Public Disclosure Copy The World Bank Implementation Status & Results Report Tanzania - Housing Finance Project (P117242) Tanzania - Housing Finance Project (P117242) AFRICA | Tanzania | Finance & Markets Global Practice | IBRD/IDA | Financial Intermediary Loan | FY 2010 | Seq No: 13 | ARCHIVED on 22-Dec-2016 | ISR26333 | Implementing Agencies: BANK OF TANZANIA Key Dates Key Project Dates Bank Approval Date:09-Mar-2010 Effectiveness Date:21-Jan-2011 Planned Mid Term Review Date:18-Mar-2013 Actual Mid-Term Review Date:18-Mar-2014 Original Closing Date:31-Dec-2015 Revised Closing Date:31-Mar-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to develop the housing mortgage finance market through the provision of medium and long-term liquidity to mortgage lenders. 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)PHRPDODEL The revised PDO is as follows: To facilitate the development of the housing finance market through the provision of medium and long-term liquidity to lenders. Components Name Development of the Mortgage Market:(Cost $73.80 M) Development of Housing Microfinance:(Cost $20.50 M) Expansion of Affordable Housing Supply:(Cost $4.30 M) Project Management:(Cost $1.40 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 12/22/2016 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Tanzania - Housing Finance Project (P117242) Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions This was the third supervision mission since the World Bank Board approval of US$60 million in Additional Financing (AF) on February 24, 2015, which was signed on March 12, 2015 and declared effective on June 29, 2015. The AF fills a financing gap for Component 1 (Development of the Mortgage Market), and scales up components two (Development of Housing Microfinance) and three (Expansion of Affordable Housing Supply). In addition, as part of the AF, a project restructuring was processed to refine the PDO and revise the results framework. The closing date of the original credit was extended from March 31, 2015 to March 31, 2017 (to complete contracts and activities initiated under original credit), and the closing date of the AF is March 31, 2018. The revised Project Development Objective (PDO) of HFP is to facilitate the development of the housing finance market through the provision of medium and long-term liquidity to lenders. The three components of the project remain the same: (i) Development of the Mortgage Market; (ii) Development of Housing Microfinance; and (iii) Expansion of Affordable Housing Supply. Notable achievements have taken place during the fiscal year, including a pick-up in TMRC performance and two transactions under the Housing Microfinance Facility. The mortgage market also continues to grow at a strong pace (40% annual rate of growth). The project continues to be rated Moderately Satisfactory for both Progress towards Achievement of the Development Objectives and Implementation Progress. The Project has disbursed US$15.8 million in FY2017 (July to June), a 34.1% disbursement rate.. 12/22/2016 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Tanzania - Housing Finance Project (P117242) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Low  Low Environment and Social  --  Low  Low 12/22/2016 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Tanzania - Housing Finance Project (P117242) Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Outstanding volume of eligible housing loans financed by TMRC (TZS billions) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.50 33.00 95.90 Date 31-Mar-2010 30-Apr-2016 31-Oct-2016 31-Mar-2018 PHINDPDOTBL  Number of financial institutions offering mortgage product (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 27.00 28.00 31.00 Date 31-Mar-2010 30-Apr-2016 31-Oct-2016 31-Mar-2018 PHINDPDOTBL  Outstanding volume of TMRC bond issuance (TZS billion) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 69.70 Date 31-Mar-2010 30-Apr-2016 31-Oct-2016 31-Mar-2018 Comments An accountant was hired to prepare an Information Memorandum and is