The World Bank Implementation Status & Results Report Ethiopia Competitiveness and Job Creation Project (P143302) Ethiopia Competitiveness and Job Creation Project (P143302) AFRICA | Ethiopia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 12 | ARCHIVED on 28-Oct-2019 | ISR38898 | Implementing Agencies: Ministry of Finance and Economic Development, Federal Democratic Republic of Ethiopia, Industrial Parks Development Corporation Key Dates Key Project Dates Bank Approval Date: 13-May-2014 Effectiveness Date: 04-Aug-2014 Planned Mid Term Review Date: 29-Nov-2019 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2020 Revised Closing Date: 07-Jul-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to contribute to job creation by attracting investments and improving competitivenessofenterprises in the targeted industrial zones and their linked domestic enterprises. 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 Project Development Objective (PDO) is to contribute to job creation by attracting investments and improving competitiveness ofenterprises in the targeted industrial parks and their linked domestic enterprises. Components Table Name Component 1: Institutional and Regulatory Framework and Capacity Building:(Cost $8.10 M) Component 2: Support for Industrial Infrastructure:(Cost $384.20 M) Component 3: Enhancing IP linkages to the local economy:(Cost $10.20 M) Component 4: Project Management and Monitoring and Evaluation:(Cost $12.50 M) Contingency:(Cost $10.00 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 10/28/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Ethiopia Competitiveness and Job Creation Project (P143302) During the current mission from October 4 to 11, 2019, the Mid Term Review (MTR) of the Project has been initiated to reassess the progress on the achievement of the PDO and the outcome indicators since the last assessment done during the Additional Financing. The PIU has also initiated their own self-assessment for the MTR. A detailed MTR report will be prepared by the team when the MTR is finalized, expected by end of November 2019. The mission team held detailed discussions on the progress of the critical areas for the successful completion of the project. Summary of the key discussions are: 1. Completion of the infrastructure development of the Bole Lemi II (BL II) and Kilinto IP (QIP) – The civil works and the building infrastructure for both IPs are almost completed with some minor corrections and finishing currently underway. The Waste Water Treatment Plants (WWTPs), which were initiated later, are progressing. The major remaining issue is the testing and commissioning of the WWTPs and the electrical facilities in the IPs which is hampered by the delay in the installation and supply of power. 2. Pipeline of Investors – The pricing strategy for the two IPs was approved recently and the Ethiopian Investment Commission has been signing MoUs with the pipeline of investors who had submitted their interest to set up production in the two IPs. EIC has also developed an investment generation action plan to be supported by the Project. So far, two investment promotion events (one in china for pharmaceutical industries, and another for embassies in Addis Ababa) have been held. 3.Private sector participation in IPs: The PIU is in the process of recruiting a transaction / PPP advisor to support IPDC identify and execute opportunities for private sector involvement in the operation and management of BL II and QIP. The advisor is also expected to support IPDC in its broader initiative to bring in more private sector in the development and management of the other IPs under IPDC’s portfolio. In parallel, the PIU is in the process of procuring a consultancy service to work with IPDC to develop a long-term strategy and a sustainable business model for IPDC. 4. Social safeguard: Most of the social safeguard measures planned under the project have been implemented. Some of the livelihood restoration activities at QIP have been delayed due to the institutional changes within the local administration and the introduction of new entities as part of the ongoing political reforms. 5. Environmental safeguard: There is a need to expedite the completion of the necessary environmental safeguard instruments ahead of the operationalization of the IPs to ensure risks are assessed and adequate mitigation measures are in place. 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 -- Substantial Substantial Fiduciary -- Moderate Moderate Environment and Social -- Substantial Substantial Stakeholders -- Substantial Substantial Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Job creation and private investment in project supported IPs. IN00754284 10/28/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Ethiopia Competitiveness and Job Creation Project (P143302) ►Indicator One: Number of jobs created by activities linked to the supported IPs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 5,472.00 46,000.00 Date 11-Aug-2014 11-Apr-2019 17-Oct-2019 30-Jun-2021  Skills development: 2,819 [Female 2,762 (98%) and Male 57 (2%)]  B2B linkage: 66 [Female 29 (44%) and Male 37 (66%)  Construction: Temporary Comments: o Kilinto: 668 [Female 41 (06%) and Male 627 (94%) o Bole Lemi II 1,919 [Female (22%) and Male 1,493 (78%)]  Total jobs created: 5,472 [Female 3,258 (60%) and Male 2,214 (40%)] IN00754285 Of which are women (%) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.00 11.06 64.00 IN00754286 Of which jobs created in the firms operating in the supported IPs (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 5,472.00 45,000.00 IN00754287 Of which are women (%) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 7.08 64.00 IN00754288 Of which jobs created by local suppliers supported by the linkage fund (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 66.00 1,000.00 IN00754289 of which are women (%) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.00 5.46 53.00 IN00754290 ►Private investment by firms located within the supported industrial parks (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 55,000,000.00 61,000,000.00 28,000,000.00 Date 01-May-2018 11-Apr-2019 17-Oct-2019 30-Jun-2021 IN00754291 of which is foreign direct investment (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 70.00 10/28/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Ethiopia Competitiveness and Job Creation Project (P143302) Overall Comments PDO 1. Indicator One: Number of