programme

Indicator 2.3: Tunisia’s benchmarking through participation in the OECD Regions at a Glance publication completed

Quantitative

None - - 1 Annually OECD Regions at a Glance

OECD Benchmarking of regional contributions to national prosperity and well-being through Regions at a Glance publication

Indicator 2.4: Diagnostic assessment of historical regional development policies finalised

Quantitative

None - 1 1 Once Diagnostic assessment

PIT Diagnostic assessment of regional development policies including best practices and weaknesses; dissemination seminar

Indicator 2.5: Monitoring and evaluation system of regional development policies is active

Quantitative

None - 1 1 Once Project progress reports

PIT M&E tool involving civil society will also monitor public projects implemented in the regions under SDP

Indicator 2.7: National indicators measuring regional attractiveness are available

Quantitative

None - 1 1 Annually Project progress reports

PIT Indicator set developed and published

Indicator 2.8: Number of staff of MDICI and sectoral ministries participating in capacity building on M&E of regional policies

Quantitative

None - 10 20 Once Project progress reports; training reports

PIT Capacity building including trainings and / or study visits

Component 3: Support to Tunisia’s open data agenda through a new statistical dissemination infrastructure

Indicator 3.1: Statistical dissemination infrastructure installed and operational

Qualitative None - 1 1 Once Project progress report, .Stat infrastructure

PIT INS.Stat system developed and operational

564

Youth In Public Life: Open & Inclusive Youth Engagement – Tunisia Activities

A. Basic Project InformationActivity Name: Tunisian Youth in Public Life: Towards open and inclusive youth engagement

Country Name: Tunisia Name of Implementation Support Agency(ies): OECD

Name of ISA Project Leader: Andreas Schaal; Miriam Allam


Recipient Entity: Ministry of Civil Service, Governance, and Fight against Corruption

Name and Email of Recipient Entity Contact: Minister Kamel Ayadi, [email protected]





5/30/2016


9/1/2016


8/31/2019





The project will contribute to advance Tunisia’s reform process towards the active and inclusive engagement of young men and women in public life by: (i) Supporting the inclusive formulation and implementation of the Integrated National Youth Strategy 2030 (the “Strategy”); (ii) Scaling up the legal and institutional framework to foster youth engagement; and (iii) Promoting new forms of youth engagement to mainstream youth considerations in public policies and governance.

The first objective is to promote an inclusive approach to the formulation and implementation of the Integrated National Youth Strategy 2030 and youth policy more generally. To guarantee its success, the project will support Tunisia in defining the mandate of all key stakeholders involved, strengthen monitoring and evaluation as well as mechanisms for horizontal and vertical coordination to increase coherence of government interventions in favor of youth.

The second objective is to reinforce the legal and institutional framework to foster youth engagement in public life. With regard to the existing governance framework, OECD support will focus on supporting legal and institutional reform to increase youth participation in decision-making (e.g. via a National Youth Council) and institutionalize the interplay between local authorities and youth.

The third objective is to promote new forms of youth engagement to mainstream youth considerations in public policies and governance. OECD assistance will explore new forms for a more inclusive youth-government dialogue (e.g. via digital technologies) and innovative partnerships in the formulation and delivery of public policies and services (e.g. engagement in governance processes such as public budgeting or strengthening integrity frameworks).

566




The project with Tunisia is part of a regional project which will benefit stakeholders in Tunisia, Morocco and Jordan.


Not Applicable



The project was approved by the Steering Committee of the MENA Transition Fund on 30 May 2016 in Rabat.

Throughout June, the OECD has engaged in close consultation with the focal points for the project in the Ministry of Civil Service, Governance, and Fight against Corruption to prepare the official kick-off in September 2016.

To prepare the proposal and ensure that it fully reflects government priorities and complements other donors’ activities, various coordination meetings were organized with the Presidency of the Republic, the Presidency of the Government, the Ministry of Civil Service, Governance, and Fight against Corruption, and the Ministry of Youth and Sports. All along the preparation process, Tunisian stakeholders have shown commitment to build a high-quality project that will contribute to the elaboration of an integrated strategy for youth and address efficiently youth challenges.

Several meetings and conference calls were set up with donors (UNESCO, EU, UNDP, IRI, France, Germany, UK, US) to discuss international engagement supporting youth in Tunisia and to further explore synergies and joint activities. In addition, the OECD has reported on the project to MENA and OECD countries in the framework of the MENA-OECD Governance Programme – a forum that provides for the coordination of country and donor-led activities at regional and national level.

In June 2016, the Council of ministers validated a summer camps plan for Youth to discuss youth related key areas and challenges. These discussions would feed into the preparation of the future National Integrated Youth Strategy 2016-18.

The ministry has already nominated a project coordinator and a steering committee to ensure the monitoring of activities. The Ministry and the OECD team are currently fine-tuning the project activities in line with the priorities of the Ministry and the future National Integrated Youth Strategy 2016-18.

For this purpose, the OECD will organize a first coordination meeting in September 2016 with the project partners from Morocco and Tunisia to (a) identify and set up the implementation mechanisms for the project (e.g. Project Working Group); (b) agree on a timeline for the delivery of the project activities; and (c) reach out to non-government stakeholders (e.g. civil society, youth associations, youth activists) to involve them throughout the project. An official launching conference at high political level will take place in Amman in late 2016.

The OECD has continued to reach out to international experts (e.g. Chatham House), peers and NGOs (e.g. European Youth Council) to partner up in the implementation of project activities and identify good practices in both OECD and MENA countries.





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C. Implementation Status of Components Component 1: Supporting the inclusive formulation and implementation of the National Integrated Youth Strategy 2030

The project will support Tunisia in strengthening public governance systems to support the inclusive formulation and implementation of the Integrated National Youth Strategy 2030 across the different levels of government.

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 649,182Sub-component 1.1: Strategic mapping of Tunisia’s public governance framework to prepare and implement the Integrated National Youth Strategy 2030Status of Implementation: N/A (The Ministry of Civil Service, Governance, and Fight against Corruption and the OECD are preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 1.2: Capacity building for an integrated approach to the delivery of youth policy

Status of Implementation: N/A (The Ministry of Civil Service, Governance, and Fight against Corruption and the OECD are preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 1.3: Regional conference for MENA countries on the formulation and implementation of national youth strategies [Regional component]

Status of Implementation: N/A (The Ministry of Civil Service, Governance, and Fight against Corruption and the OECD are preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)

Component 2: Scaling up the institutional and legal framework for youth engagement in public life

The project will support Tunisia in scaling up mechanisms for young people´s civic engagement and political participation at the central and sub-national level. The support will build on the existing structures and exchange good international practices through a series of capacity building with policy practitioners and experts from MENA and OECD countries.

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 180,298Sub-component 2.1: Capacity building to strengthen the legal and institutional framework for youth engagement in public life at the central and sub-national level

Status of Implementation: N/A (The Ministry of Civil Service, Governance, and Fight against Corruption and the OECD are preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 2.2: Regional conference for MENA countries on the institutional and legal framework for inclusive youth engagement in public life [Regional component]


568

Component 3: Promoting new forms of youth engagement to mainstream their considerations in public policies and governance

Through an exchange between public officials and youth representatives, this component will foster a joint understanding among both sides for ways to exploit innovative forms of engagement. This component is complementary to the efforts aiming at strengthening conventional forms of engagement.

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 379,250Sub-component 3.1: Capacity building to disseminate innovative tools, mechanisms and channels for youth engagementStatus of Implementation: N/A (The Ministry of Civil Service, Governance, and Fight against Corruption and the OECD are preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 3.2: Good practice guide to engage youth through innovative forms of participation in policy-making and public governance

Status of Implementation: N/A (The Ministry of Civil Service, Governance, and Fight against Corruption and the OECD are preparing the implementation strategy which will be presented and discussed with the official kick-off of the project in a first coordination meeting with all relevant stakeholders in September, tbc)Sub-component 3.3: Regional dialogue on innovative forms of youth engagement in policy-making and public governance [Regional component]



(US$)

(x)


(y)

Total (US$)


1,208,730 1,208,730


0 0


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)*Year Jan-June Jul-Dec Total by Year End2016 0 100,000 100,0002017 225,000 225,000 550,0002018 225,000 175,000 950,0002019 175,000 83,730 1,208,730



0 81,270 81,270

569


570

571

PDO: Contribute to advance Tunisia’s reform process towards the active and inclusive engagement of young men and women in public life



Data Collection Responsibility Description

Sep 2016 – Aug 2017

F

Sep 2017 – Aug 2018

F

Sep 2018 –

Aug 2019

F

Target

Number of Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed;

Nr. of reports 0 0 1 2 2 Annually Progress Report


Team (PIT)

This will include, one OECD Review and one good practice guide.




Team (PIT)


Number of national institutions, regions, municipalities and youth associations mobilized in youth engagement in public life



Team (PIT)

National and local institutions encouraging youth engagement in public life.

Public sector staff trained in engaging youth in public life



Team (PIT)


Improved enabling environment and government capacity to implement the Integrated National Youth Strategy



Team (PIT)

Number of initiatives undertaken by the government such as legal, institutional, policy or procedural reform and activities to implement the Strategy.




Team (PIT)

Number of initiatives undertaken by central and local authorities to foster youth representative bodies at the central and local level.

Intermediate Results IndicatorsComponent 1 Supporting the implementation of the National Youth Strategy 2015-30 across the different levels of government

Number of review produced and endorsed Quantitative 0 1 1 1 1 Annually Progress Report Project


OECD Review of Tunisia’s Public Governance Framework to formulate and implement the Integrated National Youth Strategy 2030



Two capacity building seminars to promote an inclusive approach to the formulation of the Integrated National Youth Strategy 2030.

Number of regional conferences Nr. of conferences 0 1 1 1 1 Annually Progress Report


Team (PIT)


Towards Inclusive and Open Governments: Promoting Women’s Participation in Parliaments and Policy-making – Tunisia


Country Name: Tunisia Name of Implementation Support Agency(ies): OECD

Name of ISA Project Leader: OECD: Andreas Schaal/Tatyana Teplova

Email of ISA Project Leader: OECD: [email protected]; [email protected]

Recipient Entity: The Tunisian Parliament Name and Email of Recipient Entity Contact: Ms. Jihen Ben Romdhane ; Special advisor in the office of the president of the Parliament, in charge of international cooperation Email: [email protected]





5/30/2016


9/1/2016


8/31/2019




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project will support Tunisia in fostering inclusive growth and good governance by leveraging open government policies and mainstreaming gender perspectives in parliamentary operations.

The proposed project will provide direct country support to Tunisia and will complement the current regional project in Morocco, Jordan and Egypt that was approved by the Steering committee of the MENA Transition Fund in June 2015..

The project aims to “Promote women’s participation in parliaments, local elected councils and policy-making by

1) Making legislatures and local elected councils more transparent, equitable and gender-sensitive and;

2) Empowering and strengthening the capacity and skills of women electoral candidates at the national and local levels and;

3) Improving public consultation capacity of parliaments, local elected council’s and women’s CSOs in law-making processes.

This will be complemented by regular regional meetings as an integral part of this project. This regional dialogue is a cross-cutting element for the continuity of the knowledge sharing process for implementation of reforms and transformation on the ground. In this context “learning loops” will offer a multi-level mechanism for interaction and new policy approaches among parliamentarians and policy makers in the region.

