The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Private Sector Competitiveness (P130091) EUROPE AND CENTRAL ASIA | Tajikistan | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2012 | Seq No: 15 | ARCHIVED on 26-Aug-2019 | ISR38054 | Implementing Agencies: Ministry of Finance, Tajikistan, State Investment and Property Management Committee, Republic of Tajikistan Key Dates Key Project Dates Bank Approval Date: 10-May-2012 Effectiveness Date: 06-Sep-2012 Planned Mid Term Review Date: 15-Sep-2015 Actual Mid-Term Review Date: 30-Oct-2015 Original Closing Date: 31-Dec-2016 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the project is to remove key constraints to business development and investment by: (i) simplifying business registration and construction permitting processes; (ii) improving regulations and infrastructure underlying access to financial services; and (iii) encouraging development of the mining industry, where Tajikistan has a competitive advantage. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) The development objective of the project is to foster increased efficiency in key areas that influence private sector competitiveness, including business registration, infrastructure underlying access to financial services, and the mining industry. Components Table Name Encouraging competitiveness and development of the mining industry:(Cost $3.18 M) Strengthening business registration systems and processes:(Cost $0.75 M) Institutional strengthening to support a single window for Construction Permits:(Cost $0.82 M) Improvement of Financial Infrastructure:(Cost $4.32 M) Project Management:(Cost $0.93 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions 8/26/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) The project made notable progress over the past months in implementation and towards reaching the development objectives. The new One-Stop-Shop for business registration is functioning. Businesses are not required to go to these agencies individually, but instead submit an application online, or visit only the tax office for registration. By mid-2019, 62,349 new businesses were registered using the new system, and out of that 10% used online registration which is a notable uptake. The single window for construction permits in the City of Dushanbe is operational. There are delays in adopting the sub-soil Law. Progress is made on the Mining Cadaster, transferring geological surveys in electronic form on the Modern System, and towards reinstating Tajikistan at the EITI initiative. In the component on Improvement on Financial Infrastructure, the new online collateral registry that was officially launched on February 1, 2019 has since attracted more than USD42 million worth of lending based on movable collateral. The real-time gross settlement system (RTGS) was launched on July 19, 2019. A total of 42 participants (banks, microfinance organizations, and the Ministry of Finance) are now connected to the new RTGS. The Automated Clearing House (ACH) will be launched on August 28, 2019. Additional modules like the Instant Fund Transfer (IFT) for fast payments (like mobile to mobile) and the Central Securities Depository (CSD) will be launched on October 1, 2019. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- High High Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- Moderate Moderate Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve private sector competitiveness by improving bus.registration, access to fin.services, mining IN00728941 ►Indicator One: Time spent on business registration (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 24.00 5.00 5.00 5.00 Date 01-Jul-2012 30-Jan-2019 28-Jun-2019 31-Dec-2019 IN00728942 ►Indicator Two: Lending based on new registration of security interests in the new collateral registry using moveable assets as collateral (Amount(USD), Custom) 8/26/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 42,000,000.00 20,000,000.00 Date 01-Jul-2012 30-Jan-2019 28-Jun-2019 31-Dec-2019 IN00728943 ►Indicator Three: Modern Automated Transfer System (ATS) and module of financial instruments for interbank transactions operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target System installed and operational and all Value Not in existence In Progress In Progress relevant staff trained to use it. Date 01-Jul-2012 30-Jan-2019 28-Jun-2019 31-Dec-2019 The new real-time gross settlement system (RTGS) was launched on July 19, 2019. Along with the scheduled launch of the Automated Clearing House (ACH) module on August 28, 2019, the PDO indicator on installation and operationalization of the system will be achieved. Additional modules like the Instant Comments: Fund Transfer (IFT) for fast payments (like mobile to mobile) and the Central Securities Depository (CSD) will be launched on October 1, 2019. IN00728944 ►Indicator Four: Legal and regulatory framework to improve bank supervision is developed, adopted, and implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 