jobs created by activities linked to the supported IPs a)Of which are women (%) -  Target: 29,440 (64 % of 46,000)  Up to September 2019, [3,258 of females] got job opportunity. i.e. 11.06% b) % of women from jobs created by local suppliers supported by the linkage fund -  Target : 530 (53% of 1000)  Up to September 2019, 66 people got job opportunity [Female 29 (44%) and Male 37 (66%)]  A total of 5.46 % of women got opportunity till the end of September 2019 2. Indicator Two: Private investment by firms located within the supported industrial parks [amount USD]  Total estimated investment of: o Soufflett is USD 56 million o Jay Jay USD 5 million a) Of which FDI (%) - Target : 19,600,000 (70% 28,000,000) Intermediate Results Indicators by Components Component 1: Institutional and Regulatory Framework and Capacity Building IN00754292 ►Indicator 1: Adoption of a IP Law by the Cabinet (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 11-Aug-2014 16-Mar-2018 17-Oct-2019 30-Jun-2021 Target achieved on November 2017 Comments: IN00754296 ►Establishment of the IP Regulatory function (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 11-Aug-2014 16-Mar-2018 17-Oct-2019 30-Jun-2021 Target achieved on November 2017 Comments: Component 2: Support for Industrial Infrastructure IN00754293 10/28/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Ethiopia Competitiveness and Job Creation Project (P143302) ►Serviced land in the supported Industrial Parks (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 260.00 272.11 280.00 Date 11-Aug-2014 11-Apr-2019 17-Oct-2019 30-Jun-2021 IN00754297 ►At least one License issued for IP management, development, operations and/or sub developer (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes No Yes Date 11-Aug-2014 11-Apr-2019 17-Oct-2019 30-Jun-2021 This indicator hasn't been achieved yet, as the construction is not yet completed. Comments: IN00754300 ►Total sale value of goods and services linked to the supported industrial parks (annual) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 352,890.39 100,000,000.00 Date 03-May-2018 11-Apr-2019 17-Oct-2019 30-Jun-2021  Burayu 97,264.67  Minaye 173,013.50  Classic 70,478.61 Comments:  Tamira 12,133.61 Total (USD) 352,890.39 Component 3: Enhancing IP linkages to the local economy IN00754294 ►Number of local suppliers working with firms located within the supported Industrial Parks (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 15.00 25.00 Date 11-Aug-2014 11-Apr-2019 17-Oct-2019 30-Jun-2021 This reference to the supplemental indicator "Of which are local suppliers supported by the linkage fund": The B2B linkage has been developed for seven firms in the first round and other seven firms in the second round. All of them have signed LGA. Currently, except Modjo and Walia tannery three of the first round beneficiaries are active. The active local firms are Burayu Packaging– Carton, Minaye Packaging – Comments: Carton, Classic Packaging – Poly bag. ,Beca But ton and Yekatit paper factory lagging behind. The local firms from the 2nd round are striving to procure machineries and Tamir a is actively supplyinh with the Bole Lemi I & HIP. IN00754299 Of which are local suppliers supported by the linkage Fund (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 4.00 20.00 IN00754301 10/28/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Ethiopia Competitiveness and Job Creation Project (P143302) ►Number of trained trainers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 112.00 112.00 50.00 Date 11-Aug-2014 11-Apr-2019 17-Oct-2019 30-Jun-2021 ToT conducted during pilot training. Comments: IN00754303 ►Number of trained trainees (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,692.00 2,819.00 7,500.00 Date 11-Aug-2014 11-Apr-2019 17-Oct-2019 30-Jun-2021 Achievement so far is 38% of the target 7,500 Of which women (%):  Target value [70%]  5250 (70% of 7500) Comments:  A total of 2,819 people got trained: of which 2762 females (98%) and Male 57 (02%) till end of January 2019.  2819 females training out of 5,250 (53.69%) in the pilot training in total. 127 females (2.41%) were trained after the pilot program IN00754304 Of which women (%) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 80.00 53.70 70.00 IN00754302 ►Number of women-owned/led firms obtaining certification to supply to international firms (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 03-May-2018 11-Apr-2019 17-Oct-2019 30-Jun-2021 Component 4: Project Management and Monitoring and Evaluation IN00754295 ►Total number of SMEs consulted to get their feedback on project implementation for the matching grant scheme (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 16.00 20.00 Date 03-May-2018 11-Apr-2019 17-Oct-2019 30-Jun-2021  Consulted 16 firms of first and second round B2B beneficiaries.  Of the total 16 firms, the contract agreement of two firms (Walia and Modjo Tannery) canceled Comments: due to environment aspect. IN00754298 10/28/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Ethiopia Competitiveness and Job Creation Project (P143302) ►Percentage of grievances satisfactorily resolved within the stipulated timeframe (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 80.00 98.00 100.00 80.00 Date 03-May-2018 11-Apr-2019 17-Oct-2019 30-Jun-2021  A total of 116 grievances have been lodged both at Bole Lemi and kilnto. o Out of the total 29 Grievances that have been lodged at Bole Lemi, All of them were resolved. o Similarly, all 87 Grievances that have been associated with blast at Kilinto were Comments: resolved.  Some 114 cases related with voluntary resettlement requested by communities around Bole Lemi IP and the issue is resolved by ACRA road construction. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P143302 IDA-54510 Effective USD 250.00 250.00 0.00 227.20 0.00 100% P143302 IDA-62630 Effective USD 175.00 175.00 0.00 61.17 106.04 37% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P143302 IDA-54510 Effective 13-May-2014 20-May-2014 04-Aug-2014 30-Jun-2020 30-Jun-2020 P143302 IDA-62630 Effective 25-Jun-2018 29-Jun-2018 11-Dec-2018 07-Jul-2021 07-Jul-2021 Cumulative Disbursements 10/28/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Ethiopia Competitiveness and Job Creation Project (P143302) Restructuring History Level 2 Approved on 01-Nov-2014 ,Level 2 Approved on 20-May-2015 Related Project(s) P164429-Ethiopia Competitiveness and Job Creation Project-Additional Financing 10/28/2019 Page 8 of 8