The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) Lao PDR Competitiveness and Trade Project (P164813) EAST ASIA AND PACIFIC | Lao People's Democratic Republic | Macroeconomics, Trade and Investment Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 3 | ARCHIVED on 23-Dec-2019 | ISR39734 | Implementing Agencies: Ministry of Industry and Commerce, Lao People’s Democratic Republic Key Dates Key Project Dates Bank Approval Date: 27-Sep-2018 Effectiveness Date: 10-Dec-2018 Planned Mid Term Review Date: 30-Nov-2020 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2022 Revised Closing Date: 31-Dec-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Development Objectives are to simplify business regulations, facilitate trade, and improve firm-level competitiveness. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving the Business Environment:(Cost $3.40 M) Facilitating Trade and Connecting to Markets:(Cost $2.80 M) Improving Firm-Level Competitiveness:(Cost $3.90 M) Supporting Better and More Inclusive Policies:(Cost $2.90 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The second implementation support mission (October 7-11) found that implementation progress continues to be strong with all major procurement packages completed and consultancies under way. The Business Assistance Facility is up-and-running, and the first seventeen matching grants have been approved. Five Challenge Facility (CF) proposals have been endorsed by the Minister of MOIC, supporting a broad range of Ministries. With technical support teams in place, government's focus will now have to shift towards effectively supervising technical consultants and their outputs to ensure recommendations align to government priorities, implementing such technical recommendations, and obtaining results. This will require Senior MOIC management leadership and supervision as well as involvement by the PMO and MPI to garner political support to work across all Ministries and levels of administration (including in provinces and particularly in Vientiane where data for DB indicators is collected). 12/23/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) In September, USAID joined the MDTF to support the Lao Competitiveness and Trade Project, and Ireland contributed additional funds in December. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Substantial Substantial Substantial Other Low -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Simplify business regulations IN00778636 ►Time needed to start a business (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 67.00 174.00 173.00 30.00 Date 31-Oct-2017 31-Oct-2018 31-Oct-2019 31-Oct-2022 During the DB2019 cycle, new data was collected and the indicator was updated, resulting in the increase in estimated time required to start a business. There were no policy changes resulting in this correction of Comments: the indicator value. Facilitate trade IN00778638 12/23/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) ►Time to prepare documentary requirements for imports and exports (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 216.00 60.00 60.00 108.00 Date 31-Oct-2017 31-Oct-2018 31-Oct-2019 31-Oct-2022 During the DB2019 cycle, new data was collected and the indicator was updated. Together with some small policy changes that reduced regulatory requirements making it easier to prepare documentation and Comments: which were informed by policy dialogue during project preparation, this resulted in the reduction in estimated time required to prepare documentary requirements for imports and exports. Improve Firm-Level Competitiveness IN00778637 ►Sales growth in BAF supported firms compared to non-supported firms (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 22-May-2018 31-Dec-2018 31-Dec-2018 01-Aug-2022 The contractor to implement the BAF is in place and the first grants have been issued. As the indicator measures the impact of these grants, this indicator will only be measured after grant-supported activities Comments: will have been able to influence business operations. Intermediate Results Indicators by Components Improving the business environment IN00778639 ►Time to obtain ERC from DERM (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.00 14.00 14.00 5.00 Date 29-Sep-2017 29-Sep-2017 29-Sep-2017 30-Sep-2022 Challenges with linking relevant datasets at the Department of Enterprise Registration and Management Comments: (DERM) to obtain detailed data persist. IN00778644 Time for women-led enterprises as percent of men-led enterprises (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 100.00 100.00 100.00 IN00778647 ►Number of operating licenses streamlined (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 12/23/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) Date 22-May-2018 30-Jun-2019 30-Jun-2019 28-Oct-2022 Work has started but no licenses have been streamlined so far. Comments: IN00778651 Number of operating licenses streamlined in sectors of particular interest to women (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 23-May-2018 31-Dec-2018 30-Jun-2019 31-Oct-2022 IN00778652 ►Procedures to start a business (women) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 10.00 9.00 6.00 Date 27-Oct-2017 31-Oct-2018 31-Oct-2019 31-Oct-2022 During the DB2019 cycle, new data was collected and the indicator was updated, reflecting two additional procedures that had not been counted in prior DB reports, although they already existed. The increase from 8 to 10 procedures therefore reflects a correction in the indicator value rather than policy changes. During 2019, government removed one step in Starting a Business by eliminating the requirement to Comments: obtain proof of business location from the Village Chief Authority for business registration. This was removed for women and men. A number of additional reforms that would remove additional steps have not yet been fully implemented. IN00778653 ►Number of new enterprise registrations per year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6,707.00 9,167.00 9,167.00 7,713.00 Date 29-Dec-2017 31-Dec-2018 31-Dec-2018 30-Dec-2022 Partial data for 2019 indicate that the number of businesses registering continues to increase strongly. Comments: Facilitating trade and connecting to markets IN00778640 ►Commitments under the Trade Facilitation Agreement implemented by Lao PDR (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 21.00 21.00 21.00 60.00 Date 01-Jan-2018 01-Jan-2018 01-Jan-2018 30-Dec-2022 IN00778643 ►Technical Trade Facilitation Secretariat meetings with Private Sector Participation (last 12 months) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 5.00 4.00 Date 01-May-2018 12-Jul-2019 31-Oct-2019 30-Dec-2022 IN00778648 12/23/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) ►Mean time to clear imports, exports, and transit, through customs (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.40 9.40 8.10 6.00 Date 28-Jul-2017 28-Jul-2017 28-Feb-2019 28-Oct-2022 A Time Release Study was undertaken in January/February of 2019, the indicator update reflects data Comments: from that study. Improving Firm-Level Competitiveness IN00778641 ►Total number of grants disbursed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 300.00 Date 21-May-2018 30-Jun-2019 31-Oct-2019 30-Dec-2022 The BAF contractor is on Board and the first grants have been signed, but none completed and disbursed Comments: yet. IN00778645 Grants to women-led enterprises (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 60.00 40.00 Supporting Better and More Inclusive Policies IN00778642 ►Lao Business Fora held per year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.00 1.00 1.00 Date 29-Dec-2017 30-Jun-2019 29-Nov-2019 30-Dec-2022 The 12th Lao Business Forum took place on November 12. Comments: IN00778646 Issues captured and actioned through the Lao Business Forum that have been raised by women-led enterprises (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 33.30 33.30 52.00 40.00 IN00778649 Perception of Lao Business Forum’s effectiveness (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 56 percent of 40 percent perceive Value Very effective 31 percent Very effective 31 percent participants perceive the LBF as very effective LBF as "very effective" IN00778650 12/23/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) ►Hits on the Lao Trade Portal (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 370.60 428.74 428.74 400.00 Date 29-Dec-2017 31-Dec-2018 31-Dec-2018 31-Dec-2021 To be updated annually. Data for the first half of 2019 indicate that this indicator remains on track. Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164813 IDA-63180 Effective USD 10.00 10.00 0.00 1.97 7.93 20% P164813 TF-A9747 Effective USD 0.65 0.65 0.00 0.34 0.31 53% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164813 IDA-63180 Effective 27-Sep-2018 31-Oct-2018 10-Dec-2018 31-Dec-2022 31-Dec-2022 P164813 TF-A9747 Effective 13-Feb-2019 29-Apr-2019 21-Jun-2019 31-Dec-2022 31-Dec-2022 Cumulative Disbursements 12/23/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Lao PDR Competitiveness and Trade Project (P164813) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/23/2019 Page 7 of 7