Congo, Democratic Republic of Democratic Republic of Congo- Sme Development and Growth Project
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Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD2448 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF US$100 MILLION TO THE DEMOCRATIC REPUBLIC OF CONGO Public Disclosure Authorized FOR A DEMOCRATIC REPUBLIC OF CONGO- SME DEVELOPMENT AND GROWTH PROJECT June 7, 2018 Public Disclosure Authorized Finance, Competitiveness And Innovation Global Practice Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. Public Disclosure Authorized CURRENCY EQUIVALENTS Currency Unit = US $ FISCAL YEAR January 1 - December 31 Regional Vice President: Makhtar Diop Country Director: Jean-Christophe Carret Senior Global Practice Director: Ceyla Pazarbasioglu-Dutz Practice Manager: Rashmi Shankar Task Team Leaders: Alain Tienmfoltien Traore, Milaine Rossanaly ABBREVIATIONS AND ACRONYMS AfDB African Development Bank BDS Business Development Services BPC Business Plan Competition CAR Central African Republic CAS Country Assistance Strategy CEDAW Convention on the Elimination of all Forms of Discrimination Against Women CFAA Country Financial Accountability Assessment CFEF Cellule d’Exécution des Financements en Faveur des Etats Fragiles (Execution Unit for Financing in Fragile States) CIIP Competitive Industries and Innovation Program COPEMECO Confédération des Petites et Moyennes Entreprises du Congo (Confederation of Small and Medium-Sized Enterprises of the Congo) DA Designated Account DB Doing Business DFID Department for International Development DRC Democratic Republic of Congo ERR Economic Rate of Return ESMF Environmental and Social Management Framework EU European Union FCS Fragile and Conflict-Affected States FEC Fédération des Entreprises du Congo (Association of Congolese Enterprises) FENAPEC Féderation Nationale des Artisans, Petites et Moyennes Entreprises du Congo (National Federation of Artisants and Small and Medium-Sized Enterprises in Congo) FIAS Facility for Investment Climate Advisory Services FM Financial Management FPD Finance and Private Sector Development FPI Fonds de Promotion de l’Industrie (Fund for Industry Promotion) GDP Gross Domestic Product GEM Girls Empowered by Microfranchise GIZ Gesellschaft für Internationale Zusammenarbeit (German Development Agency) GP Global Practice GRS Grievance Redress Service GTZ German Agency for Technical Cooperation IBRD International Bank for Reconstruction and Development ICR Implementation Completion Report ICT Information and Communication Technology IDA International Development Association IEG Independent Evaluation Group IFAC International Federation of Accountants IFAD International Fund for Agricultural Development IFC International Finance Corporation IFR Interim Financial Report IGF Inspection Générale des Finances (General Inspection of Finances) ILO International Labor Organization IPF Investment Project Financing IPMP Integrated Pest Management Plan IRC Institutional Reform Credit ISR Implementation Status and Results Report JICA Japan International Cooperation Agency JSDF Japanese Social Development Fund KfW Kreditanstalt für Wiederaufbau - “Reconstruction Credit Institute” (German Development Bank) M&E Monitoring and Evaluation MDG Millennium Development Goal MFD Maximize Finance for Development MSME Micro, Small and Medium-Sized Enterprise NGO Non-Governmental Organization NVP Net Present Value Analysis NSDP National Strategic Development Plan OHADA “Organisation pour l’Harmonisation en Afrique du Droit des Affaires” (Organization for the Harmonization of Business Law in Africa) OM Operations Manual OPCS Operations Policy and Country Services OPEC Office de promotion de moyennes et petites entreprises congolaise (Office of promotion for Congolese Small and Medium-sized Enterprises) PDO Project Development Objective PSU Provincial Supervision Units PEFA Public Expenditure and Financial Accountability PER Public Expenditure Review PFM Public Financial Management PIM Project Implementation Manual PIU Project Implementation Unit PLR Performance and Learning Review PMPP Plan of Management of Pests and Pesticides PPA Project Preparation Advance PPD Promotion of the Public-Private