€¦ · Web viewSeveral studies conducted: Policy actions for industrial waste exchange system in Egypt; Review of existing regulations and legislation regarding industrial waste

Egypt Individual Project Progress Reports: Annex 1 to the Main Report

June 30, 2018

Table of Contents

Egypt Portfolio Progress Overview.........................................................................................................2

Individual Project Progress Reports as of June 2018...............................................................................3

Green Growth: Industrial Waste Management and SME Entrepreneurship Hub.......3Support to Parliament: Building Capacity & Mainstreaming Inclusive Growth & Decentralization.....................................................................................................10Strengthening Rule of Law: Effective & Transparent Delivery of Justice & Rule-making............................................................................................................................... 18Egyptian Central Bank Clearing & Settlement Depositary System for Government Securities...............................................................................................................27MSME Support Programme in Egypt and the Social Fund for Development...........35Logismed Soft Regional Project: Egypt Activities...................................................48Supporting Public- Private Partnership (PPP) Execution in Egypt...........................57Regional Integration through Trade and Transport Corridors: Egypt Activities......63Leveraging Regulatory Reforms to Advance Financial Inclusion in Egypt..............68Enhancing the Investment Climate in Egypt, through Equal Access and Simplified Environment...........................................................................................................74Energy Social Safety Nets Sector Reforms Technical Assistance Project...............87Inclusive Regulations for Microfinance...................................................................94Towards inclusive and open governments: Promoting women’s participation in parliaments............................................................................................................................. 103Building Capacity & Institutional Strengthening of Ministry of International Cooperation............................................................................................................................. 110Strengthening Capacity of the ACA to Combat Corruption in Egypt.....................120Enhancing Social Housing Governance................................................................127

Egypt Portfolio Progress Overview

This table presents the length of time projects have been in implementation, most recent disbursements rates, and progress ratings over the last year.

Project Name Approval Date Start Date Closing Date

Total Funding Received

% Direct Cost Disb.

Additional Financing Leveraged

Progress to Objectives

Impl.Progress

DEC2017

JUN 2018

DEC2017

JUN 2018

EBRD MSME Support Programme and the Social Fund for Development 2/20/2013 4/1/2013 7/30/2019 2,936,080 47% 812,500 S S S S

EIB Logismed soft project (Regional)1 2/20/2013 7/31/2013 12/11/2018 1,565,403 23% 680,000 MS U U MU

AfDB Green Growth: Industrial Waste Management and SME Entrepreneurship Hub 5/15/2013 12/19/2013 9/30/2018 2,000,000 67% - S S S S

WB Energy/Social Safety Nets Sector Reforms Technical Assistance 5/15/2013 11/25/2013 7/31/2018 7,097,200 83% - MS MS MS MS

EIB Regional Integration through Trade and Transport 5/15/2013 10/31/2014 12/31/2018 4,230,000 14% - MS MS MS MS

AfDB/OECD Strengthening the Rule of Law: Enhancing Effective and Transparent Delivery of Justice and Rule-Making 6/11/2014 9/1/2014 2/28/2020 4,121,000 35% 2,320,000 MS MS MS MS

AfDB Support to Parliament: Building Capacity and Mainstreaming Inclusive Growth and Decentralization 6/11/2014 1/31/2016 9/30/2019 2,920,000 22% - MS S MU S

EBRD Clearing & Settlement Depositary System for Government Securities 6/11/2014 7/1/2014 12/31/2018 3,851,900 44% 3,220,000 MS MS MS MS

WB Inclusive Regulations for Microfinance Project 6/11/2014 8/1/2014 6/30/2020 4,505,000 59% - S S S S

WB/OECD Enhancing the Investment Climate through Equal Access and Simplified Environment for Investment 5/18/2015 7/1/2015 6/30/2019 7,043,400 72% - MS S S S

IFC Leveraging Regulatory Reform to Advance Financial Inclusion 5/18/2015 8/1/2015 6/30/2020 950,000 43% 167,000 S S S S

OECD Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making 5/18/2015 9/1/2015 9/30/2018 633,333 92% - S S S S

AfDB Building Capacity and Institutional Strengthening of the MOIC 12/8/2015 3/1/2016 3/31/2020 4,455,000 22% - MU MS MS MS

WB Enhancing Social Housing Governance 5/30/2016 6/1/2016 6/30/2019 2,503,970 35% - MS MS MS MS

EBRD Supporting Public-Private Partnership Execution 7/12/2016 11/30/2016 11/30/2018 2,406,200 - - MS MS MU MU

AfDB Strengthening Capacity of the ACA to Combat Corruption 5/23/2017 8/1/2017 8/1/2020 3,500,000 8% - MS S MU MS

Individual Project Progress Reports as of June 2018

Green Growth: Industrial Waste Management and SME Entrepreneurship Hub

A. Basic Project Information Activity Name: Green Growth: Industrial Waste Management and SME Entrepreneurship Hub in Egypt

Country Name: Egypt Name of Implementation Support Agency(ies): African Development Bank

Name of ISA Project Leader: Gehane El Sokkary Email of ISA Project Leader: [email protected]

Recipient Entity: Industrial Council for Technology & Innovation/Egyptian National Cleaner Production Center

Eng. Hanan El Hadary, Chairperson, Industrial Council for Technology and Innovation [email protected]

Eng. Ali Abo Sena, Director Egyptian National Cleaner Production Center [email protected]

Total Amount Approved by the Transition Fund (US$): 2,000,000

Additional Funds Leveraged and Source(s), if any (US$): in kind contribution by Recipient

Total Amount Disbursed (Direct and Indirect in US$): 1,364,058

Steering Committee Approval Date:

5/15/2013

Project Implementation Start Date: 12/19/2013

Project Closing Date:

9/30/2018

Pillar(s) to which Activity Responds (as per the proposal approved by the Steering Committee)

Primary Pillar: Investing in Sustainable Growth

Secondary Pillar(s): Competitiveness and IntegrationEnhancing Economic GovernanceInclusive Development and Job Creation

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project’s objective is to develop a sustainable and integrated industrial waste exchange system in the pilot area positioned as a Green Entrepreneurship Hub linking industrial wastes generators, potential users and recyclers to improve cross-industry resource efficiency, promote the development of new innovative SMEs, create green job opportunities, reduce the environmental impact of industrial waste and improve the lives of Egyptian citizens.

Rating for progress towards achievement of objective:

Satisfactory

Rating for overall implementation progress: Satisfactory

Brief Summary of Project Implementation Status:

Project implementation is progressing well although it could benefit from a faster pace of implementation, streamlined processing within the Ministry and improved ownership.

Several project outcomes have exceeded expectations, such as:1. Transactions from the waste exchange platform: The platform, which is still in piloting phase, has

already generated interest for waste exchange within Egypt and abroad. To date, the exchange platform has 108 registered companies, 84 posts, 38 requests, and 11 successful transactions recorded. The current challenge is the sustainability and operationalization of this waste exchange portal beyond the

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project life. 2. Contribution to the Waste Management Law: Following the project’s engagement with the relevant

stakeholders and the studies and policy workshops held industrial waste management, a new Waste Management Law was drafted, approved by Cabinet in March 2018, and sent to State Council for review before discussions in Parliament The Project has also been requested by the former Minister of Environment to contribute to the Executive Regulations of the law, in preparation for its adoption, on the specific sections related to industrial non-medical hazardous waste. This is currently being done.

3. Successful entrepreneurship development initiatives: As a result of the successful entrepreneurship awareness and development component under the project, the IWEX entrepreneurs were featured in a documentary that was screened during the 3rd Africa Science Technology and Innovation Forum which took place in Cairo, Egypt in February 2018 held under the patronage of the President of the Egypt, and attended by over 600 persons from Africa and beyond. In addition, the project was represented by a large booth in the Forum where 5 of the most promising entrepreneurs displayed their innovative products.

4. Regional integration and cooperation: The Project provided the Sudan Clean Production Center with hands-on training and capacity building in the areas of waste exchange and entrepreneurship development.

5. National map of industrial waste: The mapping of the waste in 2 industrial cities, 10 th of Ramadan and 6th

of October, is deemed critical by the GoE to the extent that they requested an assignment to extrapolate from these door-to-door surveys in order to have an indicative map of waste that covers the country. This is currently on-going.

6. Co-working space and industrial waste incubator: The project is currently in the process of developing a co-working space in 10th of Ramadan City for waste entrepreneurs, as well as studying the establishment of an industrial waste incubator with a university.

Disbursement related issues: The Ministry of Finance recently issued new instructions regulating payments by Ministries and entities related to Ministries, based on the concept of pooling of funds. Given that pooling of funds is against AfDB policy, the Bank has requested the project to halt all payments from the special account and rely instead on direct payment by the AfDB, until further notice.

Audit: The ineligible expenditures that had been highlighted as a result of the external audit have been refunded back to the Bank. Currently the Bank is expecting the external audit report for the period January- December 2017.

C. Implementation Status of Components Component 1: Mapping of the industrial waste at the enterprise level in two selected pilot areas (10th of Ramadan and 6th of October industrial cities) Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 510,000 (down from

670,000)

Sub-component 1.1: Mapping in 10th of Ramadan City and development of inventory database of the industrial waste:Status of Implementation: Completed. Main findings: 418 factories were included in the mapping, considered a representative sample of the industries in the 10th of Ramadan City. The most common method of disposal was selling to traders, and the most common process that generated waste was production. Many waste fractions must be pooled together to generate substantive bulk meaningful for recycling. Several of the identified waste are recyclable and include: plastics, paper, metals, cardboard, lubricant oils, etc. No new technologies are envisaged but there is a need to inform enterprises who are presently not recycling these wastes of the potential. Awareness and training workshops on industrial symbiosis would be highly beneficial, as well as the promotion of the recycling platform established under the project.Sub-component 1.2: Mapping in 6th of October:

Status of Implementation: Assignment on-going. Sub-component 1.3: Operationalization of the waste exchange platform:Status of Implementation: Assignment completed.New Activity: Sub-component 1.4: Nationwide extrapolation of waste and pre-feasibility in Shaq El Teban.Status of Implementation: Assignment tendered and currently under award.

Component 2: Policy Recommendations towards an enabling environment for industrial waste exchange Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 175,000 (up from

140,000)Sub-component 2.1: Reviewing existing regulations and legislations

Status of Implementation: Completed.Sub-component 2.2: Compiling Int’l Best Practices in regulations/legislation

Status of Implementation: Completed. Sub-component 2.3: Compiling Int’l Best Practices on International Waste CouncilsStatus of Implementation: Completed.Sub-component 2.4: Compiling Best Practices on Inclusion of Informal Waste CollectorsStatus of Implementation: Assignment tendered and under award.Sub-component 2.5: Awareness raising seminars & production of policy briefStatus of Implementation: Completed. Sub-component 2.6: Support to National Strategy for Entrepreneurship and MSMEs Status of Implementation Assignment tendered and under award.

Sub-component 2.7: Input to the legislation on Industrial waste: Status of Implementation: Assignment tendered and under award.

