Egypt Projects - Home | Mena Transition Fund · Web viewAnticipated activities till project closure in Sept 2017 (approx. budget 800,000USD) Mapping of waste in 6th of October industrial

Project Progress Report

For the MENA Transition Fund

ANNEX TO THE MAIN REPORT

As of December 31, 2016

Table of Contents

Egypt Projects.......................................................................................................................................................................................... 5

Green Growth: Industrial Waste Management and SME Entrepreneurship Hub.............................................6

Support to MSME in Organic Cluster Project.................................................................................................................11

Support to Parliament: Building Capacity & Mainstreaming Inclusive Growth & Decentralization.....18

Strengthening Rule of Law: Effective & Transparent Delivery of Justice & Rule-making..........................27

Egyptian Central Bank Clearing & Settlement Depositary System for Government Securities...............36

MSME Support Programme in Egypt and the Social Fund for Development...................................................44

Logismed Soft Regional Project: Egypt Activities.........................................................................................................57

Supporting Public- Private Partnership (PPP) Execution in Egypt......................................................................65

Regional Integration through Trade and Transport Corridors: Egypt Activities...........................................71

Leveraging Regulatory Reforms to Advance Financial Inclusion in Egypt.......................................................76

Enhancing the Investment Climate in Egypt..................................................................................................................82

Energy Social Safety Nets Sector Reforms Technical Assistance Project..........................................................93

Inclusive Regulations for Microfinance.........................................................................................................................101

Towards inclusive and open governments: Promoting women’s participation in parliaments..........108

Building Capacity & Institutional Strengthening of Ministry of International Cooperation...................115

Enhancing Social Housing Governance..........................................................................................................................123

Jordan Projects................................................................................................................................................................................... 128

National Center for Innovation, Higher Council for Science and Technology...............................................129

Reliable Quality Water for Jordan....................................................................................................................................141

Promoting Financial Inclusion via Mobile Financial Services: Jordan Activities.........................................149

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

Regional Integration through Trade and Transport Corridors: Jordan Activities......................................172

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

Leveraging Regulatory Reforms to Advance Financial Inclusion in Jordan...................................................183

Towards inclusive and open governments: Promoting women’s participation in parliaments .........188

Jordan Competitiveness and Investment......................................................................................................................195

Support to Building Active Labor Market Program..................................................................................................205

Enhancing Governance and Strengthening the Regulatory & Institutional Framework for MSMEs..212

National Unified Registry and Outreach Worker Program...................................................................................219

Virtual Market Places for the Development of Export SME: Jordan Activities.............................................225

SME Policy Effectiveness Project......................................................................................................................................236

Jordan Support to Decentralization Efforts..................................................................................................................242

Jordan Economic Legislation Reform.............................................................................................................................250

Youth in Public Life: open & Inclusive Youth Engagement – Jordan Activities............................................260

Strengthening Municipal FM Systems in Municipalities Affected by Refugee Crisis.................................269

Libya Projects...................................................................................................................................................................................... 274

SME Development Strategy for Libya.............................................................................................................................275

Leading the Way: A Leadership Capacity Building Pilot Project.........................................................................285

Energy Sector Reform Technical Assistance................................................................................................................291

Finance and Private Sector Development Technical Assistance.........................................................................299

Morocco Projects............................................................................................................................................................................... 305

Regional Affordable Housing Project: Morocco Activities.....................................................................................306

Logismed Soft Regional Project: Morocco Activities................................................................................................315

Promoting Financial Inclusion via Mobile Financial Services: Morocco Activities.....................................323

Regional Integration through Trade and Transport Corridors: Morocco Activities..................................329

Towards inclusive and open governments: Promoting women’s participation in parliaments..........336

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

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

Local Government Support Program..............................................................................................................................366

Morocco Microfinance Development Project..............................................................................................................376

New Governance Framework Implementation Support Project........................................................................384

Virtual Market Places for the Development of Export SMEs: Morocco Activities.......................................392

Strengthening Micro-Entrepreneurship for Disadvantaged Youth in the Informal Sector.....................403

Strengthening Parliamentary Accountability and Oversight...............................................................................413

Youth in Public Life: Open & Inclusive Youth Engagement – Morocco Activities.......................................421

Tunisia Projects.................................................................................................................................................................................. 428

Enhancing governance and economic growth in Tunisia: transparency in public procurement........429

Enhancing Domestic Resource Mobilisation through Effective Tax System Design..................................434

Operationalizing Public Private Partnership in Tunisia.........................................................................................446

Regional Affordable Housing Project: Tunisia Activities.......................................................................................458

Logismed Soft Regional Project: Tunisia Activities..................................................................................................468

Regional Integration through Trade and Transport Corridors: Tunisia Activities.....................................473

Establishment of Tunisia Investment Authority........................................................................................................479

Strengthening the Employability of Youth during Tunisia’s Transition to a Green Economy...............487

Tunisian Energy Reform Plan (TUNEREP)...................................................................................................................496

Tunisia Social Protection Reform Support Project...................................................................................................502

Virtual Market Places for the Development of Export SMEs: Tunisia Activities..........................................510

Optimizing and Monitoring Employment in Infrastructure Investments......................................................520

Broadband Internet and ICT for Education Acceleration Project......................................................................527

Implementing Priority Actions for Competitiveness & Improved Public Services.....................................538

Work Readiness Programme..............................................................................................................................................548

Supporting the Design and Implementation of Economic and Social Reforms- Inclusive Growth......553

Youth In Public Life: Open & Inclusive Youth Engagement – Tunisia Activities..........................................561

Towards Inclusive and Open Governments: Promoting Women’s Participation in Parliaments........570

Yemen Projects................................................................................................................................................................................... 576

Reinforcing Rule of Law: Developing Judiciary Capacities....................................................................................577

Accountability Enhancement Project..............................................................................................................................584

Enterprise Revitalization and Employment Pilot Project......................................................................................593

Crisis Support to Microfinance Institutions.................................................................................................................602

Business Resilience Assistance for Value-adding Enterprises Project............................................................608

Egypt Projects

Green Growth: Industrial Waste Management and SME Entrepreneurship Hub

A. Basic Project Information Activity 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$): 1,054,500

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 conducted in June 2016, following which slight restructuring was requested and approved by the MENA TF SC in September 2016.

As a result of this restructuring, institutional support will be further enhanced, waste management activities will be expanded beyond the 10 of Ramadan Industrial City and a multi-pronged approach will be followed to promote entrepreneurship in waste management. Since September 2016, some additional contextual developments have occurred which may have a slight impact on the project as follows: (i) a new entity regulating SMEs will be created and the existing SME support agencies, including the innovation and technology council under the Ministry of Trade and Industry, which is the project implementing agency, may be merged

mailto:[email protected]


with other business support entities; (ii) some restructuring has been conducted in the Waste Council and a new head is in the process of being appointed- this will delay the cooperation with the council (iii) due to challenges and in processing project expenditures through the ENCPC/MoTI structure, direct payment by the Bank will be utilized for some of the activities envisaged till project closure.

Meanwhile, the following is the status of project activities to date:

1. The Mapping of Industrial Waste Assignment was finalized; a similar assignment was launched for the industrial area of 6th of October and is expected to be awarded towards end of January 2017.

2. The Platform for Waste Exchange was set up and is being operationalized. The platform can be viewed on www.iwexegypt.com

3. Cooperation with the industrial waste council is somewhat delayed because of the restructuring of that entity. An MoU has been drafted and is under review. Meanwhile, the waste council is conducting its own needs analysis to inform the capacity building activities under the project.

4. The marketing campaign is about to be launched to disseminate the outcomes of the project and encourage SMEs in accessing the waste exchange platform.

5. The entrepreneurship activities have been structured and are about to be launched. 6. Supervision Missions: To date, 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. A fifth mission is planned during January 2017 and followed by two others before project closure in September 2017.

7. Disbursement: The project submitted a new disbursement request which was processed in November 2016, bringing the overall disbursement rate to about 52%. It was agreed that this would be the last tranche disbursed into the special account; direct payment by the Bank will be used for some select activities to minimize the challenges in disbursement.

8. Procurement: The General Procurement Notice (GPN) was posted on the UNDB and the Bank’s website on May

27, 2014. Project management: All positions have been filled.

9. Audit: The first external audit report for the period Jun 2014-2015 has been submitted and deemed acceptable by the Bank. The second audit for the period July 2015- Dec 2016 is being conducted.

Anticipated activities till project closure in Sept 2017 (approx. budget 800,000USD) Mapping of waste in 6th of October industrial city – assignment under tendering. Operationalization of the waste exchange platform – assignment under award. Study Tour to UK – arrangements under planning. Entrepreneurship activity: mentoring and coaching of potential start-ups – assignment awarded. Entrepreneurship awareness and summer camp training – assignment to start from Feb – Aug. Development of Entrepreneurship Hub in 10th of Ramadan City – ToRs for consultancy assignment to identify

equipment needs, under development. Training on industrial symbiosis – assignment under tendering. Business to Business meetings with South African Clean Technology Production Center – arrangements under

planning.

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$): 660,000

Sub-component 1.1: Mapping in 10th of Ramadan City and development of inventory database of the industrial waste:Status of Implementation: Completed. 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.Sub-component 1.2: Mapping in 6th of October: Status of Implementation: Tendered and under evaluationSub-component 1.3: Operationalization of the waste exchange platform:Status of Implementation: under award.

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$): 160,000 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 briefStatus of Implementation: On-goingSub-component 2.4: Best Practices of International Waste CouncilsStatus of Implementation: On-going

Component 3: Raising Awareness and capacity building of stakeholders on IWEX Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 650,000Sub-component 3.1: Dissemination workshop on national and local levels

Status of Implementation: Four awareness raising workshop were implemented to date, and other workshops are planned till project closure in Sept 2017 (closing workshop, industrial symbiosis workshop, B2B workshop) Sub-component 3.2: Develop and launch a marketing campaign & project documentation

Status of Implementation: on-goingSub-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 early 2017 in the UK. Brazil. Arrangements are on-going.Sub-component 3.3: Website developmentStatus of Implementation: on-goingSub-component 3.4: technical training on green entrepreneurshipStatus of Implementation: Concept note approved; implementation to start in February 2017 and lead to summer camp for innovation in waste management for youth

Component 4: Implementation of Demonstration Projects

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$) 220,000 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: Establishment of Entrepreneurship Hub in 10th of Ramadan

Status of Implementation: ToRs are under formulation.Sub-component 4.4: Support Entrepreneurship Development

Status of Implementation: ToRs approved, and assignment to be awarded by mid-January 2017.

Component 5: Project Management

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$) 250,000Sub-component 4.1: Recruitments of staff:

Status of Implementation: completed.Sub-component 4.2: Purchasing of computers, equipment, and vehicle

Status of Implementation: Mostly completed. Only pending equipment for the training hub in 10th of Ramadan. Sub-component 4.3: Conduct independent external audit

Status of Implementation: First report approved; second annual audit is being conducted.

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): 1,054,500 0 1,054,500

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 252,500 252,500

2015 0 222,000 222,0002016 0 580,000 580,0002017 885,500 0 885,500Total 885,500 1,054,500 1,940,000

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

60,000 60,000 60,000

G. Results Framework and Monitoring

Project Development Objective: Develop a sustainable and integrated industrial waste exchange system 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 BaselineCumulative Target Values** Frequenc

yData Source/Methodology

Responsibility for Data Collection

Description (indicator definition etc.)

YR 1 YR 2 YR3 YR 4 YR5Indicator One: Establishment of industrial waste exchange system in pilot area that is utilized

Binary No existing system 1 system utilized (F)

4th year Project completion reports

ENCPC - PMU System is running and is utilized by registered industrial establishments

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

Binary No existing green entrepreneurship environment

1 (F) 4th 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 conducted

Binary Inadequate mapping of industrial wastes

0 1 (A) 2 (F)1 (A)

3rd and 4th year

Project progress report

ENCPC PMU 10th of Ramadan Mapping completed. 6th of October Mapping under tendering.

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

Binary No inventory of industrial wastes

0 1 (A) 2(F)1 (A)

3rd and 4th year


ENCPC PMU 1 inventory available. 2nd inventory to be completed with mapping.

Intermediate Result (Component Two): Policy recommendations towards an enabling environment for industrial waste exchange in EgyptIntermediate Result indicator One: Policy measures for regulating & monitoring the market for industrial waste exchange identified, formulated and adopted.

Qualitative Insufficient policy measures

0 Policy identified and drafted. (A)

Policy measures adopted

(F)

3rd and 4th year

Study and Consultations with stakeholders

ENCPC PMU Identified and under formulation following validation workshops.

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

Intermediate Result indicator One: No of trainees from stakeholders and support institutions

Number 0 0 70 (A) 180 (F) 3rd and 4th year

Project reports ENCPC PMU

Intermediate Result indicator Two: No of stakeholders participating in awareness raising activities

Number 0 0 100 (A)

150 (A) 300 (F) Annual Project reports ENCPC PMU

Intermediate Result (Component Four): Implementation of demonstration projects

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

Number 0

10 direct (F)

20 indirect (F)

4th 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 Niveen Gamea, Acting Managing Director of SFD

[email protected]


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

Total Amount Disbursed (Direct and Indirect in US$): 797,591


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 in a satisfactory manner particularly as the project aims to respond to the constantly evolving contextual developments. In September 2016, the MENA TF SC approved slight restructuring of the project to address some of the contextual developments and emerging needs that had occurred since project design. Following the restructuring, the project will give more focus to the institutional set up, as well as focus on the furniture and carpet clusters, by enhancing their collective efficiency, outreach and networking.

Since September 2016, some additional contextual developments have occurred with some impact on the project implementation: (i) a new entity regulating SMEs will be created and the existing SME support agencies, including the SFD which is the project implementing agency, will be merged together. SFD management has changed, for the fourth time since the launch of the project and the development of an MSME strategy (formerly an outcome of the project) has been appropriated by the Ministry of Trade and Industry and will no longer be developed by the SFD (and the project); (ii) the devaluation of the currency in November 2016 is anticipated to improve the potential for exports on the medium term, but has a direct bearing on the short-term on imports of the inputs used by the various clusters. As a result, it is expected that many of the small

enterprises may be forced to close their business, including from the pilot clusters. This strengthens the project’s need to implement activities to improve the competitiveness of the furniture and carpet clusters, including marketing and promotion to enhance sales and production. (iii) the New Damietta Furniture City is fast taking shape, a Management Company has been established and some activities have been relegated to certain entities, including the self-governance management structure which was one of the project deliverables. This is now being replaced by another assignment- an incubator for SMEs- in coordination with the new management of the Furniture City.

The following is the status of the project activities to date:

At the policy level: The project’s nationwide mapping of cluster’s is being uploaded on a specific platform under the SFD

website so that it can be availed for stakeholder’s to use to design programmes supporting clusters towards industrial development, employment generation and increased competitiveness. The project is in the process of improving the accessibility of the map, through the procurement of more advanced IT tools to allow for a real-time interactive platform. Various entities have requested the map, including the Central Bank of Egypt, the Ministry of Industry, and the donors.

The potential growth assessment of 3 clusters (Furniture, Hand-made carpets and Kleem) has been finalized. Findings of the study will be shared in an upcoming workshop.

The project has conducted a tender for the development of a National Cluster Strategy which will be awarded by mid-January. The final deliverable is expected in June 2017, and will include a coordination platform and links to the industrial strategy and the MSME strategy that are both under development.

At the cluster level: The government is proceeding fast with plans for the inauguration of the New Damietta Furniture City

which will serve the furniture cluster– and the project will be contributing through the design of an incubator to support the furniture feeding industry and small manufacturers. This will replace the assignment intended to set up a self-governance management structure for the New Damietta Furniture City as that is being established through other means.

The project has supported the furniture and hand-made carpet clusters in participating in 4 exhibitions held in Egypt, the last one being an international exhibition held in November 2016 in which 82 entrepreneurs participated from 9 NGOs from both carpet and furniture clusters. In addition to the wide promotion obtained, the networking conducted amongst each other, and being promoted as a collective entity, the entrepreneurs achieved a sales volume of over 600,000 EGP (approx. 70,000 USD) in 3 days, and potential contracts for the same amount. Participation in one other exhibition is planned before project closure.

To enhance the promotion of the enterprises within the pilot clusters beyond participation in exhibitions, the project will develop Quick Response (QR) code for approximately 100 enterprises from both clusters, as well as develop a website for each cluster. This assignment is ready for tendering.

Capacity Building at the Institutional level: Training and capacity building activities have been conducted for entities working on clusters in areas

such as Best Practices in Cluster Management, Marketing and Branding, Awareness raising for NGOs working with clusters, Export promotion for clusters, etc. The training brought together a large number of entities that are expected to soon merge together under one umbrella to support SMEs and clusters, following the recent announcement by the Minister of Industry.

Project Disbursement:

The project had disbursed USD 797,591 under the project and is now due for the final disbursement. The latter was transmitted to the Bank for USD 1,142,409 on December 28, 2016 and is currently under processing. Once processed, the project will be 100% disbursed. The project expects to be able to utilize all of these funds by project closure, June 30, 2017, and several assignments are currently being launched.

Missions: To date, 5 missions 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;(iv) supervision mission Feb 28-March 3, 2016; and (v) a mid-term supervision mission July 25-27, 2016. A supervision mission is planned for Q1 2017, followed by the project completion mission around June 2017.

Audit: Two independent external audits of the project expenses were conducted for the periods February –

December 2014, and Jan-Dec 2015, and both were found satisfactory by the Bank. The third external audit for the period Jan-Dec 2016 is about to be launched.

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 was recruited for a few months, and then resigned. She has been replaced by an SFD staff member.- A policy expert has been recruited.- 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$): 900,000

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 completed.

Sub-component 1.2: Draft Policy Recommendations for Inclusion in national strategies. The output will be a result of the following:

a. Multi-stakeholder validation workshops;b. Development of Cluster National Strategy; andc. Establishing Cluster Mapping Platform d. Production of documentary film

Status of Implementation: a. Multi-stakeholder workshops: This is an on-going activity.

b. Cluster National Strategy: Assignment tendered and to be awarded by mid-January 2017. c. Cluster Mapping Platform: new IT tools are being considered for the platform. To be procured during Q1

of 2017.d. Documentary film: ToRs are under finalization.

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

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 340,000

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

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

identification and management. c. Study tour: One has been fielded. No other are under consideration.

Status of implementation: a. Workshops/Roundtable for Awareness Raising: On-going activity. b. Stakeholder Capacity Development: On-going activity. Upcoming assignment to build capacities on

cluster management has been tendered and is expected to be awarded by mid-January 2017. c. Study Tour: Completed, with one study tour fielded to India.

Sub-component 2.2: Establish an Incubator for SMEsa. Support establishment of an incubator for New Damietta Furniture City (in replacement of identify suitable cluster management governance systems which is being done by another entity). b. Creation of a BDS pricing system.c. Procurement of Mobile Units to support clusters in remote areas.

Status of Implementation: a. Design of an incubator: ToRs are under development for tendering during Q1 of 2017. b. BDS pricing system: completed.c. Mobile Units under procurement.

Component 3: Support to Furniture and Carpet Cluster

Previous Rating: Satisfactory Current Rating: Moderately Satisfactory

Cost (US$): 400,000

Sub-component 3.1: Diagnosis of specific needsa. In-depth diagnostic study of the specific cluster identified; b. Cluster stakeholder consultations

Status of Implementation: a. Diagnostic Study: Completed.b. Cluster Consultations: Completed

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.b. Enhance outreach, marketing and promotion through participation in select exhibitions and QR coding.c. Entrepreneurship training for youth

Status of Implementation: a. BDS Training: Training is an on-going activity. Training has been conducted in export procedures, marketing and branding, financial management and resource mobilization through NGOs and for gender

mainstreaming and youth skills development. Additional trainings are envisaged during the upcoming period. b. Enhance outreach, marketing and promotion through expos: Targeted clusters have participated in 4 different exhibitions. This has improved collective efficiency, promotion, quality of products and has increased the sales volume of the participants. Participation in one more expo is anticipated before project closure. Another activity relates to the QR code and website developments for select SMEs in both clusters.c. Entrepreneurship training for youth: to be implemented in Q1 & Q2 in Luxor governorate.

Component 4: Project Management Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 300,000Sub-component 4.1: Recruitment of PIU staff

Status of Implementation: Project Manager recruited and contract extended to project closure. Admin Officer recruited and contract extended to project closure Recruitment of a policy expert completed. Recruitment of a field officer, completed. Reporting officer has resigned.

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

Actual Amount Disbursed (c): 797,591 0 797,591

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 0 101,8912017 1,142,409 0 1,142,409


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.

PDO Level Results Indicators*

Unit of Measure

Baseline

Cumulative Target Values**

Frequency

Data Source/Methodology

Responsibility for

Data Collection

Description (indicator definition

etc.)Jun

2013 - Jun

2014

Jul 2014 -

Jun 2015

Jul 2015 -

Jun 2016

(Jun 2016-

Jun 2017)

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

Qualitative

No regulation exist

Policy Options developed (F)

End of Project

Qualitative research

SFD/AfDB Project contributes to formulation of new policies

Indicator Two: Institutional set-up/initiatives established for clusters

Number None 1 2 (F)

End of project

Decrees, Public Announcements, etc.

SFD Cluster Devt Unit; Mapping Platform; Incubator for Furniture City; Website for furniture and export council.


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 (F) End of Project

Policy framework available and disseminated

SFD/AfDB Forecast: National strategy;

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

Number

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

SFD/AfDB Actual: National Mapping; Best practices; Potential Growth; Diagnostic Needs;BDS pricing.

Intermediate Result (Component Two): Institutional capacity built for key support institutions and stakeholders working with organic MSME clustersIntermediate Result Number 0 10 (F) 30 (F) 50(F) 100 (F) Quarterly Project Project

indicator One: number of stakeholders trainees

3 (A) 39 (A) 103 (A) 147 (A) reports

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

Number 0 2 (F)1 (A)

2 (F) 11 (A)

5 (F)81 (A)

100 (F)81 (A)

Annual Project reports

Project FEI, IMC, NGOs, SFD, Donors, Furniture Chamber, Export Council, Expolink,

Press, etc.Intermediate Result (Component Three): Support to Furniture and Carpet Clusters Increased

Intermediate Result indicator One: No. of MSMEs clustering towards collective efficiency supported

Number 0 0 0 47 (A) 100 (F)122 (A)


Project completion report

Participants in Expos

Intermediate Result indicator Two: No of BDS provided to MSMEs

Number 0 0 0 6 (A) 10 (F)9 (A) Annual

Project reports

Project Actual:4 Expos;5 Trainings (export, financial mgmt. gender; branding; expo displays;)

Pending:QR; Websites; financial/non financial. 1 Expo

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 General -North Africa, Mr. Mohammed El Azizi

[email protected]


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

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

Steering Committee Approval Date: 6/11/2014

Project Implementation Start Date:3/30/2015

Project Closing Date – The ISA intends to request a one year extension of the current closing date of 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


Following the launch of the project on 31 March 2016, a team of focal points from the Parliament was appointed. These comprise Ms. Zeinab Mobarak, Head of External Affairs of Parliament; Eng. Nivine El Hilaly, Head of Information Technology and Communications. The Ministry of International Cooperation (MOIC) also assigned Mr Ramy Afifi, as the Ministry’s focal point for the project. The Bank assigned Ms. Gehane El Sokarry as the dedicated Task Manager for the project. The Task Management responsibility was later reassigned to Mr. Budali Issahaku in May 2016.

On 26 October 2016, the Steering Committee of the Transition Fund approved a request from the Bank to



restructure the project. The restructuring was to ensure relevance of project activities to the current country context and to speed up implementation. The revised project activities by component are detailed below:

Component 1: Capacity Building of Parliament’s Permanent Staff, with a focus on staffers involved in Committees: The Parliament employs around 3500 staff working in professional and administrative areas, in addition to general services such as drivers, maintenance staff etc. This component will give priority to the professional and administrative staff whose work is directly linked to the provision of support to Members of Parliament through activities such as research and analysis, monitoring and reporting, documentation and archiving, etc.

Subcomponent 1.1: Capacity needs assessment: A Training Needs Assessment will be conducted to identify the capacity gaps and needs of the professional and administrative staff members working directly with Members of Parliament, with the objective of providing them with requisite training and skills development that are lacking to capacitate them to improve their performance as they assist and support the incoming elected members of Parliament.

Sub component 1.2: Capacity building programs: A set of dedicated capacity building programs will be implemented to address the gaps identified in the needs assessment. These could range from basic topics such as internet research and English language training, to more advanced technical trainings such as the drafting of legislation, media and communication, reading budgets and economic plans, parliamentary ethics, etc. As appropriate, local programs will be identified for on-shelf trainings, while for the more technical trainings international specialized bodies such as the Inter-Parliamentarian Union, may be used for specific capacity building activities in its areas of expertise. Overall, 800 persons are anticipated to be trained under this component.

Sub component 1.3: Field visits: A series of field visits within different governorates in Egypt will be arranged to ensure that Parliament staffers are adequately exposed to the development challenges in the country. The field visits will provide them with the opportunity to see how their desk work effectively translates on the ground. Visits will be conducted to development projects passed by Parliament in a variety of sectors such as energy, microfinance, agricultural rehabilitation, water and sanitation, health, and so forth.

Component 2 - Institutional development: This component was revised during the restructuring exercise and will now focus on the following:

Sub-component 2.1: Restoration of Rare Books: 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 and will enhance availability of reference material of historical and cultural relevance at the Parliament Library. The project will support the recruitment of consultants to review the status of the rare books and undertake the process of restoring them.

Sub-component 2.2: Information Technology Upgrade towards enhanced performance: There is a constant need to update and upgrade the Information Technology capacities used in the Parliament to enhance data collection, research, information retrieval and archiving, as well as to subscribe to international databases to allow access to specific information and data sources. This component will start with a basic IT assessment so as to enable identification and prioritization of the immediate needs in terms of IT equipment, such as computers, scanners, printers, for procurement. This component involves the procurement of IT equipment, Securitisation of the IT Network, Information Technology Security training, migration of content management e-system from IBM to Microsoft, Content Management training and upgrade and maintenance of Parliament’s website by Parliament and

citizens to access information.

Component 3 - Mainstreaming Social Inclusion and decentralization: Component 3 was also slightly amended following the restructuring. The training of Parliamentary staffers and MPs who are members of relevant select-committees in mainstreaming social inclusion and decentralization will be conducted by the Parliamentary Training Centre (PTC) instead of a consultancy firm as originally proposed. The PTC has already started working and has held some training courses successfully. In addition, it has just approved a cooperation protocol with the Jordanian Parliament to train staff and members of the Jordanian Parliament. Using the PTC to deliver this training would further strengthen its mandate and deepen the on-going efforts at having a world class in-house training entity within the Egyptian Parliament that can deliver training and other capacity building support to the house in a sustainable manner.

Component 4 – Project management: A Project Implementation Support Consultant will be recruited for a maximum duration of one year to follow up and provide technical guidance and implementation support to the staff of the Project Coordination Unit constituted by Parliament.

Grant Basic Information:

Grant Approval Date June 11, 2014Grant Closing Date 30 September 2017 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 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$): 1,100,000Sub-component 1.1: Capacity needs assessment

Status of Implementation: A consultant has been recruited to assess the training needs of Parliamentary staffers and propose tailor-made training programmes and implementation process for the training programmes. The consultant has submitted an Inception Report and is expected to conclude the needs assessment exercise by March 2017. Subsequently, the actual training activities will be launched. Sub-component 1.2: Capacity building programs

Status of Implementation: Prior to the completion of the above-mentioned Training Needs Assessment, the Bank and Parliament have agreed on the need to upgrade the English Language skills of 69 Parliamentary staffers. The Bank is currently negotiating a contract with the British Council’s Office in Cairo to provide the training. This training is expected to be concluded by May 2017. 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$): 1,223,000

Sub-component 2.1: Rare Books study and restoration

Status of Implementation: The Bank has engaged the services of an individual consultant to review the status of rare books and recommend a process for their restoration. The study will be completed by March 2017 after which the actual restoration process will commence.Sub-component 2.2: IT upgrade

Status of Implementation: During the reporting period, the Bank deployed a multi-disciplinary team of IT and procurement experts to conduct a detailed Information Technology Needs and Capacity assessment of Parliament. This exercise provided clarity on Parliament’s IT needs. The Bank has already delivered 3 computers, 3 printers, scanner, toner and flash disks for the use of the Project Coordination Unit. In addition, the Bank has signed contracts with three suppliers to supplier computers, printers, scanners and other related IT materials to Parliament. Bids for IT security and other related materials were also launched during the year but there were no responsive bidders. These will be re-launched in the first quarter of 2017. 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 was discussed during a Mission to Cairo in December 2016 and will now be implemented in close collaboration with the Parliament Training Centre.

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 257,000Sub-component 3.1: Development of a dedicated training program

Status of Implementation: A Parliamentary Training Centre has been established while a Training Needs Assessment of Parliament is currently on-going with support from the project. Training on mainstreaming social inclusion and decentralization will largely be conducted by the Parliamentary Training Centre in the first half of 2017.Sub-component 3.2: Implementation of the program, through a series of inter-active workshops

Status of Implementation: Specific workshops will be agreed with the Parliament Training Centre in Q1 of 2017.Sub-component 3.3: Study Tour for 12 persons

Status of Implementation: Before the end of 2016, the Bank initiated discussions with Parliament on the possible locations for the study tours and the mechanisms to make the tours more impactful. The proposed study tours should take place in the first half of 2017.



Cost (US$) 160,000

Sub-component 4.1: Recruitments of Project staff:

Status of Implementation: As indicated in the restructuring Memo, An individual consultant will be

recruited as a Project Implementation Support Consultant. The ToRs for this consultant have been approved and the consultant should be recruited by the end of February 2017. Sub-component 4.2: Purchasing of office equipment

Status of Implementation: Given the changes in the staffing of the Project team in the Bank’s Office in Cairo from three to one consultant, the IT equipment procured earlier for the three consultants have been transferred to the project Coordination Unit in Parliament. The individual Project Implementation Support Consultant referred to above will be provided IT equipment from the Bank’s existing stock of equipment.


(US$)

(x)


(y)

Total (US$)


2,740,000 2,740,000


0 0

Actual Amount Disbursed (c):

0 10,960

E. 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 3,878 3,8782017 1,000,000 996,122 1,996,1222018 740,000 500,000 1,240,000Total 1,240,000 1,500,000 2,740,000


0 180,000 180,000


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


Unit of Measure

Baseline

Cumulative Target Values** FrequencyData

Source/Methodolo

gy


Description (indicator

definition etc.)Dec

2014 - Dec 2015

A

Jan 2016- Dec 2016

A

Jan 2017 - Sep 2017

F

Development Impact: Improved performance of Parliament

Proxy indicator:

Wastefulness of govt spending

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 Qualitative TBD - - Increase 1st year & Baseline AfDB

One:Performance of Parliament Staffers improved

following baseline survey

last year survey conducted upon project launch and project closure

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 - - 8 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

Baseline Performance survey conducted

Needs assessment conducted implemented

800 persons trained (40% women)

Annual Project progress report

AfDB project team

Intermediate Result indicator Two: Awareness raised on

Quantitative & qualitative

Weak linkages with realities on

- 12 field visits organized

Annual Satisfaction survey conducted

AfDB project team

local development issues

the ground. Performance survey conducted

& Project progress report

Intermediate Result (Component Two): Institutional Development

Intermediate Result indicator One: Improved access to historical and cultural information on Egypt

Qualitative All key ‘Rare Books’ restored at the Parliament Library

Consultants to review and restore rare books recruited.

500 copies of ‘Rare Books’ restored

Annual Project progress report

AfDB project team

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

Quantitative

Large IT requirements, no website;

Performance survey

Existence of operational IT equipment.

Website operational &

Performance survey conducted

Annual Project progress report & comparison of performance surveys

AfDB project team

Intermediate 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

- 75 trained; 6 briefs developed


AfDB project team

Intermediate Result indicator Two: Awareness on Best Practices from other

Number of tours; qualitative

No program exists

- - 2 study tours for 12 persons


AfDB project team

countries raised through Study tours

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] 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]



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 20,325

OECD: USD 719,863



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 the rule-making process. The Project will work with the MoJ to build capacities in legislative drafting and



mailto:[email protected]/[email protected]

strengthen mechanisms for better regulation.



Rating for overall implementation progress:


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 and a new President of the Court of Cassation in July 2016. 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. Component 2 with the Ministry of Justice is delivering with good results. Remaining sub-components are expected to be completed within the next 12 months. 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-date for the AfDB component, only two contracts have been paid so far (for internet services and some equipment such a photocopy machines, scanners etc.); all other activities are still under planning stages mainly due to weak capacity at COC to implement the activities. No major disbursements are likely until mid or end 2017 next year due to time to launch procurement process and once a decision is made as to what activities still need to be carried out as some progress has been made with regards to automation especially in area of IT through direct support from Ministry of Information Communication and Technology (MICT). Given the delay that impacts the project closing date and depending on the progress within the next months, the co-ISAs will consult with the beneficiaries and requestor to decide on further project options.

The OECD and AfDB closely coordinated with other Deauville Partnership countries and organizations, involved in Justice Sector, in particular the EU project “Support for the Administration of Justice (SMAJ).” The donor coordination meetings in the Rule of Law sector, in addition to OECD and AfDB regular meetings with donors, are excellent examples of developing a concerted approach of managing the implementation process without duplication or overlap between activities.

In addition, results of this MENA Transition Fund project were presented by judges from the Court of Cassation and delegates at the MENA-OECD ministerial meeting on 3-4 October 2016.

Actions to be Taken Responsible Expected Date of

http://www.oecd.org/mena/ministerial/

Party DeliverySupervision Mission by AFDB Task Manager to Cairo to discuss next steps on the automation activity: what has been done, what are the gaps and how can the project provide support

AFDB 2/15/2017

Final seminar under component 2.2, presenting the first draft of the legislative drafting manual.

OECD First quarter of 2017

Click here to enter a date.

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 was 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. To support the sharing of

international good practices, the Court of Cassation was therefore invited to the MENA-OECD Ministerial Conference on 3 October 2016 in Tunis to participate in a panel on the administration of justice. In addition, the action plan as prepared under this component, will draw on OECD data and practices.

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. with the action plan which is foreseen by early 2017.

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

Status of Implementation: The Court of Cassation is still experiencing issues with regards to implementing AfDB projects, it has experienced significant challenges in meeting critical steps required to start procurement process, develop TORs etc. The support staff from Ministry of International Cooperation are overburdened with working on other projects and so there has been a request submitted to the AfDB to recruit part time proc and financial management staff to help with the project. This will be reviewed once there is evidence on the next steps for the procurement process for automation activity.

An AfDB mission is now scheduled for end Jan/early Feb 2017, in order to prioritize 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 mission in Feb 2017 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: The AfDb has received request to commence basic IT training and advanced IT systems training for CoC It experts, this is in process of being procured and will help lay foundations towards moving to more advance IT based court management system. 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.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 Donor 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 study visits and seminars for the members of the Legislation Department. A total of 5 study visits were 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). .

On 18-28 July 2016, a study visit to Ottawa, Canada, was organized for 2 representatives from the General department of Legislation of the Ministry of Justice. The delegates benefited from an overview of the approach to legislative drafting in the federal Government of Canada and other relevant entities. The study visit has shaped further options for consideration for: 1) the development of a guide for legislative drafting; 2) The draft headings for the proposed Guide to Legislative drafting.

A seminar on drafting instructions in Cairo was conducted in August 2016. A final seminar under component 2.2 will take place in the first quarter of 2017. The seminar will present the first draft of the legislative drafting manual, including guidelines for consultation and regulatory impact assessments.

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.

The Ministry of Justice formed a working group that is in charge of preparing the legislative drafting manual. As of December 2016, 80% of the manual has been completed. In early 2017, the OECD will peer-review the first draft of the manual as prepared by 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 underway. In August 2016, an OECD expert participated in a 2-weeks stage to provide direct on-site operational support on the legislative drafting manual and specific legislation to the Ministry of Justice.

Sub-component 2.5: Database of legislation and best practices in legislative drafting (Government-executed)

Status of Implementation: N/A AFDB to provide information on the procurement note.

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$)


AfDB: 2,406,000 OECD: 1,500,000 3,906,000


AfDB: 2,406,000 OECD: 247,311 2,653,311

Actual Amount Disbursed (c): AfDB: US 20,325 OECD: 619,000 639,325

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 OECD: 250,000 OECD: 250,000 OECD: 500,000

2017 OECD: 301,000 AfDB: 646,000

OECD: 80,000 AfDB: 1,175,000

OECD: 381,000 AfDB: 1,821,,000


OECD: 100,863*AfDB: 0

OECD: 137 AfDB: 114,000

OECD: 101,000 AfDB: 114,000

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


FrequencyData Source/Methodology



definition etc.)Sep 2014 – Sep 2015

A

Oct 2015 - Sep 2016

A

Oct 2016 - Sept 2017

F

Indicator 1: Automation of the Court of Cassation

Quantitative

Not automated

n/a no 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 visits6 seminars

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 Design initiated

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 n/a 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 no yes 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 5 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 18 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 no 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


3/31/2018



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.


Satisfactory



The project progress has been considerable during 2016 with several activities completed or underway; CBE is fully committed to the project and has been supportive in maintaining the progress momentum. The EBRD project team conducted various on-site missions, two workshops with project stakeholders and organized numerous 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

1 The given disbursement number does not include the invoices for US$ 166,000 submitted by Thebes Consulting and SIA, which were received in December 2016 with payments to be made in January 2017.

working on the project. The Yield Curve Pricing Model (Sub-component 2.4), the legal & regulatory framework reform part (Component 5) and Scoping and Implementation support TA - Phase 1 (Component 1) were successful delivered, and the delivery of Component 1 Phase 2 is on-going according to plan. The procurement of core systems (except for 2.5) was concluded and a contract was awarded to SIA. The vendor has provided an extended implementation schedule to ensure successful implementation of the systems for the CSD. Accordingly, a request to extend the project closing date to end of March 2018 was approved by MENA TF. 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: finalized Project Management Office for CBE (AfDB funded and procured according to AfDB procurement rules):

delayed (TORs ready, Consultant selection in progress) System components: Core systems contracted and implementation started in December 2016. Procurement of the Electronic Trading Platform and the Data Warehouse sub-components is pending as

the decision of CBE is required to start the procurement process. Discussions with key stakeholders (i.e. MoF, EGX, and EFSA) are at an advanced stage and a decision is expected in Q1/2017.

The project management office sub-component which is funded by AfDB is delayed, mainly based on the fact that the first procurement process was unsuccessful and a new one had to be started. It is expected that the procurement process according to AfDB procurement rules will be finalized by CBE in Q1/2017.

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 a result, the Primary Market & Repo Auction system (Sub-component 2.1 and 2.3) the Secondary Market CSD & Collateral Management system (Sub-component 2.2), and Interfaces with other systems (Component 3) procurement was finalized and the contract awarded to SIA SpA. In October 2016, CBE met with the selected IT systems vendor "SIA" in Cairo to finalize the contracting of Lot 1 and 2 and plan in detail the system implementation based on CBE’s requirements.

Two system procurements are still pending, namely the Electronic Trading Platform (Sub-component 2.5) and the Data Warehouse & information Dissemination (Component 4), there are some decisions by CBE and key stakeholders still pending but expected in due course as agreed with CBE. The project has disbursed USD 704,216 and the majority of funds will be disbursed as soon as the IT system implementation fully kicks off.

The tender process for the component 1 project “Scoping and implementation support” (USD 600,000) was finalized in 2015 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 Phase 1 implementation is finalized and Phase 2 is under implementation.

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 mainly due to the budget being linked to implementation milestones of core system components which are planned to be delivered at the later stages of project implementation. Following the competitive bidding process of the core systems, the overall cost for Sub-components 2.1, 2.2 and 2.3 is a total of USD 1,185,600. The forecasted disbursement for 2017 and actual disbursements for 2016 is updated to reflect the considerable budget savings achieved through the competitive bidding process. Having said that, disbursements are envisaged to start accelerating in the coming months, as outlined below in section E, but larger disbursements will only take place

in the last 12 months of project implementation based on system implementation milestones.

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

Actions to be Taken Responsible Party

Expected Date of Delivery




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 and is under implementation. Full set of tender documents for the core system procurement were developed and approved by CBE. On-going support to CBE is provided by the selected consulting company according to the TOR and as planned.

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. Contract awarded to SIA SpA and project kick started in December 2016.Sub-component 2.2: Secondary Market (CSD & Collateral Management System)Status of Implementation: Pre-qualification of suppliers finished; RFP documents sent out to qualified bidders. Contract awarded to SIA SpA and project kick started in December 2016.Sub-component 2.3: Repo AuctionStatus of Implementation: Pre-qualification of suppliers finished; RFP documents sent out to qualified bidders. Contract awarded to SIA SpA and project kick started in December 2016.Sub-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 as tender process had to be re-launched.

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; bidding process was unsuccessful and re-launch considered.

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 was successfully finalized in October 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. Progress as planned.


(US$)

(x)


(y)

Total (US$)


3,510,000 0 3,510,000


3,510,000 0 3,510,000


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 379,809 157,423 537,2322017 776,388 776,388 1,552,776

2018 1,400,000 0 1,400,0002019 0 0 0


160,000 181,900 341,900


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)2

% 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) 3

% 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) 4

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 5

% 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) 6

Project Start - - - Weekly

Semi-Annual



Frequency of Publication


Intermediate Result indicator One:7

Automated Primary

Automated Primary

Central Bank of

Implementation

2 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components3 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components4 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components5 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components6 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components

Market Auction System 50% complete

Market Auction System fully completed in 01/2018

Egypt Manager

Intermediate Result indicator Two: 8

Automated Secondary Market Clearing and Collateral Management System 50% completed

Automated Secondary Market Clearing and Collateral Management System fully completed in 01/2018



Intermediate Result indicator Three:

Yield curve methodology analysis for Egyptian market complete

Yield Curve generation



Intermediate Result indicator Four: 9

Trading platform analysis for optimal design complete

Trading platform for government securities operational in 01/2018



Intermediate Result Indicator Five: 10

Analysis of optimal linkages

Local market linkages operational in 01/2018



Intermediate Result Indicator Six: 11

Design of warehouse and website

Data warehouse and debt capital markets website in 01/2018 operational



Intermediate Result Indicator Seven:12

Analysis of legal and regulatory set upRecommendati

Analysis of legal and regulatory set upRecommenda

Legal and regulatory requirements are consistent



7 Procurement will not be finished before Q4/20168 Procurement will not be finished before Q4/20169 Procurement will not be finished before Q2/201710 Procurement will not be finished before Q4/201611 Procurement will not be finished before Q1/201712 Analysis of legal and regulatory set-up is depending on planned market design

ons for change tions for change

across all modules

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 SFD

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 Issues

Project 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, there has been further progress on the project. Progress however has been hindered as a result of the evolving political landscape in Egypt, in particular with respect to SME strategy, which has resulted in changes to the implementation timetable of certain of the project activities and objectives.

The majority of consultants to be retained under Component 1 have been engaged 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 the second Phase (Phase II). Phase II will build on the experience and lessons 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. The implementation of Phase II will require the end date of the project to be extended. A restructuring memo requesting this change is being submitted alongside the present report.

With regards to Component 3, the envisioning and planning phases are largely complete, and the development and implementation phases are in their early stages. The project progress is assessed at 55%, with completion seen in September [2017].






C. Implementation Status of Components

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.


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. A new consultant had to be recruited in order to complete the task. The newly engaged Senior Policy Advisor prepared a first draft Policy Paper, which was shared with the International Consultant for review. The Policy Paper was also distributed among EBRD’s internal experts who provided their opinions on the National Strategy. The Senior Policy Advisor will reflect the comments in the Policy Paper and progress towards concluding the Policy Paper. The final version of the Policy Paper is expected to be finalised during the first quarter of 2017.

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 finalised in February 2016, presented and accepted by the SFD in the meantime. Recommendations will be fed in the aforementioned Policy paper. As mentioned above, the International Consultant is currently reviewing the first draft policy paper that was prepared by the Senior Policy Advisor.

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 should be taken to activate this sub-component at the earliest, and commence dialogue with the appropriate stakeholders.

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 authorisations would be requested online), 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 be formally discussed with the SFD management and approved.

4. An official presentation of the recommendation has been agreed with the SFD, however, the presentation has not formally taken place as a result of an SFD management change. We understand that a formal presentation is planned in the first quarter of 2017, subject to the availability of the SFD’s representatives.

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 85 women entrepreneurs out of a target of 60 carrying out 105 advisory projects with local consultants, out of which 81 have been successfully completed. 251 women have been trained under the programme and the team has successfully engaged with around 495 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 105 BAS projects

supporting 85 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 105 projects, 29 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 45 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; 2 training courses in Gharbia and Asyut delivered in 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 :

oo 22 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 5 services for bar-coding of products were provided with 50% discount. o 10 matchmaking opportunities was provided to linkage women products with other women clients or

NGOs

Ongoing Advisory Support (Coaching): The team started 8 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 has been starting pair a couple of mentees, where 17 women entrepreneurs have been engaged with CBF in four 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 251 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.

- Going Digital (6 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 to 116 women entrepreneurs in Cairo and Alexandria. 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.

- Keys to Financial Management (4rounds): 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 88 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: 43 projects have been evaluated one year after the project completion of which 74% are rated successful or highly successful; 88% of assisted enterprises have reported an increase in annual turnover with a median of 89%. 61% of assisted enterprises have reported an increase in number of employees, on average by 46%, creating more than 200 new jobs. 27% of assisted enterprises raised finance externally for more than EGP 29 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. Accordingly, under the programme, 28 women entrepreneurs secured more than a total of 29 million EGP in financing.

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. 26 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 495 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.

A joint visibility event took place in Hilton Alexandria Hotel in cooperation with SFD & Women Unit affiliated to Industries Federation, the event included 95 of existent and potential enterprises owned by 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 Advise for Small Businesses team ( ASB) 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. o A new training program titled ”Project Management” was developed and adapted to improve the management

skills Of SFD team. The training will be delivered on Jan 2017 at the SFD QH and will be attended by 15 Non- Financial Officers.

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 expand the pilot phase into other regions and continue delivery of advice to women-led enterprises and capacity building to the SFD. The below information outlines 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.

The EBRD will seek to 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 Management

4.) 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

Based on experience from the pilot phase, it is expected that the cost of sub-component 2.2 will come to EUR 785,000 (equivalent of USD 870,000), i.e. below the originally envisaged budget, due to a lower average cost of an advisory project. The EBRD will allocate for this purpose USD 812,500 from the MENA Transition Fund contribution, while the remainder is expected to be secured from the funds contributed to the EBRD by the European Union.

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 December 2016 (the date of the latest available progress report by the consultant), 83.19 % per cent of the project has been completed, up from 55 per cent in June 2016. The envisioning and planning phases of all three work streams that comprise this component are now totally complete. As for the work streams, the first work stream is completed and, the second work stream Azure will work on it and the development and implementation phases of the third other work stream are in progress.

Azure is Microsoft Cloud Solution platform (according to a new concept of Cloud Computing), SFD hosted all Preproduction and Production Servers on Microsoft Azure and has connection to Azure Environment through VPN Connection (Virtual private Network). SFD has subscription through MCIT to build its own Infrastructure (Servers, Storage, Network, Security, Connection, and licenses) on Microsoft Azure, this environment function is the same as (and more than) On-primes or Physical Data Center.SFD decided to use Azure due to unavailability of Physical Servers and Storages plus Software license that cost all (Hardware and Software) about 300.000 USD.

The expected completion date for this component has been pushed back from September 2016 to June 2017. Project delays have primarily related to availability of hardware, team 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 complete. As for the work streams, the first work stream is completed and, the second work stream Azure will work on it and the development and implementation phases of the third other work stream are in progress.

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 complete, and the implementation has begun in the second week of July 2016.

The automated management system includes 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): 292,722 675,977 968,699

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 270,241 143,362 413,6032017 400,000 400,000 800,0002018 400,000 575,301 975,301

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

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

153,200 38,880 192,080


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



Responsibility for Data

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

88

61

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 90 105 Ongoing SFD/EBRD EBRD

Intermediate Result indicator Two: Women trained in advanced entrepreneurial skills

0 10 31 122 251Ongoing SFD/EBRD EBRD

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

0 20 33Ongoing 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 yes 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: Stephen O’driscoll Email of ISA Project Leader: [email protected]

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 15 th 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.

In November 2016, the second Steering Committee was held in Amman. Participants from Egypt joined this meeting, which has reviewed the progress of the initiative at regional level and defined the guidelines for the 2017 activities.

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, presented to the stakeholders in a workshop in September 2016 and agreed. Final versions of the reports have been disseminated among country focal points in December 2016.

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 launched the training activities funded by the EU Commission as a first wave in May 2016. 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 is ongoing. The architecture of the IT system to support the observatories was designed this semester in Q4 2016(Fall 2016?).


Actions to be Taken Responsible Party Expected Date of DeliveryPublication of the report defining the characteristics and services of the Logismed logistics platforms and also the configuration of the network.

CETMO 3/31/2017

Promotion of the network of logistics platforms in Egypt.

CETMO 5/26/2017

Workshop presenting the final version of the diagnostic study of the training offer in logistics in Egypt.

GOPA 2/14/2017

Launching training activities in Egypt, following the recommendations of the diagnostic elaborated.

GOPA 3/1/2017

Meeting with the Egyptian MoT to define the support needed to the implementation of their national observatory.

CETMO 2/15/2017

Implementation of the activities defined to set-up the National observatory in Egypt.

CETMO 3/1/2017

C. Implementation Status of Components Component 1: LOGISMED Coordination

Previous Rating: Moderately Current Rating: Satisfactory Cost (US$): 314,387

satisfactorySub-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 this period was focused 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. Contacts with the General Authority for dry and land ports and with Suez Channel authority permitted to place them initiatives as candidates to be engaged in this network.In November 2016, the second Steering Committee of the Logismed soft initiative was held in Amman. Participants from Egypt joined this meeting, which has reviewed the progress of the initiative at regional level and defined the guidelines for the 2017 activities.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 agreed with the Egyptian authorities during this period. Final version agreed has been disseminated to the countries December 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 held in Barcelona the 19th September 2016. This workshop complemented the study, allowing the incorporation of 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 infrastructure initiatives to develop the logistics system in Egypt.

CETMO and the Egyptian authorities have screened all the possible existing and planned logistic platforms for their potential to be incorporated into the Logismed network.

Immediate activities for Component 1 include: Preparation of a second mission to exchange with the promoters of the logistics platforms initiatives and

present in more detail the concept of Logismed logistics platforms and network (CETMO). Study the best way to conform such network and the support to these initiatives.

Implementation of the road map for creating the Logismed logistics platforms network.

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. First version of the diagnostic report has been presented to the Egyptian focal points in November 2016. Comments from national representatives have been collected and are being incorporated to the report. In February 2017, a workshop will be held in Cairo to present the results of the diagnostic to the whole training and logistics community in the country and to promote their participation in the project. This workshop will also serve as kick off meeting of the specific training activities in Egypt.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. Diagnostic report includes the logistics platforms proposed to receive the training.Immediate activities for Component 2 include:

Finalisation of the Diagnostic report work and holding of its dissemination workshop (February 2017). Launching of the specific training activities in Egypt (consecutive to the end of the previous activity).

Component 3: LOGISMED ObservatoryPrevious 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 presented to Egypt during the Kick-off mission.Sub-component 3.2: Observe and analyze regional developments

Status of Implementation: The list of thematic areas and indicators of the regional Observatory has been agreed during the Second Steering Committee held in November 2016. 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, to be hold in February 2017. A second piece of work finalized and to be analyzed during the meeting is the study of statistical data production in Egypt that will be used to elaborate the indicators. While data collection is partially in place, the results of this meeting will let the definition of new activities for collecting data and also the technical assistances needed to produce new statistics required or to improve the quality of the data existing.Sub-component 3.3: Promoting the emergence of national observatories of logistics and transports

Status of Implementation: This subcomponent will start in February 2017 during a mission to Egypt. 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 resources 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. Awareness session on the need to create a National Logistics Observatory in Egypt.

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

(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




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

Logistics Performance Index (LPI)

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


FrequencyData Source/

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)

3(under study)

5Once per

year

Country planification /

Projects launched

Ministry of transport and

equipment

National structures are involved in the

promotion of the Logistic platform

offer

Intermediate Result:Component II: LOGISMED Training Activities

SCII.1: LOGISMED country Training ActivitiesSCII.2: LOGISMED platform Training Activities

PDO Level Results Indicators* Unit of Measure Baseline


Frequency Data Source/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 01

(under study)

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 ObservatorySCIII.2: Observe and analyze the region developments in logistic & transport SCIII.3: Promotion the emergence of national observatories of logistics & transports





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.

Supporting Public- Private Partnership (PPP) Execution in Egypt

A. Basic Project InformationActivity Name: Supporting Public- Private Partnership (PPP) Execution in Egypt

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

Name of ISA Project Leader: Khalid Hamza Email of ISA Project Leader: [email protected]

Recipient Entity: PPP Central Unit, Ministry of Finance of Egypt, Tower #2 – Ext of Ramsis str. Nasr City, Cairo

Name and Email of Recipient Entity Contact: Atter E. Hannoura, [email protected]

Total Amount Approved by the Transition Fund (US$): USD 2,406,200

Additional Funds Leveraged and Source(s), if any (US$): None

Total Amount Disbursed (Direct and Indirect in US$): None


5/30/2016


1/26/2017


1/31/2020



Secondary Pillar(s): Enhancing Economic GovernanceCompetitiveness and IntegrationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The Project Objective is to enhance the quality and reliability of public service provision in Egypt. In order to achieve this, the specific objective of this initiative is increase the ability of the Government of Egypt to process and implement private sector participation (“PSP”) in the provision of basic services and therefore to build sustainable capacity within the PPP Central Unit (“PPPCU”) to design, structure and implement PPP projects in the municipal infrastructure sector. The PPPCU will be better prepared to coordinate the PPP program in Egypt and have the capacity and knowledge and skills provide support and assistance to the involved Ministries.Rating for progress towards achievement of objective:



Brief Summary of Project Implementation Status: The implementation of the Project has been delayed by a few months due to the pre-occupation of the Ministry of Finance with the preparation and approval of the IMF programme which was approved mid-November. The IMF programme took priority as it dealt with solving key structural issues in the economy that hindered the implementation of PPP projects. One of the key issues addressed for example is that of the foreign currency availability and related black market. The introduced currency float and associated repatriation guarantee has increased investor confidence in the Egyptian economy and has already generated sizeable FDIs. This structural change will solve one of the key obstacles to PPP investments, namely that of the exchange rate and foreign currency availability and repatriation risk. Furthermore, the PPPCU is expected to play a pivotal role in the success of the IMF programme, especially in helping to reduce overall debt while delivering key infrastructure projects. Now that the programme is underway the PPPCU has given the Bank the green light to publish the procurement notice for the PPP consultants.

Due to the delay in starting the procurement for the PPP Consultants, a time extension may be required at a later

stage.



Publish the Procurement Notice for the PPP Consultants EBRD 1/26/2017

Request cash transfer from the Trustee EBRD 2/10/2017

Complete selection process for the PPP Consultants PPP Unit 6/1/2017

PPP Consultants mobilized PPP Unit/ EBRD 6/1/2017

C. Implementation Status of Components Component 1: This shall include training of key staff at the PPPCU, aimed at developing the Unit’s administrative and technical capacity throughout the project development and implementation cycle (e.g. project identification, preparation of feasibility studies, project designs, tender documents, procurement, project monitoring and reporting, etc.). The Consultant shall prepare a training plan for key staff of the PPPCU in the fields of PPP preparation and project finance which should include primarily on-the-job interventions with minimal discrete training. Project finance training will form a core part of this component to ensure that staff is able to set-up accurate, reliable, appropriate, flexible, structured and transparent models for project approval as well as to present to potential co-investors or lenders. The Unit will be in a position to work with experts in the field and determine whether a financial expert would be beneficial as part of the permanent staff in the PPPCU. Delegates will be able to understand financials to the level necessary to enable them to work on projects,, highlighting risks that could affect the project, including affordability, and its bankability as well as the design and management of fair contracts. Any training must be participatory and should use relevant practical materials along with illustrative and information case studies and examples. The Programme shall be extremely practical and allow delegates to work on examples of different models within a live project context.Previous Rating: Not Applicable Current Rating: Moderately

SatisfactoryCost (US$): 600,000

Sub-component 1.1: Capacity Building and training at the PPPCU will focus on the ability of the Unit to manage the processes of undertaking a PPP from inception to financial close, whether the managing partner is a line ministry or the Unit itself. This will involve the day to day support of the PPPCU in decision making, project planning and coordination, PPP processing, financial modelling and will result in considerable knowledge transfer.Status of Implementation: Not yet startedSub-component 1.2: Capacity Building at the satellite units in the line ministries to ensure that the information flow, regulations, processes and procedures are understood and adhered to at all points of the process. The sub-component will train relevant staff in the satellite units in the line ministries alongside the PPPCU and individually.Status of Implementation: Not yet started

Component 2: The PPPCU should be confident in managing technical, financial, legal and social/environmental expertise to foster the design and implementation of sound and bankable PPP structures in the municipal infrastructure sector in Egypt. Additionally, the Consultant will enable transfer of knowledge to the staff of the PPPCU and increase the cooperation and coordination between relevant stakeholders in the municipal services sector in Egypt, including the PPPCU, the Ministry of Finance, Ministry of International Cooperation (“MoIC”), utility companies and other relevant parties. The knowledge, know-how, procedures and methodologies developed during this assignment will contribute to the long term efficiency and sustainability of the PPPCU.Previous Rating: Not Applicable Current Rating: Moderately Cost (US$): 1,400,000

SatisfactorySub-component 2.1: Assist the PPPCU in managing the preparation and assessment of technical, financial, legal and social/environmental due diligence including: the preparation, review and update of feasibility studies and/or technical designs as required; financial analysis; ensuring project’s compliance with the national law and national environmental, social, health and safety, labor and public consultation requirements. It should be noted that the Consultant will assist the PPPCU to organize, commission and assess all PPP project preparation, but that project specific studies will be carried out by third-parties. The Consultants should work with the PPPCU to determine a small number of projects where PSP is sought and use these as training examples, pilot projects, to gain experience and exposure of such processes.Status of Implementation: Not yet startedSub-component 2.2: In relation to the PPP management, the PPPCU should be able to be aware of and coordinate their activities in relation to the capital investment (CAPEX) programme in the relevant sectors. The CAPEX programme is financed by different IFIs in the municipal services sector, and the PPPCU is responsible for including the definition of workflows and data information processing for all PPP business processes.Status of Implementation: Not yet startedSub-component 2.3: The launch and management of PSP tenders, including prequalification of tenderers, attendance to project meetings, conduct evaluation of applications and tenders, should be able to be confidently managed by the PPPCU. Assist selecting and nominating a preferred tenderer and in negotiating and signing a project agreement and any other legal documentation related to the project. The evaluation will help prepare the initial set of ‘value for money’ analyses taking into account capital and operating costs, project risks and the level of urban sector investment, with a view toward transferring this tool to the PPPCU. The Consultant will also ensure that the PPPCU are able to:

- Ensure that all critical contractual conditions are included in the legal documentation in accordance with best-practice infrastructure concessions, such as termination clauses, lenders’ step-in rights and tariff policies.

- Ensure that the tendering procedure and award of the PPP Contract is in line with and best international practices as well as local legislation.

- In respect to evaluation of bids, devise a proper process for the evaluation of tenders, including both the criteria and the process to be used. The process and the evaluation criteria (including any weighting) shall be described in the tender documents.

The above mentioned activities will be carried out by the PPPCU with the support of the Consultant on a number of pilot projects. Close attention will be paid by the Consultants to the progress and an iterative process adopted to ensure that lessons learnt are captured and taken into account.Status of Implementation: Not yet started

Component 3: The Consultant shall support the PPPCU prepare standard PPP guidelines and methodologies, including project documents, contracts and PPP policies and assist in identifying a pipeline of projects that can be implemented with PPP, in line with Egypt’s existing strategic plan. For projects that have been identified as potential investments in the sector, the Consultant will provide support to the PPPCU, for designing and structuring the projects and overseeing a PPP tendering process.

For the duration of the intervention, the Consultant shall support the PPPCU to monitor and evaluate ongoing projects and to take into account lessons learnt from these activities in project design going forward. Within the guidelines, the Consultant should include a section on lessons learnt and monitoring and evaluation techniques to ensure that the PPPCU can sustain active control over PPP projects and provide support to project counterparts and the satellite units.

To further ensure the sustainability of the sector, the Consultants will work with the PPPCU to determine how to build the capacity of firms to partake in PPPs. This component will propose and implement methods of communication to potential private sector partners on specific project opportunities but also educating partners on the mandate and processes of PSP and levels of participation.


Cost (US$): 270,000


(US$)

(x)


(y)

Total (US$)


2,270,000 0 2,270,000


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 End2016 - - -2017 - 400,000 400,0002018 500,000 500,000 1,000,0002019 470,000 400,000 870,000


0 136,200 136,200




MeasureBaseline





definition etc.)YR 1

2017F

2018F

2019F

Indicator One:PPP Projects reaching financial close

Project signings

0 1 3 5 Semi-annually

Project documentation

Consultants reporting to PPPCU/EBRD

Project signings

Indicator Two:Processing time of PPPs reduced

Months reduction from inception to financial close


PPPCU data Consultants reporting to PPPCU/EBRD

Months reduction from inception to financial close

Indicator Three:Quality of contracts signed improved

Consultants review


Consultants reports


Consultants review

Indicator Four:Government bodies and institutions including Local governments supported

Number of Units receiving support


Consultants reports


Number of Units receiving support

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


Intermediate Result (Component One):

Intermediate Result indicator One: Staff of the PPPCU complete training courses

Certification of training


Consultants and PPPCU reports


Consultants to devise certification methodology

Intermediate Result indicator Two: Staff of the satellite units complete training courses

Certification of training




Consultants to devise certification methodology

Intermediate Result (Component Two):

Intermediate Result indicator One: Management of project preparation

Analysis of due diligence




Ability to decide on structure following analysis

Intermediate Result indicator Two: Management of the tender process

Efficient and accurate processing




Project to reach financial close

Intermediate Result (Component Three):

Intermediate Result indicator One: Guidelines approved by relevant counterparts and endorsed

Ministerial approval

0 1 1 1 End year one complete

Ministerial endorsement

PPPCU to EBRD Guidelines for PPP management


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.





- 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 agreed by the promoter, Respective studies are being tendered during the period December 2016- January 2017 under EIB’s Framework consultancy agreement. Evaluation of tenders is scheduled during the first Quarter of 2017 and respective consultancy work to commence immediately after selection.

- In the meantime, the Regional Road Safety Action Programme covering Morocco, Tunisia, Jordan and Egypt (related to Component #1.2) has now been successfully completed in Egypt in November 2016

- Beyond that, Egypt signed an addendum to the Transtrac agreement in September 2016 to incorporate the Suez Canal Economic Zone Studies and to emphasize priority Transport corridors for development (see Addendum to Transtrac enclosed).

- 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) was kicked off in Egypt and the program was successfully completed in November 2016.

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

SatisfactoryCost (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 procured in December 2016, The Studies are expected to commence in February 2017 and March 2017 consecutively , with an expected duration of 7 months each.

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. Expected to be

submitted end January 2017.-

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


Activity proposed to be restructured (cf. separate restructuring note). - Egypt is currently exploring possibilities to develop intermodal corridors (e.g. the Alexandria-Ain

Sokhna multimodal corridor, the East-Port Said to Cairo corridor) as well as intermodal platforms and logistics zones (i.e. in particular at 6th of October, 10th of Ramadan and East Port Said). EIB, in close cooperation with the Suez Canal Economic Zone Authority and the General Authority for Land and Dry Ports (GALDP), is currently in the process of scoping an advisory programme mainly related to the development of these corridors including its accesses taking into consideration recent initiatives at the MOT. The TA will concentrate on infrastructure development, including associated studies and elements of institutional set-up and reforms, as well as human resources development to match the required demand.

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. Expected to be restructured in a note by end January 2017 after reassessment of the current security levels.

Component 3: Project Preparation, Management, Coordination, Monitoring and EvaluationPrevious Rating: Not Applicable Current Rating: Moderately

UnsatisfactoryCost (US$): 400,000

Status of Implementation: Activity proposed to be restructured (cf. separate restructuring note). MOT discussed with EIB that part of this fund is directed to the establishment of an Investment unit within MOT that is fully competent to deal with IFIs and present and evaluate Transport Investment project. Details of this requirement will be presented by MOT in their proposed restructuring note end of January 2017.

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

(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

AF

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

Total Amount Approved by the Transition Fund (US$): 950,000

Additional Funds Leveraged and Source(s), if any (US$): 71,380 (client cost-share)

Total Amount Disbursed (Direct and Indirect in US$): 279,755+ 22,601.5 (regional) = 302,256.5

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, under Transformation, IFC worked with DBACD on completing process maps and digital archiving, while reviewing its individual loan with an aim to help DBACD upscale to very small enterprise lending. IFC also began implementation of its new engagement with Fawry (an innovative mobile payments operator that is interested in lending), including providing support and inputs to the product development process. Under Risk, work also continued on setting up the framework for Al Tadamun’s Risk Management department (including advancing on credit and operational risk), in addition to loan officer and financial analysis training, and helping the MFI develop its new business plan. On responsible finance, IFC moved forward with a detailed project plan and begun making arrangements with EFSA (for a workshop) and DBACD (for an assessment). Finally, IFC worked with Sanabel to organize its annual conference (Nov 2016) and organized a risk managers’ roundtable on the sidelines, assembling staff from 7 key MFIs in the region to share lessons learned.


Expected Date of

Delivery

Finalize all work on the initial risk framework, credit and operational risk, as well as reporting. Complete the strategy and business plan assignment.

