The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) LB Supporting Innovation in SMEs Project (P127306) MIDDLE EAST AND NORTH AFRICA | Lebanon | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 11 | ARCHIVED on 24-Jan-2019 | ISR35801 | Implementing Agencies: Lebanese Republic, Kafalat Key Dates Key Project Dates Bank Approval Date: 31-Oct-2012 Effectiveness Date: 03-Feb-2015 Planned Mid Term Review Date: 20-Feb-2017 Actual Mid-Term Review Date: 20-Mar-2017 Original Closing Date: 30-Jun-2018 Revised Closing Date: 30-Jun-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project’s development objective is to encourage the equity investment market to increase the supply of early stage investment finance for financially viable, new, and existing innovative firms. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Innovation in SMEs (iSMEs) Funding Program:(Cost $27.50 M) Project Management:(Cost $2.50 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 iSME project is a USD 30 million investment lending project that develops the Lebanese equity investment market and increases the supply of early stage investment financing for innovative firms. The project finances a USD 25 million early stage equity fund that makes co-investments alongside institutional investors. It also provides concept development grants to improve products and processes of seed stage firms. The project is on track to meet most of its expected results targets. Since June 2018 (last reporting period), the four new direct equity investments have been made at a total value of $3,420,000. The fund boasts eighteen firms in its portfolio. The project is proving to be a useful platform for firms to mobilize a variety of early-stage equity finance above project resources alone. Seed stage firms receiving grants under the project have gone on to raise significant financing from inter alia, venture capital funds, accelerators, and angel networks. The project is outperforming with regards to job creation and having impressive impacts on the employability of women and youth. Overall, the project supports the Government of Lebanon in taking a leadership position on entrepreneurship in 1/24/2019 Page 1 of 6 The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) the Middle East and North Africa region. Those interested in applying for capital funding can contact Kafalat through the information provided on their website. 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 -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Low Low Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Encourage the equity investment market to increase the supply of early stage investment finance for IN00609309 ►a) Total number of firms receiving equity financing leveraging investors and the iSME funding program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 18.00 110.00 Date 04-Feb-2015 30-Apr-2018 14-Jan-2019 30-Jun-2020 IN00609345 No. of beneficiary firms, women owned (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 10.00 10.00 Date 04-Feb-2015 30-Apr-2018 14-Jan-2019 30-Jun-2020 IN00609310 ►b) Total amount of equity financing received (leveraged) through the project, leveraging investors and the iSME funding program (Amount(USD), Custom) 1/24/2019 Page 2 of 6 The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20,300,000.00 31,503,500.00 50,000,000.00 Date 04-Feb-2015 30-Apr-2018 14-Jan-2019 30-Jun-2020 IN00609336 ►c) Total number of firms receiving equity financing leveraging investors only (as a result of a Grant) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 41.00 41.00 30.00 Date 04-Feb-2015 30-Apr-2018 30-Apr-2018 30-Jun-2020 Figures will be updated during the 2019 jobs assessment exercise. Comments: IN00609308 ►a) Number of new/ improved products/processes offered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 166.00 Date 04-Feb-2015 30-Apr-2018 30-Apr-2018 30-Jun-2020 Figures to be updated during the 2019 jobs assessment exercise. Comments: IN00609337 ►b) Number of new start-ups created under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 61.00 61.00 70.00 Date 04-Feb-2015 30-Apr-2018 30-Apr-2018 30-Jun-2020 Indicator to be updated during February 2019 implementation support mission. Comments: IN00609338 ►b) No. of new jobs created in beneficiary SMEs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 180.00 Date 04-Feb-2015 30-Apr-2018 30-Apr-2018 30-Jun-2020 Figures to be updated during 2019 jobs assessment study, to be discussed with the client in February Comments: 2019. IN00609346 No. of new jobs created, of which % are filled by women (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 42.00 42.00 10.00 Date 04-Feb-2015 30-Apr-2018 30-Apr-2018 30-Jun-2020 1/24/2019 Page 3 of 6 The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) Intermediate Results Indicators by Components Innovation in SMEs (iSMEs) Funding Program IN00609339 ►Intermediate Result Indicator 1: No. of firms applying for Phase 1 proof of concept grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 287.00 296.00 400.00 Date 04-Feb-2015 30-Apr-2018 14-Jan-2019 30-Jun-2020 IN00609340 ►Intermediate Result Indicator 2: No. of firms receiving proof of concept grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 167.00 173.00 200.00 Date 04-Feb-2015 30-Apr-2018 30-Apr-2018 30-Jun-2020 IN00609341 ►Intermediate Result Indicator 3: Vol. of proof of concept grants (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,038,800.00 2,432,800.00 2,500,000.00 Date 04-Feb-2015 30-Apr-2018 14-Jan-2019 30-Jun-2020 IN00609342 ►Intermediate Result Indicator 4: No. of firms applying for equity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33.00 39.00 170.00 Date 04-Feb-2015 30-Apr-2018 14-Jan-2019 30-Jun-2020 IN00609343 ►Intermediate Result Indicator 5: No. of firms successfully receiving equity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 18.00 150.00 Date 04-Feb-2015 30-Apr-2018 14-Jan-2019 30-Jun-2018 IN00609344 ►Intermediate Result Indicator 6: Total vol. of Phase equity investments (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5,211,000.00 9,231,000.00 25,000,000.00 Date 04-Feb-2015 30-Apr-2018 14-Jan-2019 30-Jun-2020 1/24/2019 Page 4 of 6 The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P127306 IBRD-82020 Effective USD 30.00 30.00 0.00 12.90 17.10 43% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127306 IBRD-82020 Effective 31-Oct-2012 13-Feb-2013 03-Feb-2015 30-Jun-2018 30-Jun-2020 Cumulative Disbursements Restructuring History Level 2 Approved on 02-May-2018 Related Project(s) There are no related projects. 1/24/2019 Page 5 of 6 The World Bank Implementation Status & Results Report LB Supporting Innovation in SMEs Project (P127306) 1/24/2019 Page 6 of 6