Yes . Compliance Policy Does the project depart from the CAS in content or in other significant respects? Yes [ ] No [ X ] . Does the project require any waivers of Bank policies? Yes [ ] No [ X ] Have been approved by Bank management? Yes [ ] No [ X ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ] Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] . Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed OP/BP 7.60 X . Legal Covenants Name Recurrent Due Date Frequency Institutional Arrangements Description of Covenant Name Recurrent Due Date Frequency Safeguards Description of Covenant Borrower and PIE to comply with ESMF Name Recurrent Due Date Frequency Mid-term Review Description of Covenant
2.1. Capacity Rating Low Description: EFSA has the required capacity to implement the operation. Risk Management: EFSA is the principal government body regulating and facilitating non-bank financial services in Egypt. EFSA currently has a strong professional cadre at the senior management and officer levels. EFSA has a good track record with the World Bank which showed that it has adequate capacity to implement, coordinate and manage the operation. Moreover, the project will be providing capacity to the implementing entity, and developing a clear institutional framework for execution to streamline the process and ensure successful completion of tasks. In addition, the MENA TA Facility will be investing in the capacity building of EFSA to manage and implement projects. Resp: Bank/ EFSA Stage: Prep. Recurrent: Due Date: March 25, 2014 Status: Completed 2.2. Governance Rating Moderate Description: EFSA is financially and administratively independent, and operates under a mandate established under law. There is no significant governance risks associated with the key implementing partner (EFSA) as such. Risk Management: Close attention will be paid to key governance factors in consultation with EFSA as the preparation work proceeds and ORAF will be updated accordingly. Resp: EFSA/Bank Stage: Prep. Recurrent: Due Date: March 25, 2014 Frequency: Status: Ongoing 3. Project 3.1. Design Rating Low Description: Lack of expertise on relevant technical subjects may delay the project implementation. Risk Management: Longer-term consultants and capacity building and training to EFSA staff to provide support from the onset and during project implementation will build sustainable capacity and minimize this risk.
Resp: EFSA /Bank Stage: Impl. Recurrent: Due Date: March 31, 2014 Frequency: Status: Ongoing 3.2. Social and Environmental Rating Low Description: Social and environmental risks are minimal due to this being a technical assistance project to improve regulatory framework Risk Management: The proposed project is classified as a Category C, as it is likely to have minimal or no adverse environmental impacts. No environmental safeguards instruments other than the ISDS need to be prepared for this project. Resp: Bank/EFSA Stage: Prep. Recurrent: Due Date: March 31, 2014 Frequency: Status: Ongoing 3.3. Program and Donor Rating Moderate Description: Inadequate technical assistance provided by donors and government entities. Risk Management: The World Bank is working closely and liaising with donors active in the Microfinance sector, from the scoping stage onwards in an effort to harmonize and streamline the efforts of all institutions. No additional risk mitigation requirements anticipated. Resp: Bank Stage: Prep. Recurrent: Due Date: March 31, 2014 Frequency: Status: Ongoing 3.4. Delivery Monitoring and Sustainability Rating Moderate Description: Ability to exercise adequate level of project supervision in view of the current uncertainties in the region. Description: EFSA lack of technical and institutional capacity to maintain project Risk Management: from the local country office are core team members involved in project preparation and will be involved in the project ongoing supervision. The country team also draws upon financial inclusion experts based in headquarters. Risk Management: One of the main project components is providing training and capacity building to EFSA staff to ensure technical and institutional capacity.
Annex 5 Ongoing Coordination Mapping Level: Legislation, Regulation, and Supervision Activity Implementing Agency/TA Provider Description/Focus Beneficiaries Funding Status TA to Egyptian Financial Supervisory Authority (EFSA) World Bank Technical assistance in drafting the microfinance law EFSA IFC World Bank MSME TA Facility Ongoing TA to EFSA in developing new microfinance law GIZ Financed consultant reviewing elements of new microfinance law EFSA GIZ Completed Level: Support Services and Infrastructure Support to Central Bank of Egypt (CBE) World Bank Developing a credit guarantee facility for MSME financing CBE IFC World Bank MSME TA Facility Ongoing TA to Social Fund for Development (SFD) World Bank Establishment of M&E, Innovation, and Gender Units; Gender entrepreneurship work SFD IFC World Bank MSME TA Facility Ongoing TA to Egypt Post World Bank Product development, MFI partnership, risk management and Islamic financial services Egypt Post IFC World Bank MSME TA Facility Ongoing CGAP Market Building Workshops (periodic) CGAP National financial inclusion strategies, data needs, regulatory frameworks; Supports institutional TA requirements. Providers and government CGAP Donor Funds / GIZ Cross Funding Ongoing
Development of Venture Capital and Early Stage Innovation Financing World Bank in Conjunction with the University of California at Berkeley Objective is to build the ecosystem necessary for early stage innovation financing Market players (regulators, providers, donors) IFC World Bank MSME TA Facility Completed Micro Level: Financial Service Providers Egyptian Banking Institute (EBI) to MSME departments IFC Design of new financial products, strengthening corporate governance, and improving credit information systems Banque Misr, Alex Bank IFC World Bank MSME TA Facility Ongoing TA to NGO-MFIs IFC in partnership with the Egyptian microfinance network Focusing on governance, financial management, and better serving women/youth via product and delivery channel development Dakahleya, Al-Tadamun, Lead Foundation IFC World Bank MSME TA Facility Ongoing TA on Islamic Finance Product Development Egyptian Banking Institute Islamic finance product development World Bank MNSFP in conjunction with Islamic Development Bank Ongoing TA to Lead Foundation on Product Development Women's World Banking Gender-responsive credit products Lead Foundation Core Funding Ongoing Clients and Research Entrepreneurship Training to Women World Bank; SFD Trainings focused on business planning, feasibility studies, access to finance, and linking startups to mentors and incubators Women Groups in Alexandria and underserved governorates IFC World Bank MSME TA Facility Ongoing
Micro, Small, and Enterprise Support Work (Financial and Non-Financial) MSME Development Project ($200 mn) SFD Line of credit to banks and MFIs to encourage downscaling Financial Institutions, MSMEs World Bank investment lending loan Ongoing 2015) Promoting Innovation for Inclusive Financial Access World Bank Supervises; SFD Implements Line of credit to banks, MFIs, leasing companies, venture capital companies; new financial products for MSEs (financial leasing, factoring, venture capital); Financial institutions, MSMEs through greater access to finance World Bank investment lending loan approval planned April 1 2014 MSME development project ($300 mn) SFD Line of credit to banks and MFIs to encourage downscaling Financial institutions, MSMEs African Development Bank Ongoing MSME development project ($50 mn) Line of credit to banks and other financial institutions to encourage downscaling Financial institutions, MSMEs Arab Fund for Economic and Social Development (AFESD) Ongoing MSME development project ($50 mn) Line of credit to banks and other financial institutions to encourage downscaling Financial institutions, MSMEs Khalifa Fund Planned MSME development project ($50 mn) Line of credit to banks and other financial institutions to encourage Islamic Finance development Financial institutions, MSMEs Islamic Development Bank