IFC (and Al Tadamun)

6/30/2017

Finalize work with DBACD, including Risk follow up, Digital archiving, Process maps, and initial work on upscaling to VSE.

IFC (and DBACD)

6/30/2017

Continue to provide support to Fawry as it fine tunes it product and begins the pilot

IFC (and Fawry)

6/30/2017

Conduct one Smart Assessment (client protection) with a partner in Jordan and a workshop in collaboration with Tanmeyah and possibly the Central Bank

IFC (Smart Campaign and Tanmeyah)

6/30/2017

Conduct ESOP and transformation survey with Sanabel with regional MFIs IFC (and Sanabel)

6/30/2017

C. Implementation Status of Components Component 1: Risk Management

Previous Rating: Satisfactory Current Rating: Satisfactory 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 continued implementation on several modules of the Risk Management component. The initial design of the credit risk dashboard was completed and two iterations of the Risk Report were developed by the Tadamun Risk Team and reviewed by IFC. Training workshops were conducted for senior and middle management on completing the Self-Assessment Templates (SATs)/Operational Risk Registers as well as on understanding Incident Reporting and two departmental SATs (Operations and Finance) were completed during this reporting period with the support of an Operational Risk Consultant.

Further related TA activities with Tadamun include: conducted a needs assessment, developed a curriculum, delivered a TOT as well as shadowed Tadamun trainers for the Loan Officer’s Training Program. Three SEEP Financial Analysis Training Workshops were also delivered during this period by a certified trainer and a total of 86 Tadamun staff were trained. Finally, the IFC project team (led by the MF Specialist) began work on developing Tadamun’s 5-year Business Plan with three missions taking place during this reporting period – the first to meet with members of the Board, the second to meet with Tadamun staff (HQ and field) and the third one featuring the Business Plan Workshop with Senior Management as well as the development of financial projections. The plan is in draft form and will be completed in the coming 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


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 worked with DBACD on the development of process maps for its remaining departments, building on the expertise gained from the 16 pilot processes developed previously, and began to work on digitally archive these processes. Obtaining the software and completing the training is expected to take place next period. Under the HR subcomponent, the IFC team carefully monitored and followed up on the implementation of the HR deliverables and policies which were presented to DBACD last period but not yet fully in place (e.g. DBACD began to use the newly developed KPIs in setting objectives for staff and started to leverage their newly designed Recruitment Policy). The IFC team also conducted a desk review and 5-day field mission to review of DBACD’s individual loan product (with a particular focus on larger loans) with an aim was to get an overview of DBACD’s current capacity and experience in larger individual lending. The assessment, as well as the strategic workshop with senior and middle management that followed, provided detailed recommendations and steps to be taken in order to target the upper individual and VSE segments more effectively.

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 is to support 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 provided light support and guidance to help Fawry shape the pilot product, policies and procedures.

Component 3: Consumer Protection


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 approved internally a detailed project plan designed to scale up client protection in Egypt and the region. It also began to reach out to select MFIs in Egypt and Jordan in particular, including DBACD and Tadamun, encouraging them both to apply for available funding and also to plan for a first Smart assessment mission with IFC. Likewise, IFC reached out to EFSA in Egypt about conducting a client protection workshop with the regulator to help enhance its understanding of key client protection principles and enforcement mechanisms. An initial assessment and the workshop are both expected to take place in the coming period.

Component 4: Knowledge Management



Sub-component 4.1: Sector-wide workshops and publications

Status of Implementation: During the period, as planned IFC translated into Arabic and disseminate its report developed during the

previous period (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). IFC also sponsored the recent Sanabel Annual Conference (held in Morocco) and helped organize and lead several key plenary sessions (including on HR and Risk). On the sidelines of the conference, a Risk Roundtable was organized, bringing staff from 7 key MFIs in the region to discuss the tools, challenges and lessons learned from implementing risk frameworks. This included 2 MFIs from Egypt (DBACD and Tadamun). Finally, IFC began with Sanabel to develop a new survey on transformation and employee share ownership plans (ESOPs) which many microfinance institutions in the Arab world are considering nowadays given new regulatory changes which allow non-governmental organizations (NGOs) to transform to regulated financial institutions. This survey will be disseminated in the coming period and a report drafted.

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


0 279,755+ 22,601.5 (regional)

302,256.5

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 100,000 145,000 245,0002017 140,000 175,000 315,0002018 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 31- June 30 (2015-2016). Results in red represent a half year (Jul-Dec 2016). 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 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 (268,687)

678,000 (129,820)

1,062,500 1,490,000

Annual MFIs IFC

Value of micro loans disbursed USD N/A

99,889,705 (92,085,364)

211,052,705 (22,792,041)

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

Number of micro loans outstanding (non-cumulative)

Number307,308 325,500

(216,221)352,500 (224,946)

384,500 427,500 Annual MFIs IFC

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

USD

55,337,300 62,180,000 (55,526,294)

68,600,000 (62,705,289)

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 (115) 3 4 Annual IFC IFC

13 IFC captures results after project closure14 Regional client protection workshop (shared with Jordan)15 Regional Risk Roundtable (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 Information Activity 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/Marie-Estelle Rey

WB : Andrei Mikhnev/ Maha Hussein


[email protected]; [email protected]


Recipient Entity: Name and Email of Recipient Entity Contact

Ministry of Investment (MoI) Name: Ahmed FaroukEmail: [email protected]

General Authority for Investment & Free Zones (GAFI)

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

Industrial Development Authority (IDA) Name: Eng. Ahmed Abdel Razek, Chairman Telephone: +2010 0685 2840 Email: [email protected]

Egyptian Regulatory Reform and Development Activity (ERRADA)

Name: Tarek Hamza, Executive DirectorTelephone: +2010 0560 0099Email: [email protected]

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

$ 7,043,400



WBG: $ 1,715,322.97

OECD: $ 697,905


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.





OECD-Executed Component:Following an inception period which has allowed to define and plan targeted activities in line with previous 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, mobilizing 150 participants. A first technical activity also took place in March 2016: a workshop on “Investment dispute settlement and prevention” for 35 representatives of the Ministries of Investment and Justice. An Egyptian delegation also participated in the OECD Investment Committee in March 2016 and had series of meetings with peers, key stakeholders and OECD experts on International Investment Agreements, Responsible Business Conduct and investment policy.

On FDI statistics, an assessment report based on a questionnaire filled in by GAFI Statistical Unit is being finalized by the OECD. Three delegates from GAFI Statistics Unit participated in the OECD Working Group on International Investment Statistics (WGIIS) in October 2016 to give a presentation of their FDI compilation system before the WGIIS delegates. A capacity-building workshop will be organized in April 2017 in Cairo to present the OECD assessment report.

Implementation was delayed in second semester of 2016 due to changes in counterparts (new Minister of Investment, changes in nominated project management team) and priorities (new Investment Law pending approval). MoI sent a request for consultation to the OECD on issues related to the ongoing amendment of the investment law. The OECD Secretariat prepared and shared a background note addressing key issues in the investment law, including core protection guarantees and investment incentives regime. In parallel, discussions were held (two missions in July and October 2016 and numerous exchanges) to readjust planned activities so as to better align with new priorities of the Ministry. A calendar of planned activities is currently pending final approval of the Minister of Investment.

Coordination Discussions on the implementation of the project were held with representatives of the World Bank, including senior management, to realign the activities according to government’s priorities and ensure synergies while best responding to the priorities of the authorities.

The WBG and the OECD have reached an agreement on the next steps of their respective activities, which will be implemented as soon as the formal approval of the Minister is received.

World Bank Group Supported Components:

The previous progress report indicated the formation of both Project Implementation Units (PIUs), which signaled the commencement of project activities and coordination:

- Three implementation support missions took place between June and December 2016m to support

project progress and ensure ongoing client engagement. - Coordination meetings between Ministries of Planning and Administrative Reform, Communication and

Information Technology and Trade and Industry facilitated the design and approval of the automation platform.

- In October 2016, GAFI completed the procurement of needed Microsoft licenses for the System - Both GAFI and IDA have completed and submitted their procurement plans for the project. The plans

have been approved by the WBG in December 2016.- In November 2016, IDA procured and installed the software accounting system (IST invoicing). As part of

the coordination between both GAFI and IDA, GAFI will also install the same software using a shared license.

- In November 2016, IDA completed the hiring of a mapping consultancy firm that will look at the industrial licensing processes.

- In December 2016, both PIUs submitted a joint operating manual that was approved by the WBG and is currently in effect.

- ERRADA’s project plans have been integrated with the IDA project, to ensure alignment. In December 2016, the consultant ToRs that will support the legal and regulatory reforms in the industrial sector have been approved by the WBG.

- In December, IDA launched an international competitive bid for the procurement of a risk based assessment consultancy

- In December, IDA completed the hiring of a GIS consultancy freelancer to identify the appropriate GIS system.

- Organizational Change: In November 2016, a new GAFI PIU head was appointed.




Approval of the OECD planned activities, including the Investment Policy Review

MoI January 2017

Appointment of the project auditing consultancy firm IDA and GAFI January 2017

Provision of the newly appointed PIU head and new team members authorized signatures

MOIC January 2017

Procurement of the active components for the new system GAFI January 2017

Procurement of international consultants for the application of the risk based assessment approach

IDA January 2017

Appointment of legal consultants ERRADA January 2017

Conducting the second steering committee meeting IDA, GAFI, ERRADA, MoI and MoT

February 2017

Submission of the project’s first financial audit report IDA and GAFI February 2017

Procurement of the hardware needed for the new system GAFI and MCIT February 2017

Mapping of land allocation processes IDA May 2017

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

WBG-supported componentThe component managed by GAFI is progressing well despite the fact that the PIU witnessed several managerial changes since its inception. GAFI submitted an operating manual that was approved by the WBG and is now

operational. In addition, they have a well-staffed PIU that has received all the required operational and systems trainings, including ones on procurement and disbursement, to manage the project in line with agreed policies and procedures. The PIU follows up on a daily basis with the WBG team on the progress of the operations. The project component managed by GAFI is also linked nicely with their overall automation initiative, which is aimed to increase the efficiency of GAFI operations.

GAFI plans to launch in January 2017 an upgraded system for online business registration, which should make it simpler for entrepreneurs to start their business. The project financed the procurement of needed Microsoft licenses and the PIU is currently preparing for the purchase of needed hardware. The connectivity works for this initiative will be directly provided by the MCIT as a part of the “automation protocol” between the MICT and MCI.

The WBG implementation support included: - Provided capacity building for GAFI PIU members and newly appointed head on the WBG procurement

guidelines and the procurement system (STEP), as well as on the WBG disbursement guidelines and the client connection system.

- Provided technical assistance to GAFI PIU in updating the project’s joint operating manual. - Supported GAFI PIU in procuring the Microsoft license for the new system that is currently in testing. - Guided GAFI PIU in updating the procurement plan and the preparation of the bidding documents.- On-going support to GAFI PIU in the procurement process of the active components. - Currently assisting GAFI PIU in preparing the tender process for the project auditing consultancy firm.



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: StartedSub-component 1.3: Project Management

Status of Implementation: Completed

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

The component managed by IDA signals some delays that are mostly associated with the change in leadership of IDA. It is important to note that the PIU is currently working efficiently, and is now fully staffed. The staff have also received all necessary orientation and training needed to implement the project. The PIU launched a national competitive bidding process to recruit the mapping consultants. The PIU worked jointly with GAFI to develop an operational manual, that included financial, procurement, and monitoring and evaluation procedures. IDA is jointly working with MCIT on submitting a comprehensive action plan for the automation process in IDA.

The WBG implementation support included: - Provided capacity building for IDA PIU members on the WBG procurement guidelines and procurement

system (STEP), as well as conducted a training session on WBG disbursement guidelines and the client connection system.

- Provided assistance to IDA PIU unit on updating the project’s operating manual. - Assisted IDA PIU in establishing an action plan for the project. - Supported IDA PIU in developing the project’s procurement plan.

- Currently working with IDA on the procurement process of a risk based assessment consultant. - Hired a GIS consultant to develop a turn-key GIS system for IDA to meet stakeholder needs. - Continue to support IDA in developing Industrial Licensing Reform Strategy based on a robust risk based

approach securing GoE commitment to this reform as priority in the national plan for supporting the business environment.

- Currently assisting IDA PIU in preparing the tender process for the project’s auditing consultancy.



Cost (US$): 2,250,000.00

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

Status of Implementation: Preparation stage Sub-component 2.2: Implementing a New Approach to Industrial Land Management and an Online Land Allocation System

Status of Implementation: Preparation stage Sub-component 2.3: IDA Capacity Building and ICT Upgrading

Status of Implementation: Not yet Started

Component 3: Capacity building for managing regulatory reforms (ERRADA)

The engagement of ERRADA in the EASE project falls under the responsibility of the IDA PIU, and therefore the above-mentioned delays have affected progress of ERRADA in implementing its part of the EASE project. ERRADA has recently developed its procurement plan and finalized the ToRs for the required consultancy services. ERRADA has also established a detailed action plan with clear milestones for its activities under the project that has been approved by the WBG.

WBG-supported component- Assisted ERRADA in establishing the project’s road map.- Supported ERRADA in developing the project’s procurement plan. - Conducted capacity building sessions for ERRADA team members on the procurement guidelines and the

WBG procurement system (STEP). - Provided a technical support for ERRADA team in the establishment of the consultant ToRs that will support the

legal and regulatory reforms


Cost (US$): 500,000.00

Sub-component 3.1: Regulatory reforms proposed

Status of Implementation: Not yet started Sub-component 3.2: Private sector consultation on regulatory reform mechanism applied

Status of Implementation: Not yet startedSub-component 3.3: Capacity building workshops for ERRADA staff

Status of Implementation: Not yet started

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

In last semester of 2015 and first semester of 2016, the OECD agreed with Ministry of Investment on the planning of activities, officially launched this component at a high-level Conference on “Enhancing the Investment Climate for Competitiveness in Egypt” attended by 150 participants, organized a technical workshop on “Investment dispute settlement and prevention” for 35 representatives of the Ministries of Investment and Justice, and conducted a survey on FDI statistics. Egyptian stakeholders participated in several OECD meetings (Investment Committee, Working Group on International Investment Statistics). However, reshuffling in the Ministry of Investment led to implementation delays and the need to redefine planned activities according to new priorities.


Cost (US$): 1,484,000

Sub-component 4.1: Investment policy and legal regime


Investment regime and Responsible Business Conduct

The planned assessment of Egypt’s investment regulatory framework, focusing on selected policy areas pertaining to the investment climate, including Responsible Business Conduct, was delayed due to changes in government priorities and possible overlaps with the planned WBG Investment Reform Map. Meanwhile, in November 2016, upon a request of MoI, the OECD prepared and shared a background paper addressing key issues in the revised investment law, including core protection guarantees and investment incentives regime, to support the amendment process.

FDI statistics

A questionnaire on FDI statistics in Egypt was filled in by FDI statistics Unit of GAFI. Results were presented at the the OECD Working Group on International Investment Statistics by the Egyptian delegation in October 2016.The answers collected serve as a basis for an assessment report currently being finalized. The report, reviewing and assessing data collection on FDI statistics will then be shared with GAFI for further feedback. In April 2017, a capacity-building workshop will be organized 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.

The following activities will be conducted in 2017: Discussions are underway on a possible Investment Policy Review of Egypt, to be prepared in 2017

based on the OECD Policy Framework for Investment (PFI). The scope of the Investment Policy Review would be based on selected issues of the PFI and would need to be approved by MoI (proposal sent in December 2016 following an OECD mission in November 2016). Upon approval by the Minister, a mission is planned for January 2017 to agree on the selected policy areas that will be addressed in the IPR and start the implementation process (appointment of IPR coordinator, establishment of the inter-ministerial Task Force, fact-finding and discussion on the PFI questionnaire to be filled in by the authorities). Once approved, this activity will readjust some specific activities under sub-component 4.1, in particular those related to the drafting of the Investment Law, as the amendment has already been submitted for Cabinet’s approval and the OECD provided comments.

A capacity-building workshop to present the findings of the FDI statistics assessment report and provide capacity-building on FDI statistics compilation.

A capacity-building workshop on the establishment of the National Contact Point (NCP), to support the implementation of Egypt’s obligations under its adherence to the OECD Declaration on International Investment and Multinational Enterprises.

Participation of Egypt stakeholders in the March OECD Investment Committee and Global Forum on

International Investment.

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


The following activities are planned in the first semester of 2017 upon request from the Ministry of Investment: A capacity-building workshop on international investment agreements (IIAs). The topics that will be

addressed will be defined based on the conclusions of the UNCTAD IIA review, to be shared by GAFI with the OECD. Once the UNCTAD report is received, the OECD Secretariat will define together with GAFI the content of the workshop.

Participation of GAFI IIA experts and negotiators in the OECD Conference on international investment agreements in March 2016.

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 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. This workshop was attended by a focused group of 35 policy-makers.

Next activities : Building on this first workshop, the OECD plans to 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 for the first semester of 2017.


(US$)

(x)


(y)

Total (US$)


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


WBG: 5,000,000 OECD: 285,361 USD 5,285,361


WBG: 1,407,922.45 OECD: 598,113 USD 2,006,035.45

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

Year Jan-June Jul-Dec Total by Year End2017 OECD: 280,000

WB: 750,000OECD: 280,000

WB:750,000OECD: 560,000WB: 1,500,000

2018 OECD: 280,000WB:1,000,000

OECD: 45,887WB: 1,00,000

OECD: 325,887WB: 2,000,000


OECD: 99,792WB: 307,400.52

OECD: 2081

WB: 90,599.48OECD: 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


Data Collection Responsibility DescriptionJul 2015 –

Jun 2016A

Jul 2016 – Jun 2017

F

Jul 2017 – Jul 2018

FYR4 Target

Output 5.1.1: Documents Produced and Endorsed # 0 0 267

(2016: 4) 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)

CRM Platform Operational in OSSs # 0 0 0 5 5 Annually Progress Report PIUCorresponds with Transition Fund Output 5.1.2 “Structures established”

Sectors licensing requirements consolidate/published on GAFI Portal # 0 0 0 479 479 Annually Progress Report PIU

Corresponds with Output 5.1.1 “Documents produced and endorsed”

Capacity Building workshops for GAFI OSS staff completed # 0 0 0 10 10 Annually Progress Report PIU

Number of GAFI OSS staff trained in workshops # 0 0 0 50 50 Annually Progress Report PIU Corresponds with Transition Fund

Output 5.1.3 “Staff trained”

Component 2 (WB) – Industrial Sector Regulatory Reform (IDA)

Mapping/Simplification of Licensing sub-processes completed # 0 0 4 4 4 Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.1 “Documents produced and endorsed”

Risk based approach for industrial technical evaluation applied Y/N - - N - Y Annually Progress Report PIU

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

Industrial Licensing System (ILAS) Deployed in IDA Branches # 0 0 0 10 10 Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.2 “Structures established”

Online industrial land allocation system designed/deployed Y/N - - N - Y Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.2 “Structures established” (Yes is equivalent to 1 system established)

Industrial Developer land allocation framework designed and deployed Y/N - - N - Y Annually Progress Report PIU

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

Capacity building workshops for IDA branches staff completed # 0 0 0 10 10 Annually Progress Report PIU

Number of IDA staff trained in workshops # 0 0 0 50 50 Annually Progress Report PIU Corresponds with Transition Fund Output 5.1.3 “Staff trained”

Component 3 (WB) – Capacity Building for Managing Regulatory Reform (ERRADA)

Regulatory reforms proposed # 0 0 0 15 15 Annually Progress Report PIUCorresponds with Transition Fund Output 5.1.1 “Documents produced and endorsed”

Private Sector consultation on regulatory reform mechanism applied # 0 0 0 15 15 Annually Progress Report PIU

Capacity building workshops for ERRADA staff completed # 0 0 0 10 10 Annually Progress Report PIU

Number of ERRADA staff trained in workshops # 0 0 0 15 15 Annually Progress Report PIU Corresponds with Transition Fund

Output 5.1.3 “Staff trained”

Component 4 (OECD) – Support to the government in designing a new investment policy and legal framework and in strengthening its international investment regime

Reliable FDI statistics, compliant with international recommendations Y/N - no yes yes N/A Annually Progress Report PMU OECD FDI statistics assessment

report produced and capacity-building workshop planned

Adoption by the government of a new investment policy and a revised investment law

# # no no yes N/A Annually Progress Report PMU New Investment Law under approval. OECD comments provided.

FDI restrictions revised and improved ranking in the OECD FDI Restrictiveness Index

# # no no yes N/A Annually Progress Report PMU Planned activity if approved by MoI

Business-related laws harmonized with Investment Law, jurisdiction of investment-related institutions approved

# 7 0 4 3 7 Annually Progress Report PMU Component merged with the investment policy component

Number of workshops/consultations # 7 2 3 2 7 Annually Progress Report PMU 2 workshops organized and 5 planned

BIT network and dispute settlement bodies and procedures assessed Y/N - no yes yes N/A Annually Progress Report PMU

Assessments done by UNCTAD (BIT) and the World Bank (dispute settlement) but not available at this stage. OECD planned activities will build on these assessments

Number of Egyptian officials trained in negotiating BITs and in preventing and managing investment disputes in workshops

# 30 35 15 15 30 Annually Progress Report PMU 35 trained in March 2016. Additional 40 in first semester 2017

Number of investor-State dispute settlement cases reduced # # no no yes N/A Annually Progress Report PMU To be assessed at the end of the

project

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 Bank

Email of ISA Project Leader: Mohab Hallouda >/ [email protected]

Recipient Entity: Ministry of Electricity and Renewable Energy

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


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

Total Amount Disbursed (Direct and Indirect in US$): 2,165,199 indirect cost 12,276total 2,177,475

Steering Committee Approval Date: May 15, 2013

Project Implementation Start Date:November 25, 2013

Project Closing Date:July 31, 2018


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:




Restructuring of the project was approved on October 2016. It has threefold impact; first, changing Component 1.2 (originally called fuel to power) to a technical assistance to EETC to support its restructuring to become an independent transmission system operator (TSO). This change reflects changed priorities in the reform program after promulgation of the new Electricity law in July 2015. The law enforces opening of the electricity market and establishing an independent transmission system operator and market operator to ensure non-discriminatory third-party access to grid and market. This entails major reforms that require substantial technical assistance to ensure adequate implementation. Second, a slight reallocation of funds between the components took place under the restructuring to account for differences between cost estimates and actual bids and the change in scope for Component 1.2. Third, the project closing date was extended from December 30, 2016 to June 30, 2018 to allow enough time for Component 1.2 to be completed.

The disbursement of the project is advancing well especially after awarding the consultancy service contract for Comp 1.2. USD 2.17 million out of USD 6.5 million have disbursed.


Component 1 Power Sector Institutional Development and Financial Viability

Sub-component 1.1: Electricity Utilities Financial Management and Governance The assessment will propose options for the power utilities to improve their organization and corporate structure, financial management and governance structure.

The component has 3 main tasks; Task 1 : Enhancing the corporate governance (CG), Task2: improving financial management in EEHC, and its affiliated companies, Task3: upgrading the financial planning capacity of EEHC and its affiliated companies. 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

Task 1 is progressing very well and the consultant is to finish by march 2017. Task 2 and 3 are progressing as well, however task 3 is facing problems with the expected output of consultant.

Sub-component 1.2: Technical Assistance for restructuring of EETC to become Transmission System Operator (TSO)

The scope of the consultant’s assignment under this component is to carry out a comprehensive gap analysis and assessment of the current structure of the Egyptian Electricity Transmission Company (EETC) and propose required changes to transform EETC into TSO and to efficiently fulfil its mandate stated in the New Electricity Law. The PIU (EETC) is working on this assignment with MoERE, EEHC, and EgyptERA.Status of Implementation: The consultant started working on the assignment on October 2016, where the Kick-off Meeting was held on November 14th, 2016 and a mission then followed on January 9th, 2017. The next mission is expected to be in February 2017. 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: The subcomponent is progressing well. The structure of the EE unit is developed. The NEEAP II is being

prepared and we have further requested assessment to NEEAPI. The team might need further training on conducting assessment to EE plans. They have not decided on the needed software yet.

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.

Two local consultants are hired to support the PMT. The external auditor is regularly submitting the quarterly audit report.

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.


The contract is proceeding but slower than expected. The consultant is providing training to the teams on the software that is used to develop the strategy. It is expected to extend the contract for another 6 months.

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: An additional task was added ; “launch communication framework for the MoP’s Modernization strategy.

Assignment is progressing well.

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.

A substantial number of deliverables are submitted.:

Final Inception report submitted

Analysis ,100% completed by the deliverables D1,D3,D4,Phase II : System Design requirement 100% Completed by the deliverables of D2,D5,D7 .Mid project report (report2) submittedKnowledge Transfer program (D17), completedWorkshops and seminars (D18) CompletedD11,D12,D14,D15 Submitted July ,2016D6,D16,D17,D9,D8 Submitted Sep,2016Project Final Report submitted October ,2016.Final Project Scoping WS ,December 8,2016 WB reviewed the final report and approved

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):

2,170, 000 2,170,000

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

A. Results Framework and Monitoring

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/

Indicator Name CoreUnit of Measure

BaselineNov 2013 -

Oct2014A

Nov 2014 - Oct 2015

A

Nov 2015 – Oct 2016

A

Nov 2016 – Dec 2017

F

Jan 18 – July 2018

End Target Frequency

Methodology

Direct project beneficiaries

Number 0.00 0 (A) 0 300 0 500.00Semi-Annually

Progress Reports, Implementation Support Reports

Female beneficiaries

PercentageSub-TypeSupplemental

0.00 0 (A) 0 30 0 50 Semi-annually


Reform options analyzed to improve the financial viability and governance of EEHC is prepared.

Yes/No No No (A) No Yes Yes YesSemi-Annually


Capacity Building for Transmission System Operator

Yes/No No No (A) No 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.


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 December 2016, 752 NGOs and 3 Companies received their final licenses; of which 13 NGOs fall under Tier A (Gross Loan Portfolio (GLP) > EGP 50 million), 20 NGOs fall under Tier B (EGP 10 million < GLP < EGP 50 million), and 719 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) Released the consumer protection guidelines 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) Releasing the Micro-insurance regulations.

(vi) 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 DirectivesStatus 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 six times since inception.

Sub-component 1.3: Conducting study tours Status of Implementation: An international Study tour to Uganda16 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

16Why 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, 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 organized an international study tour that would enable learning about the various countries’ PPFs. This included visiting Malaysia to meet the Securities Commission and Employees Provident Fund (EPF) and Hong Kong for the Annual Forum of the International Organization of Pension Supervisors (IOPS) with tailored meetings on best practice with the Australian, Mexican, Chilean and Hong Kong authorities. In Malaysia the EFSA team received excellent presentations by the EPF on their overall approach, and with a specific focus on investment, governance and risk management to assist them in the development of legislation and regulation. The EPF illustrated good standards in a pension fund and hence what EFSA should look for in the pension funds they regulate. Presentations from the Malaysian Securities Commission covered their regulation of voluntary private pension funds. As well as highlighting how their system works, they provided useful insights for EFSA on how to take the experience from different countries and tailor it to the particularly country context. The WB team also organized sessions for the Egyptian delegation on the legislative and regulatory issues with the Australian, Mexican, Chilean and Hong Kong regulators during the IOPS meetings in Hong Kong. This allowed them to see how different countries had tackled some generic challenges in which EFSA are interested in moving forward – such as governance, risk management, supervision and investment – and showed how from a regulatory point of view there was a lot of overlap in terms of good practice in both Defined Benefit and Defined Contribution pension funds. The discussions – and sessions at the IOPS conference - also allowed a deeper discussion on actuarial issues and Defined Benefit liabilities, which is an area of particular interest for EFSA. There were many other presentations in the IOPS conference that will be posted on the Pensions GSG site external site, Insurance and Pensions for Development external site and sent to colleagues in cross cutting areas where they overlap with their areas of responsibility. The next steps for the Egyptian project is to follow-up with a visit to Cairo in January, 2017. This will allow time with EFSA to develop the regulation and legislation on the key areas of identified interest (governance, risk management, investment, supervision and actuarial best practice). This is the next stage in the project plan to deliver the program of support requested by EFSA.

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, two Seniors, three Specialists for Supervision & Analysis, and MF Development Expert. The Microfinance Unit is in the process of hiring new staff members, namely; an Inspection and Compliance Specialist, Financial Statements Analyst, 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. One training for microfinance staff was conducted on accounting systems for NGOs licensed under Tier C, and on managing diverse portfolio, which is one module from Making Microfinance Work (MMW) training by ILO. EFSA is now in the process of conducting two trainings for microfinance staff, one on Client Protection with Smart Campaign, and the other is the MMW with ILO.

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 was announced in October 2016, and offers were received and are currently being processed

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 campaignsStatus 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. To start with disseminating the information regarding consumer protection, EFSA printed the guidelines to be disseminated on NGOs to ensure knowledge transfer and compliance of NGOs to the guidelines. On promoting accountability, and NGOs capacity building, EFSA adopted a training program targeting NGOs with active portfolio lower than 2 million EGP to build their financial capacity; the training is mainly on accounting and compliance to EFSA regulatory reports. In 2016, more than 200 NGOs were trained from 6 different governorates and the program will continue in 2017.Also, special trainings and sessions targeting financial auditors and raise their awareness on Microfinance Law and NGOs commitments towards licensing and the expected roles of auditors by the virtue of the law and regulations. 4 trainings were conducted in 4 different governorates covering regions of Egypt.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 4


0 0

Actual Amount Disbursed (c): 1.37 1.37

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$Million)Disbursed (Million US$) Available (Million US$) Total (MILLION US$)

0.22 0.24 0.46


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



Collection

Aug 2014 – Jul 2015Actual

Aug 2015 –

Jul 2016Actual

Aug 2016 till Jan 2017

Actual

Aug 2016 –

Jul 2017

Forecast

Aug 2017 –

Oct 2018

New regulatory framework effective for MFIs, including NGOs-MFIs Yes/No No Yes Yes Yes Yes Yes Annual EFSA EFSA

Number of MFIs licensed by EFSA under the Microfinance Law Number 0 440 654 755 615 620 Annual EFSA EFSA

Number of NGOs engaged in microfinance activities (reported by the Microfinance NGOs Oversight Board) Number 0 450 651 755 610 615 Annual EFSA EFSA

Number of microfinance beneficiaries under the Microfinance Law Number 0 1,521,000 1,580,000 2,000,000 1,580,0

001,600,00

0 Annual EFSA EFSA

Female MFI beneficiaries of microfinance loans Percentage 0 0 NA 66 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 Yes Annual EFSA EFSA

Frequency of meetings of the Microfinance NGOs Oversight Board Number 0 4 5 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 Yes Annual EFSA EFSA

Number of staff of MFIs trained Number 0 0 8 700 800 850 Annual EFSA EFSA

Microfinance sector reports disclosed by EFSA Number 0 0 1 3 3 7 Annual EFSA EFSA

Number of training programs for Microfinance Unit staff Number 0 0 1 4 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 3000 3500 3800 Annual EFSA EFSA

Number of awareness and consumer protection initiatives launched and implemented by EFSA Number 0 9 12 17 14 16 Annual EFSA EFSA

Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making

H. Basic Project InformationActivity Name: Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making in Egypt

Country Name: Egypt Name of Implementation Support Agency(ies): OECD

Name of ISA Project Leader: Andreas Schaal; Tatyana Teplova

Email of ISA Project Leader: [email protected] [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





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

I. 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



Progress has been strong due to continued and solid coordination between the National Council for Women (NCW) and the OECD, as well as support of the Ministry for Youth and Sports in implementation of capacity building for prospective female candidates this year.

Project donors remain engaged in the project and periodic updates are given on progress via emails, conference calls and short visits during missions. Discussions are being held with the British Embassy about greater collaboration in the context of the 2017 regional dialogue to be held in Egypt in collaboration with other in-country partners working closely with the UK, such as the UNWomen Country office and Global Partners for Governance.

Main achievements include:

A successful “Training of Trainers workshop for Component 2b” held in Cairo, Egypt at NCW premises in mid-October 2016.

Capacity building with prospective women candidates who aim to run for local elections (more in depth information under Component 2) and NCW Directors from 23 Egyptian Governorates.

A regional training package – inclusive of a “Train the Trainers” (ToT) manual, participant workbook, and accompanying PowerPoints to support the training of prospective female candidates running for elections was created, covering all topics mentioned in the project proposal (1. Introduction to voting registration and civil rights; 2. Running successful campaigns: Campaign fundraising and financial integrity of MP; 3. Balancing duties and responsibilities of the parliamentary service; and 4. Leadership development and Parliamentary procedures). These modules have been tailored to the political context of the country and can be delivered separately or jointly.

The training package can cover four full days of training or can be condensed to three days, given that the feedback from participants recommended three days maximum – given the constraints for female participants – especially travelling from local and more conservative regions -- to leave their families/duties to travel to the capital for training for such a long period of time was considered untenable by local partners and expert trainers




Validation by the counterparts of the assessment of the existing opportunities and the current challenges faced by women candidates in Egypt

OECD in collaboration with the NCW

January 2017

Organization of the advisory sessions for component 1b OECD in collaboration with the NCW

May 2017

J. Implementation Status of Components Component 1: Making legislatures transparent, equitable, and gender-sensitive - Previous Rating: Not Applicable Current Rating: Satisfactory 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: Fact-finding is complete, but given the newness of Egypt’s Parliament and the high proportion of first-time MPs and new laws to be passed – the OECD will continue to monitor Parliament and produce an assessment report in 2017.

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: Satisfactory 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: The fact-finding is complete, and the assessment report is currently being finalized –

to be validated by in-country partners and peers in the first quarter of 2017.

Sub-component 2.2: Building women’s capacities to participate in elections and parliamentary operations at national and sub-national levelsStatus of Implementation: A training of trainers (TOT) workshop was held in mid-October to familiarize local trainers with the regional trainer programme created and equip them with the knowledge, tools and basis needed to further contextualize the materials to Egypt’s specific needs and plan for initial trainings (with an aim to independently scale them up via NCW and other country partners) ahead of local elections. This workshop also aimed to support NCW in building and scaling up trainings with a particular degree of continuity across the country and that touch on the most important topics (as evidenced from fact-finding and extensive consultations).

126 participants attended to the capacity building activities were held in Cairo at the Maadi Olmpic Centre from the 24-26 October 2016. The overall training was very successful. Based on evaluation sheets filled out by participants (118 received in all) at the end of the training:

The National Council for Women (NCW) has received positive feedback through participants, trainers and peer reviewers in the training. The NCW’ employees in the governorates said that they benefited from the training, and they are eager to replicate it in their governorates. Moreover, NCW has received various phone calls from candidates who want to participate in the future trainings. The trainees appreciated exposure to a variety of trainers and experts, but found that the overall days were intense and ended late (which was challenging for their attention span). The training provided ample opportunity for network between political parties, NGOs, urban community leaders, NCW employees and individuals from various backgrounds seeking to run for election. Trainees especially enjoyed the lecture on social media and reported that they benefitted greatly from the lecture on the legislative and soon to be – new electoral framework. The panels with peers were highly appreciated – as peers shed light on the difficulties they encountered when running for election and serving in public office – but offer insight and recommendations on the best way forward for candidates.

The OECD distributed evaluation forms to participants and the feedback was very positive. Some of the quotes and insights from the evaluation sheets included:

“I never worked in the political sphere before but now I will consider it ““The training has enriched my political knowledge ““The training has opened new horizons for me, and enhanced my knowledge”“it improved my independence and decision making skills and taught me how to manage my electoral campaign ;especially on communication with voters and my electoral team”

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 in March 2018.

Component 4: Regional Dialogue


Current Rating: Satisfactory

Cost (US$): 50,682

Status of Implementation: The first regional dialogue for the project was hosted in Amman, Jordan on 4-5 May

2016, and co-organised 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 2017 regional dialogue will be held in Egypt in the latter half of 2017 – in sync with Egypt’s declaration of 2017 as the “year for women”.

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

(US$)

(x)


(y)

Total (US$)


593,433 USD 593,433 USD


159,090 USD 159,090 USD

Actual Amount Disbursed (c): 290,491 USD 290,491 USD

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 85,000 USD 100,000 USD 185,000 USD2018 95,000 USD 22,942 USD 117,942 USD

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

39,900 USD 0 USD 39,900 USD


Indicators by Component Unit Baseline Cumulative Target Values Frequency Data Source/Methodology


Description (Indicator Definition, etc.)

2016‘A’

2017‘F’

2018‘F’

Indicator 1: No. of assessments and guidelines completed and approved

Quantitative 0 3 8 10 Once Project progress reports

Project Implementation Team (PIT).

No. of assessments, guidelines, materials, training modules, toolkits and guidelines designed to enhance the enabling environment

Indicator 2: No. of internal regulations and policy proposals endorsed

Quantitative 0 0 8 10 Annually Project progress reports


A set of targeted policy recommendations intended to different stakeholders aiming to overcome the existing barriers faced by women candidates to access to parliamentary posts.

Indicator 3: No. of programs and projects designed and implemented to promote more gender sensitive and equitable allocation of government resources



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 Existing

0 10 20 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



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 0 10 15 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 0 22 (actual)

(the final target was 20)

22 22 Once Project progress report

PIT Number of Government Bodies and institutions received support to conduct an analysis of parliamentary electoral and workplace operations, processes and policy frameworks through gender lens

Indicator 2: No. of trained representatives of parliamentary secretariat, parliamentarians and local elected officials

Quantitative 0 0* (To be trained in 2017)

90 90 Annually Project progress report

PIT Number of trained representatives of parliamentary secretariat, parliamentarians and local elected officials

Component 2: Strengthening capacity and skills of women candidates for parliament

Indicator 3: Studies, assessment, reports, action plans, roadmaps, models of good practices or

Quantitative 0 3 4 4 Once in 1st and 2nd year


PIT No. of assessments, guidelines, materials, training modules,

frameworks endorsed toolkits and guidelines designed to enhance the enabling environment

Indicator 4: Women candidates for parliamentary elections, youth groups trained, engaged and empowered to participate in public life

Quantitative 0 18 trainers (ToT)

126 women Candidates


PIT Women candidates trained


Indicator 5: CSOs, women or youth groups engaged and empowered at the central and local level

Quantitative 0 0 10 15 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


PIT Parliament , Ministry of Women affairs 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 0 1 2 3 Annually Project Progress Reports

PIT Number of models of good practices

Indicator 8 : Documents produced and endorsed at the regional level


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 Regional Director General North Africa (RDGN), Mohamed EL [email protected]





Dec 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 team composed of Project Manager, Procurement person (part time) and Accountant (part time) are fully on board. Procurement process is at various stages for the following activities: institutional health assessment, economist, M&E expert, training program, improving ICT infrastructure. Funds for operational costs have been transferred into special account. However, to-date contracts only signed for the three project team members.

The project will end March 31 2020.

In line with MENA TF procedures, the project is ISA executed by AfDB.



Grant Approval Date 8 December, 2015Grant Closing Date 31 March, 2020Grant Amount USD 4,455,000 (incl. ISA charges)

Actions to be Taken Responsible Party 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 2/1/2016Done

Project Effectiveness MOIC and AfDB 28/2/2016Done

Launching of recruitment of project staff (Proj Manager, Proc Specialist, Accountant)

MOIC 23/5/2016Done and staff on board

Sending out Request for Proposal (RFP) for “Institutional Health Assessment” activity

MOIC and AfDB March/April 2017Expression of interest (EOI) done; RFP finalized and to be launched.

Sending out RFP for “Soft Skills Training” activity MOIC and AfDB March/April 2017Expression of interest done; RFP sent on 19 December 2016.

Negotiations with first ranked company for Proposal on “Information Management System” activity

MOIC and AfDB Feb 2017Short list evaluation report submitted

Advertise EOI for recruitment of “Economist” MOIC and AfDB Feb 2017TOR and EOI approved from Bank side

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: RFP sent out to pre-qualified companies.

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 (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 activity to be

finalized.

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 started and likely not to be done as this was covered under different projects.Sub-component 2.2 and 2.3 (merged into one): Design and implement a training program for Senior and Middle Level Staff

Status of Implementation: RFP submitted to qualified companies and combined with sub-component 2.3Sub-component 2.3: Trainings for admin staff on soft skills and IT skills and software

Status of Implementation: RFP submitted to qualified companies and combined with sub-component 2.2Sub-component 2.4: Specialized training courses or executive trainings (from 2 to 6 weeks) at specialized institutes

Status of Implementation: Not yet started as this will wait for the institutional health assessment activity to be finalized.

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 started and will wait for the other studies to be launched and based on the needs identified will start the processSub-component 3.2: Hiring an IT firm

Status of Implementation: Short list evaluation report submitted to Bank for no objection and under process.Sub-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 initiated; discussions were held with UNDP to gauge if this could be sub-contracted to them; however, MOIC believes they would prefer contracting this out themselves.Sub-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 doneSub-component 4.3: Recruitment of audit firmStatus of Implementation: Will be initiated in Q1 2017


(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 40,000 45,0002017 300,000 500,000 800,0002018 500,000 800,000 1,300,00020l9 800,000 800,000 1,600,0002020 350,000 360,000 710,000Total 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

6A

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 4.0 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

Not done yet

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

Not yet started

25 100 150 150 300 300 400 400 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 0 1 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 0 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 0 1 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 15 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 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 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 0 0 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




Brief Summary of Project Implementation Status: The project was approved by MNAVP on August 1, 2016. The Bank has provided support in the following aspects:

- The proposed social housing law- Financial sustainability of SHF- Demand assessment - Private sector engagement in social housing- Developing the rental model- Developing the House Price Index- Training in IT and MIS



Organize a workshop for private sector engagement in social housing The World Bank 3/15/2017

Building the capacity of SHF to roll on a public rental program The World Bank 3/30/2017

Building the capacity of SHF, CBE and stakeholders to develop HPI The World Bank 3/30/2017


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: Satisfactory Cost (US$): 1,800,000Sub-component 1.1: Capacity for Developing a new Social Housing Strategy

Status of Implementation: The Bank is supporting the SHF in its effort to secure its financial sustainability assessment to the SHF as an integral part of the social housing sector. Furthermore, the Bank is also assisting the SHF with the achievement of a social housing demand assessment study in order to adapt the quality and quantity of housing unit. The two studies will be key element of the overall strategy of the housing sector. Sub-component 1.2: Capacity for Engaging the private sector in affordable housing through identifying at least one public-private arrangement

Status of Implementation: The Bank is currently assisting the SHF in its effort to organize a workshop to show cases of international experience in engaging the private sector in social housing. The workshop is expected to be held in February or March 2017. The SHF will build on the workshop to define a workable model for private sector participation. 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: The Bank has been advising the authorities on best practices for the parameters of the public rent component. SHF has already launched the rental program with a pilot project of 6,000 units. Sub-component 1.4: Capacity for Developing the Housing Price Index (HPI)

Status of Implementation: The Bank is currently discussing with SHF, the Central Bank of Egypt and other stakeholders the construction of HPI. The Bank is advising on the list of variables that could be included in the HPI model and possible sources of data. The Bank will conduct a training to concerned staff on the operation of the HPI during the first quarter of 2017.

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: Moderately


Sub-component 2.1: : Capacity building of SHF internal units and functions

Status of Implementation: The Bank has been discussing with SHF management the best practices in internal audit and governance. Based on that, SHF has established its internal audit committee and function. The quality of the functions need improvement, which is a key area for capacity building provided by the Bank. Sub-component 2.2: Building the capacity of SHF in Human Resources Management

Status of Implementation: Implementation will start during FY 2018.Sub-component 2.3: Building the capacity of SHF in organizational issues

Status of Implementation: The Bank is providing technical opinion to SHF and the authorities on the proposed law for SHF. The law primarily aims at merging SHF and GSF. The Bank will continue supporting SHF on organizational issues.Sub-component 2.4: : Training and Capacity building for SHF staff

Status of Implementation: Capacity building for SHF staff is in progress in areas of IT and MIS. The Bank

provided several trainings to SHF staff to develop their capacity in MIS of the demand subsidy system.


(US$)

(x)


(y)

Total (US$)


2,450,000 2,450,000


2,450,000 2,450,000

Actual Amount Disbursed (c): 134,979 134,979


Year Jan-June Jul-Dec Total by Year End2013201420152016 134,979 134,9792017 500,000 300,000 934,9792018 400,000 600,000 1, 934,9792019 250,000 265,021 2,450,000


35,479 18,491 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.





Collection


Jul 2016 –

Jun 2017 F

Jul 2017 –

Jun 2018

F

Jul 2018 – Jul 2019

F

Indicator 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 with SHF in internal governance

Yes/No No Yes Yes Yes Annual SHF WB

Intermediate 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, which included the preparation of a mapping study, was completed in August 2016. This is later than anticipated after more time had been required to collect data from local stakeholders. Since then the EBRD has been working on obtaining internal approvals to be able to proceed with procurement for core activities of the project.

The comprehensive mapping study provided a set of recommendations on the design of the project, which had to be analysed by the project team and agreed upon with the project beneficiaries. The extent of information brought about as a result of the mapping exercise, and the subsequent decision to introduce certain modifications to the design of the project, have led to the EBRD having to return the project to its internal committees for re-approval.

While such approvals were promptly obtained, some questions around procurement (in particular in relation to participation of the mapping study consultant in subsequent phases of the project) required longer deliberations.

Although it means the project is behind the schedule already at this early stage, we strongly believe that the


longer time taken to reflect on the recommendations of the mapping study and the adjustments introduced to the project design, will have a highly positive impact on the subsequent implementation phases and the overall outcome of the project.

This progress report is accompanies by the mapping study and project restructuring memo.


Actions to be Taken Responsible Party Expected Date of Delivery

Finalising the establishment of the steering committee EBRD/ National Center for Research and Development (HCST)

1/30/2017

Submission of the finalised Mapping Study to the Steering Committee of the MENA TF for information

EBRD 1/15/2017

Publishing procurement note for Project Management consultant EBRD/HCST 3/1/2017

Selecting and contracting the Project Management consultant EBRD/HCST 3/3/2017

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 management consultancy company (whose appointment is expected to be finalised by March 2017) will support the NCI to procure an appropriate IT company to develop the platform. The design of the IT platform and procurement for the IT company is expected to start in mid-2017.

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 in Q1 2017Sub-component 2.2: Admin and Communication managerStatus of Implementation: Procurement to start in Q1 2017Sub-component 2.3: Technical ManagerStatus of Implementation: Procurement to start in 2018. Sub-component 2.4: Business Development and Production and Marketing ManagersStatus of Implementation: Procurement to start by mid-2017.

Component 3: Establishment of the Center – 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 expected to start in Q1 2017

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 expected to start in Q1 2018

Component 5: Consultant EngagementPrevious Rating: Satisfactory Current Rating: Moderately


Sub-component 5.1: Mapping study Status of Implementation: The mapping study was completed in August 2016 and is attached to this report for information of and possible comments by the Steering Committee. The study provided a set of recommendations on project design, some of which were taken on board by the project team. The outcomes of the mapping study and the proposed amendments to the project are further explained in the revised project fiche and restructuring memo.Sub-component 5.2: Project Management ConsultantStatus of Implementation: The Project Management Consultant will work very closely with the NCI director and oversee the entire set up and functioning of the new Center. The procurement for the PM consultant is expected to start in the beginning of 2017 and their appointment should be finalised by the end of Q1 2017.Sub-component 5.3: Legal and Policy Unit: For legal regulatory audits: analysis of existing laws to support innovationStatus of Implementation: Procurement to start beginning of 2017 Sub-component 5.4: For Monitoring & Evaluation design set-up, implementation and audits Status of Implementation: Procurement to start beginning of 2017 Sub-component 5.5: 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 5.6: For the scoping and development of Sector Skills Councils (or similar mechanisms) in relevant sectors for the engagement with the education authoritiesStatus of Implementation: Ensuring that the activities undertaken by the NCI in support of this development are in conformity with the council development scoping document and leverage the NCI’s IT platform wherever possible. This is anticipated to commence in late 2018 and 2019

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 towards mid of 2017.Sub-component 6.2: Mapping sector-skills requirements with private sectorStatus of Implementation: The former entails creating a roadmap for the establishment of Sector Skills Councils that will examine global benchmarks for similar councils. The latter entails an assessment of Jordan’s skill gaps in the innovation value chain. It is anticipated that the matching will commence toward mid of 2017

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 34,000 68,0002017 350,000 450,000 800,0002018 775,155 775,155 1,550,310


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

DecA

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

A

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


Establishment Census

Every 6 month reporting with larger results by end mo. 6, 18 and 36

Industry and firm-level surveys conducted on data set, University/R&D

M&E Manager works with Information Manager

Process

INTERMEDIATE RESULTS *

Intermediate Level Results Indicators*

Unit of Measure

Base Cumulative Target Values**

Frequency Data Source/Responsibility for

Data Collect


etc.)

Phase 1 2015

Phase 2 2016

Phase 3 2017

Phase 4 2018

Intermediate Result (Component One): Create an institutional environment for new and existing innovation-focused entities (public sector, private sector, universities and research centers) to improve collaboration and adopt innovation practices throughout value chains.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

Number0

BEGIN Quarterly reporting

Quarterly reporting

TOTAL VALUE

16xInformation Unit,

Referral UnitInformation Manager,

Referral ManagerQuantitative

Analysis


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]





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 approved scope is facilitating WAJ staff to utilise their new skills to process projects, which is facilitating 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.

One component of the project remains to be mobilised, Sub-component 2.1(i). However, WAJ has recently approved the water sector action plan to reduce losses and therefore the original and revised focuses of this component are now obsolete. EBRD are working with WAJ to determine whether a suitable replacement activity should be proposed to the Fund and will revert by the end of January 2017.

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.




Submit for approval the change in scope of Sub-component 2.1: (i) EBRD and WAJ 1/31/2017

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 tasks under the original contract are complete with the exception of the Final Report. Over the past year, 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 were delivered and the seminar to accompany the PPP guidelines and financial model took place in Q3 2016.

The latter half of 2016 saw the more general strategies delivered, including the finalized capital projects matrix, including the 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 is now finalized.

The last output in 2016 has been the PPP strategy for water sector development; this tool enables 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 was restructured in mid 2016 in light of the success of the financial training (outlined below) and the impact of the Syrian refugee crisis. The component has been started and is supporting WAJ in developing 3 PPP projects. The consultant will provide WAJ with the confidence and timely support in decision making, project appraisal and development, These exercises are based on real life projects that are being considered for development.

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) WAJ has recently approved the water sector action plan to reduce losses and therefore the original and revised focuses of this component are now obsolete. EBRD are working with WAJ to determine whether a suitable replacement activity should be proposed to the Fund and will revert by the end of January 2017. (ii) The financial management training programme was 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: The assignment focused on ongoing policy dialogue aimed at strengthening the standards of wastewater discharge and improving 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 were incorporated as a bylaw, which has been 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 (ACWUA).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 programme 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 was held in November 2015, with the participation of all the Jordanian water utilities. All participants expressed their desire to continue the cooperation and EBRD is still seeking to 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 has built on this success and the visit to Romania took place at the end of July 2016. All water utilities were represented on a 7 day trip to Romania. The Romanian Water Association and a number of EBRD clients hosted the Jordanian participants. The agenda included targeted workshops and seminars, for example on the institutional arrangements in Romania, the regulatory structure and their experience of benchmarking.


(US$)

(x)


(y)

Total (US$)


1,440,000 0 1,440,000


1,440,000 0 1,440,000


1,046,096 0 1,046,096


Year Jan-June Jul-Dec Total by Year End

2013 13,561 0 13,5612014 0 0 02015 25,000 276,920 301,9202016 279,320 451,295 730,6152017 393,904 - 2018


89,200 15,800 105,000




MeasureBaseline


Frequenc

y




definition etc.)Jan

2013 – Dec

2013A

Jan 2014 –

Dec 2014

A

Jan 2015 – Dec 2015

A

Jan 2016 – Dec 2016

A

Dec 2017 –

Jun 2017

Indicator One:Increased understanding and actual processing of 3 PPP projects17.

Number of PPP projects under preparation by WAJ

0 0 0 3 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)

215 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 2 Yearly

Data will bedirectly collectedby the WAJ andby EBRD

EBRD[MEI/OCE]

Number ofprivate Sectorentitiesinvolved in the water sector

17 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)

2 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 3 6 monthly Evidence will be directly collected by the YWC andby EBRD and will include agenda, summary of minutes and attendance.

EBRD(OCE)

Draft by-law approved Text 0 0 0 1 (corrected)

1 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 4 Yearly Data will bedirectly compiled by the YWC,WAJ and byEBRD

YWC-OCE

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)

15 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 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

H. 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 Implementation Support Agency(ies): European Investment Bank

Name of ISA Project Leader: Eberhard BOEMCKE 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)


423,567.688


12/5/2013


12/1/2015


11/30/2016




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

The overarching objective of the programme is to improve financial inclusion in Jordan by supporting the CBJ to establish the infrastructure and policies to promote access, usage, and quality of digital retail payments, with a specific focus on mobile financial services (MFS).


Satisfactory


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 28 th 2015. The winning bidder was the




specialist company, Enclude. Signature of the contract took place on January 14 th 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 2016 the project implementation started with a kick-off call that was held on 2nd February 2016. This was followed by an extensive on-site mission in Jordan, which was conducted by the consultants between 1st March and 10th March 2016. 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 18 th March 2016. A first disbursement of EUR 148,319 (45% of the total contract value) was made on 2nd February 2016. A workshop was conducted in Jordan on 14th April 2016 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 took place on 12 and 13 July 2016 at the Dutch National Bank. This has been held with the dissemination workshop of the Moroccan mobile banking project: participation of the Moroccan central bank has been ensured in order to share benefit from the knowledge of both projects. The consultant provided on-going support to the CBJ and a second study visit took place in Sweden in November 21st and 22nd 2016.

On October 10-11, 2016, Enclude and the CBJ conducted a workshop to review all deliverables submitted to the CBJ. Enclude prepared presentations that summarized the content of the deliverables, as well as the approach and methodology undertaken to complete the documents. The CBJ also addressed any outstanding questions and comments. Based on the feedback obtained during the workshop, Enclude is incorporating any necessary changes and finalizing all deliverables for programme close-out.




No further Actions to be taken since the project has been closed and all expected results have been achieved.

n/a Click here to enter a date.

J. 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. Under this sub-component Enclude has submitted the following:

Comments on the Electronic Transactions Act

Comments on the Payment and Electronic Money Transfer Bylaw Revised MOU between the CBJ and the TRC Guidelines for the Development of a Consumer Protection and Dispute Resolution Framework for

JoMoPay Guidelines for Developing a Data Protection Framework Risk Management Framework and Implementation Plan Risk Management Workshop JoMoPay Account Structures Stress Testing Procedures Security Risks and Risk Mitigants

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: Enclude has submitted the following deliverables under this sub-component: Data Collection Methodology Data Collection Templates Recommendations on Indicators for Measuring the Impact of DFS on Financial Inclusion

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: The following study visits have been organized under this component:

Study Visit to De Nederlandsche Bank (central bank of the Netherlands), Study visit to Riksbank (central bank of Sweden), and Finansinspektionen (FSA - Sweden's financial

supervisory authority) Final Deliverables Workshop with the CBJ Regional Workshop with Bank al Maghrib (central bank of Morocco)The final workshop took place in 11

October, 2016

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.

The following table summarizes the activities, deliverables, and recommendations resulting from the implementation of the Promoting Financial Inclusion via Mobile Financial Services program formulated by Enclude:

Areas of Support

Deliverables Outcomes Recommendations

Stocktaking and Analysis

Stocktaking Analysis Report - The result of the stocktaking mission was the Stocktaking Analysis Report, which outlined Enclude’s initial findings and recommendations based on the assessment of the state of MFS in Jordan

and risks facing JoMoPay. The report also set forth priorities for Enclude’s areas of support during the implementation of the rest of the programme.

Legal and Regulatory Framework

- Comments on the Electronic Transactions Act.- Comments on the Electronic Payments and

Funds Transfer Bylaw.- Revised MOU between the CBJ and the TRC.

- Guidelines for the Development of a Consumer Protection and Dispute Resolution Framework for JoMoPay.

- Guidelines for Developing a Data Protection Framework

(i) Clearly defining key terms and maintaining consistency in definitions, (ii) keeping the ETA functional and technology neutral and (iii) Ensuring regulatory coordination consistency in definitions.

The CBJ indicated during the Final Deliverables Workshop in October 2016 that a new consumer protection department within the CBJ will be created. In the interim, a special committee will be appointed, with the selection of committee members still to be determined.

As the CBJ establishes this new department and the special committee, the key principles in the Guidelines will be very relevant and will help to ensure that consumer protection processes are as efficient and cost-neutral as possible.

National data protection law is currently being drafted in Jordan; the Guidelines are relevant to provide overarching data protection principles for the new law, as well as to support the CBJ in undertaking certain measures related to data protection and privacy specific to DFS.

(i) Execute the MOU between the CBJ and the TRC, (ii) Continue to build capacity for MFS at both regulators, including seconding of staff between the CBJ and TRC, (iii) Clearly define key terms and maintain consistency in definitions across all legal documents, and (iv) Consider the establishment of a national payment systems law.

(i) Establish clear procedures and guidelines on escalation parameters and dispute resolution mechanisms and (ii) consider the establishment of a specialized ombudsman.

(i) Update policies on data protection and privacy and (ii) Require the conducting of consumer awareness campaigns pertaining to data protection

Risk Management

- Risk Management Workshop

- Risk Management Plan

Presentation on global risks in MFS, (ii) Development of process flows, (iii) Life-size risk management matrices exercise and (iv) Solicitation of written inputs from stakeholders.

The Risk Management Matrix and Implementation Plan are based on an assessment of the current state of risks in the market given existing players and levels of JoMoPay adoption and usage. However, the matrix and implementation plan are designed to be dynamic tools for the CBJ to

(i) Designate an owner of the Risk Management Plan and maintain the matrix as a live, active matrix, (ii) Require PSPs and MNOs

- Security Risks and Risk Mitigants

- JoMoPay Account Structures

- Stress Testing Procedures

proactively identify and assess risks relevant to JoMoPay as the industry develops.

Enclude provided the CBJ with detailed information on security-related risks that have implications for MFS (contained in the deliverable titled, Security Risks and Mitigants).

This document details Enclude’s understanding of the structure and operation of key financial accounts that relate to JoMoPay (i.e. guarantee account, mobile banking account, and trust / escrow account, once this is allowed by the new banking law) and identifies specific risks and mitigants to reduce credit, liquidity, and settlement risks in the systems implemented in Jordan.

Enclude provided the CBJ with a recommended approach for conducting stress testing based on various scenarios that may face JoMoPay.

to submit an enterprise risk management framework and implementation plan for review by the relevant regulator (CBJ and TRC, respectively)

Enhance and execute the MOU between the CBJ and the TRC and establish procedures to ensure effective undertaking of the roles and responsibilities set forth in the MOU.

During the Final Deliverables Workshop with the CBJ in October 2016, potential solutions to mitigate this risk were discussed, including the holding the trust account at the CBJ; requiring that PSP trust accounts be diversified across commercial banks; implementing deposit insurance for the trust account; and establishing a loss sharing account to which JoMoPay participants contribute.

The CBJ confirmed that it is not in favor of holding the trust account at the CBJ and that the payments industry is opposed to a community loss sharing account. However, the CBJ is already considering deposit insurance to ensure that there is always sufficient collateral to settle NSIs and it will also evaluate the need to mandate diversification of the trust account across commercial banks as JoMoPay activity increases.

Implement stress testing procedures.

Data Collection Methodology

Knowledge and Information Sharing

- Data Collection Methodology and Data Collection Templates.

- Recommendations on indicators for an econometric model to track the impact of DFS on financial inclusion and the real economy.

- Study Visits

- Final Deliverables Workshop with the CBJ- Regional Workshop with Bank al Maghrib (BAM)

As one of the primary activities for this programme, Enclude supported the CBJ with the development of (i) Data Collection Methodology and two data collection templates: Data Collection – Bank Template and Data Collection – PSP Template, (ii) Recommendations on indicators for an econometric model to track the impact of DFS on financial inclusion and the real economy.

Sweden: On November 21-22, 2016, the CBJ will also attend a study visit in Sweden. Netherlands: On July 12 and 13, 2016, three members from the CBJ, two members from BAM, and representatives from Enclude and the EIB participated is a study visit to the Netherlands.

On October 10-11, 2016, Enclude and the CBJ conducted a workshop to review all deliverables submitted to the CBJ.On October 12, 2016, two representatives from BAM visited the CBJ in Amman for a regional workshop, facilitated by Enclude.

(i) Conduct consultation / training workshops with the banks and PSPs to review and promote understanding of the data collection templates, (ii) Consider options for automating the process of data collection and (iii) coordinate with the Research Department to finalize the econometric model and the nowcasting exercise.

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

(US$)

(x)


(y)

Total (US$)


0 370,000 370,000


0 370,000 370,000

Actual Amount Disbursed (c): 0 367,567.896 367,567.688

L. 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 165,405.348 0 165,405.3482017 202,162.340 0 202,162.340

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

56,000 0 56,000

N. Results Framework and Monitoring

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 2F2017

YR3F2018

YR 4F2019

YR5F2020

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)

Reporting to the EIB

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: Eberhard Boemcke


Recipient Entity: Jordan Enterprise Development Corporation (JEDCO)

Name and Email of Recipient Entity Contact:Eng. Riyad Al Khatib, Acting CEO, JEDCO ; [email protected]


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

Total Amount Disbursed (Direct and Indirect in US$): 1,085,381.68


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


Satisfactory


The implementation of the whole project is ongoing. The activities implemented over the past six months have built on the earlier design work carried out during the Inception Phase of the Programme, through ongoing capacity-building of Jordan Enterprise Development Corporation (JEDCO) staff (including training and development) as well as the establishment of the Programme’s organisational and operational infrastructure.

After one year of implementation, the third Steering Committee was held on June 6, 2016 in Amman. The next Steering Committee will be held in Amman on January 19th 2017.

Whilst the design and specification of the Programme is disaggregated into specific Work Packages (WPs), in order to achieve Programme outputs and impacts, the implementation of each of the WP has been carefully scheduled and harmonised to ensure that synergies between them are realised.

Solid progress with the implementation of the Work Programme and increasing momentum in terms of SME participation and engagement with the Programme is evident from the number of Jordanian SME’s who applied to join the programme..


Since the official launch on 14th February 2016 and the announcement on 6th March 2016 of the opening of applications to join the ‘Accelerate with JEDCO’ programme, some 100 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.

These applications have been jointly reviewed and evaluated by the experts and the JEDCO team using diagnostic software developed through the programme to assess the capability, capacity ambition and opportunity of the applicants to grow their businesses and the growth potential of each applicant.

In order to extend the Growth Management approach throughout JEDCO as part of the organization’s transformation and the establishment of a new business model for the organization following the ending of the EU Grants schemes, 13 JEDCO staff have been trained in the Growth Management approach. These staff (Business Growth Managers) have been drawn from a wide range of operating divisions within JEDCO thus ensuring that the Growth Management approach developed and delivered by the programme is embedded throughout JEDCO. 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, have taken part in the selection process.

A key part of the programme’s design is that the BGM’s have the portfolio of tools from both the programme and more broadly from within JEDCO and beyond 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 over 70 business growth coaches trained thus meeting the KPI for this work package contained in the programme’s ToR. In addition in order to institutionalize business growth coaching within Jordan, coaches trained through the programme have been incentivized by the programme to join the International Coaching Federation (ICF). This has led to the establishment of an ICF chapter in Jordan with over 30 members thus institutionalizing coaching as a profession within Jordan and ensuring its sustainability beyond the end of the programme.

In the autumn of 2016 an assignment was carried out using international experts to train Jordanian trainers to deliver Masterclasses to participating SME’s in the programme in key areas of relevance to business growth and development 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 and has resulted in a talent pool of 24 Jordanian trainers being established to deliver common Masterclass content to programme participants throughout Jordan.

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 Whilst this has been developed as an integrated package for BGM use, it is built on a modular basis to allow easier updating and customization to meet future JEDCO needs. 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.

As was highlighted in the previous report, 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 a successor for the Head of the Observatory has been successful with the appointment of Mr. Adli Aqel as Head of the Observatory who commenced his work in late December 2016. He joined the Senior Statistician Mr. Ayman Al Khatib and Senior Economist Ms. Dana Dudokh who took up her appointment in October 2016. Whilst interviews were held for the post of Technical Writer, both JEDCO and the TA team believe that given the Observatory’s emerging needs as detailed in its 2017 Annual Workplan are better served by the appointment of an Economist and steps will be taken to recruit a suitably qualified candidate during early 2017. With support from experts in terms of capacity development and business planning, the achievement of full operational capability of the Observatory has not been delayed significantly. In order to further accelerate the building of capacity within the Observatory, an international expert, Mr. Rob van Der Horst has been 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. In addition, a JEDCO film in Arabic to promote the programme has been produced and was utilized by JEDCO in a regional roadshow thus extending the programme’s reach across Jordan.

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 some 100 businesses have expressed an interest in joining the programme. Eligibility and suitability checks have been carried out and following this 24 businesses are being taken through the diagnostic and Growth Action Planning process led by JEDCO BGM’s supported by the TA team. Further calls for applicants to the programme are planned at six monthly intervals during the remainder of the programme commencing in early 2017. This will ensure that the ToR targets regarding the number of businesses assisted by the programme are met.Sub-component 1.2: Training JEDCO Staff

Status of Implementation: To date 14 JEDCO staff have been trained as Business Growth managers with an initial cadre of 5 trained through a study visit to the UK to learn and observe best practice in the Growth Management approach with the balance receiving both on and off the job training in Jordan. Extensive mentoring of JEDCO staff has been carried out by the TA team as they process applicants to the programme, apply the diagnostic tools and develop Growth action Plans. In addition all BGM’s will receive the full suite of Masterclass training covering 8 subject areas relevant to business growth and development to better assist them identify and respond to business growth issues.