572



Not Applicable


Brief Summary of Project Implementation Status: Following the project’s approval by the steering committee in May 2016, the OECD started developing

the detailed implementation strategy and action plan to be presented to the Tunisian counterparts in the coming weeks. Based on the agreement on the implementation strategy, a first coordination meeting is planned in September 2016, followed by the official launching at high-level in autumn 2016. Prior to the project approval on 30 May 2016, the OECD organized regular preparatory meetings and conference calls with the office of the Tunisian President of Parliament, parliamentarians and officials from the public administration. The meetings helped to shape the project proposal and allowed for strong engagement and ownership of the process. The strong buy-in will support the fine-tuning of the activities, a timely delivery of the project and maximize the expected outcomes.

Thus, several coordination meetings and working sessions were held in Tunis with the main stakeholders in order to identify the needs, and align the project with the TF and the country’s objectives.

It is important to note that these preparatory meetings, exchanges and discussions helped raising the awareness among parliamentarians on several issues related to gender equality in general and parity within the upcoming municipal elections in particular. This supported the ongoing discussions which eventually led to a new law voted recently by the the Tunisian parliament on June 15th 2016 concerning local elections which stipulates that horizontal and vertical parity should be respected and applied during the upcoming election.

The OECD presented a draft of the project to the Tunisian stakeholders and met the Chief of Staff of the President of parliament as well as the special advisor in the office of the president that is in charge of international cooperation on 12 October 2015. The coordination meeting resulted in an agreement on medium and long-term objectives of the project.

• During the follow-up and validation process, the Tunisian parliament nominated 8 MPs to form a committee that has the mandate to study, comment and validate the project proposal. Two official hearings in the parliament with the committee members took place on 9 and 16 March 2016.

After receiving the first set of comments, the OECD adapted the proposal as a last step before presenting it to the president’s office for final approval.

This coordination and consultation process helped emphasizing the high importance of the project and its components in the current preparations for the regional elections in Tunisia. The MPs acknowledged the need to reinforce the capacities of current MPs at the central level and future representatives at local level to consult with civil society and women’s rights organizations, particularly in terms of their contribution to the promotion of women's participation in public life and in the policy making process, in the framework of open partnership and inclusive growth. Strong ownership of the project has been confirmed by the support at the highest level through the involvement of the cabinet of the president of Parliament, and the president himself.

The official project implementation team (PIT) members are currently being selected and a first meeting with the PIT is planned in September to ensure a successful launching of the project later in Autumn.

Finally, the project has been presented to all relevant donors, and the OECD is in continuous contact with them to create synergies. In addition, the project has been presented to OECD member countries as part of the policy dialogue of the MENA-OECD Governance Programme.

573

C. Implementation Status of Components Component 1: Making local elected councils more transparent, equitable, and gender-sensitive: This component will address some of the internal and external principal issues concerning the operations of the Parliament and local councils as employers, the gender sensitivity of the election processes and law and local regulatory making processes.Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): $245,703Sub-component 1.1: Mapping and gender analysis of electoral and workplace operations, processes and policy frameworks in Parliament and selected local elected councils

Status of Implementation: (Ongoing): the OECD is tailoring the implementation strategy and the action plan and will present it to the Tunisians counterparts in September. Sub-component 1.2: country-based capacity building activities to parliamentarians, selected local electoral committees and secretariats

Status of Implementation: (Ongoing): the OECD is tailoring the implementation strategy and the action plan and will present it to the Tunisians counterparts for approval tentatively in September.

Component 2: Strengthening capacity and skills of women electoral candidates at the national and local levels: This component will address these barriers facing women in their political career and will build on the accumulated knowledge and good practices to build capacities of women candidates with the required set of skills to assume their representative role effectively. It will also aim to develop capacities and strengthen effectiveness of future female parliamentarians’ response to the growing expectations of the voters. In particular, the project will enable parliamentarians to develop their full capacity to perform their basic legislative, oversight and representational roles, and to review policy matters and proposed bills and to have sound negotiation and leadership skills.

Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 300,501Sub-component 2.1: Conducting a country-based assessment of the existing opportunities and the current challenges faced by women candidates

Status of Implementation: (Ongoing): the OECD is tailoring the implementation strategy and the action plan and will present it to the Tunisians counterparts for approval tentatively in September.Sub-component 2.2: Strengthening women’s access and capacities to participate in elections at national and sub-national levels


Component 3: Strengthening the public consultation capacity of parliaments, local elected councils and women’s CSOs in law-making processes: This component will focus on building the capacities of the Parliament, local elected councils and civil society to effectively engage with each other in the law-making process, in response to the calls for greater openness, and gender responsiveness of public institutions, including parliaments. These activities will reinforce the activities proposed as part of sub-component 2b on strengthening gender-sensitive law making capacities.


Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 190,925Component 4: Regional policy dialogue The components will be complemented by annual regional policy

574

dialogue, with the participation of ACTs, OECD member and non-member countries, where possible. Regional dialogue will build on the existing OECD Women in Government Platform, which includes representatives of governments, parliaments, courts and civil society, as well members of the Women in Parliaments Global Forum (WIP). Regional dialogue will take place in each of the beneficiary countries of this project (e.g. Jordan 2016, Egypt 2017, Morocco 2018, Tunisia 2019). It will provide an opportunity to network, exchange lessons learned leverage open government practices and share and good practices enhance women’s participation in the policy-making process. This component would also provide an opportunity to integrate the beneficiary countries into the broader OECD policy dialogue on women’s empowerment in public life and the gender-sensitive policy-making process.




(US$)

(x)


(y)

Total (US$)


797,364 797,364


0 0


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 85,097.5 85,097.52017 127,646.25 127,646.25 255,292.52018 127,646.25 127,646.25 255,292.52019 127,646.25 127,646.25 255,292.5


0 53,611 53,611

575


Project Development Objective (PDO): Towards inclusive and open governments: Promoting women’s participation in parliaments, local elected councils and policy-makingIndicators by Component Unit Baselin

eCumulative Target Values Frequency Data

Source/Methodolo

gy


Collection


etc)Sep

2016 – Aug 2017

F

Sep 2017 –

Aug 2018

F

Sep 2018 – Aug 2019

F

Indicator 1: No. of assessments and guidelines completed and approved(e.g. Documents produced and endorsed

Quantitative

Existing

04 8 10 once Project progress reports


Assessments, reports, action plans, roadmaps, models of good practices or frameworks designed to enhance the enabling environment

Indicator 2: Decrees issued or structures established (e.g No. of internal regulations and policy proposals endorsed

Quantitative

Existing



Internal parliamentary operations, parliamentary secretariat which may include regulations or laws endorsed or entities, units or systems established to ensure gender sensitivity of the workplace and policy-making in Parliaments and local councils

Indicator 3: Improved effectiveness of social safety net and other programs targeting the most vulnerable

Qualitative

none n/a n/a n/a annually Project progress reports


Programmes and projects that support reform of government safety net systems, subsidy policies and other related programmes and thereby

576

promote more efficient and equitable allocation of resources

Indicator4 : Government bodies and institutions including Local governments supported (Parliament, local councils, government bodies and institutions) received support to conduct mapping exercise of the current situation

Quantitative

none




Indicator5 : No. of staff trained --representatives of parliamentary secretariat, parliamentarians, local elected officials and (potential) women candidates

Quantitative

none 100 400 600 annually Project progress reports



Indicator 6: No. of CSOs, women’s associations or youth groups engaged and empowered at the central and local level

Quantitative

Existing



Number of CSO’s, women’s associations and youth groups involved in creating an engagement strategy for public consultations, that partake in capacity building and “train the trainers” workshops

577

Yemen Projects

578

Reinforcing Rule of Law: Developing Judiciary Capacities

A. Basic Project InformationActivity Name: Reinforcing the rule of law: Developing the capacities of the judiciary in Yemen

Country Name: Yemen Name of Implementation Support Agency(ies): Arab Fund for Economic and Social DevelopmentOrganisation for Economic Co-operation and Development


OECD: Andreas Schaal/ Miriam Allam

AFESD: Ahmed Osman/Elfatih Elshazli

Email of ISA Project Leader: / [email protected] /[email protected] /[email protected] / [email protected]

Recipient Entity: Ministry of Justice – Yemen, Mr. Ghalib Alguidi, Head of Planning Department, [email protected]

Total Amount Approved by the Transition Fund (US$): USD 3,000,000


Total Amount Disbursed (Direct and Indirect in US$): Total Direct Costs: OECD: 596,430 USD

AFESD:0

Total Indirect Costs:

OECD: 126,000 USDAFESD:16,387.94 US


12/14/2013


2/1/2014


1/31/2017



Secondary Pillar(s): Inclusive Development and Job CreationCompetitiveness and IntegrationInvesting in Sustainable Growth

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of this Project is to build judicial capacity to improve integrity, the efficiency and effectiveness of the court system and access to justice. The Project will provide the necessary technical assistance for the Government of Yemen (GoY) in the implementation of the 2013 Action Plan within the framework of the strategy prepared by the Ministry of Justice in coordination with the Ministry of Planning and International Cooperation.




579






The political and security situation in Yemen continues to remain difficult and an impediment to the implementation of the project.

Since the last reporting to the Coordination Unit in January 2016, the OECD and the AFESD have intensified their relations at technical level with stakeholders and project partners. The Ministry of Justice and the Ministry of International Cooperation show continued ownership of the project and strong commitment to the cooperation, despite the deteriorating situation on the ground.

In particular, the Ministry of Justice participated in the Annual Meeting of the MENA-OECD Working Group on Open Government and the World Government Summit, organised on 7-10 February 2016 in Dubai. The Ministry actively shared its experience with delegates from around the world. In particular, following the meeting, the Ministry of Justice established bilateral relations at technical level with the Tunisian Prime Minister’s Office to exchange experience on the automation of Court Management Systems.

On 17-18 March in Tunis, the Ministry of Justice and Ministry of International Cooperation participated in the Annual Meeting of the MENA-OECD Working Group on Regulatory Reform. Yemen intervened in the meeting with an official presentation on the access to information law. Back-to-back with the annual meeting, the OECD organised a coordination meeting with Dr. Mohammed Alhawri (MIC, Coordinator MENA Transition Fund) and Ghaleb Al Ghwaidy (MoJ, Project Leader). It was agreed that:

1) The current political and security situation does not allow for an implementation of the project; however, all project partners remain committed to resume the project activities when the situation allows;2) The project partners will intensify their relations at technical level to ensure a continuous evaluation of the situation; 3) The Ministry of Justice and Ministry of International Cooperation will participate in fora organised by the MENA-OECD Governance Programme to the extent possible.

This approach was confirmed in a coordination meeting between the Ministry of International Cooperation and the AFESD in March 2016.

For the next reporting period, it is expected that Yemen will participate at high-level at the ministerial conference of the MENA-OECD Initiative on 3-4 October 2016 in Tunis. A focus of the conference will be on building resilience in conflict and post-conflict countries. The participation of Yemen would ensure valuable input to the conference and an integration of this MENA Transition Fund Project into future activities of the GoY post conflict.

The OECD and AFESD continue to monitor closely the situation in Yemen upon developments whether it would consider an extension, restructuring or indeed suspension of the project.


Actions to be Taken Responsible Party Expected Date of DeliveryClick here to enter a date.


Click here to enter a date.Click here to enter a date.


Component 1: Assessment - peer review of capacities of judiciaryThe objective of this component is an assessment and identification of the key challenges in the current situation regarding the judiciary and the functioning of the courts in Yemen.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 195,860Status of Implementation: As reported in July 2015, the assessment report has been drafted and finalised and therefore this component is completed. This report can provide the basis for further co-operation through, for example, the adoption of new policy guidelines, recommendations or even the negotiation of legal undertakings. The review can thus also serve as an important capacity-building instrument, since it is a mutual learning process in which best practices are exchanged.