Component 3: Raising Awareness and capacity building of stakeholders on IWEX Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 580,000 (up from

560,000)Sub-component 3.1: Dissemination workshop on national and local levels

Status of Implementation: On-going till project closure.Sub-component 3.2: Develop and launch a marketing campaign & project documentation

Status of Implementation: Near completion.Sub-component 3.3: Study Tours

Status of Implementation: Completed. Two study tours were fielded: an 8-person tour was fielded to South Africa on December 6, 2015 for one week to share experiences with the SA waste exchange program operated by the SA Clean Production Center; a 7-person study tour was fielded to the UK, from July 2-9, 2017. Sub-component 3.3: Website developmentStatus of Implementation: Completed. Sub-component 3.4: Raising awareness on entrepreneurship and training of University Students (Youthinkgreen)Status of Implementation: Completed. A total of 88 university students were trained over a 6 month period on entrepreneurship development culminating with a summer camp entitled “Sustainability and Entrepreneurship Youth Program” by Youthinkgreen-Egypt. Sub-component 3.5: New Activity Regional transfer of knowledge to Sudan National Clean Production Center (in replacement of Business to Business Consultations with South Africa).

Status of Implementation: Completed.Sub-component 3.6: Capacity Building: Specialized Training on Industrial Symbiosis

Status of Implementation: Assignment tendered and under award. Sub-component 3.7: Capacity Building for Waste Council

Status of Implementation: Assignment tendered and under award. Sub-component 3.8: Capacity Building for Ministry Staff, ENCPC staff

Status of Implementation: Training for ENCPC staff completed and capacity development of Ministry staff has been awarded and is on-going. Sub-component 3.9: New Activity: Participation of IWEX start-ups in Africa STI Forum + provision of awards for finalists

Status of Implementation: Completed however awards have not been provided because of legal issues. Sub-component 3.10: Preparation of documentary on IWEXStatus of Implementation: Activity awarded

Component 4: Implementation of Demonstration Projects

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$) 300,000 (up from 185,000)

Sub-component 4.1 Consultation for Establishment Entrepreneurship Hub in 10th of Ramadan

Status of Implementation: The MoTI has allotted the ENCPC land to set up an entrepreneurship hub in 10th of Ramadan. A consultant is under procurement to assist with this task and identify the types of machines to be purchased in support of the incubator. Assignment under award. Sub-component 4.2: Support Entrepreneurship Development through Coaching and mentoring to pre-incubated teams

Status of Implementation: Completed. A total of 44 start-up in waste management were provided with coaching and mentoring, and including 20 formal registered businesses. The graduation ceremony is to be held on February 4, 2018.

Sub-component 4.3: New Activity: Best Practices in Developing Tech Incubators (in replacement of Support to Business Linkages Model with private sector SMEs)

Status of Implementation: Assignment tendered and under award. Sub-component 4.4: Procurement of equipment for incubator and working spaceStatus of Implementation: Under preparation.

Component 5: Project Management

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$) 375,000Sub-component 4.1: Recruitments of staff:

Status of Implementation: Completed; however following resignation of coordinator, a replacement is under consideration. Sub-component 4.2: Purchasing of computers, equipment, and vehicle

Status of Implementation: Mostly completed. Pending equipment is related to energy measurement equipment for ENCPC.

Sub-component 4.3: Conduct independent external audit

Status of Implementation: First and second reports approved by Bank. Third report under preparation for Bank review.

Sub-component 4.4: Project Completion Report Status of Implementation: Assignment tendered and under award.

D. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution

(US$)

(x)

Direct Cost for ISA-Execution (US$)

(y)

Total (US$)

Approved Amount for Direct Project Activities (a):

1,940,000 0 1,940,000

Amount Received from Trustee (b):

1,940,000 0 1,940,000

Actual Amount Disbursed (c): 1,304,058 0 1,304,058

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 0 252,500 252,5002015 0 222,000 222,0002016 0 580,000 580,0002017 56,500 77,362 133,862 2018 94,628 657,010 751,638 Total 1,940,000

F. Disbursements of Funds for Indirect Costs (US$)Disbursed (US$) Available (US$) Total (US$)

60,000 0 60,000

G. Results Framework and Monitoring

Project Development Objective: Develop a sustainable and integrated industrial waste exchange system positioned as a Green Entrepreneurship Hub, linking industrial wastes generators, potential users and recyclers to improve cross-industry resource efficiency, promote the development of new innovative SMEs, create green job opportunities, reduce the environmental impact of industrial waste and improve the lives of Egyptian citizens.

PDO Level Results Indicators* Unit of Measure BaselineCumulative Target Values**

Frequency

Data Source/Methodology

Responsibility for Data Collection

Description (indicator definition etc.)

YR 1 YR 2 YR3 YR 4 2017

YR52018

Indicator One: Establishment of industrial waste exchange system in pilot area that is utilized

Binary No existing system 1 system set up (A)

System utilized (A)

5th year Project completion reports

ENCPC - PMU System is running and is utilized by registered industrial establishments 108 registered users, 84 posts, 38 requests for waste and 11 transactions completed to date.

Indicator Two: Creating a Green Entrepreneurship Training Hub for job creation in the pilot area.

Binary No existing green entrepreneurship environment

1 (F) 5th year Project completion reports

ENCPC PMU A green entrepreneurship is created in the pilot area facilitated by an enabling environment.

INTERMEDIATE RESULTS

Intermediate Result (Component One): Inventory of industrial wastes developed in pilot area

Intermediate Result indicator One: A comprehensive survey for mapping industrial wastes conducted

Binary Inadequate mapping of industrial wastes

0 1 (A) 1 (A) 2 (F) 4th and 5th

yearProject progress report

ENCPC PMU 10th of Ramadan Mapping completed. 6th of October Mapping on-going. Nationwide extrapolation under contracting.

Intermediate Result indicator Two: Integrated inventory of industrial wastes developed in a database

Binary No inventory of industrial wastes

0 1 (A) 1 (A) 2 (F) 4th and 5th

yearProject progress report

ENCPC PMU 1 inventory available. 2nd inventory to be completed following final mapping in 2nd industrial city.

Intermediate Result (Component Two): Policy recommendations towards an enabling environment for industrial waste exchange in EgyptIntermediate Result indicator One: Policy measures for regulating & monitoring the market for industrial waste exchange identified, formulated and adopted.

Qualitative Insufficient policy measures

0 Policy identified and drafted. (A)

Consultatitions

on Policy

measures (A)

Policy measures adopted (A&F)

4th and 5th year

Study and Consultations with stakeholders

ENCPC PMU Several studies conducted: Policy actions for industrial waste exchange system in Egypt; Review of existing regulations and legislation regarding industrial waste management; Best practices for industrial waste exchange. In addition, project provided inputs into the draft law that passed the cabinet review and is under state council review before being transmitted to Parliament for endorsement. The project is also in the process of drafting the Executive Regulations of the Draft Law related to industrial non-hazardous waste.

Intermediate Result (Component Three): capacity building and raising awareness regarding the industrial waste exchange program

Intermediate Result indicator One: No of trainees from stakeholders and support institutions

Number 0 0 70 (A) 230 (A) 230 (F)250 (A)

3rd, 4rd and 5th year

Project reports ENCPC PMU

Intermediate Result indicator Two: No of stakeholders participating in awareness raising activities

Number 0 0 100 (A)

150 (A) 250 (A) 250 (F)632 (A)

Annual Project reports ENCPC PMU Awareness conducted during the 3rd Africa Forum on STI held in Cairo, Feb 2018; 6th of October Business Association; 300 factories approached through door to door mechanism during mapping assignment;

Intermediate Result (Component Four): Implementation of demonstration projects

Intermediate Result indicator One: Establishment of Entrepreneurship Hub

Number 0

1 (F) 4th year Project reports ENCPC PMU

Intermediate Result indicator Two: Number of direct and indirect green jobs created SMEs

Number 0 10 direct & 20 indirect (F)

4th year Project reports ENCPC PMU

Support to Parliament: Building Capacity & Mainstreaming Inclusive Growth & Decentralization

A. Basic Project InformationActivity Name: Support to Parliament: Building Capacity and Mainstreaming Inclusive Growth and Decentralization in Egypt


Name of ISA Project Leader: Mohamed Ahmed Siham

Email of ISA Project Leader: [email protected]

Recipient Entity: African Development Bank Director General -North Africa, Mr. Mohammed El [email protected]


Additional Funds Leveraged and Source(s), if any (US$):

Total Amount Disbursed (Direct and Indirect in US$): 597,122 (direct) and 180,000 (indirect)

Total: USD 777,122

Steering Committee Approval Date: 6/11/2014

Project Implementation Start Date:3/30/2015

Project Closing Date 9/30/2019


Primary Pillar: Enhancing Economic Governance

Secondary Pillar(s): Competitiveness and IntegrationInclusive Development and Job CreationInvesting in Sustainable Growth

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of the project is to enhance the performance of the Egyptian Parliament towards increased efficiency and effectiveness in response to the demand for improved social justice. Rating for progress towards achievement of objective:

Satisfactory


Status of Implementation:The project has made steady progress since beginning of this year. Contract was signed with the Grand Egyptian Museum (EGM) for an amount of USD 101,000. The procurement of security device is also progressing and contract for an amount of USD 265,000 is expected to be awarded soon. This has indeed improved disbursement significantly.

The Training program is progressing slowly but measures are ongoing to equip the training center to undertake part of the training and developing special online training.

C. Implementation Status of Components Component 1: Capacity Building of Parliament’s Permanent Staff, with a focus on staffers involved in Committees:Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,100,000Key Activities/Targets: The main activities under this component are: (i) Training Needs Assessment and Training



Implementation Support; (ii) Delivery of tailor-made training to selected Parliamentary staffers; and (iii) Filed Visits.

Status of Implementation: The project is making steady progress with respect to the implementation of these activities.

Training Needs Assessment: A consultant was recruited in December 2016 for six months till May 2017 to undertake training needs assessment. The scope of consultancy was to draft a report on training needs assessment, provide concept notes on on-shelve training and prepare terms of reference as well as request for proposals to recruit training providers. The consultant submitted the three deliverables as agreed. The four trainings identified by the assessment are: i) English and French Languages; ii) IT and software, management secretariat skills and statistics; iii) communications media and public relations; and iv) Specialized training.

Delivery of tailor-made training: Under the tailor-made training, the Bank signed contract with British Council Egypt and courses started in August 2017 and ended in February 2018. 69 staff were selected for training for 59 days. At the date, 67 have completed the first training while 2 persons didn’t not attend the training for different reasons. The training department requested other training sessions to scale up the language levels of the existent cohort on the technical skills. TORs for the other identified training programs were prepared and recruitment of service providers commenced on June 2018 and the training is expected to start in September 2018. It is expected that 800 staff will be trained by the end of the project.

Field Visits: Five field visits to Bank-financed projects as well as other development partner’s projects are under preparation and will take place between September and December 2018. The field visits intended to include a series of field visits within different governorates in Egypt to ensure that Parliament staffers are adequately exposed to the development challenges in the country. The field visits would provide members with the opportunity to see how their desk-work effectively translates on the ground. Visits are planned to development projects passed by Parliament in a variety of sectors such as energy, microfinance, agricultural rehabilitation, water and sanitation.