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: With the 3rd Business Growth Coaching Development (BGCD) programme delivered during the period commencing 9th October through to 19th December 2016, a total of 70 participants have now completed over 60 hours of Business Growth Coach training through the programme and are currently extending their practical experience of coaching to build the necessary 100 business coaching hours to qualify to ICF for credentialling as a business coach.

In order to facilitate the building of coaching hours for trained coaches, the TA team approached three institutions offering their members access to ‘pro bono’ business coaching. Institutions approached were:

• Jordan Forum for Business and Professional Women – Edlien Khoury;• Al Urdonia – Lil Ebda – Eng. Mohammad Al Amoush; and• University of Jordan –School of Business – Dr. Zu’bi M F Al-Zubi.

All meetings were positive and each institution appeared enthusiastic about the approach. Subsequently the University has proved to be the most active in support of this initiative. Currently there are seven business coaches holding coaching sessions with seven post-graduates/graduates. This approach will continue in order to support BGCD participants to attain the required 25 hours of coaching experience.

During the ‘kick-off’ meeting to launch Jordan’s SME Growth Programme, an additional requirement was imposed on the composition of Talent Pool membership: of the 70 members, the gender split is to be 50:50. This target has been achieved.

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 2. CONTACT TRACKING SYSTEM 31/05/2016 Complete3. ACCESS TO FINANCE 30/06/2016 Complete4. COACH MATCHING 15/07/2016 Complete5. MASTERCLASS SCHEDULING SYSTEM

30/07/2016 Complete

6. REPORTING SYSTEM 15/08/2016 Complete

Within the system, the deployment of the members of the Talent Pool to coach up to 70 clients (Category B businesses) is based on an algorithm contained within the current coach selection software developed by NKE Abedelhadi Shajrawi. The software developed ‘matches’ potential coaches to participating businesses with the business making the final selection of the coach. In addition the software will provide a facility to ‘track’, on a cumulative basis, the number of specific coaching assignments allocated and delivered by each individual coach. Utilizing this information JEDCO are able to maintain, and track, on a continuous basis, the disbursement of working days against the proposed budget of 140 working days approved for coach deployment. They are also able to ensure equitable allocation based on the needs of the SME and capabilities of coaches.

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: In order to ensure that the selection processes are tailored to the Jordanian economy 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. This has considerably aided understanding and absorption by JEDCO staff. 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 have been 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, in conjunction with senior JEDCO staff particularly the JEDCO Programme Director, Mr. Mamoun Shawar, the applications from SME’s to join the scheme were allocated to BGM’s for evaluation initially in terms of their eligibility and suitability for the scheme and thereafter the full application of diagnostic software and the development and implementation of Growth Action Plans..An assignment to develop a suite 8 Masterclasses was undertaken in September/ October 2016. The objective of this assignment is twofold:

Customise eight Masterclasses to suit the Jordanian business environment, and; Deliver a ‘Train the Trainers’ course and establish a cadre of 24 Jordanian trainers to deliver

Masterclasses to Jordanian SMEs participating in Jordan’s Small Medium Enterprise (SME) Growth Programme.

The assignment provided 8 international experts who trained a cadre of 24 Jordanian trainers, through the ‘Training of Trainers’ course, to deliver the customised Masterclasses to Jordanian SMEs. The eight Masterclasses developed are entitled:

Access to Finance Business Development Leadership Development Access to International Markets Innovation

Efficiency (Lean Manufacturing) Finance for Non-Financial Managers; and Advanced Excel

Delivery of specific Masterclasses is demand-driven: only when a ‘critical mass’ of nine SMEs within one of the three geographic regions (Northern, Central and Southern) is attained will a Masterclass be delivered. Once the ‘critical mass’ has been achieved, the approved Jordanian trainers (NKEs) will be contracted to deliver.

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: 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.

After consultation with the Observatory team, NKE Abedelhadi Shajrawi duly prepared the hardware specification and software specification and progressed the tender process in consultation with JEDCO’s procurement staff on a “local tender” basis. Offers were duly received, a tender report was prepared and a number of elements of the hardware and software package were approved by EIB. These included a 16GB M4 Ram upgrade for JEDCO’s Lenovo Rack server X3630, VMware vSphere 6 Essentials Kit virtualization software for three hosts, and laptops, printers and monitors for the use of Observatory staff.

The procurement proceeded and installation in JEDCO was carried out under the supervision of NKE Abedelhadi Shajrawi.

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.

Following the departure of Mr. Imad Al Akhdar as Head of the SME Growth Observatory, JEDCO advised that they wished to follow formal hiring procedures for this post by re-advertising the post. This was done externally through newspaper advertising in both Arabic and English in the Jordanian press and internally within JEDCO to suitably qualified candidates from whom two applications were received. This competitive process resulted in

Mr. Adli Aqel’s appointment as Head of the Observatory joining colleagues Mr. Ayman Al Khatib (Senior Statistician) and Ms. Dana Dudokh (Senior Economist) who were already in post.

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. This assignment was however placed on hold until the Head of the Observatory was in post and the outputs of the GEM (Global Entrepreneurship Monitor) survey were available. These will be released in February 2017.

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


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.

Whilst the primary focus of this WP is deal flow to funds, the overall Programme aim in this area is to create a “holistic and comprehensive ecosystem that facilitates access to competitive finance”. This means it is designed to cover both debt and equity finance from all types of financial institutions.

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.The Access to Finance assignment carried out by NKE Phil Bullimore reached its conclusion on 24th October 2016. As well as completing the design and development of the Access to Finance tool, NKE Phil Bullimore, in conjunction with the programme’s IT expert, NKE Abedelhadi Shajrawi, provided full briefings to members of the SME Observatory team on the design, structure and content of the database with a view to transferring the management, maintenance and updating of the ‘back-end’ database to the Observatory. This will ensure its sustainability during the remainder of Jordan’s SME Growth Programme and beyond.

Sub-component 5.2: Monitor the deal flow to the existing funds and provide advisory support on the due diligence services.Status of Implementation:

An 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.

Discussions have been held with the Association of Jordanian Banks (AJB) regarding their membership’s involvement in inputting and updating information regarding banks products and services into the database. A joint committee between AJB, JEDCO and the TA team will be established in early 2017 to collect and co-ordinate the required information.



(x)


(y)

Total (US$)


0 3,650,000 3,650,000

Amount Received from Trustee (b*):

0 3,650,000 3,650,000


0 885,381.68 885,381.68

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 340,633.304 544,748.378 885,381.68 2017 643,654.58 643,654.58 1,287,309.16

2018 643,654.58 833,654.58 1,477,309.16


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

100100

applications received

175 250 300 350Quarterly Startups and

SMEsJEDCOContractor

Contractor & JEDCO

b) No. of Staff Trained

0

55 JEDCO Staff recruited and

trained

1013

JEDCO Staff

recruiter and trained

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

training42 coaches

undertaking training

70 coache

s comple

ted trainin

g

75 100 100Quarterly

JEDCOContractor Service ProvidersInternational Service Certification Bodies Startups and SMEs

Contractor & JEDCO

b) Growth Impact of Services Delivered on Businesses.

010% 20% 50% 65% 75%

c) Database at JEDCO

0

1Database fully

operational by June 2016

Database

operational

October 2016

1 1 1

Indicator 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.

a) No. of exclusive high growth Startups & SMEs selected.

0

25Selection process

complete. Growth Action

Planning process

underway

50 100 135 175

QuarterlyJEDCOContractorProvidersInternational Service Certification Bodies Startups and SMEs

Contractor & JEDCO

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

Contractor & JEDCO

identify contractor. 2. Evaluation Committee Reports on Selection Process.3. Contract Signed between JEDCO and Contractor. Payment transfers for services rendered.

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 underway30 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

Contractor & JEDCO

the Policy Department at the Cross Cutting Support Directorate.

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 needs assessment reports.5. Staff attendance of training programs.

Contractor & JEDCO

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

K. 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




L. 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 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 were requested by the Jordanian government to be reallocated to other activities. Based on the interest of The Jordanian Government in reallocating residual funds to new TRANSTRAC activities 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, was signed by the Jordanian government in November 2016.


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: All actions in Jordan under this regional programme have been completed by end November 2016.

- Component #2 (a) Rehabilitation and upgrading of routes R15 Amman airport-Aqaba Back Road and R65 North Shouna-South Shounaboth TAs have been completed and approved by MPWH. R15 completed in February 2016 and R65 in June 2016.

Activities proposed for restructuring:

- Component #1 (a) TA to transportation activity: Activity restructured. to Road Safety Action Programme (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 cancelled and replaced by : Full feasibility study (including final designs and tender documents), as well as a full Environmental and Social Impact Assessment (ESIA) for missing sections that will enable the completion of the construction of Salt Ring Road and Irbid Ring Road in Jordan. Budget: USD 1,000,235 (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 had not fully materialised 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 was restructured to the extended TransTrac activity and local contribution in kind to be USD200,000 (cf. separate restructuring note).

M. 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)

Status of Implementation: - This activity was restructured and funds absorbed partly under the Road Safety Action Programme

(see below), (cf. separate restructuring note).

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


- All actions in Jordan under this regional programme were 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 in February 2016 and R65 in June 2016.

Sub-component 2.2: Upgrading and expansion of Border crossing facilities


This activity was cancelled and replaced by a feasibility study for the rehabilitation and completion of the construction of the Salt Ring Road and Irbid Ring Road in Jordan (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 had not fully materialised 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 was restructured to the extended Transtrac activity and local contribution in kind to be USD200,000 (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 500,000 500,0002016 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

A 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


Eng. Yarub Qudah, 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


884,322


6/11/2014


7/1/2014


6/30/2019



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



175


The detailed project plan was finalized and formalized based on the different variables that affect(ed) project implementation. Additional measures were taken to compensate some of the delays encountered at the beginning of the project. An important measure includes fast-tracking phase 2 to start before the end of phase 1; i.e. instead of having them in sequence, they would overlap. Phase 2 includes building linkages with additional external systems (licensing and other inspection systems), and building advances inspection features in the system.

The registry of businesses subject to inspection was built and populated with information about businesses in Jordan, which will be used by inspectorates to plan and manage their inspection operations. The sources of data for this registry include the Company Control Department’s database “CCD” and the Ministry of Industry & Trade & Supply’s “MoITS” sole proprietorship database. Algorithms for the cleanup of ghost (inactive) businesses were designed and applied, using information from other sources including the Customs Department, Social Security Corporation, and Greater Amman Municipality. The Tax Department’s data was also tapped into to obtain ISIC4 classification for businesses. The registry was built and data was imported from the above-mentioned sources. Also, linkages for online data exchange between the inspection registry and the above-mentioned sources are being built, which is needed for the ongoing maintenance and update of the inspection registry’s data.

The design of the inspection workflow modules is progressing well. Based on actual progress and implementation challenges, the project’s technical team decided to use an alternative technical approach for the development which would minimize risks of future delays or complications in matching the expected features with the actually developed features. Preparations for the deployment phases with the various inspectorates are well-progressing and being finalized. (Please refer to Section C, Sub-Component 1.1 for details).

The draft inspection law was finalized following a number of extensive consultation sessions with public and private sector stakeholders. The Council of Ministers has submitted the draft to the Legislation and Opinion bureau for review as per the standard legislative cycle.

The total amount of contractual (unpaid) commitments as of December 31 st, 2016 is USD 1,451,704. It is expected that the IT vendor will submit a number of invoices amounting to USD 230,124 in the first half of January 2017.



Complete the detailed design and development for the system IFC in collaboration with inspectorates

February 2017

Formalize the acceptance of the inspection registry IFC Mid-January 2017

Train MoITS staff on the management of the registry IFC and MoITS First Quarter of 2017

Complete the system deployment at five inspectorates, and initiate it at two other inspectorates

IFC in collaboration with inspectorates

By June 2017

Initiate phase 2 of the project IFC in collaboration with inspectorates

May 2017

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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.


Inspection RegistryRegistry of businesses subject to inspection was built and populated with information about businesses in Jordan, which will be used by inspectorates to plan and manage their inspection operations. The sources of data for this registry include the Company Control Department’s database “CCD” and the Ministry of Industry & Trade & Supply’s “MoITS” sole proprietorship database. Algorithms for the cleanup of ghost (inactive) businesses were designed and applied, using information from other sources including the Customs Department, Social Security Corporation, and Greater Amman Municipality. The Tax Department’s data was also tapped to obtain ISIC4 classification for businesses.

The registry was built and data was imported from the above-mentioned sources. Also, linkages for online data exchange between the inspection registry and the above-mentioned sources are being built, which is needed for the ongoing maintenance and update of the inspection registry’s data.

The inspection registry is owned by MoITS. Procedures for the maintenance of this data were designed and put in place. The Ministry is working on securing dedicated staff to be responsible for registry management.

It is worth mentioning that building the registry faced some operational challenges including the lack of a standardized classification system across government agencies, including registration agencies who are not utilizing their own custom classification schemes, and therefore the inspection registry was designed to accommodate for the current classification schemes used by CCD and MoITS in parallel to the ISIC4 classification, as a temporary workaround. The Department of Statistics is currently leading an initiative to adopt ISIC4 across all government agencies, which will eventually prevail and replace the current classifications. Other operational challenges included some issues with data quality from the sources, which required additional quality control measures and additional iterations to resolve some data discrepancy issues at the sources.

Inspection Workflow DesignIt was decided to implement a different software development methodology that is based on the “agile methodology”. The new methodology allows IFC/the client to see and try the features and modules of the system once they are out of the development, which allows IFC/the client to give comments and requests for modifications on the implemented modules; this decreases the risk of having a deviation between the

177

expectations and the actual implementation of the system. Such risk would be higher in the original approach, which used the “Waterfall Methodology” which documents all the requirements at the beginning of the project and IFC/the client would see the product at the very end of the development phase. The new methodology was seen as more suitable due to the complex nature of this system.

Preparations for the Deployment PhasesPreparations for the deployment phases were started since the outset of the project. This is because a lot of interaction with the inspectorates is required to collect their customized requirements, data, and information in terms of detailed workflow and other specifics related to the inspectorate. System documents for the 8 inspectorates are being finalized and will be sent to inspectorates for endorsement before adopting them.

The development of risk-assessment tools and inspection checklists was completed for additional inspectorates during the past period. These tools are now completed for all inspectorates except for the Ministry of Health which is in progress.

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 started

Training activities are incorporated within the project plan and will be delivered once the relevant components are delivered. The training on the inspection registry was postponed because MoITS needs to secure staff dedicated for the management of the registry.

Sub-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


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 381,851 127574 509,4252017 638, 582 492,198 1,130,7802018 443,205 91,900 535,1052019 91,900 0 91,900


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Disbursed (US$) Available (US$) Total (US$) 298,630 53,475 352,105

179




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

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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”

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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$): 71,956 (Client cost-share)

Total Amount Disbursed (Direct and Indirect in US$): $55,054+22,601.5 (regional)=$77,655.50


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: During the period, following completion of the earlier diagnostics, implementation was slowed a bit while National Microfinance Bank (Al Watany) searched for an appropriate Risk Manager. By December, one had been identified and IFC moved forward by arranging a kick-off meeting and sharing a draft Risk framework and charter. Under Component 2, IFC moved forward with Tamweelcom on a new strategic business plan assignment, to cover the coming 3 years. Under Component 3, IFC developed and approved a detailed project plan for its responsible finance project and reached out to Tanmeyah to begin planning (for a workshop) and NMB (for an assessment). IFC likewise worked with Sanabel (component 4) to disseminate a VSE report developed last period, to organize its annual conference (Nov 2016) and host a risk managers’ roundtable on the sidelines, assembling staff from 7 key MFIs in the region to share lessons learned.


Expected Delivery

Date Begin implementation of the Risk Management component with Al IFC (Al Watany) 2/17/2017

18 Microfinance service providers in the region include microfinance institutions, microfinance banks, non-bank financial institutions, NGOs and postal banks amongst other entities.

182


WatanyComplete Strategy and Business Plan assignment with Tamweelcom and finalize an agreement for a new project

IFC (Tamweelcom)

6/30/2017

Conduct one Smart Assessment (client protection) with a partner in Jordan and a workshop in collaboration with Tanmeyah and possibly the Central Bank

IFC (Smart Campaign and Tanmeyah)

6/30/2017

Conduct ESOP and transformation survey with Sanabel with regional MFIs

IFC (and Sanabel)

6/30/2017

C. Implementation Status of Components Component 1: Risk Management


Current Rating: Moderately Unsatisfactory


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

Status of Implementation: - Although initially slowed while NMB recruited a Risk Head, after the new Risk Manager came on Board in December, the IFC project team conducted an initial kick-off meeting to discuss the project scope. Likewise, the team shared draft templates for the Risk Department charter and Framework for review and discussion. Also, IFC sent the CEO of NMB to attend the Back to Boulder Training Workshop which was jointly organized by IFC and the Boulder Institute in Washington D.C. The program brought together leaders from within and outside of the microfinance community, and helped provide the CEO with practical tools, cases, and experiences in the areas of risk governance and management. The next phase, or implementation of the recommendations on internal audit, is likewise pending the completion of recruitment of an Internal Audit Head.

Component 2: Transformation Preparedness, Transformation and Establishment of GreenfieldsPrevious Rating: Moderately Unsatisfactory

Current Rating: Satisfactory Cost (US$): 261,250 (this amount represents direct costs funded only through the Transition Fund).

Sub-component 2.1: Assisting MFIs prepare for transformation

Status of Implementation: -At the urgent request of Tamweelcom’s Board, and in light of new regulations and a changeover in management, IFC began a new advisory project to help the MFI to develop a strategy (including the possibility of transformation) and 3-year business plan. Two missions were conducted during the period to interview key stakeholders, review financials and hold a workshop with Board and Senior Management to jointly define the new direction. The assignment will be completed in the coming period, and may lead to follow on assignments linked to the key gaps identified during the strategy work.

Component 3: Consumer Protection Previous Rating: Moderately Satisfactory



183

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 approved internally a detailed project plan designed to scale up client protection in Jordan and the region. It also began to reach out to select MFIs in Egypt and Jordan in particular, including NMB and Tamweelcom, encouraging them both to apply for available funding and also to plan for a first Smart assessment mission with IFC. Likewise, IFC reached out to Tanmeyah in Jordan about conducting a client protection workshop with the regulator to help enhance its understanding of key client protection principles and enforcement mechanisms. Both an initial assessment and the workshop are both expected to take place in the coming period.





Sub-component 4.1: Sector-wide workshops and publications

Status of Implementation: During the period, as planned IFC translated into Arabic and disseminate its report developed during the previous period (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). IFC also sponsored the recent Sanabel Annual Conference (held in Morocco) and helped organize and lead several key plenary sessions (including on HR and Risk). On the sidelines of the conference, a Risk Roundtable was organized by IFC, bringing staff from 7 key MFIs in the region to discuss the tools, challenges and lessons learned from implementing risk frameworks. This included 2 MFIs from Jordan (NMB and Tamweelcom). Finally, IFC began with Sanabel to develop a new survey on transformation and employee share ownership plans (ESOPs) which many microfinance institutions in the Arab world are considering nowadays given new regulatory changes which allow non-governmental organizations (NGOs) to transform to regulated financial institutions. This survey will be disseminated in the coming period and a report drafted.

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 55,054+22,601.5 (regional)

77,655.50

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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 End2015 N/A 25,000 25,0002016 25,000 25,000 50,0002017 150,000 200,000 350,0002018 287,500 N/A 287,500


0 37,500 37,500

185






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

122,850 (23,491) 253,682 (25,639)

392,905 540,967

Annual MFIs IFC

Value of micro loans disbursed USD N/A

100,183,811 (26,907,438)

212,463,185 (28,571,463)

333,618,320 463,375,356 Annual MFIs IFC

Number of micro loans outstanding (non-cumulative)

Number107,998 122,850 (63,975) 130,832

(66,457)139,222 148,063

Annual MFIs IFC

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

USD

54,610,807

63,252,500 (42,844,733)

68,840,881 (44,422,612)

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)21 Regional Risk Roundtable (shared with Egypt)

186

Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making in Jordan

A. Basic Project InformationActivity Name: 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: Andreas Schaal ; Tatyana Teplova


Recipient Entity: Jordanian National Commission for Women (JNCW)



Total Amount Disbursed (Direct and Indirect in US$): 335,105 USD


5/19/2015


11/3/2015


9/30/2018




A. 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



After holding Parliamentary elections in September 2016, Jordan is now gearing up for local elections, a core focus of Component 2 of this project. The Independent Elections Commission (IEC) is due to start preparations for municipal elections – tentatively set to be held in August 2017. As a result, the OECD, in cooperation with the JNCW held a Training of Trainers (ToT) Workshop with 18 Jordanian trainers to familiarize them with the regional training programme designed for Component 2b to support women running for elections and deliver training to them next year. Representatives from several organisations that sit on the project’s CSO Advisory Group took part and will engage in training next year.

Project donors remain engaged in the project and periodic updates are given on progress via emails, conference calls and short visits during missions. There has been great collaboration with UNDP, in particular, given that they run an Electoral Assistance Programme in Jordan. Both the UNDP and OECD will continue to benefit from one another’s technical and analytical support – especially in assessments undertaken. Immediate plans for next year will be to hold capacity building with prospective female candidates running for 2017 local election in the first quarter of next year and to bring together the project Steering Group and the CSO Advisory Group to discuss remaining activities, ensure continued support and identify areas where members can contribute support in-kind.

187


During the past six months, the main achievements so far include: Elaboration of a country-based assessment of the existing opportunities and current challenges faced by

women candidates which will be shared with counterparts for validation; Elaboration of two “Candidates” and “Train the Trainers” manuals. Elaboration of a participant workbook, as well as PowerPoint presentations to support the training of

prospective female candidates running for elections, covering all topics mentioned in the project proposal (1. Introduction to voting registration and civil rights; 2. Running successful campaigns: Campaign fundraising and financial integrity of MP; 3. Balancing duties and responsibilities of the parliamentary service; and 4. Leadership development and Parliamentary procedures). These modules have been tailored to the political context of the country and can be delivered separately or jointly. In addition, the training modules used in Egypt and in Morocco have been amended to touch on the most important topics for Jordan and designed in a way to create an active learning environment and less tiring to ensure maximum impact and participation.

Organization of a capacity-building seminar intended to future trainers (ToT).




Validation by the counterparts of the assessment of the existing opportunities and the current challenges faced by women candidates in Jordan

OECD in collaboration with the JNCW

January 2017

Organization of the capacity-building seminar for women candidates (component 2b)

OECD in collaboration with the JNCW

March 2017

B. 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: Implementation will begin in Summer 2017 as new Parliamentary elections took place in September 2016. Ample time should be given for the new MPs to settle into their roles before a full assessment is conducted. The first draft of the assessment report is expected to be complete in the fall 2017 – to be circulated to country stakeholders for their input and finalization by the start of 2018.

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 of 2017A study visit will take place in December 2017.

Component 2: Strengthening capacity and skills of women parliamentarians and the national and local level


188

Sub-component 2.1: Conducting country-based assessment of the existing opportunities and the current challenges faced by women candidates


A country assessment report is being finalized and validated with country counterparts highlighting the challenges faced by women running for elections and enabling factors for their increased political engagement in May 2016.

A full, regional training package has been created to support women running for elections and has been – to some extent – contextualized for Jordan. The training modules were created in cooperation with a Canadian expert and expert TOT trainer from Lebanon’s Ministry of Finance – so that they could be a) utilized for ToT sessions and b) implemented by the local trainers taking part in the aforementioned sessions to build the capacity of female candidates to run for local elections.

The overall aim is to provide a foundation from which countries can draw and specialize to their specific needs. The OECD will support in the first initial training, but JNCW and other country partners will continue to tweak and scale the trainings up

A TOT was held with 15 trainers in Amman Jordan from the 28-29 November and was very well received. Selected trainers from the TOT will continue to work with JNCW to fine-tune the training programme to deepen suitability to Jordan’s context, including ensuring that decentralization features strongly in the module that covers the legal and electoral framework of the country. Training of prospective candidates from Amman and several governorates is expected to take place in March 2017, well in advance of elections, in order for trainers to finesse the training modules and scale up the training to other governorates between April to August.

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 will take place in March 2017, ahead of local elections, tentatively scheduled for August 2017.




Cost (US$): 119,004

Status of Implementation: Implementation is foreseen for May 2018.




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. The 2017 Regional dialogue is set to take place in Egypt – in sync with the country’s designated “year for women” in the latter half of the year – either the third or fourth quarter.

C. Commitments and Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution Direct Cost for ISA- Total (US$)

189

(US$)

(x)

Execution (US$)(y)


593,433 USD 593,433 USD


192,203 USD 192,203 USD


D. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 90,000 USD 80,000 USD 170,000 USD2018 80,000 USD 48,228 USD 128,228 USD

E. Commitments and Disbursements of Funds for Indirect Costs (US$)Disbursed (US$) Available (US$) Total (US$)

39,900 0 39,000

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F. Results Framework and Monitoring




2016‘A’

2017‘F’

2018‘F’


















Indicator5 : No. of trained representatives of parliamentary secretariat, parliamentarians, local



Public sector staff received training in various thematic areas

191

elected officials and women candidates to improve their capacity for better public service delivery








Qualitative 0 0 10 20 Once Project progress report PIT Number of Government Bodies and institutions received support to conduct an analysis of parliamentary electoral and workplace operations, processes and policy frameworks through gender lens



90 90 Annually Project progress report PIT Number of trained representatives of parliamentary secretariat, parliamentarians and local elected officials


Indicator 3: Studies, assessment, reports, action plans, roadmaps, models of good practices or frameworks endorsed


Project progress report PIT No. of assessments, guidelines, materials, training modules, toolkits and guidelines designed to enhance

192

the enabling environment


Quantitative 0 15 trainers (ToT)

Candidates will be trained in 2017

205 205 Annually Project progress report PIT Women cnadidates trained



Quantitative 0 0 10 15 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


Quantitative 0 0 5 10 Annually Project progress report PIT Parliament , Ministry of Women affairs and local elected institutions received support services aimed at increasing their capacity to engage stakeholders, including women’s groups and mainstream gender sensitive principles








193


194

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

Jordan Investment Commission


Zeina Toukan, MoPIC, [email protected]

Thabet Elwir, President, JIC, [email protected]

Mukhallad.Omari, Secretary-General, JIC, [email protected]



Total Amount Disbursed (Direct and Indirect in US$): World Bank: 1,179,144OECD: 657,998






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).

Rating for progress towards achievement of objective: Satisfactory



The overall implementation of the project is well on track.

Final substantial activities have been carried out this semester by the OECD under component 1 with an additional capacity-building workshop on investment disputes and the launch of the “Clean Energy Investment Policy Review of Jordan”.

195








WB support for the Jordan Investment Commission (JIC) has progressed as planned. The project deliverables under the “Jordan Investment One Stop Shop (OSS)- Phase II” give a detailed outline of the reform roadmap for the establishment of the One Stop Shop in JIC and a comprehensive approach to streamlining and reforming the business entry and licensing regime in Jordan. The project deployed JIC’s e-Investment Portal during a workshop that was held in December 2016 and attended by all stakeholders. The portal will help JIC to provide faster and better services to the private sector. It will allow JIC to communicate and track client cases in an efficient and reliable manner. The portal includes a comprehensive database that provides investors with key information about tax, customs, and financial incentives available in Jordan, including information about relevant contacts, applications, regulations, and the overall process from start to finish.

Strengthening the investment facilitation provisions and capacities of JIC: This activity achieved a key milestone by making the Investment promotion directorate fully operational. JIC hired 7 new staff to join the directorate and the project conducted comprehensive capacity building activities to prepare them to implement the proposed mandate and scope of work. The directorate started facilitating some leads, coordinating and collaborating with relevant stakeholders, and preparing for upcoming event.

The project conducted additional training and guidance for the management of the directorate on content management, branding, and services management.

Energy Efficiency Standards and Labelling: A two day workshop was held in Brussels in September 2016 to improve coordination between the Jordan Standards and Metrology Organization and the EU Commission on harmonization of standards and restart negotiations on critical trade agreements.

Key results of the workshop included Jordan and EU agree to restart negotiations on the ACAA and revisit the main barriers that would prevent

progression with negotiations Parties went into details about EU requirements and flexibilities and developed a set list of recommendations for

Jordan Improving the manufacturing sector and the business environment in general is a much needed and urgent step

that Jordan needs to take in order to fully benefit from the agreement on the relaxation of the rules of origin.

Final OECD activities under component 1 scheduled for implementation in 2017 comprise: 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.

The OECD substantive activities under the project will then be completed.

Next WB activities: WBG will work with ministry of public sector reform to build their capacity to monitor and assist stakeholders to

implement proposed reforms The project will conduct one knowledge sharing activity to expose clients to international experiences.

Support to the investment window: WBG will continue to support the various efforts related to business environment reform through separate

activities, conditioned upon strong commitment on the beneficiary side. Ministry of ICT to work closely with project team to synchronize efforts related to automation and the

standardization of the business registration process.

Support to investment promotion / after care:

IP Directorate staff to be trained on the use of the new CRM once it is back on-line. Supporting the IP Directorate to ensure that upcoming commitments and activities generate as many leads as

possible Propose and plan aftercare activities to be carried out in 2017.

196

Review the Investment Promotion Strategy for JIC; identify one or two strategic priorities/activities and assist the IP Directorate in implementing them.

Energy efficiency: standards and labels:

Integrate findings of the EU Workshop into project output and develop action plan for the implementation of recommendations by the EU

Management and Coordination:

The management of the project is going smoothly. Government reshuffle end September has not undermined project implementation and numerous activities with the main beneficiary organization, the Jordan Investment Commission, have been carried out.

Cooperation with USAID, which is implementing the Jordan Competitiveness Program, continues to be excellent. An additional workshop was jointly organised in December 2016 (USAID provided logistical and convening support and the OECD its analytical expertise).

The WBG and EU office in Amman are coordinating efforts to help build JSMO’s capacity to comply with the much-needed ACAA agreement. The EU proposed a twining project with the objective to fulfil Jordan’s commitment within the EU-Jordan Association Agreement. This will lead to the establishment of a deep and comprehensive free trade area between Jordan and the European Union.


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 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.

All activities under this sub-component have been completed. The “Analysis of the new Investment Law with a focus on the protection of investment” was presented in a workshop in JIC. Then the OECD organized a Workshop on “Boosting Jordan Competitiveness: Modernizing the Legal Framework for Investment” jointly with USAID in cooperation with JIC. Attended by nearly 100 participants, 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 (strategic conclusions available).

In September 2016, the OECD organized, with the logistical support of USAID, a capacity-building workshop to support the establishment of the National Contact Point to promote Responsible Business Conduct (RBC) principles. As an adherent to the OECD Declaration on Multinational Enterprises and International Investment, Jordan has an obligation, which is yet to be met, to establish an NCP to implement these principles. The workshop, gathering stakeholders from the private sector, NGOs, the civil society and relevant governmental agencies, aimed at building the capacity and providing peer learning to fulfill this obligation.

The recent launch of the EU-OECD Programme on Investment Promotion in the Mediterranean will allow to continue supporting Jordan’s efforts in its investment policy reforms.

Sub-component 1.2: Investor Protection and Restrictions Analysis (OECD)


197

http://www.oecd.org/mena/competitiveness/promoting-investment-in-the-mediterranean.htm

Activities before this reporting period consisted in two policy advice papers followed by two capacity-building workshops on respectively restrictions to foreign direct investment and international investment agreements. Consequently the regulation on Non-Jordanian Investors was adopted.

A Workshop on “Investment Dispute Management in Jordan” was organized on 14-15 December jointly by the OECD under the MENA Transition Fund Project on Competitiveness and Investment in Jordan, USAID under the Jordan Competitiveness Programme, and the Jordan Investment Commission. USAID covered all the logistical expenses and managed invitations. The workshop aimed at building capacities of Jordanian policy makers on investment dispute settlement and prevention. It was opened by H.E. Dr Mukhallad Omari, Secretary General of JIC and brought together 30 participants from various ministries and governmental agencies (representatives from JIC, Ministries of Trade and Industry, Finance, Justice, Interior, and planning and international cooperation, Aqaba Development Zone, Airport Authority, private sector representatives and a university professor).

During the two-day workshop, participants benefited from the presentations of OECD experts, international investment lawyers and Jordanian experts (including two former ministers). The workshop was very interactive and led to series of recommendations (eg revision of the article on disputes under the Investment Law, amendment of the Arbitration Law, enhanced mechanisms for dispute management and prevention, setting up of a grievance unit in JIC, workshop for municipalities and governorates on investment policies and disputes (upon request from the Ministry of Interior), elaboration of a negotiating position in international investment agreements…).

This was the last capacity-building activity of OECD component of the MENA Transition Fund Project.

Next activity: Update of the assessment of Jordan’s ranking in the OECD FDI Regulatory Restrictiveness Index, based on the new Regulation on Non-Jordanian Investors, which was adopted following OECD policy advice.

Sub-component 1.3: A Cost-Benefit Analysis of the Incentives Regime (WB)


The local survey firm finished implementing the Investor Motivation Survey (IMS), which is the key activity that will feed into the cost benefit analysis of the benefits of the incentives being currently offered to investors in Jordan.

The survey included a research study on 302 foreign and domestic companies in Jordan. The research included investors, investment types, key investment motivation, investment incentives influence on investment decision and investors’ prospective plans and their desirable changes

Next steps of WB support:

Proceed with (CBA) activity; the output of which is a report assessing the direct costs and (selected) benefits of the incentives being currently offered to investors in Jordan. The report will include recommendations on how to improve the effectiveness of the incentives regime in order to maximize their potential to achieve targeted government objectives without wasting public resources.

Sub-component 1.4: Assessment of policy and legal barriers to the Renewable Energy/Energy Efficiency sector (OECD)


The OECD launched the “Clean Energy Investment Policy Review of Jordan” on 14 December in Amman. The event was organized jointly with EDAMA, the Association for Energy, Water & Environment (Jordan’s largest business association for energy and environment), with the support of USAID Jordan Competitiveness Program (JCP), under the patronage and presence of the Jordanian Minister of Energy and Mineral Resources, H.E. Dr Ibrahim Saif.

The event was attended by over 120 participants, representing all major public and private stakeholders of the renewable energy sector in Jordan. The Clean Energy Investment Policy Review assesses Jordan’s policy framework for investment in renewable power generation, building on the OECD Policy Guidance for Investment in Clean Energy Infrastructure. It was launched together with the EDAMA/USAID Clean Technology Sector Report of Jordan.

During his keynote remarks, the Minister of Energy and Mineral Resources strongly welcomed the Review and commended

198

http://www.oecd.org/countries/jordan/oecd-clean-energy-investment-policy-review-of-jordan-9789264266551-en.htm

co-operation between the OECD, USAID and EDAMA. As it gathered key players of the renewable energy sector, he also took opportunity of the event to announce the third procurement round for solar and wind energy, which had been delayed for over a year, largely due to grid capacity constraints.

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)


eInvestment Window

The E-Investment Portal of JIC was launched in December 2016. The portal is the first step towards realizing the opportunities available in Jordan. E-Investment portal is a solution that will serve as structured interface between investors, case managers and official representatives in the end to end investment case process orchestration. As such, it serves as a foundational step towards a full electronic Investment Window (One Stop Shop) model.

The eInvestment portal will realize numerous benefits, including but not limited to:

Structured services catalogue, with detailed information for all investment cases on offer which is easy to access and browse through.

Full Incentives Inventory. Simplified and improved user experience for potential and existing investors in need of interaction with JIC,

specifically as part of an investment case. Faster, more efficient investment case processing by Case Managers and Official Representatives. Electronic investment case files, with related documents available on demand to all authorized stakeholders. Full orchestration and control of case processing by Case Managers and authorized stakeholders. Investment case tracking on behalf of investors and Case Managers, with reporting including meaningful KPI's for

JIC management. Sound basis for future modernization and move towards a true, electronic One Stop Shop model.

Business Registration and OSS Reform

Key concepts that were adopted in this reform:

Point of Single Contact (PSC) and service provisioning. One Stop Shop (OSS) for administrative procedures. Procedure standardization and streamlining. Predictable administrative procedures for investment approval, company registration and licensing. Single regime on national level - For investment approval, registration, licensing and operation (incl. development

and free zones)

NEXT STEPS

The project will establish a working group led by ministry of public sector reforms to advance the implementation efforts.

The project is planning a client knowledge-sharing visit to the Macedonia OSS, which is considered number one in

199

EU. The project will continue to support JIC to enhance the services provided through the e-portal by adding a mobile

friendly application to track cases and services.

Sub-component 2.2: Strengthened services to investors (WB)


The following has been achieved and implemented: Investment Promotion (IP) Directorate structure and mandate. IP directorate Job descriptions The development of the promotional content on JIC’s new web portal. New JIC branding. Support & guidance on specific high potential events for JIC: WEF MENA 2015; China-Arab States Expo 2015;

Diaspora events 2015 – Mostly focused on lead generation. 2016 Events Training of IP Directorate staff and new staff from the Research and Studies Directorate Review and guidance on the development of promotional material. Guidance and provision of templates for inquiry handling, investor lead tracking, development of the investor

information system and update of the CRM. Training of Investment promotion heads – 3 since the beginning of JIC Guidance to JIC management on investment related priorities.

Next steps• Continue training of staff -a combination of workshops and on the job training.• Ensuring the correct implementation of investor tracking system and of an M&E system.• Support on-going development of the investor information system.• Assist in the creation of new and improved promotional content and materials.• Assistance and guidance on implementation of part of the investment promotion strategy – Targeted outreach.• On-going assistance in preparation of lead generation activities around JIC sponsored or attending events.• Preparation and implementation of an investor aftercare program

Sub-component 2.3: Building the EE capacities (WB)


The project organized a workshop in Brussels in September 2016 to improve the coordination between JSMO and EU institutions on updating eco-design and energy efficiency labeling. Building on the previous work and the visit to the EU in, the draft of the final report was submitted to JSMO. The report describes the results and the recommendations to support JSMO in the implementation of EU regulations on energy labelling and Ecodesign. It is focused on energy efficiency for eight products: refrigerators & freezers, washing machines, lighting, washer driers, tumble driers, dishwashers, circulator pumps and electric motors (see Task A), and an initial assessment of the benefits of implementing an Ecodesign regulation for water pumps (Task B).

The report provided detailed information that will help JSMO:

1. Assess differences between EU legislation and Jordanian legislation, and advise on the way ahead taking EU comments on early Jordanian drafts into account;

2. Advise on future developments to be expected in EU, which Jordan would need to follow to stay in line with EU, which is required for ACAA;

3. Assess the capacity of JSMO and other Jordanian government bodies to cope with the implementation of energy efficiency regulations efficiently and effectively and advise on improvements;

Next Steps of WB support:

Discuss with JSMO the way forward, given the findings of the EU Workshop and develop action plan for the implementation of recommendations by the EU

200

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.

OECD and WB teams delivered the planned activities as per the approved project proposal.

Next activities: Final project steering group in May 2017 A possible wrap-up conference could be organized back-to-back with the project Steering Group meeting.

Consultations with government authorities and the international community will be held to assess feasibility, objectives and scope and of this conference.

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

(x)


(y)

Total (US$)


OECD: 630,000WB: 1,385,000

OECD: 630,000WB: 1,385,000


OECD: 440,185 WB: 1,385,000

OECD: 440,185 WB: 1,385,000

Actual Amount Disbursed (c): OECD: 615,410 WB: 1,179,144

OECD: 615,410 WB: 1,179,144

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$) Year Jan-June Jul-Dec Total by Year End2017 WB: 111,109

OECD: 14,590 N/A WB: 111,109

OECD: 14,590


OECD: 42,588WB: 55,000

OECD: 3,412WB: 0

OECD: 46,000 WB: 55,000

201


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.


Unit of Measure

Baseline




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 Binary No No Yes One time Project ISAs Done. Policy

202

One: Submission of recommendations to ensure coherence of international investment obligations for endorsement

Reports and workshops

advice and capacity building

on IIAs and investment

dispute management.

Submission of key recommendations

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 servicesIntermediate 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

Done. Launch of the OECD Jordan

Clean Energy Investment Policy

Review

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 n/a 1 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 70 YearlyProject report

ISAs

203

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 reports prepared and published regularly on schedule.

Binary No n/a Yes Yes Yearly Project Report ISAs

Evaluation questionnaires for the OECD technical

workshops

204

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: Friederike Rother Email of ISA Project Leader: [email protected] Entity: Employment, Technical and Vocational Education and Training (E-TVET) Fund


Bashar Soboh (PMU Director) ([email protected] )

Maher al Jamal, Acting Director General E-TVET Fund ([email protected])

Total Amount Approved by the Transition Fund (US$): 4.75 million USD


Total Amount Disbursed (Direct and Indirect in US$): 1,936,778.14 (A)







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.



Rating for overall implementation progress: Moderately SatisfactoryBrief Summary of Project Implementation Status:

Since the last reporting period of July 2016, an implementation support mission for the project was held in October-2016. The mission found that the overall progress on 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) have been completed (and will be disseminated in March 2017 to a larger audience from various Ministries and stakeholders), the implementation of Job Readiness and Placement Program (JRRP) (Component 3 - representing more than 60 percent of the grant proceeds) has continued to face implementation and procurement delays. Within component 3, good progress was made in implementing and finalizing the employability skills training, resulting in 2,004 trained beneficiaries. However, the core element of the program - the jobs-voucher on the job training, has seen little progress since the last reporting period, mainly due to continued procurement issues. These delays, which


have been consistently flagged by the Bank over the last four missions and through correspondence with the Jordanian Government, led to the reduction of the duration of the JRRP Jobs-Voucher program, from 12 to 6 months to enable the completion of the program for the remaining project’s implementation period. While it is unlikely that this component will be able to reach the targeted 1,200 beneficiaries, mitigation measures including an improved MIS, the hiring of additional placement firms, an improved communications strategy, and improvements in the bonus/incentive mechanism for placement firms, have finally been implemented and are starting to show preliminary results. In order to ensure that the project is able to achieve its development objectives, and to prevent partial cancelation of the grant, the Government of Jordan is currently preparing a request for an extension of project’s closing date until December 2017. The Bank has reiterated the importance of the placement activity (particularly in terms of drawing on lessons learned for Jordan and the region and recommended to the Government (MOPIC & MOL)), and encouraged the PMU to focus all its efforts for the remainder of the project on implementing the Jobs Voucher component. While an Impact Evaluation for the Jobs Voucher had to be canceled due to the small sample size in this pilot, a qualitative and process evaluation of the project is currently being prepared from which lessons learned for the country and the Region will be drawn.

With less than six months remaining and less than twelve months (if the proposed closing date extension is approved), the project is still at risk of being downgraded to “moderately unsatisfactory” in achieving its development objectives. It is particularly urgent that the PMU implements a simplified payment mechanism (as consulted and discussed with the Bank). The Bank team will continue to closely follow up with the PMU 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) – Dissemination workshop ETVET/PMU 3/10/2017

Component 3: Job Readiness and Placement Program (JRPP) – issue new contract of Dale Carnegie (the employability skills training firm) to train additional 2000 beneficiaries.

ETVET/PMU 1/31/2017

Component 3: Finalization of agreed and improved payment mechanism ETVET/PMU 1/31/2017

Component 4: Complete hiring of auditor and replacement for an MIS/ placement officer.

ETVET/PMU 31/1/2017

C. Implementation Status of Components 22

Component 1: School to Work Program (STW)D.

To date, all five (5) planned activities have been completed: (i) the review of the career guidance manual and training provider’s capacity; (ii) the implementation of career guidance and counseling services; (iii) a needs assessment to inform the refurbishment needs of KAFD offices and Employment offices; (iv) the communications strategy for this component; and (v) the refurbishment of the offices has Satisfactory been completed. Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 0.73 million

22 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.

Sub-component 1.1: Career Counseling Services & Job Fairs

Status of Implementation: The International Youth Foundation (IYF) which is implementing this subcomponent has to date completed career counseling (primarily 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 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 career counseling sessions to 600 beneficiaries 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 was finalized and submitted to the PMU and the World Bank and will be presented to a larger audience during a workshop with representatives of MOPIC, MOL, the Ministry of Education, KAFD, and other stakeholders in early March 2017. Sub-component 1.2: Needs assessment report for targeted universities and employment offices

Status of Implementation: This subcomponent was completed and a mapping matrix and detailed specification of needs and budget was prepared. Based on this mapping, the refurbishment activity was completed.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 of the MOL employment directorates and KAFD offices including installation of IT-equipment, delivery of deployment of furniture and office supplies, has been completed and all contracts have been closed. Sub-component 1.4: Communication strategy and campaign for Irbid, Zarka, Maan, Mafraq, and Tafila.Status of Implementation: The communication strategy has been consolidated for all three components of the project and completed.

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. Status of Implementation: The customization of the Electronic Labor Exchange (ELE) Portal and job-matching engine has progressed well 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 was 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 strategy was consolidated for all three components of the project and all contracts have been completed and closed.Previous Rating: Moderately Satisfactory


Cost (US$): 2.87 million

Component 3: Job Readiness and Placement Program (JRPP) The implementation of this component has continued to experience major delays due to procurement bottlenecks. An MIS was developed and delivered. The registration of beneficiaries was completed in March 2016, and 3,363

youth (out of the 5,000 who registered) were found eligible, and 2004 beneficiaries completed the employability skills training (of which over 70% were female). However, to date, only 296 of the beneficiaries have been placed into the on-the-job training (voucher component) of the JRPP. Implementation of mitigation measures including the recruitment of the Chambers of Commerce and Industry and additional placement firms, an improved incentive/bonus system for placement firms, a Financial Advisor to assist with the payment of the social security contribution and the voucher processing, were substantially delayed and have only been recently resolved. The take up rate for the voucher program could therefore only be increased most recently. To this extent, and in order to ensure that the project is able to achieve its development objectives, the Government of Jordan will be requesting a six month extension of the project’s closing date (from June 30, 2017 to December 15-2017).

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. This assessment may also present a basis for the overall performance and planned qualitative evaluation of the program.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 Dale Carnegie in all three governorates and in December 2016, they successfully delivered training to 2,004 beneficiaries (of which, female participation was over 70%). In order for Dale Carnegie to assist with the placement and matching of beneficiaries into the OJT/the firms, their contract was extended in scope and duration and was completed and closed on December 31, 2016. It was furthermore agreed with the Government, the PMU, and the WB, to train an additional 2,000 beneficiaries by Dale Carnegie between February 2017 and June 2017. The new contract is currently with the Steering Tender Committee and is planned to be issued by the end of January 2017. The MIS and registration was finalized in May-2016 and is being improved and updated as the project progresses. Agreement to facilitate and improve the payment mechanism has been under discussion since October 2016 and is planned to be finalized by the end of January 2017.Sub-component 3.3: Communication Strategy

Status of Implementation: As explained above, the communication strategy was consolidated for all three components of the project, and has been finalized and completed.

E. Disbursements of Transition Fund Funds for Direct Project Activities23 Country-Execution (US$)

(x)

Direct Cost24 for ISA-Execution (US$)

(y)

Total (US$)


4,750,000 0 4,750,000

Amount Received from Trustee (b): 4,750,000 0 4,750,000Actual Amount Disbursed (c): 1,936,778.14 0 1,936,778.14

23 Funds for direct project activities should include approved allocations for both country- and ISA-executed activities.24 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)

http://www.menatransitionfund.org/content/apply-funding

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)25

Year Jan-June (A) Jul-Dec (A) Total by Year End (A)20132014 US$500,000 US$500,0002015 US$326,660.47 US$454,199.44 US$780,859.912016 US$271,000.83 US$384,917.40 US$655,918.23

201726 US$750,000 -- --


250,000 0 250,000

25 Enter actual disbursements for years past. 26 The estimated forecast is based on the current closing date, June 2017, while the Jordanian government is requesting an extension of the project to December 2017.

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 OJT-part of the Job Readiness and Placement Program has not started yet, hence the data to inform indicator measure result on this activity 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



Methodology

Responsibility


Jan 2015 – Dec.

2015 (A)

Jan. 2016-

Dec 2016 (A)

Jan 2017 –June

2017 (F)

Indicator One: Total Direct project beneficiaries:

(a) Total; and(b) Of which are female

Number

Percentage

0 10,432

72

31,429

60

32,000

60

Annual

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 and the job readiness and placement program beneficiaries

Indicator Two: Beneficiaries of career guidance and counseling

(a) Total(b) Of which are female

Number

Percentage

0

10,432

72

9,077 50

50

10, 000

50

Yearly

Administrative Data

PMU/MOL/KAFD

Beneficiaries = students in the 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

0 Online PMU/MOL/ Beneficiaries = those who accessed the

Electronic Labor Exchange


Number

Percentage

00

00

19,921

50

20,000

50

Yearly database KAFD revamped ELE

Indicator Four: Beneficiaries of Job Readiness and Placement Program


Number

Percentage

0 00

00

296

50

60027

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 28

(a) Total(b) Of which female

Number

Percentage

0 10,432

72

31,429

60

32,000

60

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

27 Forecast based on approval of proposed extension of project closing date.28 Total beneficiaries of Labor Market Programs are limited to the project and equal to total direct project beneficiaries.


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 trained on revamped ELE


PMU Staff in universities and 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 0 50 30 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. The overall Project financial management arrangements are found adequate to follow on the Project’s activities.

E








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:Previous Rating: Moderately Satisfactory

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 approved by the board. 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, Korea and turkey. Furthermore, JLGC team participated at an SME Development conference in Egypt and utilized the opportunity to visit the Egyptian Credit Guarantee Company as well.

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 conducted workshop during May 2016 and third one during September 2016 in collaboration with Korea Credit Guarantee Fund (KODIT), 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


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. Progress made under this component includes:

(i) Hiring the head of the consumer protection unit and CBJ is currently in the process of implementing the business plan to fully operationalize the unit;

(ii) Approving the setup, responsibilities and composition of the new consumer protection department by the CBJ governor. The department will be consist from three division as follows: (a) complaints handling division, (b) legislation and study division, and (c) on-site and off-site division. CBJ started working with the complaint handling division as a start point for the department, and the 3 divisions will be fully operated by the end of 2018.

Currently, CBJ is working on:(i) A Complaint handling system-proposal that could be used, finalizing the Consumer Protection

Strategy, (ii) CBJ is currently working on identifying the main components of this consumer protection strategy;

developing an action plan (including training plan) and how communicate with public about the new role of CBJ; and

(iii) Drafting regulations for banks and financial institutions about the internal processes that should exist to deal with consumer complains.

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 staff

1- Status 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. Currently, a consultant is working on developing a Complaint handling system-proposal that could be used.

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 literacySignificant progress has been done under this component as the CBJ has implemented its contract with injaz, which focuses on the incorporation of the financial literacy programs within school curricula across Jordan. Injaz in consultation with the Ministry of Education and the CBJ has incorporated financial education in the curriculum of 6614 schools. Overall, the curricula have been offered to 150,153 students, of which 49.8 percent are females. Administrative coordinators from respective ministries as well as teachers were trained alike, amounting to 66 coordinators and 2307 teachers, in addition to the 17 coordinators and 33 supervisors that are working in UNRWA schools. By the end of this year the program aims to graduate 338,874 pupils from grade seven, eight and eleven.

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 was advertised. 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$ Million)

(x)

Direct Cost for ISA-Execution (US$

Million)(y)

Total (US$)


3 3


3 3


1.2 1.2

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End

2014 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$) Total (Million US$)

0.17 0.03 0.2


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

BaselineFY 15

Cumulative Target Values Frequency Data Source/Methodology


Mar 2016 –Jan 2017

Target ActualNumber of microfinance loans after bringing the MFIs under the umbrella of CBJ Number 0 1000 8123329 Annual CBJ Report CBJ

Number of SME loans guaranteed by JLGC Number 3000 4,000 7851 Annual JLGC CBJ

Number of complaints resolved to the satisfaction of the consumer by the Consumer Protection Unit at CBJ within [30] days.

Number 0 500 53030 Annual CBJ Report CBJ

INTERMEDIATE RESULTSComponent I: Strengthening the Credit Guarantee Schemes

Value of guarantees issued MillionJD 49 60 78 Annual JLGC CBJ

Guaranteed loans by JLGC to women-owned SMEs

Percentage 5 9 9.5 Annual JLGC CBJ

Component II: Enhancing the Consumer Protection MechanismConsumer Protection Unit at CBJ fully staffed and operational Yes/No No Yes No Annual CBJ Report CBJ

Completion of the necessary training programs for the staff in the Consumer Protection Unit Number 0 4 No Annual CBJ Report CBJ

Number of public awareness campaigns and financial literacy programs Number 0 2 2 Annual CBJ Report CBJ

Component III: Supporting the development of the institutional framework for microfinance and non-bank financial institutions (NBFIs) supervisionMicrofinance Division at CBJ fully staffed and operational Yes/No No Yes yes Annual CBJ Report CBJ

29 The actual supervision is not start yet. The source of this figure is Tanmeyeh.30 This refers to the number of complaints received & resolved during 2015(269) & 2016 (120), reported by the Financial Operations follow-up division, as the Consumer Protection department is not operational yet.

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):

Ministry of Planning and International Cooperation for Component 1 and 2

(National Aid Fund is responsible for the technical implementation of Component 1)

Name of ISA Project Leader: Cristobal Ridao-Cano Email of ISA Project Leader: [email protected]

Recipient Entity: Ministry of Planning and International Cooperation (MOPIC)


Component 1: Ms. Basma Ishaqat, Secretary General, National Aid Fund ([email protected] ) Component 2: Hazar Badran, Head of WB and UN Agencies Division, ([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



Rating for overall implementation progress: Moderately Unsatisfactory


Since the last reporting period of July 2016, the National Unified Registry (NUR) component (Component 1) of the project has been restructured at the request of the Government. The amendment to the Grant Agreement was signed on October 8, 2016. Although there is no change in the Project’s Development Objective (PDO), the scope of Component 1, implementation arrangements, and the result framework (development and intermediate indicators) were revised. The restructured NUR component will facilitate automated data sharing to improve business processes for efficiency of eligibility verification and enrolment of NAF programs. Progress has been made on the actions related to Component 1 agreed during the last mission in October 16-27. Good progress has continued with the implementation of the integrated outreach program pilot (Component 2): Recruitment and training of supervisors and social workers have been completed and the Case Management System (CMS) has been developed and is being implemented. If progress continues, it is expected that the implementation of the project will be upgraded to Moderately Satisfactory after the next mission in February 26-March 3, 2017.

National Unified Registry (NUR- Component 1). The restructuring and amendment to the Grant Agreement was



signed on October 8, 2016. The PDO was not changed under this restructuring. However, the implementation arrangements were revised whereby MOPIC undertakes the fiduciary responsibilities of both Component 1 and Component 2 of the project and NAF has been designated as the primary technical implementing agency for Component 1. A Technical Working Group (TWG), composed of Participating Institutions (PI) representatives and chaired by NAF DG, was set-up and is already operational. The TWG will assume the technical implementation and supervision of the NUR component. Based on the scope of the restructured NUR, the Procurement Plan was also revised. A detailed implementation plan was prepared for the project with NAF and the PI. Progress has been made on the actions agreed during the October mission, including: (i) the revised Special Tendering Committee (STC) of the project is now operational; (ii) all required individual consultants (international MIS advisor; and local senior Coordinator) are now hired; and (iii) the selection of the national firm to work on ‘NUR System Design and Implementation Support’ has been completed and the contract will be signed by mid-January 2017.

Integrated Outreach Worker Program (IOWP - Component 2). The component is on track to achieving its development objective and has made good progress, particularly since May 2016. Recruitment and training of supervisors and social workers has been completed and the Case Management System (CMS) has been developed and is being implemented. In terms of implementation, to date, IYF has successfully contacted 19,229 households (the original target was to reach about 22,500 households), of which 5,000 households have been visited by social workers. Visited households are starting to be referred to partnering service providers. Going forward, the main challenges are to: (i) ensure partnering local service providers effectively take on the cases referred by the CMS; and (iii) start working in advance on a sustainability plan for the outreach program, including the transfer of the CMS to the Government and the scaling-up of the program—this requires a good evaluation of the program.



Expected Date of

DeliveryCOMPONENT 1

Component 1.1 NUR System Assessment and TOR for subcomponent 1.2 firms NAF/ MOPIC April 1, 2017

Subcomponent 1.2 (System Development and Implementation) firm contracted NAF/ MOPIC June 1, 2017

COMPONENT 2

Finalize coverage of the first 3 cycles of deployment (approximately 16,500 households)

IYF April 2017

Report to MOPIC results of referral services for the households included in the first cycle of deployment (including presentation to MOPIC SG)

IYF with the support of PMU/MOPIC to coordinate meetings

February 2017

Contracting of evaluation firm MOPIC (supported by the WB team on evaluation design and TOR development)

May 2017


Component 1: Building and Using National Unified Registry

Previous Rating: Moderately Unsatisfactory



Sub-component 1.1: [RESTRUCTURED] System Design and Implementation Support (estimated US$500,000).

This will include an assessment of the current NAF Management Information System (MIS) and the MISs of Participating Institutions (PIs), including data systems, infrastructure, and various technologies used.

Status of Implementation: The implemented firm has been indentified and the MIS assessment report, along with the TOR and tender for the firm to be hired for sub-component 1.2, is expected by April 1, 2017. The assessment will inform (i) the design of an institutional interoperability framework and technical specifications for NUR (including architectural design, institutional arrangements for managing implementation and system utilization, and business requirements for the participating institutions); and (ii) the identification of the hardware and software needs.

Sub-component 1.2: [RESTRUCTURED] System Development and Capacity Building (estimated US$ 1.4 million).

Status of Implementation: This sub-component will be informed by the MIS assessment report under subcomponent 1.1 and include the following activities: (i) hiring services of system development and integration, as per technical specifications of NUR; (ii) procurement and implementation of software and hardware needed to establish NUR platform; and (iii) implementing upgrades to the systems of NAF and Participating Institutions, and provision of Training (including programming of applications and utilities to connect NAF and PIs, interventions on information systems of PIs, system upgrades, systems installation, testing and training).

Subcomponent 1.3: [RESTRUCTURED] Technical and Management Support (estimated US$500,000)This new sub-component will finance the needed expertise and capacity building for NAF and PIs in managing the implementation process (e.g. hiring local specialists and international technical advisers), and ensuring the quality of deliverables from the consulting firms hired under subcomponents A and B. As part of that effort, an International MIS Advisor and a NAF Senior Project Coordinator have been hired. In addition, it has been agreed that a beneficiary survey would be conducted to further examine and assess various operational bottlenecks in NAF’s provision of benefits and services, with a view of strengthening the delivery system of NAF.

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: At the design stage, significant progress was achieved under this component with the completion of (i) mapping of the main entities and stakeholders to provide referral services for targeted poor households in the three selected Governorates (Irbid, Zarka and Maan); (ii) recruitment and training of supervisors and social workers; (iii) Contracting and functioning of Outreach Centers to facilitate the local implementation of the outreach program; and (iv) the development of the CMS. The CMS includes questionnaire and coding, referral system algorithms, uploading the lists of verified households, follow-up visits forms and follow-up phone calls questions and forms in addition to the assignment of outreach supervisors and social workers’ groups. The CMS includes three relevant management tools to be highlighted: (i) automatized online calculation of the amount to be paid to each social worker based on performed activities uploaded in the CMS, (ii) automatized calculation of the Key Performance Indicators (KPI’s) discussed and agreed during the last supervision mission, and (iii) online statistics based on the information of beneficiaries uploaded by social workers. All these management tools allow the program to do a close tracking of the tasks assigned to supervisors and social workers as well as reporting on the advancement of the program in the field.

Since previous reporting, IYF has faced some difficulties to reach the expected 22,400 targeted households participating in the pilot phase. To that end, different options were discussed to increase the number of eligible households and complete the expected coverage of the program. It was agreed that IYF will: (i) request a new batch of information from the ISTD; (ii) discuss with NAF the possibility of access to information of the waiting list of NAF and/or households currently affiliate to NAF; and (iii) contact local entities serving poor households in order to identify families that can be benefited from the outreach program. Moreover, the PMU/MOPIC will provide to IYF the list of NGO’s that are working with MOPIC in the selected Governorates to prioritize these NGO’s in the contacts that IYF

will use.

Sub-component 2.2: Outreach Deployment and Monitoring.

Status of Implementation: IYF has faced some difficulties in reaching the 22,400 targeted households participating in the pilot phase, as many poor households in the Income and Sales Tax Department (ISTD) database could not be contacted. However, in collaboration with outreach supervisors, governorate coordinators and local CBOs in the targeted localities, IYF was able to successfully contact 19,229 households so far. The implementation of the first cycle for selected households in the three Governorates started in October 10, 2016, and about 5,000 households have already been visited by social workers and registered in the CMS. The first cycle will be finished by first of March 2017. Cycle 2 will begin during the last week of January 2017.

IYF and the PMU have been conducting a number of events with 11 partnering service providers to build support and collect the necessary information for the referral system. MOPIC is already sending letters to the partnering service providers along with the lists of the referred households. The PMU is following up with the entities.

Going forward, there are two key aspects of the implementation of Component 2 that require Government attention: a. Coordination meetings at the local level with the partnering service providers. These meetings are necessary

to fine-tune the procedures to identify the referred households and define specific mechanisms to provide the services available. The earlier event organized by MOPIC with stakeholders at the central level was important for engaging the assigned focal points from the referral entities. However, more efforts are needed to be put in the specific arrangements at the local level for the effective functioning of the referral system. The CMS provides all the information required to have a fruitful dialogue and agreements with the local representatives of the entities.

b. Sustainability planning for the outreach program. IYF will document the experience from the design to the implementation and evaluation. However, it is crucial that MOPIC and NAF take some leadership to identify options for transferring the outreach program to the Government and for the scaling-up of the program. During the October 2016 mission, the Bank and the IYF team gave a presentation to the NAF team on the implementation of the Outreach pilot program. It was agreed that an evaluation of the overall IOWP performance and key lessons learned would be conducted. The evaluation is expected to begin following the completion of the second cycle of deployment in May 2017.


(x)


(y)

Total (US$)


9,500,000 9,500,000


9,500,000 9,500,000

Actual Amount Disbursed (c): 2,604,890 2,604,890

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


389,954 0 389,954

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”.



Frequency

Data Source/

MethodologyResponsibility for Data Collection


2014 2015 2016 2017

Indicator One: Direct project beneficiaries

Number 5329 (A) 112,400

(a) Number of beneficiaries of NAF certified using NUR platform

Number 0 12,006 (A)

90,000 Annual NAF (a)

Case Management Information System (CMIS) – households with questionnaire completed.

NAF (a) Total beneficiaries of NAF and outreach worker program

(b) Beneficiaries of outreach worker program

Number 0 5,000 (A) 22,000 MOPIC Households surveyed in the first home visit, using the questionnaire for case management.

(c) Of which are female Percentage 0 50 6.5(A) 50


Intermediate Result (Component One): National Unified Registry

Intermediate Result indicator One: Adopt technical specifications of NUR components

Yes/No No Yes(F) Yes Annual Assessment Report

NAF (in coordination with MOICT)

Technical specification are adopted based on assessment of business needs

Intermediate Result Indicator Two: New NUR system developed, tested and piloted.

Yes/No No Yes(F) Yes End of Project Systems acceptance certificates

NAF System developed according to technical specifications and formally accepted.

Intermediate Result Indicator Three: Number of Participating Institutions (PIs) connected to NUR system to

Number 0 0(A) 3 End of Project Project Progress Report

MOPIC MOPIC to produce regular Progress Reports to the

provide its data automatically to NAF Bank

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 0 120 445(A) 510 Quarterly NGO database (CMIS)

MOPIC in partnership with the lead NGO

Outreach workers = personnel to be recruited for household case management

Intermediate Result indicator Two: Supervisors trained to train the outreach workers

Number 0 50 51(A) 50 Annual NGO database (CMIS)


Supervisors = personnel to be recruited as part of the outreach program to train and supervise the outreach workers

Intermediate Result Indicator Three: Percentage of eligible households referred to services according to the needs assessment based on the questionnaire applied.

Percent of Households

0 0 37.6(A) 70 Annual NGO database (CMIS) – referral booklet registered.


Households eligible for referral to service according to the needs assessment and the mapping of available services.

Number of households who receive referral booklet / number of households eligible for referral services.

Intermediate Results Indicator Four:Percentage of cases using case management approach to assess the needs of selected households participating in the program.

Percent 0 0(A) 50 Annual Integrated Outreach Worker Program MIS


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


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 (signature contract date with International Trade Center, Regional Implementing Agency).

Project Closing Date:June 30, 2017.




Competitiveness and IntegrationChoose an item.Choose an item.


The Project Development Objective 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.



Rating for overall implementation progress: Moderately SatisfactoryBrief Summary of Project Implementation Status:

The VMP project was launched in Jordan on September 21, 2014. Since the project implementation is not progressing as expected, it is decided, for the first time, to downgrade both ratings from Satisfactory to Moderately Satisfactory.

This slow implementation progress is due to the following reasons:

A high turnover of project coordinator (in JEDCO): Since the beginning of the project, three project coordinators have been assigned (all recommended by the counterpart). Each of them worked for a limited period (approximately of 6 months).

A limited number of qualified export advisors. Out of the 14 EA’s, 10 managed to complete their tasks successfully under ITC coaching. A few EA’s did not demonstrate strong commitment and could not fulfill their assignments as per scheduled.

Lack of SMEs with export potential. Mobilizing SMEs with export potential has been more challenging in Jordan. Despite the many VMP awareness campaigns conducted within Jordanian Business associations, sector associations and chambers of commerce (this also include an info day for interested SMEs and an expression of interest published in the newspaper), the number of the interested SMEs was low. Moreover, some SMEs decided to leave the program because they did not want to share information with the EA’s while some SMEs did not value the technical assistance. Also, because a few SMEs were deemed not ready to export, the project had to exclude them.