7.00 Date 01-Jul-2012 30-Jan-2019 28-Jun-2019 31-Dec-2019 In progress. Two regulations have been adopted so far. To achieve the PDO indicator, the NBT agreed to ratify the remaining 5 regulations by: September (1), October (1), November (2), and December (1) of Comments: 2019. These 5 regulations are already drafted and are being vetted for ratification. IN00728945 ►Indicator Five: Number of new mining exploration licenses issued (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 4.00 11.00 10.00 Date 01-Jul-2012 30-Jan-2019 28-Jun-2019 31-Dec-2019 ENTRY SEPT 2018: The baseline is 3. No new licenses were issued prior to end 2018 that can be attributed to the Project. Comments: ENTRY January 2019. One new license granted by the Government. ENTRY: June 2019. Seven new licenses granted by the Government Overall Comments PDO Three of the five PDO level indicators are already met. Intermediate Results Indicators by Components 8/26/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Strenghtening the Business Environment IN00728946 ►Intermediate Result indicator One: Number of staff of Statistics Agency, Social Insurance Agency, and Tax Committee trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 35.00 35.00 30.00 Date 13-May-2014 30-Jan-2019 28-Jun-2019 31-Dec-2019 IN00728950 ►Intermediate Result indicator Two: Number of construction permits obtained via single window (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 09-Nov-2016 30-Jan-2019 28-Jun-2019 31-Dec-2019 Encouraging the Development of Mining Industry IN00728947 ►Intermediate Result Indicator Nine: Adoption of the new Subsoil Law (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Not adopted yet Not adopted yet Yes Date 15-Nov-2016 30-Jan-2019 28-Jun-2019 31-Dec-2019 The team received assurances that the Law will be adopted by the time project closes. Comments: IN00728951 ►Intermediate Result indicator Six: Share of geological surveys in electronic form on Modern System (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 90.00 70.00 Date 01-Mar-2012 30-Jan-2019 28-Jun-2019 31-Dec-2019 IN00728954 ►Intermediate Result indicator Seven: Share of existing and new claims in the Mining Cadastre on new system (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 80.00 90.00 60.00 Date 01-Mar-2012 30-Jan-2019 28-Jun-2019 31-Dec-2019 Technically Cadastre is built and more than 90% of data is there; licenses and contracts have been inserted, but not operational for public because: 1) lack of state certification, 2) lack of domain, and 3) lack Comments: of legal grounds to formally operate (Sub-soil law or some other regulation) Project Management IN00728948 ►Intermediate Result Indicator Eight: Direct Project Beneficiaries (Number, Custom) 8/26/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 42,104.00 62,349.00 50,000.00 Date 01-Mar-2012 30-Jan-2019 28-Jun-2019 31-Dec-2019 January 2019 update - 42,104 new businesses registered in 2018, and out of that 10% using online system. So, we have new businesses being registered using the new system, and on the top of that - 10% of businesses are using online system in the first 6 months of operation, which is notable uptake of Comments: the reform. July 2019 Update – 20,247 additional businesses registered, so in total 62,349 since early 2018. 10.6% of all new businesses since early 2018 are women owned. IN00728953 Female Project Beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 10.60 10.00 Improve Access to Financial Services IN00728949 ►Intermediate Result indicator Three: Regulatory framework to improve payment system is developed and implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 6.00 6.00 7.00 Date 01-Jul-2012 19-Jun-2018 28-Jun-2019 31-Dec-2019 In progress. This intermediate results indicator will be achieved with the NBT's adoption of updated rules Comments: for the operation of the RTGS, by September 2019. IN00728952 ►Intermediate Result indicator Four: Contingency planning and crisis management framework adopted and implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Simulation exercise Value No in progress in progress adopted and periodic reports published Date 01-Jul-2012 30-Jan-2019 28-Jun-2019 31-Dec-2019 In progress. This intermediate results indicator on contingency planning and crisis management Comments: framework will be achieved by the NBT's adoption of the framework by mid-December 2019. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P130091 IDA-H7710 Effective USD 10.00 10.00 0.00 7.57 1.58 83% 8/26/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Private Sector Competitiveness (P130091) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P130091 IDA-H7710 Effective 10-May-2012 08-Jun-2012 06-Sep-2012 31-Dec-2016 31-Dec-2019 Cumulative Disbursements Restructuring History Level 1 Approved on ,Level 2 Approved on 25-Nov-2016 ,Level 2 Approved on 27-Jun-2018 Related Project(s) There are no related projects. 8/26/2019 Page 6 of 6