Component 2: Institutional DevelopmentThis component will support: (i)Review of status of rare books and preparation of RFP for rare books restoration consultancy, (ii) Restoration of rare books, (iii) IT and office equipment including IT securitization, iv) Information Security training, v) Migration of content management from IBM to Microsoft, vi) Context management training, vii) website upgrade and maintenance.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,223,000Status of Implementation

Review of status of rare books: The consultant has completed the assignment and the recommendations have been presented to Parliament. The study recommended restoration of the following: i) holy land books (6 volumes), collection of description of Egypt books, Collection of 8 various historical books, collection books of Ottoman Empire. It was recommended that a suitable room equipped with chairs and cupboard will be provided to preserve materials and equipment of restoration.

Restoration of rare books: A contract was awarded to the Grand Egyptian Museum (EGM) for an amount of USD 101,000 to undertake rare books restoration assignment. The restoration started on June 28,2018 and is expected to be completed within 8 months. IT upgrade: The procurement process for all types of equipment totaling USD 465,000 has been awarded. All equipment comprising of 100 computers, 4 servers and back up storage were delivered to Parliament in December 2017. Installation of ACs and backup storage and fiber optic cables for a total amount of USD 335,000 have been completed.

Migration of content management from IBM to Microsoft: As the Content Management activities already completed by other sources, the project requested that this activity changed to security devices and IP telephony switches inside the parliament. We are now tendering for this activity which cost around USD 260,000.

Context management training and website upgrade and maintenance: The activities have been completed.

Component 3: Case study: Mainstreaming Social Inclusion and Decentralisation:This component will support: (i) Development and implementation of dedicated training program, (ii) Three study tours for 18 people for each study tour

Previous Rating: Moderately Unsatisfactory

Current Rating: Moderately Satisfactory

Cost (US$): 257,000

Status of ImplementationDevelopment and implementation of dedicated training program: The Parliamentary Training which has been established will lead implementation of the trainings identified by the consultant. Priorities have been set up and workshops were identified, however procurement of the providers has not started yet.

Study Tours: Two study tours to Japan and Russia have been completed in June and October 2017. Twenty-six Parliaments visited the two countries and indicated that the trip was beneficial, however formal reports on the outcomes of the visits are still pending. Preparation for the third trip is undergoing and plan to take place no later than October 2018. A trip will be also organized for the training center staff to visit one of the identified training center.

Component 4: Project Management: The activities under this component include recruitment of implementation support consultant and Purchasing of office equipment

Previous Rating: Moderately Satisfactory

Current Rating: Satisfactory Cost (US$) 160,000

Status of Implementation Recruitments of Project staff: A consultant was recruited to support project implementation for six months renewable. Purchasing of office equipment: This was procured and delivered to Parliament to be used by the Unit responsible for overseeing the project.


(US$)

(x)


(y)

Total (US$)


2,740,000 2,740,000


2,740,000 2,740,000

Actual Amount Disbursed (c):

597,122 597,122

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End

2015 0 0 02016 0 3,878 3,8782017 0 597,122 597,1222018 100,000 200,000 300,0002019 500,000 1,339,000 1,839,000Total 2,740,000


180,000 0 180,000


Project Development Objective: Enhance the performance of the Egyptian Parliament towards increased efficiency and effectiveness in response to the demand for improved social justice.

PDO Level Results Indicators*

Unit of Measure Baseline

Cumulative Target Values** FrequencyData

Source/Methodolo

gy


Description (indicator

definition etc.)Dec

2016 - Dec 2017

A

Jan 2017- Dec 2018

A

Jan 2018 - Sep 2019

A

Sept 2018-Sept 2019

Development Impact: Improved performance of Parliament

Proxy indicator:

Wastefulness of govt spending

Perception of trust in natl govt

Value 2.1, ranked 135/148 in 2013/14

63% yes (2007-2011)

Value 2.2

65%

Value 32.3

70%

Third year

72

Global Competitiveness Report

UNDP Human Devt Report

AfDB project team

AfDB project team

Perception by business community, conducted through the Executive Opinion Survey of the World Economic Forum.% of those responding “yes” to the Gallup World Poll (2012) question: In this country do you have confidence in the national government?

Outcome Indicator One:Performance of Parliament Staffers improved

Qualitative TBD following baseline survey

- - Increase 1st year & last year

Baseline survey conducted upon project

AfDB project team

launch and project closure

Outcome Indicator Two: Social Inclusion and Decentralization concepts mainstreamed

No of social inclusion and/or decentralization related briefs developed and presented

0 in 2013/4 - - 8 Third year Project completion reports & parliament deliberations

AfDB project team

Briefs developed that favor social inclusion and decentralization, presented for discussion in Committees


Intermediate Result (Component One): Capacity Building of Parliament’s Permanent Staff

Intermediate Result indicator One: Dedicated and tailored capacity-building programs established based on skill gaps identified

Qualitative Large gaps in skills exist

Baseline Performance survey conducted

Needs assessment conducted implemented

800 persons trained (40% women)

Annual Project progress report

AfDB project team

Intermediate Result indicator Two: Awareness raised on local development issues

Quantitative & qualitative

Weak linkages with realities on the ground.

- 12 field visits organized

Performance survey conducted

Annual Satisfaction survey conducted & Project progress report

AfDB project team

Intermediate Result (Component Two): Institutional Development

Intermediate Result indicator One: Improved access to

Qualitative All key ‘Rare Books’ restored at

Consultants to review

500 copies of ‘Rare Books’

Annual Project progress

AfDB project team

historical and cultural information on Egypt

the Parliament Library

and restore rare books recruited.

restored report

Intermediate Result indicator Two: Improved coordination and staff performance due to use of IT equipment

Quantitative

Large IT requirements, no website;

Performance survey

Existence of operational IT equipment.

Website operational &

Performance survey conducted

Annual Project progress report & comparison of performance surveys

AfDB project team

Intermediate Result (Component Three): Case Study: Mainstreaming Social Inclusion and Decentralization

Intermediate Result indicator One: Social Inclusion and Decentralization Mainstreaming Program developed and concepts used

Number of trainees; Use of concepts

No program exists

Program developed

- 75 trained; 6 briefs developed

Annual Project reports

AfDB project team

Intermediate Result indicator Two: Awareness on Best Practices from other countries raised through Study tours

Number of tours; qualitative

No program exists

- - 1 study tour to Japan with 13 members of parliament completed in May1 study tour to Russia with 12 members completed

Annual Project reports

AfDB project team

in October

Strengthening Rule of Law: Effective & Transparent Delivery of Justice & Rule-making

A. Basic Project InformationActivity Name: Strengthening the Rule of Law: Effective and transparent delivery of justice and rule-making in EgyptCountry Name: Egypt Name of Implementation Support

Agency(ies): OECD and AfDBName of ISA Project Leader: OECD: Nicolas Pinaud/ Miriam AllamAfDB: Carina Sugden/Prajesh Bhakta

Email of ISA Project Leader: OECD: [email protected] /[email protected] AfDB: [email protected]; [email protected]

Recipient Entity:

Judge Ahmed Abouzeid, Vice President Supreme Court of Egypt, President of the International Relations Department, Court of Cassation

Magued Sobhy, Judge, Member of Legislation Dept. Ministry of Justice

Name and Email of Recipient Entity Contact:

[email protected] ; [email protected]

[email protected]


Additional Funds Leveraged and Source(s), if any (US$): Country co-financing: 2,000,000 and in-kind contributionsOther co-financing: 320,000

Total Amount Disbursed (Direct and Indirect in US$): AfDB: USD 147,492 (direct) and USD 114,000 (indirect)OECD: 1,204,547 USD (direct) and 101,000 (indirect)

Steering Committee Approval Date: 6/11/2014


Project Closing Date (proposed):2/28/2020


Primary Pillar (select only one):

Investing in Sustainable Growth

Secondary Pillar(s) (select as many as applicable):

Enhancing Economic GovernanceChoose an item.Choose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The Project aims at contributing to consolidating the rule of law and supporting an enabling business environment through: (i) enhancing efficiency



mailto:[email protected]%20%20

and effectiveness in the delivery of justice, and (ii) strengthening transparency and effectiveness in the rule-making process.

The first objective addresses the need to improve the delivery of justice, by strengthening rule of law - which is addressed at the level of the Court of Cassation. The Project will aim to design and implement an automated case management system for the Court of Cassation, build capacity of Court of Cassation staff to use new systems, and reduce case delays and improve the provision of judicial services to the public. The second objective is linked to the broader agenda of the Government on ensuring greater effectiveness of the rule-making process. The Project will work with the MoJ to build capacities in legislative drafting and strengthen mechanisms for better regulation.


Moderately Satisfactory

Rating for overall implementation progress:


Brief Summary of Project Implementation Status: The overall implementation of the activities of the project continues to be moderately satisfactory as noticeable progress has been made since its launch. As mentioned in the previous report, this is especially remarkable given that the project was affected by several government reshufflings, including the Ministry of Justice and the appointment of a new President of the Court of Cassation (CoC) in July 2017. The new appointment process of the President of the Court of Cassation for 2 years instead of 1 year and of Judge Ahmed Abu Zeid as new Director of International Cooperation of the Court might also have an impact on the implementation of component 1. The Head of the General Legislation Department is fully committed to the project and the previously-agreed implementation plan. The continuous commitment, consistent communication, regular coordination and credible engagement from Ministry of Justice and Court of Cassation have ensured a steady progress. Component 1 (Gov. Executed) in support of the Court of Cassation is slowly progressing. A coordination mission was organised by AfDB and joined by OECD in February 2018 in Cairo, during which meetings were held with the Court of Cassation, the Ministry of Justice and the Ministry of Investment and International Cooperation. Based on discussions, an action plan was prepared in order to fully align project activities with the Court’s new priorities in terms of implementation of the integrated court management system. The action plan is part of the aide memoire signed by the project partners in February 2018. As mentioned in the previous report, an initial training plan has been approved and will start to be implemented in the coming months, this include basic languages and IT trainings of 360 staff.

Component 2 with the Ministry of Justice is delivering with good results. The main one being the development of an Egyptian Legislative Drafting manual and the preparation of its implementation by key national legislation and regulation stakeholders. Remaining sub-components are expected to be completed by August 2018. Progress was achieved thanks to solid coordination between the Ministry of Justice, Ministry of International Cooperation, Court of Cassation, OECD and AfDB, and other donors on the ground. The OECD and AfDB closely coordinated with other Deauville Partnership countries and organisations, involved in Justice Sector, in particular the EU project “Support for the

Administration of Justice (SMAJ).” The donor coordination meetings in the Rule of Law sector, in addition to OECD and AfDB’s regular meetings with donors, are excellent examples of developing a concerted approach of managing the implementation process without duplication or overlap between activities.

In June 2018, a request for a second extension of the project’s closing date from 31 August 2018 to 31st August 2019 was submitted to the Transition Fund, bringing total extension of the project to 2 years. Both partners will closely monitor project implementation to introduce further adjustments as needed.