To resolve these issues, ITC will implement the following action plan:

To recruit a new a national consultant who will be fully dedicated to this project . The national coordinator will be based in the Ministry, to support the work of the inter-Institutional Committee on E-Commerce. The future national coordinator will be fully held accountable for the sound implementation of the project, and responsible for any delay that might occur. The consultant will assist JEDCO in implementing the project activities. He/She will work under ITC direct supervision and guidance and overall monitoring of the Ministry. He or she will assist/work with JEDCO in the day-to-day work to ensure smooth implementation of the project;

ITC will intensify its EAs hiring/training process. ITC will re-advertise the expression of interest and will approach consultancy firms. It will organize new training sessions for a new group of consultants/EAs in February 2017. Only candidates with expertise in market development/marketing, and e-commerce will be targeted

ITC will intensify its outreach campaigns towards SMEs. In particular, the Project will i) re- advertise, ii) re-contact business associations, chambers, etc. and ask them to nominate from their side the best 20-40 companies with export potential, iii) prepared a letter of commitment/confidentially to be signed between Advisors, SMEs, and JEDCO, and iv) organize new info days.

In November 2016, ITC agreed with the assigned deputy in JEDCO to reinitiate the project activities in January 2017. A Project management meeting will take place on January 15, 2017, to further assess the current status of the project and to re-initiate the project activities.

Summary highlights:

A. VMP export advisors (EAs) selection and training

In H2 2014, training materials for EAs were developed and customized to match the e-commerce landscape in Jordan. In December 2014, the first training workshop for export advisors (EAs) was delivered, and the second workshop was conducted in April 2015 as a continuation to the first training; 20 EA’s attended the trainings, of which 14 have passed the training test and were appointed in the framework of the project;

The first appointments took place from April to October 2015, EA’s were requested to build on the knowledge they obtained in the first training, and to train the assigned SMEs on the importance of the VMPs, following ITC’s instructions and guidance. In addition to that, AEs assisted the assigned SMEs in capturing, enhancing and improving the product/SMEs profiles to be ready for sharing in the VMPs. The Second batch of appointments of EAs covered the period from December 2015-March 2016. During this period, EA’s built on the knowledge they gained in the second training and assisted their assigned SMEs in selecting the most appropriate VMPs for their products in a competitive manner. EAs were coached and guided by ITC during the delivery of the assignments. In November 2015, ITC delivered a coaching session for EAs aiming at clarifying all tasks and challenges EAs

faced with the SMEs during their assignments; In H2 2015- H12016, a guide was developed and finalized as an educational tool with a step-by-step

approach and country-specific content for assessing SMEs e-marketing opportunities (“saleability” study);

In H2 2016, 10 new EAs were mobilized, of which 8 additional EAs were selected, but not yet recruited.

B. SME’s selection and registration in VMPs

A call for expression of interest to mobilize SMEs was launched in August 2014 through publication in newspapers;

An info day was conducted in November 2015 to mobilize additional beneficiary SMEs and help them better understand the project objectives. More than 40 SMEs attend the info day;

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 by the EAs in 2015- H1 2016. No transactions to be reported so far as the project was put on hold by the counterpart no follow-up action took place in H2 2016;

In H2 2016, a partnership with the Exporters’ Association and Handicraft Association was established to inform association members and promote project activities to motivate them to apply.

C. Enabling environment

The Inter-Institutional Committee on E-Commerce was established in December 2015 and regular meetings were held to discuss issues related to E-commerce enabling environment.

D. Project Management

A questionnaire to measure the impact of the project on the SMEs was distributed by JEDCO to get SMEs feedback in May 2016;

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 in June 2016 to evaluate the current status and to reinitiate the project activities.

Planned Activities:



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 2/28/2017

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 3/31/2017

Promotion materials are reviewed and improved to better reach out SMEs (participation in the project is

Ministry of Trade

2/28/2017

positioned as a unique experience).

The first meeting of the steering committee in Jordan is successfully organized.

JEDCO and ITC 3/31/2017


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: Satisfactory Current Rating: Satisfactory Cost (US$):100,000Draft Terms of Reference (ToR) for the Inter-Institutional Committee on E-Commerce were developed and shared with the Ministry of Industry, Trade, and Supply (MITS). The ToR took into account conclusions from 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, and it held already a few meetings. A follow-up meeting on the results will take place with the Ministry in Q1 2017.

Component 2: Capacity Building Program VMP Export Advisors (EAs)


Cost (US$): 445,000

Sub-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.

Two training workshops on virtual market places were delivered: The first workshop was conducted on December 9-11, 2014, 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;

20 local IT and Business consultants attended the training, of which 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 VMPs solutions;

The second workshop was conducted on April 21-23, 2015, as a continuation to the first training. The advisors were trained mainly on how to complete cycles 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: i) 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; and ii) Assign SMEs to the consultants and explain the project objectives and expectations in terms of results.

November 25, 2015, 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). In 2015-H1 2016, Coaching was delivered by 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.

Recruitment of new EAs: In Q3 2016, 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 EAs 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.

Call for Expression of Interest was launched online at the inception of the project 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 in June 2015 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 on 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.

ITC recommended the advisors focus on a few platforms for a more effective use of available resources, mainly: etsy, eBay, tradekey and Alibaba. They also have been advised to assist the SMEs in their effort to open a paypal account, as registering on VMPs such as ebay requires a paypal account.

The second assignment is considered to be the main phase of the project, where all the “analysis” 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). The project was put on hold in H2 2016, and a follow up on results and the progress the consultants/advisors made will take place in Q1 2017

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).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: Satisfactory Current Rating: Satisfactory Cost (US$): 340,000Sub-component 3.1: Partnerships with Virtual Market Places.


In July 2016 ITC reached an agreement with eBay. Due to this partnership, beneficiary companies will benefit through to the free access to eBay premium accounts, increased visibility on this international platform. EBay will make available their so-called ‘anchor stores’ for enterprises supported by ITC, an enhanced vendor account which provides greater online visibility for these companies’ offerings and, consequently, a possibility to reach more clients. SMEs participating in the programme will gain access to eBay’s network of fulfilment centres, opening up for more cost-effective logistics operations. The companies will also benefit from the eBay’s cutting-edge e-commerce research, allowing them to leverage this knowledge and better position their offerings in selected target markets.

At the moment, the project team is negotiating the preferential premium membership rates for SMEs with other VMPs, such as Alibaba, Etsy, and Amazon.

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: This component will be implemented in Q2 2017.Sub-component 3.3: Certification.

Status of Implementation: This component will be implemented at a later stage of the project.



Cost (US$): 90,000

Sub-component 4.1: Project Management – This component will finance the PIUs at country level.

Status of Implementation: Satisfactory.

Three project coordinators have been assigned and recommended by the counterpart, each worked for a period of 6 months. Therefore, ITC is planning to recruit a new a national consultant who will be fully dedicated to this project. The national coordinator will be based in the Ministry, to support the work of the inter-Institutional Committee on E-Commerce, and to be independent of any delay that might occur by any other party. The consultant will be working under ITC and the Ministry supervision.

The national coordinator is expected to work 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).

A Project management meeting is planned to take place in January 2017 to evaluate the current status of the project and to design the upcoming activities.

Sub-component 4.2: Impact Evaluation Assessment

Status of Implementation: The component will be implemented at the end of the project.



(x)


(y)

Total (US$)


975,000 975,000


975,000 975,000

Actual Amount Disbursed (c): 659,180.7 659,180.7


Year Jan-June Jul-Dec Total by Year End2014 94,169 94,1692015 188,337 94,169 282,5062016 282,506 0 282,506

2017 315,820 315,820Total 786,023 188,338 975,000


Disbursed Available Total25,000 0 25,000


Indicators by Component

Unit Baseline Cumulative Target Values Frequency Data Source/Methodology


Collection

Description (Indicator Definition,

etc)2014A

2015A

2016A

2017F

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 40 100 Quarterly Statistics VMP

platforms/Feedback from surveys/M&E

Database

PIU Number of transactions conducted by SMEs

registeredValue 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 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 40 100 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



Collection

Description (Indicator

Definition, etc)2014A

2015A

2016A

2017F

Workshops conducted Number 0 0 2 3 5 Bi-annual Reporting PIU-ITC

PIU-ITC Output Delivered – Workshop report

Analytical Work delivered on key e-commerce topics

Number 0 1 2 2 4 Bi-annual Reporting PIU – ITC

PIU-ITC Output delivered – Workshop Report

COMPONENT II. EXPORT MARKETS ACCESSED THROUGH VMPS

Indicators by Component Unit Baseline Cumulative Target Values Frequency Data Source/ Responsibility for Data


Methodology Collection Definition, etc)2014A

2015A

2016A

2017F

Export Advisors Trained Number 0 20 14 14 24 Bi-annual Reporting PIU-ITC

PIU/ITC Captures number of EAs trained on VMPs

Export Advisors Certified Percent 0 0% 50% 50% 50% 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.



Collection


Definition, etc)2014

A2015

A2016

A2017

FTraining program for TSIs delivered (# activities)

Number 0 0 1 2 4 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



Collection



2015A

2016A

2017F

Collaborative partnerships with VMPs Number

0 0 4 4 7 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 0 0 1 Quarterly PIU and RIA PIU and EA # product

(newsletter) delivery by TSI main partner



Collection



2015A

2016A

2017F

Premium Accounts awarded – Certifications Number

0 0 0 0 50 Quarterly Project Implementation

ReportsM&E Database

and VMPs

ITC/PIU Trust label certificates

Assessment body created and operational Yes/No

No No No No Yes Quarterly Project Implementation

Reports

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: Maha Arabyat, [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 36,000 JEDCO



8/12/2015


1/1/2016


8/1/2018


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



In May 2016 the OECD and JEDCO organised a first consultation with all relevant institutions to be involved in the implementation of the project and to inform them about its objectives, activities and different components. The first technical seminars were planned to take place in July 2016, but a cabinet reshuffle taking place in June 2016, and changes in JEDCO’s (the beneficiary agency) management during the same month led to the postponement of the first activities.

A technical seminar was held in December 2016 to discuss how to use the main OECD tools to guide the implementation of the project: international good practice exchange in policy coordination and public private dialogue (component 1); statistical tools such as the OECD Entrepreneurship Indicators Programme and the OECD Scoreboard on Financing SMEs and Entrepreneurs (component 2); and the OECD Framework for the Evaluation of SME Policies and Programmes (component 3). The seminar had the participation of around 50 officials from relevant institutions for each component (Ministries of Industry, Finance, Education and Planning and International Co-operation; other public institutions such Department of Statistics, Jordan Investment Commission, Companies Control, Economic and Social Council, Customs Authority; private sector associations




and banks; business development services providers – Business Development Centre, incubators, Queen Rania Centre for Entrepreneurship, Innovation Centres Network, etc.).



1. Organisation of three technical seminars (one per component – see section C Implementation Status of Components)

OECD and JEDCO 3/30/2017

2. Organisation of three technical seminars (one per component – see section C Implementation Status of Components)

OECD and JEDCO 6/29/2017

3. Initial draft of technical guidelines for each component OECD 6/30/2017

C. Implementation Status of Components Component 1: Provide support and capacity building for JEDCO to lead the implementation and coordination of the overall SME Strategy

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 427,000Sub-component 1.1: Identification of coordination shortcomings and bottlenecks

Status of Implementation: The May 2016 consultation and the December 2016 technical seminar helped to raise awareness of the need to establish a coordination and public-private dialogue mechanism identified by the Strategy. By December 2016 the SME Strategy was not yet officially endorsed by the Jordanian Cabinet, but according to the meetings, its implementation has started. The meetings served to agree on the themes for the next technical seminars for this component in 2017: Strengthening public-private dialogue and the representation of SMEs in business associations (Q1 2017); SME policy coordination in transversal policy areas: improving business environments, access to finance and business development services (Q2 2017); and implementing a coordination and PPD platform in Jordan (Q3-Q4 2017). Sub-component 1.2: Elaboration of guidelines to improve coordination and consultations

Status of Implementation: The drafting of the guidelines has not yet started. The 2017 seminars will feed in the elaboration of a technical manual for this component, as identified in the Project’s plan.Sub-component 1.3: Application of guidelines to the overall SME Strategy

Status of Implementation: Not yet under implementation. By end 2017 the seminars and the draft manual will identify an implementation plan.

Component 2: Build capacity to collect, harmonise, analyse and publish business statistics online and in the form of reports

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 366,500Sub-component 2.1: Capacity building workshops to improve SME data collection, harmonisation and dissemination

Status of Implementation: The May 2016 consultation and the December 2016 technical seminar led to the definition of the concrete topics for three technical seminars in 2017: Assessing current statistical infrastructure and needs (Q1 2017); good international practice in the collection and dissemination of business statistics (Q2 2017); and international data harmonisation and Joining international statistical tools (Q3-Q4 2017).Sub-component 2.2: Production of a manual reflecting the results of the workshops

Status of Implementation: The drafting of the guidelines has not yet started. The 2017 seminars will feed in the elaboration of a technical manual for this component, as identified in the Project’s plan.Sub-component 2.3: Publication of SME and entrepreneurship data

Status of Implementation: Not yet under implementation. By end 2017 the seminars and the draft manual will identify an implementation plan. The SME statistics will be disseminated through the SME Observatory, part of the EIB-JEDCO project “SME Growth Programme”.

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: Satisfactory Current Rating: Satisfactory Cost (US$): 427 000Sub-component 3.1: Capacity building workshops on monitoring and evaluation techniques

Status of Implementation: The May 2016 consultation and the December 2016 technical seminar led to the definition of the concrete topics for three technical seminars in 2017: Initial assessment and M&E and how to set up an M&E framework (roles, responsibilities, what to monitor and evaluate and when) and how to use the findings (Q1 2017); quantitative and qualitative tools for monitoring policies (Q2 2017); and policy evaluation, including impact evaluation (Q3-Q4 2017).Sub-component 3.2: Production of M&E guidelines for the different thematic pillars of the SME Strategy

Status of Implementation: The drafting of the guidelines has not yet started. The 2017 seminars will feed in the elaboration of a technical manual for this component, as identified in the Project’s plan.Sub-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$)


1,220,500 USD 1,220,500 USD


62,872 USD 62,872 USD




81,743 USD O USD 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

2016A

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-utions

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


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 shortcomings and bottlenecks identified in current coordination and consultation mechanisms

Number of coordination and consultation short-comings and bottlenecks

No specific shortcomings and bottlenecks identified

Shortcoming s and bottlenecks identified

Semi-annually OECD-JEDCO Qualitative indicator. 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 and 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 aggregate, SME Strategy level

Number of recommenda

tions

No guidelines on

M&E

l One manual

Implementation of M&E 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: 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



The project made satisfactory progress towards the achievement of its objectives.

1) Second fact-finding mission on 19-22 July 2016 to Amman and Ajloun

With the support of Mr. Jean-Louis Rocheron, a senior public official from the French Region of Nouvelle-




Aquitaine who acted as peer expert, the OECD conducted a second peer review mission to Amman and Ajloun. In Amman, the OECD team conducted a series of interviews with the project’s Steering Committee (e.g. Ministry of Planning and International Cooperation, Ministry of Interior, Ministry of Municipal Affairs, Ministry of Public Sector Development, Ministry of Political and Parliamentary Affairs, Ministry of Finance), line ministries (e.g. health, social development, public works and housing) as well as with the members of the Network of Civil Society Organisations for Open Government at the Local Level in Jordan (hereafter “the CSO Network”)31. The Network brings together CSOs from all 12 governorates in Jordan.

The OECD team met with representatives from the five selected municipalities (e.g. Tafilah, Al Hassa, Al Salt, Deir Alla, Ajloun) and the three governorates (e.g. Tafilah, Balqa, Ajloun) that are part of the project and of the Steering Committee to discuss the challenges local governments are facing in translating the new legal framework for decentralization in practice. Separate meetings were held with the governor and more than 40 community members as well as with six local CSOs in the Governorate of Ajloun.

2) Questionnaire and CSO survey

Questionnaire for government entities : Through the Ministry of Planning and International Cooperation (MoPIC), a questionnaire was sent to the ministries, governorates and municipalities mentioned in (1) to complete the process of collecting data and information. Between July and October 2016, the OECD received valuable background reports, policy documents, analytical studies and statistics which fed into the draft assessment of the decentralisation reform in Jordan. The questionnaire covers three areas:

o Contextualisation : Structure of public administration and governance at central and sub-national level and rationale for strengthening local governance

o Decentralisation reform in the Jordanian public sector : Horizontal and vertical collaboration and coordination mechanisms for public service delivery

o Openness and citizen engagement : Opportunities for citizens to participate in the formulation and implementation of public policies and public service design and delivery and the expected impact of the decentralisation reform

CSO survey : In parallel, a survey was sent to all members of the CSO Network to analyse the existing mechanisms for civil society in Jordan to interact with public authorities at the central and sub-national (governorate, municipality) level and the expected impact of the new legal framework for decentralisation in this regard. The survey addresses the following aspects:

o The dimensions : The degree to which civil society is involved in 1) the formulation, implementation and monitoring of public policies (e.g. development plans); and/or 2) the delivery of public services (e.g. social services / charity);

o The mechanisms : The channels and tools used by civil society to access (government) information and interact with public officials;

o The expected impact of the decentralisation and municipality law and related laws : The perception of the two laws and how the ongoing legal and institutional evolution at the sub-national level (e.g. creation of newly elected councils at governorate and district level) may change the government-civil society relation;

31 The Network, which is open to all interested actors, functions 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. It includes the following entities: Identity Center, Cultural Forum; Madaba Cultural Forum; Al Balad Radio org; Rasheed Transparency International_Jo; Al Hayek Partners-Jordan Co.; Afaaq for Development, Nashmiyat Al Watan; Al Yaqatha Forum for Democratic Development; Women of Jerash Association; Ana Insaan for people with disabilities; Hayat Zwahra, Chechen People's Association; Amaan for Human Rights; Jabal Ajloun Charitable Organization; "Al Mobde'at Association for supporting students and the Local Community"; Sayedaat Halawa Charitable Organization; Umm Al Lulu Charitable Organization; "Al Mostaqbal organization for Eco conservation and Sustainable Development"; Nashmeyat Ajloun Organization; Jibal Arjaan Foundation; Shabaat Watan Foundation; Wadi Al Joud Foundation; Afaaq for Human Development (Tafeeleh), Mwakeb Al Rahmah for Social Development (Al Hasa), Al Shafa Organization for orphans' support (Al Hasa), Sayedat Jorf Al Daraweesh Association (Tafeeleh), Al Zahraa organization (Tafeeleh), Prince Hashem Association for people with disabilities (Al Hasa), Mousa Al Saket Development Center (Al Balqa), Shabab Al Wadi Association (Deir Alla), Al Salt Cultural Forum (Al Balqa), Abnaa Al Salt Coalition (Al Salt)

o Open Government : Jordan’s open government strategy and membership in the Open Government Partnership.

3) Technical workshop to complete the questionnaire on 8 September 2016

A technical workshop was organised with the members of the project's Steering Committee and the selected governorates and municipalities to explain the rationale of the questionnaire and support the process of completing it.

A separate meeting with the Ministry of Municipality Affairs and representatives from the Local Development Units of the five selected municipalities and the MoPIC also took place so to explain the information needed from the local government side.

4) Presentation of the preliminary analysis and draft recommendations on 24-25 November 2016 in Amman

Based on the evidence collected during the fact-finding missions and the answers received to the questionnaire, the OECD Secretariat presented the preliminary findings of the assessment on 21-22 November 2016 in Amman.

On 21 November 2016, a technical workshop with more than 30 members of the CSO Network was organised to present and discuss the results of the CSO survey. The participants were split up in five round tables to discuss questions related to the state of play for open government/citizen participation in Jordan (e.g. NGO law) and the expected impact of the decentralisation reform (e.g. future role of elected governorate/local councils).

On 22 November, the OECD Secretariat, supported by Mr. Jean-Louis Rocheron and Mr. Jonathan Morice, senior public officials from the Bretagne Region in France and Mr. Enrique Orduña, head of unit at the Spanish Transparency Council, from Spain, who acted as peers, presented the preliminary assessment and draft recommendations to the project's Steering Committee. The participants agreed that, to build a culture of open and participatory policy-making at local level, awareness raising activities were necessary. The implementation of the reform was perceived to be driven by central government. Key challenges discussed by the participants include the need to clarify the mandate of sub-national bodies (e.g. LDUs), ensure the financial independence of elected sub-national bodies and define the general budget process, review and amend relevant by-laws and ensure that local authorities (administrative, elected representatives) are qualified. The participants agreed that the process of collecting and processing data and information at sub-national level should be facilitated through a joint approach/database.

Next steps: Finalisation of the report based on the evidence collected in two fact-finding missions, the replies to the questionnaire and the presentation of the preliminary findings. Expected first quarterly 2017.

4) Donor coordination

Turning the new legal framework – the 2015 Decentralisation Law and Municipality Law – into practice is a national priority for the Government of Jordan and enjoys strong support by the King. Accordingly, various international and bilateral projects exist to support this process.

From the discussion of the project proposal to the recent presentation of the preliminary findings of the strategic assessment, the OECD has coordinated its activities and shared its findings with G7 Embassies in Amman, development agencies, international partners and organisations. These efforts include, among others (selection):

Regular meetings with USAID, for instance in the May, July and November 2016 missions to create synergies with the Jordan Cities Implementing Transparent, Innovative and Effective Solutions (CITIES) project;

Regular exchanges with the French Embassy and AFD, including in the May and September 2016 mission;

Meeting with the Head of the Spanish Association (AECID) in the July, September and November 2016 mission;

Meeting with the Cooperation Agency of the Association of Netherlands Municipalities in the May 2016 mission.

Moreover, the project successfully exploits synergies with the other ongoing MENA Transition Fund projects delivered by the OECD in Jordan, including:

“Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making”.

“Youth in Public Life: Towards open and inclusive youth engagement”

The objectives of the project are aligned with OECD support for the Government of Jordan in the formulation of the third National Action Plan for the Open Government Partnership.

At the same time, the OGP project funded by the UK supported the objectives of the TF project by mainstreaming policies and practices of participatory democracy across line ministries and in particular in the Ministry of Planning and International Cooperation, the Ministry of Public Sector Development, the Ministry of Political and Parliamentary Affairs that are simultaneously members of the OGP steering committee and of the decentralisation technical committee. It is to be highlighted that upon suggestion of the OECD, Jordan's OGP action plan includes a commitment that foresees the creation of an “Interactive observatory forum for citizens to monitor the implementation of the Government’s plans and progress” (commitment 7) that will be extremely useful also to foster citizen participation in the design and implementation of the decentralisation reform.

Next steps: The OECD will continue to identify and exploit synergies with ongoing initiatives on the decentralisation reform in Jordan in particular in 2017 where elections at governorate and local level should take place.



Mission to hold a series of bilateral meetings with the Ministry of Planning and International Cooperation, Ministry of Public Sector development, Ministry of Finance, Ministry of Political and Parliamentary Affairs, Ministry of Municipal Affairs and Ministry of Interior to discuss the final draft strategic assessment report.

OECD 1/26/2017

National conference to launch the OECD strategic assessment OECD 2/27/2017

Study visit to Spain OECD Early 2017

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


Sub-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: Following the two fact-finding missions and the answers received to both the questionnaire for government entities and the CSO survey, the OECD will finalise the strategic assessment in early 2017. A national conference will be organised on 27 February 2017 (tbc) to present and discuss the assessment and policy recommendations.

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: At the request of the Ministry of Political and Parliamentary Affairs, and in collaboration with Musharaka for Training and Development a Jordanian civil society organization, the OECD will support the organization of 12 national dialogue sessions which will be organised in the period between 26 December and 15 February in all 12 governorates across Jordan with an expected attendance of 80 key stakeholders from the local level per meeting. The National Dialogue with representatives from Musharaka for Training and Development as well as representatives from MoMA or MoPPA will introduce the new legal framework and provide the space for the participants to provide recommendations to parliamentarians and the legal committee inside the Parliament.

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 Ministerial meeting of the MENA-OECD Initiative on 4-5 October 2016 which highlighted the efforts undertaken by Jordan and other MENA countries in moving forward the decentralization agenda and fostering more open and inclusive policy-making at local level. Moreover, representatives from MoPIC, MoMA and the Municipality of Deir Alla participated in the OECD Open Government Forum from 6-9 December 2016 in Paris. On 9 December 2016, the stakeholders from Jordan participated in the “Technical seminar on Open Government at the local level in Jordan, Morocco and Tunisia” together with representatives from the Presidency of the Government and the local level in Tunisia (La Marsa, Sayada and Sfax), the Minister of Civil Service and Modernisation of the Administration in Morocco and a representative from the Region of Rabat, and peers from the Biscay Province (Spain) and Montreal (Canada). The meeting provided an opportunity to reflect on how Open Government reforms in countries in the MENA can be strengthened at the local level and how such efforts can support the objectives of ongoing decentralisation processes in areas such as citizen participation in policymaking and service delivery, transparency and access to information, open budget.

Component 2: Implementation of open government principles in selected municipalities

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 868,000Sub-component 2.1: Review of open government principles and practices at the local level

Status of Implementation: For the strategic assessment conducted by the OECD, the preliminary findings of which were presented on 23-24 November 2016 in Amman, the OECD conducted an analysis of the legal, institutional and policy framework for open government as well as practices at central level. Moreover, the questionnaire sent to government entities and CSOs was instrumental in collecting evidence of the expected impact of the new legal framework for open and participatory policy-making at the different levels of government.

The Review of implementation of open government principles and practices at the local level, which will start in the second half of 2017 (after the elections at governorate and local level – August 2017) , will complement this

analysis with an in-depth assessment of the existing laws, institutions, policies and practices of local institutions (governorates, municipalities). Based on good practices and OECD instruments, the Review will provide actionable policy recommendations to foster popular participation, transparency and accountability based in the evidence and data collected in the 3 governorates and 5 selected municipalities in the project. The Review is expected to be published in 2018.

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 will start once the strategic assessment report is launched early 2017.Sub-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: Not started yet. Expected in second quarterly 2017.

Sub-component 2.4: Participation of Jordanian sub-national stakeholders in the regional and international dialogue on open and inclusive government

Status of Implementation: During the OECD Open Government Forum (Paris, 6-9 December 2016), sub-national stakeholder from Jordan such as Mayor of Deir Alla and Al Hayat Association participated in the “Technical seminar on Open Government at the local level in Jordan, Morocco and Tunisia” together with representatives from the Presidency of the Government and the local level in Tunisia (La Marsa, Sayada and Sfax), the Minister of Civil Service and Modernisation of the Administration in Morocco and a representative from the Region of Rabat, and peers from the Biscay Province (Spain) and Montreal (Canada). The meeting provided an opportunity to reflect on how Open Government reforms in countries in the MENA can be strengthened at the local level and how such efforts can support the objectives of ongoing decentralisation processes in areas such as citizen participation in policymaking and service delivery, transparency and access to information, open budget.

More activities are expected after the elections at governorate and local level (August 2017).


(US$)

(x)


(y)

Total (US$)


1,827,150 USD 1,827,150 USD


116,582 USD 116,582 USD


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)*Year Jan-June Jul-Dec Total by Year End2017 300,000 300,000 600,0002018 300,000 300,000 600.0002019 133,471 133,471

* Please note that the actual disbursements by calendar year may vary from the disbursement projections.


Disbursed (US$) Available (US$) Total (US$)122,850 0 122,850

G. Results Framework and MonitoringProject 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

Cumulative Target Values**Frequenc

y

Data Source/

Methodology


Collection

Description (indicator definition etc.)Feb

2017F

Feb 2018

F

Feb 2019

F

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 society to implement OECD recommendations



Team (PIT)

Number of initiatives such as awareness raising

campaigns, trainings to 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** Indicate ‘A’ for ‘Actual’ and ‘F’ for ‘Forecast’

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 Industry and Trade

Jordan Investment Commission


Zeina Toukan, MoPIC, [email protected]

Mr. Yarub Qudah, 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 activities will also contribute 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 conducted consultation with relevant stakeholders through focus group meetings and discussions to identify priority areas for reforms as per its objectives. Identified areas will improve the Jordan Investment Climate and will contribute to the WBG Program-For-Results Operation “Economic Opportunities For Jordanians And Syrian Refugees”.


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. Overall, there is a slight delay due to the prioritization exercise but the project is expected to catch up with original plans by June 2017. The project is already procuring needed consultants and services and the accelerated activities are starting January 2017.

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


Background and update:The prioritization of reform areas has been done following discussions with WBG teams, extensive assessment conducted with 17 businesses associations, and discussions to support reforms for Jordan P4R relevant DLIs with key stakeholders. This activity produced an updated reform plan as described below.

Updated reform plan

a. Predictability of business regulations: Identify and implement measures that would improve the predictability and transparency of regulatory changes that impose mandatory compliance on businesses through new or amended regulations, such as laws, bylaws, instructions, decrees, etc.

i. Targeted reforms1. Predictability framework. The project will support the government to introduce an efficient

and predictable process for issuing laws and regulations governing the entrepreneurial activities, which would allow for private sector consultations and advance notice of entering these laws and regulations into force.

ii. T argeted laws and regulations:2. The Legislation and Opinion Bureau regulation No. (1) for the year 1993 (and its amendment

for the year 2012). This will introduce the notice and comment system. 3. PM decree to organize the process for issuing business regulations

b. Business Entry, Operations, and Licensing: The project will support the government efforts to simplify and streamline key formalities impacting businesses.

i. Targeted reforms1. Vocational Licensing. Step 1: eliminating the burden of vocational license for low risk business

activities by merging its requirements with business registration to allow for one process for business registration and licensing. Step2: exempt low risk business activities from vocational licenses.

2. Sector Licenses. Step 1: compile an exhaustive list of sector specific licenses (for Industry, Tourism, Agriculture, and Health) and identify possible overlap, duplication, or redundant

requirement. Step 2: eliminate sector specific licensing for low risk business activities. 3. Duration of licenses. Extend the validity of licenses to an optional 3 years for low risk business

activities.

ii. Targeted laws and regulations:1. Company’s law No. (22) of the year 1997 2. Amman Professions Licenses Law No. (20) of the year 19853. Professions Licenses Law No. (28) of the year 19994. Municipal Law No. (41) of the year 2015 5. Law of Craft and Industry No. (16) of 1953

c. Trade: The project will support the government efforts in unleashing more diversified export opportunities. It will produce a trade outcome analysis.

i. Target reforms:1. Export diversification analysis: The Ministry of Industry, Trade, and Supply requested the World

Bank to help them prioritize policy options for export diversification. Based on an initial mission of the World Bank will be conducting a Trade Outcome Analysis and Trade Diversification Diagnostics, which could inform the Government on potential policy options, particularly towards opportunities to access the European Union’s market.

ii. Target laws and regulations: Noneiii.

d. Competition: Jordan is one of the first countries in MENA to adopt a competition law yet this has not improved competition in Jordan due to many reasons. The project will assess the current legal framework governing competition in Jordan and will focus on two sectors to reform as a pilot.

i. Targeted reforms:1. Competition legal framework and implementation challenges: the project will review the

current laws and regulations to assess implementation challenges. The project will also assess the implementation agency/department ability to manage and enforce competition in Jordan

ii. Targeted laws and regulations:2. Competition Law No. (33) For the year (2004) and related regulations

e. Doing Business (DB) Reform: Identify and implement reforms that would improve the areas covered by the DB report including necessary laws and regulatory changes.

i. Targeted reforms1. The ten indicators measured by the DB report. The project will support the government to

reform areas covered by the DB report including laws and regulatory changes.

ii. Targeted laws and regulations: (in addition to the above laws)

1. Industry and Trade Law No. (18) for the year 19982. Insolvency Law3. Secured Transactions Law4. Corporate Governance Code of Shareholding Companies

Next Step:1. Conduct detailed stakeholder mapping2. Develop design for PPD framework

Sub-component 1.2: Enhancing the regulatory reform unit at the PM office.

Status of Implementation: This sub-component will be dropped because the government (with the support of USAID) has created a new PMU in the Ministry of Planning and International Cooperation.

Sub-component 1.3: Communication strategy and M&E framework

Status of Implementation: The project is in the process of hiring consultants to develop the communication and outreach strategy and the M&E framework.

Next steps:1. Finalize the communication and outreach strategy 2. Finalize the M&E framework to track relevant reforms.

Component 2: Comprehensive Assessment and implementation plan



Cost (US$): 1,500,000

Sub-component 2.1: legislation review and reform implementation plan

Status of Implementation: a. Predictability of business regulations: Identify and implement measures that would improve the

predictability and transparency of regulatory changes that impose mandatory compliance on businesses through new or amended regulations, such as laws, bylaws, instructions, decrees, etc.

i. Targeted reformsPredictability framework. The project will support the government to introduce an efficient and predictable process for issuing laws and regulations governing the entrepreneurial activities, which would allow for private sector consultations and advance notice of entering these laws and regulations into force.

ii. Status: The project is in the process of identifying consultants to conduct the following tasks:1. Analyze the business regulations lifecycle2. Conduct private sector consultations to propose a predictability framework

iii. Next steps:1. Finalize report on the business regulations lifecycle2. Finalize private sector consultations

b. Business Entry, Operations, and Licensing: The project will support the government’s efforts to simplify and streamline key formalities impacting businesses.

i. Targeted reforms1. Vocational Licensing. Step 1: eliminating the burden of vocational license for low risk business

activities by merging its requirements with business registration to allow for one process for business registration and licensing. Step2: exempt low risk business activities from vocational licenses.

2. Sector Licenses. Step 1: compile an exhaustive list of sector specific licenses (for Industry, Tourism, Agriculture, and Health) and identify possible overlap, duplication, or redundant requirement. Step 2: eliminate sector specific licensing for low risk business activities.

3. Duration of licenses. Extend the validity of licenses to an optional 3 years for low risk business activities.

ii. Status: The project is in the process of identifying consultants to conduct the following tasks:1. Develop an inventory of business formalities including pre-approvals, permits, and licenses

(municipal and sectoral)2. Conduct a comprehensive legal review targeting selected laws and relevant areas.3. Prepare draft implementation plan.

iii. Next steps:1. Complete the development of an inventory of business formalities including pre-approvals,

permits, and licenses (municipal and sectoral)2. Complete a comprehensive legal review targeting selected laws and relevant areas.3. Finalize the implementation plan.

c. Trade: The project will support the government’s efforts in unleashing more diversified export opportunities. It will produce a trade outcome analysis.

i. Target reforms:1. Export diversification analysis: The Ministry of Industry, Trade, and Supply requested the

World Bank to help them prioritize policy options for export diversification. Based on an initial mission of the World Bank will be conducting a Trade Outcome Analysis and Trade Diversification Diagnostics, which could inform the Government on potential policy options, particularly towards opportunities to access the European Union’s market.

ii. Status: The project has hired an expert to conduct this analysis. The expert conducting comprehensive meetings and discussion with relevant stakeholders.

iii. Next steps:1. Complete the export diversification analysis and share it with clients.

iv.d. Competition: Jordan is one of the first countries in MENA to adopt a competition law yet this has not

improved competition in Jordan due to many reasons. The project will assess the current legal framework governing competition in Jordan and will focus on two sectors to reform as a pilot.

i. Targeted reforms:1. Competition legal framework and implementation challenges: the project will review the

current laws and regulations to assess implementation challenges. The project will also assess the implementation agency/department ability to manage and enforce competition in Jordan

ii. Status: The project conducted discussions with the SG of the ministry of Industry and Trade and the head of the competition directorate to discuss scope of work.

iii. Next steps:1. Conduct the first assessment mission to Jordan in March 2017.

e. Doing Business (DB) Reform: Identify and implement reforms that would improve the areas covered by the DB report including necessary laws and regulatory changes.

i. Targeted reforms1. The ten indicators measured by the DB report. The project will support the government to

reform areas covered by the DB report including laws and regulatory changes.

ii. Status: a comprehensive reform plan was delivered to the government by the World Bank Indicator Reform team. A discussion with the government is planned in January 2017 to assess implementation needs.

iii. Next steps:1. Conduct discussions with MOPIC to assess DB reform implementation needs.

Sub-component 2.2: Capacity building assessment


Capacity building activities were pushed to the second half of the FY following the realignment of the scope of work of the project with the new P4R supporting Jordanians and Syrian refugees.

Next step;

The project will start Capacity building activities in March 2017

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 in July 2017

Sub-component 3.2: Reform sustainability

Status of Implementation: The ongoing initial analysis for the business regulation lifecycle with help in developing sustainable reforms. The predictability framework planned in component 2 will help ensuring that reforms implemented are sustained and improved after the closing of this project.

Next:1. Define the sustainability plan for this project


(x)


(y)

Total (US$)


3,000,000 3,000,000


3,000,000 3,000,000

Actual Amount Disbursed 440,387 440,387

(c):

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End20162017 700,000 660,000 1,360,0002018 600,000 600,000 1,200,0002019


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.


MeasureBaseline


Frequency

Data Source/

Methodology


Collection


definition etc.)Jan - Dec

2016A

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.

Binary No Yes One time ISA

Indicator Three: Endorsement of a new Public Private consultation partnership

Binary No NO Yes One time ISA

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 NO Yes Yes Yearly ISA


Intermediate Result (Phase One): Prioritization and PreparationIntermediate Result indicator One: Submission of recommendations for legal review targets.

Binary 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

Binary No No Yes One time Project Report

ISA

260

strategies.

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 2 1 4 timesProject report

ISA

Intermediate Result indicator Three: Number of participants in workshops on investment climate reforms.

Number No 35 50 100 YearlyProject report

ISA

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 0 30 30 Yearly Project Report ISA

Intermediate Result indicator Two: Monitoring and evaluation reports prepared and published regularly on schedule.

Binary No n/a Yes Yes Yearly Project Report ISA

MENA TF Indicators

Government bodies, institutions and local government units received support services

Number No 3 13 YearlyProject report

ISA

Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Number No 3 5 3 YearlyProject report

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

Number No 100 100 Yearly Project report

ISA

261

Climate reform

262

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] / Mr. Hasan Khawaj, [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 forthcoming National Youth Strategy 2017-25, 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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Satisfactory



Creation of a dedicated team to support the project in the Ministry of Youth

Following the parliamentary elections on 20 September 2016 and the approval of the new Government of Jordan on 28 September, the Higher Council for Youth was replaced by the Ministry of Youth. The upgrade reflects the priority the Government of Jordan and the King are giving to improving the situation for youth in Jordan and was welcomed by international observers and youth stakeholders as a step in the right direction. The OECD reacted quickly to the internal re-organisation of the Ministry and a dedicated team inside the Ministry, linked to the Minister’s Office, was set up to coordinate and act as focal point for the implementation of the project.

First coordination meeting on 15 September 2016 in Paris

The OECD organised a first coordination meeting on 15 September 2016 at the OECD headquarters in Paris, which brought together the focal points for the regional project from Jordan, Morocco and Tunisia. The OECD Deputy Chief of Staff, Mr. Juan Yermo opened the meeting. Together with the OECD project managers, the meeting set up the implementation mechanisms for the project (e.g. Project Working Group) and was successful in defining a timeline for the delivery of the project activities.

How to engage youth in policy-making: A priority issue in the 2016 MENA-OECD Ministerial Conference on 3-4 October 2016 in Tunis

In the framework of the 2016 MENA-OECD Ministerial Conference, held on 3-4 October 2016 in Tunis, the OECD presented the regional youth project to an audience comprising 500 participants, including 36 official delegations, 14 MENA countries and 22 OECD member countries at the level of ministers, state secretaries and ambassadors. In his opening speech, Mr. Abid Briki, Minister of Public Service and Governance in Tunisia, stressed the importance of addressing the needs of youth and providing opportunities for them to thrive in economic, social and political life.

In the MENA-OECD Governance Forum on 3 October 2016, the session " A voice for all parts of society in policy-making" provided the space for high-level representatives from Jordan, Morocco and Tunisia and representatives from the European Youth Forum and the youth-led association “Leaders of tomorrow” from Jordan to discuss effective mechanisms to engage youth in the policy-making process and provide access to economic opportunities and employment. The participants called upon the OECD to launch a Youth Day to highlight and share good practices of partnership approaches between government officials and youth to address the challenges faced by the younger generation.

In a bilateral meeting with the OECD Secretary General together with Mr. Satam Awad, Secretary General, Ministry of Youth in Jordan, Ms. Majdoline Cherni, Minister of Youth and Sports in Tunisia and Mr. Yacine Bellarab, Director of Cooperation, Communication and Legal Studies, Ministry of Youth and Sports in Morocco, all sides emphasized the urgency to give young people a greater voice in public life. The OECD Secretary General stressed the readiness of the OECD to support strengthening the public governance frameworks for an effective formulation and implementation of national youth policies and creating new mechanisms and channels for young people to engage in and beyond this process.

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The Ministerial Conference featured the session “Creating opportunities for youth” with the participation of the OECD Secretary-General and Nobel Prize awarded Tunisian National Dialogue Quartet, which underscored the importance of social dialogue as a precondition for the success of governance and competitiveness reforms.

OECD participation in Anna Lindh Foundation’s Mediterranean Forum 2016 on 24-25 October 2016 held in Valletta, Malta

With over 900 participants, the Forum is the largest civil society gathering for intercultural dialogue across the Mediterranean region. The OECD’s participation in this event helped to underline the importance of the specific issue of youth engagement in public life to counter forces fueling polarisation and extremism, the latter being the topic of the Forum. The OECD’s participation in this event also helped to push the youth engagement agenda forward among participants, in terms of stressing the importance of not only looking at capacity building activities for youth and opportunities for dialogue, but to also to think of the public governance of youth issues.

Preparatory mission on 16-18 November 2016 in Amman

In the run up of the official launch event, the OECD organised a preparatory mission to Amman from 16 to 18 November 2016. In a series of meetings with the Ministry of Youth, the Ministry of Planning and International Cooperation, UNDP, the European Delegation to Jordan, UNESCO, and youth associations, the OECD presented the objectives of the project and discussed possible areas of collaboration. The Embassies of Italy and Canada pledged to support the implementation of the project.

In the first advisory session of the project’s Working Group, 30 representatives from different line ministries (e.g. Ministry of Youth; Planning and International Cooperation; Interior; Education; Health; Labour; Political and Parliamentary Affairs; Higher Population Council), Royal NGOs and Foundations (e.g. King Abdullah II Foundation, King Hussein Foundation – Information and Research Centre, Jordan River Foundation, Al Hasan Youth Award, Jordanian Hashemite Fund for Human Development, National Council for Family Affairs), youth associations and universities met on 16 November 2016 at Al Hussein Youth City in Amman. The objectives of the project were presented and discussed among all stakeholders and a first dialogue session was hold to outline the thematic areas and challenges that should figure prominently in the OECD Review of Youth Policy and Engagement (working title)/Strategic Manual. The Ministry of Youth informed the OECD about the preparation of a new National Youth Strategy 2017-25 and expressed the importance of the OECD Review to define the roles and responsibilities of youth stakeholders in Jordan, as well as coordination and evaluation mechanisms to ensure its successful implementation.

Launching conference and first fact-finding mission on 5-8 December 2016 in Amman

With over 100 participants from different line ministries, royal NGOs and foundations, youth associations, universities as well as international and bilateral partners, including the Ambassador of Iraq to Jordan and representatives from the Embassies of Germany, UK, Japan, Spain and the EU delegation, the launching conference “Towards a new partnership between the government and youth in Jordan” was held on 5 December 2016 at Al Hussein Youth City in Amman. The launch event was attended by representatives from UNDP, UNICEF and the National Democratic Institute.

In the opening session, Mr. Rami Wreikat, Minister of Youth in Jordan, thanked the OECD for providing support to the implementation of the priority areas of the Ministry, in particular to open the door for youth to be part of political life, for instance as candidates to run for the local elections in August 2017, in line with King Abdullah II's call to strengthen active citizenship among the young generation. H.E. Giovanni Brauzzi, Ambassador of Italy to Jordan, called for a youth agenda around four guiding themes (non-discrimination, green, digital, knowledge-

265

based). In the plenary session and two break-out panels, the participants discussed ways to create a culture of engagement among government officials, the public administration and youth and effective ways to strengthen horizontal and vertical coordination to overcome a silo-based approach in the formulation of youth policies and the delivery of relevant services.

The Director of the Office for Youth in Slovenia, Mr. Peter Debeljak, the coordinator for e-participation tools in the German Federal Youth Council, Mr. Tim Schrock, and the Director General in charge of Governance in the Ministry of Youth in Tunisia, Ms. Maha Trabelsi, shared good practices for government and youth stakeholders to foster dialogue and establish partnerships between government and youth. In the first fact-finding mission from 6-8 December, the OECD started to collect evidence which will feed into the OECD Review of Youth Policy and Engagement.

Donor coordination

In the past months, the OECD secured the commitment of several OECD countries to support the project as peers and/or experts including France, Canada, Slovenia, Italy and Ireland. Communication is ongoing with other OECD interested countries as well. The OECD has also reached out to renown international NGOs (such as Youth Policy) and the European Youth Forum.

In Jordan, in meetings and discussion sessions with representatives from UNDP, UNESCO, UNICEF, UNFPA, the European Delegation, the OECD project was welcomed to clarify the roles and responsibilities and coordination mechanisms in the formulation and implementation of youth policies and the design and delivery of critical services such as education, health and mobility.



A questionnaire to collect evidence for the OECD Review of Youth Policy and Engagement (working title)/will be sent out to stakeholders

OECD in collaboration with the Project Working Group

Early 2017

Organisation of the second fact-finding mission to meet with representatives from parliament and different governorates and municipalities

OECD in collaboration with the Project Working Group

2/1/2017

C. Implementation Status of Components Component 1: Fostering an integrated approach to youth engagement in public life in Jordan

The project will contribute to the implementation of the National Youth Strategy 2017-2025 by delivering an assessment of the governance frameworks for the delivery of youth policy and services in each country. The Reviews will undertake an analysis of the legal, institutional and policy frameworks and actual practices with a view to the steering capacities at the disposal of the responsible entities for youth policy, the mechanisms for horizontal/cross-sectorial and vertical coordination, the evidence-base used to design programs and activities, as well as the overall monitoring and evaluation structures, amongst others.

Previous Rating: Not Applicable Current Rating: Satisfactory 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: A first advisory session was held with the project’s Working Group on 16 November

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2016 to collect evidence on the challenges faced by youth and different entities involved in youth programming and the delivery of activities and programs for young men and women with 30 entities from government, royal NGOs/foundation, youth associations and universities. All stakeholders participated in the launch event on 5 December 2016.Sub-component 1.2: Capacity building for an integrated approach to the engagement of young men and women in public life

Status of Implementation: The launching conference was held on 5 December 2016 at Al Hussein Youth City in Amman.Sub-component 1.3: Regional conference for MENA countries on the formulation and implementation of national youth strategies [Regional component]

Status of Implementation: The first regional conference is expected to take place before September 2017, tbc. It will focus on the progress achieved by all three countries in developing and implementing national youth strategies and on the key components that are required to ensure the success of these endeavors such as coordination, communication and monitoring and evaluation).

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: The date and exact topic of the activity will be agreed upon with the Project Working Group in due course, 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]

Status of Implementation: The second regional conference is expected to take place before September 2018. The exact topics the Conference will cover will be identified by the Project Working Group, tbc.

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 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.


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Sub-component 3.1: Capacity building to disseminate innovative tools, mechanisms and channels for youth engagementStatus of Implementation: The date and exact topic of the activity will be agreed upon with the Project Working Group in due course, 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: Initial research and compiling of good practices for the guide is underway based on communication with peers from OECD countries as well as the participation of peers from Belgium, France, Jordan, Germany, Slovenia and Tunisia in the launching conferences that were held in Jordan and Tunisia end of 2016).Sub-component 3.3: Regional dialogue on innovative forms of youth engagement in policy-making and public governance

Status of Implementation: The third regional conference is expected to take place before September 2019. The exact topics the conference will cover will be identified by the Project Working Group, tbc.


(US$)

(x)


(y)

Total (US$)


1,208,730 USD 1,208,730 USD


0 USD 0 USD


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

Year Jan-June Jul-Dec Total by Year End2017 200,000 200,000 400,0002018 200,000 200,000 400,0002019 200,000 170,675 370,675

* Please note that the actual disbursements by calendar year may vary from the disbursement projections.


81,270 USD 0 USD 81,270

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269

270

PDO: Support Jordan in building stronger mechanisms for youth engagement and mainstreaming their considerations in public life

PDO Indicators Unit of Measure Baseline

Cumulative Target Values Frequency Data Source/Methodology

Data Collection Responsibility Description

Aug 2017 Aug 2018 Aug 2019 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

Quantitative 0 0 2 4 4 Annually Progress Report


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

Intermediate Results Indicators

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 conferencesNr. of

conferences

0 1 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 progress made in formulating and implementing their

Strengthening Municipal FM Systems in Municipalities Affected by Refugee Crisis

A. Basic Project Information Activity Name: Strengthening municipal financial systems to sustain service delivery in municipalities affected by the refugee crisis.

Country Name:

Jordan


World Bank


Rama Krishnan Venkateswaran


[email protected];

Recipient Entity:



Ms Zeina Toukan; [email protected]


3,050,000




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 institutional and financial systems and practices of selected Jordanian municipalities to improve their service delivery capabilities. 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.




Brief Summary of Project Implementation Status: The Bank task team organized a mission in early October to meet with client counterparts and update them about the approval of the project and the next steps. As part of the preparatory activities for the project, it was agreed with client counterparts to undertake two assessments viz (1) Assessment of Municipal Public Financial Management (PFM) Systems and (2) Subnational Fiscal Framework Assessment. The procurement processes of these two assessments is currently underway and is expected to be completed soon. Both these assessments are expected to start in January 2017. The findings from these two assessments will be used for finalizing the detailed design of the various component activities. A third activity under the project (Supporting the Audit Bureau) is also expected to start within the first quarter of 2017. A full- fledged implementation support mission is being planned for March 2017.

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Expected Delivery

Date Finalization of the procurement for the preparatory assessments (Municipal PFM assessment and Subnational Fiscal Framework assessment)

Bank Task team 1/31/2017

Implementation Support Mission to finalize the remaining component activities

Bank Task Team 3/31/2017

Design of the sub project on improving the quality of municipal audits Audit Bureau and the Bank Task Team

3/31/2017

C. Implementation Status of Components 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

Status of Implementation: The procurement process of the Subnational PFM assessment and the Fiscal Framework Assessment is almost complete and the activities are expected to start in January 2017.

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

Status of Implementation: The preliminary discussions on the design of this component were held with the Audit Bureau. Follow up discussions are expected to be carried out in early 2017 and activities to be finalized during the first quarter of 2017

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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


Sub-component 3.2: Preparation of Financial Recovery Plans

Status of Implementation: Not stared


(US$)

(x)


(y)

Total (US$)


0 3,000,000 3,000,000


0 0 0

Actual Amount Disbursed (c): 0

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

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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

Intermediate Result indicator Two:

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

Intermediate Result Revenue Administration None 8 12 20 Annual Project Task Team Based on existing systems

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indicator One: Manual prepared Progress reports

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

visitsIntermediate Result indicator Two:

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

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Libya Projects

276

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$): 1,695,861 USD (direct)164,808 USD (Indirect)


Project Implementation Start Date:July 1, 2013

Project Closing Date:30 September 2018



Enhancing Economic GovernanceChoose an item.


Project 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 Satisfactory



The project has been restructured and all components have been reactivated. In December 2015, following Libya’s relapse into conflict, it was agreed that the project would focus on component 1, putting on hold the remaining components until a unity government was in place. Since the Government of National Accord was agreed in December 2015, the OECD team has closely monitored the situation, consulted with its counterpart –Libya Enterprise– and reached out extensively to other stakeholders working in Libya to take a decision on the project.

The OECD and Libya Enterprise concluded that, although the situation continues to be fluid, the conditions were met to restart activities. It was decided to restructure the project components adapting to the current context. The OECD has explored alternative ways to implement the project given the lack of security and political uncertainty in Libya. Overall, it is assumed that travel restrictions will stay in place for the short term. Therefore project activities will take place outside of Libya (e.g. Tunis, Istanbul or Paris). The project will focus on activities that can deliver tangible results in the short term and that contribute to SME development as a source of resilience and post-conflict reconstruction.

The MENA TF Steering Committee approved the request on September 20, 2016. As a result, the new project end date is September 30, 2018. Components 2-5 have been modified after the restructuring as follows:

277



- Component 2: Instead of developing an SME national strategy, the project will seek to develop a “Short-Term Action Plan to support SME policies” focusing on main priorities for the next two years to recover and strengthen the capacities and tools of institutions working to support SMEs and entrepreneurship.

- Component 3: The project will support Libya Enterprise in the development of an SME law proposal.

- Component 4: Assistance in the implementation will focus on the Short-Term Action Plan and building capacity within Libyan institutions.

- Component 5: Activities related to access to finance will focus on the assessment and assistance for the establishment of an SME funding mechanism.

The project results framework has been adjusted to reflect the proposed changes to project components 2-5. The Project Development Objective (PDO) indicators have been adapted for methodological purposes and to better reflect realistic objectives under the current conditions of fragility following. The present report includes the amended results and monitoring framework.

During July-December 2016, the project has achieved the following:

- Overall project – Phase II kick-off and Project Steering Committee meeting: The project was restructured after several consultations took place. First, several rounds of discussion took place with the main project counterpart, Libya Enterprise. Then, a meeting with a selected number of stakeholders took place on October 4 in Tunis, to discuss the proposed approach with the Central Bank, the Ministry of Labour and Capacity Building, and representatives from the private sector. Participants agreed with the new approach and supported the reactivation of the project. Finally, the Project Steering Committee was convened on December 8, 2016, in Tunis, to officially start Phase II of the project, and obtain their guidance for the restructured project components. Overall, the members of the Project Steering Committee welcomed the reactivation of the project, and provided guidance on some of the institutions and stakeholders that should be involved to mitigate risks in the implementation going forward.

- Component 1 – Official launch of the report “SMEs in Libya’s Reconstruction. Preparing for a post-conflict economy”.

- Component 2 – Kick-off workshop to develop a Short Term Action Plan.

- Component 3 – Initial assessment of the draft SME law.

- Component 4 – Libyan participation in SME policies training delivered by the OECD at the IMF Kuwait Center for Economics and Finance.

- Component 5 – The project team joined dialogue platform on access to finance launched by Expertise France.

Given the project restructuring and the achievements of the last reporting period, it is suggested to upgrade the overall project rating to “moderately satisfactory”, component 1 to “satisfactory”, and components 2 and 3 to “moderately satisfactory”.


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

278

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.



The report was launched during the MENA-OECD Ministerial Conference in Tunisia on October 3-4, 2016. The event gathered over 300 participants and 36 official delegations. The report launch counted with a high-level panel from Libya (Dr. Abdalnasr Abouzkeh, General Manager of Libya Enterprise), Tunisia (Mr. Sabri Bachtobji, Secretary of State of Ministry for Foreign Affairs), Egypt (Mr. Magdy Rady, Assistant Minister of Foreign Affairs), the UN (Ms. Noura Hamladji, UNDP Country Director in Libya and Mr. Abdallah Aldardari, Deputy Executive Secretary for Programmes, UNESCWA) and the OECD (Mr. Andreas Schaal, Director Global Relations and OECD G20 Sous Sherpa).

The report benefitted from maximum visibility, being 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. The report is available online at the OECD’s website. Between September and October, the publication’s webpage got 524 page views and 461 downloads on the OECD’s iLibrary, making it the most viewed publication of the Global Relations Secretariat. The report was officially published in English, and an Arabic translation has been made available. The diagnostic report will inform the preparation of the action plan under component 2.

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.


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.

279

http://www.oecd.org/publications/smes-in-libya-s-reconstruction-9789264264205-en.htm

https://www.oecd.org/mena/ministerial/


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.

Status of Implementation: Completed. 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.

Status of Implementation: Completed. The knowledge and policy forum was held in Istanbul in 2015, gathering over 40 experts from the public and private sector, OECD member countries, and MENA countries.

Component 2: Short-Term Action Plan to support SMEs: 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 Short-Term Action Plan with the aim of an eventual adoption by the Government of Libya.



Cost (US$): 500,000

Component 2 was significantly restructured in September 2016. Instead of developing an SME strategy, the project will seek to develop a “Short-Term Action Plan to support SME policies”. Developing an SME strategy implies having stable institutions, which is not the case currently in Libya. It is more suitable to focus on a short term action plan that brings together relevant Libyan and international stakeholders to agree on main priorities for the next two years to recover and strengthen the capacities and tools of institutions working to support SMEs and entrepreneurship in a context of fragility.

The Short-Term Action Plan will build on the findings of the Diagnostic Study. It will focus on supporting the institutions and programmes that are still in place and assessing ways to re-establish others that might have been suspended or creating new ones. It will seek to integrate SMEs in the framework of economic recovery with policies such as ensuring a percentage of public procurement for local companies and SMEs, if agreed by stakeholders.

The Short-Term Action Plan should be developed in 6-9 months through an inclusive process including a series of workshops organized by the OECD outside of Libya, together with a local consultation process led by Libya Enterprise inside the country. Given that the OECD will not be able to travel to Libya, the project will heavily rely on the local partner, Libya Enterprise, to conduct the local consultation process. The external workshops represent the key milestones of the process: kick-off, intermediary validation and final endorsement. Through the OECD’s convening capacity, these events will help guide the local consultation process and provide it with political endorsement from high level officials.

The local consultation process will consist of three rounds that will reach out to a broad set of stakeholders to

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produce a final action plan through a bottom-up process. Stakeholders consulted will include business membership organisations, entities that provide support services to SMEs and entrepreneurs, financial institutions, relevant government agencies and specific target groups such as women. The three rounds will focus respectively on:

1) agreeing to the overall goal and priority areas of the Short-Term Action Plan; 2) developing the specific activities and projects under each priority area, including measurable

indicators to track progress and identifying responsible agencies; and 3) validating the draft Short-Term Action Plan.

Status of Implementation: The process to develop the Short-Term Action Plan was officially kicked-off on December 8, 2016, in a workshop that gathered over 40 participants, including representatives from the Libyan public and private sectors (Libya Enterprise, House of Representatives, National Planning Council, Ministries of Finance, Economy, Foreign Affairs, Labour and Capacity Building, Local Governance, Libyan Program for Reintegration and Demobilisation, Businessmen Council, Tripoli Chamber of Commerce, Misrata Incubator), and from international organisations (UNDP, DFID, IACE, Expertise France, USAID/Chemonics).

During the workshop, participants discussed which should be the overarching goal of the Short-Term Action Plan. The inputs from the discussion will feed into a broader consultation process to reach an inclusive agreement. Preliminary discussion on the goals identified two key objectives: 1) to change the mind-set and promote an entrepreneurial culture among Libyans; 2) to contribute to stability. Improving the regulatory framework, access to markets, and Business Development Support services were considered to be among the top priority areas, followed by access to finance and access to markets. Additional areas such as clustering, industrial zones and FDI were suggested to be included in the list of priorities.

Component 3: Legal framework for enterprise creation and growth: This component will aim at the development of an SME law to facilitate the institutional and regulatory framework for policymaking on this topic.



Cost (US$): 275,000

Libya Enterprise is developing an SME law proposal. The project will review the draft and support Libya Enterprise in the legislative process. The political situation affects the capacity of the parliament to meet and enact new laws, but the work can move forward on the technical side and a proposal can be submitted to the relevant parliament committees to advance the legislative process.

Support on the SME law proposal will include the following sub-components: 3.1) supporting a consultation process and providing comparative good practices; 3.2) conducting a gap analysis; 3.3) coordinating an official peer review with other MENA/OECD countries; and 3.4) reviewing the law proposal and provision of comments.

During the kick-off workshop for Phase II, the project team and Libya Enterprise discussed the next steps to work on the SME law proposal. The draft was briefly presented at the workshop and shared afterwards with the participants, among which were representatives from the House of Representatives financial committee, the State Counsel, and the National Planning Council.

Activities under this component will build on what was done in the previous three years, but with a focus on the SME law for the next two years. New activities have started to be implemented, although this component will be fully developed once the Short-Term Action Plan is endorsed.

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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. The project will support Libya Enterprise is carrying out a consultation process on the SME law proposal. The OECD will rely on its practitioner guide for engaging stakeholders in the rule-making process

Status of Implementation: The 2015 forum addressed best practices examples on laws and regulations from several OECD and MENA countries. The draft law proposal was briefly presented during the December 2016 kick-off workshop, announcing that a consultation process will take place to refine the draft.

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: A senior legal consultant completed the analysis on laws and regulations pertaining to competition, investment regimes and related business regulations and laws. The findings were presented in the 2015 forum and incorporated into the SME diagnostic.

Sub-component 3.3: Official peer review with other MENA/OECD countries – The project will coordinate an official peer review from MENA/OECD countries following standard methodology.

Status of Implementation: This sub-component will begin in 2017.

Sub-component 3.4: Review of SME law proposal – An SME senior expert will review the law proposal and provide comments.

Status of Implementation: Libya Enterprise prepared a draft SME law proposal and submitted it to the OECD. The SME senior expert began preliminary discussions with Libya Enterprise’s legal department and provided a comparative analysis of nine countries including Algeria, China, Egypt, India, Japan, Mexico, Morocco, the Philippines and Vietnam. Detailed comments will be provided on the draft law proposal.

Component 4: Assistance in implementation: This component aims at assisting the implementation of the Short-Term Action Plan. In particular, the component will also help to institutionalise and align initiatives already underway or in planning.


Current Rating: Moderately unsatisfactory

Cost (US$): 575,000

In order to strengthen Libyan institutional capacity and integrate them in relevant networks, Libyan officials are regularly invited to regional trainings and meetings conducted by the OECD in the context of the MENA-OECD Investment Programme. Specific capacity building activities will be develop to accompany the implementation of the project. Future capacity building efforts will be closely aligned with the elements included in the Short-Term Action Plan. Activities might include trainings, participation in OECD MENA working groups and study tours.

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Sub-component 4.1: Monitoring the implementation of the Short-Term Action Plan - 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 government.

Sub-component 4.2: 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.

Status of Implementation: This sub-component will take place in parallel with the consultation process of component 3.

Sub-component 4.3: Supporting Libyan institutions in SME policy-making - This activity supports horizontal capacities of key Libyan institutions involved in SME policies and service provision. This sub-component includes the Libyan participation in regional trainings like the courses provided at the IMF training center, and regional meetings of SME policy-makers held under the MENA-OECD Competitiveness Programme.

Status of Implementation: During the last reporting period, three Libyan officials and private sector representatives (Ministry of Economy and the manager of a private incubator from Misrata) participated in the SME policies training delivered by the OECD at the IMF Center for Economics and Finance in Kuwait (November 2016).

Component 5: Access to finance for SMEs: Activities related to access to finance will focus on the assessment and assistance for the establishment of an SME funding mechanism.



Cost (US$): 300,000

The project will aim to support discussions to set up an SME funding mechanism. The OECD will coordinate with other organizations, particularly, it will leverage the program led by Expertise France (EU-funded) to “Support to Libya for Economic Integration, Diversification and Sustainable Development”. Expertise France is launching a dialogue platform on access to finance to set-up in the long term a credit guarantee mechanism and potentially a dedicated institution. Based on the discussions held through this platform, the OECD would provide technical assistance on specific components.

Status of Implementation: The OECD has joined the dialogue platform launched by Expertise France, participating in the first workshop that took place in Tunis on October 2016. An initial roadmap was developed focusing on the creation of an SME credit guarantee scheme.

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D. Commitments and Disbursements of Funds for Direct Project Activities


(x)


(y)

Total (US$)


2,451,192 USD 2,451,192 USD


1,504,763 USD 1,504,763 USD


1,695,861 USD 1,695,861 USD


Year Jan-June Jul-Dec Total by Year End2016 Project on hold Project on hold2017 292,903 USD 210,134 USD 503,037 USD2018 167,967 USD 84,327 USD 252,294 USD


Disbursed (US$) Available (US$) Total (US$)164,808 USD 0 USD 164,808 USD

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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 Measure

Baseline




Collection


Jul 2013 – Jun 2014

A

Jul 2014 – Jun 2015

A

Jul 2015 – Jun 2016

A

Jul 2016 – Jun 2017

F

Jul 2017–

Sep 2018

F

Indicator One: Improved SME and entrepreneurship policies and better coordination

QualitativeLimited

coordination

N/A N/A N/A N/A

Improved

effectiveness

AnnuallyProgress

reportOECD

Qualitative assessment of the impact of Project activities on government and international institutions coordination

Indicator Two: Documents produced and endorsed

Quantitative 0 0 0 0 2 1+3 AnnuallyProgress

reportOECD

Number of strategies, action plans, studies and reports produced and endorsed by the Libyan government

Indicator Three: Number of consultation meetings and workshops

Quantitative 0 2 2+1 3+1 4+6 10+4 AnnuallyProgress

reportOECD

Indicator Four: Improved capacity of Libyan institutions

QualitativeLimited capacity

N/A N/A N/A N/A

Improved

capacity

AnnuallyProgress

reportOECD

Qualitative assessment of the impact of Project activities on government capacity

Indicator Five: Staff trained Quantitative 0 3333+

537+

239+

342+2 Annually

Progress report

OECDPublic sector staff received training in SME development topics

Indicator Six: Improved dialogue between institutions and with international organisations (number of people participated)

Quantitative 0 3232+35

67+41

108+44

152+37

AnnuallyProgress

reportOECD

Government officials, private sector representatives, and international organisations and experts participated in workshops


Intermediate Result (Component One): Deepened common understanding among stakeholders as to the priorities for SME development in Libya.

ResultsUnit of

measureBaseline YR1 YR2 YR3 YR4 YR5 Frequency Data Source Responsibility Description

1.1 Publication of Diagnostic Study Number 0 0 0 0 1 0 OnceDiagnostic

StudyMENA-OECD Report published.

1.2 Number of consultation workshops to validate and present the Diagnostic Study

Number 0 2 1 1 2 0 AnnualProgress

reportMENA-OECD

Launch event (Oct 2016) and PSC meeting (Dec. 2016).

Intermediate Result (Component Two): Development and acceptance of the Short-Term Action Plan to support SMEs.

