The World Bank Implementation Status & Results Report Rwanda Housing Finance Project (P165649) Rwanda Housing Finance Project (P165649) AFRICA | Rwanda | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 3 | ARCHIVED on 18-Mar-2020 | ISR39835 | Implementing Agencies: Development Bank of Rwanda, Ministry of Finance and Economic Planning Key Dates Key Project Dates Bank Approval Date: 29-Nov-2018 Effectiveness Date: 10-Apr-2019 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2023 Revised Closing Date: 31-Dec-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To expand access to housing finance to households and to support capital market development in Rwanda. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Provision of Long-Term Finance to Expand Housing Finance:(Cost $147.00 M) Technical Assistance and Implementation Support:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions  The project became effective on April 10, 2019 with the first disbursement ($7.66 Million) made on June 27, 2019. Five banks have signed participation agreements with the implementing agency - the Development Bank of Rwanda (BRD) to join the project and access long- term funding for mortgage financing. The level of disbursement and budget execution remains at 5.3% and 0.6% respectively due to delays in construction of housing units within the project's eligibility bracket with only 200 units expected in June 2020 (vs. target of 1,193 units) from Rugarama project. This has resulted in slow uptake by financial institutions (FIs) who prefer to wait for availability of the houses to have a draw-down from the line of credit. To speed-up housing supply, the BRD is supporting real estate developers in addressing the main challenges including accessing finance and speeding-up infrastructure provision by government. Moreover, the IFC financial investment in one affordable housing development - Kinyinya project - is at advanced stage.  A technical assistance to support the creation and operationalization of the Rwanda Mortgage Refinance Company (RMRC) was launched in July 2019 and a Business Plan for the RMRC finalized in December 2019. A regulation governing the RMRC activities was approved by the central bank (BNR) in the same month and is planned to be gazetted in March 2020. Key immediate milestones to expedite the 3/18/2020 Page 1 of 6 The World Bank Implementation Status & Results Report Rwanda Housing Finance Project (P165649) establishment process are appointment by MINECOFIN/BRD of a transaction advisor to lead the RMRC equity raising, RMRC incorporation, and appointment of an interim management.  The Bank team is supporting the BRD with hiring a housing finance expert who will be deployed as long-term technical advisor to strengthen and enhance capacity of the PIU team. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other Substantial -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Number of housing loans financed by this project IN00781106 ►Number of housing loans financed by this project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6,000.00 Date 31-Dec-2017 28-Aug-2019 27-Feb-2020 31-Dec-2024 Comments: This indicator measures the number of housing loans financed by this project. Number of housing loans financed by financial institutions IN00781107 3/18/2020 Page 2 of 6 The World Bank Implementation Status & Results Report Rwanda Housing Finance Project (P165649) ►Number of housing loans financed by financial institutions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 29-Dec-2017 28-Aug-2019 27-Feb-2020 31-Dec-2024 This indicator measures the percentage increase of housing loans financed by Rwandan financial Comments: institutions (increase in the total number of housing loans issued by Rwandan financial institutions compared to baseline (number of housing loans issued in 2018) Number of bonds issued by RMRC IN00781108 ►Number of bonds issued by RMRC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 29-Dec-2017 28-Aug-2019 27-Feb-2020 29-Dec-2023 Comments: This indicator measures the number of bonds issued by the RMRC on the capital market. Volume of bonds issued by RMRC IN00781109 ►Volume of bonds issued by RMRC (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 35,000,000.00 Date 31-Dec-2018 28-Aug-2019 27-Feb-2020 29-Dec-2023 Comments: This indicator measures the volume of bonds (USD) issued by the RMRC on the capital market. Overall Comments PDO Five banks have signed participation agreements with the BRD. Intermediate Results Indicators by Components Provision of Long-Term Finance to Expand Housing Finance IN00781110 ►Number of Participating Financial Institutions (LoC) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 3/18/2020 Page 3 of 6 The World Bank Implementation Status & Results Report Rwanda Housing Finance Project (P165649) Value 0.00 0.00 0.00 5.00 Date 29-Dec-2017 28-Aug-2019 27-Feb-2020 31-Dec-2025 This indicator measures the number of financial institutions which access the line of credit for mortgage financing under this project. Comments: IN00781112 ►Number of Participating Financial Institutions (Shareholders of RMRC) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 29-Dec-2017 28-Aug-2019 27-Feb-2020 31-Dec-2025 Comments: This indicator measures the number of financial institutions which become shareholders of the RMRC. IN00781113 ►Average maturity of housing loans financed by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 31-Dec-2018 28-Aug-2019 27-Feb-2020 29-Dec-2023 Comments: This indicator measures the average maturity of housing loans financed by the project. IN00781114 ►Project beneficiaries satisfied with access to housing finance (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 31-Dec-2018 28-Aug-2019 27-Feb-2020 31-Dec-2024 This indicator measures the satisfaction of project beneficiaries with access to housing finance. The definition of project beneficiaries for this indicator extends beyond direct project beneficiaries to cover a wider range of relevant public and private stakeholders. This indicator will build on the successful and tested format of thematic roundtable discussions which were held with key stakeholders within the GoR, Comments: developers, financial sector representatives, and nongovernmental organizations engaged in housing development and finance to seek their feedback on project design and implementation arrangements. The team will maintain these consultations throughout the lifetime of the project through annual roundtable discussions and report on their outcomes in supervision reports. Technical Assistance and Implementation Support IN00781111 ►Number of entities receiving technical assistance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 2.00 8.00 3/18/2020 Page 4 of 6 The World Bank Implementation Status & Results Report Rwanda Housing Finance Project (P165649) Date 29-Dec-2017 28-Aug-2019 27-Feb-2020 31-Dec-2025 This indicator measures the number of entities receiving technical assistance and capacity building under Comments: the project. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P165649 IDA-63430 Effective USD 150.00 150.00 0.00 7.66 136.72 5.3% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P165649 IDA-63430 Effective 29-Nov-2018 12-Dec-2018 10-Apr-2019 31-Dec-2023 31-Dec-2023 Cumulative Disbursements 3/18/2020 Page 5 of 6 The World Bank Implementation Status & Results Report Rwanda Housing Finance Project (P165649) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 3/18/2020 Page 6 of 6