Actions to be Taken Responsible Party

Expected Date of Delivery

ToR will be submitted in the preparation of new elements as part of the Court modernisation process (e.g. assessment of the Court’s hotline)

Court of Cassation

Q3 2018

Expert panel to validate the OECD report on the Reform Action Plan of the Court of Cassation

OECD Q4 2018

High-level conference on Reform Action Plan of the Court of Cassation

AfDB, OECD and Court of Cassation

Q4 2018

C. Implementation Status of Components Component 1: Supporting the efficient and effective delivery of justice by the Court of cassation

This component focuses on implementing key IT reforms, building capacities and establishing systems for an automated case management system in the court of cassation, with the view to significantly reduce the processing time spent on each case, reduce the current backlog of cases and enable a more efficient research and open access to court files and judgments



Cost (US$): 2,397,000

Sub-component 1.1: Preparing and Implementing a Reform Action Plan of the Court of Cassation (OECD-executed)

Status of Implementation: The capacity building activities of this component have been completed in May 2016 (see previous progress reports for details on the learning outcomes). Given the changes within the Court of Cassation in July 2017, the remaining activity has been confirmed in the project’s action plan and will consist of an action plan and high-level conference, which are scheduled to be delivered in the fourth quarter of 2018. Following a technical meeting with the Court of Cassation on 18 July in Cairo, it was decided that an international expert panel will be organised in order to validate the OECD report prepared around the Reform Action Plan of the Court of Cassation.

Sub-component 1.2: Technical assistance to design an integrated modern automated court management system (Government-executed)

Status of Implementation: Progress continues to be slow, meanwhile the joint supervision mission with OECD in February 2018 confirmed the pertinence of developing a new integrated court management system for the CoC, including developing the e-platform for digitization and archiving of court cases, as well as development of user friendly data platform that will facilitate data access, usage and analysis.

The CoC has received support from the Ministry of ICT, the Library of Alexandria and IT specialists to develop the terms of reference and the RfP to enable the launching of the procurement of a firm to support this process. Meanwhile, unless the project is extended, this activity cannot proceed, as implementation is expected to take 10-12 months. Sub-component 1.3: Implementation of the integrated court management system (Government-executed)

Status of Implementation: This sub-component has been restructured to optimize the use of existing systems and prioritize actions that will ensure greater efficiency and access to services. Activities include1.3.1 Internet Connectivity (AfDB): Wireless internet connectivity for the entire CoC has been fully supplied and has been functioning well since 17th August 2016. Internet access has enabled full use of the current IT systems and contributed to greater efficiency of the functioning of the court. 1.3.2 Securing and optimizing the existing automation system of CoC to reduce the backlog of cases (AfDB): The project has procured essential IT equipment to better secure and strengthen the functionality of the current systems. This has included Laptops, work stations, scanners, photocopiers and air conditioners for the data security room. This was fully delivered and installed in 2017. To further safeguard the system procurement is underway for UPS to be delivered by July 2018. 1.3.3 Improving public access to CoC services (AfDB). As part of modernizing the court, there are plans to greatly improve the speed and quality of services and information provided to citizens. The CoC has plans to re-vamp its website to ensure it is user friendly and information easily accessible. Furthermore it plans to enhance customer services at the Court of Cassation by establishing one point of entry for the public, a dedicated counter at the Court of cassation and electronic customer services system. Procurement is currently underway for an IT-web designer to support re-vamping the website. The ToRs for an electronic services counter are being developed- however this final activity cannot be launched unless the project is extended.Sub-component 1.4: Capacity building and training of users for the new systemStatus of Implementation:A training plan has been agreed with Court of Cassation to provide basic level training in the area of IT and language, which is considered as essential base to facilitate greater use of IT in court management. The contract for the delivery of the first trainings will be awarded in early 2018.

IT and languages training courses are being delivered to a total of 360 staff, and this training is expected to be completed by September. As trainings are becoming increasingly routine for CoC employees, it has been deemed necessary to establish training facilities at the CoC. Procurement process is currently underway for equipment for the training room. This will enable larger numbers to benefit from trainings and also be critical for delivery of in-house trainings. Sub-component 1.5: Dissemination to stakeholders, dialogue with private and NGO sector (OECD-executed)

Status of Implementation: The project objectives were disseminated to major stakeholders and donors during the several high-level conferences and donor coordination meetings that have taken place since the start of the project (see previous progress reports). A communication strategy has been jointly prepared and discussed at several occasions. The remaining deliverable of this sub-component will be the high-level conference which is scheduled to be delivered in the fourth quarter of 2018

Component 2: Transparent and effective rule-making. This component will focus on implementing new processes and applying international good practices for transparent and effective rule-making in the Ministry of Justice. Thus the component includes piloting of the new procedures and techniques to draft priority legislation in line with the new constitution. The component thus focuses on the processes, tools and skills to draft good legislation.

Previous Rating: Satisfactory

Current Rating: Satisfactory

Cost (US$): 1,151,000

Sub-component 2.1: Implementation plan for participatory and transparent rule-making (OECD-executed)Status of Implementation: The sub-component was completed in Autumn 2015.

Sub-component 2.2: Capacity building to improve transparent rule-making (OECD-executed)

Status of Implementation: The capacity building activities of this sub-component were completed with the delivery of a seminar on 3-4 May 2017. The seminar presented the draft of the legislative drafting manual, including guidelines for consultation and regulatory impact assessments, with discussions on specific sections of the draft with international experts. Based on the discussions, the Ministry of Justice revised the Manual and submitted a new version on 30 August 2017.A final draft was presented in June 2018 by the Ministry of Justice.

The manual was officially presented in Cairo on 16 July 2018 during a high-level conference. The objective of this high-level meeting was to discuss the manual by drawing on expertise and good practices of OECD countries. The meeting also introduced the Egyptian legal professionals, parliamentarians and civil servants working on drafting and reviewing legislation to the use of the Manual as a new, reliable tool for the public administration and better regulation.This was also the opportunity to present an OECD publication on “Legislation and good governance: The role of legislative drafting manuals”, which presents the necessity to enhance better legislation policies based on OECD and MENA countries good practices, while exploring the challenges of legislative drafting in Egypt.

On 17 June 2018, a workshop on the implementation of the Egyptian Legislative Drafting manual was organised in Cairo. This capacity-building activity was the opportunity to discuss how to efficiently implement the Egyptian manual, also taking as a basis the OECD report prepared in this framework.

Sub-component 2.3: Implementing processes and tools for effective and

transparent rule-making (OECD-executed)

Status of Implementation: This sub-component was completed with the organisation on 27 June 2018 of a workshop with the Egyptian Ministry of Justice on the implementation of the legislative drafting manual. The objective of the workshop was to discuss the institutional coordination between Egyptian key stakeholders. The workshop also looked at mechanisms to apply the Manual through a pilot exercise based on similar experiences in OECD and MENA countries.

Sub-component 2.4: Provide implementation support to draft new legislation (OECD-executed)

Status of Implementation: This sub-component was completed by the organisation of two workshops in Cairo. The first workshop was held on 26 June 2018 and gathered key legislative drafting stakeholders from Ministry of Trade and Industry (ERRADA), Ministry of Parliamentary and Legislative Affairs, Ministry of International Cooperation and Ministry of Planning. This strategic discussion was the opportunity to present the Manual to technical representatives from these institutions, which will be using this tool. The workshop also allowed discussing good practices and lessons learned from OECD legislative drafting manuals, with the participation of legislative drafting experts from OECD member countries.

Sub-component 2.5: Database of legislation and best practices in legislative drafting (Government-executed)

Status of Implementation: The ToRs for the assignment of developing and e-tool in support of the legislative manual developed with support of OECD are being finalized and the procurement is planned to be completed by Q2 2018 as all the data for the application has been collected.

Component 3: Project management, coordination and monitoringThis component will entail support to ensuring all project activities and tasks are executed, coordination among all actors involved in project implementation, fulfilling and monitoring procurement and fiduciary requirements and audits, and monitoring and evaluation of project outcomes and intermediary results. (Government-executed) Under this component the project has recruited a procurement assistant.



Cost (US$): 222,000

Status of Implementation: In April 2016 the Bank and the Ministry of International Cooperation formalized new implementation arrangements through the signing of a letter of agreement. As has been reported previously, neither CoC or MoJ had the capacity to manage implementation of the project, therefore new arrangements have been agreed and finalized, which will now allow for smoother implementation of the Gov component. The Court of Cassation appointed a new Head of International Relations in October 2017, who is the new project coordinator for this component. He was part of the team that initially developed the reform plan for CoC. This has been positive for the project, as his dynamism has ensured increased momentum on implementation. An action plan for the remaining activities was prepared by his team during the last supervision mission in February 2018 (annexed).

D. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution (US$)

(x)

Direct Cost for ISA-Execution (US$)(y)

Total (US$)


AfDB: 2,406,000 OECD: 1,500,000 USD 3,906,000


AfDB: 2,406,000 OECD: 1,129,598 USD 3,535,598

Actual Amount Disbursed (c): AfDB: US 147,492 OECD: 1,204,547 USD 1,352,039

e. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2018 AfDB: 147,492 AfDB: 800,000

OECD: 250,000 USD

AfDB: 947,492OECD: 250,000 USD

2019 AfDB: 658,508OECD: 45,453 USD

AfDB: 800,000 AfDB: 1,458,508OECD: 45,453 USD

f. Disbursements of Funds for Indirect Costs (US$)Disbursed (US$) Available (US$) Total (US$)OECD: 100,863 USDAfDB: 114,000

OECD: 137 USDAfDB: 0

OECD: 101,000 USDAfDB: 114,000

*1 While the budgeted amount of indirect costs was USD 101,000, the actual amount incurred was USD 100,863 [as per OECD Financial Regulations on VC administrative cost recovery, BC(2011)40].

g. Results Framework and MonitoringProject Development Objective (PDO): The proposed project development objective is to strengthen the application of rule of law and an enabling business environment through enhancing effective and transparent delivery of justice and inclusion in the rule-making process.

