Public Disclosure Copy The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) Haiti Business Development and Investment Project (P123974) LATIN AMERICA AND CARIBBEAN | Haiti | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 12 | ARCHIVED on 25-Jul-2018 | ISR33198 | Implementing Agencies: Ministry of Trade and Industry, Ministry of Economy and Finance Key Dates Key Project Dates Bank Approval Date:21-May-2013 Effectiveness Date:11-Nov-2013 Planned Mid Term Review Date:22-Feb-2018 Actual Mid-Term Review Date:14-May-2018 Original Closing Date:31-May-2018 Revised Closing Date:30-Nov-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to assist the Recipient in: (a) improving the conditions for private sector investment and inclusive growth; and (b) improving its capacity to respond promptly and effectively to an Eligible Emergency. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1 - Business Environment and Investment Generation:(Cost $1.70 M) Component 2 - Business Development Services for MSMEs:(Cost $13.80 M) Component 3 – Project Management, Evaluation and Monitoring:(Cost $2.50 M) Component 4 – Immediate Response Mechanism:(Cost $2.00 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 7/25/2018 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) Implementation Status and Key Decisions The Haiti Business Development and Investment (BDI) Project was approved by the Board of the International Development Association on May 21, 2013, but was soon after restructured, and became effective under the new form on October 28, 2016. Through the restructuring, the BDI Project continues to pursue its development objective of improving the conditions for private sector investment and inclusive growth, but moved away from a focus on integrated economic zones and instead focuses on the development of value chains. The restructured project reallocated funds from the integrated economic zones activities towards building local capacity to correcting the market failures (mostly coordination) that hampered the export of quality products that Haiti already has (mangoes, avocadoes, coffee, cacao). This ISR provides an update on the activities and results of the last 6 months of the project. Some highlights include: The project continues to achieve progress towards the Development Objective and in overall implementation. The project has disbursed US$8.49M or 44.92% to date. Since the last ISR, the project held its Mid-Term Review (MTR) and four implementation support missions. The Mid-term Review was held from May 15-17, 2018. The Review allowed the Client and the World Bank to take stock of the Project’s progress and challenges to date and to identify remedial actions to ensure the project meets its objectives. The project is advancing towards achieving its objectives by progressing in three areas: 1. Improving the general business environment, with reformed legislation and credit infrastructure The lower chamber of Parliament passed a series of laws to promote the business environment in September 2017: The Secured Transactions Law; the Companies Law; and the Legal marriage regime. The Leasing Law was debated but is still pending a vote. The Insolvency Law is included in the legislative agenda and is awaiting vote by the lower chamber. Amongst these laws, the Secured Transaction, Insolvency and Leasing laws would have the most impact on Haiti’s Doing Business score. A firm has been selected to implement the movable collateral registry and the contract is pending signature. The implementation of the system is expected to take 12 months. 2. Building the government capacity to support small entrepreneurs across the whole country, specially supporting higher poverty areas The business support teams, trained and equipped by the project, are already supporting 1,363 entrepreneurs in 20 different value chains across the 10 departments. 3. Addressing the market failures that impede the Haitian producers to maintain and capture the value of their products, by attracting private sector service providers in logistics for fresh fruits, semi-perishables (coffee, cocoa, honey) and fast response apparel. These tenders for value chain service providers have been or are being launched in the next 2 weeks. Information sessions on the tenders were held over the past six months in Berlin (February), Washington, DC (April 3), and Port-au-Prince (April 24). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  High Macroeconomic  --  High  High Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  Substantial  Substantial Other  --  --  -- 7/25/2018 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Private sector investment in supported value chains (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000,000.00 Date 29-Nov-2013 -- -- 01-Nov-2019 PHINDPDOTBL  Increased value added of supported MSMEs in the selected value chains (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 31-May-2016 -- -- 29-Nov-2019 PHINDPDOTBL  Increased value added of supported MSMEs in the poorest Departments (poverty rate above 60%) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 08-May-2017 -- -- 29-Nov-2019 PHINDPDOTBL  Number of MSMEs that receive cash or in-kind assistance to continue or restart productive activity in their value chain (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 260.00 Date 29-Nov-2013 24-Oct-2017 24-Oct-2017 01-Aug-2018 7/25/2018 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) PHINDPDOTBL  Of which, are women (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Overall Comments The PDO indicators cannot be achieved until the service providers who will be hired through the 4 value chain tenders are set up and offering services in Haiti. For this reason, the World bank team is focused on providing procurement support to the PIU given the complexity of these tenders. It is anticipated that the PDO indicator "Increased value added of supported MSMEs in the selected value chains" would be met by the closing date, once the service providers are able to export the products and the farmers