ResultsUnit 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.

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2.1 Production of Short-Term Action Plan Number 0 0 0 0 0 1 OnceShort-Term Action Plan

MENA-OECD N/A

2.2 Consultation and validation workshops Number 0 0 0 0 3 0 AnnualProgress

reportMENA-OECD

Process to develop and validate Short Term Action Plan. Kick off meeting (Dec. 2016).

Intermediate Result (Component Three): Adoption of complementary legal acts.

ResultsUnit of


3.1 Workshops addressing legal framework

Number 0 0 0 0* 1 1 AnnualProgress

reportMENA-OECD

*Istanbul Forum (July 2015) covered part of legal review.

3.2 Legal review of SME law Number 0 0 0 0 1 1 AnnualProgress

reportMENA-OECD Review of SME law

Intermediate Result (Component Four): Strengthened institutions and increased capacity.

ResultsUnit of


4.1 Number of people participating in project specific workshops (linked to 1.2, 2.2, 3.1 and 5.1)


reportMENA-OECD

Experts meeting, Tunis, 2013; PSC meeting, Tripoli, 2013; Consultative meeting Paris, September 2014; Knowledge and Policy Forum, Istanbul, July 2015

4.2 Number of Libyan officials participating in regional policy dialogue meetings


reportMENA-OECD

Participation in yearly regional meetings of MENA-OECD Programme

4.3 Number of staff trained Number 0 31 5 2 3 2 AnnualProgress

reportMENA-OECD

Participation in project specific trainings and Kuwait IMF Center training courses

Intermediate Result (Component Five): Considerable improvement in access to finance for Libyan SMEs.

ResultsUnit of


5.1 Participation in dialogue platform workshops


reportMENA-OECD

SME financing dialogue platform workshops

5.2 Production of report assessing SME funding mechanisms

Number 0 0 0 0 0 1 Once Assessment MENA-OECDScope to be agreed with counterparts through dialogue platform


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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 (120,000 USD)Direct (1,375,000)


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 in Libya 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 other issues pertaining to the selection of the consultancy firm, which had 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 requested and granted by the MENA TF steering committee to take account of the delayed start up period.

Since the last progress report, in June 2016, the Training Needs Assessment (TNA) was conducted, reporting findings and recommendations to the AfDB in September 2016, with a final approved report in October 2016. During this reporting period, ASI has utilized the TNA findings to prepare the application forms, identify the potential areas of focus of the program and develop the different modules of the Leadership program “Tamayoz”. The Learning program compromises a full tutoring package combining online learning, and face to face trainings, including; a mandatory Foundational Leadership course (6 weeks - online), Sector Specific Leadership courses (4 weeks- online), and an intensive program (face to face). ASI has submitted its latest report to AfDB in November 2016, which details the modules and topics that will be included in all three

287




stages of the training program, the connections between the e-learning and residential phases of the program, and how participants will engage with the social learning platform. In December 2016, the Tamayoz e-learning platform was presented to the AfDB, and is now ready for launch in Libya. This platform has been specifically designed for the Libyan operating environment, enabling project participants to learn and interact in a low bandwidth environment, to cater for frequent power outages and internet cuts.

A marketing plan was prepared for the program to arrange the dissemination aspects, roles and responsibilities of the different stakeholders and the communication and reaching out policy to make sure that all potential participants are well-informed and fully acquainted with the program. This has included preparing and printing brochures, leaflets and publications for distribution in Libya, The Tamayoz program’s application process was launched in Libya on December 6th 2016, and by the 20th of December, the program received over 1,500 applicants from across the country. Of the eligible applications received (according to the selection criteria agreed by the AfDB and Government of Libya counterparts), over 60% of applications came from the public sector, 20% from Civil Society, and 18% from the Private Sector. A total of 18% of Tamayoz applicants are female, with applications received from all 3 target sectors. In addition, terms of reference have been prepared for a Libyan expert to develop a shortlist of Libyan training institutions suitable for partnership in the implementation of Tamayoz activities, and for the handover of the e-learning platform for future phases of the program. It is to be noted that discussions are currently ongoing with the Libyan authorities on how best to structure the residential programme of Tamayoz, both in terms of location and expected participants. This could have an impact on the end date of the programme however, preliminary feedback from the authorities indicates that this phase of Tamayoz is critical to get right and put it on a sustainable footing for the future.

The below action plan provides provisional dates pertaining to the delivery of some activities, however the dates indicated might slightly change during the course of the implementation of the project, they are contingent to the counterparts’ preferences in terms of the training phases relating to the face to face trainings. As a result, the project may encounter some delays, which will not impede its final implementation.


Shortlist of applicants fulfilling the agreed selection criteria for the Libya Leading the Way project

ASI, subject to instruction from the AfDB

1 February 2017

Notification to course applicants on their application to the Libya Leading the Way Leadership course


15 February 2017

Launch of the Libya Leading the Way e-learning Leadership course


1 March 2017

Selection of Libyan partner institutions ASI, subject to instruction from the AfDB

1 April 2017

Commencement of the residential and face-to-face training/s


15 July 2017

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 consortium

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Previous Rating: Satisfactory 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: Moderately Satisfactory


Cost (US$): $1,375,000

Sub-component 2.1: Leadership Capacity building requirements assessed


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 were collated, analyzed, and shared with AfDB counterparts. The Training Needs Assessment identified that an autocratic, hierarchical, administrative management style remains the prevalent management style in Libya. Respondents from each sector identified broadly similar leadership needs, including strategic thinking, change management, organisational planning, and inter-sectoral cooperation. For individual sectors, more advanced leadership skills were also identified, and these will be addressed in specific leadership trainings. A final version of Report 2: Training Needs Assessment was submitted and approved in October 2016.

Sub-component 2.2: Training program architecture and content determined

Status of Implementation: In progress.

An inclusive leadership training program has been designed to be implemented over three interrelated stages. It begins with a mandatory Foundational Leadership course (stage 1) followed by a series of mandatory and elective courses that are Sector Specific (stage 2), reinforced by residential training (stage 3). This approach, with particular details of the program content, and course structure is outlined in Report 3: Learning Map, submitted to the AfDB in November 2016, and approved in December 2016. The Tamayoz e-learning platform was presented to the AfDB on Monday 19th of December 2016, and with platform details documented in a separate report to the AfDB. The program components and modules have been discussed with the Libyan counterparts, they have had a chance to provide their feedback on the layout of the program and currently the team is working on modifying some aspects of the training to better suit the Libyan needs.

Component 3: Executive training program for senior executive staffPrevious Rating: Moderately Satisfactory


Cost (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 was already prepared 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

289

included in the selection criteria.

The application process for the Tamayoz program is currently open, and female applications are running at approximately 18% of the total applications, as of December 20th. The e-learning training will commence in 2017, pending approval from the Government of Libya counterparts. The Bank and ASI are committed to securing female participation in the Tamayoz program, and will make all necessary arrangements to secure as high a level of female participation in all phases of the residential trainings as possible.

Component 4: Identification, capacity building to, and handover of leading the way e-learning courses and alumni network to a Libyan institutionPrevious Rating: Moderately Satisfactory


Cost (US$): 235,000

Sub-component 4.1: Libyan partner institution selected to host the leading the way course and alumni network


Research conducted during the training needs assessment identified key criteria to assist in the shortlisting of prospective Libyan partner institutions. These requirements have been drafted into a Terms of Reference for a Libyan expert to develop a prospective shortlist of partner institutions through conducting follow up interviews based on the training needs assessment findings, and site visits within Libya. Once selected this Libyan institution will also oversee the longer term implementation of Tamayoz beyond the current first pilot phase and assist in some components of the current face-to-face training phases. The majority of this work will take place in 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 1,375,000 1,375,0002017 700,000 1,100,000 1,800,0002018 85,000 0 85,000


120,000 80,000 240,000

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MeasureBaseline

Forecasts of Cumulative Target

Values**Frequenc

yData Source/Methodology



Jan 2016 –

Dec 2016

A

Jan 2017 – Dec 2017

F

Indicator 1: Public sector staff trained in various aspects of leadership

Number of trainees

0 0 126 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 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 0 4 One-off Reports Project implementation unit

Course outlines, curricula and training materials produced – evidenced

through reports and material on the e-learning platform

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Intermediate Result (Component Three): Executive training program for senior executive staff

Intermediate Result indicator 3.1: Percentage of female participants

% 0 0 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

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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.


Moderately Unsatisfactory


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 finalized in discussion with the GECOL officials. The procurement process is finalized and contracts issued to the selected consulting firms to initiate the activities under the TA program. The first mission for the Bank project team accompanied by the selected consultants is scheduled for February 12-16, 2017 in Tunis to conduct an inception workshop with the client. Four other missions are also planned through the project closing date (December 31, 2017) with the tentative dates of: i) April 30 – May, ii) July 2 – 6, iii)

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September 3 – 7, and iv) October 29 – November 2, for various activities, such as presentations, reviews, workshops and consultations around the project milestones.

The team is in touch with USAID team to explore ways of collaboration as a follow up to the findings of their recent analysis of the current electricity shortage in Libya including proposed short-, medium-, and long-term interventions in addressing the electricity crisis. A coordination of donors’ efforts in the sector is critical and the team will ensure to keep communication and sharing information with all relevant donors involved in the power sector in Libya about the progress of the project and future activities in order to maximize synergies with work being conducted.

The team will continue to engage with GECOL officials, until the political situation improves and opportunities to engage with more senior levels of the government are visible. The outputs from the TA would provide the technical and analytical basis for improving sector performance, investments as well as policy dialogue once the political and security situation improves.



Expected Date of

DeliverySubmit respective assignments’ reports (e.g., Inception, Assessment, Gap Analysis, and Restructuring reports) to client for review and feedback/discussion in addition to conducting training workshops for client staff

World Bank 6/30/2017


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

294

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 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 finalized in discussion with GECOL. The procurement of consultants was finalized in January 2017.

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.

295


Component 3: Institutional Development and Performance Improvement of GECOL

Previous Rating: Unsatisfactory


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

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

296

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.


Component 4: Strategic Plan for Renewable Energy Development

Previous Rating: Unsatisfactory Current Rating: Moderately Unsatisfactory

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

297

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 finalized in discussion with GECOL. The procurement of consultants was finalized in January 2017.


(US$)

(x)


(y)

Total (US$)


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

298


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 –Dec 2016

A

Oct 2015 – Sept 2016

Revised:Jan 2017 –Jun 2017

F

Oct 2016 – Dec 2017

Revised:Jul 2017 –Dec 2017

FOptions 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 - Consultants 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

299


- 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



300

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).





12/5/2013


1/1/2014


1/31/2021


Primary Pillar: Investing in Sustainable GrowthSecondary Pillar(s): Enhancing Economic Governance

Inclusive Development and Job CreationCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject 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.

Rating for progress towards achievement of objective: Moderately Unsatisfactory


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. Against this background, the overall implementation of the project is Moderately Unsatisfactory, with one sub-component closed, two components about to be closed, and one ongoing. The originally designed Results Framework does not sufficiently acknowledge the achievements of the Project, especially given the political context in which it has been implemented.

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 supervision) and replace it with a full diagnostic of the banking sector, particularly (but not only) of state-owned banks and

301

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 has required a closing date extension and involved a change in the results framework, which was approved by the Steering Committee in August 2016.

C. Implementation Status of Components Component 1: Financial infrastructure developmentPrevious Rating: Moderately Satisfactory



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) was delivered in December 2016. This sub-component is being closed. 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 managed to meet again with the CBL in November 2016 and submitted a revised final draft in December 2016. The team is now awaiting comments from the CBL, which has requested assistance with the implementation of the Strategy.Sub-component 1.3: Diagnostic of the banking sector Status of Implementation: At the request of both the CBL and the GNA, this activity has replaced the originally approved “Capacity building to the CBL on banking supervision”. Terms of reference for the sub-component have been developed and shared with the CBL for feedback.

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 growth

302

Status 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.


(x)


(y)

Total (US$)


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 114,892 116,188 231,081

303

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

2017 500,000 250,000 750,000


134,379 3,021 137,400

304


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.


MeasureBaseline


FrequencyData Source/ Methodology


Collection


definition etc.)Jan – Dec 2014

A

Jan – Dec 2015

A

Jan – Dec 2016

A

Jan 2017 – Jun 2021

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 a diagnostic of the banking sector.

Local experts recruited (F);Report developed and adopted (F)

Annually Survey and secondary data.

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

Endorsement of the advisory committee reported in the committee’s minutes of

305

the committee (F)

meeting


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

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 4 - - Annually World Bank Conference completion report

CBL supervision unit staff members trained on key banking supervisory and reporting tasks

Percentage of supervision staff trained

0 20 50 100 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 participation (%)

0

0%

10

20%

50

20%

70

20%

Annually World Bank Training completion reports

Identification of a pipeline of projects that are suitable for privatization of PPP

Number of projects

0 0 10 15 Annually World Bank PIB annual reports

306

included in the pipeline


307

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


6/30/2018




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.










Deliver second, third and fourth interim reports of the study on the evaluation of subsidies towards the housing programs

World bank 7/30/2017

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

7/30/2017

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

4/28/2017

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

10/30/2017

Firm- up the institutional delivery mechanism for the financial education program

Ministry of Finance

7/30/2017

Finalization of the technical material for the financial education program

World Bank in conjunction with Ministry of Finance

07/30/2017

Signature of MoU with the regional partner university for the Wharton housing finance training

AMF in conjunction with World Bank and Wharton

9/29/2017

Finalize the data collection for the online affordable housing finance knowledge platform and resource center for the MENA region

AMF 9/30/2017

C. Implementation Status of Components Component 1: Scaling up the Supply of Affordable Housing (WB)



Sub-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 March 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 July 2017.

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: 21,432 AMF: 21,432

WB750,754 WB: 750,754

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: 0

WB: 48,518AMF: 44,642 WB: 154,099

2017 AMF: 44,642 WB: 274,441

AMF: 66,963 WB: 387,402

AMF: 89,284WB: 661,843

2018 AMF: 66963 WB: 387,402

AMF: 44,642 WB: 387,402


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


Intermediate Result (Component One): Scaling-up the supply of affordable housing.Sub-component 1.1: Evaluation of Government Housing Policy and Programs.

Sub-component 1.2: Stimulating the Rental Housing Market.

Intermediate Result indicator: Evaluations of social housing programs and subsidy allocation and new policy development.

#of reports completed

1 2 2(A;1)

Bi-annually Reports and studies produced.

World BankNote: Report preparation ongoing

Study on supply and demand analysis for housing delivered

Intermediate Result indicator: Technical analysis, feasibility and policy support for development of rental sector.


0 3(A;1)

4(A;1)


World BankNote: ongoing

Rental benchmarking study delivered

Intermediate Result (Component Two): Expanding access to affordable housing finance.Sub-component 2.1: Reform of the Guarantee Fund.

Sub-component 2.2: Strengthening the Lending Environment.Intermediate Result indicator: Technical diagnostics reports for the guarantee fund, development of risk assessment systems, and plan of action of institutional reform.


2 3

(A;3)

4

(A;3)


World Bank3 technical reports for the guarantee fund have been prepared

Intermediate Result indicator: Action plan to improve prudent lending practices, training modules and regulatory setting.


0 2 2

(A:1)


World BankActivities ongoing (financial education and consumer protection program)

Benchmarking of relevant international experiences for consumer protection frameworks (prudent lending practices and related regulatory settings) for low income housing finance delivered.

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 3 (A) 4 (A) 6 Annually Training, conference and workshop participant surveys

Arab Monetary Fund

Note: Four events have been undertaken to date:

-Training of two Ministry of Finance officials in Wharton USA

-Knowledge exchange between French and Moroccan mortgage guarantee fund

-Event around Guarantee Fund reform and best practices and mortgage

financial literacy

-International rental seminar

Intermediate Result indicator: Content on an e-platform to consolidate housing data, information.

Percentage of progress

0% 50% 100% Annually Progress reportArab Monetary Fund

Ongoing

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





Rating for progress towards achievement of objective: Moderately satisfactory





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.

In November 2016, the second Steering Committee was held in Amman. Participants from Morocco joined this meeting,


which has reviewed the progress of the initiative at regional level and defined the guidelines for the 2017 activities.

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, presented to the stakeholders in a workshop in September 2016 and agreed. Final versions of the reports have been disseminated among country focal points in December 2016.


For the third component (Logistics Observatory) data collection/processing is ongoing. The architecture of the IT system to support the observatories has been designed during Q4 2016. this semester.




Publication of the report defining the characteristics and services of the Logismed logistics platforms and also the configuration of the network.

CETMO 3/31/2017

Promotion of the network of logistics platforms in Morocco. CETMO 2/13/2017

Workshop presenting the final version of the diagnostic study of the training offer in logistics in Morocco.

GOPA 1/30/2017

Launching training activities in Morocco, following the recommendations of the diagnostic elaborated.

GOPA 2/13/2017

Implementation of the activities defined to reinforce the National observatory in Morocco.

CETMO 1/31/2017


Previous Rating: Moderately satisfactory

Current Rating: Moderately satisfactory

Cost (US$): 314,387

Sub-component 1.1: Promotion of LOGISMED project

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, once the concept of Logismed logistics platforms is completely defined.In November 2016, the second Steering Committee of the Logismed soft initiative was held in Amman. Participants from Morocco joined this meeting, which has reviewed the progress of the initiative at regional level and defined the guidelines for the 2017 activities.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 agreed with the Moroccan authorities during this period. Final version agreed has been disseminated to the countries December 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 held in Barcelona the 19th September 2016. This workshop complemented the study, allowing the incorporation of the opinion of the experts in the final version of

the study. 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.







Cost (US$): 491,660


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. First version of the diagnostic report has been presented to the Moroccan focal points in November 2016. Comments from national representatives have been collected and are being incorporated to the report. In January 2017, a workshop will be held in Casablanca / Rabat to present the results of the diagnostic to the whole training and logistics community in the country and to promote their participation in the project. This workshop will also serve as kick off meeting of the specific training activities in Morocco.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


Finalisation of the Diagnostic report work and holding of its dissemination workshop (January 2017). Launching of the specific training activities in Morocco (consecutive to the end of the previous activity).

Component 3: LOGISMED ObservatoryPrevious Rating: Moderately satisfactory


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 finalized.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. The list of thematic areas and indicators of the regional Observatory has been agreed during the Second Steering Committee held in November 2016. This work has taken into consideration best practices of Observatories and existing Macro-indicators to describe Logistics performance and also the comments from the Moroccan representatives (a first draft of the list has been shared with Moroccan Transport ministry and AMDL in order to receive their comments and to include them).A second piece of work finalized is the study of statistical data production in Morocco to be used to elaborate the indicators.

The Moroccan priorities for the short term concerning the Observatory and its needs have been adopted in the list of activities to implement in the short term. However, this list of activities has not been launched this period due to the fact that in order to improve the list of indicators of the Regional Observatory, a short term expert was engaged to analyze and to ameliorate the pertinence of the list. The final version of the list of indicators was agreed during the second Steering committee (November 2016). This time has been used by CETMO to design a proposal of architecture of the IT system to support the observatories (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.Most of the activities of this sub-component will be implemented during 2017 (Building the IT system, Elaborating the indicators, Implementing technical assistances to collect new data or improving the existing data and Preparing the first results).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 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.


(x)


(y)

Total (US$)


0 1,423,094 1,423,094


0 1,423,094 1,423,094


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 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)n/a -

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)

5.5(2015)

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

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 0 3 4 5Once per

year

Country planification /

Projects launched


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


Unit of Measure

Baseline Cumulative Target Values** Frequency Data Source/

Methodology


Collection


definition etc.)Aug 2013 – Jul

Aug 2014 – Jul

Aug 2015 – Jul

Aug 2016 – Jul

Aug 2017 – Dec

2014 2015 2016 2017 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

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 0 120 120

Once per year





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





generate the human resources

to operate the platforms


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


Unit of Measure

Baseline Cumulative Target Values** Frequency Data Source/

Methodology


Collection


definition etc.)Aug 2013 – Jul

Aug 2014 – Jul

Aug 2015 – Jul

Aug 2016 – Jul

Aug 2017 – Dec

2014 2015 2016 2017 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

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: Morocco Activities

H. 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: Eberhard BOEMCKE 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

I. 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 was 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 practicesPrevious 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$)

Approved Amount 0 350,000 350,000

for Direct Project Activities (a): Amount Received from Trustee (b):

0 420,000 420,000*


0 287,290.85 287,290.85

* 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 114,916.34 0 114,916.342015 0 0 02016 172,374.51 0 172,374.51

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 33

Indicator Two: Infrastructure metrics

Number 3,73 +6% 3% 9% 12% 15% 18% Annual Reporting to BAM

BAM Agents, ATMs and POS34 terminals per 10 000 inhabitants (adults)

Indicator Three: Transactions per acceptance infrastructure35

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

33 Regulated Deposit account + Prepaid card34 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.35 Average Deposit amount (MAD)

Indicator Four: Cost reduction to maintain specific payment product accounts by institution type36

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

scenario37

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.

36 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 population37 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


Activity 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

Name and Email of Recipient Entity Contact:Mr. Jamal RAMDANE: [email protected]





5/15/2013


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 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, was submitted to the MENA TF and was approved in September 2016.

EIB prepared an amendment to cooperation agreement to use residual funds. This amendment is currently under signature by Moroccan authorities.

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 completed. A seminar on road safety was held in July 2016, and a road safety auditor training was carried out in September-November 2016. A first pool of road safety auditors


is now well trained and fully operational.b) TA to transportation activity: Activity was restructured. 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. The creation of this unit is taking some delays. Procurement expected to start in the 2nd quarter of 2017.

- Component #2.1(Motorway Oujda-Algerian border): Morocco studies this project with own funds.

- Component #2.2 on RN8 Fes-Marrakech: Activities completed in December 2016. An investment project is now ready for implementation. Following the Mena TF approval in sept-16, a continuation of this TA for the adjacent section of the “Autoroute du centre” between Fès and Kénitra (Kenitra Atlantic Port) is financed from residual funds under the TRANSTRAC project in Morocco. Component #2.3 (Logistics sector): A small TA (EUR 50,000) to help AMDL supervise regional logistics zones studies is completed. 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 and consultant is expected to be in place in feb-16. Concerning the logistics zones in greater Casablanca related to the “agro-commercialization” and construction materials, the Promoter considers that the current institutional context is also not mature for these studies to go ahead and suggested replacing these two studies by another one dealing with the platform for Ouled Saleh (70 Ha located at the southern entrance of Casablanca). This feasibility study will require an estimated budget of 150 000 EUR. ToRs are prepared and procurement will start in the 1st Q of 2017.

- 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. TA started in Sep-2016 and a first steering committee is scheduled in Feb-17 after completion of phase 1 of the study.

- 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 discussed, during restructuring note preparation, this with Ministry of Equipment, Transport and Logistics to reduce the scope of this component.


Component 1: Institutional and capacity building for regional trade framework improvementPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 250,000Sub-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. ToRs have been drafted. Procurement is expected to start in the 2nd quarter of 2017 since the PPP unit is still not created.

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 was organized in July 2016 to present experience of similar countries in Road safety and lessons learned. Concerning phase 2 (road safety training) it started in September 2016 for some 20 engineers from the Ministry of Equipment and Transport in road safety audit and inspection of roads and motorways. The training was completed in Nov-16.

Component 2: Preparatory studies for infrastructure improvements of the priority corridors and multi-modal transport networkPrevious Rating: 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 was extended by 4 months taking into account the postponement of consultant services because of the Morocco boycott of European institutions (January- April 2016). The study was completed in dec-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) was proposed to be financed under Transtrac residual budget (1,12 M USD). EIB prepared ToR and submitted it to the promoter (Direction des Routes) and will launch tendering process in Feb-17.

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 is expected to be in place in the Feb- 2017 for contract duration of 9 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, according to the promoter, the current institutional context is also not mature for these studies to go ahead. It was hence suggested, to cancel these TRANSTRAC sub-components, which was done in the restructuring note.The promoter suggests replacing these two studies by another one dealing with the platform for Ouled Saleh (70 Ha located at the southern entrance of Casablanca) that will receive urban logistics and other complementary flows to be specified by the study. The project will be rapidly implemented. This feasibility study will require an estimated budget of 150 000 EUR. ToRs are prepared and procurement will start in the 1st Q of 2017.

Sub-component 2.4: Ports Directorate; Preparation of selected activities for the extension of Agadir port


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 promotors for this TA is ‘’la Direction des ports’’ and ‘’l’Agence nationale des Ports’’.In May 2015, EIB/SNAP-T and the Moroccan authorities agreed on the project scope. ToRs have been finalised in autumn 2015.The consultancy contract was signed in July-16. The kick-off meeting was held in Sep-16 and the consultant started in the ground in Oct-16 and met all stakeholders involved in the port sector in Agadir region. The next steering committee is scheduled in feb-17 to decide, upon the completion of phase 1, on different development options for the port of Agadir. The phase 2 will follow immediately this meeting.

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 re-scoped to 100,000

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 discussed, during restructuring note preparation, this with Ministry of Equipment, Transport and Logistics to reduce the scope of this component.


(US$)(x)


(y)

Total (US$)


500,000 2,850,000 3,350,000


500,000 2,850,000 3,350,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2015 366,931 366,9312016 0 150,000 516,9312017 500,000 100,000 1,112,7632018 1,118,618 1,118,618 1,000,000


200,000 0 200,000

G. Results Framework and Monitoring PS: indicator 2 is slightly modified following the approval of the restructuring note by Mena TF in sept.16



Unit of Measure

Baseline


Frequency

Data Source/

Methodology



etc.)

Jan. 2016

– Dec. 2016A 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 and v) Feasibility study of Motorway Fès-Méknès to Kénitra Atlantic Port

Percentage progress; and

# of studies

0

0

50%

3

70%

4

100%

6

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 indicator Four: Feasibility study for the Motorway link between Fès Méknès region and Kénitra Atlantic port




Intermediate Result (Component Three): Project Preparation, Management, Coordination, Monitoring and Evaluation

Intermediate Result indicator Quality 0 0% 60% 100% 3-months Reports PMCU, with Quality

reportingTime based

EIB input reporting, M&E

Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making in Morocco


Activity 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: Andreas Schaal; Tatyana Teplova


Recipient Entity: Ministry of Solidarity, Women, Family and Social Development, 47 avenue Ibn Sina, Agdal 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.


Satisfactory.


In the second half of 2016, all the activities planned have been successfully implemented thanks to the continuous commitment, consistent communication, regular coordination and strong engagement from the Ministry of Solidarity, Women, Family, and Social Development.

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 Public Function and Modernization of the Administration), parliamentarians, representatives of different political parties and members of Women’s CSOs dedicated considerable time to the activities organised in the framework of the project, which demonstrated their strong interest and support too. They also contributed by providing detailed information.The OECD held meetings with representatives from the UK, France, Spain and the European Delegation to present the work and future activities of the project. Discussions were held with the



French Embassy about a greater collaboration in the context of the 2018 regional dialogue.

During the past six months, the main achievements include: Elaboration of a country-based assessment of the existing opportunities and current

challenges faced by women candidates which will be shared with counterparts for validation;

Elaboration of two “Candidates” and “Train the Trainers” (ToT) manuals. Elaboration of a participant workbook, as well as PowerPoint presentations to support the

training of prospective female candidates running for elections. Organization of two successful capacity-building seminars intended to women candidates to

national elections and future trainers (ToT), covering all topics mentioned in the project proposal (1. Introduction to voting registration and civil rights; 2. Running successful campaigns: Campaign fundraising and financial integrity of MP; 3. Balancing duties and responsibilities of the parliamentary service; and 4. Leadership development and Parliamentary procedures). These modules have been tailored to the political context of the country and can be delivered separately or jointly.



Expected Date of

DeliveryValidation by the counterparts of the assessment of the existing opportunities and the current challenges faced by women candidates in Morocco (Comp. 2a)

The OECD in collaboration with the Ministry of Solidarity, Women, Family and Social Development (MSWFSD)

January 2017

Organization of the advisory sessions to strengthen public consultation capacity of parliaments and women’s CSOs in law-making processes (Comp. 3)

The OECD in collaboration with the Ministry of Solidarity, Women, Family and Social Development (MSWFSD)

February-March 2017


Component 1: Making legislatures transparent, equitable and gender-sensitive.Previous 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 in Morocco.

Status of Implementation: The implementation of this activity will take place in the summer 2017 (after Ramadan). It will consist of a fact-finding mission for the elaboration of an assessment

through which the parliamentary, electoral and workplace operations, processes and policy frameworks will be analysed through a gender lens, including in selected local election councils. The first draft of the assessment will be shared with the local partners in the fall 2017. Sub-component 1.2: Providing country-based capacity building activities to parliamentarians, selected local electoral committees and secretariats.

Status of Implementation: The implementation of the capacity building will take place in the first half of the year 2018.Component 2: Strengthening capacity and skills of women parliamentarians and the national and local level.

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 223,642Sub-component 2.1: Conducting country-based assessment of the existing opportunities and the current challenges faced by women candidates in Morocco

Status of Implementation: The fact-finding mission was conducted in March 2016, with the participation of peer reviewers from Egypt and Spain (Former Secretary of State of the Ministry of Women Affairs and a former member of the Spanish Parliament).The report based on findings for Assessment 2a is currently being finalized and will be shortly shared with the Ministry for its validation. It is based on an adapted guide on the methodology and framework to conduct a country-based assessment of the existing opportunities and current challenges faced by women candidates.

Sub-component 2.2: Building women’s capacities to participate in elections and parliamentary/local council operations at the national or level.

Status of Implementation: The OECD successfully organised, in close collaboration with the Ministry of Solidarity, Women, Family and Social Development, capacity-building seminars for female candidates running to national elections and future trainers, held from 2 to 4 September in Marrakech, and from 6 to 8 September 2016 in Rabat. It was decided to organise it in two different cities in order to reach women candidates from all over Morocco (Tangier, Tetouan, Al Hoceima, Fès-Meknès, Rabat-Salé-Kénitra, Casablanca-Settat, Béni Mellal-Khénifra, Guelmim-Oued Noun, Dakhla, Laâyoune-Sakia El Hamra, among others.) who could benefit from this training.

The objective of these seminars is to strengthen women’s capacities to participate in elections and parliamentary operations at national level. The 4-day capacity building programme covered encompassed plenary sessions and working group sessions, and alternated presentations, teaching exercises and practical exercises in small groups. The theoretical and practical sessions of the capacity-building seminars focused on four main topics:

1) Introduction to voting registration and civil rights.

2) Running successful campaigns: campaign fundraising and financial integrity of MPs.

3) Leadership development and parliamentary procedures.

4) Negotiations skills and leading public debates.

The OECD elaborated two manuals for these seminars:

•The Participant’s Manual, which aims to improve the participants’ understanding and knowledge of electoral processes, campaigns, leadership, etc. Thanks to this manual, participants strengthen their leadership, improve their political skills and develop their technical and practical expertise.

•The Trainer’s Manual which aims to give interested participants some tools to train other female candidates in turn and thus multiply overall impact. Thanks to this manual, at the end of the seminar, participants should have achieved the following :

Understand the exercise of democracy, its institutions and their functioning.

Know how to win public opinion to their cause (election campaigns and advocacy).

Develop leadership of attending women.

Be able to cope with the demands of public life.

The participants gained an understanding of the legal and institutional framework, as well as strategic technical elements of the electoral process. They also developed the immediate leadership, negotiation and policy analysis skills required for women parliamentarians to play their role effectively in the elections in Morocco that took place on 7 October 2016. The seminars provided the opportunity to train around 100 women candidates from 22 political parties– predominately consisting of prospective female candidates. We also organised a Train the Trainer sessions which was attended mainly by representatives from women’s associations, CSOs, academia, as well as parliamentarians and candidates with an interest in cascading the training seminars in the future.

Three of the women who benefited from this training were elected parliamentarians during the last elections of October 7, 2016. The number of women MPs has increased from 67 (elections of 2011) to 81, which corresponds to 20.51% women in the Moroccan Parliament.

Thanks to the OECD peer-to-peer learning process, the seminars also represented an opportunity for candidates to meet and engage in substantive discussion with Moroccan parliamentarians and experts from OECD countries in order to exchange experiences and good practices.

The study visit of Moroccan parliamentarians to an OECD Parliament will tentatively take place in the fall of 2017.




Cost (US$): 119,004

Status of Implementation: Implementation of this activity will take place in February 2017.




Status of Implementation: The first regional dialogue for the project was hosted in Amman, Jordan on 4-5 May 2016, and co-organised 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. Morocco was represented and greatly contributed to the discussions.

The next regional dialogue will take place in Egypt in 2017 and in Morocco in 2018.

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

(US$)

(x)


(y)

Total (US$)


593,433 USD 593,433 USD


164,323 USD 164,323 USD



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

39,900 0 39,000





2016‘A’

2017‘F’

2018‘F’


















Indicator5 : No. of trained representatives of parliamentary secretariat, parliamentarians, local elected officials and women candidates



Public sector staff received training in various thematic areas to improve their capacity for better public service delivery








Qualitative 0 0 10 20 Once Project progress report

PIT Number of Government Bodies and institutions received support to conduct an analysis of parliamentary electoral and workplace operations, processes and policy frameworks through gender lens




PIT Number of trained representatives of parliamentary secretariat, parliamentarians and local elected officials


Indicator 3: Studies, assessment, reports, action plans, roadmaps, models of good practices or frameworks endorsed



PIT No. of assessments, guidelines, materials, training modules, toolkits and guidelines designed to enhance the

enabling environment



PIT Women cnadidates trained




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



PIT Parliament , Ministry of Women affairs and local elected institutions received support services aimed at increasing their capacity to engage stakeholders, including women’s groups and mainstream gender sensitive principles








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]

[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


M Omar Faraj General Director of Taxes DGI

[email protected]

Madame Asmae Tbaer Head, Service of International cooperation DGI

[email protected]


US$ 3,577,513


Parallel financing by recipient entities (ADII and PortNet): US$ 1,400,000


World Bank: US$ 421,563.11

OECD: US$ 376,363


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.

Please note that the rating below is an overall rating for all components, and does not reflect the independent dynamic of the components: component 1 would rate as moderately unsatisfactory, while component 2 and 3 would rate as satisfactory.Rating for progress towards achievement of objective:



Brief Summary of Project Implementation Status: World Bank portion (Components Regional Customs Connectivity): This component support customs connectivity through three activities. One of these - Big Data for risk management – is likely to proceed as expected initially in the first half of 2017. International data exchange is ready technically but the implementation is pending decision by other partners, including European ones, which have delayed their participation. The scope of support for the third activity (“douane mobile”) will have to be reviewed as it appears that procedural constraints (procurement rules) make it very difficult to support the envisioned items under the Transition Fund.

World Bank portion (Components 2: Facilitating trade through upgrading the institutional and regulatory environment for businesses): Two implementation support missions for the different project components took place in September and December 2016. Meetings were held with the Agence Marocaine du Développement de la Logistique (AMDL), PortNet, Comité Régional de l’Environnement des Affaires (CREA) Casablanca, Agence de Nador West Med. Overall this component is proceeding well, in spite of a slow start due to the needed mobilization of information from the client and mobilization of very specific expertise by the World Bank, in response to the needs of the focal points. The main outputs of the technical assistance are expected to be delivered in the first part of 2017.

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.

The OECD also has a Country Programme for Morocco which consists of 17 policy reviews and adhesion to 9 OECD legal instruments. It is built around three main policy areas: economic growth and competitiveness, social inclusion and public governance. This set of activities will give Morocco access to key information and recommendations to develop and bolster its reform agenda over the next two years in order to support strong, inclusive and sustainable growth.




Component 1: Process contract (Expression of Interest process completed) on regional electronic data exchange, and execute (ADII, Moroccan customs)

WB 2/15/2017

Development of pilot Big Data WB Q1-Q2 2017

Discussion of reallocation of the fund for Douane Mobile to similar eligible activities

Morocco/WB Q1-Q2 2017

International connectivity: discussion with European (facilitation of decision)

WB TBD

Component 2: Finalize surveys in the Oriental region and present results to client (Agence de Nador)

WB 04/30/2017

AMDL draft law WB Q1 2017

Nador west Med Interim Report and Discussion with local authorities WB Q1 2017

Ditto survey results draft report Plan of action WB Q2 2017

CREA Implementation of post-creation survey WB/CREA Q4 2017

PortNet trade portal, vision paper (done) and advisory to implementation WB Q1-Q2 2017

Component 3: Phase 2 Peer review of Morocco Report OECD Q3 2016

Participation to the meeting of the BEPS inclusive framework Morocco 26-27 January

launch of pilot on AEOI OECD/Morocco Q1

Technical assistance in the drafting of transfer pricing legislation and regulations based on an Action plan agreed with Morocco

OECD Q1-Q2

3rd transfer pricing workshop in Rabat OECD date TBD

Morocco’s participation to the Global Forum on VAT in Paris Morocco 12 – 14 April

Morocco’s participation to the OECD Task Force on Tax and Crime in Paris

Morocco 20-21 April

seminar on Using the Multilateral Convention to obtain information to counteract BEPS

OECD Q2 date tbd

Morocco’s participation to the workshop on Revenue Statistics in Africa Morocco Q2 date tbd

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.Previous Rating: Moderately Satisfactory


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 ImplementationAs for international cooperation: ADII (Moroccan customs) is ready to cooperate within the framework of an action under the auspices of the World Customs Organization (WCO). Technically the countries have agreed on the specifics of data to be exchanged and the technical solutions within Euro-Maghreb discussion and in the Agadir framework. At least Morocco and France are technically ready to exchange data on a regular basis. The main challenge lies in facilitating the cooperation, and overcoming apparent legal issues, especially on the European side. The Bank is ready to facilitate, once the objections are explicated.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 ImplementationThis sub-component needs to be reassessed with the client. It seems very difficult to pay for the development of an application for an automated management system for the temporary admission of passenger vehicles in the context of a World Bank-executed contract, in a way that is satisfactory for the clients. The area itself does not need much international expertise. The World Bank will take this up with ADII during the next implementation mission in January or February 2017.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:After a delayed start, the implementation mission for this sub-component is to take place in Q1 2017. The topic (risk management and Big Data) is still of very high interest and relevance. The World Bank has prepared with the WCO and an international Big Data expert an inception report for the client that assesses international experience in Big Data applications for customs. At the request of the client, the WB has identified and activated a French expert to oversee the cooperation.

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 (Nador West 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: Two implementation support missions comprising experts on logistics regulation took place in Morocco in May and December 2016. The May 2016 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 are considered as the templates. The December 2016 mission allowed for an intensive review of existing Moroccan texts and resulted in recommendations on how to improve the existing legal framework as well as a structure for the draft law. The next mission is scheduled for February 2017 to review a draft law being prepared by the World BankSub-component 2.2: Maximizing the impact of the maritime complex Nador West MedThe activity is an exhaustive review of the interventions that national and local governments should consider 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 includes expert

assessment, data analytics, 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: Two implementation missions were carried out in September and December 2016. The team worked with the focal point (Agence de Nador West Med) and other agencies to gather critical data. It finalized the selection process for a local company to carry out three surveys (designed by the WB) assessing the impact of the planned port complex Nador West Med on (i) companies based in the Oriental region, (ii) companies based outside the Oriental region but inside Moroccan regions that would have good access to Nador West Med, and (iii) trucking companies serving routes originating and ending in the Oriental region. The survey results will be available by Q2 2017.In addition, the team is finalizing an interim report and three connectivity models to assess the impact of Nador West Med and complementary measures, to be presented to regional stakeholders in February 2017.A draft report including further result of the surveys, feedbacks will be prepared in Q2 along with a draft detailed plan of actions that will target local connectivity links, local investment climate, institutional arrangement, or capacity needs (e.g. skills overhaul).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: Achievements and next steps: The World Bank Group supports the CREA, Regional Committee for Business environment for the Casablanca-Settat region chaired by the Wali, and the Regional Investment Centre (CRI) on certain reform actions. Among the activities supported by the Bank are a study that aims to better understand the fate of companies created by the CRI over the past ten years, and to help identify internal and external factors explaining the evolution of these companies. The Bank has hired a consulting firm as well as a senior expert to support the design and the implementation of the survey, and come up with a set of recommendations and an action plan. An MoU was signed earlier this year between the Governorate (the Wali) and the entities involved in the business registration process (the CRI, the tax administration, the social security administration, the central commercial registry (OMPIC)) and included Maroc PME, a public entity in charge of supporting SMEs, to help ensure their commitment and contribution to the work undertaken in the framework of this study. The kick-off meeting was held early January and was chaired by the Wali of the Casablanca-Settat region and attended by the signing parties. Next steps include data collection with the above-mentioned entities as well as the design of the questionnaire.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: Two missions took place in 2016: February and December. The February 2016 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. The December 2016 mission mobilized an international expert who conducted an international benchmark exercise that was presented to PortNet and relevant partners. The December 2016 mission met with key players of the PortNet ecosystem, namely the Ministry of Foreign Trade, the National Customs Authority, National Foreign Exchange Office, National Ports Agency and National Association of Freight

Forwarders. The mission allowed for a better understanding of the institutional and technical arrangements for the trade portal implementation as well as a commitment of these partners to the development of the trade portal. The next mission is scheduled for February 2017.

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 in the second semester of 2016. 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 assessed the legal and regulatory framework for transparency and exchange of information for tax purposes as well as its implementation and effectiveness in practice. As a result of the review Morocco obtained the rating of “largely compliant” from its Peers. Morocco is also benefiting from a pilot on automatic exchange of financial account information which is in the process of being implemented.

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 participated in the first regional meeting of the BEPS Inclusive framework for francophone countries held in Tunisia on 22-24 November 2016 and attended by 13 countries. These regional meetings are an integral element of the Inclusive Framework, enabling all countries and jurisdictions to discuss the implementation of the BEPS package on a regional basis, including the development of practical tools and to feed their perspectives into the global dialogue. Moroccan tax auditors benefited from two transfer pricing seminars in April and September 2016 to improve their skills to address transfer pricing issues and tax evasion in cross border transactions.

Morocco is one of the first eight countries included in the first edition of Revenue Statistics in Africa published on 1st April 2016 which provides internationally comparable data. A senior tax official of Morocco was seconded to the OECD from 5 September to 5 December 2016 to work on tax policy analysis and assist in the preparation of the second Edition of Revenue Statistics in Africa.

Actions to be Taken in the first semester of 2017 Responsible Party

Date of Delivery 2017

Participation to the meeting of the BEPS inclusive framework

Morocco 26-27 January

launch of pilot on AEOI OECD/Morocco Q1Technical assistance in the drafting of transfer pricing legislation and regulations based on an Action plan agreed with Morocco

OECD Q1-Q2

3rd transfer pricing workshop in Rabat OECD date TBD

Morocco’s participation to the Global Forum on VAT in Paris Morocco 12 – 14 April

Morocco’s participation to the OECD Task Force on Tax and Crime in Paris

Morocco 20-21 April

seminar on Using the Multilateral Convention to obtain information to counteract BEPS

OECD Q2 date tbd

Morocco’s participation to the workshop on Revenue Statistics in Africa

Morocco Q2 date tbd

Sub-component 3.1: Assisting with the Implementation of international tax standards on tax transparency and information exchange

Assist Morocco with the implementation of the international standard on exchange of information on request (EOIR) and the new standard of automatic exchange of financial account information (AEOI). Assist Morocco to maximize the benefits of effective implementation of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) in the areas of exchange of information, assistance in tax collection, exchange of tax intelligence, bilateral/multilateral simultaneous tax examinations and joint audits which was signed on 21 May 2013 and ratified in February 2016 (still awaiting the Royal seal to be able to be deposited and enter into force).

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 a Global Forum on Tax Information exchange (GFTEI) Phase one Peer Review which made a number of recommendations for improvement of its legal framework. Morocco benefited from the technical assistance of the GFTEI Secretariat to address the shortcomings and the recommendations contained in the Phase 1 Report. Morocco’s Phase 2 Peer Review Report was approved by the GFTEI in November 2016 and assesses the legal and regulatory framework for transparency and exchange of information for tax purposes as well as its implementation and effectiveness in practice. Morocco was rated largely compliant by its Peers (see http://www.oecd-ilibrary.org/taxation/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-peer-reviews-morocco-2016_9789264261044-en;jsessionid=16lmkcwc9dkwk.x-oecd-live-03 . Activity 3.1.2: Enhancing the effectiveness of Exchange of Information Unit Status of Implementation: Morocco identified as a high priority assistance 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 will improve the quality and speediness of EOIR. Following the reorganisation of the Direction générale des impôts (DGI) a unit dedicated to the exchange of information was put in place and the head of the EOI unit appointed in July 2016. Morocco is now being assisted to put in place a suitable organisation and monitoring system for the processing of EOI requests from its partners, in particularly by adopting internal deadlines for processing requests and a documented process, in order to ensure that in all cases, partners receive timely responses to their requests.

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 May 2016. In 2017 another event will focus more particularly on the potential of the MAAC to counteract Base erosion and profiting shifting (BEPS) (there are now over 100 jurisdictions participating to the Convention). http://www.oecd.org/ctp/exchange-of-tax-information/Status_of_convention.pdf 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 and the GFTEI Secretariat will start assisting Morocco with the implementation of the pilot as the Phase two Peer review of Morocco has now been completed.Activity 3.1.5: Capacity building through staff assignment and participation at multilateral eventsStatus of Implementation: In the framework of the project, the DGI has the possibility to send tax officials for training at the GFTEI Secretariat and also to benefit from visits to EOI Units to learn from relevant country experiences. In November 2016, the head of the EOI Unit attended a training seminar on exchange on request organised by the GFTEI.

Previous Rating: Satisfactory Current Rating: SatisfactorySatisfactory

Cost (US$):

http://www.oecd.org/ctp/exchange-of-tax-information/Status_of_convention.pdf

http://www.oecd.org/ctp/exchange-of-tax-information/Status_of_convention.pdf

http://www.oecd-ilibrary.org/taxation/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-peer-reviews-morocco-2016_9789264261044-en;jsessionid=16lmkcwc9dkwk.x-oecd-live-03



Sub-component 3.2: Addressing Base Erosion and Profit Shifting (BEPS)

Enable Morocco to benefit from the solution developed to address BEPS and provide Morocco a voice in the decision making process. Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. Under the inclusive framework, over 100 countries and jurisdictions are collaborating to implement the BEPS measures and tackle BEPS. http://www.oecd.org/tax/beps.htm The GoM has not formally joined the BEPS inclusive framework but has taken an active part in the G20/OECD work on BEPS and participated in the first regional meeting of the BEPS Inclusive framework for francophone countries held in Tunisia on 22-24 November 2016 and attended by 13 countries . These regional meetings are an integral element of the Inclusive Framework, enabling all countries to discuss the implementation of the BEPS package on a regional basis, including the development of practical tools and to feed their perspectives into the global dialogue.

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) programStatus of implementation on activities 3.21, 3.2.2 and 3.2.3 : The OECD is preparing an in depth Diagnostic on BEPS risks , existing legislation regulations on transfer pricing, thin capitalisation and other legislation relating to profit shifting (together with proposals for reform). Proposals for reform will be discussed with the GoM early in 2017. 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 on transfer pricing issues was launched in 2016. The second Transfer Pricing training took place on 26-30 September 2016 in Rabat and involved senior tax auditors from headquarters and Rabat as well as from other regional offices. It covered the transfer pricing methods and comparability analysis, transfer pricing aspects of business restructurings and intangibles as well as the BEPS Project. 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. The training assisted in identifying certain flaws in the Moroccan domestic legislation and regulations for example the lack of legal requirement to maintain transfer pricing documentation.

Moreover, assistance in the implementation of the BEPS toolkits relevant to Morocco and designed to address BEPS issues will be provided as they become available in 2017. Morocco has also been offered to benefit from the joint OECD/ UNDP Tax Inspectors without borders (TIWB) initiative http://www.tiwb.org/get-involved/Experts/ that provides audit capacity building using a practical “learning by doing” approach.

Activity 3.2.4: Capacity building through participation at multilateral events Four Senior tax auditors have attended seminars at the OECD multilateral tax centre in Ankara in 2016: on Tax and Crime in March, on TP and customs valuation seminar in September, on Tax Treaty Issues in the BEPS Context in November, and on international tax avoidance/hybrids in December. In 2017 in addition to in country training, Morocco will continue to be invited to send participants to events organized in the OECD Multilateral Centres to assist in the implementation of BEPS measures http://www.oecd.org/ctp/tax-global/description-of-

http://www.oecd.org/ctp/tax-global/description-of-global-relations-events-on-taxation.pdf

http://www.tiwb.org/get-involved/Experts/

http://www.oecd.org/tax/beps.htm

global-relations-events-on-taxation.pdf

Previous Rating: Satisfactory Current Rating: SatisfactorySatisfactory

Cost (US$):

Sub-component 3.3: Revenue Statistics

Enable 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.

Activity 3.3.1: Developing internationally comparable Revenue Statistics data, including customs data

Status of Implementation: The OECD has assisted the Moroccan authorities for the collection of data according to the OECD methodology towards the publication of the first edition of Revenue Statistics in Africa 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 enables Moroccan tax policymakers to better inform their decisions, improve their ability to mobilize domestic resources to support sustainable economic growth and address inequality. Morocco is one of the eight countries included in the first edition of Revenue Statistics in Africa published on 1st April 2016. Morocco will also participate in the 2017 edition of Revenue Statistics in Africa which will cover over 15 countries.

As part of the capacity building programme, two Moroccan senior tax officials were seconded to the OECD in 2016 in the Tax Policy and Statistics Division (the second one from 5 September to 5 December). In 2017, onsite technical support will be provided by the OECD Secretariat to prepare the collection of data for the 2nd edition of Revenue Statistics in Africa.

Note from OECD: Disbursement numbers for project component 3 are transmitted directly by OECD to Transition Fund secretariat.


(US$)

(x)


(y)

Total (US$)


WB: 0OECD: 0

WB: 2,325,000OECD: 1,019,000

Total WB+OECD: 3,344,000


WB: 0OECD: 0

WB: 2,325,000OECD: 163,953

Total WB+OECD: 3,344,000

Actual Amount Disbursed (c): WB: 0OECD: 0

WB: 419,776.18OECD: 376,363

WB: 419,776.18OECD: 376,363

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 WB: 700,000

OECD: 259,837 USDWB: 800,000

OECD: 588,533 USDWB: 1,500,000

OECD: 643,448 USD

2018 WB: 175,000OECD: 122,963

WB: 0OECD: 0

WB: 175,000OECD: 122,963


http://www.oecd.org/tax/africa-revenue-statistics.htm

http://www.oecd.org/ctp/tax-global/description-of-global-relations-events-on-taxation.pdf

WB: 1,786.93OECD: 68,513

WB: 135.823.07OECD: 0

WB: 137,610OECD: 68,513


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.)

2016

A

2017

F

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 0 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

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.





Methodology


Collection


definition etc.)

2016 2017 2018

YR

4

YR5

Component 3 (OECD)

Indicator 3.1: Tax transparency and international tax co-operation as measured

Qualitative and quantitative

Phase 1 Peer Review of Global Forum completed

Phase 2 peer review of the Global

MAAC enters into force

International standards on

According to Global Forum timetable

Global Forum Peer review Reports

Global Forum and DGI

international standards on EOIR and AEOI

against international standards

Forum: rating largely compliant

tax transparency met

Indicator 3.2: Addressing Base Erosion and Profit Shifting (BEPS)

Quantitative BEPS diagnostic capacity building of tax auditors on TP and BEPS

Transfer Pricing legislation and regulations in place

APA programme operational

Annually BEPS measures and toolkits

DGI BEPS risks are identified and addressed

APAs 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 http://www.oecd.org/tax/africa-revenue-statistics.htm

OECD/DGI Moroccan tax policymakers able to better inform their decisions, and improve RDM

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

A

2017

F

2018

F

(a) Activity 3. 1.1: Reviewing the current framework and practices, making recommendations and assisting with legislative and process changes

Qualitative

Global Forum Phase 1 peer review 2015

Global Forum Phase 2 peer review

recommendations of Phase 2 peer review addressed

Legal and institutional reforms are adopted


Project Implementation Reports

Global Forum/DGI

Rating: largely compliant Phase 2 Peer Review Report indicates Morocco has met international standard on EOIR.




(b) Activity 3.1.2: Enhancing the effectiveness of Exchange of Information (EOI) Unit

Quantitative and Qualitative

Zero EOI requests initiated

first requests initiated

10 EOI requests initiated

10 EOI requests initiated



DGI/Global Forum Reports

Responses to incoming requests provided in a timely manner

EOI requests initiated 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 (MAAC) (OECD executed)

quantitative and qualitative

MAAC signed in 2013

MAAC ratified

instrument of ratification deposited

MAAC enters into force

MAAC used to obtain information

Assessed annually


DGI The MAAC will allow cooperation with over 100 jurisdictions covered by the Convention and serve as a basis for Automatic exchange (CRS 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 Pilot

quantitative

No information shared automatically

preparatory phase

Legislation in place to permit automatic exchange and implementation of pilot

assessment of AEOI pilot

once Project Implementation Reports


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

N/a tax official attended GFTEI training

2X officials trained on 2 X courses TBD

2X officials trained on 2 X courses TBD

Assessed annually



Improved Skills to implement EOI

Sub Component 3.2:Addressing Base Erosion and Profit Shifting

(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

BEPS diagnostic completed

DGI adopts key BEPS priority actions (tbc)

DGI adopts key BEPS priority actions (tbc)

Assessed annually


DGI legislation adopted to address BEPS issues implementation of BEPS toolkits relevant to Morocco

http://www.oecd.org/ctp/exchange-of-tax-information/conventiononmutualadministrativeassistanceintaxmatters.htm



(b) Activity 3.2.2: Assistance to develop and implement a strategy on implementing an effective regime to address Transfer Pricing (TP) and other BEPS risks (OECD executed)

qualitative

Risk assessment of profit shifting in 2015, baseline

30 tax auditors trained to address TP issues

30 tax auditors trained to address TP issues,

30 tax auditors trained to address TP issues

Assessed annually


DGI A Transfer Pricing Team is fully trained on TP and BEPS risks, TP methods, business restructuring, intangibles, EOI ,dispute resolution etc.

(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

N/A Legislation and regulation fully in place to facilitate APA program

Assessed annually


DGI APAs program provides certainty to business

(d) Activity3.2.4: Capacity building through participation at multilateral events

quantitative

1 official TP and customs Ankara MTC

2 x officials in 2 X courses

2 x officials in 2 X courses tbc

Assessed annually


DGI Skills/knowledge acquired support other sub components

Sub Component 3.3: Revenue Statistics

(a) Activity 3.3.1: Capacity to develop internationally comparable Revenue Statistics

Qualitative/

Quantitative

N/A 2 X officials at OECD

(rev stats

teams)

completion of statistics from 1990

to 2016

local authoriti

es taxation

also covered

Annually Project Implementation Reports

DGI Skills and knowledge required to publish revenue statistics.


Accessing Overseas Employment Opportunities for Moroccan Youth

A. Basic Project InformationActivity Name: Accessing Overseas Employment Opportunities for Moroccan Youth (P150064)

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)

Name and Email of Recipient Entity Contact: Annass Doukalli, Director General. Email: [email protected]

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.

Total Amount Disbursed (Direct and Indirect in US$): US$442,542.62 ($313,088.62+ 129,454)


6/11/2017


4/15/2015


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 project development objective (PDO) 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.




Brief Summary of Project Implementation Status: Despite experiencing an initial lengthy delay in implementation mainly due to an internal restructuring process in GIZ and the sensitive political context in Germany regarding Moroccan immigration, the project´s implementation begun in August 2016, as soon as Bank clearance for single source procurement of GIZ was granted. The project has since progressively been advancing towards the achievement of the PDO. To date, the project has disbursed a total amount of US$297,393 (approximately 19% of the grant amount).

Under component 1, all 201 candidates have been interviewed and 119 have been selected for the program (27% of the selected candidates are women). The program will provide language training cultural awareness sessions to a total 105 candidates. The students will start German language training in February, and the courses will last until July 2017.

Under component 2, GIZ, ANAPEC and the Moroccan Chamber of Commerce are discussing a strategy to build a network between the main professional associations in Germany (German Chambers of Commerce) and ANAPEC, to explore other possibilities of matching candidates with jobs in Germany that are available in other professional sectors with a current high demand. This is the beginning of setting up a sustainable collaboration

mechanism among agencies of the two countries, while strengthening the capacity and readiness of institutions in Morocco to allow this pilot experience to be replicated on a larger scale and in other sectors.

Under component 3, the Bank along with GIZ and ANAPEC are starting discussions on best practices and how to best capture lessons during implementation. The evaluation matrix has been updated and a more detailed revision of indicators will take place. An in-depth discussion on M&E will be scheduled soon to review a draft outline of an Action Plan for this component.

Actions to be Taken Responsible Party Expected Date of

DeliveryContinuation of project implementation ANAPEC and GIZ ongoing

Start M&E work WB End of project

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: Unsatisfactory Current Rating: Moderately

SatisfactoryCost (US$): 1,300,000

Sub-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: 105 candidates have been preselected.Sub-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: Professors for German language training and the intercultural course have been hired. Both training institutions in Casablanca and Tanger are engaged and ready to start providing the training. Language courses will begin at the end of January, 2017, in Casablanca and Tanger. Sub-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.

Status of Implementation: This activity will begin at a later stage of project implementation.

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: Satisfactory Cost (US$): 200,000Status of Implementation: Conversations with German employers´ associations have started and the link with ANAPEC is being strengthened.

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: Not Applicable Cost (US$): 200,000Status of Implementation: Discussions have started with GIZ and ANAPEC on drafting an Action Plan for this component. The M&E matrix has been updated and a discussion on indicators and capturing lessons learned will be held soon.


(x)


(y)

Total (US$)


1,550,000 200,000 1,750,000


1,550,000 200,000 1,750,000

Actual Amount Disbursed (c): 300,144.07 12,944.55 $313,088.62

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End 2014 0 02015 0 02016 0 300,144.07 (A) 300,144.07 (A)2017 0 551.200 (F) 551,200 (F)2018 247455.93 (F) 651.200(F) 898,655.93 (F)2019


129,454 56,730 225,000




MeasureBaseline




Collection


definition etc.)Sep

2014 – Aug 2015

A

Sep 2015 –

Aug 2016

A

Sep 2016 –

Aug 2017

A

Sep 2017 –

Jun 2018

F

--

Indicator One: Number of direct beneficiaries

Quantitative

None No No 105 90 (F) Ongoing Implementation Completion Report

ANAPEC and GIZ

The first figure of 105 is the current participants in training, as of Jan 2017. The figure in 2018 will represent participants in Germany that have integrated the process fully (minus drop-outs).

Indicator Two: 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 Three: 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

ANAPEC ANAPEC maintains lists of relevant partners in Germany and contact them

databases frequently to update selection requirements, discuss success of apprentices, etc.

Indicator Four: Percentage of German employers participating in the pilot and willing to hire again from Morocco

Percent N/A N/A 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 Five: A regional model of good practice is developed and shared through World Bank and other networks

Qualitative

None No No No Yes Ongoing Implementation Completion Report, citations of program as a good practice, replication

ANAPEC and World Bank

Pilot is endorsed 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 Yes 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 100% 90% 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 and implemented

Qualitative


ANAPEC and GIZ

Training designed and delivered alone by GIZ or together with another firm 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 delivered

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 No 80% 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 0 0 0 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 Percent TBD N/A N/A N/A Baseli Thrice Firm surveys WB Firms surveyed

Two: Firms surveyed to measure level of satisfaction with candidates and perceptions of Moroccan workers

through survey

ne + %

TBD

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$): 1.36 million


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 supervision mission organized between December 5-21, 2016 confirmed the pick-up in Project implementation identified over the past year (and already highlighted after the Mid-Term Review concluded on May 27, 2016). The WB team noted an active participation of all key stakeholders involved in the PIU as well as an increased appropriation of the project. Notable progress has been made vis-à-vis the recommendations of the last mission, as summarized below.

Components 1 and 2 are now ongoing and are progressing at a satisfactory pace: in accordance with the Results Framework, a first Support Center (centre de ressources) has been officially created on December 27, 2016 in Casablanca and its Director General has been appointed (component 1). As for component 2, the first phase of the technical assistance on inter-municipal groupings and asset companies has been finalized and the results of the second deliverable will be presented to the municipalities of the 4 pilot regions by the end of February (the main results of the 2 reports have already been discussed with and approved by the Steering Committee, COPIL). The second phase (direct technical assistance to Intermunicipal Cooperation Entities (ECIs) has been launched concurrently over the past 2 months given the high demand from municipalities for technical support to the setting up of inter-municipal bodies for the management of public services (especially in Casablanca and Rabat). Also, important additional activities confirmed by the 2nd and 3rd COPILs will be included to the Project provided the grant amount in Moroccan Dirhams (MAD) is revised

in line with the favorable evolution of the exchange rate since 2013 (which could lead to a positive balance of about MAD 10 million). Discussions between the Ministry of Interior and the Ministry of Finance on this issue have been ongoing since the past 6 months. Although the Ministry of Finance has reaffirmed the importance of this question (which has arisen for the first time through the PACT project yet should arise again soon for other grants), no decision has been taken so far.

Significant improvements were recorded regarding payment and disbursement deadlines and, financial reporting. The disbursement rate reached 21.83% in December 2016 (as opposed to 13.36% in May 2016). Based on an updated version of the procurement plan approved by the Bank team in early January, 2017, it is expected to reach 45.94% by December 2017. If confirmed, the acceleration in procurement activities of the past month should allow to reach these objectives.

The increased level of appropriation of the Project (which remains in line with overall GOM policy) is illustrated by the organization of three successive Steering Committees (Comités de Pilotage, COPIL) over the past 8 months (on April 28, June 28 and December 20, 2016). Chaired by the Wali Secretary General and the Wali Director General of Local Governments (DGCL) at the Ministry of Interior, these meetings 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 RCs be institutionally anchored within the Wilayas).

The PDO remains highly relevant in light of the governmental decentralization policy, while the alignment between project implementation and the PDO is confirmed. The Organic Law on Municipalities issued in February 2016 illustrates the commitment of the Moroccan Government to improve decentralization and provides with legal bases for an increased autonomy of municipalities and a renewed role of the Ministry in technical assistance and capacity building (accompagnement) to communes– an objective supported by the PACT. Similarly, the inter-municipal management tools (Sociétés de Développement Local – SDL; Etablissements de Coopération Intercommunale – ECI), which the project is supporting through component 2 (contributing to the creation of 4 ECIs), have also been confirmed by the Law. Further evidence of continued PDO alignment with the Government political agenda lies in the estimates made by the PIU regarding the incentive funds committed by the state since November 2013 in order to support the project objectives (a PDO indicator) which amounted to roughly USD 1.7 million by the end of 2016 (thus exceeding the target of USD 1 million set by the results framework).

In light of the recent progress made regarding project implementation and as illustrated by the PDO and performance indicators, the PDO seems achievable by the grant closure.

The team will maintain close support to the client over the coming months.



C1.1: Recruitment of three experts for the Casablanca pilot Technical Assistance Center (CRAMO)

PIU 2/15/2017

C1.1: Finalization of the action plan for the Casablanca pilot center (including data for meeting indicator 1.1)

Casablanca Center/Wilaya/PIU

3/31/2017

C1.1: Creation of 2 new CRAMOs (Technical Assistance Centers) PIU and Wilayas 4/30/2017

C1.2: Action plan for the new activity pertaining to the training of municipal PIU 1/31/2017

staff

C2.1: Presentation and discussion of the main two deliverables of the first phase of the TA in a national workshop with beneficiary communes

PIU 3/31/2017

C2.2: Launching of 2 additional studies (Update of the law pertaining to delegated management (gestion déléguée) of municipal services; Assessment of the potential options and scenarios to restructure the electricity, water, and sanitation distribution system in the Souss-Massa region)

PIU 4/7/2017

C3: Operationalization of the M&E system for supporting intermunicipal arrangements

PIU 3/31/2017

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: Implementation has progressed at a significant pace. The report pertaining to the design of the centers has officially been approved by the 3rd program Steering Committee (Comité de Pilotage, COPIL) on December 20, 2016. Following the recommendations of the 2nd COPIL (held on June 28, 2016) regarding the institutional and financial arrangements of the centers, the report suggests to anchor them within the Wilayas (to ensure their financial sustainability and provide them with a regional scope) while allowing municipalities to contribute to their 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: In accordance with these recommendations and with the objectives of the program results framework, a first Center has been created in Casablanca by an official decision of the Wali of Casablanca-Settat (arrêté gouvernatorial) signed on December 27, 2016. Through this decision, the center is put under the supervision of the Director of Local Governments (DCL) within the Wilaya, thus allowing to meet indicator 1.1. Following a meeting with the Wali, the adapted profile for three experts (specialized in the management of delegated public services) has been defined according to the local needs and demands of municipalities: the ToRs will be developed jointly by the PIU and the DCL within the Wilaya with the support of the WB team and the experts should be hired by end of January 2017 (thus meeting indicator 1.2). The WB team suggested to initiate meetings with the Walis of 2 other pilot regions to discuss the creation of the 2 additional centers included in the results framework.

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: The 2nd COPIL decided to replace the two additional activities previously

identified (preparation of guides for the provision of municipal public services and compendium of texts relating to the management of local public services) by a training activity for municipal staff on contract development and project management (maîtrise d’ouvrage). Given the new legal framework (Constitution and organic laws) and the support that the Directorates on Local Governments (Directions des Collectivités Locales, DCL) within the Wilayas should provide to municipalities, a study on their potential restructuring should also be launched. An action plan for the two activities activity should be shared with the WB team by end of January, 2017

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 1.2: 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: The first phase of the technical assistance contract at the core of component 2.1 should be finalized by end of January, 2017. Indeed, the two required deliverables have been discussed by the last COPIL on December 20, but the main recommendations of the second report (on the institutional and financial arrangements – schema-cibles – for improving local services) need to to be finalized with the Wali Director of Local Governments (Wali DGCL) at the Ministry of Interior before being presented to the municipalities of the 4 pilot regions by end of February, 2017. The second phase of the contract (aimed at providing technical assistance to municipalities on inter-municipal issues) has been launched concurrently. During a joint mission organized in December 2016 with the firm in charge of providing this TA, the WB team had the opportunity to witness the high demands of municipalities for support, especially regarding the creation and development of newly created bodies for inter-municipal cooperation (Etablissements de Cooperation Intercommunale, ECI) in Rabat and Casablanca.