Component 2: Enhancing judicial capacity and integrityThis component will support capacity building for judges, prosecutors and personnel on means by which the judiciary and court system can be improved to reduce delays, increase integrity and facilitate the operation of the rule of law. The component will consists of the following 3 Sub-components:Previous Rating: Moderately Unsatisfactory


Cost (US$): 1,005,450

Sub-component 2.1: Development and implementation

Status of Implementation: No further progress has been done since the last reporting round in January 2016 due to the situation on the ground.

Sub-component 2.2: Providing continuing education by a “train-the-trainers” programme for judges.

Status of Implementation: Based on the review (component 1), the OECD issued recommendations, included in the report, on the train-the-trainers programme to the Ministry of Justice. The jointly identified priorities of the programme will be rolled out through the project. Due to the current political situation, the start of the programme has been postponed until the situation allows for its implementation.

Sub-component 2.3: Increasing integrity - drafting a Code of Conduct for judges and prosecutors

Status of Implementation: No further progress has been done since the last reporting round in January 2016 due to the situation on the ground.

Component 3: Improving the judicial infrastructure and institutional capacities in the Ministry of Justice This component will support the Ministry of Justice in building the institutional infrastructure for research for the judiciary and the development of a forensic medicine commission. The component consists of the following 2 sub-componentsPrevious Rating: Moderately Unsatisfactory


Cost (US$): 882,380

Sub-component 3.1: Building capacities for the Centre for Legal and Judicial Research

Status of Implementation: No further progress has been done since the last reporting round in January 2016 due to the situation on the ground. Sub-component 3.2: Building capacities for the Forensic Medicine Commission

Status of Implementation: Based on the study visit in October 2014 to the Netherlands Forensic Science Institute, the Ministry of Justice identified the equipment to be procured under this component. The list of equipment was sent to the OECD and AFESD for consideration once the situation allows a continuation of the project implementation.

581

Component 4: Improving court management and access to justice

This component will support a more efficient and effective administration of the courts and management of cases to reduce prolonged litigation process, procedures in courts and facilitate access to justice through more efficient legal aid centres. The component consists of the two following sub-components.



Cost (US$): 690,310

Sub-component 4.1: Financial Management Systems of the court

Status of Implementation: Following up on the study visit to the courts of Dubai in February 2015, the IT expert from the Ministry of Justice in Yemen, and the OECD followed up on the discussions during the MENA-OECD Working Group meeting on 7 February 2016 in Dubai. In addition, the IT interlocutor of the Rule of Law project in Egypt met the IT expert from Tunisia and established bilateral relations on the automation of the case management system in Tunisia. In addition, the project aims to create synergies between the Egypt MENA Transition Fund Rule of Law Project through a series of peer exchange between Egypt and Yemen that will be organized in the second half of 2016.

Sub-component 4.2: Access to Justice

Status of Implementation: same as for sub-component 4.1


(US$)

(x)


(y)

Total (US$)


AFESD: 900,000 OECD: 1,874,000 USD 2,774,000


AFESD: 900,000 OECD: 576,445 USD AFESD: 900,000

OECD: 596,430 USD

Actual Amount Disbursed (c): AFESD: 0 OECD: 596,430 USD OECD: 596,430 USD

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 OECD: 634,837 USD

AFESD: 280,000USDOECD: 634,837 USDAFESD: 280,000USD

2017 OECD: 642,733 USD AFESD: 620,000 USD

OECD: 642,733 USD AFESD: 620,000 USD


OECD: 126,000 USDAFESD: 16,387.94 US

OECD: 0 USD OECD: 126,000 USDAFESD:100,000 USD

582

G. Results Framework and Monitoring Results Framework and Monitoring






Collection


etc.)

Feb 2014 –

Jan 2015

A

Feb 2015 –

Jan 2016

A

Feb 2016 –

Jan 2017

F

Indicator One:Number of judges, state prosecutors, public officials and court officers trained;

# of trained personnel 0 23 23 360 9 months Project Reports

MoJ/OECD Number of staff trained in the Project

Indicator Two:Number of thematic areas covered by the capacity building activities;

# of thematic areas 0 3 3 9 Yearly Project Reports

MoJ/OECD Number of thematic areas on the rule of law covered by the capacity building activities

Indicator Three:Number of national initiatives based on the activities of the Project;

# of national initiatives

0 1 1 3 Yearly Project Reports

MoJ/OECD Number of national initiatives

Indicator Three:Number of Study Visits;

# of study visits 0 2 1 1 Yearly Project Reports

MoJ/OECD Number of study visits organised under the Project

Indicator Four:Feedback from participants as collected through the activities’ evaluation forms.

Reports > %70Positive

> %70Positive

> %90Positive

9 months Project Reports

MoJ/OECD Evaluation of the activities using qualitative evaluation criteria

Indicator Five:Operational guidelines, training materials

# of guidelines, training materials and

0 2 2 9 Yearly Project MoJ/OECD Number of

584

and manuals in place developed with the support of the project

manuals Reports Operational guidelines, training materials and toolkits

Indicator SixNumber of users of the legal aid website

# of hit rates to the portal

0 hit rate

0 hit rate

0 hit rate

3600hit rate

Yearly Project Reports

MoJ/OECD Website is operational and hit numbers are counted



Intermediate Result indicator 1.1: Data collection

# of entities covered in the assessment

0 9 9 7 9 months Project Reports

MoJ/OECD Number of questionnaire, interviews and discussions by peers with relevant stakeholders

Intermediate Result indicator 1.2 : Descriptive report of the current situation of the Judiciary in Yemen

Reports 0 1 1 1 9 months Project Reports

MoJ/OECD Peer review and discussions with external peers


Intermediate Result indicator 2.1: Trained Judges, state prosecutors and court officers

Number of trainees 0 23 23 300 Yearly Project Reports

MoJ/OECD Number of staff trained

Intermediate Result indicator 2.2: Training materials

Number of topics covered in the workshops


MoJ/OECD Training materials are available

Intermediate Result indicator 2.3: Train the Trainers workshops/workshops

# of trained judges on knowledge /skills transfer


MoJ/OECD Number of judges

trained in the Project

Intermediate Result indicator 2.4: Build capacity for Judges and state prosecutors

Number of trained officials to utilize codes of conduct


MoJ/OECD Number of trained

Judges and

585

state prosecutors


Intermediate Result indicator 3.1: Build capacity to develop the legal aid and research centre

# of trainees 0 0 0 40 Yearly Project Reports

MoJ/OECD Number of staff trained

in the Project

Intermediate Result indicator 3.2: Establishment and Equipment of Forensic commission

# Checklist of Guidelines


MoJ/OECD Checklist of guidelines

on the general

principles and terms of references

of the Commission


Intermediate Result indicator 4.1:phases of financial management/case management systems development (total 3 phases)

Number of manuals Phase one

(assessment

phase)

Phase two

(advicephase)

Phase two

(implementation phase)

Yearly Project Reports

MoJ/OECD Number of manuals for implementat

ion of recommend

ations on systems

Intermediate Result indicator 4.2: Develop manual for access to justice

Number of manuals 0 0 0 1 Yearly Project Reports

MoJ/OECD Number of manuals for developing

legal aid/assistan

ce

586

Education for Employment

A. Basic Project InformationActivity Name: Education For Employment (e4e) Project for Yemen

Country Name: Government of Yemen Name of Implementation Support Agency(ies): Islamic Development Bank and IFC


Abdi Abdullahi

Amira Aboulkheir

Amy Refaat Abdel-Razek


[email protected]

[email protected]

[email protected]

Recipient Entity:

Ministry of Technical Education and Vocational Training


Rashed A. Al Thwary, Secretary General, Ministry of Technical Education and Vocational Training; Higher Education Council of Community CollegesP. O. Box: 15601, San’aTel: +967771521634,Email: [email protected]


4,582,000


0


280,355 (IFC share)


6/11/2014


9/1/2015


7/31/2016



Secondary Pillar(s): Inclusive Development and Job CreationEnhancing Economic GovernanceEnhancing Economic Governance


Project Development Objective: The main objective of the project is to support the GOY efforts to strengthen youth employability by bridging the skills gap. More specifically, the project will contribute to: (i) transforming and restructuring of the TVET sub sector; (ii) introducing a transformative practical work readiness training and re-skilling model for university and TVET graduates; and (iii) strengthening the capacity of the MOTEVT in planning, management, strategy formulation and implementation, thus enabling it to oversee and carry out the required reforms.

587





Not Applicable



The project has been put on hold, in agreement with the IsDB, since June 2015, due to Yemen’s internal situation. It was requested by the Government of Yemen that the project is cancelled and that funds are returned to the Transition Fund to be redirected to other priority projects related to the current situation.


Expected Date of

DeliveryClose the Project based on IsDB’s request and agreement IsDB & IFC 6/30/2016




Component 1: Reforming and Transforming the TVET sub Sector (IFC Executed).



Cost (US$): 1,850,000

Sub-component 1.1: Assessment for the Development of E4E Country Action Plan towards transforming the TVET landscape: The overall objective of this component is to identify E4E opportunities in Yemen, potential sectors intervention and identify potential partners for implementation

Status of Implementation: After presenting the Diagnostic Report completed in June 2015, it was decided to put the project on hold based on the country’s internal situation. Sub-component 1.2: Bridging the skills Gap: Based on the assessment findings, this activity will address the needs identified in terms of vocational training in priority sectors, linking different stakeholders who promote and deliver vocational training. Moreover, this activity will complement existing IFC initiatives in Yemen, in particular, the IFC Business Edge management-training program.

Status of Implementation: This activity was put on hold, in June 2015, due to the political situation in Yemen.Sub-component 1.3:


588

National Qualification Framework (NQF): To strengthen the delivery of the skills’ development programs and enhance the competencies of youth to match the requirements of the labor market, this activity will design a National Qualification Framework (NQF) for a pilot sector based upon identified priority sectors.

Status of Implementation: This activity was planned to start June 2015, based on the research findings. All activity was put on hold due to the current political situation.Sub-component 1.4:Stakeholders and investment seminars: The project will also conduct the following workshops: (a) kick of workshops and symposiums (3-4) to gather and harness relevant data and information from the different stakeholders, government, private sector, legislative bodies, media and employers; and (b) main workshop to disseminate findings of the report and get the support and consensus of the key stakeholders including the Government of Yemen, private sector and development partners. Status of Implementation:On finalizing the diagnostic report and due to the current political situation, the project was put on hold in June 2015.

Component 2: Invest in Youth Job Readiness and Retraining (IsDB executed)This component is designed to provide a pilot model for reskilling and retraining of university and TVET graduates by availing the relevant skills and competencies that are needed in the local and regional market. Specifically, this activity will strengthen the employability of 2,700 youth in Yemen through work readiness training with a focus on English and computer skills for university graduates and reskilling TVET graduates for specific vocational jobs (e.g. construction).


Current Rating: Unsatisfactory

Cost (US$): 1,816,000

Sub-component 2.1: Reskilling: Retraining 1,900 TVET graduates mainly in the construction sector, which is one of the potential growing sectors that are demanded by the domestic and regional market. The re-training program will be for a period 6 – 12 months. The programme will be carried out by specialised training and skills development agencies in Yemen. The reskilled graduates will have the opportunity to access labour market jobs in the construction sector in the local and regional labour market

Status of Implementation: This activity was put on hold since June 2015, due to the political situation, consequently the project was cancelledSub-component 2.2: Work readiness programme: this aims at strengthening the employability of 800 university graduates through carrying out the following activities: (i) training on English and computer skills; (ii) interpersonal skills training which includes teamwork, verbal/nonverbal communication skills, managing stress, conflict resolution and active learning techniques; (iii) training in job search techniques such as CV preparation, job interviews, social networking and negotiation of wages; and (iv) provide coaching, mentoring and advice for the trained youth in order to improve their access to employment opportunities; and (v) solicit youth internships with the private sector and industry.

