Public Disclosure Copy The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) Myanmar Financial Sector Development Project (P154389) EAST ASIA AND PACIFIC | Myanmar | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 2 | ARCHIVED on 29-Jan-2018 | ISR31098 | Implementing Agencies: Ministry of Planning and Finance, Central Bank of Myanmar, Ministry of Planning and Finance Key Dates Key Project Dates Bank Approval Date:20-Dec-2016 Effectiveness Date:27-Jun-2017 Planned Mid Term Review Date:03-Dec-2018 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2021 Revised Closing Date:30-Jun-2021 Project Development Objectives Project Development Objective (from Project Appraisal Document) To expand access to finance in Myanmar and, in the event of an Eligible Crisis or Emergency, to provide immediate and effective response to such Eligible Crisis or Emergency. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Reform of state-owned banks:(Cost $37.00 M) Upgrading of the financial sector legal, regulatory, and supervisory framework:(Cost $37.00 M) Modernization of the CBM and financial infrastructure:(Cost $24.00 M) Project coordination and monitoring:(Cost $2.00 M) Contingent emergency response Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Satisfactory  Moderately Satisfactory Overall Risk Rating  High  High 1/29/2018 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) Implementation Status and Key Decisions Project Effectiveness and disbursement progress The project became effective on June 27, 2017 and within one month of effectiveness, the Financial Regulatory Department (FRD), which is under the MOPF, opened its two designated accounts and requisite trainings were held for PIU staffs of MOPF and CBM. In collaboration with CBM, MOPF finalized their six months work plans, cash forecasts, budget templates, and withdrawal applications. Initial fund transfers USD 2.33 million to FRD were completed and disbursed on December 7, 2017. The task team has been providing constant implementation support with three missions conducted in July, September and December, 2017. The main objectives of those missions were (i) to expedite the special diagnostic of SOBs; ii) to continue the various TA activities under the KTF and DFID Trust Fund on financial sector development; iii) to support MFSDP-IDA project implementation. In addition, the Project Coordinating Units (PCUs) have received continuous support from staff based in Yangon on technical, procurement, and FM matters. The project has supported the MOPF and CBM in undertaking significant accomplishments across various components. Procurement delay is a key issue with the project along with DLI fulfillment. The delay in adoption of the governance policy for the State owned banks and the delay in the issuance of the directives by CBM on governance including fit and proper, related parties, external auditors has resulted in non fulfillment of DLI 1.1 and 1.2. The PCU along with WB team will work closely to expedite the procurement process and ensure DLI fulfillment along with implementation of the various activities of the project. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  High  High  High Macroeconomic  Moderate  Moderate  Moderate Sector Strategies and Policies  Low  Low  Low Technical Design of Project or Program  Moderate  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  High  High  High Fiduciary  High  High  High Environment and Social  Low  Low  Low Stakeholders  Low  Low  Low Other  --  --  -- Overall  High  High  High Results Project Development Objective Indicators 1/29/2018 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) PHINDPDOTBL  Adults with active transaction accounts (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 22.80 22.80 22.80 32.00 Date 31-Dec-2014 01-Apr-2017 01-Apr-2017 31-Dec-2020 PHINDPDOTBL  Adults in the poorest 40% with accounts at a financial institution (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.10 16.10 16.10 20.00 Date 31-Dec-2014 01-Apr-2017 01-Apr-2017 31-Dec-2020 PHINDPDOTBL  Loans from commerical banks (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 8.00 8.00 15.00 Date 31-Dec-2014 01-Apr-2017 01-Apr-2017 31-Dec-2020 Overall Comments Intermediate Results Indicators PHINDIRITBL  Improved transparency of state-owned banks (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 02-Jan-2017 01-Apr-2017 29-Dec-2017 20-Jun-2018 1/29/2018 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) PHINDIRITBL  Improved soundness and transparency of financial institutions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 15.00 50.00 Date 02-Jan-2017 01-Apr-2017 29-Dec-2017 31-Dec-2020 PHINDIRITBL  Upgrading of NBFI supervisory capacity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 3.00 Date 02-Jan-2017 01-Apr-2017 29-Dec-2017 31-Dec-2020 PHINDIRITBL  Banks connected to CBM (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 20.00 80.00 Date 29-Nov-2016 01-Apr-2017 29-Dec-2017 30-Dec-2020 PHINDIRITBL  Capacity building for citizen engagement and activities empowering citizens (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1.00 Date 29-Nov-2016 -- 01-Apr-2017 30-Dec-2020 Overall Comments The baseline survey for consumer protection is yet to be finalized to enable the launch of consumer protection capacity building within and outside CBM. 1/29/2018 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P154389 IDA-59300 Effective USD 100.00 100.00 0.00 2.33 99.23 2.3% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154389 IDA-59300 Effective 20-Dec-2016 11-Apr-2017 27-Jun-2017 30-Jun-2021 30-Jun-2021 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 1/29/2018 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) There are no related projects. 1/29/2018 Page 6 of 6 Public Disclosure Copy