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: Additional activities have been approved by the COPIL under component 2.2 and have been included in the updated 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. The selection process for this activity has been launched and recruitment should be finalized by early April, 2017.

- 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. The selection process is ongoing: technical offers have been analyzed (step completed on January 19). the public opening of the financial bids is

to be organized by February 10 and the selected firm should be invited to sign its contract the following week.

- 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. The selection process for this activity have been launched and recruitment should be finalized by early April, 2017.

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 June.

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:Since April 2016, the Project Steering Committee (COPIL) has met three times (on April 28, June 28 and December 20, 2016), showing the importance given to the program at the highest level within the Ministry of Interior and the political will to speed up its implementation. These meetings brought together the Wali SG, the Wali DGCL and the various members of the institutional architecture supporting the program. The COPIL took decisions pertaining to the implementation of the 3 components (e.g. support to the creation of the first pilot center in Casablanca for component 1; discussion and validation of the two reports of the component 2.1 first phase), as well as to the programming of funds, including the prioritization of new activities to fund.

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 were all updated in December 2016. Furthermore, regular meetings, including with the World Bank team, have promoted dialogue and joint decision-making. Given continued support needs, the contract of the Institutional Expert (in charge of helping DRSC with component 2 follow-up) has been extended for 2017 through and amendment to his contract cleared by the WB team. M&E specialist. a Monitoring and Evaluation (M&E) specialist was recruited in early January, 2017. 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 WB team highlighted the key role of this expert in contributing to the operationalization of a monitoring and evaluation system to support inter-municipal arrangements (indicator 3). The WB team encouraged the PMU to make every effort possible to

ensure that the expert is fully on board to contribute to the operationalization of the M&E system as soon as possible

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$)


4,550,000 495,000 4,550,000


4,550,000 4,550,000

Actual Amount Disbursed (c): 1,050,000 310,584.23 1,360,584.23

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


310,584.23 128,920.77 495,000


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

(A)

Dec 2016 – Nov 2017

Dec 2017 – Sep 2018 Methodo

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 .

Rmq: political engagement confirmed through the organization of a 3rd COPIL

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.

Rmq: Incentive funds reached USD 1.7 million by Dec 2016.

Indicator 3:Number of beneficiaries (male/female) (core sector indicator)

Population 0 0 0 1000000

TBD TBD Annually Census data


Population of the LGs benefitting from the program, and % male/female – targets to be determined when design

will be finalized.

Rmq: for CY 16, target has been established based on an estimate by the PIU of the number of users of public transport which management is ensured by the Al Assima ECI. The next targets will be defined in the coming months with the support of the recently hired M&E specialist

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


The Casablanca Center has been created by an official decision (arrêté gubernatorial) by the Wali on Dec 27, 2017. The center will be fully operational by the end of the first semester of 2017.

Intermediate Result Indicator 1.2:The number of Government Departments

number 0 0 0 1 1 4 Annually Biannual report


The ministry of Interior has supported/is supporting the creation of the Casa center and will oversee its activities in

offering services through the established support centers.

2017

Intermediate Result Indicator 1.3:The number of Municipalities benefiting from support of the LG Support Centers.

number 0 0 0 10 20 50 AnnuallyBiannual report


The target for 2017 will be (re)defined in the action plan of the Casablanca center (to be finalized by March 30, 2017)

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.



Target met for 2017 thanks to the extension of the activities of the Al Assima ECI from 10 to 24 municipalities in 2015 and the transfer of a new activity (water and sanitation) in addition to that of urban transport.

Intermediate Result Indicator 2.2:Number of inter-municipal local authorities (ECI) with operational asset companies or similar institutional arrangements.



Target met for 2016 through the creation of the STRS, an assets company (société de patrimoine) in charge of the management of urban transportation on behalf of the Al Assima ECI;

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.

Rmq: set for 2018, this target should be easily reachable

Intermediate results of component 3: Project Management, Monitoring and Evaluation

Intermediate Result Indicator 3.1:The monitoring and evaluation system for the Program is operational.

Yes/no No No No Yes Yes Yes AnnuallyBiannual report


An M&E specialist has been hired in January 2017 to support the PMU refine and strengthen the M&E system

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 (Établissements 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.





The project advances sectoral reforms to the microfinance sector and supports the Government of Morocco’s (GoM) broader financial inclusion objectives. This in an effort to promote private sector led growth and development in Morocco. Since the last reporting period (July 2016), key activities completed include an institutional study supporting the modernization of the regulatory regime for microfinance, the advancement on a national financial inclusion strategy, procurement procedure advancement of global findex data, the development of digital financial education tools, and the organization of a large-scale (250+ attendance) regional financial education conference. The study on the regulatory regime for microfinance may feed into ongoing policy dialogue for policy lending operations.

Implementation delays, complex governance arrangements, and procurement challenges continue to slow down satisfactory implementation of the project. Implementation progress rating is maintained at moderately unsatisfactory although the achievement of the overall development objective is listed as moderately satisfactory. The team notes gradual improvements in the pace of implementation of key activities since January 2016 and congratulates the project implementation unit (PIU) in this respect. The current disbursement ratio

stands at $1.16 million (24%). Disbursement has passed from less than 10% of the total grant amount to more than 24% over the course of the past nine months. A procurement plan and work plan has been updated since the last supervision mission in late October 2016 and has been submitted to the World Bank for review. A fresh disbursement request is expected in January 2017. The team will consider upgrading implementation progress after the January 2017 mission and pending successful completion of agreed upon items below. Tools introduced to monitor project progress include a weekly supervision tool developed and sent out by the PIU to key project partners. The project has also prioritized and consolidated project activities to minimize administrative procedures and maximize overall project effectiveness.

The following supervision mission is scheduled from January 23-27 2016. An Implementation Status Report (ISR) will be submitted to the World Bank Country Director for review shortly after the mission.




Finalize 2017 work plan MEF

1/27/2017

Sign as soon as feasible with Gallup the contract to conduct a Findex study. Organize shortly thereafter a launch meeting with Gallup.

MEF 1/15/2017

Finalize terms of reference for the National Financial Inclusion Strategy (SNIF)

MEF/WB 1/20/2017

Examine primary conclusions from the institutional study on microfinance and integrate them, as appropriate, into the 2017 legislative program for 2017. Continue to ensure coordination with market actors (microfinance institutions, etc.) on institutional development of the sector.

MEF 3/15/2017

Financial Management: Submit Interim Financial Report for period ending December 2016

Submit action plan on 2015 audit report

2016 audit report

MEF/World Bank

2/15/2017

1/9/2017

30/6/2017

C. Implementation Status of Components 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. Annex four of the latest aide-memoire (October 2016) attached for reference provides a summary of key recommendations on the report. Other activities advanced under component one since June 2016 include:

Organization of a workshop with key market actors providing a synthesis of the institutional study on microfinance (July 2016)

Finalizing the recruitment of specialists in financial management and procurement

Priority activities under the 2017 work plan include: a) study on the interest rates and taxation in the microfinance sector; b) study on market potential of microcredit sector; and c) benchmarking exercise on transparency observed by Moroccan MFIs. The PIU will be asked to clarify the status of the following activities under component one:

Technical assistance activities to the Fédération Nationale des Associations de Microcrédits in upcoming supervision conference calls.

Planned study tour by MEF/BAM to Peru. Communication strategy of the FNAM

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. This includes promoting innovative common platforms and new products for MFIs. A sub-component also supports the development of common platforms, systems and products aimed at improving the efficiency and effectiveness of MFIs.



Cost (US$): (US$ 1.5 million)

Status of Implementation: Work has been successfully completed by the Centre Mohammed VI on developing e-learning financial education modules, in assistance with the company Ideo factory. The modules are targeted to unemployed and marginal youth as well as those who are financially exclude. Modules are now live and being used to train beneficiaries.

This component is financing analytical work to further improve market infrastructure for microfinance in Morocco. These include:

Study on the ‘commercialization of products for micro entrepreneurs’, which aim to help micro entrepreneurs to better market their products (finalized). The deliverable was validated at the November 2017 steering committee meeting.

Support for the information system surrounding the Moroccan Observatory for SMEs (in latter stage of procurement; included in 2017 work plan)

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:

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 been undertaken in emerging markets considered leaders in financial inclusion, including Peru and South Africa. Authorities are in the final stages of contract negotiations with Gallup for implementation of the Survey.

The project has advanced in a moderately 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 December 2015 and is now publically available. 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 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. The project is now finalizing the terms of reference for the development of a strategy. The World Bank has asked authorities to accelerate the development of the NFIS. 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.

Scaling up National Financial Capability/Education Initiatives:Financial capability and education initiatives under component three of the project are being scaled up, mainly through cooperation with the Moroccan National Foundation for Financial Education (MNFFE) under BAM. The project financed a large-scale (250+) conference on financial education that took place on October 20-21 2017. The event was organized by MEF and BAM in conjunction with the Arab Monetary Fund, the OECD, GIZ, and CGAP. The objective of the event was to promote policy development and share international best practices regarding financial education amongst Central Bank and key market players in the MENA region. It was the largest financial inclusion conference/policy platform/knowledge exchange in the region in the last two years. Technical takeaways and next steps are included in annex II of the project’s most recent aide memoire. A feature

story summarizing the conference can be seen here.

The component is also financing a study on the economic impact of microcredit to the Moroccan economy. Terms of reference for this activity are currently being developed by MEF.


(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 557,829 2,246,550 2,804,3792018 1,533,671 1,533,6712019


$358,273 $240,567 598,840

http://www.worldbank.org/en/events/2016/10/20/financial-education-in-the-arab-world


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 – Dec

2016)

Year 4 (Jan

2017 – 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

December 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

766 (as of

December 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%(Dec 16) 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 determi

ned

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

Yes 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 in

January 2017

F14,000

Semi-Annually

CM6; BAM

PMU (MoEF)

Modules (class room or interactive) that enhance knowledge and understanding of financial

BAM) supervision

mission; Best

current estimate is 4,500

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.





The project is making constant progress despite the delays in forming a new government following the October elections which affects the pace of some of the reforms supported by the project.

The project held its 3rd steering committee meeting on January 19th, 2017, which noted important progress on all three components. As of December 31st, 2016 the commitments increased to MAD 25 million or 78% of the initial budget and the direct expenditures reached MAD 13.2 million or 40% of the project’s budget. All project components are now on track and component 3- supporting fiscal decentralization has picked up significantly, achieving a commitment rate of 82%.

It is to be noted that the project initial budget of USD 4 million was budgeted in the 2014 budget at the then exchange rate of 1 USD for 8.4 MAD. The exchange rate is now at 1 USD for 10 MAD, representing a 19% increase in local currency. The initial budget order (arrete) would thus need to be revised and updated and the additional resources reprogrammed.



Expected Date of

DeliveryReorganize Project management MAGG done

Streamline payment procedures MAGG-Finance done

Adopt a streamlined Project implementation manual MAGG April 2017

Streamline the budgeting and implementation procedures of the twinning Project between the Moroccan and French MoF (component 2)

MAGG-Finance April 2017

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. Previous Rating: Moderately Satisfactory


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 new legal and regulatory framework for citizens’ petitions and legislative motions – supported by the project- has been respectively adopted by parliament and cabinet, thus consecrating the constitutions’ core citizen engagement policies. The project can now focus on implementation support of these policies, including through technical assistance, capacity building and an on-line platform for e-participation across the country.

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 public consultation policy has been adopted for regional, provincial and local governments. The national policy is still under preparation. 30 key public officials tasked with implementing the national policy have been trained. A training program for the local officials and civil society has been prepared and will be rolled out.

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. The development of the e-participation platform is under tendering.

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.With the new programmatic budget structure, the budget has been simplified with the number of appropriations down from 273 to 144.

The last component on the performance monitoring and evaluation policy has started with the support of a French and a Canadian high official and with a study tour to Canada. A manual has been issued on program evaluation. The project will now support the pilot testing of this evaluation policy. A website dedicated to the budget reform has been developed and posted on the MoF’s portal end of April 2016. It registered 38,000 visits by December 2016 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 capacity building of local officials is almost completed and it is about to start for SOEs. 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 have been prepared and approved by the Bank. The tender process will start in February, 2017.

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.

Previous Rating: Moderately Current Rating: Moderately Cost (US$): 768,800

Satisfactory SatisfactorySub-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: This activity has been completed and the diagnostic has been delivered to the client.

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 and the training has been completed for 60 trainers across the country. They are in the process to replicate the training within their structures. 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$) (x)Direct Cost for ISA-Execution (US$)

(y)Total (US$)


4,000,000 0 4,000,000


4,000,000 0 4,000,000

Actual Amount Disbursed (c): 1,325,000 0 1,325,000E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)

Year Jan-June Jul-Dec Total by Year End2013 0 0 02014 739,217 41,137 780,3542015 167,894 200,000 367,8942016 100,000 76,752 176,752*2017 490,000 602,000 1,092,0002018 500,000 671,752 857,540**

* the project advanced has been used primarily; **at initial USD-MAD exchange rate to be updatedF. Disbursements of Funds for Indirect Costs (US$)

Disbursed Available Total302,869 197,131 500,000


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

A

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

5 laws

(2 national and 3 subnational laws on public petitions and on legislative motions)

1 policy on e-participation.

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 PEFA38 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

New corresponding PEFA indicators are: nº8: B, n9: C, n15:

New corresponding PEFA indicators are:

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 has been

38 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

B, n30: B nº8: B, n9: C, n15: B, n30: B

completed and the new indicators corresponding to these areas are: PI 8 (performance information), PI 9 (public access to fiscal information); PI15 (budget strategy) and PI 30 (external control).

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 (PI 23) B+ B+ Once, by end of the project cycle



Data on PEFA framework generated by World Bank PEFA assessments

The new procurement indicator is PI 23


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)

2242 CSOs

2242 2242 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

NA 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 0 0 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 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

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

New corresponding PEFA indicators are: nº8: B, n9: C, n15: B, n30: B

New corresponding PEFA indicators are: nº8: B, n9: C, n15: B, n30: B

Once, by end of the project cycle

Morocco’s PEFA assessments


Data on PEFA framework generated by World Bank PEFA assessments in 2016.

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 submitted to Parliament

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 Partial 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)

60 (x% women)

80 (20%)

Annual MoI, local governments

MoI, local governments

Attendance sheets of trainings

Data is not gender disaggregated.

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 procurement indicator PI23

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.

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


Activity 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




Project Implementation Start Date:May 26, 2014 (date signature contract with International Trade Center, implementation partner).

Project Closing Date:June 30, 2017







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.


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 Regional Implementing Entity). The signing of the agreement was a prerequisite for the launch of activities in Morocco. The project was launched on January 14, 2015.

There was an initial delay in launching project activities. However the project team with e-commerce advisers made up for the delay and work has progressed smoothly to ensure the timely achievement of the main milestones.

Summary highlights:

Advisors: Training materials for e-commerce advisors developed and customized In 2015, two training workshops on “Virtual market places” for export advisors (EAs) were

delivered; 36 (EAs) were trained, of which 21 have passed the training test and were appointed in the framework of the project.

In 2016, two training on “CRM and sales reporting “were delivered by virtual market places: - The first training was delivered by ebay for the selected advisers and SMEs in November

2016. - The second training was delivered on 5 January by Tradekey. 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.

SMEs: More than 282 SMEs submitted their application to benefit from the VMP project. Among

them, 150 SMEs have been selected, and (80) have been assigned to the e-commerce advisors.

New SMEs continue to submit their applications to participate in the VMP program. An e-commerce workshop for SMEs was held in Casablanca on 27 January 2016.

• More than 500 products have been selected to benefit from the VMP. 10 SMEs participated in the ebay training organised in Casablanca on 21-22 November 2016 Overall, 40 SMEs have received direct training from VMP e-commerce advisers in 2016.

Business Environment: A detailed report on the e-commerce environment in Morocco, including recommendations

to boost the sector, completed and submitted to the Ministry. (6) Trade support institutions were trained on Virtual Market Places.

Virtual Market Places : Partnerships with eBay and Tradekey have been established. Discussions are progressing with Alibaba, Etsy and Amazon. Gold plus premium membership was granted (in Tarekey) to 14 SMEs in the agri-food,

cosmetics and handicraft sectors.

No major risks jeopardize the outlook. There is satisfactory level of engagement from our main partners.



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 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.


As a result of a meeting organized in April 2015 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 was completed and submitted to the Ministry for review in February 2016. Since then, several consultations have been held with the Ministry and other stakeholders. Comments and suggestions received from various institutions have been integrated to enhance the report. The final reporting including the findings and recommendations provided will be shared with the national level stakeholders in February 2017.

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


Sub-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. 21 e-commerce advisors are recruited by the VMP program to work with SMEs.

In November 2016, a 3 day e-bay training for advisers and SMEs was delivered. The training was delivered by e-bay staff on opening accounts and managing the e-store. In January 2017, Tradekey delivered an on-line training to the selected advisors and their assigned SMEs on CRM and sales reporting. 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

80 SMEs participated in an e-commerce workshop organised by ITC on 27 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 program activities and initial findings of the e-commerce environment study were presented.

Most importantly, participants could 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 program.

Ebay workshop for SMEs

10 SMEs participated in the ebay training organised on 21-22 November 2016. During the workshop organised for both the e-commerce advisers as well as the SMEs, ebay trainers took participants through a training covering key topics such as getting started on eBay, the Seller Dashboard and how to deal with complaints. The training included a dedicated practical session for SMEs at the end of the workshop where they took some time with the SME’s to open a professional seller account on eBay.fr and subscribe to a “boutique”.

Coaching SMEs

Throughout 2016, the 21 VMP e-commerce advisers have worked with more than 40 SMEs, coaching them on various aspects of selling online. This was completed at the end of the year with getting premium accounts for selected 14 SMEs. The work will continue in 2017 and expand to other SMEs interested in the project.

Continuous training of Export Advisers

The export advisers are continuously guided and coached when necessary by ITC technical advisers and national program coordinator. New training programs 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 program. The manuals give practical information and guidelines on subjects such as:

- E-commerce engineering- Contents management- Export logistics- Payment solutions- Customer relationship management

These guides have been compiled and shared with the e-commerce advisers on a single online platform. The guides will continue to be enhanced and improved based on the needs of the advisers and the SMEs with more specificity at the country level.

Specific guides and trainings with platforms such as ebay and Trade Key have also been shared with the advisers.

Institutional capacity building

The VMP program 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 6 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 program’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 program

The VMP program has enjoyed high level interest both at the institutional as well as the private sector level. Implementation of the program has been very timely with current trends and changes in the e-commerce environment in Morocco. The program strives to align its activities with national

interests and initiatives taken to enhance the sector.

The program currently reaches out to : 150 SMEs participating in the program More than 500 products benefitting from the project 21 Export Advisers trained and actively supporting the SMEs 15 inter-institutional committee members to enhance the national e-commerce

environment 6 Institutions benefiting from direct institutional capacity building 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.

More than 282 SMEs submitted their application to benefit from the VMP project. Among them, 150 SMEs have been selected, and (80) have been assigned to the e-commerce advisors;

In 2016, 40 SMEs were directly supported by VMP e-commerce advisers; 14 selected SMEs have been given premium accounts on Trade Key.



Sub-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.

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

ITC has developed a partnership with eBay on July 2016. This will support SMEs participating in the VMP project to access eBay premium accounts for free and increase their visibility on the international platform. Ebay will make available their so-called ‘anchor stores’ for enterprises supported by ITC, an enhanced vendor account which provides greater online visibility for these companies’ offerings and the opportunity to reach more clients. SMEs participating in the program will gain access to eBay’s network of fulfilment centres, opening up for more cost-effective logistics operations. The companies will be given the opportunity to benefit from eBay’s

cutting-edge e-commerce research, allowing them to leverage this knowledge and better position their offerings in selected target markets.

ITC has signed a contract with Tradekey. This VMP is a B2B platform that connects traders with global whole sellers, buyers, importers & exporters, manufacturers and distributors with a special focus on Asia and the Middle East, markets that are of interest to our selected companies. The project has registered 14 new SME on Tradekey in December 2016.

Other VMP requests such as Alibaba, Etsy, and Amazon are submitted to procurement to negotiate premium membership group rates.

We estimate that a total of 70 of our best SMEs will benefit from funded premium memberships.

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

This component will be implemented at a later stage of the project, particularly Tradekey and eBay registered SME will be transacting soon and these VMPs will provide central and automated analytical reports and comparison. Ebay has already shared some market intelligence with ITC eSolutions and VMP team.

Sub-component 3.3: Certification

To benefit from the VMPs data (market trends, number of visitors, keywords searches, etc.) and allow SMEs and the national Trade promotion organization (Maroc Export) to access relevant information, ITC is developing a trade intelligence system. To this end an international intelligence expert was hired in July to help to better track information and alert SMEs about key intelligence topics (e.g. markets, opportunities, competitors, trends, risk). The tracking will be made on the VMPs and also on relevant sources of information that correspond to the selected sectors.

The expert will conduct a mission in January 2017 in order to finalize the feasibility study to setup the E-commerce Observatory. The setting up of the observatory, the training on managing and disseminating information related to e-commerce development will expected to take place during Q1 2017.


Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 90,000Sub-component 4.1: Project Management

This component finances the PIUs at country level.

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.


Status of Implementation: The component will be implemented at the end of the project.

D. Disbursements of Transition Fund Funds for Direct Project ActivitiesCountry-

Execution (US$)(x)


(y)

Total (US$)


975,000 975,000


975,000 975,000



Year Jan-June Jul-Dec Total by Year End2014 94,169 94,1692015 188,337 94,169 282,5062016 282,506 0 282,5062017 315,820 315,820Total 786,023 188,338 975,000






Collection

Description (Indicator Definition, etc)

2015A

2016A

2017F


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

registeredValue 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 Yes Yes Bi-annual Reporting by the Oversight


Trade

PIU - ITC Roadmap document endorsed by the OC

Indicator 3. SMEs registered in VMPs Number

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




Collection


2015A

2016A

2017F

Workshops conducted Number 0 2 4 7 Bi-annual Reporting PIU-ITC

PIU-ITC Output Delivered – Workshop report

Analytical Work delivered on key e-commerce topics

Number 0 0 1 4 Bi-annual Reporting PIU – ITC

PIU-ITC Output delivered – Workshop Report


Indicators by Component Unit Baseline Cumulative Target Values Frequency Data Source/ Responsibility for Data


Methodology Collection2015A

2016A

2017A

Export Advisors Trained Number 0 36 36 36 Bi-annual Reporting PIU-ITC

PIU/ITC Captures number of EAs trained on VMPs

Export Advisors Certified Percent 0 0 70% 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.



Collection


2015A

2016A

2017F

Training program for TSIs delivered (# activities)

Number 0 2 2 5 Quarterly M&E Database PIU-ITC # Training sessionsReport disseminated and workshops evaluations# Number of advisory services provided#SMEs satisfaction with TSIs service delivery




Collection


2015A

2016A

2017F

Collaborative partnerships with VMPs Number

0 0 4 8 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 1 4 Quarterly PIU and RIA PIU and EA # product (newsletter)

delivery by TSI main partner



Collection


2015A

2016A

2017A

Premium Accounts awarded – Certifications Number

0 0 0 50 Quarterly Project Implementation

ReportsM&E Database

and VMPs

ITC/PIU Trust label certificates

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: Ana Paula Fialho Lopes


Recipient 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.


Project 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





From May 2015 until December 2016, the project was rated MU (DO and IP) due to delays in rolling out key project activities and to weak fiduciary management. In particular, an INT investigation uncovered fraudulent practices in three purchase orders, for a total amount of approximately US$41,000, which were declared ineligible expenditures. Those expenditures were reimbursed by the government in early January 2017.



The project is now rated MS for both DO and IP. The latest supervision mission carried out in October 2016, with follow up meetings in December 2016, found that all project activities are under implementation or on track to be implemented and that the PDO is likely to be achieved by the end of the project. Overall, 11,024 youth, of which 47% are young women, already participated in the selection bootcamps out of a total target of 10,000. Regarding phase 2, 7,520 young beneficiaries have been taking part in the entrepreneurship training, and 4,387 youth completed the training, i.e. 97.5 % of the total target of 4,500 beneficiaries. With reference to third phase, 663 youth micro-entrepreneurs have prepared their business plan and 467 have created their company and recently started receiving post-creation support. Despite efforts made to advance with the implementation of the post-creation support, several challenges related primarily to the legal registration of business activities created led to delays in this phase.

Regarding PDO level indicators, the mission found positive results have been achieved with reference to two out of the three PDO indicators, i.e. direct project beneficiaries who are taking part to the entrepreneurship training and direct project beneficiaries who successfully completed the entrepreneurship training. However, despite efforts made in advancing project implementation, the project has accumulated delays from its onset, including changes in the requirements for the legal registration of business activities (outside project control) which have impacted the post-creation support phase. These delays will not be absorbed in the project life, hence the target of the third PDO indicator – 1,800 youth micro-entrepreneurs who receive post-creation follow-up support for at least 12 months - is not likely to be achieved. As such, a level 2 restructuring of the project will be processed to adjust the target of the third PDO indicator.

Regarding project management, the PIU is fully staffed, including the Financial Management consultant recently selected and trained by the Bank fiduciary team. Moreover, the respective roles of the PIU, the Directorates of Budget and Youth within the Ministry were clarified in the POM, in particular with regard to procurement, approval and signature of contracts. An updated version of the POM was finalized, and the Bank Non objection was provided and filed in WBDocs.

At the institutional level, 201 institutional representatives were trained of the total target of 250. The project supported the creation of two entities, namely the National Advisory Council (NAC) and the Provincial Advisory Committees (PAC). The NAC met twice in 2016 as foreseen by its constitutive document, and more than 60 PACs are operating at the provincial level, with some more active and innovative, while others still at their early stage of development.

Regarding the M&E framework, an innovative M&E platform (intilakajadida.org) was developed and is proving to be useful in tracking project results and identifying bottlenecks. A Grievances Redress Mechanism is available and accessible through the website. With reference to the Impact Evaluation, the criteria defined by the randomization methodology could not be met, and the Bank reached an agreement with the client, consisting in the adoption of a different methodology to carry out the evaluation. The evaluation will be focused on results achieved, and is scheduled to be completed by the end of 2017; the new methodology will be based on focus group discussions with beneficiaries.

The data collection for the Impact Evaluation baseline survey was completed and the final draft of the baseline report is now under review. The preliminary analysis of the impact evaluation baseline sample at

50% survey completion rate showed that participants are highly satisfied with the project and over 85% rate the micro-entrepreneurship training as useful or very useful. It further showed 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 (bootcamps), prior to randomization. When disaggregating the results by gender the preliminary analysis showed that satisfaction remains high across genders with a slightly higher satisfaction among female participants. It further showed 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.

With specific reference to FM, the PIU informed the Mission that the Action Plan addressing the IGF report was prepared with support provided by the Bank fiduciary team, and that all corrective measures have been taken by the PIU.



Expected Date of

DeliveryThe PMU will clarify to the Bank team the possibility to extend the contracts of the AMs, which extension would pave the way for the implementation of post-creation support activities

PMU 1/31/2017

The PMU will submit to the Bank a budget plan including all details on how to use available resources and an updated PPM

PMU 1/31/2017

The PMU will inform concerned stakeholders of the changes in the evaluation methodology

PMU 1/31/2017

Integrity Training for PMU staff, Ministry of Youth and Sports and Inspection Générale des Finances (IGF) staff

WB 2/28/2017

The Bank will carry out a post procurement review of a sample of the project contracts

WB 1/31/2017

C. Implementation Status of Components Component 1: Component 1 : Integrated Micro-entrepreneurship Support for Disadvantaged Youth in the Project AreasThis component provides a menu of non-financial support services to 5,000 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.

All key implementation agencies, i.e. the consulting firm and 14 civil society associations, are carrying out their activities even though stark differences in performance have been observed across associations. 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 (boot camps) of ca. 10,000 youth has started. Previous Rating: Moderately Satisfactory


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: The latest supervision mission found that positive results have been achieved with reference to two of the three PDO indicators, i.e. direct project beneficiaries who are taking part to the entrepreneurship training and direct project beneficiaries who successfully completed the entrepreneurship training. However, despite efforts made in advancing project implementation, the project has accumulated delays from its onset, including changes in the requirements for the legal registration of business activities, which impacted the post-creation support phase. These delays will not be absorbed in the project life, hence the target of the third PDO indicator – 1,800 youth micro-entrepreneurs who receive post-creation follow-up support for at least 12 months - is not likely to be achieved before project closure. As such, a level 2 restructuring of the project will be processed to adjust the target of the third PDO indicator.

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 5,000 youth of which 4,500 are expected to complete the training; and (iii) mentoring and post-creation support for ca. 1,800 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. Moreover, 7,520 young beneficiaries have been taking part to the entrepreneurship training, and 4,387 youth completed the training, i.e. 97.5% of the total target of 4500 beneficiaries.Sub-component 1.3: Post-creation business development support:A sub-set of 1,800 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: Overall, 663 youth have prepared a business plan and 467 micro-entrepreneurs have created their company and recently started receiving post-creation support. Despite efforts made to advance with the implementation of the post-creation support, several challenges, mainly related to the legal registration of business activities created, led to delays in this phase. As mentioned above, these delays will not be absorbed in the project life, hence the target of the third PDO indicator - 1800 youth micro-entrepreneurs who receive post-creation follow-up support for at least 12 months - is not likely to be achieved before project closure. As such, a level 2 restructuring of the project will be processed to adjust the target of the third PDO indicator.

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 251 youth professionals as of December 2016.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 began in June 2014 and included a series of M&E training workshop for the PMU with training events in September 2014, January 2015, and May 2015. The PMU has developed strong capacity for project monitoring and is submitting high quality progress reports on a timely basis. An innovative M&E platform (intilakajadida.org) was developed and is available on line, and is proving to be useful in tracking project results and identifying bottlenecks.

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: The PMU is fully staffed, including the Financial Management consultant recently selected and trained by the Bank fiduciary team. Moreover, the respective roles of the PMU, the Directorates of Budget and Youth within the Ministry were clarified in the POM, in particular with regard to procurement, approval and signature of contracts. An updated version of the POM was finalized, and Bank NO provided and filed in WBDocs.

With specific reference to Financial Management, an INT investigation uncovered fraudulent practices in three purchase orders, for a total amount of approximately US$41,000. These INT findings have been shared with the Government that has already processed the reimbursement of all ineligible expenses. Furthermore, the PMU informed the Mission that the Action Plan addressing the IGF report was prepared with support provided by the Bank fiduciary team, and that all corrective fiduciary measures have been taken by the PMU.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 PMU is submitting very regular and high-quality progress reports. On the Impact Evaluation, the criteria defined by the randomization methodology could not be met, and the Bank reached an agreement with the client, consisting in the adoption of a different methodology to carry out the evaluation. The evaluation will be focused on results achieved, and is scheduled to be completed by the end of 2017; the new methodology will be based on focus group discussions with beneficiaries.


(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




Project Development Objective (PDO): 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 POM.


Unit of Measure

Baseline

Actuals

Cumulative

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

A

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 7520 5000

QuarterlyMonitorin

g toolImplementing

Agency

Defined as those who attend entrepreneurship trainingFemale

percent0% - - 50.4% 50% 40%

Indicator Two: Direct project beneficiaries of which female (percent), who successfully complete entrepreneurship training

Number 0 0 0 2522 4387 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% 43% 40%

Indicator Three:Youth micro-entrepreneurs

Number 0 0 0 0 0 To be redefined

Quarterly Monitorin Implementing 40% of the certified

who receive post-creation follow-up support for at least 12 months (number), of which female (percentage).

g tool Agency

youth are expected to receive follow-up support

Female Percent 0% - - - -

40%


Intermediate 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 11024 11024 10000 Quarterl

yMonitorin

g Tool


Participation in BootcampPercentage

(female)0% - 47.8% 47% 47% 40%

Direct project beneficiaries (number) of which female (percent), who complete a business plan

Number (total)

0 0 0 250 663 4500

Quarterly

Monitoring Tool


Business Plan

viability will be assessed (target: 90%

of total)

Percentage (female)

0% - - 36% 43% 40%

Participants who rate the quality of the training package as useful and very useful

Percentage 0% - - 85% 84% 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

Number 0 221 204 251 200 Quarterl

yMonitorin

g Tool


female (%)Percentage (female)

0% - 33.9% 41% 42% 50%

Public officials at the central and local level trained by the program

Number 0 0 176 201 201 250Quarterl

yParticipation sheets

Regional

coordinators

incl. Staff of 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 1210

(Dec ISR)

16

ISR End Target is 12

Quarterly

Project records

PMU

Impact Evaluation carried out Yes/NoBaseline survey

Evaluation and survey design

Baseline survey schedul

es; question

naire tested

Baseline survey

ongoing; Follow-

up Tracking

Baseline data collection completed/ Baseline report final draft under review

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 has been selected 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. The comité de pilotage

structure and role has been validated by an internal decision by the President of Parliament and the Bureau. Given the parliamentary elections in October 2016, team building exercises have been delayed until the new nomination of the Speaker of the House and the heads of the thematic commissions. The nomination has just been approved in January 2017 and activities will resume in February 2017.. 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, 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 was completed and a local university was awarded this contract as a result of a competitive international recruitment process. The University will work closely with the Parliament team and the Bank team to develop the training modules for a formal launch of trainings to take place in March 2017. Furthermore, the Bank has been requested to extend its support to the Upper Chamber, the Chambre des Conseillers, in the same training areas provided for the Lower House. This request has been approved by the House of Representatives and will not change the overall budget allocated to these activities. This expanded scope will help to ensure that the Parliament as a whole benefits from targeted support on these important reforms and that there is complementarity and coordination among the two Chambers that well be dealing with the same issues such as petitions.


Development of training modules and selection of participants Firm/Recipient entity, ISA

2/28/2017

Identification and recruitment of petitions trainers through institute

ISA/Recipient entity

3/31/2017

Technical assistance support on internal regulations of parliament on petitions

ISA/Recipient entity

3/31/2017

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

http://www.chambredesrepresentants.ma/banquemondiale/

technical assistance on the bylaws will continue until May 2017 .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 has recently been completed and we hope to have the institute on board by February 2017.

Component 2: Parliamentary Budget Oversight 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 mobilized. Training modules in this area were developed in addition to a background reference document that was distributed to new MPs after parliamentary elections in October on the scope of the reform and the subsequent role of parliament. Training will recommence in March 2017 given the recent nomination of the new President and the heads of the parliamentary committees in January 2017. 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. The parliament has requested a regional knowledge exchange seminar to take place in Morocco in March 2017 and preparations are underway.


(US$)

(x)


(y)

Total (US$)


3,500,000 3,500,000


3,500,000 3,500,000


77,688.64 77,688.64

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 Total45,715.08 410,284.92 456,000


Fund Level Results Indicators* Unit of Measure Baseline




Collection


etc.)Jan-Dec 2016A

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

A Not yet applicable

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%

A 90

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%

A 40

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

A Not yet finalized

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)

A Petitions process not yet in place

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)

A ATI system not yet in place

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)

A 40% (15% female)

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

A Not yet completed

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

A In progress

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)

A 47% (20% female)

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)

Annual Qualitative surveys conducted through the project

WB and client Evaluation of the awareness of ATI procedure by citizens in line with new right to information legislation

Intermediate Result Citizen N/A 45% of 65% of 75% of Annual Qualitative WB and client Assessment of

indicator Two: Improved citizen satisfaction with Parliament-CSO relations

satisfaction with Parliament-CSO relations increased through beneficiary feedback mechanism

respondents express positive attitude towards exchanges between Parliament and CSOs (disaggregated by gender)

A Not yet applicable

respondents express positive attitude towards exchanges between Parliament and CSOs (disaggregated by gender)

participants express positive attitude towards exchanges between Parliament and CSOs (disaggregated by gender)

surveys conducted through the project

parliamentary – CSO engagement mechanisms and their effectiveness


Youth in Public Life: Open & Inclusive Youth Engagement – Morocco ActivitiesN. 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: Andreas Schaal/Miriam Allam


Recipient Entity: Ministry of Youth and Sports Name and Email of Recipient Entity Contact: Mr. Abdellatif Ait Laamiri, Secretary General, Ministry of Youth and Sports, [email protected]


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



5/30/2016


1/9/2016


8/31/2019




O. 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 OECD member countries’ experience as well as good practices and lessons learned from Tunisia and Jordan that are part of this regional project.


Satisfactory



Following the Project’s approval by the Steering committee in May 2016, the OECD developed an implementation plan and timeline for Morocco which was discussed with Moroccan focal points during a coordination meeting held at the OECD in Paris on 15 September 2016. Jordanian and Tunisian counterparts also participated in the meeting which helped define the implementation mechanisms and plan as well as the Project timeline, and served to discuss key logistical and technical questions about the Project. OECD Deputy Chief of Staff, Mr. Juan Yermo opened the meeting.




In the framework of the 2016 MENA-OECD Ministerial Conference, held on 3-4 October 2016 in Tunis, more than 500 participants from 14 MENA countries and 22 OECD member countries learned about the regional youth project. A session was held on 3 October for high-level representatives from Jordan, Morocco and Tunisia and representatives from the European Youth Forum and the youth-led association “Leaders of tomorrow” from Jordan to discuss effective mechanisms to engage youth in the policy-making process. Participants called upon the OECD to launch a Youth Day to highlight and share good practices of partnership between government and youth. Finally, a bilateral meeting was held between the OECD Secretary General and the Secretary General of the Ministry of Youth in Jordan, the Minister of Youth and Sports in Tunisia and Mr. Yacine Bellarab, Director of Cooperation, Communication and Legal Studies from Ministry of Youth and Sports in Morocco. It underlined the high priority that the Organization gives to youth engagement and emphasized the urgency to give young people a greater voice in public life.

On 24 and 25 October, the OECD participated in the Anna Lindh Foundation’s Mediterranean Forum 2016 held in Valletta, Malta. With over 900 participants, the Forum is the largest civil society gathering for intercultural dialogue across the Mediterranean region. The OECD’s participation in the event through panel interventions and other interactions helped to underline the importance of the specific issue of youth engagement in public life to counter forces fueling polarisation and extremism, the latter being the topic of the Forum. The OECD’s participation in this event also helped to push the youth engagement agenda forward among participants, in terms of stressing the importance of not only looking at capacity building activities for youth and opportunities for dialogue, but to also to think of the public governance of youth issues.

The OECD held a mission to Rabat on 27-29 November to prepare for the launching of the Project and to meet with key governmental and non-governmental stakeholders and secure their commitment and engagement with the Project. The mission also set the basis for the upcoming fact-finding mission in view of the preparation of the mapping of Morocco’s public governance framework to implement the Integrated National Youth Strategy 2015-30. A representative from France’s Ministry of the City, Youth and Sports, Mr. Morgan Jacquemin, Deputy of the office on youth policies also joined the mission. His input during the discussions including on good practices and lessons learned from France were greatly appreciated and informed the identification of priority areas to be included in the mapping and during the upcoming activities to be organized. The OECD also met with key international organizations working on youth related issues such as the UNDP, UNICEF, UNFPA to ensure coordination and explore related synergies. The OECD also met with donors to discuss their support to youth engagement in public life in Morocco and ensure coordination.

In the past few months, the OECD also secured the commitment of several OECD countries to support the Project as peers and/or experts including France, Canada, Slovenia, Italy and Ireland. Communication is ongoing with other OECD interested countries as well. The OECD has also reached out to renown international NGOs (such as Youth Policy) and the European Youth Forum.

To ensure the political commitment and follow-up needed for the success of the Project, it was agreed with the Moroccan stakeholders that the first activity, ie the Project’s launching conference would be held when the new Government is in place. Indeed, following the legislative elections held on 7 October, the Prime-Minister designate has since been conducting negotiations to form a Government. There have been some delays in the formation of the Government as negotiations between parties are still ongoing. However, the preparatory work is ongoing in order to ensure that we can launch the project as soon as the new Government is on board, and the research and related actions regarding the mapping are also underway.

http://www.annalindhfoundation.org/about-med-forum-2016

http://www.annalindhfoundation.org/about-med-forum-2016



Questionnaire to be sent out to stakeholders Project Working Group

Early 2017

Organization of the project’s launching conference Project Working Group

Early 2017 (TBC, depending on the formation of the new government)

P. Implementation Status of Components

Component 1: Supporting the implementation of the National Youth Strategy 2015-30 across the different levels of government. Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): $ 507 879Sub-component 1.1: Strategic mapping of Morocco’s public governance framework to implement the Integrated National Youth Strategy 2015-30;

Status of Implementation: Initial discussions conducted with key governmental and non-governmental stakeholders during the mission held on 27-29 November and ongoing research is being conducted. In addition an initial draft analytical framework for the mapping and the questionnaire to be distributed to key stakeholders in Morocco and that would feed into the mapping was developed. Sub-component 1.2: Capacity building activities to promote an integrated and coherent youth strategy

Status of Implementation: Launching conference to take place upon the formation of the new Government. As for the second capacity building activity, the date and exact topic of the activity will be agreed upon with the Project Working Group in due course.Sub-component 1.3: Regional conference for MENA countries (in particular MOR, TUN, JOR) on the formulation and implementation of national youth strategies

Status of Implementation: The first regional conference is expected to take place before September 2017 and will focus on the progress achieved by all three countries in developing and implementing national youth strategies and on the key components that are required to ensure the success of these endeavors such as coordination, communication and monitoring and evaluation.

Component 2: Strengthening the institutional and legal framework for youth engagement and representation in public life. Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 321,601Sub-component 2.1: Capacity building activities to support the effective implementation of youth councils at the different levels of government

Status of Implementation: The date and exact topic of the activities will be agreed upon with the Project Working Group in due course.Sub-component 2.2: 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: The second regional conference is expected to take place before September 2018

(tbc). The exact topics the Conference will cover will be identified by the Project Working Group.

Component 3: Fostering a more systematic and inclusive dialogue between public officials and youth associations on public governance reforms.Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): $ 379,250Sub-component 3.1: Capacity building activities to disseminate innovative tools, mechanisms and channels for youth engagement

Status of Implementation: The date and exact topic of the activities will be agreed upon with the Project Working Group in due course. Sub-component 3.2: Good practice guide to engage youth through innovative forms of participation in policy-making and public governance

Status of Implementation: Initial research and compiling of good practices for the guide is underway based on communication with peers from OECD countries as well as the participation of peers from Belgium, France, Jordan, Germany, Slovenia and Tunisia in the launching conferences that were held in Jordan and Tunisia end of 2016.Sub-component 3.3: Regional dialogue on innovative forms of youth engagement in policy-making and public governance

Status of Implementation: The third regional conference is expected to take place before September 2019 (tbc). The exact topics the Conference will cover will be identified by the Project Working Group.



(x)


(y)

Total (US$)


1,208,730 USD 1,208,730 USD


0 USD 0 USD



Year Jan-June Jul-Dec Total by Year End2017 200,000 USD 200,000 USD 400,000 USD2018 200,000 USD 200,000 USD 400,000 USD2019 200,000 USD 171,539 USD 371,539 USD


Disbursed (US$) Available (US$) Total (US$)81,270 USD 0 USD 81,270 USD

H. Results Framework and Monitoring

Project Development Objective (PDO): Support Morocco in building stronger mechanisms for youth engagement and mainstreaming their considerations in public


MeasureBaseline




Collection

Description (indicator definition etc.)Aug

2017F

Aug 201

8F

Aug 201

9F

YR 4F

YR5F

Indicator One: Number of Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Nr. of reports 0 0 1 2 / / Annually Progress ReportProject


This will include one OECD Review and one good practice guide.

Indicator Two: Number of CSOs, women or youth groups engaged and empowered by the local government

Quantitative 0 0 2 4 / / Annually Progress Report PIT


Indicator Three: Number of national institutions, regions, municipalities and youth associations mobilized in youth engagement in public life.


National and local institutions encouraging youth engagement in public life participating in project activities.

Indicator Four: Public sector staff trained in engaging youth in public life Quantitative 0 40 80 100 / / Annually Progress Report PIT


Indicator Five: Improved enabling environment and government capacity to implement the Integrated National Youth Strategy



Indicator Six: Specific / special stakeholder groups engaged in the elaboration, implementation and monitoring of youth policies


Number of initiatives undertaken by central and local authorities to promote the systematic engagement of youth in relevant policies


Intermediate Result (Component One): Supporting the implementation of the National Youth Strategy 2015-30 across different levels of government

Intermediate Result indicator One: Number of reviews completed and endorsed Quantitative 0 1 1 1 / / Annually Progress Report PIT

OECD Review of Morocco’s Public Governance Framework to implement the Integrated National Youth Strategy 2015-30

Intermediate Result indicator Two: Number of capacity-building seminars


Two capacity building seminars to promote a whole-of-government approach to the implementation of the Integrated National Youth Strategy 2015-30

Intermediate Result indicator Three: Number of regional conferences

Nr. of conferences 0 1 1 1 / / Annually Progress Report PIT

1 regional conference with high-level youth stakeholders from Morocco, Tunisia, and Jordan and the MENA region to exchange on the progress made in formulating and implementing their respective national strategies

Intermediate Result (Component Two): Strengthening the institutional and legal framework for youth engagement and representation in public life

Intermediate Result indicator One:Number of capacity-building seminars

Quantitative 0 1 2 2

/ /

Annually Progress Report PIT Two capacity-building seminars

Intermediate Result indicator Two:Number of regional conferences

Nr. of conferences 0 0 1 1

/ /

Annually Progress Report PIT

1 regional conference with high-level youth stakeholders from Morocco, Tunisia, and Jordan and the MENA region to exchange on the progress made in formulating and implementing their respective national strategies

Intermediate Result (Component Three): Fostering a more systematic and inclusive dialogue between public officials and youth associations

Intermediate Result indicator One:Number of capacity-building seminars

Quantitative 0 0 1 2/ /

Annually Progress Report PIT Two capacity-building seminars

Intermediate Result indicator Two:Number of guides produced and endorsed

Nr of guide 0 0 0 1 / / Annually Progress Report 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

Intermediate Result indicator Three: Regional dialogue on innovative forms of youth engagement

Nr of events 0 0 0 1

/ /

Annually Progress Report PIT

1 regional conference with youth stakeholders from the MENA region (in particular MOR, TUN, JOR) 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 system (e-archiving) (prepare ToR, Non-objection of the Bank,

HAICOP and AfDB

10/3/2016



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



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


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 Ben Dickinson Head of Tax and Development OECD Martine Milliet-Einbinder, Senior advisor, Centre for Tax Policy and Administration

Email of ISA Project Leader: AfDB [email protected]@afdb.orgOECD [email protected]. [email protected] [email protected]

Recipient Entity: The Tunisian Ministry of Finance (MoF)

Name and Email of Recipient Entity Contacts:Madame Sihem Boughdiri Nemsia Director General of the DGELF (as of March 2016) [email protected]; [email protected]: +216 71 783 786Mr Ridah Ben Ahmed Director General of Taxes (April –November 2016)[email protected] Sami Zoubeidi Director General of Taxes DGI (as of November 2016)+21671894033 (Ph.); +21671796938 (Fax)[email protected]

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: 955,282 USD (direct)OECD: 91,848 (indirect)

Steering Committee Approval Date: 5 December 2013


Project Closing Date: 30/06/2018 date extended from 31/12/2016 to 30/06/2018 at the request of the GoT



Inclusive Development and Job CreationCompetitiveness and IntegrationInvesting in Sustainable Growth

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project aims at assisting the government of Tunisia (GoT) to mobilise domestic resources to foster sustainable

438








economic growth and income redistribution by improving the design of taxation policies and improving transparency and international cooperation.


Satisfactory

Rating for overall implementation progress: Satisfactory Brief Summary of Project Implementation StatusThe implementation of the project has continued progressing well on its key components. Major benefits from the technical assistance provided by the OECD and the Global Forum on Transparency and Exchange of Information (GFTEI) have been the adoption in the Finance Bill for 2016, of the full lifting of bank secrecy to respond to requests for bank information 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. In March 2016, the GFTEI approved the Phase I Peer review report of Tunisia which looked at the legal and regulatory framework for EOI on request . The Phase 1 report is available at http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-peer-reviews-tunisia-2016_9789264250697-en#page1 The extension of the programme from December 2016 to June 2018 will greatly assist Tunisia to be ready for the Phase 2 review which is scheduled for the second half of 2018.

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 continued to take an active part in the G20/OECD work on BEPS and hosted the first Regional meeting of the BEPS Inclusive framework of Francophone countries co-organised in Tunis in November by the OECD and CREDAF (the tax organisation of francophone countries) http://www.oecd.org/tax/beps/oecd-holds-regional-meeting-of-the-inclusive-framework-on-beps-for-francophone-countries.htm 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. In 2016 two new General Directors were appointed: in March Mme Sihem Boughdiri Nemsia who replaced Mme Louati at the head of the Fiscal Legislation Directorate (DGELF) and in April Mr Ridah Ben Ahmed who replaced Mr Riadh Karoui at the head of the Tax Directorate (DGI). Following the change of government he was himself replaced in November 2016 by Mr Sami Zoubeidi who provided his priorities for 2017.

From the beginning of the programme, the OECD has established regular contacts with the other donors: IMF, the IFC, the EU , France 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 Progress has been achieved through AfDB intervention on capacity building :(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 which was approved by the MENA TF Steering Committee. (ii) The consultant for the Establishment of the Exchange of Information Unit was hired and has produced three reports

439

http://www.oecd.org/tax/beps/oecd-holds-regional-meeting-of-the-inclusive-framework-on-beps-for-francophone-countries.htm

http://www.oecd.org/tax/beps/oecd-holds-regional-meeting-of-the-inclusive-framework-on-beps-for-francophone-countries.htm

http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-peer-reviews-tunisia-2016_9789264250697-en

http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/global-forum-on-transparency-and-exchange-of-information-for-tax-purposes-peer-reviews-tunisia-2016_9789264250697-en

and will soon complete her work. The second Expressions of Interest for the remaining consultants services (Establishment of the Tax Fraud Unit, Establishment of a risk management strategy and the conception of the communication strategy) were unsuccessful as the individual consultants who responded to the advertisements were not found qualified 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.

OECD : Much has been accomplished despite the changes at the head of the DGI and DGELFComponent 1: Tunisia benefitted from technical assistance to improve transparency. As a result, a legislative amendment was adopted in the Finance Bill for 2016, allowing access to bank information without limitations for exchange of information on request for tax purposes. With this change, Tunisia complies with the international standard on EOIR concerning banking information. The GFTEI completed the review of the legislative and regulatory framework of Tunisia for EOIR and approved the Phase I Peer Review Report on 14 March 2016. The OECD is continuing to provide assistance working closely with the consultant hired by the GoT to improve the efficiency of EOI in Tunisia. Tunisian Tax officials have now started to use EOI during tax audits to obtain information.

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 completed a BEPS diagnostic of Tunisia and delivered 4 capacity building workshops based on the Action Plan designed with Tunisia (including one in April 2016 and one in December transfer pricing and intangibles and intra group financing, combined with a case study to raise the awareness of tax auditors on exchange of information). 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. Moreover assistance in the implementation of the BEPS toolkits relevant to Tunisia and designed to address BEPS issues will be provided as they become available. Tunisia has also been offered to benefit from the joint OECD/UNDP Tax Inspectors without borders (TIWB) initiative http://www.tiwb.org/get-involved/Experts/, which provides hands-on assistance in tax audits to developing countries.

Component 3: Tax policy analysis and planning: The OECD has delivered 4 models to the Fiscal Analysis Unit together with training : 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. It is awaiting feedback from Tunisia to finalise the proposal. As a result of the technical assistance provided under the programme, Tunisia was able to produce revenue statistics according to the methodology used by the OECD and other countries across Africa, Asia and Latin America. 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. Tunisia participated in the first edition of Revenue Statistics in Africa and will also participate in the 2017 edition expanded to a larger number of African countries.

Component 4: Tax Administration Reform, Managing and Improving Tax Compliance The Finance Bill for 2017 established a Tax Police and the OECD will provide targeted capacity building to this new Department with the involvement of the five senior tax officials who have benefitted from the training at the OECD International Academy on criminal tax investigations.

440

http://www.tiwb.org/get-involved/Experts/

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. This impacts particularly activities, 3.1, and 4.3. In addition having two new Director General of Taxes in 2016 has delayed the delivery of some training events in the second half of 2016.

The closing date of the project has been postponed from 31 December 2016 to 30 June 2018 at the request of the GoT

The extension of the project closing date will allow the completion of the planned activities and the achievement of the project’s development objectives. The project experienced starting delays due to the late signing of the grant agreement between AfDB and the GoT and launch of the project 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)/Tax Police, assist in the design of risk management strategy and for the elaboration of the communication strategy. nb: The MENA TF Steering Committee raised no objection to the request for an extension of the project’s closing date to 30 June 2018 submitted on behalf of both co-ISAs, by the AfDB on 17 June 2016.

Actions to be Taken in 2017 Responsible Party expected date of Delivery 2017

Participation to the meeting of the BEPS inclusive framework

Tunisia 26-27 January

Technical assistance in the drafting of legislation and regulations on transfer pricing based on the Action plan agreed with Tunisia

OECD Q1-Q2

Selection of consultants for the UNILEF, for risk analysis and for the conception of the communication strategy

Tunisia date TBD by the GoT

Discussion with the DGELF to finalise the proposed model for the reform of Tunisia’s VAT Code seminar in Tunis

OECD /Tunisia date TBD

Participation to the training at the OECD International Academy on conducting financial investigations

Tunisia 20-31 March

Participation at the Global Forum on VAT in Paris OECD Tunisia 12 – 14 April Tunisia’s participation at the Task Force on Tax and Crime in Paris OECD

Tunisia 20-21 April

Participation to the training at the OECD International Academy on Managing Financial Investigations

Tunisia 11-29 September

Participation to the training at the OECD International Academy on VAT fraud

16-20 October

Participation to the training at the OECD International Academy on Asset Recovery: Freezing and Seizing Assets

23-27 October

Workshop on assistance in the recovery of tax claims in Tunis

Tunisia date TBD

Workshop on Bribery and money laundering awareness for tax examiners

OECD date TBD

441


Workshop: raising the awareness of judges on international taxation concepts

OECD date TBD

Workshop on Building a taxpayers’ education programme and sharing of experiences

OECD date TBD

C. Implementation Status of Components 39

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 (EOIR). 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 EOIR. The GFTEI completed the review of the quality of the and 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. The Finance Bill for 2017 has repealed the obligation to obtain a court order to have access to bank information for domestic tax purposes. This will further facilitate the fight against tax evasion.

Sub-component 1.2 Establishing an effective exchange of information unit Status of Implementation: The consultant for the Establishment of the Exchange of Information Unit was hired and has almost completed its work. The OECD and GFTEI have continued to provide guidance to the new EOI Unit together with the new consultant on EOI to assist in improving processes , designing guidelines, and monitoring systems for 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 continued raising the awareness of Tunisian Tax Examiners about the potential of EOI to improve the tax audits of cross border transactions. The Convention has been in effect in Tunisia for tax years opened as of 1 January 2015 and 107 jurisdictions are now participating to it.Sub-component 1.4: Capacity building through staff assignment and participation at multilateral events (GoT executed) Status of Implementation: Nine (9) Tunisian tax officials participated in multilateral seminars on exchange of

39 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.

442

http://www.oecd.org/tax/transparency/abouttheglobalforum.htm

information. Two tax officials of the EOI Unit have been selected to do an internship of 3m at the GFTEI Secretariat. The new director General of Taxes will decide when they will start their internships.

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 is taking an active part in the BEPS work but has not yet formally joined the BEPS inclusive framework which now counts 91 jurisdictions as Associates on an equal footing.

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 upon 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 now preparing proposals for legislative changes aiming at addressing BEPS issues: Transfer pricing legislation and regulations, legislation on APAs and safe harbours.

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 the BEPS Transfer pricing diagnostic, the OECD designed together with 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 Concept Note: Sustaining the National Development Plan 2016-2020 provided to the GoT http://www.tunisia2020.com/plan-2016-2020/

Technical assistance in the implementation of the BEPS measures and tool kits being developed will continue in 2017 and 2018. Tunisia has also been offered to benefit from the new OECD/UNDP Initiative Tax Inspectors Without Borders (TIWB). http://www.oecd.org/tax/taxinspectors.htm which provides hands-on assistance in tax audits to developing countries.

Sub-component 2.3 Auditing multinationals (OECD executed)

Status of Implementation: As part of the BEPS/ TP Action Plan, the fourth capacity building seminar on TP and auditing MNEs was delivered on 19-23 December 2016 to over 30 tax auditors by the OECD Secretariat and an expert from the French tax administration: during the workshop, case studies focusing on the valuation of intangibles, intragroup financing and EOIR were discussed. This training strengthens Tunisia’s capacity to protect its tax base against aggressive tax planning by MNEs as well as profit shifting through TP

443

http://www.oecd.org/tax/taxinspectors.htm

http://www.tunisia2020.com/plan-2016-2020/

or other means, while avoiding double taxation that would be detrimental to the overall business climate.

Sub-component 2.4: Capacity building through participation at multilateral events (GoT executed) Status of implementation: Twenty three (23) Tunisian tax officials participated in multilateral seminars on Transfer Pricing and business restructuring , Transfer Pricing and customs valuation, meetings of the Global Forum on Transfer Pricing , working party on MNEs, BEPS regional consultations.

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 during a workshop in Tunis on21-23 June 2016 and include:

1. A Corporate Effective Tax Rates Model 2. A Corporate Tax Revenue Model 3. A Taxing Wages Model 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 Ababa. The statistics show that reported tax revenues in Tunisia represented 31.3%.of GDP (the highest ratio of the eight African countries included in the Report . 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. Tunisia will be included in the 2nd Edition of Revenue Statistics in Africa which will include a much larger number of countries given the interest of the publication .

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 still being reviewed by the new Director General of the DGELF. Once the OECD gets feedback it will organise a workshop in order to finalise the model for the reform of Tunisia’s VAT Code.

Sub-component 3.4 Consensus-Building and Communication (GoT executed)

Status of Implementation: Expertise France has provided seminars to the DGI on the strategy of Communication. The former director of the DGI was keen to target the judiciary in order to raise the awareness of judges on international tax issues. This priority still needs to be confirmed by the new Director General. Individual consultants will be hired to design and implement a communication strategy.

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

Sub-component 3.5 Capacity building through staff assignment and participation at multilateral events (GoT executed)

Status of Implementation: Tunisian officials participated in the Revenue Statistics ATAF OECD AU workshop in South Africa on 28-30 June 2016 to assist them in the preparation of the 2017 Edition of Revenue Statistics in Africa which will include a much larger number of countries. Eight (8) Tunisian officials participated in seminars on tax policy and revenue statistics. In addition, Four (4) officials benefited from two months internship at the OECD Centre for Tax Policy and Administration working on Value Added Tax issues and Revenue 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: Article 80 bis of the Finance Bill for 2017 established a Tax Police or Unité nationale des enquêtes et de lutte contre l’évasion fiscale within the DGI to undertake investigations of sophisticated tax crimes. The creation of this body had been announced since 2014. The OECD will be providing capacity building to this new Department of the DGI focusing on detection and analysis of suspicious transactions, techniques of investigation, conducting surveillance operations and interrogation techniques. It will associate the Tunisian tax officials who have already been trained at the OECD International Tax Academy on Criminal tax investigations. An individual consultant will be hired to support the establishment of the Criminal Tax Investigation Unit.

Sub-component 4.2: Designing a strategy and assisting with the implementation of a risk management process (GoT/OECD executed)

Status of implementation: The USAID mission has been providing technical assistance to develop a new Audit Criteria Selection System (ACSS), to flag high-risk cases for audit, in order to avoid duplication, the OECD has agreed to assist in the delivery of training to improve risk assessment in economic sectors identified by the GoT: the oil sector, the financial sector and the telecommunications sector.Sub-component 4.3: Designing a Taxpayer Education Programme (OECD executed)

Status of Implementation: The OECD has offered to organise 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 The OECD is awaiting feedback from the new Director General of Taxes in order to schedule this event. Sub-component 4.4 Capacity building through participation at multilateral events (GoT executed)Status of Implementation: So far five Tunisian tax officials have attended foundation and intermediate 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 also took part in the Tax and Crime seminar in Ankara in March 2016. This capacity building will be most useful for the

445


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

tax police established by the Finance Bill for 2017.

Component 5: Project management and monitoring (GoT executed) Previous 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 Director of the DGELF as alternate coordinator has changed in 2016. The present coordination team includes Mr Sami Zoubeidi the General Director of Taxes appointed in November and as alternate coordinator Madame Sihem Boughdiri Nemsia General Director of the DGELF appointed in March 2016.

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

(x)


(y)

Total (US$)


AfDB: 2,843,900 OECD: 1,375,400 USD1 AfDB: 2,843,900OECD: 1,375,400 USD


AfDB: 2,843,900 OECD: 942,054 USD AfDB: 2,843,900OECD: 942,054 USD


AfDB: 550,360 OECD: 955,282 USD AfDB: 550,360OECD:955,282 USD

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 AfDB: 500,000

OECD: 140,039 USDAfDB: 1,000,000OECD: 140,039 USD

AfDB: 1,500,000 (cumulative)OECD: 280,079 USD

2018 AfDB: 1,343,900OECD: 140,039 USD

N/A AfDB: 1,343,900(cumulative)OECD: 140,039 USD

F. Disbursements of Funds for Indirect Costs (US$)Disbursed Available TotalAfDB: 0OECD: 91,848 USD2

AfDB: 100,000OECD: 0 USD

AfDB: 100,000OECD: 91,848 USD

1 Figure corrected to reflect the approved amount of direct costs2 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.

446




Unit of Measure

Baseline





definition etc.)Jan 2014 – Dec 2014

A

Jan 2015 – Dec 2015

A

Jan 2016 – Dec 2016

A

Jan 2017-June 2018

F

Indicator 1:Improved domestic revenue mobilizationTax revenue as % of GDP

Quantitative

20.8% (2012) 31.3%. n/a n/a n/a Yearly Public Revenue Statistics for Africa 2016

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

full lifting of bank secrecy for EOI on request

GFTEI approves Phase 1 Peer Review report

finance Bill 2017 further improves access to bank information

GFTEI launches the Phase 2 Peer Review report

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

A NumberB Number C Number

D Number

E NumberF

G numberH number

0

0

00

0

A 30A00

H 20A

0

A 55A30A

H 20A

I 2 for 3m A

28 A/85 FB 67 AC 37A

F 15 A

H 26 A

D 30 F

E 30 F

I 2 for 3m 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 TP legislation and regulations adopted


Component 1: Assisting with the implementation of international tax standards on tax transparency and information exchange

447

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 (TP) rules elaborated

Qualitative Strategy on Transfer pricing rules not elaborated

Action plan on TP and BEPS

capacity develop

ment

One (1) Strategy on TP rules is validated

n/a Once Project Implementation Reports

PCT

Capacity built on auditing tax affairs of multinationals

Number 0 6 60 60 90F 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

4 models provided to

FAU

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 Statistics

Africa

Once Project Implementati

on Reports

PCT

Component 4:Tax Administration Reform, Managing and Improving Tax Compliance

448

tax police quantitative

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 F 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’

449

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 :

749,000 USD (direct)

50,400 USD (indirect)

AfDB: 48,611 USD

AfDB: 50,000 USD (indirect)





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.




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. The PPP law and its decrees built on the recommendations and analysis provided by the project to the Tunisian authorities. The adoption of the law and more recently its decrees should facilitate the completion of the project activities. The recent investment forum successfully organized end of November 2016 should also foster stronger appetite from private investors

450






for PPP projects in Tunisia.

The implementation status of planned activities during this reporting period can be summarized as follows:

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”) and publicly launched during a high level workshop on June 3rd 2016 (component 5B).

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.

On AfDB side, The project manager has been providing valuable assistance to USC since his recruitment in August 2015. Specifically, he proved very useful to assist the USC in the recruitment process and management of the

consortium that is in charge of executing components 1A-2A-3A-5A. For this component, the activities performed so far are

Review the PPP law and the decree drafts established by USC according to best international practice and in light with OECD reports.

Review of the legal and institutional framework: this activity is almost finalized; the latest meeting on this subject took place on the 20th of December 2016. For components 1A-2A, the final report is ready.

Development of the training curriculum: the latter is is ready and training began since December 2016. An verage of 4 courses will be delivered by month. Hence, for component 3A; the final report is already.

IT system, GED and Communication is on oing and reports of the IT system and GED is ready. Some communication activities were also performed especially for the forum 2020 where national citizens and international investors and firms were informed of the existence of the PPP unit and a specific framework for PPP projects 5A.

These activities should lead to the disbursment of USD 136,000 on the MIC grant during the month of January 2017.

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 lead to the establishment of a short list of consulting firms by USC that was approved by the AfDB. Next step is the Request For Proposals which should take place early 2017.

Note that 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 18 months (since project restructuring) and efforts are ongoing to provide high quality deliverables that complement each other.




Recruitment of the consortium that will execute component 4 USC under AfDB oversight

3/31/2017


451


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)

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. . This component should lead to several outputs on which progress could be described as follow :*The report on the legal and institutional framework is finalized and the invoice will be settled in a few days*Meetings took place in October 2016 to discuss the PPP toolkit and the report of the PPP review process. USC asked to review several aspects of these 2 reports. These deliverables are expected to be finalized by the end of Q12017.*Report on the organizational structure of the PPP unit is not yet discussed and no deliveries have been sent to date.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 )

Status of Implementation: The decree establishing the PPP unit was prepared and so is the process leading to PPP projects. But, s but in practice the PPP unit is not yet established and is still waiting for the nominations of key staff.