589

Status of Implementation: This activity was put on hold since June 2015, due to the political situation in country. Consequently the project was cancelled.Sub-component 2.3:


Component 3: Institutional Capacity Building for the MOTEVT (IsDB Executed)The project will provide institutional capacity building and training to MOTEVT to strengthen its ability to plan, manage, monitor, evaluate and formulate TVET reform and strategies. This activity will include setting up an effective monitoring & evaluation, and TVET management information system. Moreover, it will identify skills required for training the trainers for the sector, train and create a cadre of trainers/teachers able to deliver using new training methodologies and approaches (student centred competency based).



Cost (US$): 400,000

Status of Implementation: No activity could be carried out due to the country situation. Consequently, the project has now been cancelled.

Component 4: Project Management and Coordination Function(IsDB Executed)A Project Management and Coordination Function (PMCF) will be established in the MOTEVT and will be responsible for the day-to-day project management concerning component 2 and 3. A Project Coordinator and a VET Expert will be hired by the project for about 24 months to support the implementation of the different activities for components 2 and 3.



Cost (US$): 266,000

Status of Implementation: No activity could be carried out due to the country situation. Consequently, the project has now been cancelled.


(US$)

(x)


(y)

Total (US$)


2,482,000 1,850,000 4,332,000


2,482,000 1,850,000 4,332,000




590

20152016 IFC: 280,355

IsDB: 0Project cancelled IFC: 280,355

IsDB: 0


IFC: 100,000IsDB: 150,000

IFC: 0IsDB: 0

IFC: 100,000IsDB: 150,000

591



Unit of MeasureBaselin

e




Collection


Sep 2014 –

Aug 2015

A

Sep 2015 – Dec 2016

F

Jan 2016 –

Dec 2016

FIndicator One: Diagnostic Assessment; reforming and restructuring of the TVET sub sector to meet the demand of the labor market and the economy completed.

Institutional reforms and new strategy is adopted by stakeholders (Binary)

No NA No YesMOTEVT and line ministries

IFC

Delivery report of IFCNumber of Education/training providers delivering program based on gaps identified through adoption of sectorial QF

Indicator Two: Re-skilling and work readiness (demand driven) pilot model developed for domestic and regional labour market

Pilot model, validated, (Binary) No NA No Yes MOTEVT and line ministries IsDB+MOTEVT

The Pilot Model to strengthen youth employability is set with the apparent successful placements.

Indicator Three: Capacity of the MOTEVT developed

Reforms, programs, and associated initiatives adequately designed (Binary)

No NA No Yes MOTEVT IsDB+MOTEVTMOTVET institutional capacity to carry expected reforms is built

Intermediate ResultsIntermediate Result (Component one): Diagnostic Assessment on Country for the Development of e4e Country Action Plan towards transforming the TVET landscape (IFC)

Intermediate Result Indicators One: the selection of the consultancy firm to carry out diagnostic assessment.

# of consultants selected

1 1 1 4 months IFC Report IFC The selection process for the consultant that will carry out the diagnostic studies Activity Completed.

Intermediate Result Indicators Two: the diagnostic report prepared

Analytical report 1 1 1 8 months Report IFC It is expected the report will be ready and validated. Report ready, but not validated due to the current political situation

Intermediate ResultIndicators Three : Education/Training providers adopting QF

Completion of the Qualification Framework in consultation with stakeholders

NA NA 3 12 months Report IFC Selection of private sector partner to work on the QF, Not conduced due to the political

592

and delivering programs based on gaps identified by the QF-

Identification and training of education and training providers to adopt the QF

situation Activity on hold Number of education/training providers adapting the QF and undertaking capacity building – Activity on Hold

Intermediate Result (Component Two): Invest in Youth Job Readiness and Retraining (IsDB)

Intermediate Result indicator One: identification of the training agencies and beneficiary

# of training agencies selected for the training 3 2 3 6 months Reports IsDB/PMCF

The TOR and manuals of the training providers have been prepared but the selection process for the training providers could not be completed due to the country situation.

Intermediate Result indicator Two:Conduct the reskilling and job readiness training

# of graduates that completed the reskilling and Job readiness training

2,700 1,100 2,700

6 months Reports

IsDB/PMCF+ MOTEVT

The identification of the beneficiaries (students/Trainees) have been started in close consultation with the MOTVET. However, this activity could not start due to the country situation.

Intermediate Result indicator Three:Placement of reskilled and trained youth

# of graduates employed 1,755 755 1,755

12 months Reports

IsDB/PMCF+ MOTEVT+MOL

The identification of the beneficiaries have been started in close consultation with the MOTVET. However, this activity could not start due to the country situation.

Intermediate Result (Component Three): Institutional Capacity Building for the MOTEVT (IsDB)

Intermediate Result indicator One: M&E and Management information system (MIS) for MOTEVT

# of systems created 2 1 2

8 monthsMOTEVT reports

IsDB/PMCF+MOTEVT

The Terms of Reference of the project team and trainings of staff of the MOTVET were prepared.

Intermediate Result # of training providers

2 1 2 4 months Reports No activity was not carried out due to

593

indicator Two: Identification of training providers for capacity building

IsDB/PMCF+MOTEVT

the country situation.

Intermediate Result indicator Three: The capacity of the MOTEVT enhanced

# of staff trained 50 25 50 12 months ReportsIsDB/PMCF+MOTEVT

The MOTVET identified the number of staff to be trained but not started their respective trainings.

Immediate Results (Component Four): Project Management and Coordination Function (IsDB)Intermediate Result Indicator two: Recruitment of the PMCF staff

# of Staff recruited 2 2 2 4 months Reports IsDB + MOTVET

the Terms of Reference of the project team and trainings of staff of the MOTVET

594

Accountability Enhancement Project

A. Basic Project InformationActivity Name: Yemen Accountability Enhancement ProjectCountry Name: Yemen Name of Implementation Support Agency(ies): The

World BankName of ISA Project Leader: Francesca Recanatini Arun Arya

Email of ISA Project Leader: [email protected] [email protected]

Recipient Entity: Supreme National Authority for Combating Corruption (SNACC), Sana’a, Republic of Yemen


Afrah Badoylan, Chair, SNACC: [email protected]









Choose an item.Choose an item.Choose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The Project Development Objective is to enhance the capacity of targeted accountability institutions to provide access to information and to improve enforcement of the anti-corruption law.





595




Brief Summary of Project Implementation Status: The grant agreement was signed on July 10, 2014, became effective on August 28, 2014 and is expected to close by June 30, 2017. The project was launched on January 15, 2015 in Sana’a during an event attended by high-level Yemeni officials, including the Prime-minister, donors, members of the diplomatic community in Sana’a, and civil society representatives. Two Supervision Missions have been organized between August 11-14, 2014, and January 11-15, 2015. Implementation started and a priority Action Plan was developed including actions for each subcomponent of the 4 project components. The PMU prepared an implementation plan for each component and activity under the Project which clearly distinguishes actions related to: (a) Procurement; (b) Technical Assistance; (c) Capacity Building; and (d) Intermittent Execution. It was ready to be implemented with an already approved Procurement Plan.

The Bank has hired an experienced local STC as the Project Coordinator based in Sana'a, who would provide day to day implementation support to the Project. He is supported by headquarter based international consultant on governance and anti-corruption matters. The Project Management Unit (PMU) hired an Executive Director, Procurement Officer, Financial Officer, Secretary, Civil Society Coordinator, a Legal Expert, and a Monitoring and Evaluation expert. It is in the process of also contracting a Media and Communication expert for the PMU. The PMU established its office and procured the goods for it.

During the WB’s Supervision Mission in January 2015, the Chair of the Yemeni Supreme Judicial Council agreed to establish 2 judge benches in 7 Public Funds Courts in the country that will adjudicate only on anti-corruption cases. Moreover, the Chief of Staff of the President agreed to approve ICO’s core staff as an ad interim measure before the approval of its By-laws including the organizational structure. He also agreed to issue directions to line ministries to appoint information officers to respond to information requests from citizens. The procurement for part of the goods and equipment needed by the implementing agencies was initiated. At the same time, a series of activities to build the capacity of members of SNACC and YACC took place, specifically a study tour for SNACC officials to Romania and Slovenia, as well as for SNACC and YACC members to India. Furthermore, a workshop was organized on January 12, in Sana’a for SNACC members and senior staff on Project Scope and Design. A workshop was also organized to design the National Household Survey on Corruption and Quality of Service Delivery Survey in the Health sector.

However, the current political/security situation in Yemen and the Bank decision to suspend disbursements under the Yemen portfolio, including all IDA Credits and Grants and Grants administered under the Trust Funds as of March 11, 2015 has affected the implementation of the project. Specifically, the agreement reached with the Yemeni government during the 11-15 supervision mission on the measures to be adopted by the government and the technical expertise that the WB can provide to support these measures, particularly under Component 1 and 2 (supporting the SNACC and the setting up of the Information Commissioner Office) could not be implemented. It has also delayed the hiring consultants to provide technical assistance to SNACC and ICO, as well as the deployment of household surveys and corruption documenting activities on the ground by local NGOs. Due to the suspension of operations, the Bank could not extent the contract of the local consultant who was providing substantial support for the implementation of the project and who has been closely engaged with SNACC and all the other project beneficiaries since the suspension.

Nevertheless, SNACC has remained functional throughout the duration of the conflict and continues to request the Bank’s support for its activities. In December 2015 SNACC sent to the Bank an updated short list of priority actions selected out of the Priority Action Plan that was planning to implement and for which it requested Bank’s assistance.

As part of the portfolio review exercise, the TTLs conducted an assessment regarding the relevance of the project in the event of reengagement and concluded that the project would continue to be relevant in the post-conflict reconstruction phase. Although it would not need to be restructured, some project activities could be

596

re-designed, such as potentially change the focus of the survey to provide more information about the quality of service delivery in general; postpone the implementation of some activities that could prove to be politically sensitive/ require political traction such as the establishment of judge benches that will adjudicate only on anti-corruption cases in Public Funds Courts; postpone the implementation of activities regarding the drafting of by-laws until stable executive and legislative structures will be in place.



1/31/2016

2/15/2016

6/30/2016

C. Implementation Status of Components Component 1: Supporting implementation of the National Anticorruption Strategy and Action PlanPrevious Rating: Moderately Unsatisfactory


Cost (US$): 2,550,000.00

Sub-component 1.1: Establishing core systems and enhancing the institutional capacity of SNACC

Status of Implementation: All planned activities under this subcomponent have started. During the supervision mission conducted in Sanaa in January 11-15, 2015 activities and milestones were agreed with the implementing agencies. The following major priority actions were agreed with the counterparts during the supervision mission:• The selection process for the national and international expert positions to provide technical assistance to SNACC will be finalized as soon as possible.• SNACC will prepare legal amendments on: removing immunity to senior officials, providing investigative powers to SNACC, establishing anti- corruption courts, and other legislations as per NDC’s recommendations.• A comprehensive Training Plan will be prepared for judges who preside over corruption cases.• Two judge benches will be established in each of the seven Public Fund Courts in Yemen by a decree of the Supreme Judicial Council. The SCJ Chair will present the official request received from SNACC to Supreme Judicial Council for approval.• The Project will provide necessary furniture and office equipment for the SNACC office.• A Strategy to reduce Bribery in primary service delivery units of the Ministry of Health will be prepared and implemented.