PDO Level Results Indicators*Unit of Measure

Baseline

Cumulative Target Values**

FrequencyData Source/Methodology


Description (indicator definition etc.)Sep 2014 –

Sep 2015A

Oct 2015 - Sep 2016A

Oct 2016 - Dec 2017A

Jan – June 2018 (A)

Indicator 1: Automation of the Court of Cassation

Quantitative

Not automated

n/a System partially in place (broad band internet)

System in place

System partly in place

once Project progress reports

Project Implementation Team (PIT). CC

System designed, equipment and IT installed

Indicator2: System designed that allows for effective and consistent stakeholder engagement and input into law drafting

Quantitative

n/a System being developed

System in place

Manual produced in Arabic and disseminated to stakeholders in July

annually Project Progress Reports, Website verification

PIT, MoJ Stakeholder consultation process in rule making elaborated

Indicator 3: Legislation drafted according to International good practices

Quantitative

none n/a 1 Four Four Second and third year annually Project progress reports

PIT, MoJ Number of hits on the platform

Indicator4 : Capacity Built: Number of Staff trained in IT

system use Number of MoJ Staff trained in

drafting legislation Number of peer review

exchange programmes Number of modules and toolkits

developed

Quantitative

none n/a 206 study visits3 seminars10 Toolkits

1

20 on legislative drafting.3 peer programmes

1

100 on IT system use

30 trained in drafting legislation

3 peer programmes

1 Legislative Drafting Manual

Annually Project Monitoring Unit

PIT Total number of beneficiaries benefitting from capacity building for all components of the project combined


Component 1: Supporting the efficient and effective delivery of justice by the Court of Cassation

Indicator 1: Automated court management system designed

Quantitative

Not automated

System designed

n/a n/a Once Project progress report

PIT, CC Design of automated court management system

Indicator 2: Work flow of the Court of Cassation automated

Qualitative Rudimentary case recording system not linked

n/a n/a Design initiated

once Project progress report

PIT, CC Business processes automated and linked

Indicator 3: Archiving system for the Court of Cassation developed

Quantitative

Paper archive

n/a n/a n/a once Project progress report

PIT, CC Electronic archive for CC in place

Indicator 4: Dynamic and Interactive Website for the CC

Qualitative Website not dynamic or interactive

n/a Website being developmed

Judgments by CoC available on line

Annually Project Implementation Reports

PIT, CC Type and volume of information accessible on website, number of hits

Indicator 5: Legislation for automation enacted

Quantitative

Draft legislation to be reviewed

n/a no n/a once Legislative reports, Project progress reports

PIT, MoJ Legislation to allow electronic signatures and authentication of electronic documents

Component 2: Support Transparent Rule-Making in the Ministry of Justice

Indicator1: Guidelines and Toolkits developed

Quantitative

None 6 11 11 once Project Progress Reports

PIT Number of tool kits developed

Indicator 2: Staff trained on participatory rule making and impact assessment

Quantitative

Capacity not good

12 26 26 Annually Project Implementation Reports

PIT Number of staff trained in legislative techniques /Number of trainings held

Indicator 3:Pilot legislation drafted/reviewed according to international best practices

Quantitative

n/a No Yes Annually Project Progress Reports

PIT, MoJ Legislation drafted

Indicator 4: User-friendly e-consultation platform established

Quantitative/Qualitative

none n/a No No Yes Second and third year annually Website verification, project progress reports

PIT, MoJ Number of users on the platform

Indicator 5: Workshops Quantitativ None Yes yes Yes Annually Project PIT, OECD Number of staff

e Progress Reports

assignment and workshops

Egyptian Central Bank Clearing & Settlement Depositary System for Government Securities

A. Basic Project InformationActivity Name: Egyptian Central Bank Clearing & Settlement Depositary System (CSD) for Government Securities

Country Name: Egypt Name of Implementation Support Agency(ies): European Bank for Reconstruction and Development (EBRD)

Name of ISA Project Leader: Hannes Takacs/Hugh Friel

Email of ISA Project Leader: [email protected]; [email protected]

Recipient Entity:

Central Bank of Egypt

Name and Email of Recipient Entity Contact:Salwa Ayoub, Assistant Sub-GovernorE-mail: [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 3,220,000

1,220,000 from AfDB1,000,000 from EBRD’s SEMED Multi-Donor Account1,000,000 from CBE

Total Amount Disbursed (Direct and Indirect in US$):

1,810,889


6/11/2014

Project Implementation Start Date:

7/1/2014


12/31/2018



Secondary Pillar(s): Investing in Sustainable GrowthInclusive Development and Job CreationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project has three key strategic objectives which are: i) to reduce substantially the accumulation of potential systemic risks related to payment systems and settlement; ii) to enable the introduction and pricing of new instruments; iii) to allow for better pricing of government securities and creation of a benchmark yield curve which will facilitate the growth of the corporate bond market.



Rating for overall implementation progress1: Moderately Satisfactory


The project has been progressing moderately satisfactory and reaching its final implementation stages with most activities completed or underway. The development objective remains achievable and relevant. CBE is fully committed to the project and has been supportive in maintaining the progress momentum. The EBRD team organized numerous on-site visits, meetings and conference calls to coordinate project implementation and is in permanent contact with CBE and the contracted consultants to monitor progress.

1 It has to be noted that the project is on track regarding implementation of the core CSD system and the collateral management system which are planned to go operational at the end of February/beginning of March. User acceptance testing is currently underway. Yield curve is already calculated by CBE based on the developed model. Adaption of legal framework is still pending but fast track via the Financial Stability Board driven by CBE is underway.

During the reporting period several activities were completed or progressing but project delays there experienced in regard to the system implementation. In February 2018, EBRD received a request for budget re-allocation and the extension of the project closing date to 31st December 2018, from the Central Bank of Egypt (CBE). The project extension was submitted to MENA TF in February 2018 and approved on a no objection basis in March 2018. Reasons for the project extension were: (A) The legal reform required to enable trading of the financial product through an electronic trading platform and settlement by CBE was taking longer than anticipated. This is mainly due to the required involvement of multiple stakeholders in preparation for passing the relevant amendments to the law, which was prepared in frame of the project. There are several structural economic reforms taking place in Egypt and thus a reasonable target to have the law passed will only be possible by end of 2018 and additional assistance by the project will be required to support the process. (B) The CSD IT systems implementation by SIA Perago was on-time until end of December 2017 but during the user acceptance testing phase CBE identified required system adaptions to allow a successful start of the new CSD system. This led to a delay in the system implementation. The tested CSD system includes the core CSD system, the collateral management and the auction system as well as interfaces. To ensure system robustness and full market readiness the CBE anticipates a go live date at the end of November 2018, starting with Treasury Bills and followed by Government Bonds. Additionally, as a consequence of the project extension, a reallocation of USD 300,000 was approved by MENA TF to accommodate the new proposed closing date of 31 December 2018, with adequate technical support through extension of the consultancy services (Component 1, Scoping and Implementation Support TA) and to contract a specialized company for carrying out additional system testing.

The co-operation between CBE and EBRD works very well and a dedicated CBE team is working on the project. As of 30 June 2018 the project progressed moderately satisfactory and reached its final implementation stages with most activities completed or in implementation. The Yield Curve Modelling (Sub-component 2.4), the legal & regulatory framework reform part (Component 5) and Phase 1 and 2 of the Scoping and Implementation Support TA (Component 1) were successfully delivered, and the delivery of Component 1 Phase 3 is on-going according to plan. Additionally, the implementation for the Primary Market & Repo Auction system (Sub-component 2.1 and 2.3) and the Secondary Market CSD & Collateral Management system (Sub-component 2.2), and Interfaces with other systems (Component 3) and Data Warehouse & information Dissemination (Component 4), is in its last stages and approaching its going-live at the end of November 2018, significantly later than its expected schedule based on the reasons mentioned above. Only one system procurement is still pending, namely the Electronic Trading Platform (Sub-component 2.5), where some decisions by CBE and key stakeholders are expected in due course as agreed with CBE.

Current status: Yield Curve modelling component: finalized Project scoping and implementation support: on-track (Consultant hired, Phases 1 and 2 finalized; Phase

3 ongoing) Legal consultant: finalized (Component 5) CBE legal support (in addition to Component 5): on-track. A law firm was contracted by CBE and the

project is under implementation. The contract is funded by AfDB and followed AfDB procurement rules. Core systems contracted and implementation started in December 2016. The first release of the CSD

system and the Auction module were delivered in December 2017 followed by various releases based in initial testing. Currently, user acceptance testing takes place of a new release but adaptions of the systems are required. Overall, the system implementation is delayed and MENA TF has approved the extension of the project to 31st December 2018. The new indicative launch date for the CBE CSD system is end of November 2018.

Data Warehouse sub-component: procurement was finalized in H1/2017 and CBE signed the contract with the supplier in November 2017. The project kick-off workshop took place in Cairo in December

2017 and the system is currently under implementation. Electronic Trading Platform: CBE confirmed that instead of using Bloomberg as electronic trading

platform (ETP) as initially planned, it achieved an initial agreement with the Egyptian Exchange (EGX) to act as ETP for Government securities. The decision was supported by the Ministry of Finance. EGX received from CBE the terms of reference for the system development and is currently in the process of system programming.

AfDB Grant: Project Management Office sub-component for CBE (AfDB funded): remaining grant amount (estimated USD 891,600) restructured by AfDB and closing date extended to 30 September 2019 based on a request from the Ministry of Investment and International Cooperation submitted to AfDB on 11 December 2017. The request was approved by AfDB on 19 December 2017.

The majority of funds will be disbursed as soon as the IT system user acceptance testing was successful and all the systems are implemented to the satisfaction of CBE. Based on the competitive tender process the project team was able to stay below the planned budget, but contingencies may be utilized at a later stage.

As far as disbursements are concerned, as explained to the Steering Committee on previous occasions, major disbursements under the project were only expected after successful launch of the CSD, collateral management and auction system. This is mainly due to the budget being linked to implementation milestones of core system components which are planned to be delivered at the later stages of project implementation.

Add specific actions, as appropriate, that need to be taken over the next six-months to advance project implementation. This is a mandatory field to report on for red-flagged and watch-listed projects



Click here to enter a date.Click here to enter a date.Click here to enter a date.

E. Implementation Status of Components Component 1: Scoping phase and Implementation SupportGiven the complexities involved in developing the various streams related to a functioning Clearing, Settlement and Depository (CSD) system at the CBE, a suitably qualified Consulting Company was tasked with scoping and implementation support for this CSD project. The scoping consultant prepared tender documents for the selected project components within the reporting period which were approved by CBE. Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 799,985

[Phase 1-2: USD 600,000 & Phase 3: USD 199.985]

Status of Implementation: Phase 1 of the scoping and implementation support component was finalised in June 2016 and Phase 2 implementation support is March 2018. Phase 3 was added as an additional contract based on the request received form CBE for additional support in frame of the project extension to December 2018. Full set of tender documents for the core system procurement and the data warehouse system were developed and approved by CBE. On-going support to CBE is provided by the selected consulting company according to the TOR and as planned.

Component 2: Core System Components



Cost (US$): 2.150.000 (previously USD 2.230,000 minus

USD 20,000 re-allocated to Component 4 – Data Warehouse and USD 60.000 re-allocated to Component 1)

Sub-component 2.1: Primary Market (Auctioning System)Status of Implementation: Contract awarded to SIA SpA and project kick started in December 2016. Project implementation is delayed and go live planned for end of November 2018.Sub-component 2.2: Secondary Market (CSD & Collateral Management System)Status of Implementation: Contract awarded to SIA SpA and project kick started in December 2016. The first release of the CSD system and the Auction module were delivered in December 2017 followed by various releases based in initial testing. Currently, user acceptance testing takes place of a new release but adaptions of the systems are required. Overall, the system implementation is delayed and MENA TF has approved the extension of the project to 31st December 2018. The new indicative launch date for the CBE CSD system is end of November 2018. Sub-component 2.3: Repo AuctionStatus of Implementation: Contract awarded to SIA SpA and project kick started in December 2016. Project implementation is delayed and go live planned for end of November 2018.Sub-component 2.4: Yield Curve Pricing ModelStatus of Implementation: FinalizedSub-component 2.5: Trading PlatformStatus of Implementation: Recommended market set-up information prepared by Consultant. CBE confirmed that instead of using Bloomberg as electronic trading platform (ETP) as initially planned, it achieved an initial agreement with the Egyptian Exchange (EGX) to act as ETP for Government securities. The decision was supported by the Ministry of Finance. EGX received from CBE the terms of reference for the system development and is currently in the process of system programming.Sub-component 2.6: 2.6.1 Project Management Support for CBE and 2.6.2 Legal Support (added in H1/2017, AfDB funded and procured under AfDB rules )Status of Implementation: restructuring and extension of AfDB grant agreement requested by MIIC. Grant extension until 30 September 2019 approved by AfDB on 19 December 2018.2.6.1 Instead of the initially planned Project Management Support the MIIC requested a restructuring of the grant agreement to cover following activities: Capacity building for CBE CSD staff (USD 220,000), Banks Training & Awareness (USD 20,000), Establishment of Computer Security Incident Response team “CSIRT” that serves critical IT infrastructure (USD 500,000), Restructured components to be implemented under AfDB procurement rules and guidance from 01/2018 until 09/2019.2.6.2 Legal Support: Thebes Consult contracted and implementation finalized. Assignment is AfDB funded with USD 89,000.

