Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Lao PDR Second Trade Development Facility Project (P130512) EAST ASIA AND PACIFIC | Lao People's Democratic Republic | Macroeconomics, Trade and Investment Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 10 | ARCHIVED on 05-Feb-2018 | ISR29397 | Implementing Agencies: Ministry of Industry and Commerce, Lao People's Democratic Republic, Department of Imports and Exports, Ministry of Industry and Commerce, Department of Foreign Trade Policy Department, Ministry of Industry and Commerce, Ministry of Industry and Commerce Key Dates Key Project Dates Bank Approval Date:04-Dec-2012 Effectiveness Date:08-May-2013 Planned Mid Term Review Date:11-May-2015 Actual Mid-Term Review Date:01-Jun-2015 Original Closing Date:31-Mar-2017 Revised Closing Date:30-Sep-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to support the implementation of government's trade and integration priorities outlined inthe2012 DTIS Roadmap, and in particular to contribute to improved competitiveness and diversification, focusing outside the naturalresource sectors. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Name Trade facilitation, trade policy and regulations:(Cost $5.80 M) Diversification and competitiveness:(Cost $5.20 M) Mainstreaming aid for trade:(Cost $5.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate 2/5/2018 Public Disclosure Copy Page 1 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Implementation Status and Key Decisions The Implementation Support Mission (December 5-8, 2017) for the Second Trade Development Facility Project (TDF-2) took stock of implementation performance and the quality of activities undertaken since the beginning of the project. Overall, Project performance is progressing well, with the Project Development Objective (PDO) and Implementation Progress (IP) rated consistently as ‘Satisfactory’ over the last 12 months. Disbursements are also on track as they stood at 90 percent on January 10, 2018 (or 81.3 percent if calculated against the total appraised amount of US$16.5 million). The budget is expected to be fully disbursed by the end of the project. Significant progress has been made in several areas. The Lao Services Portal (formerly known as Services Trade Investment Portal – STIP) was officially launched on August 31, 2017. Additional funds for the Challenge Facility have been committed, with 3 new proposals approved since May 2017. Business registration process mapping for central level and for two provinces (Vientiane Capital and Champasack) were completed end of November 2017. Recommendations for re-engineering the business registration process were submitted in December. Following the 10th Lao Business Forum held in March 2017, the Prime Minister Office issued two notifications to line ministries (in July and August) to closely follow-up the resolution of the issues raised at the 10th LBF. With only 9 months remaining before the end of the project, it will be essential to ensure all remaining resources can be fully committed and spent. This might require reallocating resources across components where needed. Close budget monitoring from the NIU and the IAs is thus essential. It is also critical that implementation efforts under the Trade in Services component, including in the area of distribution services, and the Non-Tariff Measures subcomponent continue. Continued high-level political support and involvement for follow-up, monitoring and project implementation is needed to achieve strong results on the ground. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Low  Low Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators 2/5/2018 Public Disclosure Copy Page 2 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDPDOTBL  Reduced mean number of days to clear imports (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.60 2.00 2.00 5.30 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data is updated every time a new ES is published. The next ES data should be available by September 2018. PHINDPDOTBL  Reduced mean number of days to clear exports (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.50 2.00 2.00 3.80 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data is updated every time a new ES is published. The next ES data should be available by September 2018. PHINDPDOTBL  Number of products at 6-digit level of the Harmonized System with exports exceeding USD 100,000 in a year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 282.00 317.00 311.00 300.00 Date 01-Apr-2013 31-Dec-2015 30-Dec-2016 01-Oct-2018 Comments Data source COMTRADE mirror data (import data from all countries) accessed through WITS. Indicator calculated with data available as of January 15, 2018. Some countries (in particular Vietnam) have not reported data for 2016 yet, so this number is likely to increase once that data will be reported. No data for 2017 has been reported. Overall Comments 2/5/2018 Public Disclosure Copy Page 3 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) The last Enterprise Survey data available is from August 2016. New Enterprise Survey data is expected by September 2018, in time to be included in the results framework for the final evaluation of the TDF-2. Intermediate Results Indicators PHINDIRITBL  Reduction in percent of firms identifying customs and trade regulations as a major constraint (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.80 7.60 7.60 2.80 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data is updated every time a new ES is published. The next ES data should be available by September 2018. PHINDIRITBL  Increase in number of hits for Lao PDR Trade Portal (per year) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.18 386.50 370.60 200.00 Date 31-Jan-2013 02-Jan-2017 01-Jan-2018 01-Oct-2018 PHINDIRITBL  Successful completion rates for Trade Facilitation capacity building program (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 90.00 90.00 Date 01-Apr-2013 30-Jun-2017 29-Dec-2017 01-Oct-2018 2/5/2018 Public Disclosure