At the same time:(a) SNACC informed the mission that it is facing financial difficulties, including for paying salaries, as well as over-crowdedness at their office location, lack of technological capacity, and staff shortcomings, such as absence of strategy experts in the legal department or insufficient number of investigators in the investigation sector. SNACC also faces obstacles with the Ministry of Finance, particularly at the lower employee level, for budget approval and transfer. There is also a lack of awareness within the SNACC and among citizens about the project and how it can assist the Yemeni institutions to increase accountability and transparency. SNACC has continued its activity throughout the conflict. It has submitted to the Bank a Statistics report including the most important corruption issues it looked into as well as the money recovered under corruption cases during the years 2014 and 2015. SNACC also submitted a report of activity following the visits of SNACC officials to Romania and Slovenia (November 2014) as well as India (January 2015). Furthermore is requesting the Bank’s support for activities under the project. To this end it submitted a list of

597

goods and equipment it needs to strengthen its logistic capacity as well as a priority list of actions to be funded by the project under this component the following 6 months.

Sub-component 1.2: Building the capacity of Judges and Prosecution Lawyers of the Public Fund Courts.

Status of Implementation: The ToR for an expert/institute to design a Training Program for Judges of Anti-Corruption Courts has been prepared. The position was advertised and EOI was sent to international institutes with expertise in providing such trainings. The selection process is ongoing.Sub-component 1.3: Training government officials of seven pilot sectors and COCA staff.

Status of Implementation: This activity has been put on hold due to suspension of disbursements and security situation that is preventing holding training courses in Yemen or sending out candidates abroad until the Bank team can re-engage with COCA and continue the discussion on this component that started before the conflict erupted (encourage specializations in sector audits, anti-corruption, forensic accounting and fraud auditing, etc.).

Component 2: Supporting the implementation of the Right to Access to Information (RAI) LawPrevious Rating: Moderately Satisfactory


Cost (US$): 1,275,000.00

Sub-component 2.1: Enhancing the institutional capacity of the Information Commissioner’s Office.

Status of Implementation: The implementation of RAI law is hampered by lack of staff at the ICO, which requires approval of by-laws and organizational chart by the government. The mission obtained the support from the Chief of Staff of the President for the approval of ICO’s core staff as an intermediate measure until the RAI by-laws, including an organizational chart, is cleared by the Ministry of Legal Affairs, for the appointment of an information officer in each line ministry and the creation of a nodal agency that will supervise the activity of the information officers in the line ministries. Following are some of the highlights of progress made thus far :- The ToR for a local consultant for developing by-Laws for the ICO was prepared, the position was advertised and the selection should be done as soon as the security situation allows for it.- An international and local consultant for preparing ICO’s organizational structure, Strategic Plan, KPIs, Job Charts, and OM will be hired. The ToR was prepared, the position was advertised and the selection process is ongoing. Consequently, ICO’s organizational structure was sent for approval to the Presidential Office. The TOR for procuring Accounting Software for the ICO was prepared and sent to ICO for approval. The Project will provide:

- Technical support in conducting survey for citizens’ awareness about the Right to Access of Information Law

- Necessary office equipment to the ICO (partial procurement was initiated before crisis).- Technical assistance in appointing the Nodal Agency and Information Officers in each line ministry

Sub-component 2.2: Building the capacity of government to effectively enforce application of RAI law.

Status of Implementation: Consultant to do Systems Study and design the MIS for monitoring information requests and their disposals at different ministries, departments, and agencies: not drafted yetSub-component 2.3: Conducting baseline and end-of-project surveys on information capacities and abidance of government institution to the RAI law.

Status of Implementation: Activity merged with the survey under Component 3/ Subcomponent 1Sub-component 2.4: Conducting multi-media campaigns for creating mass awareness about the right to

598

information

Status of Implementation: N/A yet

Component 3: Supporting the Yemen Anti-Corruption Coalition (YACC) in raising demand for good governance in 7 pilot sectorsPrevious Rating: Moderately Unsatisfactory


Cost (US$): 1,250,000.00

Sub-component 3.1: Documentation, Dissemination and Mediation in identified cases of corruption and poor service delivery

Status of Implementation: - Three months implementation plan including the estimated cost for the Per Diem and travel costs for

the observers and supervisors: cleared by the WB. After operations restart, YACC will prepare every three months in advance a three months plan with envisaged activities and CSOs involved, while trying to maintain a balance between participating NGOs and involve all of them in activities.

- YACC organized elections for the YACC chair in February 2015. - Conducting national survey on citizen’s perceptions and experience in corruption in pilot sectors: A

workshop was organized in Sana’a to receive inputs from national stakeholders on the questions to be included for the pilot sectors.Future activities planned under this sub-component included:YACC will prepare operational procedure for the flow of funds between the PMU and CSO Coalition for operating expenses. PMU to complete the procurement process of goods and equipment to set up office for YACC.A national Survey on citizen’s perception and experience in 7 pilot sectors to will be conducted with technical support from the project.A national Survey on citizen’s perception and experience of Quality of Service Delivery Survey (QSDS) for the Health Sector to will be conducted with technical support from the project.

- At the beginning of 2016 YACC sent the Bank a list of proposed activities to be implemented within the fund allocated to this component for the year 2016. Further action could not be taken by the TTLs due to the suspension of operations.

Sub-component 3.2: Creating mass awareness about the right to information by outreaching citizens directly

Status of Implementation: A workshop was organized in Sana’a to receive inputs from national stakeholders on the questions to be included for the RTISub-component 3.3: Piloting an assessment of the information responsiveness of ministries

Status of Implementation: N/A

Component 4: Project ManagementPrevious Rating: Satisfactory Current Rating: Moderately


Status of Implementation: Core staff of PMU appointed, PMU office established in a new rented building, new office equipment and furniture purchased and deployed. PMU is still functional despite the situation on the ground.The PMU was also staffed and equipped with necessary goods and equipment and has enough founds in the DA to keep active (cover salary and operational costs) for at least two years.

599

The PMU has continued to function throughout 2016 while the conflict situation persisted. The WB team has maintained a constant dialogue with the PMU Executive director through conference calls. Furthermore, the PMU had regular meetings with SNACC and the other project beneficiaries trying to identify what activities, if any, could be implemented while the conflict was ongoing and the Bank’s operations in Yemen suspended. PMU also submitted the regular financial report.




Approved Amount for Direct Project Activities:

6,000,000 0 6,000,000

Amount Received from Trustee:

6,000,000 0 6,000,000

Actual Amount Disbursed: 799,613 0 799,613

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 700,000 700,0002015 TBD TBD TBD2016 TBD TBD TBD2017 TBD TBD TBD20182019


388,111 92,389 480,500

600


NOTE: The cumulative target values need to be revised. Due to the conflict situation the target values for 2015 were not achieved as the project and its components could be implemented as planned

Project Development Objective (PDO): Enhance the capacity of targeted accountability institutions to provide access to information and to improve enforcement of anti-corruption law.


MeasureBaseline


Frequency

Data Source/

Methodology


Description (indicator definition etc.)Jul

2014 – Jun 2016

A51

Jul 2016 – Jun 2017

F

Jul 2017 – Dec 2017

F

YR4F

YR5F

Indicator One:Pilot ministries that adopted the recommended changes in the existing business processes to prevent corruption and leakage of public finances

Number 0 N/A 4 7 N/A N/A Annual Diagnostic study of corruption in pilot ministries

Executive Orders issued by the pilot ministries

SNACC

SNACC, pilot ministries

Diagnostic studies on corruption in pilot sectors will be conducted. At the same time, a national survey on citizen’s perceptions and experience in corruption will be conducted. The baseline therefore is zero. A total of 7 pilot sectors have been targeted. Hence, the end target is 7.

Indicator Two:Investigated corruption cases by SNACC in which prosecution is sanctioned by the AGO

Percentage

10 N/A 15 20 N/A N/A Annual SNACC and AGO reports

MoJ In 2012, SNACC had referred 255 cases to the Public Fund Prosecution However, the AGO prosecuted only 26 cases (10 %) in the Public Funds Courts. With enhanced capacity of, and coordination between SNACC investigators and AGO prosecutors, this proportion would rise.

Indicator Three:Citizens who are aware about their right to access information.

Percentage

<5 N/A 20 40 N/A N/A Annual Survey to be conducted by the ICO

ICO The RAI law has been passed in July 2012. The ICO has been appointed in July 2013. So far, there has been no focused effort to raise awareness. In consultation with the ICO, the baseline is estimated to be < 5%. With a large proportion of

51 Given the current situation on the ground in Yemen the team cannot evaluate the progress achieved during the past fiscal year601

rural population, it will be difficult to go beyond 40% coverage by project end.

Indicator Four: Citizens identified as the victim of corruption by the civil society have their problem successfully mediated and resolved by the YACC.

Percentage

0 N/A 40 60 N/A N/A Annual YACC and PMU reports

Independent impact evaluation

YACC will select 70 observers and 10 supervisors to document corruption cases in the field and will receive costs disbursement after the organize elections for YACC chair There are no identified victims of corruption yet. Thus, the baseline is zero.

Indicator Five: Legal amendments and Policy decisions approved under TACAP are adopted by Council of Ministers

Number 0 N/A 4 7 N/A N/A Annual SNACC, MoLA, CoM

MoLA All the legal amendments and policy decisions are in accordance with TACAP and NDC recommendations. Hence, 100% target has been set.


Intermediate Result (Component One): Supporting implementation of the National Anticorruption Strategy and Transparency and Anti-corruption Action Plan

Intermediate Result indicator One: Diagnostic study of form and manifestation of corruption in 7 pilot ministries completed.

Number 0 N/A 3 7 N/A N/A Annual Verify whether the report of diagnostic study has been finalized

SNACC SNACC has published the final report on the diagnostic study

Intermediate Result indicator Two: Decision Support System for the Asset Declaration Sector established.

Y/N N N/A Y N/A N/A N/A Annual Verify whether database management system is installed and operational

SNACC Output reports on the Asset Declarations.

Intermediate Result indicator Three: Management Information System for the Investigations and Complaints Management Sector established

Y/N N N/A Y N/A N/A N/A Annual Verify whether management information system is installed and operational.

SNACC Output reports on the Management Information System.

Intermediate Result indicator Four: Interactive website to disseminate and receive information on anticorruption and receive citizens’ complaints launched

Y/N N N/A Y N/A N/A N/A Annual Verify whether the interactive website is installed and operational

SNACC Output reports and anticorruption information on the website.

Intermediate Result indicator Five: Number of amendments to the anticorruption legal framework and executive

Number 0 N/A 4 7 N/A N/A Annual Verify whether the amendments in the anticorruption

SNACC Amendments in the anticorruption framework reflected in the applicable laws

602

orders drafted in accordance with TACAP and NDC resolution

framework drafted and submitted to the MoLA.

Intermediate Result indicator Six:SNACC officials trained in investigations, legal framework, database management and complaints management; and Officials of law enforcement agencies (Public Fund Court and Attorneys for Corruption cases) trained in the field of prosecution.