Component 3: Interface with other Systems

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 190,000 (previously USD 430.000 minus USD 140.000 re-allocated to Component 1 and USD 100.000 re-allocated to Component 7)

Sub-component 3.1: Interface with MCDR & EGXStatus of Implementation: included in CSD system deliverySub-component 3.2: Clear Stream and Euroclear InterfaceStatus of Implementation: n/a as depending on selected component 2 systemsSub-component 3.3: Bond Dealer InterfaceStatus of Implementation: included in CSD system delivery

Component 4: Data Warehouses & Information Dissemination Platform

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 120,000 (initially planned USD 100,000 plus USD 20,000 re-allocated from component 2)

Status of Implementation: Procurement finalized. CBE signed contract with the supplier Intix in November 2017. Project kick-off meeting took place in Cairo in December 2017; Some of the data feeds are depending on the CSD system. Project implementation ongoing.

Sub-components 2.1, 2.2 and 2.3 and Component 3 were contracted and are currently under implementation. Following the competitive bidding process of the core systems, the overall cost for sub-components 2.1, 2.2 and 2.3 is contracted for a total of USD 1,185,600 (versus an allocated budget of USD 2,405,000). In H2/2017, the procurement of the Data Warehouse & Information Dissemination (Component 4) was finalized. The initial contract price as per the winning bid is USD 120,000 which is higher that the originally budgeted amount of USD 100,000. As such, we requested from MENA TF a re-allocation of USD 20,000 to Component 4 from the savings achieved through the bidding of the Core System components (Component 2.1, 2.2 and 2.3). Based on the no objection received from the MENA TF on 4 October 2017 a total of USD 20,000 was re-allocated from the Sub-components 2.1, 2.2 and 2.3 to Component 4 Data Warehouse.

Component 5: Legal & Regulatory Framework Reform

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 50,000Status of Implementation: Procurement process finished and the contract was awarded to Thebes Consultancy in December 2015. Work already commenced in December 2015. The assignment was successfully finalized in October 2016.

Follow-up actions are covered in 2.6.2

Component 6: Hardware

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 1,000,000 (CBE)Status of Implementation: hardware will be in-kind contribution from Central Bank of Egypt. Progress as planned.

Component 7: Core System Components Testing (NEW)

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 100,000Status of Implementation: New component introduced as approved by MENA TF in March 2018

F. Disbursements of Transition Fund Funds for Direct Project Activities Country-Execution

(US$)

(x)


(y)

Total (US$)


3,510,000 0 3,510,000


3,510,000 0 3,510,000

Actual Amount Disbursed (c): 1,550,422 0 1,550,422

G. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End

2014 - 0 02015 15,000 4,992 19,9922016 379,809 157,423 537,2322017 171,052 59,966 231,0182018 642.248 Up-to 2.079.5102 Up-to 2.721.7582

H. Disbursements of Funds for Indirect Costs (US$)Disbursed (US$) Available (US$) Total (US$)

260,467 81,443

341,900

2 Note: Maximum amount may be only be needed if additional procurement may be required for the trading platform, system change requests and/or the Euroclear/Clearstream interfaces. Based on the fact that significant savings were achieved in the procurement of the Component 2 and 3 systems a lower amount of disbursement is anticipated for H2/2018 compared to the one provided in the table.

A. Results Framework and Monitoring

Project Development Objective (PDO): The project has three key strategic objectives which are: i) to reduce substantially the accumulation of potential systemic risks related to payment systems and settlement; ii) to enable the introduction and pricing of new instruments; iii) to allow for better pricing of government securities and creation of a benchmark yield curve which will facilitate the growth of the corporate bond market.

PDO Level Results Indicators*Unit of

MeasureBaseline


Frequency

Data Source/

Methodology


Description (indicator definition etc.)Jul 2014 –

Jun 2016A

Jul 2016 – Mar 2018

A

Mar 2018 – Mar 2019

F

Mar 2019 –Mar 2020

FIndicator One: Transaction efficiency increase (volume of trading)3

% Project Start

- - +5% +20%Semi-

Annual


Implementation Manager

Percentage increase in trading volume of government treasuries compared to pre-project levels.

Indicator Two: Settlement efficiency increase (% of trades settled automatically) 4

% ProjectStart - - 50% 100%

Semi-Annual



Percentage of trades settled automatically

Indicator Three: Uniform access to market by participants (minimum number of bond dealers with direct access) 5

No. ProjectStart

- - 3 6Semi-

Annual



Number of players other than banks, granted direct access to the system compared to pre-project

Indicator Four: Secondary market trading of treasury bonds 6

% Project Start

- - +5% +20%Semi-

Annual



Percentage increase in trading of treasury bonds in the secondary market

Indicator Five: Transparency and Dissemination (publish yield curve and website with debt trading statistics) 7

Project Start - - Weekly Daily

Semi-Annual



Frequency of Publication


Intermediate Result indicator One: Auction system operational

Auction system procured and contract signed with vendor.Start of system implementation

Automated Primary Market Auction System fully implemented in Q1/2018



3 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components4 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components5 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components6 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components7 Systems will not be in place before Q1-2018, so impact can only be assessed after the implementation of the fully electronic system components

Intermediate Result indicator Two: Core CSD System operational

CSD system procured and contract signed with vendor.

Automated Secondary Market Clearing and Collateral Management System fully implemented in Q1/2018



Intermediate Result indicator Three:Yield curve calculation implemented and calculated by CBE

Yield curve methodology analysis for Egyptian market completed

Start of system implementation

Yield curve generated and published



Intermediate Result indicator Four: Trading platform operational

Yield Curve generated by CBE , not published

Trading platform for government securities operational in 2018



Intermediate Result Indicator Five: Interface with Clearstream and/or Euroclear in place

Trading platform analysis for optimal design completed

Local market linkages operational in 2018



Intermediate Result Indicator Six: Datawarehouse operational

Procurement of data warehouse system

Data warehouse operational in Q1/2018



Intermediate Result Indicator Seven:Legal draft submitted for approval

Draft of legal changes finalized and submitted

Legal and regulatory changes are approved by parliament Legal and regulatory requirements are consistent across all modules



MSME Support Programme in Egypt and the Social Fund for Development

A. Basic Project Information

Activity Name: MSME Support Programme in Egypt and the Social Fund for Development

Country Name: EgyptName of Implementation Support Agency(ies):

European Bank for Reconstruction and Development (EBRD)

Name of ISA Project Leader:Reem El Saady

Email of ISA Project Leader:[email protected]

Recipient Entity: Social Fund for Development of Egypt

Name and Email of Recipient Entity Contact: Aya [email protected]

Total Amount Approved by the Transition Fund (US$):2,936,080

Additional Funds Leveraged and Source(s), if any (US$):EUR 625,000 (equivalent of US$ 812,500) from EBRD’s SEMED Multi-Donor Account



2/20/2013


4/1/2013


7/30/2019



Secondary Pillar(s):Inclusive Development and Job Creation

B. Summary of Project Implementation Progress and Key Issues

Project Development Objective: The Project’s objective is to strengthen the capacity of the SFD to support the MSME sector in Egypt with a particular focus on promoting women entrepreneurship.


Satisfactory



Although the evolving political landscape in Egypt has not been without an impact on the project, steady implementation progress has continued to be achieved thanks to the project team’s dedication. While some milestones have been delayed, the project is expected to deliver on the majority of objectives.

The majority of consultants to be retained under Component 1 have been engaged and a number of key deliverables have been successfully delivered (see below for further detail). Component 2 is on track and progressing well, having reached more than 195% of the expected number of recipients of Phase I which was completed at the end of April 2017. Subsequently, Phase II was launched in May 2017 building on the experience and lessons learnt from the activities undertaken to date. The success of the current phase will depend on the ability of the SFD to dedicate sufficient staff and resources to continue implementation of SFD’s new modus operandi of facilitating advice as opposed to directly delivering it. Under Phase II, it is envisaged to deliver up to 65 advisory projects, mentoring, consultancy trainings, capacity building activities for SFD non-financial services staff and visibility and networking events. Finally, with regards to Component 3, the envisioning


and planning phases are largely completed, and the development and implementation phases are in their early stages.

In February 2017, an extension of the project closing date from 1 April 2018 to 30 July 2019 was approved by the Steering Committee. This will allow project activities, in particular advisory services under Component 2, to be fully implemented and evaluated before the programme closes in the second half of 2019.

C. Implementation Status of Components

Component 1: “Legal and regulatory reform to strengthen SFD advocacy and policy formulation capacity to support the MSME sector” (SFD-executed): The Component’s objective is to provide SFD with technical assistance and advice to allow it to fulfil a policy and advocacy role in the MSME sector in Egypt.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 919,000

Sub-component 1.1: Developing a national strategy for enhancing the legal and regulatory environment of MSMEs and promoting an advocacy and policy function within the SFD

Status of Implementation: EBRD attended a meeting with the consultant hired to finalise the Policy Paper and MSMEDA officials in February 2018 to discuss the recommendations from the Policy Paper on the National Strategy. In the next phase of the project, EBRD would use the remaining funds to action the recommendations developed in the Policy Paper on the National Strategy. These recommendations centre around establishing a regulatory-impact-assessment unit to act as a regulatory watch tower over all public regulations that may affect MSME activities. This fulfils MSMEDA’s new role as a regulatory coordinator for MSMEA activities.

The International Consultant also submitted his report on policy and advocacy roles of MSME Agencies in April 2018. The Report provides that the ideal roles of MSME agencies ties them to a specific part of the policy cycle. Elected politicians would focus on political issues (agenda setting, policy formulation and adoption), while civil servants would concentrate on administrative issues (policy implementation and evaluation). The policy role of an administrative entity like MSMEDA is therefore most often seen as that of a policy implementer operating “at arm’s length” of its political principal and with managerial autonomy in the implementation process.

EBRD has submitted its draft ToR to MSMEDA to establish a regulatory impact assessment unit based in MSMEDA and is waiting for feedback and the green-light from MSMEDA. The recommendations on a way forward to establishing the regulatory impact assessment unit are taken both from the Policy Paper on the National Strategy and the International Consultant’s policy and advocacy paper on the roles of MSME Agencies.