Copy Page 4 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Frequency and participation of National Trade Facilitation Secretariat meetings to resolve trade facilitation issues, with decisions documented and follow up actions prioritized (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 1.00 2.00 2.00 Date 01-Apr-2013 30-Jun-2017 29-Dec-2017 01-Oct-2018 Comments The Trade Facilitation Secretariat met twice during the past 12 months, i.e. in August and in November 2017. PHINDIRITBL  Reduction in the mean number of days required to obtain import licenses (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.70 5.40 5.40 9.00 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data is updated every time a new ES is published. The next ES data should be available by September 2018. PHINDIRITBL  Reduction in the mean number of days required for services firms to obtain operating licenses (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.70 13.60 13.60 10.10 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Enterprise Survey data is updated every time a new ES is published. The next ES data should be available by September 2018. 2/5/2018 Public Disclosure Copy Page 5 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Cumulative number of new regulations adopted affecting the telecom sector / insurance sector / professional services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 8.00 8.00 Date 01-Apr-2014 30-Jun-2017 29-Dec-2017 01-Oct-2018 Comments The 8 new regulations are: (i) Prime Minister's Decree establishing the Telecom Regulatory Authority; (ii) a Ministerial Decision establishing the mandate, functions and Responsibilities of Telecom Regulatory Authority; (iii) Business licensing for telecommunications sector; (iv) Interconnections, (v) Numbering, (vi) Competition for telecommunications; (vii) Spectrum management; and (viii) Ministerial Guideline on Insurance Business Operating License. PHINDIRITBL  Sales growth in BAF supported firms compared to non-supported firms (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21.00 21.00 20.00 Date 01-Apr-2013 31-Mar-2017 31-Mar-2017 01-Oct-2018 Comments The BAF component was successfully completed end of March 2017 PHINDIRITBL  Cumulative number of BAF grant approvals (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 208.00 208.00 150.00 Date 01-Apr-2013 31-Mar-2017 31-Mar-2017 31-Mar-2017 Comments The BAF component was successfully completed end of March 2017 2/5/2018 Public Disclosure Copy Page 6 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Average percentage of female owned businesses among approved applications by BAF (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 34.00 34.00 30.00 PHINDIRITBL  Within those businesses, percentage of women employed (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 42.00 42.00 30.00 PHINDIRITBL  Cumulative number of garment factory labor standards assessed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 5.00 Date 01-Apr-2013 30-Jun-2017 31-Aug-2017 01-Oct-2018 Comments The Factory Standards Improvement Scheme was successfully completed end of August 2017. PHINDIRITBL  Number of new company registrations per year in non-resource sectors (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4,353.00 8,987.00 6,707.00 4,657.00 Date 01-Jun-2015 30-Dec-2016 29-Dec-2017 01-Oct-2018 2/5/2018 Public Disclosure Copy Page 7 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Improved aid for trade governance moving toward a program based approach operating under the TPSWG (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Coordinated, Coordinated, joint work Coordinated, joint work Joint work planning and results planning and results planning and Fragmented, standalone monitoring supervised monitoring supervised Value result work programs by the Trade and by the Trade and Private monitoring Private Sector Working Sector Working Group supervised by Group (TPSWG) (TPSWG) the TPSWG Date 01-Apr-2013 28-Jun-2017 29-Dec-2017 01-Oct-2018 PHINDIRITBL  Perception of Lao Business Forum’s effectiveness increased (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 90% at least somewhat 60% perceive Somewhat effective Somewhat effective 40% effective (somewhat LBF as at least Value 59% and very effective and very effective 10% effective 59%, and very somewhat 31% effective 31%) effective Date 01-Apr-2013 26-Jul-2017 26-Jul-2017 01-Oct-2018 Comments The last LBF was held in March 2017. The next LBF will be held in March 2018 and new perception survey will be undertaken afterwards. PHINDIRITBL  Cumulative number of issues and concerns raised by small and women-led enterprises captured and actioned through the Lao Business Forum (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 10.00 2/5/2018 Public Disclosure Copy Page 8 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Increased share of firms with female management/ownership participation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 39.00 43.10 43.10 47.00 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 31-Mar-2017 Comments Enterprise Survey data is updated every time a new ES is published. The next ES data should be available by September 2018. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P130512 IDA-H8190 Effective USD 4.00 4.00 0.00 3.70 0.01 100% P130512 TF-14189 Effective USD 9.90 9.90 0.00 9.23 0.67 93% P130512 TF-A3946 Effective USD 1.30 1.30 0.00 0.70 0.60 54% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P130512 IDA-H8190 Effective 04-Dec-2012 28-Mar-2013 08-May-2013 31-Mar-2017 30-Sep-2018 P130512 TF-14189 Effective 28-Mar-2013 28-Mar-2013 08-May-2013 31-Mar-2017 30-Sep-2018 P130512 TF-A3946 Effective 19-Dec-2016 04-Jan-2017 04-Jan-2017 30-Sep-2018 30-Sep-2018 Cumulative Disbursements 2/5/2018 Public Disclosure Copy Page 9 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Restructuring History There has been no restructuring to date. Related Project(s) P159060-AF - SECOND TRADE DEVELOPMENT FACILITY PROJECT 2/5/2018 Public Disclosure Copy Page 10 of 10