Number 0 N/A 160 200 N/A N/A Annual Evaluation of capacity of staff of SNACC in the field of investigation and complaints management and of law enforcement agencies in the field of prosecution

SNACC and law enforcement agencies

SNACC has enhanced Investigations procedures implemented by its staff andLaw enforcement agencies have enhanced prosecution procedures implemented by their staff

Intermediate Result indicator Seven: National Anti-Corruption Strategy is revised and updated

Y/N N N/A Y N/A N/A N/A Annual Verify whether the National Anti-Corruption Strategy updated for 2015-2018

SNACC New National Anti-Corruption Strategy for four years 2015-2018

Intermediate Result (Component Two): Supporting the implementation of the Right to Access to Information (RAI) law

Intermediate Result indicator One: Capacity of the Information Commissioner’s Office staff developed (staff trained)

Number 0 N/A 50 90 N/A N/A Annual Identification of gaps in capacity of Information Commissioner’s Office staff

ICO Gaps in capacity of ICO staff closed

Intermediate Result indicator Two: By-laws for Right to Access to Information Law developed

Y/N N N/A Y N/A N/A N/A Annual Verify whether RAI By-laws have been developed

ICO By-laws finalized and published by ICO

Intermediate Result indicator Three: Road Map for the RAI’s implementation, Operational manual, four year strategic plan for Right to Access to Information Law implemented

Y/N N N/A Y N/A N/A N/A Annual Verify whether ICO’s Operational manuals, four year strategic plan have been implemented

ICO Evaluation of effectiveness of implementation

Intermediate Result indicator Four: Knowledge of public officials increased on their obligations under the RAI law (officials trained)

Number 0 N/A 300 500 N/A N/A Annual Evaluation of capacity of public officials on their obligations under the RAI law

ICO Abidance of the 7 pilot ministries by the RAI law increased

603

Intermediate Result indicator Five: Baseline and end-of-project survey on citizen’s awareness on RAI law conducted

Y/N N N/A N/A Y N/A N/A First and the last year of the project

ICO, Independent Survey Firm

PMU An independent firm will be hired to do the survey.

Intermediate Result indicator Six:Multi-media campaign to increase mass awareness about right to information conducted

Y/N N N/A Y Y N/A N/A Throughout the project


PMU

Intermediate Result indicator Seven: Survey on information infrastructure and capacities in government institutions for abidance to the RAI law conducted

Y/N N N/A N/A N/A N/A N/A First year of the project


PMU An independent firm will be hired to do the survey.

Intermediate Result indicator Eight: An Information Portal for proactive disclosure of government information is launched

Y/N N N/A N/A N/A N/A N/A First year of the project

ICO PMU NIC is ICO’s recommendation for hosting and operating the portal. It needs to be checked with the NIC if they have the hardware and networking resources to do that.

Intermediate Result (Component Three): Three: Supporting the Yemen Anti-Corruption Coalition in raising demand for good governance in 7 pilot sectors

Intermediate Result indicator One: Pilot sectors in which victims of corruption and poor service delivery identified, their evidence recorded and case study documented

Number 0 N/A 6 7 N/A N/A Annual Verify whether the case study report Victims of corruption and poor service delivery have been finalized

YACC YACC has the final case study reports and documentary film.

Intermediate Result indicator Two: Case Studies of victims of corruption and poor service delivery in the pilot sectors are disseminated

Number 0 N/A 20 35 N/A N/A Annual Verify whether the case study reports of victims of corruption and poor service delivery have been published and widely disseminated

YACC Assessment of the reach of media-vehicles used for dissemination amongst the target audience

Intermediate Result indicator Three: Volunteers of YACC received basic training in investigations, data collection, documentation of evidence, and presentation of findings.

Number 0 N/A 90 90 N/A N/A Annual Evaluation of capacity of concerned YACC’s staff in investigation and documentation

YACC YACC has enhanced investigations and documentation procedures implemented by its staff

YACC has enhanced

604

Field supervisors received advanced training in investigations, documentation of evidence and presentation of findings.

Number 0 18 18 of evidence

Evaluation of capacity of concerned YACC’s staff in investigation and documentation of evidence

investigations and documentation procedures implemented by its staff

Intermediate Result indicator Four: Identified corruption cases mediated with concerning government agencies

Percentage 0 N/A 30 30 N/A N/A Annual Minutes of Meetings with concerned government agencies

YACC Considering that this activity will start after the project starts, the baseline is zero. In the first year, the YACC will be busy in identification and scope of mediation will not arise. In the second year, it is expected that each of 17 CSOs would mediate at least 5 cases each. In the third year, they would mediate at least 10 cases each.

Intermediate Result indicator Five: Awareness created amongst citizens about their right to access of information (workshops/public meetings held)

Number 0 N/A 408 408 N/A N/A Annual Video recording of meetings/workshops

YACC Since the work has not started, the baseline is zero. In the first year each of 17 CSOs will conduct one meeting each per month, and in the second and the third years, they will conduct two meetings per month.


605

Enterprise Revitalization and Employment Pilot Project

A. Basic Project InformationActivity Name: Enterprise Revitalization and Employment Pilot (EREP)

Country Name: Yemen Name of Implementation Support Agency(ies): World Bank

Name of ISA Project Leader: Nabila Assaf Email of ISA Project Leader: [email protected]

Recipient Entity: Small and Micro Enterprise Promotion Service (SMEPS)

Name and Email of Recipient Entity Contact: Wesam QaidExecutive Director. Phone: +967734789631, Email: [email protected]


Additional Funds Leveraged and Source(s), if any (US$): None

Total Amount Disbursed (Direct and Indirect in US$): $2,416,193 (Direct=2,228.204 and Indirect= 187,989)


January 16, 2013


June 19, 2013


December 31, 2015Extended to December 31, 2016





Project Development Objective: To improve individual employability and SME capabilities for graduates and firms participating in a pilot scheme and inform related policies and programs.





Suspension of disbursement remains in effect on World Bank portfolio in Yemen, including the recipient executed component of the EREP. On February 10, the Bank initiated an assessment under OP7.30 on Bank’s “Dealings with de facto Governments”, which concluded that the security situation had deteriorated to the degree that the Bank was unable to exercise effective management over its projects. In light of this assessment, and pursuant to the legal agreements of IDA credits and grants, and trust fund grants, read together with the relevant provisions of the applicable General Conditions, and Standard Conditions, the Bank has suspended disbursements under the Yemen portfolio, including all IDA Credits and Grants and Grants administered under the Trust Funds as of March 11, 2015.

Confirmed project results remain as was previously reported which reflect progress made on the first round of project implementation, prior to the suspension. On PDO level indicators, the EREP project reported a 40% employment rate among participating youth in the project (YR 2 target was 20%) with 11% female participation

606

(target was 5%). Direct project beneficiaries exceeded expectations at over 4200 beneficiaries (includes graduates benefitting from training or internships and employees of benefitting firms). Under the Bank Executed component; the Bank managed to successfully complete the delivery of two analytical and technical reports, and was able to obtain appropriate data to conduct the impact evaluation associated with this pilot project.

The project was granted a one year extension, until December 31, 2016, from the MENA Transition Fund Steering Committee for both, the recipient executed component and the Bank executed component, but the recipient executed component remains suspended due to the World Bank’s continued suspension of its Yemen operations. As for the Bank Executed component, the remaining funds are being utilized to support the development of a policy note aimed at identifying priorities that would support private sector recovery post conflict. The BE component will also provide technical assistance (TA) support to the Social Fund for Development to design and implement a partial credit guarantee fund in support of MSMEs affected by the impacts of the war/crisis.

The successful implementation of the EREP project prior to the suspension informed the design of the Business Resilience Assistance for Value-adding Enterprises (BRAVE ) project which recently received funding approval from the MENA Transition Fund, and informed the design of the SME component of the recently approved IDA Yemen Emergency Operation.



Delivery of the identified analytical and technical work to be done under the Bank Executed component.

Bank 12/31/2016

C. Implementation Status of Components Component 1: SME Internship and Upgrading Program



Cost (US$): 3,720,000

Sub-component 1.1: Internships

Status of Implementation: No progress, suspension of disbursement remains in effect.Sub-component 1.2: SME Upgrading

Status of Implementation: No progress, suspension of disbursement remains in effect.

Sub-component 1.3: Project Management

Status of Implementation: No progress, suspension of disbursement remains in effect.

Component 2: Bank-executed activities: Impact Evaluation and Technical Assistance



Cost (US$): 430,000

Sub-component 2.1: Impact Evaluation

Status of Implementation: Completed and reported on previous progress reports.

Sub-component 2.2: Technical Assistance

Status of Implementation: The Bank managed to conduct and deliver two prefeasibility studies for expanding 607

financial inclusion through postal banking and another study on the prospects of introducing micro-insurance in Yemen which were both delivered to the client.

Two additional technical assistance (TA) programs have been identified in collaboration with the CMU and other GPs which aim to support private sector and SME recovery. The first is initiating analytical work that assess key aspects of the financial and private sector in Yemen since the conflict. The assessments would focus on assessing the status of the (i)Trade sector (international and domestic), (ii) Construction Industry, (iii) Financial Services and Banking, and (iv) Agriculture sector (v) General industry and services of the economy and how the current conflict have disrupted the operations of the private sector within those four key economic sectors. The assessments will inform a policy note on the short term (6 to 18 months) priorities to support the recovery and stabilization needs of private sector operations following the end of the conflict.

The second TA will provide support to the Social Fund for Development to design and implement a partial credit guarantee fund in support of MSMEs affected by the impacts of the war/crisis. The provision of partial credit guarantees aims to continue to assure the provision of finance to viable businesses, supporting their continued operations and growth.


(US$)

(x)


(y)

Total (US$)


3,720,000 430,000 4,150,000


3,720,000 430,000 4,150,000

Actual Amount Disbursed (c): 1,931,355 324,547.57 2,255,903

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End

2013 (actual) 0 403,833 403,8332014 (actual) 346,287 1,079,015 1,425,3022015 (actual) 345,236 53,832

399,0682016 0 63,865 63,865


194,342 249,258 443,600

608


Project Development Objective (PDO): To improve individual employability and SME capabilities for graduates and firms participating in a job-intensive SME support pilot scheme and to inform related policies and programs.


MeasureBaseline

Cumulative Target Values** Frequency

Data Source/Method

ology

Responsibility for

Data Collection


definition etc.)

Jul 2013 – Jun 2014

Jul 2014 – Jun 2015

Jul 2015 – Dec 2015

Jan – Dec 2016

FIndicator One: Participating youth employed(percentage women)

Percent(percent female)

0 - 20 percent F(5 percent)40% (11%) A

50 percent(5 percent)64% (28%) A

3 months and 6 months after the end of the subsidy

M&E System/ on-line self-reporting and interviews

Verification by independent follow-up visits for Impact Evaluation

SMEPS

World Bank

Employed in the same firm or another job (without subsidy)

Indicator Two: Participating firms with improved capabilities after completion of services

Number 0 - 30 percent F(45 firms, assuming all 150 firms expected to procure business services complete their plans)

65 percent F(195 firms, assuming all 300 firms expected to procure business services complete their plans).

63% A(103 firms

6 months after completion

M&E System/ follow-up visits

Verification by independent follow-up visits for Impact Evaluation

SMEPS

World Bank

Improved capabilities means the firm demonstrates improved product/ process/ or market access

609

out of 164 firms that completed their plans )

Indicator Three: Policies and programs utilizing the outcomes of the pilot project.

Number 0 - - F2 A

3 F2 A

6 months after completion

Aide Memoires

World Bank Policies and programs could be government strategy, scaled up project, or other program.

Indicator Four: Direct project beneficiaries (percentage women)

Number(Percent female)

0(2.5 percent)

600 F(3 percent)639 A

1,200 F(3 percent)4241 (23%)A

1,900 F(3 percent)7788 (23%)A

Comments: Number of beneficiaries is much higher than target mainly because the average number of employees of participating firms is 12 compared to the initial estimate of 3.