are able to add more value to their products. It is anticipated that there will be some difficulty in reaching the end target for the "Private sector investment in supported value chains" indicator because many of the services will be provided through sub-contracting or renting, rather than capital investments. Furthermore, this indicator focuses more on inputs rather than outcomes.This was discussed during the Mid-Term Review and it was proposed to delete this indicator if the project is restructured. The indicator on the "Number of MSMEs that receive cash or in-kind assistance to continue or restart productive activity in their value chain" should be achieved in two phases: the cash assistance by August 2018 and the in-kind assistance by November 2018. Intermediate Results Indicators PHINDIRITBL  Number of pre-bidding conferences on the value chain tenders (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 6.00 7.00 Date 02-Jan-2017 21-Nov-2017 26-Jun-2018 29-Nov-2019 PHINDIRITBL  Number of firms providing new services in selected value chains (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 01-Sep-2017 21-Nov-2017 21-Nov-2017 29-Nov-2019 7/25/2018 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) PHINDIRITBL  Number of participants in public consultations (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,616.00 1,920.00 1,000.00 Date 01-Jan-2015 21-Dec-2017 26-Jun-2018 01-Nov-2019 PHINDIRITBL  Of which, are women (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 19.00 75.00 30.00 PHINDIRITBL  Number of MSMEs registered in the MCI project database (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,365.00 1,351.00 1,200.00 Date 30-Jun-2014 20-Dec-2017 26-Jun-2018 29-Nov-2019 PHINDIRITBL  Of which, are women owned or operated (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 282.00 284.00 360.00 7/25/2018 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) PHINDIRITBL  Firms benefiting from private sector initiatives (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 700.00 Date 09-May-2017 09-May-2017 09-May-2017 29-Nov-2019 PHINDIRITBL  Of which, are women (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 210.00 Date 09-May-2017 09-May-2017 09-May-2017 29-Nov-2019 PHINDIRITBL  Of which, are located in the Southern region affected most by Hurricane Matthew (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 360.00 Date 04-Oct-2016 24-Oct-2017 24-Oct-2017 31-Dec-2018 PHINDIRITBL  Of which, are women (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 7/25/2018 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) PHINDIRITBL  Number of Haitian public servants that have satisfactorily completed the Value Chain Strategic Analysis Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 22.00 30.00 Date 01-Aug-2014 09-May-2017 30-May-2018 29-Nov-2019 PHINDIRITBL  Number of completed value chain diagnostics (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 20.00 Date 30-Jun-2014 09-May-2017 09-May-2017 29-Nov-2019 PHINDIRITBL  Number of recommended laws, regulations, amendments, codes enacted or Government policies adopted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 02-Dec-2013 29-Jun-2017 29-Jun-2017 29-Nov-2019 PHINDIRITBL  Electronic moveable collateral registry (to secure loans) system available for use by MSMEs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 29-Nov-2013 -- -- 01-Nov-2019 7/25/2018 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) PHINDIRITBL  Number of MSMEs registered in the electronic moveable registry who are able to secure loans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 30-Jun-2014 09-May-2017 09-May-2017 29-Nov-2019 PHINDIRITBL  Of which, are women (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Overall Comments Progress on several indicators over the past six months, including: Number of pre-bidding conferences for the value chain tenders; Number of participants in public consultations (and gender sub-indicator); Number of MSMEs registered in MCI project database (and gender sub-indicator); and Number of Haitian public servants that have satisfactorily completed the Value Chain Strategic Analysis Program. Regarding the indicators that have not been achieved yet: "Number of firms providing new services in selected value chains" - This indicator cannot be achieved until the firms have been selected through the four tendering processes. The Request for Expression of Interest for the Traceability, Finance and Payment service using a Blockchain solution was launched and closed. The RFP will be launched before June 30th. "Firms benefiting from private sector initiatives" and sub-indicator "Of which, are located in the Southern region affected most by Hurricane Matthew" - This indicator is dependent on the establishment of the services to be provided through the four aforementioned tendering processes as well as the services to be provided through Component 4 Immediate Response Mechanism. It is anticipated that the cash transfers for the identified beneficiaries in the South would be disbursed in the next 6 months. "Number of recommended laws, regulations, amendments, codes enacted or Government policies adopted" - This indicator is dependent on the passage of the laws currently in the Senate and the Chamber of Deputes. "Electronic moveable collateral registry (to secure loans) system available for use by MSMEs" - This indicator cannot be achieved until the firm has finalized the implementation of the electronic registry. Data on Financial Performance Disbursements (by loan) 7/25/2018 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P123974 IDA-H8650 Effective USD 20.00 20.00 0.00 8.64 10.42 45% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P123974 IDA-H8650 Effective 21-May-2013 14-Jun-2013 11-Nov-2013 31-May-2018 30-Nov-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 12-Sep-2013 ,Level 2 Approved on 24-Dec-2015 ,Level 2 Approved on 02-Aug-2016 ,Level 2 Approved on 07-Dec-2017 Related Project(s) There are no related projects. 7/25/2018 Page 9 of 9 Public Disclosure Copy