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-

452

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 curriculum for the training was submitted by the consortium and reviewd and approved by the USC . The final report will be submitted at the end of all the missions but an important part of the budget allocated to this mission will be paid in January 2017 . The delivery of the actual also started during the month of December 2016 and the training will continue at the frequency of 4 sessions per month until the end of April 2017. Next training sessions ar planned for the 5th and 6th of January .

Sub-component 3.B: Tailored workshop & training materials on PPP implementation (ISA: OECD)


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. A short list was prepared by USC and submitted to AfDB for non objection which was given on December 12th. Next step is the request for proposals. USC is finalizing the RFP document and should submit it during early January 2017 for AfDB approval before sharing it with short listed firms.

Component 5: Consultation and communication

Previous Rating: Moderately satisfactory Current Rating: satisfactory Cost (US$): OECD sub-component 5.B: USD 74,960

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AfDB 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)

The consortium have prepared on the occasion of the Tunisia 2020 investment forum organized in November 2016 several documents that were distributed to visitors in order to inform them about the existence of the PPP unit in TUNISIA and the pipeline of PPP projects. A stand of the PPP unit IGPP was held also and a graphical charter was established as well. So far, three out of four planned meetings have taken place to implement the design of the IT system and GED and the report was delivered at the end of November 2016 and should be validated in January 2017 by USC.


The consortium prepared on the occasion of the Tunisia 2020 investment forum organized in November 2016 several documents that were distributed to visitors in order to inform them about the existence of the PPP unit in TUNISIA and the pipeline of PPP projects. A stand of the PPP unit IGPP was held also and a graphical charter was established as well. So far, three out of four planned meetings have taken place to implement the design of the IT system and GED and the report was delivered at the end of November 2016 and should be validated in January 2017 by USC.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.

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

454


AfDB: 1,400,000 1,200,000 component 4 +200,000 component6

OECD: 664,817

Actual Amount Disbursed (c): AfDB: 48,611 OECD: 749,000


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

E’ -Actual and future disbursementsPeriod Amounts Component Source of funding

August 2015-December 201648.611,4125.260,64

61,2,3,5A

MENA TFMIC TAF

2017562.860*120.000

1,2,3,5A6

MIC TAFMENA TF

2018 1.200.00031.200

46

MENA TFMIC TAF

*About 136000 will be paid on January 2017F. Disbursements of Funds for Indirect Costs (US$)

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

OECD: 50,400

AfDB: 50,000

OECD: 0

AfDB: 50,000

OECD: 50,400

AfDB: 100,000

455


Project Development Objective (PDO): Improvement of Public-Private Governance, Improvement of Public Service Delivery, Investment Mobilization and Job Creation


Unit of Measure

Baseline





Apr 2013 – Mar 2014

A

Apr 2014 – Dec 2015

A

Apr 2015 – Dec 2016

F

Apr 2015 -Dec 2016

A

Indicator one: number of policy reforms identified in view of strengthening the legal framework for PPPs

# policy reforms

0 0 1 4 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 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 1 6 months reports Project implementation unit

PPP Unit was established through the implementation decree but is yet to be adequately staffed. Meanwhile USC is created and functional.

Indicator four: PPPs pipeline is developed

# of PPP projects identified

0 0 5 5 15 6 months reports Project implementation unit

Based on latest information provided by USC, 50 projects were reviwed, of which 15 having been assessed as potentially good candidates for PPPs

456

Indicator five: PPP pilot projects are prepared

# of bids launched to select private partners

0 0 0 2 0 The recruitment process of the consortium that will be assisting the GoT in the preparation of 2 short listed PPP projects is ongoing (see report for details).

Indicator six: Private sector investments crowded in

Million USD

0 0 0 0 0 6 months Reports ; Ministry of finance


The pilot porjects are not ready yet. This oucome will materliaze likely in 2018.

Indicator seven:Institutional PPP awareness

# of staff trained

0 30 60 60 90 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. For AfDB implemented training activities. In addition 30 staff are currently being trained on a 10-module curriculum (4 covered so far)

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 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):

Inter-ministe

0 1 1 1 1 3 months Regular communication

Government task-force established

Timely responses to OECD questionnaire provided by

457

Co-ordination platform for monitoring PPP and infrastructure-related policies

rial taskforce set up to co-ordinate inputs to OECD policy review process.

with task-force partnering with OECD in policy review process

for providing responses to OECD questionnaire and reviewing drafts of analytical reports; and OECD analytical team

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 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. The PPP training programme, a timeline and implementation plan was discussed, actual implmenttaion also started in early 2016.

Intermediate Result (Component Two): Setting-up the PPP Unit

Intermediate Result indicator One (with OECD inputs): Organization structure, staffing and skill requirements

Business plan

in place

0 0 0 0 1 6 months Reports Project implementation unit & OECD analytical team

PPP Unit organization structure is defined, staff skill requirements are established with reference to best-practices across OECD and non-OECD countries. Progress is made on this front with the USC . The cosornrtium that will be handling this component has been recruited.

Intermediate Result indicator two: PPP Unit staff recruited

Reforms

proposed

0 0 2 1 6 months Reports Project implementation unit

1 staff has been recruited and more are expected shortly.

Intermediate Result indicator three: Toolkit, operating manuals and procedure defined

Financing

strategy in place


the preparation of the toolkit and operating manuel falls under the repojnability of the consortium that has been recruited under oversight of

458

AfDB. Drafts of these dicumebnts were prepared and discussed during 2 working sessions. They should soon be validated.

Intermediate Result indicator four: IT system in place

Operational

manual in place


. Progress is beginning on this front with the USC. The cosornrtium that will be handling this component has been recruited. The dsign of the werbsite is finalized and development is ongoing.

Intermediate Result (Component Three): Capacity Building

Intermediate Result One (led by AfDB):

Tailored training materials are prepared

Course-pack & PPP training modules in place

0 0.5 1 1 1 6 months Course-pack for training

programme

Project implementation unit & feedback from training participants

A 10- module curriculum was developed by the consortium under AfDB executed activities.

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 90 6 months Reports OECD training staff & feedback from training participants and USC

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). Inaddition, 30 staff are cureenly being trained on a 10- module course.

Intermediate Result indicator three (with inputs from

#of seminar

0 2 3 3 3 6 months Reports Project implementation

Number of seminars organized (including to follow up on

459

OECD): transfer of experience

s organised

unit & PPP Unit experiences gathered during PPP Training programme). Two workshops were held in 2014 (April and October) while the PPP Training Programme was was held in may 2015. A final seminar to launch the reports prepared by the OECD took place in June 2016.

Intermediate Result (Component Four): PPP pipeline and project preparation

Intermediate Result indicator one: Project reviewed

# of projects

0 0 5 5 50 6 months Reports Project implementation unit

Projects reviewed by the PPP unit as potential PPP candidates

Intermediate Result indicator two: Project shortlisted

# of projects


2 projects have been short listed by the USC and the recruitment process of the consortium that will assist in their implementation is being processed.

Intermediate Result indicator three: Project prepared

# of projects


the recruitment process of the consortium that will assist in their implementation is being processed

Intermediate Result indicator four: expert panel

# of panel


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

platfor


High-level events, Round table & bilaterals with government, civil society and the private sector. Note that the government had a stand for PPP projects at the recently organized investment forum

460

ms Tunisia 2020. Several meetingstook place with local and international investors. In addition, 2 intreviews (1 radio and 1 press) were delivered by the USC.

Intermediate Result indicator two (with OECD inputs): communication material

# of communication product

s

0 2 4 4 1 6 months Reports Project implementation unit & OECD

The unit produced 1,000 flyers that were distributed during the Tunisia 2020 Investment forum. These flyers explain the legal framwok and how to do a PPP in Tunisia.

Intermediate Result indicator three: web site

# of dedicat

ed website


The cosornrtium that will be handling this component has been recruited and work is ongoing. Design is finalized and development is progressing.

Intermediate Result indicator four (with input from OECD networks): project specific road-shows & international presentations

# of roadsho

ws#

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. A first presentation was made during the Tunisia 2020 forum.


461

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$): $): 855,456


12/5/2013


1/1/2014


6/30/2018




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 studies40 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

40 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.

462



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.




Delivery of interim report #3 related to the definition of incentives for private-sector led affordable housing production

WB in conjunction with Ministry of Housing

7/30/2017

Delivery of interim report #2 related to the rental sector review (rental sector diagnostic)

WB in conjunction with Ministry of Housing and Ministry of Finance

6/30/2017

Launch the technical assistance in support of Implementation of medium term reforms to credit -linked government support mechanisms


04/28/2017

Delivery of interim report #1 related to partial credit guarantee fund feasibility study


3/31/2017

Signature of MoU with the regional partner university for the Wharton housing finance training

AMF in conjunction with World Bank and Wharton

9/29/2017

Finalize the data collection for the online affordable housing finance knowledge platform and resource center for the MENA region

AMF 9/30/2017

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 reforms

463

Status 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 July 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, over the course of 2017On 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: 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

464

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 July 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 July 2017.

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

Amount Received from AMF: 200,000 AMF: 200,000465

Trustee (b): WB: 1,800,000 WB: 1,800,000Actual Amount Disbursed (c): AMF:

21,432WB750,754AMF: 21,432WB: 750,754

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: 0

WB: 48,518AMF: 44,642 WB: 154,099

2017 AMF: 44,642 WB: 274,441

AMF: 66,963 WB: 387,402

AMF: 89,284WB: 661,843

2018 AMF: 66963 WB: 387,402

AMF: 44,642 WB: 387,402


AMF: 2,810WB: 80,460

AMF: 27,190WB: 0

AMF: 30,000WB: 80,460

466


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

467

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).

468

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.

469

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


470

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 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.

471


In November 2016, the second Steering Committee was held in Amman. Participant from Tunisia joined this meeting, which has reviewed the progress of the initiative at regional level and defined the guidelines for the 2017 activities. 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, presented to the stakeholders in a workshop in September 2016 and agreed. Final versions of the reports have been disseminated among country focal points in December 2016.


For the third component (Logistics Observatory) data collection/processing is ongoing. The architecture of the IT system to support the observatories has been designed in Q4 2016this semester.




Publication of the report defining the characteristics and services of the Logismed logistics platforms and also the configuration of the network.

CETMO 3/31/2017

Promotion of the network of logistics platforms in Tunisia. CETMO 2/13/2017

Launching training activities in Tunisia, following the recommendations of the diagnostic elaborated.

GOPA 2/6/2017

Implementation of the activities defined to set-up the National observatory in Tunisia.

CETMO 2/6/2017




Cost (US$): 314,340

Sub-component 1.1: Promotion of LOGISMED project

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, once the concept of Logismed logistics platforms is completely defined.In November 2016, the second Steering Committee of the Logismed soft initiative was held in Amman. Participant from Tunisia joined this meeting, which has reviewed the progress of the initiative at regional level and defined the guidelines for the 2017 activities.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 agreed with the Tunisian authorities during this period. Final version agreed has been disseminated to the countries December 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 held in Barcelona the 19th September 2016. This workshop complemented the study, allowing the incorporation of the opinion of the experts in the final version of the study.

472

EIB – in close cooperation with the Tunisian authorities 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.








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. First version of the diagnostic report has been presented to the Tunisian focal point in November 2016. Comments from national representatives have been collected and incorporated to the report. In December 2016, a workshop has been held in Tunis to present the results of the diagnostic to the whole training and logistics community in the country and to promote their participation in the project. This workshop serves also as kick off meeting of the specific training activities in Tunisia. 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


Launching of the work of the training consultant: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

Tunisia (August 2016)o Implementation of the training activities in Tunisia (consecutively to the end of the previous

activity). Second meeting of the Steering Committee of Logismed Soft41 end of November 2016 where draft of the

diagnostic study were submitted to the country representatives

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 finalized.

41 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. 2nd Steering Committee meeting was held in Amman (Jordan) in November 2016.

473

Sub-component 3.2: Observe and analyze regional developments

Status of Implementation: This component was launched at the regional level in spring 2015 (CA was signed in December 2014). The list of thematic areas and indicators of the regional Observatory has been agreed during the Second Steering Committee held in November 2016. This work has taken into consideration best practices of Observatories and existing Macro-indicators to describe Logistics performance and also the comments from the Tunisian representative (a first draft of the list 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 Tunisian priorities for the short term concerning the Observatory and its needs have been adopted in the list of activities to implement in the short term. However, this list of activities has not been launched this period due to the fact that in order to improve the list of indicators of the Regional Observatory, a short term expert was engaged to analyze and to ameliorate the pertinence of the list of indicators. The final version of the list of indicators was agreed during the second Steering committee (November 2016). This time has been used by CETMO to design a proposal of architecture of the IT system to support the observatories (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.Most of the activities of this sub-component will be implemented during 2017 (Building the IT system, Elaborating the indicators, Implementing technical assistances to collect new data or improving the existing data and Preparing the first results).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 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

474


142,000 0 142,000

475



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

A

Aug 2017 – Dec 2018

F

Indicator One:

Logistics Performance Index (LPI) unit 3.2 n/a 2.5

2.5 (LPI

2016)n/a

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)

5.4(3T

2016)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

n/a 5.2Once per

year

COMTRADE (United

Nations)



476

** 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

Total Amount Disbursed (Direct and Indirect in US$): 1,400,000 1070,000


12/5/2013


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 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 were foreseen to 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, was submitted to the MENA TF separately.

A brief summary of the implementation status of ongoing/completed TRANSTRAC activities is given

478


hereunder:

- Component #1 - regional activities – covering all TRANSTRAC countries (Tunisia, Jordan, Egypt, Morocco): a) Road Safety Action Programme: This activity was completed within 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 in Tunisia was 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 Q1/2017 (preliminary design / APS). TA to be concluded April 2017.

- 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 Q1 2017, with final TA completion expected for April 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 in March 2017.

- 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 February 2017. TA completion is expected for Q3 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)

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

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 was completed within schedule. The first phase was delivered and a seminar on road safety was held in Tunisia in April 2016. Furthermore, a road safety auditor training was carried out in the week of 23rd of May 2016. Programme in Tunisia was 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


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 Q1/2017 (preliminary design / APS). TA to be concluded April 2017.

Sub-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 Q1 2017, with final TA completion expected in April 2017.

Sub-component 2.3: Rail Network Extension Study


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 in March 2017.

Sub Component 2.4: Upgrading of Border crossings

Status of implementation:

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 February 2017. TA completion is expected for Q3 2017.

480

Component 3: Project preparation, Management, Coordination, Monitoring and Evaluation (PMU)


Cost (US$): 400,000


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

Actual Amount Disbursed (c): 0 1,200,000 1,200,000

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

AF

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: IFC42: 413,446 USDOECD: 678,881 USDIndirect: OECD: 50,400 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. The parliament approved the new investment law on 17 september 2016 and will be effective on April, 2017.Investment law decrees were approved in December, 30 in ministerial committee and will be published in Q1 2017.The new law establishes a high Investment Authority that will be a one stop shop for large investment projects and will contribute to boost investments. The law also announce the creation of Management By Objectives Unit that will lead efforts

42 As of January, 4, 2016 ; committed amounts are $4,500484





on streamlining and simplifying authorizations linked to investment, economic activities and market access.The project also put in motion the policy work to further integrate the economy in the GVC through the logistics and transport sector . 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).

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 Tunisian authorities in identifying institutional and legal obstacles to implement effective, coherent, and well-coordinated logistics policies. Progress has been made in the implementation of this component over the last 6 months with some delays. Since June 2016, the OECD has been preparing, in coordination with the Ministry of Transport, a study to identify the key bottlneckes hindering the development logistics sector and provide preliminary policy recommendations to unlock the potential of the sector. A preliminary draft should be shared with the Ministry of Transport in early 2017. A launch event to present the findings of the report should take place in the first semester of 2017.

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 was 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 proposed complementary activities of Global Lead Generation Services that have a strong impact on investment framework. In light of the delays in the adoption of (i) the investment law, (ii) the investment decrees and hence (iii) the hiring of the core team responsible for the set up of the new investment authority, MDCI is requesting a one year time only extension of the project in order 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 of the project).


Report: 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 3/30/2017

Event: workshop to present the preliminary findings and policy recommendations of the study and initiate an evidence-based policy dialogue.

OECD 6/30/2017

Support in streamlining/elimination of investment entry authorizations IFC 12/31/2017

Support in Lead generation activities in order to attract FDIs in key targeted sectors

IFC 12/31/2017

Support in capacity building once core team of the investment authority is hired IFC 6/30/2018

Development of new processes or IT systems IFC 06/30/2018

485

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 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).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 weredelivered in June, 2016 and key messages to the MDCI was the importance and need to start by addressing the overall inefficiency of SMEs access to finance before undertaking activities to create a new public institution.

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 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 OECD has been working with three infrastructure and logistics experts (two local experts and one international expert), in coordination with the Ministry of Transport, to identify the key bottlenecks to the development of the logistics sector in Tunisia. In that context, the local experts held three fact-findings meetings with the Directorate in charge of the logistics sector

486

at the Minisry of Transport. The international expert provided a preliminary study on international experiences in the development of the logstics sector and how lessons could be drawn for the Tunisian case. A draft report will be shared with the Ministry of Transport in early 2017. A launch event of the report should take place in the first semester of 2017 to initiate a policy dialogue around the development of the logistics sector in Tunisia.

Component 4: Sector-specific investment Strategies to upgrade Tunisia in the GVCs (OECD)

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): OECD budget: 515,350Sub-component 4.1: Analytical report on investment policies impacting Tunisia’s participation in GVCs

Status of Implementation: The report was completed in June 2015 following the integration of the country in the Trade in Value Added (TiVA) database in autumn 2015 and was shared 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 law and decrees and subsequently the creation of the Tunisia Investment Authority, have an impact this component with a risk of not finishing activities on time. During different meetings with MDCI, project team urged the need to nominate a core team of members for the investment authority that can start benefiting from capacity building activities. MDCI is on the hiring process of the core team and we expect that it will be in place by April, 2017 when the investment law will be in place. Capacity building activities will start by that date, hence MDCI request to extend by one year the project timeline.

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. If the one year extension requested by MDCI is approvedthe 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.o Lead generation Services in order to boost FDIs

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. Due to the delays in adopting the new investment law and decrees, MDCI asked to relaunch the selection process in Q1 2017 in order to have the core team in place when the technical assistance. ToR for this assistance were also finalized and will discussed with the MDCI in November. 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 hence MDCI request for one year extension.

D. Disbursements of Transition Fund Funds for Direct Project Activities 487


(x)


(y)

Total (US$)


Not applicable IFC: 1,100,000OECD:749,600

IFC: 1,100,000OECD:749,600


Not applicable IFC: 1,100,000OECD: 656,192

IFC: 1,100,000OECD: 656,192

Actual Amount Disbursed (c): Not applicable IFC43: 413,446OECD: 678,881

IFC: 413,446OECD: 678,881

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: 70,719IFC: 350,000

OECD: 70,719


OECD: 50,400 OECD: 0 OECD: 50,400

43 As of January, 4, 2016; Commitments amount to $4,500488

G. Results Framework and MonitoringProject Development Objective (PDO):


Measure2011-13 A



Methodology


Collection

Remarks / Comments

2014 A

2015 F2015

A2016F

2016 A

2017 F 2018 F

Indicator One: Increase in Foreign Direct Investments Generated - cumulative

US Dollars Million

1,289 1,063 NA 1,002 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 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

199 168 NA 265,64 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 0 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 (new investment code)

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 zero 1 zero 1 1 Yearly OECD OECD

Workshop organized Number Zero Zero Zero zero 1 zero 1 1 Yearly OECD OECD

Number of consultations held - cumulative

Number Zero Zero Zero zero 2 2 2 2 Yearly MDCI MDCI

Number of policies and/or procedures effectively improved - cumulative

Number Zero Zero Zero zero 2 zero 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 zero 1 1 1 1 Yearly OECD OECD

Number of training sessions / workshops / seminars / conferences - cumulative

Number Zero 4 4 4 1 zero 4 4 Yearly OECD/MDCI OECD/MDCI

Development of policy tools / instruments

Number Zero 1 zero zero zero zero zero zero Yearly OECD OECD

Number of policy and institutional improvements

Number Zero Zero 1 NA 1 NA 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$ 1,313,317OECD: 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

Revised Closing date: 03/31/2018

Expected Closing date: 12/31/2018



Secondary Pillar(s): Choose an item.Investing in Sustainable GrowthEnhancing Economic Governance


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.

The actual implementation of Component 2 targeted 102 young job seekers, who have benefitted from the individual support through 2 paths: (i) 82 youths for professional integration to the green jobs; and (ii) 20 youths for creation of their proper business in the Green Economy.

For the professional integration path, the beneficiaries benefited from individualized coaching by a dedicated consultant. This methodology facilitates the transition of young jobseekers from unemployment to a working situation through the development of their professional project. For this first group, out of 82 selected youths, 20 has dropped out while 62 beneficiaries have completed the coaching process. To date, 11 youths have been inserted in the job market while other job opportunities are being explored for the remaining beneficiaries.

With regards to the business creation path, the project idea-holders have benefited from the individual advice of a consultant in business creation. In addition to individual sessions, young people received training to enable them preparing their green business plan with all its components. So far, 10 companies have been established while 8 additional projects are being processed for their onward submission for financing by the BTS

A second selection process of youth has started on October and November 2016. This has resulted in the admission of 370 new young people. This process was carried out in cooperation with the public employment services, and partnerships with public, private and civil society actors in the region. It has also been supported at national level by the Ministry of Training and Employment, the Tunisian Solidarity Bank, ANETI, and the partner agencies of the project. The official launching for this second phase was carried out under the Chair of the Minister of Vocational Training and Employment and the Governor of the region of Bizerte. This showed the commitment of the public authorities in the implementation and the success of the project.


Finalize the procurement process for the recruitment of the selection of juniors advisors in Eco- enterprises and professional integration

MVTE/UNOPS/IsDB June 2017

Complete the individualized support for youth under professional integration path (Phase 2)

MVTE/UNOPS June 2017

Prepare the third phase involving 380 youth for professional integration MVTE/UNOPS 1st semester 2017

Establish 25 Cleantech companies MVTE/UNOPS/BTS June 2017

Launch the Green Job Platform MVTE/UNOPS June 2017

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

493

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).

Status of Implementation: CompleteSub-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; Consultant on Networking.

Monitoring and communication tools: Preparation of the detailed project work plan for 2017; Preparation of the resource mobilisation plan for 2017; Elaboration of reporting and communication tools; Periodic meetings of the national and regional steering Committees;

Key deliverables finalized:The first group of 102 enrolled youth is about to be closed. The beneficiaries are integrated in salaried green job, eco internships or have created to green small business.

- 62 beneficiaries have completed the coaching process under the professional integration path;- 11 youths have been inserted in the job market. - 10 companies have been established;- 8 additional projects are being processed for their onward submission for financing by the BTS - The selection of 370 youth for the second phase has been completed.

Networking:

The project team organized a series of meetings with key local and national partners in order to establish formal partnerships with them.

Local centers for vocational training and universities has been also approached to examine how to improve the green economy curriculum. Two sub sectors were selected: renewable energy and recycling.

The project is supported by the high level authorities at national and regional levels. The Minster of Vocational Training and Employment and his Secretary of State, have expressed their will to reinforce the Green Jobs Platform

494

and expressed their deep interest to replicate the project in other regions. Several agreements have been concluded with civil society, companies to formalize the cooperation with the

project.

Key Events:

March 21st, 2016 was the starting date of the individualized support process of 102 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;

Participation to the COP22 event in Marrakech: The steering committee of the COP22 selected The Platform for Green Jobs Project, among the best 20 African start-up creation initiatives in favor of the environment and climate. This was an opportunity to communicate about the Project as it aims to provide a holistic and integrated solution to problems related to both preservation of the environment and the fight against youth unemployment in the Bizerte area of the country. Many representatives were interested to launch such a project in their countries;

December 1st, 2016 Kick off of the second group of beneficiaries in a plenary gathering chaired by the Minister of Vocational Training and Employment and the Governor of the region. An exhibition of 10 green companies created by the Green jobs project was also organized.


Current Rating: Moderately Satisfactory Cost (US$): US$ 3,850,000

Sub-component 2.1: Youth Professional Development in the field Green Jobs Market

Enrolled 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 82 young job seekers has been completed. The beneficiaries benefited from individualized coaching by a dedicated consultant. This methodology facilitates the transition of young jobseekers from unemployment to a working situation through the development of their professional project. Individual sessions with advisors, horizontal trainings in “active job search techniques” and “soft skills” were provided to the beneficiaries.

Technical trainings in the green economy, certification and energy saving have been provided through workshops organized with local companies. Visits to these partners were also organized. A formal agreement process has been initiated with businesses on a win-win basis. This process allowed in the integration of 11 youths have been inserted in the job market while other job opportunities are being explored for the remaining beneficiaries.

Sub-component 2.2: Green Business Creation495

This 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 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: 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. The project idea-holders have benefited from the individual advice of a consultant in business creation. In addition to individual sessions, young people received training to enable them preparing their green business plan with all its components. These business plans were co-instructed with the Tunisian Solidarity Bank to ensure acceptance of the Bank's request for financing. It is worth noting the coaching 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. The objective is to advise the young entrepreneur on the good management and the sustainability of their green companies. So far, 10 companies have been established while 8 additional projects are being processed for their onward submission for financing by the BTS. A second phase involving 40 young owners of projects has been launched by the end 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 ten projects while eight 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;

A certified training on Prince 2 for Project Management has been provided to 6 national stakeholders. 4 of them have passed the exam successfully. 4 staff from the MVTE and ANETI have attended a course of two week organized by the Green Jobs Academy at the UN trading centre in Turin. The objective was to build their capacities in green jobs design and public policies. This training is expected to be replicated during the year 2017.Other capacity building actions targeting local stakeholders from public and private sectors and civil society will be continued in 2017.


496

Country-Execution (US$)44 Direct Cost for ISA-Execution (US$)45

Total (US$)


3,850,000 486,675 4,337,000


3,850,000 248,463 4,098,463

Actual Amount Disbursed (c): 1,313,317 486,675 1,799.992

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: 269,618 IsDB: 604,177

2017 IsDB: 700,000 IsDB: 700,000 IsDB: 1,400,0002018 IsDB: 700,000 IsDB 436,683 IsDB: 1,136,683


OECD: 38,325 IsDB: 85,000

OECD: 0IsDB: 15,000

OECD: 38,325 IsDB: 100,000

44 IsDB Allocation45 OECD Allocation

497


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 Cumulative Target Values**

Frequency



Collection

Description (indicator definition etc.)Sep

2013 – Dec

2015(A)

Jan – Dec

2016(A)

Jan – Dec

2017(F)

Jan – Dec 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

Yearly MVTE / 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% 18% 70% consolidation

of green jobs

Yearly MVTE GJP Steering Committee + IDB + UNOPS

Number of enrolled beneficiaries employed.

Indicator Three: Creating small and medium sized "Cleantech Companies”.

Number 50 0 10 50 Individualized support to guarantee the financial balance of the created companies

Yearly MVTE GJP Steering Committee + IDB + UNOPS

Number of small and medium "Cleantech Companies” created.

Indicator Four: Direct and indirect jobs generated by the “Cleantech Companies”

Number 300 0 11 300 Yearly MVTE GJP Steering Committee + IDB + UNOPS

Number of jobs created by 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

498

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 mentoring arrangement in place.

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;

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 62 525 850 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

# of companies 0 0 10 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

499

instruments PlatformIntermediate Result indicator Five: Direct and Indirect Jobs are generated

# of jobs

0 0 11 300 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 Reports GJP 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$ 575,000


6/7/2013


8/1/2013


12/31/2017



Secondary Pillar(s): Enhancing Economic GovernanceCompetitiveness and IntegrationInclusive Development and Job Creation

B. Summary of Project Implementation Progress and Key IssuesProject 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, and the recruitment of the Consultant in charge of quality assurance and coordination have been validated by the project’s steering committee. The launch of the respective tenders has been however deferred due to uncertainties related to the procurement modalities to be applied in order to fully comply with public procurement practice. The ToRs had to be revised and the request for proposal related to the pre-selection of firms is now due to be launched on 23 January 2017.



Launch tender for the recruitment of the consultant in charge of quality Transition 1/23/2017

501



assurance and coordination CountryLaunch tender for the recruitment of a consortium of consultants Transition

Country1/23/2017

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.Previous Rating: Moderately Satisfactory


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 finalizedSub-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 finalizedSub-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 finalizedSub-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 finalizedSub-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 finalizedSub-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 finalized

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 finalized

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 finalizedSub-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 finalizedSub-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 finalizedSub-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 on 1/23/2017


(US$)

(x)


(y)

Total (US$)


3,488,000 0 3,488,000


750,000 0 750,000

503


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 0 02017 1,155,000 1,155,0002018 945,000 888,000 1,833,0002019


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




Collection


definition etc.)

2015 2016

Sep 2017 –

Dec 2017

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

Household energy survey(generalized)MERSvalidated &

Action Plan finalized

MERS operational

Quarterly STEG ANME

ANME

505

discussed

tested

Indicator Four: Oil Supply & Distribution

Study None Draft studies

Validated studies

Work programs & implementation plans

Quarterly ETAPSTIRSNDP

ETAPSTIRSNDP

INTERMEDIATE RESULTS46


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:


46 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 (PIU)

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]


Additional Funds Leveraged and Source(s), if any (US$): 51,000 for FY2017 (BB from the CMU)


Direct: 1,246,680 (out of 4,700,000, disbursement rate is 26%)

Indirect: 352,571 (out of 355,000)


5/15/2013


11/1/2013

Project Closing Date: (requesting one year extention in upcoming request)

6/30/2017



Secondary Pillar(s): Investing in Sustainable GrowthCompetitiveness and IntegrationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject 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 ISR of May 2016, project implementation has further improved. Based on the 507

extensive dialogue through the Mid-Term Review which concluded in March 2016, the government has transmitted an official request for project restructuring to the Bank on July 21 2016. The Bank team has prepared a draft restructuring package for an internal meeting which was chaired by the Country Director on September 16. Requested restructuring includes (1) changes in project activities (see section C); (2) changes in results framework framework to reflect the changes in activities (see section G) ; and (3) one year extention. Consequently, an implementation support mission took place from September 27 to October 20, concluding with the following three major issues which were also highlighted in the management letter and Aide Memoire (attached).

1. Social Survey/assessment to update the beneficiary registry (l’enquete sociale). At the national level, the Ministry of Social Affairs (MAS) reached an agreement with the UGTT (Union Tunisienne de la Solidarite Sociale – Tunisian Union for social Solidarity) on October 13 to mobilize social workers for the roll out of social inquiry/assessment. The MAS is currently in the process of rolling out training which is expected to be completed by the end of December, with the target plan to complete collecting information for 400,000 households by June 2017. The Bank team is still waiting for confirmation of the actual roll out of the survey in all governorates, as some regional UGTT are expressing their reluctance to proceed with activities. This remains sensitive and requires higher levels of mobilization at Prime Minister and Presidency levels, as recommended by the team to Management last September. We have indications that despite the green light at central level, there is persisting resistance at the local levels of the union of social workers and UGTT in carrying out activities.

2. Disbursement. Disbursement rate increased from 18% in previous ISR in May 2016 to 26% as of today. An additional disbursement is expected by February based on the payment schedules of three big contracts of about half million US dollars, which will further increase the disbursement rate to 38%. The procurement process has also improved, and the PIU team, with support from the Bank team, worked on more detail disbursement estimates and work plans during the Bank-wide portfolio workshop which was held on November 1-2, 2016 and submitted a disbursement plan on November 11. The government will submit the revised procurement plan after an internal final validation, reflecting the comments from the World Bank team.

3. Strengthening and institutionalizing the PIU. The PIU, which is hosted within the Ministry of Finance, does not have appropriate assignment of the PIU staff. In particular, focal persons for procurement and financial management are currently unable to allocate enough time for the project to perform the fiduciary roles required for the project. In this regard, the Bank team has highlighted this issue to the Director General of the MDIC (Madame Hamzouai), Head of Steering Committee (Madame Khraief, President’s Office), and Head of PIU (Monsieur Kais, Ministry of Finance). In parallel, Country Manager is also helping to raise this issue to the Minister of Finance using her MoF channel. During these meetings, the Bank team discussed concrete proposals as followed; (1) hosting the PIU function in the “Direction General d’Audit et de Suivi des Grands Projet (DGASP)” and mapping all PIU staff under the same Direction through issuing a decree; and (2) dedicate full time staff for procurement and financial management; and (3) hire consultants to help PIU and hire a technical coordinator. The PIU sent the World Bank on the new composition of the PIU, and the World Bank team has responded for clarification and follow up discussion.

Next steps. The government is expected to respond to the World Bank on these points which have been discussed, along with validated documents on the revised results framework and the revised PPM for the restructuring. As soon as a response is received and necessary clarification is completed, the Bank team will finalize the restructuring package to expedite

508

the internal approval process. (For further details, next steps are provided in the most recent Aide Memoire which includes the summary table together with the management letter which was officially transmitted to the government on November 4. )


Actions to be Taken Responsible

Party


Client to send their response and information needed for restructuring (i.e., the confirmation of actual roll out of social survey/assessment, updated disbursement estimates and procurement plans, institutionalization of PIU, and the validated results framework)

Client January 20, 2017

Bank to submit the finalized package through the portal, to complete the restructuring process (one month from the receipt of Client’s response)

Bank submission: January 31, 2017 completion: February 28, 2017

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 had eceived reports for these tasks, as reported in the previous progress report. 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. Below hilights the progress under this subcomponent.

Social survey: The government reached agreement with the UGTT on October 13 to mobilize social workers in the conduct of social survey. For the external validation of

509

the social survey, National Statistics Counseil organized cross sectoral meeting on October 13 where the Ministry of Social Affaires presented the social survey for the discussion and advices from other ministries and civil society representatives. In November, the Ministry of Social Affaires started trainings which consist 15-17 workshops to cover 1,700 regional focal persons and social workers nationwide.

Management Information System: The Ministry of Social Affaires have developed the Managemet Information System to systematically manage the information of current and potential beneficiaciaries of social safety nets. Tablets have been purchased for the dstribution to social workers who will be using the new MIS and tablets to collect the information frrom approximately 900,000 poor households nationwide. As of October, 250,000 households have been already registered in the registration module of the MIS, and the data collection will be accelerated when social survey is rolled out.

Targeting: To formalize the institutional arrangement, the Memorundum was signed between the Center for Economic and Social research (CRES), the Ministry of Social Affaires, and the Ministry of Finance. The CRES is currently in the process of recruiting the expert who will be engaged in the targeting modes. A set of activities including social survey, MIS, and targeting overlap with the identification of the poor vulnerable youth which is the target population of the new lending operation.

Unique social identifier (ISU): CRES, social funds, and MAS have already exchanged the data from their respective database to implement common social identfiers. As of October 2015, ISU has been assigned to 9.5 million individuals, and the number is expected to increase as the MAS implement social survey to collect information from additional households. Moving forward, all concerned parties discussed the importance of (1) assigning technical and operational staff, and (2) assessing how the MAS and social funds are handling the individuals who are SSN beneficiaries and contributing to the social funds at the same time, and (3) assessing the quality of ISU, including classifying active and non-active individuals and identifying potential duplication.

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. The Bank has already gave no objections to communication activities for the social survey on SSN, and the recruitement process of the communicaiton expert is underway. In the meantime, the technical team has made a progress to start preparing the frequently asked questions and responses which will serve as a practical communication materials. 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 Unsatisfactory


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

510

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 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 and improve the MIS. Therefore, please see “component 1.2” for the progress on the social identifiers and the MIS.

Component 3: Project Management and Monitoring Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 0.4 millionStatus of Implementation: Although the fiduciary aspect was considerably strengthened during the first semester of 2016, the PIU function and capacity needs to be further strengthened as hilighted in the Part B of this report. While all project documents (e.g., IFR, audit report, progress report, PPM) are prepared, the submission to the World Bank tend to be delayed. The Bank team has been closely following up, through the provision of hands-on support and detail guidance to the PIU technical counterparts, notabley focal persons for the M&E, procurement, and financial management. fiduciary and financial management,aspects and agreeement was reached on Operational Manual. As a result of the internal discussion, the PIU shared the strengthened PIU compsosition with the Bank team during the first week of January. It is expected that the PIU can achieve more effective and efficient project implementation once new members come on board. Lastly, please note that this last component will be redesigned in the new Restructuing to contain cross-cutting activities on communication and civic engagement which is presented under compoment 1.


(US$)

(x)


(y)

Total (US$)


4,700,000 4,700,000


4,700,000 4,700,000



Year Jan-June Jul-Dec Total by Year End20132014 500,000 500,0002015 0 400,000 900,0002016 -274,000 621,000 1,247,000

2017 when extension of Project duration is granted

953,000 1,300,000 3,500,000

511

after June 30, 20172018 1,200,000 - 4,700,000

TOTAL 4,700,000


Disbursed (US$) Available (US$) Total (US$)352,571 2,429000 355,000

512


Project Development Objective (PDO): To strengthen institutional capacity to design social protection reforms and improve targeting of safety net programs.


MeasureBaseline




Collection


etc.)Nov

2013 – Oct

2014

A

Nov 2014 – Oct 2015

A

Nov 2015 –

Oct 2016

FDec

2016

Nov 2016 –

Jun 2017YR5

F

Indicator One:Direct project beneficiaries

(a) Institutional capacity building

Number 0 50 0 0 500 Monthly Project M&E database

PIU Total number of beneficiaries from all components of the project combined(b) Registration in unified population

databaseNumber 0 0 0 0 500m Monthly Project M&E

databasePIU

Indicator Two:Citizens registered in new unified database

(a) Total

Number 0 0 0 0 500m Monthly Project M&E database

PIU Citizens that have received a unique identification number

(b) Of which are female % 0 50 0 0 50 Monthly Project M&E database

PIU

(c) Of which are vulnerable % 0 50 0 0 50 Monthly Project M&E database

PIU

Indicator Three:Beneficiaries of safety net programs (from among citizens registered in national database)

(a) Total

Number 235,000 235,000 235,000235,000

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 NA 80 Bi-annually Project M&E database

PIU

(c) Of which are female % 51 50 51 50 NA 50 Bi-annually Project M&E database

PIU

Indicator Four: Subsidy and safety net reform plan prepared and disseminated

Qualitative

None Yes No n/a No n/a Once Project Implementation Reports

PIU Report disseminated

Indicator Five:Integrated social security reform plan prepared and disseminated

Qualitative

None Yes No n/a No n/a Once Project Implementatio

PIU Report disseminated

513

n Reports


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 0 10,000 Quarterly Project Implementation Reports

PIU Citizens having received information or provided feedback through various channels

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

0(but 1,300 social workers were trained)

X

500

X

Annually M&E Database PIU Training delivered

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

Intermediate Result indicator Four: Targeting Operational Manual developed for subsidy-compensation program


PIU Manual designed on targeting mechanism for subsidy compensation 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 None Yes No n/a n/a Once Project Implementation Reports

PIU Report prepared on the basis of social dialogue with government and civil society

Intermediate Result indicator Two: Poverty and social impact analysis of social security reform options completed and disseminated

Qualitative None Yes No n/a n/a Once Project Implementation Reports

PIU Reports published

Intermediate Result indicator Three: Feasibility study to explore options to finance unemployment insurance completed and disseminated


PIU Reports published

Intermediate Result indicator Four: Annual reports on updates of pensions and health insurance actuarial analyses completed and disseminated

Qualitative None No No Annually Project Implementation Reports and Documents

PIU Report published on simulations and assessment of policy options



514



515

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


Activity Name: Development of SMEs Export through Virtual Market Places (Tunisia Activities)

Country Name: Tunisia (this is a regional project that includes Morocco and Jordan)

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:Total Amount Approved by the Transition Fund (US$): 1,000,000




Project Implementation Start Date:May 26, 2014 (date signature contract with International Trade Center, implementation partner).

Project Closing Date:June 30, 2017







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.


Satisfactory



Since the last semi-annual report, the project has progressed further as outlined in the report. The deliverables planned in the 2016 work plan have been achieved.

In particular, the project succeeded in raising national awareness on abundant business and trade opportunities of e-commerce. Better understanding has resulted in increased interest in developing

516

exports through VMPs. The project's Export Advisors (EAs) were solicited throughout the year to present the project at all relevant events related to export promotion, capacity building of SMEs and promotion of youth employment (trade fairs, seminars, trainings, debate, etc.). The project is also well known by all development partners in Tunisia and has successfully established working links with other trade promotion initiatives and projects.

Summary highlights:


High-level inter-ministerial committee on e-commerce established in Tunisia on 2 December 2016;

National e-commerce study conducted and i) helped identify the main regulatory and infrastructure constraints preventing the development of SMEs exports through VMPs and ii) proposed a roadmap for reforms to further stimulate e-commerce development;

Lobbying will enable the introduction and use of the PayPal payment system in Tunisia Signing of an agreement between the Tunisian Post and the Tunisian Export Promotion Agency to

allow SMEs to benefit from reduced tariffs for exports via the post.


20 new e-commerce Export Advisors have undergone intensive training on e-commerce techniques using ITC training materials;

96 new beneficiary companies are being provided with hands-on assistance and customized advisory service based on results of diagnosis of their e-commerce potential and capabilities.

SME beneficiaries have established meaningful business relations with importers and completed more than 2,000 individual transactions (totaling an estimated revenue of USD150k).


No particular development during the progress report period.



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.


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1) National study on e-commerce

The Ministry of Industry and Trade requested the Project to carry out a comprehensive study aiming to identify and analyze issues and challenges affecting the development of e-commerce in Tunisia and, more specifically, the development of exports through VMPs. The study on e-commerce in Tunisia was launched in September 2015 and was in March 2016.

2) Retreat of the consultative committee on e-commerce

The results and recommendations of this study were presented to the main national E-commerce stakeholders during a two-day retreat in Hammamet on August 1-2, 2016. All key national institutions dealing with e-commerce, as well as the representatives of the private sector and the VMP project’s Export Advisors (EAs) participated in the retreat and demonstrated a high level of interest and engagement. As a result of productive discussions around study's recommendations, the participants agreed on the crucial barriers preventing a more active use of VMPs by exporters and designed a road map with corresponding reforms. The proposed measures should contribute to more conducive business environment for e-commerce by addressing institutional constraints and enhancing national regulations and, consequently, help beneficiary SMEs better perform on VMPs. The proposed reforms fall into the following 4 areas: Lack of a supportive legal and regulatory environment; Electronic payments and currency issues; Logistical networks for the prompt and reliable delivery of products; Branding and Trust.

3) High-level inter-ministerial committee on e-commerce (IMC) established

A high-level inter-ministerial committee (IMC) on e-commerce was established on December 2, 2016. It is composed of the following institutions: Ministry of Industry and Trade, Ministry of Communication and Digital Economy, Central Bank of Tunisia, National Post Office, E-Commerce and Distance Selling Union (SEVAD), Monetary Society of Tunisia (SMT), Tunisian Professional Association of Banks and Financial Establishments and Higher Institute of Technological Studies of Sousse.

A first meeting of the IMC took place also on the same day and focused on the proposed road map. The IMC decided to establish four technical subcommittees to elaborate on specific reforms tackling these four topics: Logistics, payment, legal regulations and customs. Concrete proposals towards required reforms will be presented for validation at the upcoming meeting of the Council of Ministers that will be specifically dedicated to e-commerce.



Sub-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.

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1) Training materials further improved

Based on the feedback of training participants and partner institutions in the three beneficiary countries (Jordan, Tunisia and Morocco), it was decided to further improve the available training materials. An international expert in e-commerce learning was hired to revise, improve and expand the existing training materials in order to include additional theoretical and practical content. The new training package was used to train the second cohort of EAs in Tunisia (June 2016). The participants assessed the quality of training materials as highly satisfactory.

The updated training materials cover the following items: e-commerce value chain, challenges and solutions for logistics relevant to e-commerce, e-payments, risk mitigation, client management, and after sales service. It also includes description of Virtual Market Places and modalities/conditions of registration to enable advisors to coach selected SMEs on all these technical aspects.

In addition, all training materials, guides and manuals will be made available for all SMEs in the three countries in Arabic, English and French through e-learning platform.

2) Training workshops and capacity building activities

A second training was organized in June 2016 in Tunis. 20 EAs, out of 70 who applied, were selected to participate in the training. It aimed to enable the selected EAs to fully understand methods, techniques and dynamics of VMPs and provide them with a well-defined framework to deliver high-level coaching and advisory services to selected SMEs. Following the training conducted in June 2016, 5 EAs were hired in July 2016 to reinforce the team of existing EAs. At the moment, the project is working with 15 EAs.

Sub-component 2.2: Registration and Coaching of SME.

Along with the outreach phase of the project, 96 new beneficiary SMEs have been registered on one to three different VMPs. They were coached on various aspects of doing business through VMPs, including management of their accounts and online shops; dealing with inquiries coming from the first potential e-buyers , etc.

1) Selection of SMEs

A Second call for expression of interest (EOI) was launched online in May –June 2016. This time, it was decided to take advantage of synergies with initiatives and projects aiming at strengthening the private sector. Throughout the selection process the priority was given to SMEs benefiting from various development programs and projects, including: World Bank’s funded Third Export Development Project (EDP III); “Access to markets” project for food producers implemented by the United Nations Industrial

Development Organization; “Strengthening the competitiveness of the textile and garments value chains” project,

implemented by ITC; and; Souk Ettmnia project implemented by the African Development Bank. In total, 170 companies submitted their applications and 100 new SMEs were selected to benefit from the VMP project. The process also ensured that the selected group is balanced in terms of company size, gender, products/services, and distribution across different regions in the country.

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2) Capacity building of SMEs through coaching provided by the Export Advisors

Following the assignment of 100 SMEs to the Export Advisors in June 2016, the EAs have been providing tailored coaching and support to companies over the period July-December 2016.

Under the supervision of the VMP expert, beneficiary companies have been sensitized on the importance of e-commerce for their businesses and registered into selected VMPs. The tailored assistance provided to SMEs by EAs covered: Export marketing diagnostic reports produced for each of 100 new selected SMEs; Registration of each company on one to three VMPs; Assisting SMEs in content presentation and management, online marketing, including production

of high-quality photos, products/firm`s descriptions, management of delivery services, etc.); Monitoring the companies` performance on VMPs (e.g. ensuring that all buyers’ inquiries are

treated adequately and timely); Supporting the beneficiary SMEs by their first export transactions; Coaching SMEs to adequately provide and manage after sales services (theoretical side); Usage of business and trade intelligence provided by ITC.

As a result, all selected SMEs are registered and started e-commerce activities on, at least, three Virtual Market Places. EAs also ensured that the beneficiary SMEs responded adequately and rapidly to all requests from potential buyers.

Some examples of SMEs success stories: The ArtofOliveWood': https://www.etsy.com/uk/shop/TheArtOfOliveWood, 111 unit sold; Khomsa Trading, producting fouta sold more than 2,000 items to companies in Australia and the

USA through the B2B marketplace Tradekey. One of the buyers personally visited the company in Tunis and was impressed by the quality, diversity of products and professionalism of its staff.

Manor Thon made transactions through Amazon.com: United States. Link : https://www.amazon.com/El-Manar/b/ref=bl_dp_s_web_12703719011?ie=UTF8&node=12703719011&field-lbr_brands_browse-bin=El+Manar

Tunisia Agroline: https://www.facebook.com/TunisiaAgroline/



Sub-component 3.1: Partnerships with Virtual Market Places.

Objective: 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.

In July 2016, ITC reached an agreement with eBay. Due to this partnership, beneficiary companies will benefit from free access to eBay premium accounts and increased visibility on this international platform. EBay will make available their so-called ‘anchor stores’ for enterprises supported by ITC, an enhanced vendor account that provides greater online visibility for these companies’ offerings and, consequently, a possibility to reach more clients. SMEs participating in the program will gain access to eBay’s network of fulfilment centers, opening up for more cost-effective logistics operations. The companies will also benefit from the eBay’s cutting-edge e-commerce research, allowing them to leverage this knowledge and better position their offerings in selected target markets.

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Earlier, ITC has signed a contract with Tradekey. This VMP is a B2B platform that connects traders with global whole sellers, buyers, importers & exporters, manufacturers and distributors with a special focus on Asia and the Middle East markets that are of particular interest to beneficiary companies. 14 new SME have registered on Tradekey in December 2016.

At the moment, the project team is negotiating the preferential premium membership rates for SMEs with other VMPs, such as Alibaba, Etsy, and Amazon.

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 performance evaluation of SMEs under different VMPs.

To benefit from the VMPs data (market trends, number of visitors, keywords searches, etc.) and allow SMEs and the national Trade promotion organization (CEPEX) to access relevant information, ITC is developing a trade intelligence system. To this end, an international intelligence expert was hired in July 2016 to help better track information and alert SMEs about the key relevant topics (e.g. markets, opportunities, competitors, trends, risk). The tracking will be implemented on VMPs and also on relevant sources of information that correspond to the selected sectors. The expert finalized the feasibility study to set up the e-commerce observatory. The report was validated by CEPEX in December 2016. The setting up of the observatory as well as the training on managing and disseminating information related to e-commerce will be delivered during Q1 2017.

Sub-component 3.3: Certification

From July to December 2016, the project team was involved in the development of a trust label certification in collaboration with the Association of E-commerce and Distance selling (SEDA). The project developed the requirements of the label and the compliance assessment procedures and guidelines for the award, withdrawal, and suspension of the label.

During Q1 2017 ITC will build SEDA’s capacity to become the main trusted conformity assessment body in charge of the label and the certification. A special attention will be paid to ensure transparency and fairness of compliance assessment and all related procedures.

The trust label certification will provide a stamp of quality to increase the confidence of potential buyers in the SMEs’ products and client management (delivery time, customer response, etc.).

The objective is to certify 50 SMEs that are beneficiating from the project during the first half of the year.



Sub-component 4.1: Project Management

This component finances the PIUs at country level.

1) Project Oversight Committee (POC)

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The POC meeting took place in February 2016. The meeting was chaired by the Chief of Cabinet of the Minister of Trade. During the meeting, the project team delivered 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 stimulate exports and promote digital economy.

2) The project implementation unit (PIU)

The PIU is in place and operational since January 2015. The PIU is in charge of the country level day-to day management of the project. The PIU organizes monthly meetings with the EAs to discuss the status of implementation and find solutions to any issues that may arise.


Status of Implementation: The component will be implemented at the end of the project .

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 282,506 0 282,5062017 315,820 315,820Total 786,023 188,338 975,000


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Indicators by

Component

Unit Baseline Cumulative Target Values Frequency Data Source/ Methodology


Collection


2014

A

2015

A

2016

A

2017

F


Indicator 1: Registered

SMEs with at least one export transaction completed via VMPs

Number

0 0 10 50 150 Quarterly Statistics VMP

platforms/ Feedback from surveys/M&E

Database

PIU Number of transactions

conducted by registered SMEs Value of Exports

increase since access toIndicator 2. Roadmap for

the reforms improving the enabling business

environment for e-

commerce in each participating country

Yes/No No No Yes Yes Yes Bi-annual Reporting by the

Oversight


Trade

PIU - ITC Roadmap document

endorsed by the OC

Indicator 3. SMEs

registered on VMPs Number

0 80 120 190 250 Quarterly Captured by EAs

and monitored

through M&E

PIU-ITC Registration involves

opening of a VMP

account and uploading of product INTERMEDIATE OUTCOMES


Indicators by Component Unit Baseline Cumulative Target Values Frequency Data Source/ Methodology


Collection


Definition, etc)2014 2015 2016 2017

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Workshops conducted Number 0 2 9 11 15 Bi-annual Reporting PIU-

ITC

PIU-ITC Output Delivered –

Workshop report






2014 2015 2016 2017

Export Advisors Trained

Number 0 40 40 60 60 Bi-annual Reporting PIU-

ITC

PIU/ITC Captures number of

EAs trained on

Export Advisors Certified

Percent 0 0% 0% 38% 50% 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 Indicators by

ComponentUnit Baseline Cumulative Target Values Frequency Data

Source/ Methodology


Collection

Description

(Indicator

2014

A

2015

A

2016

A

2017

F

Training program for TSIs

delivered (# activities)

Number 0 2 5 8 12 Quarterly M&E Database

PIU-ITC # Training sessions

Report disseminated and workshops

evaluations

# Number of advisory services

provided524





Description

(Indicator

2014 2015 2016 2017

Collaborative partnerships

Number 0 0 1 4 7 Quarterly Project

PIU MoU, Letter of

Intent or Newsletters published by

0 0 0 0 4 Quarterly PIU and RIA PIU and EA # product

(newsletter) Indicators by Component




etc)2014 2015 2016 2017

Premium Accounts

awarded – Certifications

Number

0 0 15 30 50 Quarterly Project

Implementati

on

ITC/PIU Trust label

certificates

Assessment body created

No No No Yes Yes Quarterly Project

I

WB/ITC/PIU Creation of

C

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Optimizing and Monitoring Employment in Infrastructure Investments

A. Basic Project InformationActivity Name: Optimising and monitoring the impact of infrastructure projects on employment in Tunisia.

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

Name of ISA Project Leader:Aymen Ben Ali


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


6/15/2017


6/15/2019



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.


Not Applicable

Rating for overall implementation progress: Not Applicable

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 legal package (Cooperation Agreement and Contribution Agreement) is signed by relevant stakeholders (the EIB, of the one part, and the Tunisian authorities and the ILO, respectively, of the other part). The service provider will be recruited through a framework contract procedure, if possible during Q2 2017. In parallel with the procurement process, EIB legal services have worked on an appropriate legal structure between EIB, Tunisia and the ILO. After a first draft agreement having been shared with the ILO, a new set of legal documents is being prepared to address more efficiently all parties’ needs.



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Cooperation agreement and Grant Agreement to be signed EIB, ILO and Tunisia

2/28/2017

Procurement EIB 3/15/2017

Contract award/Project inception EIB 5/31/2017

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$)Direct Cost for ISA-

Execution (US$)(y)

Total (US$)

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(x)Approved Amount for Direct Project Activities (a):

569,500 569,500


0 0

Actual Amount Disbursed (c): 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 90 02017 227,800 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

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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





definition etc.)Jul

2016 – Jun

2017F

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

USD per year

these may or may not be

tbc The estimation will be done with background

Consultant The Consultant will provide a clear description of the indicator and the

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and engineers; technicians; skilled workers; unskilled workers; administrative staff and other elementary occupation), and by gender

cumulative indicators: they may instead give a snapshot per project

information and data extracted from projects being implemented or completed

data used 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 n/a Yes Once Information Tunisian Programs and

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designed and implemented to promote more efficient and equitable allocation of government resources

received from Tunisian authorities that new MIS will be used to record information and to guide policy decisions

ministries/EIB/ILO 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

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 indicator One: Set of monitoring indicators

Report delivered


Consultant / EIB

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Intermediate Result indicator Two: Guidance note on monitoring indicators

Report delivered


Consultant / EIB


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

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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


Mhamed Dalla, Advisor to the Minister, MTCENMhamed Dalla [email protected] Sgheir, [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 implementation support 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 ended on July 7, 2016. A new minister and deputy minister for ICT, and new technical advisors were appointed in August 2016. The World Bank team discussed and confirmed the interest and activities of the MENA TF with the new team, during two missions, in September 2016 and December 2016. The team had regular biweekly conference calls with the new team, and confirmed objectives and priorities, and drafted terms of reference for the recruitment of experts.

During the December mission, and during follow up conference calls, the team mission discussed with the MTCEN (for components 1, 2, 3, and 5) and with the Ministry of Education (for component 4) the overall plan of technical

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assistance and engaged with 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.

For component 1, three EOI for individuals consultants (lawyer, economist, facilitator) to assist with Code du Numerique were launched in late December 2016. The selection process to recruit the lawyer and the facilitator was completed on January 10, 2017 and consultants are currently in place. The deadline for the expression of interest to recruit an economist has been extended to January 30, 2017, in order to get a better pool of candidates.

The consulting firm for the e-education component of the project (component 4 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. The December mission also noted the progress of the activities carried out with the Ministry of Education. A Draft Operational Development Plan for the Digital School 2016-2020 (PSEN) Strategic Plan has been prepared, and will be validated and finalized by the end of January 2017. Approval by the government is expected in March 2017, Completion of the two main outcomes provided for in the Transition Fund Agreement. The procurement process for the second planned activity, assistance and evaluation of the preliminary phase of the PSEN will be launched in January 2016 for delivery in early 2018. The conclusion of this activity will represent completion Partial or complete interim results of the Transition Fund grant, depending on the current level of implementation.The December mission also noted changes in the details of the evaluation (Activity 2) as a result of changes in the context, including the launch of the Digital School Prefiguration Phase on 16 December 2016. These changes could involve the need to update the planned activities and program results of Transition Funds. Other changes noted by the mission include the Ministry of Education's desire to integrate other elements into the evaluation (Activity 2), including the practice of teachers in the classroom and the management of the school. This expansion could be the subject of a process of updating the grant agreement of the Transition Fund, if the Tunisian government so wishes.

Next Actions to be Taken Responsible Party


Complete recruitment of Individual Consultant Terms of Reference for

1. Regulatory and Industry Experts to support the Digital Economy Code

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

2/28/2017

C. Implementation Status of Components Component 1: Deepening reforms on telecoms liberalization and broadband regulationPrevious Rating: Not Applicable Current Rating: Moderately


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

534

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.

For component 1, three EOI for individuals consultants (lawyer, economist, facilitator) to assist with Code du Numerique were launched in late December 2016. The selection process to recruit the lawyer and the facilitator was completed on January 10, 2017 and consultants are currently in place. The deadline for the expression of interest to recruit an economist has been extended to January 30, 2017, in order to get a better pool of candidates.

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


Status of Implementation: Not yet started

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.

Terms for reference for this activity were prepared and shared with the counterparts in December 2016 and the team is expecting counterpart feedback on the draft TORs.

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 costed, time-bound action plan for the achievement of the goals of the E.N. strategy.

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.

The December mission also noted the progress of the activities carried out with the Ministry of Education. A Draft Operational Development Plan for the Digital School 2016-2020 (PSEN) Strategic Plan has been prepared, and will be validated and finalized by the end of January 2017. Approval by the government is expected in March 2017, Completion of the two main outcomes provided for in the Transition Fund Agreement. The procurement process for the second planned activity, assistance and evaluation of the preliminary phase of the PSEN will be launched in January 2016 for delivery in early 2018. The conclusion of this activity will represent completion Partial or complete interim results of the Transition Fund grant, depending on the current level of implementation.

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The December mission also noted changes in the details of the evaluation (Activity 2) as a result of changes in the context, including the launch of the Digital School Prefiguration Phase on 16 December 2016. These changes could involve the need to update the planned activities and program results of Transition Funds. Other changes noted by the mission include the Ministry of Education's desire to integrate other elements into the evaluation (Activity 2), including the practice of teachers in the classroom and the management of the school. This expansion could be the subject of a process of updating the grant agreement of the Transition Fund, if the Tunisian government so wishes.

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


Status of Implementation: Not yet startedD. Disbursements of Transition Fund Funds for Direct Project Activities


(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

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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




Collection



2016A

Jan-Dec

2017F

Jan-Dec

2018F

Jan – May 2019

F

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

document

Primary legislation (basic

Revise the basic

Introduce full set

Yearly Ministry in charge of Digital


537

Government telecom Law - PPP), secondary telecom legislation and decisions of the sectoral regulator INT in need of revision

telecom law to introduce the notion of Dominant Operator and strengthen institutional framework for INT and for the universal access fund

of wholesale broabdand offers in line with best practice

Economy / sector regulator 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 prepared approach for 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):

539

Intermediate Result indicator One: Availability of key transparency of regulation instruments

document No mandatory public consultation process for the INT established following public consultation on the said process

Introduce 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



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 Documen Absence of a Availa Yearly Ministry in Ministry in

540

One: t 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 execu



541

tion 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 Evaluations

and solutions testing

Evaluations and

solutions

testing 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 Collect

ed

Yearly Ministry in charge of

Digital Economy

Ministry in charge of Digital

Economy


Intermediate Result indicator Two: Availability of Follow-up Data

Data set

No Follow-up Data

Collected

Follow-up

Data Collect

Yearly Ministry in charge of

Digital Economy

Ministry in charge of Digital

Economy


542

ed

543

Implementing Priority Actions for Competitiveness & Improved Public Services

A. Basic Project InformationActivity Name: Implementing priority public actions to enhance competitiveness and improve public services in Tunisia.Country Name: Tunisia Name of Implementation Support Agency(ies): World

BankName of ISA Project Leader: Simon Carl O’Meally Email of ISA Project Leader: [email protected] Entity: Presidency of the Government (particularly Office of the Prime Minister)

Name and Email of Recipient Entity Contact: Lotfi Bensassi 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;

Total Amount Disbursed (Direct and Indirect in US$): 81,017.82 USD






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.




Brief Summary of Project Implementation Status: Since January 2016, the project has made notable progress. The project has completed a number of important steps: a) a consultancy firm was identified and recruited according to the World Bank's tender procedures for a mission aimed

at the establishment and launching of the Delivery Unit (DU). This this firm completed a number of technical assistance tasks to assist the design of the DU and to assist the development of the necessary legal, operational and policy documents to enable a DU to be formally established (as noted in the following points);

b) an operational manual, tools and strategies have been co-produced with the government and delivered by the consultancy firm, and endorsed by the government recipient;

c) a transitional DU was established to enable task (b) above to be completed, and the recipient is now in the process of transitioning to a permanent DU structure;

d) a decree has been developed and, after a number of important iterations, a final proposal of a decree has been submitted to the Office of the Prime Minister for its final validation, which will then allow for the formal creation of the DU;

e) significant efforts have been dedicated to identifying an executive director and relevant staff members for the DU, and 2 strong CEO candidates have been identified and the recruitment process is about to be launched;

f) after a consultative process with the client, the DU’s key priorities for the next 12 months have been identified as

544

follows: (1) follow-up, monitoring and implementation support to key Tunisia 2020 (investment conference) commitments and projects; and, (2) elaboration and approval of implementation decrees for the Economic Emergency Law. In addition to this, the DU will help establish an inter-ministerial “collaborative leadership” process, which is a process aimed at improving inter-ministerial collaboration and helping key policy stakeholders to discuss and prioritize the government’s priority reform agenda and activities. Other priorities will be addressed as and when they emerge; and finally,

g) the Bank successfully made a transition in ISU task leadership from the Trade and Competitiveness (T&C) Global Practice to the Governance Global Practice (GGP) in order to ensure that the relevant GGP knowledge on setting up DUs in multiple countries could further inform the establishment of the DU (T&C will remain involved).

While this notable progress has been made, the progress is currently rated as moderately unsatisfactory because the permanent DU team has not yet been recruited and, thus, the DU is not yet fully functional (as planned according to the original results framework, below). The change of government (August 2016) significantly disrupted the implementation and slowed down the process, as the project passed from its former leader on the recipient side, to a transitional leader within the administration, and back to the leadership of the direct adviser of the new Prime Minister. This also implied that the project had new counterparts in government who needed to be briefed on the project and its objectives, as well as bring their contributions and visions into the project. The new counterparts have shown excellent leadership as they tried to mitigate the inevitable delays that come with a government transition and have achieved a number of important steps, as outlined above. As such, we anticipate a “satisfactory” performance in 2017.

Selected Actions to be Taken in Next 6 Months Responsible Party Expected Date of Delivery

Publication of the decree to announce the creation of the Delivery Unit Office of Prime Minister (OPM)

1/30/2017

Recruitment of the executive director (CEO) OPM 2/15/2017

Recruitment of team members of the DU OPM 3/7/2017

On boarding of the DU team and capacity building WB/Eurogroup/OPM 3/15/2017

Recruitment of key experts to support DU implementation WB 3/1/2017

Launch of activities on 2 priorities (1) follow-up on Tunisia 2020; and, (2) Economic Emergency Law (also dependent on DU staffing).

OPM/WB 2/15/2017

Holding a workshop on internal and external communication to further define, develop and operationalize the government/DU communications plan on critical priorities.

OPM/WB/Eurogroup 2/28/2017

DU to convene a collaborative leadership workshop. WB 4/3/2017

On-going training, and just-in-time support and technical assistance to the DU.

WB/Eurogroup 6/15/2017

On-going monitoring and evaluation of the tools and processes at the disposal of the DU and necessary adjustments

WB/Eurogroup 6/15/2017

Framework contract to be developed for a new consultancy arrangement to support the implementation phase of the DU.

OPM/WB 6/15/2017

C. Implementation Status of Components Component 1: Establishment and Strengthening of the Delivery Unit

Previous Rating: Not Applicable Current Rating: Moderately Unsatisfactory

Cost (US$): 624,000

Sub-component 1.1: Set up and launch

Status of Implementation: The Delivery Unit is ready for creation and launch of activities. The final decree is

545

nearly ready for publication, 2 potential CEOs have been identified, work plan in process of finalization and all tools and process are ready. However, it is rated moderately unsatisfactory because the unit is not yet formally launched.Sub-component 1.2: Providing the necessary tools for efficient program management and implementation

Status of Implementation: The consultancy firm has delivered the tools and documents as agreed with the government and the World Bank. The deliverables are as follows:1. Identifying a suitable and effective legal and financial framework for the Delivery Unit leading to the official creation of the DU by decree;2. Document outlining a short term and mid-term work plan on 5-8 key priorities;3. A TOR for the acquisition of an IT management tool (including internal dashboards and progress/process monitoring systems) that will allow the DU to facilitate and monitor the implementation of its work program;4. HR study to define HR needs;5. Elaborating and identifying tools for the monitoring and evaluation for impact including the development of clear impact indicators;6. A document with guidelines on internal and external communication strategy; and,7. A report to assist the DU in its anchorage in its environment with a clear and complete mapping of relevant stakeholders as well as the planning of a workshop to introduce together with the Prime Minister’s Office the DU, its mission and objectives.The consultancy firm has also worked very closely with the Government team in place, in a co-production mode, and therefore, they have spent an important amount of time in Tunisia (more than 15 trips). Sub-component 1.3: Capacity Building of the team

Status of Implementation: Capacity building activities were undertaken for the preliminary/transitional team. The capacity building of the DU team will be implemented in full as soon as the CEO and initial team members will be recruited.