Semi-annually

M&E System

SMEPS Note 52


Unit of Measure

Baseline

Cumulative Target Values**(F: forecast, A: actual)

Frequency

Data Source/Method

ology

Responsibility for

Data Collection


etc.)YR 1 YR 2 YR3 YR4

52 Direct project beneficiaries counted as total graduates receiving at least basic training (1000 receiving basic skills) plus total estimated employees of participating firms (assuming average firm size 3 workers, 300 firms receiving services). The percent women baseline is based on the 2011 Yemen Investment Climate update which found less than 2% participation among labor force in small firms, and 11% women ownership among small firms. (Small firms were used as they are the most likely beneficiaries).

610

Intermediate Results (Component One): Successfully facilitate internships and business services to private enterprises.

Intermediate Result indicator One: Number of firms requesting business services

Number 0 200 F821 A

400 F1257 A

600 F1433 A

Ongoing Firm applications

Project Officers

Intermediate Result indicator Two: Number of firms participating in BDS program

Number 0 133 F189 A

266 F204 A

400 F404 A

Comments: Round 2 selection was completed but was suspended.

Ongoing Firm applications

Project Officers

Intermediate Result indicator Three: Number of firms procuring business services (with percentage women owned or managed tracked)

Number 0 50 F107 A11% female A

150 F165 A14% female A


Ongoing M&E System/ follow-up visits

BDP Advisors

Intermediate Result indicator Four: Number of youth applying internships (with percentage women tracked)

Number 0 300 F3371 A22% female A

600 F4654 A29% female A

1,000 F4796 A29% female A

Comments: interest of youth to participate in the project exceeded expectations.

Ongoing Youth applications

Project Officers

Intermediate Result indicator Five: Number of youth selected for interviews but not placed (with percentage women tracked)

Number 0 50 F 100 F

Comments: Indicator is not being collected because it was not assessed as relevant. Indicator will be dropped in restructuring.

200 Ongoing M&E System/ status reports

Internship Advisors

Intermediate Result indicator Six: Number of youth placed in internships (with percentage

Number 0 200 F161 A28%


400 F198 A37% female

Ongoing M&E System/ status

Internship Advisors

611

women tracked)

female A A

Comments: Progress relates to round one (where the target was 200). Round two data was not reported due to suspension.

reports

Intermediate Result indicator Seven: Number of youth completing internships (with percentage women tracked)

Number 0 - 180 F97 A29% female A


Ongoing M&E System/ follow-up visits

Internship Advisors

Intermediate Result indicator Eight: Percent participating youth with improved employability upon completion of the internship (with percentage women tracked)

Percent 0 - 50% F 75% F67% A35% female A

Once upon completion

M&E System/ follow-up visits

Internship Advisors

As measured by assessments from employing firms

Intermediate Result (Component Two): Successfully deliver technical assistance and knowledge.

Intermediate Result indicator One: Technical assistance notes delivered

Number 0 - 1 F2 A

3 F2 A

Upon completion of notes

Implementation Status Reports

World Bank

Intermediate Result indicator Two: Impact evaluation completed

Binary No - - Yes FYes A

Once Implementation Status Reports

World Bank

F: ForecastA: Actual

612

Preparation and Implementation Support Project for the Special Industrial Zone in Al-Hodeida

A. Basic Project InformationActivity Name: Preparation and Implementation Support Project for The Special Industrial Zone (SIZ) Project in Al-Hodeida

Country Name: Republic of Yemen Name of Implementation Support Agency(ies): Islamic Development Bank

Name of ISA Project Leader: Bakkar Ali Maasher Email of ISA Project Leader: [email protected]

Recipient Entity: Ministry of Industry and Trade (MoIT)


Abdullah Shaiban [email protected]





5/15/2013


7/31/2013


12/31/2016



Secondary Pillar(s): Investing in Sustainable GrowthEnhancing Economic GovernanceCompetitiveness and Integration


Project Development Objective: The following are the high-level Project objectives:

i. Delivery of comprehensive & implementable PPP-based package for Al-Hodeida-SIZ to the GoY

ii. Establishment of a legal entity ‘SIZ Administration Agency’

iii. Delivery of integrated Institutional Support and Capacity Building package to the ‘SIZ Administration Agency’

iv. Strengthening Technical Capacity of GoY & private sector in SIZ Development, Administration &Promotion


Unsatisfactory

Rating for overall implementation progress: Unsatisfactory

Summary Highlights Red-flagged for: ‘Unsatisfactory’ rating on meeting its objectives and on implementation progress and

only 2% of direct costs have disbursed in 2.5 years.

Challenges: The absence of a (fully) functional central government and the lingering security concerns continues to prevent project activities. Moreover, the government indicated that it would not prioritize this project in its short-term recovery strategy for implementation to restart.

Action taken: The project has been cancelled based on the official request submitted from the

613



Government of Yemen (GoY) via the Ministry of Planning and International Cooperation (MoPIC) to the steering committee dated 21 April 2016. In the same request, MoPIC referred to a new project that has been designed targeting the business resiliency of local value-adding enterprises (also known as ‘BRAVE’). The MENA Transition Fund Steering Committee (SC) took note of the cancellation decision by the GoY in its Ninth Meeting on May 29 and 30, 2016 (Rabat, Morocco). The SC also approved the reallocation of the SIZ funding towards the new project (BRAVE).


Since the war erupted, the Government of Yemen (GoY), working through its technical line ministries and in partnership with the World Bank (WB), the United Nations (UN), the European Union (EU) and the Islamic Development Bank (ISDB), has carried out a dynamic in-crisis preliminary Damage and Needs Assessment (DNA). The DNA quantified the impacts of the ongoing crisis on critical (social) infrastructure, physical assets and service delivery across key sectors in Yemen. While the findings of the DNA could feed into a potential full-scale Post-Conflict Needs Assessment (PCNA) once the conflict ends and a functioning authoritative environment is in place, GoY and its partners realize the immediate need for in-conflict interventions that support community resilience at humanitarian, social and economic levels. The Government of Yemen communicated to the MENA Trust Fund that it should consider a re-allocation of the project-resources from the SIZ Hodeida initiative to a new initiative that is more aligned with the urgent and immediate needs of the country. This does not exclude the notion that the former project (i.e. SIZ Hodeida) does not hold any long term value anymore neither does it imply that the new initiative may not be implementable in a situation where the conflict were to de-escalate.The new initiative seeks to provide support to one vital segment of Yemen’s society that has been able to continue operating during the war (albeit with much difficulty and strain): the private sector. Despite the current conflict, private businesses in Yemen were able to operate in the absence of stable, well-functioning government bodies and therefore presented attractive growth opportunity in such a fragile situation. Therefore, promoting private sector resilience and growth would be one tangible first step toward better national resilience and more diverse, robust economic recovery. In light of the current context given to short to medium term interventions that may immediately help alleviate the suffering of the local populace whilst simultaneously laying the ground work for the post-conflict recovery. In concrete terms the focus is to be redirected towards improving the business climate for private businesses, in particular the SME sector, because this pillar of Yemen’s society has long served as the country’s main driver of economic growth. The resiliency of Yemen’s SME sector operating in agriculture, garmenting and fishing is to be increased in such a way that business can become ‘economically re-activated’ and potentially even expand their productive capacity beyond pre-conflict levels. In this regard, the government of Yemen supported fully the efforts of the Islamic Development Bank Group (IsDB) through its private sector arm (ICD) and SMEPS - the private sector arm of the Social Funds for Development (SFD) – to develop the Business Resilience Assistance for Value-adding Enterprise (BRAVE) proposal as a pilot project with high potential for scaling across the wider business landscape of Yemen. The BRAVE development objective is to enhance the resilience of the private sector, as the engine of sustainable growth, against the impact of ongoing conflict.


Cancellation of the project ISA 4/30/2016

Confirmation of approval of the new project-request and reallocation of SIZ funds towards it.

MENA Transition Fund 6/30/2016

Transfer of funds from cancelled project to new project

ISA 7/30/2016

614

C. Implementation Status of Components Component 1: Project Preparation Activities Previous Rating: NA Current Rating: NA (delayed) Cost (US$)*: 1,050,000(a) Sub-component 1.1: Economic, Policy and Market Assessment Status of Implementation: An expression of Interest has resulted in a good turnaround from international consulting firms with 25 applications received. MoIT technical committee qualified 10 consortiums. The Final was cleared by the Supreme Tendering Commission IDB. RFP process will commence soon. (b) Sub-component 1.2: Site Evaluation, Master Planning and Costing

Status of Implementation: Actual implementation expected to start after component 1.1 based on demand projections of market assessment. It is expected to last for 2 months.(c) Sub-component 1.3: Social and Environmental Assessment Status of Implementation: Actual implementation expected to start after component 1.1 with overlap with 1.2. It is expected to last for 2 months.(d) Sub-component 1.4: Economic and Financial Analysis and Structuring

Status of Implementation: Actual implementation expected to start upon the completion of 1.2 and expected to last for 2 months (excluding financial structuring/risk allocation which will be coordinated with PPP contract design). (e) Sub-component 1.5: Development Strategy and Implementation Plans

Status of Implementation Actual implementation expected to start after the conclusion of former components and is expected to last for 1 month.

Component 2: Legal and Regulatory Advisory

Previous Rating: NA Current Rating: NA (delayed) Cost (US$)*: 350,000Sub-component 2.1: Legal Assessment

Status of Implementation: Actual implementation is expected to overlap with component 1.1. and will trigger the legal track activities. It is expected to last for 3 months upon selection of the legal consultant(s). (a) Sub-component 2.2: Institutional and Regulatory ModelsStatus of Implementation: Actual implementation is expected to start upon completion of component 2.1. It is expected to last for 4 months.Sub-component 2.3: PPP Concession Agreement

Status of Implementation: This component will reflect the outcome of legal and preparatory studies. It is expected to start in 2015.

Component 3: Institutional Support and Capacity Building

Previous Rating: NA Current Rating: NA (delayed) Cost (US$)*: 1,030,000Sub-component 3.1: Operational Systems

Status of Implementation: not yet startedSub-component 3.2: Capacity Building

Status of Implementation: not yet startedSub-component 3.3: Marketing and Promotion

615

Status of Implementation: not yet startedSub-component 3.4: Project Management Support

Status of Implementation: not yet started

Component 4: Consultative Meetings, Workshops, Dissemination

Previous Rating: NA Current Rating: Satisfactory Cost (US$)*: 250,000Status of Implementation: IDB PTF held the first consultative meeting with MoIT in Sana’a on 22 October 2013. Several meetings and workshops are planned in 1st half of November including the Ministerial Committee meeting, Technical Committee meeting, procurement workshop and other coordination sessions.