Sub-component 1.2: Reviewing the Presidential Decree N.40 of 1991 establishing the SFD and the law on Small Enterprise (Law 141/2004) to clarify SFD’s mandatePursuant to the last reporting it was noted that this sub-component is still on hold as the political context for the MSME sector is still unclear (the Ministry of Industry and Trade had been given the MSME portfolio in Summer 2014 but this portfolio has now been withdrawn), and a Prime Minister Decree No. 947/2017 was passed establishing the new Agency for Development of Medium, Small and Micro Enterprises. Nonetheless, SFD management indicated that the work at the technical level could still be undertaken, so measures have been taken at analysing Law 141 and a set of recommendations prepared. As a next step SFD was to confirm status and agree that the procurement process for a consultant can commence.

During the meeting in February 2018, it was noted to the working group by MSMEDA management that Sub-component 1.2 was no longer applicable, as it called for the review of Presidential Decree 40/1991 establishing the SFD. This decree had been voided by February 2018 and replaced by Decree 947/2017 establishing MSMEDA in 2017. By the time we met in February 2018, the SFD had already been replaced by MSMEDA. It was thus decided by all stakeholders, namely, MSMEDA management, EBRD and the consultants to eliminate Sub-component 1.2 from the deliverables in the project. The team is considering the benefit of re- allocating the budget under this

subcomponent to another part of the project.

Sub-component 1.3: Implementing recommendations for a better operational environment for MSMEsStatus of Implementation:

The Legal and Regulatory Consultant in charge of this component started the assignment in October 2014 and has worked very diligently on the assignment, which focuses on the One-Stop-Shops (OSS) that are operated by the SFD and how they can be reformed in a way that would ultimately improve on the operational environment for MSMEs and encourage formalization of businesses. In particular, a number of key deliverables have been received and discussed within the SFD:1. A Cost-Benefit Analysis of the OSS, providing in particular the model for calculating and reviewing the analysis (fine-tuning the basic assumptions). Such analysis had not been done in the past and this is a key component of the reform of the OSS, ensuring that they provide value for money.2. A Unified Model for all OSS: Egypt presents a unique structure in that a number of public or quasi-public organisations are operating OSS. As a result, the procedures are very disparate. As Egypt is likely to move towards an e-government model (where licenses, permits and authorisations would be requested online), an inter-ministerial committee recommended that a uniform Model is developed which would offer a vision of common denominators that the different OSS operating in Egypt could undertake to subscribe, thereby ensuring a consistent approach to business registration while preserving the different level of services and client-focus approach that the different OSS provide. The Consultant produced the main lines of such Model. 3. An OSS Improvement Implementation Plan: The plan, which builds on a previous diagnostic study, proposes an important reform of the OSS which would significantly improve the easiness of obtaining all necessary licenses and permits for MSME to start operating. The plan will need to be formally discussed with the SFD management and approved.The official presentation of the recommendations took place in February 2018. MSMEDA officials were very happy with the recommendations in the OSS Improvement Plan. They informed EBRD that they have added the overhaul of their one-stop-shops to their national plan going forward. As a next phase of this sub-component, If MENA TF approves, EBRD will consider to design and execute a pilot programme reflecting the findings of the studies. This pilot programme would launch the new proposed design for MSMEDA’s One-Stop-Shops (from the OSS Improvement Plan) in three One-Stop-Shops across Egypt. The ToR for implementation of the pilot programme has been drafted and discussed with MSMEDA and the original consultants. This includes, inter alia, requirements to conclude agreements with relevant public authorities to action the recommendations in the OSS Improvement Plan; procure ICT equipment to run the pilot programme; build capacity of MSMEDA one-stop-shop employees who will participate in the pilot programme; and a full report on lessons learned during the pilot programme.

Component 2: Promotion of women entrepreneurship (EBRD-executed)

The implementation of the pilot project to promote women entrepreneurship has reached its end date in April 2017. However, the pilot project required four years (instead of the originally envisaged two years) to implement, with funds to be fully disbursed within the project end date. This allowed the project to reach more women entrepreneurs (within the same budget allocation), and ensure that the SFD gained experience, knowledge and best practices in the promotion and support of small businesses and women entrepreneurs in particular. Based on the already evident success of the pilot project, the EBRD started to implement the second Phase of the Component over two years until mid-2019 and expanded activities to other geographic regions. Activities will include both advisory projects for women-led enterprises and capacity building for SFD staff.

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,625,000

Sub-component 2.1: Implement four year pilot project to promote women entrepreneurship (Cumulative: Pilot + phase 2 )

Status of Implementation: Implementation has been especially successful in delivering results in terms of number of women supported via advisory projects or engaged in trainings, networking events and international mentoring while at the same time engaging SFD staff in project delivery; transferring on-the job knowledge and skills at all levels of implementation of the programme. The joint SFD and EBRD team successfully:

assisted 127 women entrepreneurs out of a target of 120 (60 pilot and 60 phase II), carried out 160 advisory projects with local consultants, of which 132 have been

successfully completed and evaluated. Trained 479 women under the programme, and the team has successfully engaged with around 640 women across the country in

Market Development Activities promoting access to advisory services.Business Advisory Services (BAS) projects: To date, the programme has successfully started 160 BAS projects supporting 127 women entrepreneurs. The programme helped women access the required Know-How to grow their business by raising their understanding of the potential benefits of advisory services. Out of the 160 projects, 37 were located in the Delta and Upper Egypt regions. Most of the business advisory services implemented were in the field of management improvement through the implementation of ERP (Enterprises Resource Planning) Systems and Management Information Systems. Improving marketing performance was also a priority and it was provided through advice on developing on-line marketing strategies, creating websites, building solid corporate identities and improving marketing skills amongst employees. The team has managed to identify and register 65 new consultants from Cairo, Alexandria, Asyut, and Gharbia engaging them in BAS projects. The team is also working on developing the supply and quality of the consultancy market; 4 training courses in Gharbia, Asyut, Minya and Mansoura delivered in 2016 & 2017 to help consultants improve their skills and reach new MSME clients.In addition, through its Non-Financial Services department, SFD has managed to facilitate business opportunities for women entrepreneurs improving their access to markets :

29 marketing opportunities through local exhibitions were provided. 5 marketing opportunity through international exhibition was provided. 12 opportunities to participate in governmental biddings were facilitated. 5 services for bar-coding of products were provided with 50% discount. 10 matchmaking opportunities was provided to linkage women products with other women

clients or NGOsOngoing Advisory Support (Coaching): The team started 14 coaching projects out of 10. Ongoing business advisory support/coaching is an instrument designed to support specifically women entrepreneurs under the WiB initiative. It is developed to address the established need for medium-term general business coaching utilizing local consultants, as a follow on or in addition to standard task-specific BAS projects.Mentoring programme: The team has built on existing EBRD synergies with the Cherie Blair Foundation (CBF) to create a partnership under this programme to provide international mentoring to a number of women mentees; preferably women leading larger SMEs, who speak English and who would beneficiate from exposure to international markets. CBF has started pairing a couple of mentees, where 30 women entrepreneurs have been engaged with CBF in five intakes to receive their international mentoring.Entrepreneurship training courses: in order to enhance the entrepreneurial skills and technical capacities of women entrepreneurs, the programme has designed and delivered 25 courses training for over 479 women:

Fashion design and Pattern Making Training ( 1 round): the training’s main objective was to improve the technical skills of women entrepreneurs working in the field of readymade garments manufacturing and trading. The training was delivered in June 2014, for 10 women entrepreneurs in Tanta. The choice of Tanta city was based on the fact that most

of the small sized readymade garments industries are concentrated in Gharbia Governorate and specifically in Tanta and Mahala cities. The training was successful and trainees’ feedback was very positive; many of them have asked to take a follow-up training: “Advanced Fashion and Pattern Making Training”. Most of the trainees stated that the training they have received will positively impact the quality of their production and will increase their export capabilities.

Going Digital (9 rounds): the training’s main objectives were to increase local women-entrepreneurs knowledge of internet marketing, e-business commerce, e-marketing tools (SEO, Google AdWords, Google analytics) and Social media; to enhance the online presence of local women-owned/managed SMEs and finally to provide local women-owned/managed SMEs with the know-how to attract new clients, increase sales, build a brand, increase market presence via online tools. The training was successfully delivered to a total of184 women entrepreneurs in Cairo and Alexandria. As a result, a number of trainees started applying the online tools acquired during the training and a considerable number requested advisory services in the field of on-line marketing and website development. It is worth mentioning that under the MOU signed between EBRD and Arab Women Organization (AWO), one round of Going Digital training was delivered to 24 women from different Arab regions most of them are from SEMED region. The cost of the training course was fully covered by the AWO.

Keys to Financial Management (9 rounds): the training’s main objectives were to equip women entrepreneurs with basic accounting and financial management skills to enable them to use financial information to make better business decisions. Understanding financial information and its implications on business operations will allow managers/owners to make better decisions and stay ahead of their competitors. The training was successfully delivered to 170 women entrepreneurs in Cairo, Tanta and Alexandria. Most of the trainees stated that the training they have received will make them more familiar with financial issues and ratios.

Leadership in Action (5 rounds): the training main objective was to transfer skills and knowledge on effectively running and growing a small business including leadership skills, presentation, communication, negotiation and sales, work-life balance. The training was successfully delivered to a total95 women entrepreneurs in Cairo. It is worth mentionning that within the MOU signed between EBRD and Arab Women Organization (AWO), one round of Leadership in Action training was delivered to 24 women from different Arab regions most of them are from SEMED region. The cost of the training course was fully covered by the AWO.

From Entrepreneur to enterprise (1 Round): The training main objective was helping the women clients to understand organizational development definition and concept, corporate culture and values. Moreover; improve organizational skills and enable participants to identify prevailing organization culture in their organizations. The training increased knowledge on legal environment / to improve organizational structure setting skills and enabled participants to strategically plan succession and/or corporatization and/or restructure family business. The training was successfully delivered to 19 women entrepreneurs in Cairo.

Impact and evaluation: 88 projects have been evaluated one year after completion, 78 of which were funded by the MENA transition fund and 10 projects were funded by the SEMED multi donor accounts under the joined program. 88% are rated successful or highly successful; 85% of assisted enterprises have reported an increase in annual turnover with an average of 75%. 60% of assisted enterprises have reported an increase in number of employees, on average by 43%, creating more than 410 new jobs. As of Dec 31th, 2017, 32 women entrepreneurs succeeded in raising finance externally for more than EGP 39.7 million.

Linking with SFD partner financial institutions: One of the key activities of the programme is to build links with different local and international financial institutions in order to improve access to credit for the assisted women entrepreneurs. In this regard, the programme has managed to facilitate financing opportunities to a number of women entrepreneurs through the direct lending portfolios of SFD, NBE, and Baraka bank as well as GroFin.

Networking and Visibility Events: Visibility, networking and dissemination activities or Market Development Activities (MDAs) are considered for both EBRD and the Social Fund for Development SFD as interactive platforms to showcase best practices and successful stories of women entrepreneurs. These activities are aligned with SFD’s efforts to create a heightened public awareness of the role of women in entrepreneurial activity and the contribution they make to the economy and to society in general, and promotion of entrepreneurship as a viable and feasible employment opportunity for women. 32 Market Development Activities including “round table discussions, networking & visibility events and group meetings” have been conducted to increase the visibility of the programme amongst the business community. These MDAs were attended by almost 640 women entrepreneurs as follow:

3 Meetings and workshops with the graduates of the women leadership programme WEL programme implemented by the American University in Cairo and Goldman Sachs, this resulted in engaging (10) women entrepreneurs in the programme.