Dialogue PPF Project Preparation Fund PPSD Project Procurement Strategy for Development PROCOKI Produits de Construction de Kinshasa (Construction Products of Kinshasa) PROMINES Projet d’Appui au Secteur Minier (Mining Sector Support Project) RAP Resettlement Action Plan RCT Randomized Control Trial RPF Resettlement Policy Framework SCD Systematic Country Diagnostic SMART Specific, Measurable, Attainable, Realistic and Time-bound SMEs Small and Medium Enterprises SOE State-Owned Enterprise SORT Systematic Operations Risk-Rating Tool SSA Sub-Saharan Africa SSRN Social Science Research Network STEP Systematic Tracking of Exchanges in Procurement TA Technical Assistance T&C Trade and Competitiveness TOR Terms of Reference TVET Technical and Vocational Education and Training UCS Use of Country Systems UN United Nations UNCDF United Nations Capital Development Fund UNDO United Nations Disengagement Observer Force USAID United States Agency for International Development VAT Value Added Tax VLSA Village Savings and Loan Associations WB World Bank WBG World Bank Group WBL Women Business and the Law WDI World Development Indicators WeFi Women Entrepreneurs Finance Initiative WEDEE Women Entrepreneurship Development and Economic Empowerment WGPP Western Growth Pole Project The World Bank DEMOCRATIC REPUBLIC OF CONGO- SME DEVELOPMENT AND GROWTH PROJECT (P160806) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Congo, Democratic DRC- SME Development and Growth Project Republic of Project ID Financing Instrument Environmental Assessment Category Investment Project P160806 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [✓] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 28-Jun-2018 28-Dec-2023 Bank/IFC Collaboration Joint Level Yes Complementary or Interdependent project requiring active coordination Proposed Development Objective(s) The project development objective is to support the growth of Micro, Small and Medium-sized Enterprises (MSMEs) and increase employment and entrepreneurship opportunities for youth and women in select areas. Page 1 of 112 The World Bank DEMOCRATIC REPUBLIC OF CONGO- SME DEVELOPMENT AND GROWTH PROJECT (P160806) Components Component Name Cost (US$, millions) Component 1: Support entrepreneurship opportunities for youth and women 44,000,000.00 Component 2. SME Development 42,000,000.00 Component 3: Capacity building and Project Management 14,000,000.00 Organizations Borrower: Ministry of Finance Implementing Agency: Ministry of SME PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 100.00 Total Financing 100.00 of which IBRD/IDA 100.00 Financing Gap 0.00 DETAILS-NewFinEnh1 World Bank Group Financing International Development Association (IDA) 100.00 IDA Credit 100.00 IDA Resources (in US$, Millions) Credit Amount Grant Amount Total Amount National PBA 100.00 0.00 100.00 Total 100.00 0.00 100.00 Expected Disbursements (in US$, Millions) Page 2 of 112 The World Bank DEMOCRATIC REPUBLIC OF CONGO- SME DEVELOPMENT AND GROWTH PROJECT (P160806) WB Fiscal Year 2018 2019 2020 2021 2022 2023 Annual 1.50 10.00 25.00 30.00 25.00 8.50 Cumulative 1.50 11.50 36.50 66.50 91.50 100.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Finance, Competitiveness and Innovation Education, Gender, Macroeconomics, Trade and Investment Climate Change and Disaster Screening This operation has not been screened for short and long-term climate change and disaster risks Explanation Screening in progress Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of Yes country gaps identified through SCD and CPF b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or Yes men's empowerment c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating 1. Political and Governance High 2. Macroeconomic Substantial 3. Sector Strategies and Policies Moderate 4. Technical Design of Project or Program Moderate 5. Institutional Capacity for Implementation and Sustainability Substantial Page 3 of 112 The World Bank DEMOCRATIC REPUBLIC OF CONGO- SME DEVELOPMENT AND GROWTH PROJECT (P160806) 6. Fiduciary High 7. Environment and Social Substantial 8. Stakeholders Moderate 9. Other 10. Overall High COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No Safeguard Policies Triggered by the Project Yes