D. Disbursements of Funds for Direct Project Activities Country-Execution

(US$)

(x)


(y)

Total (US$)


2,950,000 N/A 2,950,000


2,950,000 N/A 2,950,000

Actual Amount Disbursed (c): 59,025 N/A 59,025

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)**

Year Jan-June Jul-Dec Total by Year End2016 0 0 02017 0 0 0


289,000 0 289,000

616


Project Development Objective (PDO): The following are the high-level Project objectives:

i. Delivery of comprehensive & implementable PPP-based package for Al-Hodeida-SIZ to the GoY

ii. Establishment of a legal entity ‘SIZ Administration Agency’

iii. Delivery of integrated Institutional Support and Capacity Building package to the ‘SIZ Administration Agency’

iv. Strengthening Technical Capacity of GoY & private sector in SIZ Development, Administration &Promotion


Unit of Measure

Baseline


Frequency



Description (indicator definition etc.)Aug

2013 – Jul 2014A

Aug 2014 – Jul 2015A

Aug 2015 – Jul 2016A

Aug 2016 – Sep 2016

Sep 2016 – Dec 2016

Indicator One:Parliamentary approval of the PPP concession, regulatory & institutional package of ‘SIZ Administration Agency’

Binary No No No No Yes YearlyProject Reports

MoPIC / IsDB-PTF

Indicator Two:Establishment of SIZ-SPV and concession awarded

Binary No No No No Yes Yes YearlyMoIT

ReportsMoIT/ IsDB-

PTF

Indicator Three:Operationalization of the ‘SIZ Administration Agency’

Binary No No No No Yes YearlyMoIT

ReportsGIA/MoIT

Indicator Four:Degree of Satisfaction on Technical Capacity Acquired per Agency at Sub-Component Levels

Feedback

RatingsNo n/a n/a n/a

At Least Good

At Leas

t Good

YearlyProject Reports

MoPIC / IsDB-PTF



Intermediate Binary No No No No Yes n/a One time Project MoIT/IsDB-

617

Result Indicator 1.1:Completion of Economic, Policy and Market Assessment

Reports PTF

Intermediate Result Indicator 1.2:Completion of Site Evaluation, Master Planning, Costing, Social / Environmental Assessment

Binary No No No No Yes n/a One timeProject Reports

MoIT/IsDB-PTF

Intermediate Result Indicator 1.3:Completion of Economic and Financial Analysis / Structuring


MoIT/IsDB-PTF

Intermediate Result Indicator 1.4:Finalize Development Strategy and Implementation Plans


MoIT/IsDB-PTF

Intermediate Result Indicator 1.5Endorsement of package by the GoY Ministerial Committee


MoIT/IsDB-PTF


Intermediate Result Indicator 2.1:Completion of Legal Assessment


MoIT/IsDB-PTF

Intermediate Result Indicator 2.2:Completion of

Binary No No No No Yes n/a One time Project Reports

MoIT/IsDB-PTF

618

institutional & regulatory model of a legal entity ‘SIZ Administration Agency’

Intermediate Result Indicator 2.3:Development of SIZ-PPP concession framework


MoIT/IsDB-PTF


Intermediate Result Indicator 3.1:Establishment of ‘Project Coordination Function’ under Agency


Administration Agency / IsDB-PTF

Intermediate Result Indicator 3.2:Agency to conclude legal agreements amongst various stakeholders to deliver one-stop services

Number No No No No 3 4 YearlyProject Reports

Administration Agency

/IsDB-PTF

Intermediate Result Indicator 3.3:Agency to complete Organizational and Operational Manuals

Binary No No No No Yes One timeProject Reports

Administration Agency

/IsDB-PTF

Intermediate Result Indicator 3.4:Launching Al-Hodeida-SIZ marketing campaign

Feedback

No No No No Yes One timeQuestionnair

e GIA /IsDB-

PTF

Intermediate Number No No n/a n/a 20 25 One time Project Administratio

619

Result Indicator 3.5: Deliver capacity building to Agency staff: Number of staff benefited from courses, workshops, exchange programs, etc

Reportsn Agency

/IsDB-PTF


Intermediate Result Indicator 4.1: Participatory Consultative Meetings and Workshops

Number(commulative)

No 4 6 12 16 20Yearly Project

ReportsMoIT/IsDB-

PTF

Parliamentary representatives will be invited

to join consultative workshops

Intermediate Result Indicator 4.2: Number of international participants from donor agencies and countries

Number No 0 6 6 6 n/a YearlyProject Reports

MoPIC/ MoIT/IsDB-

PTF


620

Crisis Support to Microfinance Institutions

A. Basic Project InformationActivity Name: Crisis Support to Microfinance Institutions in YemenCountry Name: Yemen Name of Implementation Support Agency(ies): IFCName of ISA Project Leader: Matthew Leonard Email of ISA Project Leader: [email protected] Entity: N/A (ISA executed) Name and Email of Recipient Entity Contact: N/A

Total Amount Approved by the Transition Fund (US$): $700,000

Additional Funds Leveraged and Source(s), if any (US$): $300,000



Project Implementation Start Date:August 1, 2016





Investing in Sustainable GrowthChoose an item.Choose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: To support two of the leading Yemeni microfinance institutions and enable them to better manage risk, build capacity and diversify products, and, ultimately, to increase access to finance to Yemeni entrepreneurs and small businesses during a period of conflict and transition.Rating for progress towards achievement of objective:

Not rated


Not rated

Brief Summary of Project Implementation Status: The Crisis Support to Microfinance Institutions (MFIs) in Yemen project was only recently approved (May 30) and there has not yet been a transfer of funds to the proper unit in the ISA. Therefore, there is little to report on to date. However, what we have reported on are a few activities that have taken place in parallel to proposal preparation and prior to approval or disbursement (due to the time sensitivity involved, at a time of conflict) and for which we have leveraged parallel funding (in many cases from the client’s themselves). These include knowledge exchanges with an MFI in Syria, advice on AMB’s post-conflict product design, and ongoing HR support to KIMB on its Internal Communication Audit.




621

1. Finalize procurement and begin implementation of support to AMB on SME product (finalizing product design, training staff and launching pilot-test; as well as providing support during the pilot subsequently)

IFC (and AMB) 9/30/2016

2. Work with AMB and KIMB on any NPL issues and how to resolve them

IFC (and AMB/KIMB)

12/31/2016

2. Work with KIMB on setting up and training staff on a new internal control framework

IFC (and KIMB) 12/31/2016

3. Work with KIMB on finalizing the Internal Communication Audit, developing a strategy, and working on procuring expertise to work with KIMB on rolling out a Performance Mgmt system


4. Begin to provide support on family governance and mobile-banking to KIMB, beginning with a first workshop and/or conference call



Component 1: Crisis Management: IFC will work with both institutions on different aspects of crisis management, from NPL recovery strategy to developing a functional internal control unit to limit risk and losses to its portfolio, and enhance sustainabilityPrevious Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 85,000Sub-component 1.1: NPL ManagementStatus of Implementation: N/ASub-component 1.2: Internal ControlStatus of Implementation: N/A

Component 2: Human Resources; A key aspect of crisis management and product development has been the adoption of best professional management practices across the organization in the area of Human Resources Management (HRM) Previous Rating: Choose an item. Current Rating: Moderately

SatisfactoryCost (US$): 115,000 (5,000 in costs incurred and not billed)

Sub-component 2.1: Reviewing and Strengthening HRStatus of Implementation: During the period of TF proposal preparation, IFC has worked with two consultant/specialists to consolidate findings, conduct analysis, and finalize an internal communication audit (ICA) at KIMB. A draft report has been circulated and a workshop is planned for the coming period to design a strategy to improve IC at the bank.

Component 3: Product Development: IFC will also work with both KIMB and AMB to develop new products and services well-tailored to clients’ needs.Previous Rating: Choose an item. Current Rating: Moderately

SatisfactoryCost (US$): 220,000 (10,000 in parallel spent thus far)

Sub-component 3.1: Crisis Product/AdjustmentsStatus of Implementation: IFC has provided comments and suggestions on AMB’s draft post-conflict product


622

protype, (during the period of TF proposal preparation). We have also organized a call to discuss our feedback with AMB to ensure that the product (and operations at large) would be sustainable and not conflict with other products in the AMB portfolio. Comments were reflected in a revised product pro-type due to be launched this period.Sub-component 3.2: New Products (SME)Status of Implementation: N/ASub-component 3.3: New Products (Housing)Status of Implementation: N/A

Component 4: Mobile-banking and further Capacity Building: Supporting KIMB on developing and rolling out its new mobile-money application, as well as further capacity building in Governance and Financial ManagementPrevious Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 200,000 Sub-component 3.1: Mobile BankingStatus of Implementation: N/ASub-component 3.2: Corporate/Family GovernanceStatus of Implementation: N/ASub-component 3.3: Financial ManagementStatus of Implementation: N/A

Component 5: Knowledge Management: In order to support both KIMB and AMB to better cope with the current political situation, as part of this project, IFC will facilitate exchanges between the MFIs in countries who have been through a similar situation, such as Syria and LebanonPrevious Rating: Choose an item. Current Rating: Satisfactory Cost (US$): 45,000 (5,000 in

parallel spent)Sub-component 3.1: Facilitating Knowledge Exchange - Status of Implementation: IFC has recently organized an exchange (during the period of TF proposal preparation), leveraging a parallel source of funds, between AMB and FMFI - an MFI in Syria that has undergone a similar situation to both institutions, to share lessons learned. The conference calls provided important tips and ideas to both institutions (e.g. how to organize staffing during reduced lending period, how to redirect financing to populations in more stable areas, and how to deal with NPLs) along with the reassurance that the steps they are taking are the right ones.

D. Disbursements of Transition Fund Funds for Direct Project Activities54 Country-Execution (US$)

(x)

Direct Cost55 for ISA-Execution (US$)

(y)

Total (US$)


N/A 700,000 700,000


N/A 0 0


N/A 0 0

54 Funds for direct project activities should include approved allocations for both country- and ISA-executed activities.55 ISA direct costs are those costs related to the ISA’s direct provision of technical assistance within the project. Please also refer to Paragraph 47 of the Operations Manual at (http://www.menatransitionfund.org/content/apply-funding)

623

http://www.menatransitionfund.org/content/apply-funding

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)56

Year Jan-June Jul-Dec Total by Year End2016 65,000 65,0002017 85,000 115,000 200,0002018 100,000 100,000 200,0002019 100,000 50,000 150,0002020 50,000 50,000

F. Disbursements of Funds for Indirect Costs (US$)Disbursed Available Total0 0 35,000

56 Enter actual disbursements for years past.

624


Project Development Objective (PDO): To support two of the leading Yemeni microfinance institutions and enable them to better manage risk, build capacity and diversify products, and, ultimately, to increase access to finance to Yemeni entrepreneurs and small businesses during a period of conflict and transition.


Unit of Measure

BaselineCumulative Target Values**

Frequency

Data Source/ Responsibility for

Data Collection


etc.)2016 2017 2018 2019 2020 Methodology

Businesses received business support/ advisory services or financial investment

Number 0 1 2 2 2 - Annual IFC IFC

Number of reports (assessment/surveys/manuals, etc.) completed


2-HR2-Internal Control2-Housing1-SME

Number of workshops, training events, seminars and/or conferences

Number 0 0 1 1 2 - Annual IFC IFC 2 KM events

Number of procedures /policies/ practices/ standards recommended for improvement/elimination

Number 0 1 5 10 - - Annual IFC IFC

1-NPL4-HR2-Internal Control1-M-banking2-Fin Mgmt

Number of recommended procedures /policies/ practices/ standards that were improved/ eliminated


1-NPL3-HR2-Internal Control1-M-banking1-Fin Mgmt


Intermediate Result: Institutional Capacity Building and Product Development

625

Business loans provided or guaranteed

Number N/A 2,500 18,750 41,250 75,250 - Annual MFIs IFC

Value of micro loans disbursed

USD N/A 2,000,000 12,000,000 27,000,000 52,000,000 - Annual MFIs IFC

Number of micro loans outstanding

Number 41,364 36,500 45,000 57,000 70,000 - Annual MFIs IFC

Outstanding microfinance loan portfolio of supported institutions

USD 19,090,015 11,000,000 17,000,000 22,250,000 32,500,000 - Annual MFIs IFC

Number of Deposit Accounts

Number 723,749 750,000 850,000 950,000 1,050,000 - Annual MFIs IFC

Value of Deposit Accounts

USD237,759,27

2230,000,00

0250,000,000

275,000,000

305,000,000 - Annual MFIs IFC

626