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: 13 | ARCHIVED on 27-Feb-2019 | ISR36026 | Implementing Agencies: Ministry of Commerce and Industry, Republic of Haiti 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 pdoTable 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 Components Table 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 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: 2/27/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) The project continues to achieve progress towards the Development Objective and in overall implementation. The project has disbursed US$9.10M or 47.96% to date. Since the last ISR, the project completed six implementation support missions and awarded contracts for one of the four main tenders to recruit the service providers for the value chains. 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 is under contract since August and started to work on implementing the movable collateral registry. 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. One of the four tenders for value chain service providers has been awarded; and 1 more is about to be awarded. The remaining two tenders will be launched in the following weeks. Two information sessions on the tenders that were launched were held over the past six months in Port-au-Prince and via video conference. 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 -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve the conditions for private sector investment and inclusive growth IN00614357 ►Private sector investment in supported value chains (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target 2/27/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) Value 0.00 0.00 0.00 5,000,000.00 Date 29-Nov-2013 -- 21-Feb-2019 01-Nov-2019 Comments: Measures new private sector investment in supported value chains (in USD million per year) IN00614358 ►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 -- 21-Feb-2019 29-Nov-2019 Comments: Average increase in total value added of MSMEs in supported value chains IN00614390 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 -- 21-Feb-2019 29-Nov-2019 Improve capacity to respond promptly and effectively to an Eligible Emergency IN00671106 ►Number of MSMEs that receive cash or in-kind assistance to continue or restart productive activity in their value chain (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 260.00 Date 04-Oct-2016 -- 21-Feb-2019 29-Nov-2019 IN00671107 Of which, are women (Number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 40.00 Date 04-Oct-2016 -- 21-Feb-2019 29-Nov-2019 Overall Comments PDO 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. The PIU has also secured the services of Wageningen University and Research, which will supervise the technical implementation of the most complex and largest contract of the Project, the “Cold Chain Logistic Services”, to ensure service effectiveness in order for results to be achieved. It is anticipated that the PDO indicator "Increased value added of supported MSMEs in the 2/27/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) 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. 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 provided by April 1, 2019. Intermediate Results Indicators by Components Component 1 - Business Environment and Investment Generation IN00614383 ►Number of recommended laws, regulations, amendments, codes presented to the Parliament (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 3.00 Date 02-Dec-2013 01-Sep-2017 01-Sep-2017 29-Nov-2019 Comments: Can include investment incentives, competition policy and other business environment reforms IN00671103 ►Number of MSMEs registered in the electronic moveable registry who are able to secure loans (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50.00 Date 29-Nov-2013 -- 21-Feb-2019 29-Nov-2019 IN00671104 Of which, are women (Number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 15.00 Date 29-Nov-2013 -- 21-Feb-2019 29-Nov-2019 IN00614384 ►Electronic moveable collateral registry (to secure loans) system available for use by MSMEs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Nov-2013 -- 21-Feb-2019 01-Nov-2019 Comments: Availability of service to MSMEs Component 2 - Business Development Services for MSMEs IN00614389 ►Number of pre-bidding conferences on the value chain tenders (Number, Custom) 2/27/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 7.00 Date 02-Jan-2017 26-Jun-2018 26-Jun-2018 29-Nov-2019 IN00614359 ►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 Comments: Total investment financed (grant + matching) IN00614387 ►Number of MSMEs registered in the MCI project database (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,351.00 1,351.00 1,200.00 Date 30-Jun-2014 26-Jun-2018 26-Jun-2018 29-Nov-2019 IN00614394 Of which, are women owned or operated (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 284.00 284.00 360.00 IN00614388 ►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 IN00614395 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 IN00614396 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 IN00614397 Of which, are women (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 2/27/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) Value 0.00 0.00 0.00 50.00 IN00614360 ►Number of participants in public consultations (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,920.00 1,920.00 1,000.00 Date 01-Jan-2015 26-Jun-2018 26-Jun-2018 01-Nov-2019 IN00614391 Of which, are women (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 75.00 25.00 30.00 IN00614382 ►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 22.00 22.00 30.00 Date 01-Aug-2014 30-May-2018 30-May-2018 29-Nov-2019 Comments: Government of Haiti staff that have completed the training and the 2 field projects IN00614385 ►Number of completed value chain diagnostics (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 20.00 20.00 Date 30-Jun-2014 09-May-2017 13-Feb-2018 29-Nov-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P123974 IDA-H8650 Effective USD 20.00 20.00 0.00 9.10 9.87 48% 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 2/27/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Haiti Business Development and Investment Project (P123974) 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. 2/27/2019 Page 7 of 7