expected to complete the work in April 2017. Bond issuance is expected by June 2017. PHINDPDOTBL  Outstanding volume of microfinance loans financed by project (TZS billions) (Number, Custom) 12/22/2016 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Tanzania - Housing Finance Project (P117242) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 2.73 30.00 Date 31-Mar-2010 30-Apr-2016 31-Oct-2016 31-Mar-2018 Comments S/No Institution Number of Loans Issued Amount of Loan Issued (TZS 0.00) 1 DCB Commercial Bank Plc 230 2,141,591,348.08 2 Yetu Microfinance Plc 34 131,620,501.00 3 EFC Tanzania Microfinance Bank 22 460,193,537.39 Totals 286 2,733,405,386.47 Overall Comments previous data is incorrect (3bn was actually the amount of loan approved, but none of the loan had been onlent. This indicator captures the conversion of the loan to MFIs to actual housing microfinance loans). Currently a total of 9bn TZS loans have been approved, to 3 FIs, and of this, 2.73 has been onlent as of Oct 2016. Institution Number of Loans Issued Amount of Loan Issued (TZS 0.00) /No 1 DCB Commercial Bank Plc 230 2,141,591,348.08 2 Yetu Microfinance Plc 34 131,620,501.00 3 EFC Tanzania Microfinance Bank 22 460,193,537.39 Totals 286 2,733,405,386.47 Intermediate Results Indicators PHINDIRITBL  1a - Number of financial institutions refinanced by TMRC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 5.00 7.00 Date 31-Mar-2010 30-Apr-2016 31-Oct-2016 31-Mar-2018 12/22/2016 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Tanzania - Housing Finance Project (P117242) PHINDIRITBL  1b # Outstanding volume of loans refinanced by the TMRC (TZS) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.3 billion 16.3 billion 49 billion Date 31-Mar-2010 30-Apr-2016 30-Apr-2016 31-Mar-2018 PHINDIRITBL  Outstanding volume of Eligible housing loans pre-financed by TMRC (TZS billion) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 16.20 17.00 46.90 Date 31-Mar-2010 30-Apr-2016 31-Oct-2016 31-Mar-2018 PHINDIRITBL  Outstanding volume of loans pre-financed by the TMRC (TZS billion) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.80 36.60 73.2 billion Date 31-Mar-2010 30-Apr-2016 30-Apr-2016 31-Mar-2018 Comments Decrease due to the fact that TZS 6.75 billion of pre-finance facilities were rolled over to refi's. PHINDIRITBL  2a - Number of credit institutions supported by the project providing housing microfinance loans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 3.00 8.00 Date 30-Sep-2014 30-Apr-2016 31-Oct-2016 31-Mar-2015 Comments DCB, Yetu, and EFC 12/22/2016 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Tanzania - Housing Finance Project (P117242) PHINDIRITBL  Outstanding volume of funds provided to financial institutions for the purpose of originating housing microfinance loans (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 9.00 30.10 Date 09-Mar-2010 30-Apr-2016 30-Apr-2016 31-Mar-2018 Comments S/N Date of Date of Loan Interest Amount (TZS) Beneficiary Institution disbursement repayment tenor rate % (year s) 1 31-Jul-2015 30-Jun-2020 5 10 1,000,000,000.00 DCB Commercial Bank Plc. 2 31-Mar-2016 31-Mar-2021 5 10 2,000,000,000.00 DCB Commercial Bank Plc. 3 29-Jun-2016 28-Jun-2021 5 10 2,000,000,000.00 Yetu Microfiance Plc. 4 15-Aug-2016 14-Aug-2021 5 10 4,000,000,000.00 EFC Tanzania Microfinance Bank TOTAL 9,000,000,000.00 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P117242 IDA-47120 Effective XDR 25.60 25.60 0.00 25.59 0.01 100% P117242 IDA-55900 Effective XDR 41.50 41.50 0.00 18.95 22.55 46% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P117242 IDA-47120 Effective 09-Mar-2010 31-Mar-2010 21-Jan-2011 31-Dec-2015 31-Mar-2017 P117242 IDA-55900 Effective 24-Feb-2015 12-Mar-2015 29-Jun-2015 31-Mar-2018 31-Mar-2018 Cumulative Disbursements 12/22/2016 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Tanzania - Housing Finance Project (P117242) Restructuring History Level Approved on 10-Feb-2013 Related Project(s) P151220-Housing Finance Project 12/22/2016 Page 8 of 8 Public Disclosure Copy