Component 2: Support to team and partner institutions during implementationPrevious Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 780,000Status of Implementation: Will be implemented as soon as the CEO and first team members will be recruited.

Component 3: Communication and transparency

Previous Rating: Not Applicable Current Rating: Moderately Unsatisfactory

Cost (US$): 326,000

Sub-component 3.1: Strategic communication with counterparts and involved stakeholders

Status of Implementation: Initial strategy developed and approved.Sub-component 3.2: Strategic communication with beneficiaries

Status of Implementation: Strategy under development.Sub-component 3.3: Transparency and accountability platform

Status of Implementation: TORs are being discussed between the different parties (WB/OPM) and will be developed and finalized in 2017.


(US$)

(x)


(y)

Total (US$)

546


0 1,730,000 1,730,000


0 0 0

Actual Amount Disbursed (c): 0 36,017.82 36,017.82

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 500,000 600,000 1,100,0002018 593,982 0 593,982


45,000 93,400 138,400

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

Unit of Measure Baseline Status as of December 2016



Data Collection

ResponsibilityDescription Jan – Dec

2016A

Jan – Dec

2017F

Jan – Jul

2018F

Target

Output 3.1.2: Government bodies and institutions including Local governments supported

Y/N -

Since the DU has not been officially formed

and staffed, this output has not been

accomplished yet.

yes yes yes Y AnnualProject

Implementation Reports

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


2016A

Jan – Dec

2017F

Jan – Jul

2018F

Target

Output 5.1.1: Documents Produced and Endorsed

# 0

All support documents, operational manuals, tools and procedures have been developed

and outlined in documents delivered

by Eurogroup Consulting.

10 30 50 50 Annual Progress Report DUNumber 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

Zero as of now. The principal decree, to

establish the DU, has been developed and

drafted and is nearing finalization.

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

4 staff members in the temporary DU team

have received a number of on-the-job

trainings. They also co-produced all the deliverables with

Eurogroup Consulting.

25 50 70 70 Annual Progress Report DUNumber of public sector staff receiving training in the DU and client agencies to improve capacity for enhanced service delivery to constituents

548





Data Collection


2016A

Jan – Dec

2017F

Jan – Jul

2018F

Target

Indicator one: Establishment of the Delivery Unit

Delivery Unit 0

The DU has not been officially established as

of December 2016. However, the decree will be finalized and

published by the end of January 2017 and

formal establishment is anticipated for February 2017.

Establishment of the unit completed,

fully functioning

1 1 1 Annual Project Implementation

Reports, Decrees, Laws

etc.

DU within the OPMLine

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

Zero. Since the DU has not been created

officially, no actions could under-taken and

implemented.

10 18 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.

549

Indicator three: Establishment of an open communication platform

Communication platform 0

The platform will be established once the

DU is created and staffed. Terms of Reference and a strategy for open

communication have been developed.

Establishment of the

platform completed,

fully functioning

1 1 1 AnnualProject

Implementation Reports

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.

Intermediate Results Indicators

Component 1 - Establishment and Strengthening of the Delivery Unit

Intermediate Result indicator one: Organization structure, staffing and skill requirements

Organization structure, staff skills, procedures defined.

0

HR requirements identified and

recruitment strategy developed. Not fully

implemented as recruitment is not

launched/completed.

1 1 1 10 6 months Progress Report OPM, DU Corresponds with Transition Fund Output 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

DU Chairman has been appointed by the

Prime Minister. CEO and staff members to be recruited in 2017.

5 10 10 10

6 months Progress Report OPM, DU Delivery Unit is adequately staffed

Intermediate Result indicator three: Toolkit, operating manuals and procedure defined

Toolkits and operating manuals 0

These documents have been produced in

collaboration with the government. They are living documents and

will be further updated in the course of 2017

to respond to emerging priorities.

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

IT system 0The consultancy firm

recruited, with consent of the

1 1 1 1 6 months Progress Report DUCorresponds with Transition Fund Output 5.1.2 “Structures established”. IT platform is operational

550

in place

government, has concluded that

traditional IT tools (Office, in particular

excel) are sufficient to execute the work of

the DU. A second review of IT needs will

take place in 2017.

Intermediate Result indicator five: Tailored training materials are prepared

Course-pack & training modules in

place0

Some training materials already produced by the

Eurogroup Consulting e.g. how to address priorities. Further

materials to be produced in 2017.

1 1 1 1 6 monthsCourse-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

The temporary team appointed by the

former adviser to the Prime Minister, led by

Mr. Besrour was trained. However,

since the CEO and the team members are not

yet recruited, the training of the staff

could not be completed as per the

initial objectives.


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

Zero achieved. This will be accomplished once the final staff will be

operational and as per the needs of the 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

# of operations

0 JIT services were provided to the

temporary DU team: e.g. piloting a “deep

dive” to address priorities. However, since the DU has not

been created and

5 10 10 10

Annual Progress Report

DUCorresponds 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.

551

encountered during implementation

staffed, the just-in-time advisory services were not applicable.

Intermediate Result indicator two: Punctual capacity building workshops for partner institutions and line Ministries

# of workshops 0

This will be accomplished once the

CEO of the DU is in place and the DU officially created.

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/experts

sharing country experiences

0

This relates to implementation and will be accomplished

once the staff are recruited.


DU & feedback

from training participants

Number of partner institutions benefitting from capacity building.

Intermediate Result indicator four: Just-in-time advisory services for partner institutions and line Ministries

# of operations 0

Since the DU has not been created and

staffed, this training is not yet applicable.


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

Since the DU has not been created and staffed, no actions

could be implemented.


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 strategy

0

Initial working strategy developed, but not

fleshed out further or adopted yet

0 0 0 0 Annual

Progress Report

DU

Communication framework based on political economy analysis and strategic stakeholder management adopted.

552

Intermediate Result indicator two: Communication material

# of communication

products0

Zero as of now. The communication

material production is in process. However, it will be finalized once the CEO is recruited

and in place.


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

Since the DU has not been created and staffed, no events

could be organized.

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 0TOR development in process and will be finalized in 2017.


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

Since the DU has not been created and

staffed, no surveys could be implemented.

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.


553

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. Nizar ATA; [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 128,000 (Government of Tunisia)



1/21/2016


11/24/2016


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.


Unsatisfactory

Rating for overall implementation progress: Unsatisfactory

Brief Summary of Project Implementation Status: The implementation of Tunisia Work Readiness Program has not started yet. The PIU was appointed by the Minister on November 24, 2016; with a new coordinator. The team is actually updating the Project Procurement Plan (PPP) and finalizing the General Procurement Notice (GPN) and the Expression of interest (EOI) of the Study on priority sectors; Which will be submitted to the Bank for non-objection.



The submission of PPP, GPN and EOI of the Study on priority sectors MVTE 1/13/2017

Approbation by AfDB AfDB 1/20/2017

Shopping of computers for ANETI employment offices and PIU MVTE and AfDB 3/15/2017

Recruitment of Consulting firm to conduct the study on priority sectors. MVTE 4/28/2017

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 5/19/2017

Recruitment of Trainer in project management and monitoring for ANETI MVTE and AfDB 5/19/2017

554



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.)


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

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 90,000D. Disbursements of Transition Fund Funds for Direct Project Activities


(x)


(y)

Total (US$)


2,460,000 2,460,000


2,460,000 2,460,000

Actual Amount Disbursed (c): 0 0

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 350,000 445,000 795,0002018 830,000 835,000 1,665,000

555


0 100,000 USD (for AfDB) 100,000 USD

556


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.)2016A

2017F

2018F

2019F

2020F

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 Number 0 100 150 NA NA NA Annual Project PIU + Steering Number of

557

Three: Public sector staff trained (Employment advisors)

Reports committee employment advisers trained in profiling, mentoring, coaching job seekers

Intermediate Result indicator Four: Stakeholders trained (Civil society associations)

Number 0 30 70 NA NA NA Annual Project Reports


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

558

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 Three: Action plan endorsed (National Employment Action Plan developed and approved)

Report 0 NA 1 NA NA NA Once Strategy document


National 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


559

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)

Total Amount Disbursed (Direct and Indirect in US$): USD 0 (AfDB); USD 186,315


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.

The project is expected to 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.


Satisfactory

560






Brief Summary of Project Implementation Status

Following the project’s approval by the steering committee in May 2016, the two ISAs have been in contact with the Ministry of Development, Investment and International Cooperation (MIDCI) which is the main beneficiary and executing government partner for this grant to prepare the ground for a swift kick-off of project activities. The MDICI will be formally establishing the Project Steering Committee in early 2017 to spearhead project activities with representatives from key beneficiary departments and entities (DGP, DGDR, INS, ITCEQ). Note that the change of government that took place in august 2016 including minister heading MDICI has caused some delays in project start.

AfDB activities: The AfDB held 2 meetings with MDICI to discuss a detailed timetable for the implementation of r 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.

AfDB has shared with MIDCI has shared with the team some examples of such documents to assist them I n preparing them. The legal department of AfDB has also prepared the grant agreement which should be signed over the upcoming weeks.

OECD activities: Following discussions with MDICI held in June 2016 and in order to avoid any delays in project implementation while the Project Steering Committee is set up, OECD-executed activities under components 1.A and 3 of the project started implementation in September 2016. Activities under component 2.A are awaiting confirmation of the focal point at the level of the MDICI (see 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: Satisfactory Cost (US$): 1,883,985Sub-component 1.A: Benchmarking Tunisia’s economic performance and policies (OECD)Benchmarking 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: Over the last 6 months of 2016, a Tunisia desk has been created in the Economics Department. It started to collect performance and policy indicators to benchmark Tunisia against OECD countries and key emerging economies. The Desk has produced a first set of economic projections and a note on

561

recent developments and policy options in the context of the OECD Economic Outlook 100. A representative of Tunisia participated to the Short-Term Economic Projections (STEP) meeting in November 2016 to share its views on recent developments in Tunisia and discuss future developments and risks across the world as seen from Tunisia. The Tunisia Desk attended the Tunisia 2020 conference on investment and met with Government officials to identify topics to be covered in the Economic Report of Tunisia to be produced under the project.

In the next 6 months, the Tunisia desk will organise a seminar to present the Going for Growth methodology, product market regulation indicators and preliminary results for Tunisia. The desk will attend the mission to launch the project. The desk will also visit Tunisia to collect information and discuss the main challenges faced by the economy with Government officials, the business sector, unions, academics, think tanks. Another set of projections and note for the Economic Outlook 101 will be prepared. The desk will also draft Terms of Reference for a secondment programme for government officials.Sub-component 1.B: Enhancing MIDIC forecasting, planning and monitoring capacities (GoT/AfDB)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 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 2 meetings were held to discuss these and a timeline for implementation. Note that the grant agreement is ready and should be signed shortly which will accelerate project execution.

Component 2: Support to inclusive regional development through improved regional statistics and M&E capacityThis component includes two complementary and mutually-reinforcing components aimed at strengthening the capacity of the GoT to design and implement regional development policies through improved statistics and monitoring and evaluation systems.Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 1,118,160Sub-component 2.A: Support the GoT in developing a system of internationally comparable indicators at the sub-national level (OECD). 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 has contacted the beneficiary entity (Directorate-General for Regional Development at the MDICI) to set a detailed implementation plan, identify priorities and organize the first field mission. Once these exchanges are concluded, the OECD team will carry out the following activities:

Sending a questionnaire to the Tunisian authorities to gather information regarding the organization, 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.

Based on the above-mentioned questionnaire and on other sources of information, the OEC will prepare a first “institutional mapping” on regional statistics to be discussed with GoT and define the subsequent steps for the component.

Sub-component 2.B: Enhance effectiveness of Tunisia’s regional development policies through strengthened M&E capacity and improved indicators (GoT/AfDB). 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

562

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 2 meetings were held to discuss these and a timeline for implementation. Note that the grant agreement is ready and should be signed shortly which will accelerate project execution.

Component 3: Support Tunisia’s open data agenda through a new statistical dissemination infrastructure (OECD) 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: As part of Phase 1 of the project ‘blueprint for statistical dissemination at INS’, several missions have taken place (in Tunis, but also in Rome at iSTAT premises) to allow the project team (INS and OECD) to specify in more detail INS priority requirements and technical constraints. A first version of the ‘Blueprint for statistical dissemination at INS’ has been drafted and is currently being complemented from both sides. This will lead to a detailed project scoping and planning.

Phase 1 is expected to be completed by February 2017, a month in advance of the initial plan, and then give way to the iterative delivery phase of the project. Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 541,872

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 already communicated to MIDIC a list of preparatory tasks that could be done and 2 meetings were held to discuss these and a timeline for implementation. Note that the grant agreement is ready and should be signed shortly which will accelerate project execution. Meanwhile, AfDB has shared with MIDCI draft ToRs to facilitate preparation of the task manager one..Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 365,000


(US$)

(x)


(y)

Total (US$)


AfDB: 1,830,000 OECD: 1,848,017 3,678,017


AfDB: 2,298,900 OECD: 0 USD 0

Actual Amount Disbursed (c): AfDB: 0 OECD: 62,062 62,062

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 AfDB: 0

OECD: 550,332AfDB:30,000

OECD: 590,435AfDB:30,000

OECD: 1,140,7672018 AfDB:300,000 AfDB: 500,000 AfDB:800,000

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OECD: 259,519 OECD: 253,519 OECD: 513,0382019 AfDB:500,000

OECD: 103,291AfDB: 500,000OECD: 28,859

AfDB: 1,000,000OECD: 132,150


OECD: USD 124,253 AfDB: USD 100,000OECD: 0

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/

MethodologyResponsibility

for Data Collection


Y1 F Y2 F Y3 FPDO 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.

565

Indicator 1.2: Availability of structural indicators and policy recommendations

Quantitative

Tunisia not participating

- 1 (interim) 3 (interim and main report)

Annual (bi-annual main report and interim reports)

OECD Going for Growth publication

PIT Inclusion of Tunisia in the 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

566

Indicator 2.2: Diagnostic of the governance of statistics for regional development developed

Quantitative

None - 1 1 Once Diagnostic report, minutes of Working Party Meeting

PIT/OECD Diagnostic report , including targeted recommendations, to be peer reviewed by the 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

567

568

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 and Governance

Name and Email of Recipient Entity Contact: Minister Abid Briki, [email protected]





5/30/2016


1/9/2016


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).

569




The project with Tunisia is part of a regional project which will benefit stakeholders in Tunisia, Morocco and Jordan.


Satisfactory



Creation of a dedicated team to support the project

Following the project approval by the Steering Committee of the MENA Transition Fund on 30 May 2016 in Rabat, the OECD has engaged in close consultation with the focal points for the project in the Ministry of Civil Service and Governance to prepare the official kick-off in September 2016 and ensure commitment of Tunisian stakeholders.

Three Project Working Group meetings were organized in 7th September, 7th October and 9th November. These meetings gathered together representatives from all ministries with a stake on youth policies. The Project Working Group agreed on the project action plan, identified non-government stakeholders (e.g. civil society, youth associations, youth activists) to reach out to involve them throughout the project and fine-tuned the agenda of the launching conference.

First coordination meeting on 15 September 2016 in Paris

A first coordination meeting was organized on 15 September 2016 at the OECD headquarters in Paris, which brought together the focal points for the project from Jordan, Morocco and Tunisia. The meeting was opened by OECD Deputy Secretary of Staff, Mr. Juan Yermo. Together with the OECD project managers, the meeting set up the implementation mechanisms for the project (e.g. Project Working Group) and was successful in defining a timeline for the delivery of the project activities.

How to engage youth in policy-making: A priority issue in the 2016 MENA-OECD Ministerial Conference on 3-4 October 2016 in Tunis

In the framework of the 2016 MENA-OECD Ministerial Conference, held on 3-4 October 2016 in Tunis, the regional youth project was presented to an audience comprising 500 participants, including 36 official delegations, 14 MENA countries and 22 OECD member countries at the level of ministers, state secretaries and ambassadors. In his opening speech, Mr. Abid Briki, Minister of Public Service and Governance in Tunisia, stressed the importance of addressing the needs of youth and providing opportunities for them to thrive in economic, social and political life.

In the MENA-OECD Governance Forum on 3 October 2016, the session " A voice for all parts of society in policy-making" provided the space for high-level representatives from Jordan, Morocco and Tunisia and representatives from the European Youth Forum and the youth-led association “Leaders of tomorrow” from Jordan to discuss effective mechanisms to engage youth in the policy-making process and provide access to economic opportunities and employment. The participants called upon the OECD to launch a Youth Day to highlight and share good practices of partnership approaches between government officials and youth to address the challenges faced by the younger generation.

In a bilateral meeting with the OECD Secretary General together with the Minister of Civil Service and Governance in Tunisia, the Minister of Youth and Sports in Tunisia, the Secretary of State for youth in Tunisia, the Secretary General of the Ministry of Youth in Jordan, and the Director of Cooperation, Communication and Legal Studies of the Ministry of Youth and Sports in Morocco, all sides emphasized the urgency to give young

570

people a greater voice in public life. The OECD Secretary General stressed the readiness of the OECD to support strengthening the public governance frameworks for an effective formulation and implementation of national youth policies and creating new mechanisms and channels for young people to engage in and beyond this process.

The Ministerial Conference featured the session “Creating opportunities for youth” with the participation of the OECD Secretary-General and Nobel Prize awarded Tunisian National Dialogue Quartet, which underscored the importance of social dialogue as a precondition for the success of governance and competitiveness reforms.

OECD participation in international events and donor coordination

The OECD has continued to reach out to international experts, peers and NGOs to partner up in the implementation of project activities and identify good practices in both OECD and MENA countries. In the past few months, the OECD secured the commitment of several OECD countries to support the project as peers and/or experts including France, Canada, Slovenia, Italy and Ireland. Communication is ongoing with other OECD interested countries as well. The OECD has also reached out to renown international NGOs (such as Youth Policy) and the European Youth Forum. The OECD’s participation in The Mediterranean Forum of the Anna Lindh Foundation helped to underline the importance of the specific issue of youth engagement in public life to counter forces fueling polarisation and extremism, the latter being the topic of the Forum. The OECD’s participation in this event also helped to push the youth engagement agenda forward among participants, in terms of stressing the importance of not only looking at capacity building activities for youth and opportunities for dialogue, but to also to think of the public governance of youth issues. The OECD has also attended the monthly meeting of international organizations’ representatives in charge of youth projects in Tunisia.

Launching conference on 23 November 2016 in Hammamet, Tunisia

An official launching conference at high political level was held on 23th November in Hammamet, Tunisia. It gathered more than 200 people from public administration and civil society organizations from the national and local levels, as well as well as academics and parliamentarians. It was agreed with the project focal points and the Project Working group that the first fact finding mission will take place in the beginning of February 2017, in view of the preparation of the mapping of Tunisia’s public governance framework to formulate and implement the Integrated National Youth Strategy 2016-30. This mission will include peers from OECD countries to enrich the discussions with good practices and lessons learned from OECD member countries and inform the identification of priority areas to be included in the mapping and during the upcoming activities to be organized.


A questionnaire will be sent to all stakeholders Project working group Early 2017

First fact finding mission Project implementation team February 2017

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.


571

Sub-component 1.1: Strategic mapping of Tunisia’s public governance framework to prepare and implement the Integrated National Youth Strategy 2030

Status of Implementation: Initial discussions conducted with key governmental and non-governmental stakeholders during the missions held on 7 September, 7 October and 9 November and ongoing research is being conducted. An initial draft analytical framework for the mapping and the questionnaire to be distributed to key stakeholders in Tunisia and that would feed into the mapping was developed. Sub-component 1.2: Capacity building for an integrated approach to the delivery of youth policy

Status of Implementation: A first conference at high political level was held on 23th November in Hammamet, Tunisia and gathered more than 200 people from all ministries with a stake on youth policies, as well as civil servants from deconcentrated administrations attached to the ministry of Youth and Sports, young people from the 24 governorates of the country, as well as parliamentarians and academics.The conference was opened by the minister of Civil service and governance, the minister of youth and sports, the Director General of the “Institut Tunisien des Etudes Stratégiques” who will prepare the methodology of the National Youth Strategy and the Political advisor of the USA embassy to Tunisia.The conference was moderated by the Secretary of State to youth and the manager of the OECD-MENA Governance program. In the afternoon, three breakout sessions were dedicated to open discussion with young people on i) How to ensure effective coordination between all stakeholders at the central and sub-national level, ii) How to strengthen communication tools and involving youth in the Strategy across the different levels of government, and iiii) How to reinforce youth participation in public life.

As for the second capacity building activity, the date and exact topic of the activity will be agreed upon with the Project Working Group in due course.Sub-component 1.3: Regional conference for MENA countries on the formulation and implementation of national youth strategies [Regional component]

Status of Implementation: The first regional conference is expected to take place before September 2017, tbc. It will focus on the progress achieved by all three countries in developing and implementing national youth strategies and on the key components that are required to ensure the success of these endeavors such as coordination, communication and monitoring and evaluation.

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: The date and exact topic of the activity will be agreed upon with the Project Working Group in due course.Sub-component 2.2: Regional conference for MENA countries on the institutional and legal framework for inclusive youth engagement in public life [Regional component]

Status of Implementation: The second regional conference is expected to take place before September 2018, tbc.

572

The exact topics the Conference will cover will be identified by the Project Working Group.

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: Satisfactory Cost (US$): 379,250Sub-component 3.1: Capacity building to disseminate innovative tools, mechanisms and channels for youth engagement

Status of Implementation: The date and exact topic of the activity will be agreed upon with the Project Working Group in due course.Sub-component 3.2: Good practice guide to engage youth through innovative forms of participation in policy-making and public governance

Status of Implementation: Initial research and compiling of good practices for the guide is underway based on communication with peers from OECD countries as well as the participation of peers from Belgium, France, Jordan, Germany, Slovenia and Tunisia in the launching conferences that were held in Jordan and Tunisia end of 2016.Sub-component 3.3: Regional dialogue on innovative forms of youth engagement in policy-making and public governance [Regional component]

Status of Implementation: The second regional conference is expected to take place before September 2019, tbc. The exact topics the Conference will cover will be identified by the Project Working Group.


(US$)

(x)


(y)

Total (US$)


1,208,730 USD 1,208,730 USD


0 USD 0 USD


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 200,000 USD 200,000 USD 400,000 USD2018 200,000 USD 200,000 USD 400,000 USD2019 200,000 USD 187,723 USD 387,723 USD


81,270 USD 0 USD 81,270 USD

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MeasureBaseline




Collection


definition etc.)Aug20

17F

Aug 2018

F

Aug 2019

F

YR 4F

YR5F

Indicator One: Number of Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Nr. of reports 0 0 1 2 - - Annually Progress Report


Team (PIT)

One OECD Review and one good practice guide

Indicator Two: Number of CSOs, women or youth groups engaged and empowered by the local government Quantitativ

e 0 0 2 4 - - Annually Progress ReportProject



Indicator Three: Number of national institutions, regions, municipalities and youth associations mobilized in youth engagement in public life

Quantitative 0 0 5 15 - - Annually Progress Report


Team (PIT)

National and local institutions encouraging youth engagement in public life.

Indicator Four: Public sector staff trained in engaging youth in public life Quantitativ

e 0 40 80 100 - - Annually Progress ReportProject



Indicator Five: Improved enabling environment and government capacity to implement the Integrated National Youth Strategy



Team (PIT)


Indicator Six: Specific/special Quantitative

0 0 1 3 - - Annually Progress Report Project Implementation

Number of initiatives

574

stakeholder groups engaged in the elaboration, implementation and monitoring of youth policies

Team (PIT)

undertaken by central and local authorities to foster youth representative bodies at the central and local level.


Intermediate Result (Component One): Supporting the implementation of the National Youth Strategy 2015-30 across the different levels of government

Intermediate Result indicator One: Number of review produced and endorsed



Team (PIT)

OECD Review of Tunisia’s Public Governance Framework to formulate and implement the Integrated National Youth Strategy 2030

Intermediate Result indicator Two: Number of capacity-building seminars



Team (PIT)

Two capacity building seminars to promote an inclusive approach to the formulation of the Integrated National Youth Strategy 2030.

Intermediate Result indicator Three: Number of regional conferences

Nr. of conference

s0 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 respective national strategies

Intermediate Result (Component Two): Scaling up the institutional and legal framework for youth engagement in public life

Intermediate Result indicator One: Number of capacity-building seminars


Project

Two capacity-building seminars

575


Intermediate Result indicator Two: Number of regional conferences

Nr. of conference

s0 0 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 institutional and legal framework for inclusive youth engagement in public life

Intermediate Result indicator Three: Specific/special stakeholder groups engaged in the elaboration, implementation and monitoring of youth policies

Nr of local youth

councils0 0 1 3 - - Annually Progress Report Project


Number of initiatives to foster youth representative bodies at the central and local level

Intermediate Result (Component Three): Promoting new forms of youth engagement to mainstream their considerations in public policies and governance

Intermediate Result indicator One: Number of capacity-building seminars

Quantitative 0 0 1 2 - - Annually Progress Report Project


Two capacity-building seminars

Intermediate Result indicator Two: Number of guides produced and endorsed

Nr of guide 0 0 0 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

Intermediate Result indicator Three: Regional dialogue on innovative forms of youth engagement

Nr of events

0 0 0 1 - - Annually Progress Report


Team (PIT)

1 regional conference with youth stakeholders from the MENA region (in particular MOR, TUN, JOR,

576

EG) to discuss innovative forms of youth engagement in policy-making and public governance.

577

Towards Inclusive and Open Governments: Promoting Women’s Participation in Parliaments and Policy-making – Tunisia

A. Basic Project InformationActivity Name: Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making

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]



Total Amount Disbursed (Direct and Indirect in US$): 129,169 USD


5/30/2016


9/1/2016


8/31/2019




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project supports Tunisia in fostering inclusive growth and good governance by leveraging open government policies and mainstreaming gender perspectives in parliamentary operations.

The proposed project provides 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.



578



The launching of the project : On the 3rd of October 2016, the OECD, in collaboration with the Tunisian parliament and main stakeholders, organised a high level launching conference of the project and high level panel discussion that witnessed an international, regional and national participation and a high political and institutional buy-in. The launching conference and the panel discussion that followed, took place in the framework of the Forum and the MENA-OECD Ministerial Conference on Governance and Competitiveness that witnessed the participation of over 500 delegates from 36 MENA and OECD countries, several ministers of international co-operation, investment, economy, and public governance as well as representatives from independent institutions (e.g. Court of Auditors, parliamentarians), civil society and business associations joined the conference and contributed to it becoming an inclusive and vivid forum for exchange and discussion.

The launching conference and panel policy discussion of this project were launched by Mr. Angel Gurria - Secretary General of the OECD, Ms. Annick Girardin - Minister of Civil Service, France, Ms. Neziha Labidi, Minister of Women, Family and Children, Tunisia Ms. Mehrzia Labidi, President of the Women’s Affairs Commission, Member of the Assembly of the Representatives of the People ( ARP), Mr. Abid Briki, Minister of Public Service and Governance, Tunisia, co-Chair of the MENA-OECD Governance Programme Mr. Jesús Gracia Aldaz, Secretary of State for International Cooperation – Spain and Mr. Susumu Hasegawa, Ambassador of Japan in Tunisia, Presidency of the G7 countries .

The high level panel entitled “Women in power for inclusive growth: getting it done” – that followed the launching conference, facilitated discussion on the challenges to women’s access to decision making in public life. The different interventions notified a huge gap between women’s educational achievements and their participation in the labour market, in particular in senior positions. A major obstacle addressed by several speakers is the lacking of social acceptance of working women and women in leadership positions in the MENA region and in Tunisia.

Under the moderation of Mr. Rolf Alter, Director for Public Governance and Territorial Development, OECD, the following speakers contributed to the panel discussion: Mr. Abid Briki, Minister of Public Service and Governance (Tunisia), Mme Mehrzia Labidi, President of the Women’s Affairs Commission, Member of the Assembly of the Representatives of the People (Tunisia), Ms. Annette Kaiser, Head of the German Cooperation (Tunisia), Ms. Aimee Breslow, Sr. Advisor for Democracy & Governance, Middle East Partnership Initiative (U.S. Department of State), Ms. Lucía Hernanz, Project Manager, Spanish Agency for International Development Cooperation (AECID, Tunisia) and Dr. Soukaina Bouraoui, Chair of the Gender Focus Group OECD – Executive Director, Center of Arab Women for Training and Research (CAWTAR). The panel was closed by the remarks provided by Mr. Susumu Hasegawa, Ambassador of Japan to Tunisia.

Preparation for the formulation of the steering committee : the Tunisian ARP and the OECD are currently coordinating with the main Tunisian stakeholders to establish a Steering Committee. A first meeting with the Steering Committee will take place in January hosted by the Tunisian parliament and the OECD will present and discuss the detailed strategy and action plan to be followed during the upcoming 3 years of the project’s implementation.

C. Implementation Status of Components Component 1: Making Parliament and local elected councils more transparent, equitable, and gender-sensitive: This component addresses 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

579

frameworks in Parliament and selected local elected councils: This peer-review exercise will result in developing a country-specific action plan for gender-sensitive parliamentary operations and policy frameworks. Through consultations and analyses, the peer-review will provide policy recommendations including and good practices to be taken in consideration for gender-sensitive policies in parliament, electoral committees and public institutions.

Status of Implementation: A fact-finding mission and peer review will take place in 2017 (second quarter). The assessment will be finalized also within 2017 and a report will be presented to the counterparts (to be confirmed by the Tunisian partners). Sub-component 1.2: country-based capacity building activities to parliamentarians, selected local electoral committees and secretariats

Status of Implementation: The advisory sessions (including MPs & members of the Secretariat – local elected officials) will be organized during the last quarter of 2017. It will support them in fulfilling their mandates to study all laws, regulations and proposals, also through the gender lens (to be confirmed by the Tunisians partners).

Component 2: Strengthening capacity and skills of women electoral candidates at the national and local levels: This component addresses 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 also aims 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: The OECD is planning to organize the fact-finding mission and the peer review in 2018, before the Tunisian legislative and local elections in order to identify existing opportunities and current challenges faced by women candidates and to address them. The final report will be finalized and presented to the counterparts in the same year. (to be confirmed by the Tunisian partners).Sub-component 2.2: Strengthening women’s access and capacities to participate in elections at national and sub-national levels

Status of Implementation: Workshops will be conducted by the end of 2018, with participants consisting of both potential and existing women candidates (from different regions across Tunisia), representatives from civil society organizations (in order to train the trainers (TOT) and representatives that have a role in electoral committees/systems through the Parliament, as well as any main gender institutions in the country. This will provide sustainable solutions to build confidence and capacity for women electoral candidates to run for public office and to assume their role effectively, and the “TOT” aspect of these sessions will proved a cascade effect – multiplying the number of individuals trained. (to be confirmed by the Tunisians partners).

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.

Status of Implementation: This component is scheduled to take place in first quarter of 2019.Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 190,925

580

Component 4: Regional policy dialogue The components will be complemented by annual regional policy 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.

Status of Implementation: This component is scheduled to take place in 2019

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 60,235


(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 End2017 140,000 140,000 280.0002018 140,000 140,000 280,0002019 140,000 21,806 161,806


53,611 0 53,611

581


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)2016- 2017F

2017 – 2018

F

2018-2019

FIndicator 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

0 8 10 annually Project progress reports


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 promote more

582

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


Public sector staff received training in various thematic areas to improve their capacity for better public service delivery

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

583

Yemen Projects

584

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$): Total Direct Costs: OECD: US$ 607,690

AFESD :0

Total Indirect Costs:

OECD: US$ 126,000AFESD: US$ 16,387.94


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.




585






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 July 2016, the OECD and the AFESD continued to engage 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.

Following the coordination meeting with Dr. Mohammed Alhawri (MIC, Coordinator MENA Transition Fund) and Ghaleb Al Ghwaidy (MoJ, Project Leader) in March 2016, the OECD and AFESD 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.

Due to the political situation, the Minister of International Cooperation had to cancel his participation in the ministerial conference of the MENA-OECD Initiative, held on 3-4 October 2016 in Tunis. Nevertheless, Yemen provided input in writing to the Tunis declaration that puts an important focus on building resilience in conflict and post-conflict countries. In addition, the MENA Transition Fund Project with Yemen was presented to the audience to discuss reforms in the justice sector post conflict.

The OECD and AFESD continued to monitor closely the situation in Yemen upon developments and will request an extension of the project. Yemen is facing exceptional circumstances that impede the implementation of the project. However, despite the difficult political and security situation, both technical staff as well as high-level officials in the Ministry of Justice and the Ministry of International Cooperation demonstrates a strong buy-in for the project. The OECD and the AFESD support the extension of the project as will be detailed in a memo to the MENA Transition Fund.


Supervision Mission of OECD Task Manager to Dubai with the Ministry of Justice (in case the Yemeni Ministry of Justice is unable to participate, they will be connected via telephone) to discuss the next steps in light of the project extension and a possible restructuring of the project.

OECD First quarter of 2017

Coordination Dialogue with the AFESD to discuss modalities of the extension and a possible restructuring of the project.

OECD and AFESD First half of 2017

C. Implementation Status of Components 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 previous reports, 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.

586

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 July 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 July 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 July 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.

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.

Previous Rating: Moderately Current Rating: Moderately Cost (US$): 690,310587

Unsatisfactory UnsatisfactorySub-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. An official request from Yemen for a visit to Egypt was received in November 2016. The Ministry of Justice, Yemen and the Ministry of Telecommunication and Information Technology, Egypt will be invited to the MENA-OECD Working Group meeting on 11 February 2017 to discuss the framework conditions of this peer-to-peer exchange.

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 2,774,000


AFESD: 900,000 OECD: 596,430 1,496,430

Actual Amount Disbursed (c): AFESD: 0 OECD: 607,690 607,690

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 OECD: 1,266,310 USD OECD: 1,266,310 USD


OECD: 126,000 AFESD: 16,387.94 US

OECD: 0 OECD: 126,000 AFESD:100,000 USD

588

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

589

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

590

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 (Component Four):

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

591

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


Recipient Entity: Supreme National Authority for Combating Corruption (SNACC), Sana’a, Republic of Yemen


Afrah Badoylan, Chair, SNACC: [email protected]



Total Amount Disbursed (Direct and Indirect in US$): 1,260,336.57






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.





Brief Summary of Project Implementation Status: The project closed on December 31, 2016 while the Bank’s operations in Yemen were suspended. 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 Project Management Unit (PMU) hired an Executive Director, Procurement Officer, Financial Officer, Secretary, Civil Society Coordinator, a Legal Expert, a Monitoring and Evaluation expert and a local STC as the

592




Project Coordinator based in Sana'a. The PMU established its office and procured the necessary goods for its activity.

Shortly after its commencement he 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 led to an implementation freeze.

Nevertheless, SNACC has remained functional throughout the duration of the conflict and continued 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. The Bank’s decision to restructure the Yemen portfolio and allocate more money to emergency operations has made impossible the extension of the project’s closing date hence the project came to a close on December 31, 2016, and the unused funds will be cancelled and returned to the Trustee.

As of December 16, the project’s main achievements were:- A workshop organized in January 2015, in Sana’a for SNACC members and senior staff on Project Scope

and Design- The preparation and advertisement of over 10 ToRs for national and international consultants required to

provide technical assistance to SNACC and YACC; the selection of the consultants was suspended due to impossibility of deploying them in the field

- The study tour conducted by a group of 9 SNACC representatives and the PMU executive director to Romania and Slovenia in November 2014 to learn from the experience of these countries in bolstering the asset declaration sector of SNACC

- The visit of SNACC and YACC representatives to India between January 19 and 24, 2015 to exchange experience with different anticorruption institutions and activists

- The agreement of the Chair of the Yemeni Supreme Judicial Council to establish 2 judge benches in 7 Public Funds Courts in the country that will adjudicate only on anti-corruption cases

- The agreement of the Chief of Staff of the President to approve ICO’s core staff as an ad interim measure before the approval of its By-laws including the organizational structure.

- The agreement of the Chief of Staff of the President to encourage ministries to appoint of information officers in line ministries and establish a nodal agency

- The organization of two workshops for SNACC, YACC, and ICO representative for clarifying the project objectives and activities and for brainstorming on the content of the surveys to be drafted on 7 sectors + RTI+ the National Household Survey on Corruption and Quality of Service Delivery Survey in the Health sector.

- A draft national Survey on citizen’s perception and experience in 7 pilot sectors developed- A national Survey on citizen’s perception and experience of Quality of Service Delivery Survey (QSDS) for

the Health Sector drafted - A three month implementation plan and budget with envisaged activities and involved CSOs prepared by

YACC- Selection of staff for the vacant positions in the PMU – the civil society coordinator, financial officer, legal

expert; monitoring and evaluation expert- The procurement of goods for the PMU office and preparation of list of goods and equipment needed by

SNACC, ICO and YACC.

593

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 before the Bank suspended the operations. The progress achieved under this component is listed above. Because of the operations suspension these activities could not advance during this timeframe and were not finalized.

Sub-component 1.2: Building the capacity of Judges and Prosecution Lawyers of the Public Fund Courts.

Status of Implementation: Because of operations suspension no additional progress was recorded under this sub-component.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 trainees abroad.

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 institutional capacity of ICO which could not be consolidated because of the suspension.Sub-component 2.2: Building the capacity of government to effectively enforce application of RAI law.

Status of Implementation: Progress not recorded for this sub-component during this time frame.Sub-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 information

Status of Implementation: N Progress not recorded for this sub-component due to the suspension during this time frame.

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: - No additional activities undertaken during this time frame under this sub-component.

594

Sub-component 3.2: Creating mass awareness about the right to information by outreaching citizens directly

Status of Implementation: No additional progress recorded under this sub-component.Sub-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: Due to the project closing deadline, the PMU transferred the goods procured for its use to SNACC based on an inventory.


(US$)Direct Cost for ISA-


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: 799,612.57 0 799,612.57

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 N/A N/A $170,000N/A2015 N/A N/A $277,147N/A2016 $201,600

2017 N/A N/A N/A20182019


460,724 19,776 480,500

595


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




Description (indicator definition etc.)Jul

2014 – Jun

2016A47

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 rural population, it will be difficult to

47 Given the current situation on the ground in Yemen the team cannot evaluate the progress achieved during the past fiscal year596

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 orders

Number 0 N/A 4 7 N/A N/A Annual Verify whether the amendments in the

SNACC Amendments in the anticorruption framework reflected in the applicable laws

597

drafted in accordance with TACAP and NDC resolution

anticorruption 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

598

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

Number 0 N/A 90 90 N/A N/A Annual Evaluation of capacity of concerned YACC’s staff in investigation and

YACC YACC has enhanced investigations and documentation procedures implemented by its staff

YACC has enhanced investigations

599

presentation of findings.

Field supervisors received advanced training in investigations, documentation of evidence and presentation of findings.

Number 0 18 18documentation of evidence

Evaluation of capacity of concerned YACC’s staff in investigation and documentation of evidence

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.


600

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$): $2,548,360 (Direct=2,257,835 and Indirect= 290,525)


January 16, 2013


June 19, 2013


Extended from December 31, 2015 toDecember 31, 2017




B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: To improve individual employability and SME capabilities for graduates and firms participating in a pilot scheme and inform related policies and programs.





The project was granted a second one-year extension, until December 31, 2017, from the MENA Transition Fund Steering Committee for both, the recipient executed component and the Bank executed component. The Recipient Executed component remained suspended since March 11, 2015 due to the World Bank’s continued suspension of disbursements under the Yemen portfolio. Given the prolonged conflict and the changing priorities within the country, the Bank Senior Management have recently made a decision to initiate the process of closing and canceling most of the Bank projects, including the Recipient Executed component of the EREP. The CMU will be circulating guidelines to project teams on the closing procedures to be followed. The project team will follow the closing procedures for the Recipient Executed Component once the guidelines by the CMU are provided and the remaining balance of about $1.7 million will be returned to the Trustee.

As for the Bank Executed component of the EREP, it continued to be implemented successfully even during the

601

conflict and the Bank suspension did not affect its implementation and progress. Given its satisfactory implementation, the Steering Committee granted on Dec 13, 2016 a further extension of the Bank executed component in order to allow the Bank to conclude its current analytical and TA activities and continue to undertake additional analytical and technical work relevant to the recovery and development of private sector, SMEs, and employment in the current country context.

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 (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 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. The CRM system used for the EREP implementation and the design of the EREP Matching Grants component both were central to the structure of the BRAVE Project.



Continue the implementation of the newly identified analytical and technical work to be done under the Bank Executed component.

Bank 12/31/2017

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: Bank Senior Management made a decision to initiate the process of closing the Recipient Executed component of the EREP. The CMU will be circulating guidelines to the project team on the closing procedures to be followed.

Final results reported under this sub-component before the suspension include the successful placement of 198 interns in internship positions within firms; out of which a total 128 interns completed the six (6) month internship program. Ninety (90) of them continued working as full time in the same firm they conducted their internship, and 9 of them found jobs in other firms. Meaning 80% of interns that complete the program found full-time employment. In addition, 21 interns from 73 that dropped out also found another job. Due to the suspension and current conflict, the Bank was not able to conduct further follow up with the beneficiaries (interns or firms) to check on their current employment status.

Sub-component 1.2: SME Upgrading


The total number of firms benefiting from the sub-component before suspension reached (204) firms, these 602

results are mainly from the implementation of the 1st Round. Firms that participated on the 1st Round completed the implementation of their BDPs, received their matching grants, and reported improved capabilities after completion of BDS services.

Sub-component 1.3: Project Management


The key management staff including the Project Manager and BDP and HR advisors are no longer available soon after the suspension was in effect. SMEPS had to cancel the contracts for the BDP and HR advisors. SEMPS officers as well as the Financial and Procurement Managers remained as those staff were paid exclusively by SMEPS and were not paid by project funds.

Component 2: Bank-executed activities: Impact Evaluation and Technical Assistance



Sub-component 2.1: Impact Evaluation

Status of Implementation: Completed and reported on previous progress reports.

There were a scaling down of the impact evaluation data collection activities because of the conflict and based on the suspension of the 2nd round. Baseline and Endline data for the 1st Round were successfully collected. The results were captured about the impact of the Business Development Matching Grant and the Internship Program that were implemented under the Recipient Executed component on two recently published World Bank Policy Research Working Papers; The working papers document the short-term impact of the EREP project and provides new encouraging evidence of the positive effects of the matching grants and internship placement programs.

For the Matching Grants, a key policy concern for these programs is whether they cause firms to undertake additional innovative activities beyond what they would do anyway, or whether they are just resource transfers that don’t change firm behavior. The results in Figure 1 clearly demonstrates that firms receiving the grants were 30.3 percentage points (p.p.) more likely to introduce a new product, which is more than a doubling of the 26.5 percent rate in the control group; firms do more marketing (19.8 p.p. increase), introduce new accounting systems (48.5 p.p. increase), and overall are 37.1 p.p. more likely to have undertaken at least one innovative activity. Firms are also more likely to have made a capital investment or used a consultant and being 48 percentage points more likely to say their sales grew over the past year. These results suggest that additionality was a result of the matching grant program.

For the Internship Program, internship’s impact demonstrates that the program did generate new job experience, rather than just substituting for the employment applicants would have received any way. Receiving an internship under the EREP resulted in an almost doubling of work experience in 2014, and a 73 percent increase in income during this period compared to the control group. A short-term follow-up survey conducted just as civil conflict was breaking out shows that internship recipients had better employment outcomes than the control group in the first five months after the program ended.

The results of the Impact Evaluation provides the first such evidence from a fragile state environment showing that even under these difficult circumstances, well-designed programs can succeed in getting firms to innovate

603

and in increasing youth employment outcomes. In addition to being published as World Bank Policy Research Working Papers, the two impact evaluations have been published in peer reviewed journals, the IZA Journal of Labor and Development and the Journal of Development Effectiveness. Sub-component 2.2: Technical Assistance

Status of Implementation: The Programmatic TA implementation is rated as Satisfactory. The Bank managed to successfully conduct two impact evaluations for the recipient executed component (on the impact of the matching grants and on the youth internships), and was able to deliver two prefeasibility studies; one for expanding financial inclusion through postal banking, and another on the prospects of introducing micro-insurance in Yemen. Both were delivered to the client. Three additional activities are currently being implemented or anticipated under the Programmatic TA include:

1. The first is initiating analytical work that assess key aspects of the financial and private sector in Yemen since the conflict. The ongoing assessments focuses on assessing the status of the private sector within the Trade, Construction, Financial, and Agriculture sectors and how the current conflict have disrupted the operations of the private sector. The assessments will inform the identification of short-term investment and policy priorities that will support the recovery and stabilization needs of private sector operations following the end of the conflict. This analytical work is expected to continue to the second quarter of 2017.

2. The second ongoing TA will provide support to the Yemen 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. This TA is expected to continue to the second quarter of 2017.

3. The third activity complements the recently completed Damage and Needs Assessment conducted by the Bank for Yemen. The DNA assessment quantified the damages on physical infrastructures in four cities, the TA will complement the DNA by identifying the basic building materials and the quantities needed of those materials which would be needed for during the reconstruction phase. The aim is to get a picture of the minimum demand that would be needed of such materials and explore the feasibility of an mechanism that would allow for the advance production of those materials in Yemen to support the manufacturing capacity of the private sector in the country. This analytical work is expected to continue to the first quarter of 2017.

Additional analytical work and TA activities are still being explored in collaboration with the CMU and other GPs which aim to support private sector and SME recovery. The activities will allow us to continue to undertake analytical and technical work relevant to the recovery and development of the private sector. Such activities are envisioned to be identified and implemented during 2017.


(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): 1,931,355 326,480 2,257,835E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)

Year Jan-June Jul-Dec Total by Year End2013 (actual) 0 403,833 403,833

604

2014 (actual) 346,287 1,079,015 1,425,3022015 (actual) 345,236 53,832

399,0682016 (actual) 27,698 646 28,344

2017 53,048 51,760 104,808


290,525.38 153,074.62 443,600

605


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.


Cumulative Target Values** Frequency

Data Source/Method

ology



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 Evaluatio

SMEPS

World Bank

Improved capabilities means the firm demonstrates improved product/ process/ or market access

606

out of 164 firms that completed their plans )

n

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 48


Cumulative Target Values**(F: forecast, A: actual)

Frequency

Data Source/Method

ology



definition etc.)

YR 1 YR 2 YR3 YR4Intermediate Results (Component One): Successfully facilitate internships and business services to private enterprises.

48 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).

607

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)


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 women tracked)




Comments: Progress relates to round one (where the target was

Ongoing M&E System/ status reports

Internship Advisors

608

200). Round two data was not reported due to suspension.

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

609

Crisis Support to Microfinance Institutions

A. Basic Project InformationActivity Name: Crisis Support to Microfinance Institutions

Country Name: Yemen Name of Implementation Support Agency(ies): IFC

Name of ISA Project Leader: Matthew Leonard Email of ISA Project Leader: [email protected]

Recipient Entity: N/A – IFC implemented project

Name and Email of Recipient Entity Contact: N/A


Additional Funds Leveraged and Source(s), if any (US$): 300,000 – client contributions

Total Amount Disbursed (Direct and Indirect in US$): $57,359


5/29/2016


7/1/2016


12/31/2019



Secondary Pillar(s): Investing in Sustainable GrowthEnhancing Economic GovernanceCompetitiveness and Integration

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.




Brief Summary of Project Implementation Status: (Al Amal Bank). The transition fund proposal for Yemen was approved in May 2016 and the first tranche of funding was received in July. Some initial activities began during discussion/approval of the grant, as summarized in the last report. During the recent period, IFC began to ramp up support its two partners, Al Amal Bank and Al Kuraimi, although conducting the advisory remotely given the still very difficult political and security situation in Yemen and the ongoing conflict. Despite the remote support, progress has been made with Al Amal Bank in terms of finalizing the SME product design and launching a pilot test on a limited scale, and with Al Kuraimi bank on HR (communications strategy) and internal control (to help it limit risk in its operations). The population continues to suffer from conflict, power and food shortages, and lack of government payments – which has significant negative spillover effects on financial institutions. However, both IFC partners are managing reasonably well despite this and need continual support.



610

Finalize the SME product pilot with Al Amal Bank and conduct a pilot review workshop.

IFC and Al Amal Bank

2/28/2017

Deliver marketing training to Al Amal Bank’s SME staff in preparation for roll-out.

IFC and Al Amal Bank

2/28/2017

Provide further HR support to Al Kuraimi on implementation of the communication strategy, performance management, the remuneration framework, and training.

IFC and Al Kuraimi

6/30/2017

Conduct an initial workshop with Al Kuraimi board members on family governance to kick off this new component.

IFC and Al Kuraimi

4/30/2017

Review Al Kuraimi MF Bank’s agent banking and mobile money pilot and provide recommendations before scale up

IFC and Al Kuraimi

5-6/30/2017

C. Implementation Status of Components Component 1: Crisis Management


Cost (US$): 85,000

Sub-component 1.1: NPL Management

Status of Implementation: While there have been few new activities on this sub-component during the period, Al Kuraimi has been implementing some of the recommendations and suggestions resulting from the knowledge exchanges IFC has organized between ENDA (Tunisia), Al Majmoua (Lebanon) and FMFI (Syria) earlier, which has helped the bank bring down NPLs during the period. Al Amal has also taken similar measures but continues to suffer due to the government salary crisis, which is affecting secondary income sources and business in general in the country.Sub-component 1.2: Strengthening Internal Controls

Status of Implementation: IFC’s internal audit and control expert has been working remotely with Al Kuraimi’s internal control and risk teams during the period on the following: fine-tuning the risk matrix and incident reporting tools (in conjunction with risk management unit), finalizing the internal control/operational risk management manual and reporting framework to govern their day-to-day control activities, and holding workshops to help reduce the overlap between internal audit and control teams.

Component 2: Human Resources



Cost (US$): 115,000

Sub-component 2.1: Reviewing and strengthening HR

Status of Implementation: IFC’s two HR experts have been working remotely with Al Kuraimi’s top management and HR team to finalize a Communication strategy (following the earlier Communication Audit) and translate it into a SMART action plan with specific tasks assigned to specific individuals and an implementation timeline. Implementation on the same has begun, including awareness sessions and creation of sub-teams for specific tasks. Also, a comprehensive scope of work (SOW) has been developed for phase II HR support, focused on implementation of the communication strategy, support on introducing/rolling out the new performance management system, revising the remuneration framework, and fine-tuning existing training modules.

611

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: Moderately Satisfactory


Cost (US$): 220,000

Sub-component 3.1: Crisis Product/Adjustments

Status of Implementation: No new activities.Sub-component 3.2: New Products (SME)Status of Implementation: During this reporting period, IFC has resumed its remote support, training and coaching to Al Amal Bank to launch and pilot its new SME product despite the difficult situation, but at a reduced scale. The support provided has included: 1) refining the product specifications, so that the product remains relevant to the market given the current context; 2) adjusting the pilot plan so that the team can test the product despite the political and security constraints; and 3) launching the product pilot and providing implementation support. To date 36 loan applications have been received; 16 of these applications were approved and 10 were disbursed, with a total value of over USD 100,00049. In addition, continuous coaching, training and assistance were provided through the IFC’s SME consultant remotely. This has taken the form of almost daily update calls, participation in weekly credit committee meetings as well as virtual workshops on relevant topics such as customer service and cross-selling.Sub-component 3.3: New Products (Housing)Status of Implementation: N/A

Component 4: Mobile banking and further capacity building

Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 200,000 Sub-component 4.1: Mobile banking and further capacity building

Status of Implementation: Al Kuraimi has been piloting a new mobile money and agent banking channel as a means to both increase outreach (including to rural areas) and also to provide better services to its existing customers. In the coming period, an IFC digital finance expert will provide support to review the agent banking and mobile money pilot and provide recommendations to Kuraimi before full scale roll out or scale up. Sub-component 4.2: Corporate GovernanceStatus of Implementation: On corporate governance, IFC has developed a comprehensive terms of reference for a family governance assignment with Al Kuraimi (a successful family owned bank) to help them develop a family constitution and stronger governance mechanism. A governance expert has been identified and a date will be set soon for an initial workshop and training.Sub-component 4.3: Financial ManagementStatus of Implementation: N/A


Previous Rating: Choose an item. Current Rating: Choose an item. Cost (US$): 45,000Sub-component 5.1: Facilitating Knowledge Exchange

Status of Implementation: N/A

49 1 USD = 250.25 YER. This is the exchange rate used in Al Amal Bank’s monthly report for November 2016.

612


(US$)

(x)


(y)

Total (US$)


665,000


665,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End20132014201520162017 85,000 95,000 180,0002018 110,000 120,000 230,0002019 100,000 50,000 150,0002020 50,000 50,000


35,000 35,000

613




Unit of Measure

BaselineCumulative Target Values**

FrequencyData Source/ Responsibility

for Data Collection


etc.)2016 (A) 2017 (F) 2018 (F) 2019 (F) 2020 (F) Methodology

Businesses received business support/ advisory services or financial investment

Number 02 (KIMB and

AMB) 2 2 2 - Annual IFC IFC

Number of reports (assessment/surveys/manuals, etc.) completed

Number 0

3 (Communicatio

n strategy, Control/Ops Risk manual, SME Product

guide)

3 5 7 - Annual IFC IFC

2-HR2-Internal Control2-Housing1-SME

Number of workshops, training events, seminars and/or conferences

Number 01 (SME cross-

selling for AMB)1 1 2 - Annual IFC IFC 2 KM events

Number of procedures /policies/ practices/ standards recommended for improvement/elimination

Number 02 (HR, Int

Control for KIMB)

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

Number 0 -- 2 5 8 - Annual IFC IFC

1-NPL3-HR2-Internal Control1-M-banking1-Fin Mgmt


614

Intermediate Result: Institutional Capacity Building and Product Development50

Business loans provided or guaranteed

Number N/A 1,746 18,750 41,250 75,250 - Annual MFIs IFC

Value of micro loans disbursed USD N/A 3,092,298 12,000,000 27,000,000 52,000,000 - Annual MFIs IFC

Number of micro loans outstanding

Number 41,364 37,995 45,000 57,000 70,000 - Annual MFIs IFC

Outstanding microfinance loan portfolio of supported institutions

USD 19,090,015 12,536,275 17,000,000 22,250,000 32,500,000 - Annual MFIs IFC

Number of Deposit Accounts Number 125,572 805,054 850,000 950,000 1,050,000 - Annual MFIs IFC

Value of Deposit Accounts USD 9,265,418 236,428,757 250,000,000 275,000,000305,000,00

0- Annual MFIs IFC

50 Figures related to business loans provided and amount disbursed include the period from July-Dec 2016 only, as Transition Fund was approved in May 2016. 615

Business Resilience Assistance for Value-adding Enterprises Project

A. Basic Project InformationActivity Name: Business Resilience Assistance for Value-adding Enterprises (BRAVE ) Project

Country Name: Republic of Yemen Name of Implementation Support Agency(ies):

Name of ISA Project Leader: Bakkar Maasher Email of ISA Project Leader: [email protected]

Recipient Entity:

Small and Micro Enterprise Promotion Service (SMEPS),


Wesam Qaid, Executive Director, [email protected]





7/21/2016


11/29/2016


12/31/2019



Secondary Pillar(s): Investing in Sustainable GrowthChoose an item.Choose an item.




Brief Summary of Project Implementation Status: By the 17th of Nov, 2016, the project account received the full projects funds including the final transfers of USD 627,025 from The MENA Transition Fund Trustee. The following activities took place over the last quarter of 2016:

- IDB Group project task force was formed led by ICD to ensure effective management and support for the project- Project Framework Agreement was signed with MoPIC on 8 November 2016.- Project TA Grant Agreement was signed with SMEPS on 29 November 2016. - Preparation and approval of Project Procurement Plan - Processing the first disbursement of an advanced budget amount of USD 228,965 covering 3 months’ operational

budget for SMEPS executed activities and PMU costs. - Screening and final selection of BRAVE Project Manager- Screening and technical evaluation of appropriate BRAVE IT Platform (CRM) - Commencing the preparations of BRAVE communication plan and marketing kit

Overall, the project implementation preparations are progressing according to plan. Efforts during Q1/2017 will focus on completing the operational infrastructure of the project, soft launching of the project and execution of the first round of Business Resilience /Training to eligible candidates. The first round of proposals for the grants and first batch of approvals for SMES grants will be targeted in quarter during Q2/2017.

IDB Group through its project management arm, ICD continues to closely support the execution agency on technical operational design matters. As per the M&E plan, ICD in coordination with the project PMU will ensure baseline data is captured at application stage for targeted beneficiaries and leverage the capabilities of online CRM platform for status tracking. Further, ICD is working to implement an online financial administration and reporting tool for all project transactions across various disbursements streams: SMEPS, partner bank and the beneficiary firms bank accounts. This mechanism will enable a monthly transparent reporting to all stakeholders. Moreover, IDBG maintains closer peer-to-peer project updates and information sharing with MoPIC and Yemen

616

development partners on the project status, and implementation challenges.


Complete PMU staffing and set up. SMEPS 1/31/2017

Completed/approved formation of Project governance structures (Advisory Committee/Judging Panel)

SMEPS /IDBG 1/31/2017

Draft BRAVE delegation matrix, process flows and operational guidelines. IDBG/SMEPS 1/31/2017

Acquire and Deploy BRAVE CRM system SMEPS 2/5/2017

Project soft Launching to public SMEPS 2/15/2017

Approve Project Operational Manual (grants processing) IDBG 2/28/2017

Complete first round of BRAVE applications (for Business Resilience Training) SMEPS 3/31/2017

Sign agreements with the local Banks for grant processing phase IDBG/Banks/SMEPS 3/31/2017

Complete first batch of BCPs proposals submissions (for Matching Grants) SMEPS 4/30/2017

Approve first batch of BCP proposals by the Judging Panel (Matching Grants) SMEPS 5/31/2017

Sign grants agreements deploy funds to special accounts of qualified firms IDBG/Banks/SMEPS 6/30/2017

C. Implementation Status of Components Component 1: Business Resilience capacity buildingPrevious Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 219,000 Sub-component 1.1: no sub-components

Status of Implementation: The activities is planned to be delivered in the first quarter of 2017. BRAVE soft launching is expected February 2017. Towards that goal, the current preparatory activities are being finalized:

- Preparation of a marketing kit and communication plan for the campaign of calling for the initial application. - MoUs between SMEPS (the execution agency) and partner local banks to be finalized to ensure effective

involvement of the banks in the campaign, referral and sourcing of applications.

Component 2: Business Recovery Support (BRS)

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 3,684,125 Sub-component 2.1: no sub-components

Status of Implementation: this component will be implemented following successful completion of component 1.

Component 3: Value Chain Resilience (For Lead Firms)

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$1): 736,000 Sub-component 3.1: no sub-components

Status of Implementation: this component will be implemented following successful completion of component 1.

Component 4: BRAVE IT Platform

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 70,120 Sub-component 3.1: no sub-componentsStatus of Implementation: The SMEPS (with close support from ICD) screened international solutions for state of the art customizable and easily implementable online CRM and Collaboration system based on open source technology. The final

617

system of choice will be procured in January before the official launching of the marketing campaign. The system, once implemented, will enable around 60 users form SMEPS, the PMU, partner banks, field BDS Advisors and Follow up officers to interact with target firms update the status of each project under processing. The system will be also enable to the ISA to timely track of project progress and collect required results matrix reports. The customization/configuration of the system will be aligned to the operational manual (OM).

Component 5: Project Management Unit (PMU)

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 594,000 Sub-component 3.1: no sub-components

Status of Implementation: The Project Manager was selected and approved by the ISA after a nationally advertised competition. Of 173 applicants’ resumes screened, 135 were cleared and nine candidates were qualified for the final test and interviews. The selected PM will commence work in the second week of January to form the PMU and finalize the project implementation plans and structures.


(x)


(y)

Total (US$)


5,844,000 0 5,844,000


5,844,000 0 5,844,000


E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2017 256,850 2,416,750 2,673,6002018 2,460,600 205,280 2,665,8802019 275,555 275,555


0 156,000

618


Project Development Objective (PDO): To enhance the resilience of the private sector, as the engine of sustainable growth, against the impact of ongoing conflict

PDO Level Results Indicators* Core Unit of

Measure BaselineCumulative Target Values** Frequency Data Source/

Methodology



YR 1 ‘F’ YR 2 ‘F’ YR3 ‘F’Indicator One:Businesses, including MSMEs, demonstrated increased performance after receipt of BRAVE support (TF Results Framework Pillar Indicator 1.1)

Number 135 135 170 245 Annual M&E System/ Phone calls, on-line self-reporting and interviews

SMEPS From the total number of businesses who received support/advisory services, those who demonstrated increased performance after completion of the project by maintaining and/or increasing their sales compared to the situation before BRAVE. Baseline is based on 47%market average. To be revised after completion of baseline study.

Indicator TwoSupported firms maintained and/or increase their staffing level


SMEPS % of supported firms that maintained and/or increased their staffing level compared to the situation before BRAVE. Baseline is based on 45%market average. To be revised after completion of baseline study.

Indicator Three:New direct employment opportunities created among the supported firms - (TF Results Framework Pillar Indicator 2.1)


SMEPS New employment opportunities created and measured in the form of jobs generated across various sectors

Indicator Four: Supported firms maintained and/or increased the wages of

Number TBD TBD TBD 230 Annual M&E System/ Phone calls, on-line self-

SMEPS % of supported firms that maintained and/or increased the wages of

619

their employees reporting and interviews

their employees compared to the situation before BRAVE. Baseline and annual targets to be defined after completion of baseline study.

Indicator Five: Patients consultations provided by the supported health providers

Number TBD 340 1000 1700 Annual M&E System/ Phone calls, on-line self-reporting and interviews

SMEPS # Number of Patients consultations provided by the health providers that have benefitted from BRABE support

Indicator Six: Supported lead firms that have introduced new products and/or new markets channels


SMEPS # Number of the supported lead firms that have introduced new products and/or new markets channels as a result of BRAVE initiative

Indicator Seven: Supported firms have access to finance from Banks at the end of the program


SMEPS Percentage of supported firms that have access to finance from partners Banks at the end of the program. Baseline is based on 27%market average. To be revised after completion of baseline study.


PDO Level Results Indicators* Core Unit of

Measure BaselineCumulative Target

Values** Frequency Data Source/Methodology



definition etc.)YR 1 YR 2 YR3

Intermediate Results (Component One): Build the Capacity of Enterprises in Business Resilience

Intermediate Result indicator One: Businesses received business support/advisory services (includes MSMEs) in form of Business Resilience Training (TF Results Framework Pillar Indicator 1.1.1)

Number 0 100 210 350 ongoing Pre-post evaluation report

P.O / M&E officer

Number of Businesses that have benefited from the Business Resilience Training

Intermediate Result indicator Two: Number of Number 0 150 300 500 ongoing CRM /trainer P.O Number of people

620

people trained in Business Resilience report / firm application

trained in Business Resilience

Intermediate Result indicator Three: Number of firms that have completed a viable BCP

Number 0 75 150 350 ongoing An accepted BCP by the BRAVE Project Management

P.O Number of firms that have completed a viable BCP

Intermediate Result (Component Two): Support Business Recovery and Growth

Intermediate Result indicator One: Number of Businesses (includes MSMEs) that have received financial investment in the form of Matching Grants(TF Results Framework Pillar Indicator 1.1.1)

Number 0 65 130 270 ongoing M&E System/ follow-up visits / cons. Advisors Reports

Advisor Consultant

Businesses received business support/advisory services or financial investment (includes MSMEs)

Intermediate Result indicator Two: Number of value chains reached by the Matching Grants


Advisor Consultant

Number of value chains reached by the Matching Grants

Intermediate Result indicator Three: Number of women entrepreneurs that have benefited from the Matching Grants.


Advisor Consultant

Number of women entrepreneurs that have benefited from the Matching Grants.

Intermediate Result (Component Three): Support Value Chain Resilience

Intermediate Result indicator One: Number of leading firms supported to protect vital value chains

Number 0 5 10 15 ongoing M&E System/ follow-up visits

P.O / M&E officer

Number of leading firms supported to protect vital value chains

Intermediate Result indicator Two: Total Number of Functions upgraded for value chains actors


P.O / M&E officer

Total Number of Functions upgraded for value chains actors

Intermediate Result indicator Three: Total Number of Products upgraded for value chains actors


P.O / M&E officer

Total Number of Products upgraded for value chains actors

Intermediate Result indicator Four: Total Number of Number 0 10 20 30 ongoing M&E System/ P.O / M&E Total Number of

621

Production Processes upgraded for value chains follow-up visits officer Production Processes upgraded for value chains

Intermediate Result (Component Four): Functional IT Management System

Intermediate Result indicator One: Number of firms using the IT system to apply for Business Resilience training

Number 0 300 500 700 ongoing CRM IT officer

Intermediate Result indicator Two: Number of eligible firms using the IT system to request Grants

Number 0 150 250 350 ongoing CRM IT officer

Intermediate Result indicator Three: Number of type of reports generated by the system

Number 0 15 30 50 ongoing IT System IT Manager

Intermediate Result (Component Five): Establish a Performant PMU

Intermediate Result indicator One: Disbursement Ratio

Percent 0% 40% 60% 100% Each quarter Financial system Project manger Disbursement Rate

Intermediate Result indicator Two: Time from receiving Application to Disbursement

Number N.A 3 months

2 months

2 months

After 6 months Action planOM

Project manger Time spent between reception of application and effective disbursement

Intermediate Result indicator Three: Client Satisfaction

Percent N.A 80% 80% 100% ongoing M&E System/ follow-up visits

P.O % of supported firms that are satisfied to very satisfied with the services of the PMU


622