4 – 6 Roundtable table discussions with SFD staff and 37 potential women entrepreneurs at the SFD premises

Visibility event at the SFD’s HQ in Giza to attract 6 women entrepreneurs and local consultants.

2 Visibility events at the SFD in Delta regional office – Kalubia - to attract 13 women entrepreneurs and local consultants

Visibility event/ presentation conducted at the National Council for Women in Tanta Gharbia Governorate and was attended by 20 women entrepreneurs and local consultants

Visibility event/ presentation conducted at the National Council for Women in Assuit Governorate, Upper Egypt and was attended by 17 women entrepreneurs and local consultants

2 Visibility events/ presentation conducted at the SFD in the regional office of Sohag in Upper Egypt and was attended by 23 women entrepreneurs

2 Roundtable discussion at the SFD in Cairo with 10 potential women entrepreneurs Roundtable discussion with local consultants and women entrepreneurs as well as SFD

staff in Tanta Gharbia Governorate in Upper Egypt attended by 6 women entrepreneurs. On the job training session for 10 SFD staff working on the project on promoting the

programme and attracting new clients – the training was conducted by SBS staff. A networking event attended by 80 women entrepreneurs which was covered by regional

and national media. The networking event was conducted in collaboration with the Business Women Association 21 as well as with the UNIDO programme for SMEs and the SFD.

A networking and visibility event : “Innovation Fundamentals” was organized in December 2014 in collaboration with SFD. The event was attended by Ms Soha Soliman SFD Managing Director well as by 90 women entrepreneurs and stakeholders. During the event a short presentation about the importance of innovation in business was conducted by a prominent speaker in the field of innovation and it was well perceived by the attendees.

1 Visibility events/ presentation conducted at the National Council of Women in Alexandria to promote the activities of the program. The event was organized in cooperation with SFD and was attended by 35 women. Round table discussion was held at SFD Alexandria office to increase the understanding of a group of potential clients about the importance of

advisory service to improve their businesses. The event was attended by 15 women. A joint visibility event took place in Hilton Alexandria Hotel in cooperation with SFD &

Women Unit affiliated to Industries Federation, the event included 95 of existent and potential enterprises owned by Women.

A networking event was organized in cooperation with Entrepreneurs Organization (EO). EO is a global network exclusively for entrepreneurs. EO helps leading entrepreneurs learn and grow through peer-to-peer learning, and connections to experts.

A visibility event was organized in cooperation with USAID’s Strengthening Entrepreneurship and Enterprise Development (SEED) Project & the Ministry of Communications and Information Technology (MCIT), The aim of the event was to promote women entrepreneurship and economic enhancement in Upper Egypt. The event was conducted during the period from March 30th- April 1st) in Luxor

The program also participated in a 3-Days National Workshop in cooperation with Businesswomen of Egypt 21 (BWE21) from18th – 23rd of February 2017 - Aswan – Upper Egypt

Networking event ASB/ WIB in cooperation with the Alexandria Businesswomen Association ABWA, October 28th, 2017 at Hilton King’s Ranch, Alexandria.

Visibility Event In cooperation with Social Fund for Development (SFD) to introduce the second phase of the program to the new SFD team members.

The program also participated in a National 3 Days Workshop with BWE21, Luxor , Upper Egypt from 17-20 February 2018.

In addition, the team engages closely with local stakeholders including active business women associations, the National Council for Women, the UN Women programme and the ILO in the project implementation. The project team represented by Reem El Saady is appointed as a member in the “National Women Economic Empowerment” committee headed by the SFD at the National Council for Women.Building the SFD Capacity: The objective of this activity is to build the capacity of the SFD in a manner that enables the institution to sustain the implementation of the advisory services activities in the future and to maximize the benefits gained from the transfer of the EBRD Advise for Small Businesses team ( ASB) knowledge. The activity is currently on-going and embedded in all of the activities through successful joint implementation of projects screening, diagnostics, monitoring but also in the design and implementation of the trainings and networking events. EBRD is also working with SFD on developing SFD advisory services specific guidelines and procedures with the objective of designing an Operational Manual before the end of the project.In this regards, the following activities were successfully implemented:

A Training Needs Assessment was conducted for SFD non-financial staff. A local consultant was hired to assess the training needs (TNA) and performance gaps of 32 SFD Non-financial officers all over Egypt. The TNA helped EBRD to develop and implement the appropriate training programme to build SFD team capacities and skills to support women entrepreneurs to access non-financial business development services.

Based on the results of the TNA, an intensive 4 days Business Diagnostic Training Course was customized and delivered to 32 SFD Non-financial officers. The training was conducted by a hired local consultant who translated, customized and delivered one of EBRD’s international training courses in business diagnostic. The objective of the training was to build the capacity of SFD non-financial officers to understand how to diagnose different businesses performance using specific diagnostic tools. In addition, the training would build SFD staff capacity and help them better communicate and interact with MSMEs owners, building their trust and empathy and promote non-financial services.

On the job training is also conducted through face to face interactions between EBRD team and SFD team on weekly basis.

One day training was delivered to SFD officers from all the Egyptian governorates on how to use and promote the BUSINESS LENS among their women client. BUSINESS LENS is an

innovative online tool developed by EBRD team in HQ to be used by women entrepreneurs to assess the performance of their businesses from different perspectives. The training was held in the SFD HQ and it was attended by 25 SFD staff.

EBRD team has received the first draft of the operational manual prepared by SFD WiB team and facilitated by EBRD team. This OP manual is an important outcome of the pilot phase. The OP manual will be reviewed by EBRD in the light of existent activities and SFD mode of operation.

A new training program titled ”Project Management” was developed and adapted to improve the management skills Of SFD team. The training delivered on January 2017 at the SFD QH and was attended by 15 Non- Financial Officers.

Advanced Project Management, Monitoring and Evaluation training for SFD Non-Financial Services Officers in Egypt. The training delivered on 21th -23th August, 2017 and was attended by 14 Non- Financial Officers.

Sub-component 2.2: Second Phase of the pilot, including delivery of advice to women-led enterprises and capacity building of SFD staff, as well as an expansion of activities to other regions

Status of Implementation:

May 1st, 2017 EBRD team in cooperation with SFD team started the joint implementation of Phase II. The project activities were expanded into other regions in Alexandria, Mansoura, Suez Canal cities (Port Said, Ismailia, Suez) and, in the South, Menia and Asyut where the delivery of advice to women-led enterprises and capacity building to the SFD as well as Business consultants took place. In this regards, WiB team in both EBRD and SFD have delivered the following interventions within the framework of Phase II, as follow:

I. Joint delivery of non-financial business development services to women-led enterprises

a. From May 1st, 2017 to date, the programme has successfully started 46 BAS projects supporting 42 women entrepreneurs. The programme helped women access the required Know-How to grow their business by raising their understanding of the potential benefits of advisory services. These projects were in Cairo, Giza, Asyut and Alexandria. Most of the business advisory services implemented were in the field of management improvement through the implementation of ERP (Enterprises Resource Planning Systems) and Management Information Systems. Improving marketing performance was also a priority and it was provided through advice on developing on-line marketing strategies, creating websites, building solid corporate identities and improving marketing skills amongst employees. The team has managed to identify and register 11 new consultants from Cairo and Alexandria engaging them in BAS projects.

b. 7 coaching project was delivered out 10 and the team is paying more efforts to promote the coaching concept among women clients.

II. In order to enhance the entrepreneurial skills and technical capacities of women entrepreneurs, the programme has designed and delivered 11 courses training for over 212 women as follow:

a. Going Digital (1 round): the training’s main objectives were to increase local women-entrepreneurs knowledge of internet marketing, e-business commerce, e-marketing tools (SEO, Google AdWords, Google analytics) and Social media; to enhance the online presence of local women-owned/managed SMEs and finally to provide local women-owned/managed SMEs with the know-how to attract new clients, increase sales, build a brand, increase market presence via online tools. The training was successfully delivered to 23 women entrepreneurs in Cairo. As a result, a number of trainees started applying the online tools acquired during the training and a considerable number requested advisory services in the field of on-line

marketing and website development. b. Keys to Financial Management (4 rounds): the training’s main objectives were to

equip women entrepreneurs with basic accounting and financial management skills to enable them to use financial information to make better business decisions. Understanding financial information and its implications on business operations will allow managers/owners to make better decisions and stay ahead of their competitors. The training was successfully delivered to 66 women entrepreneurs in Cairo and Alexandria. Most of the trainees stated that the training they have received will make them more familiar with financial issues and ratios.

c. Leadership in Action (3rounds): the training main objective was to transfer skills and knowledge on effectively running and growing a small business including leadership skills, presentation, communication, negotiation and sales, work-life balance. The training was successfully delivered to 59 women entrepreneurs in Cairo.

d. From Entrepreneur to enterprise (1 Round): The training main objective was helping the women clients to understand organizational development definition and concept, corporate culture and values. Moreover; improve organizational skills and enable participants to identify prevailing organization culture in their organizations. The training increased knowledge on legal environment / to improve organizational structure setting skills and enabled participants to strategically plan succession and/or corporatization and/or restructure family business. The training was successfully delivered to 19 women entrepreneurs in Cairo.

III. Strengthening the local consultancy market by offering the EBRD “Grow your Consulting Business” training suite to a minimum of 45 local consultants

a. The team is also working on developing the supply and quality of the consultancy market; 2 training courses in Mansoura and Minya delivered in 2017 to help consultants improve their skills and reach new MSME clients. The activity was attended by 34 local consultants.

IV. Capacity building of SFD non-financial services staff dedicated to Women in Business

a. The team has facilitated delivery of Advanced Project Management, Monitoring and Evaluation training for SFD Non-Financial Services Officers in Egypt. The training delivered on 21th -23th August, 2017 and was attended by 14 Non- Financial Officers.

V. Visibility, dissemination and networking

a. Networking event ASB/ WIB in cooperation with the Alexandria Businesswomen Association ABWA, October 28th, 2017 at Hilton King’s Ranch, Alexandria. The event was attended by 90 business women.

b. Visibility Event In cooperation with Social Fund for Development (SFD) to introduce the second phase of the program to the new SFD team members. The event was attended by 60 SFD officials and team members.

c. The program also participated in a National 3 Days Workshop with BWE21, Luxor , Upper Egypt from 17-20 February 2018

Component 3: Strengthening SFD’s data analysis to enhance targeting and monitoring mechanisms (SFD executed)The project is in its final stage and the completion progress is 100% in January 2018. The nature and substance of

this component has been changed since its inception to improve complementarity with other ongoing work already commissioned by SFD. This component focuses on developing SFD’s information systems for the management of results-based monitoring data, and developing an automated enterprise management system. Microsoft is the consultant selected to fulfil the revised terms of reference, and the kick-off meeting was held in June 2015.SFD has subscription through MCIT to build its own Infrastructure (Servers, Storage, Network, Security, Connection, and licenses) on Microsoft Azure, this environment function as the same as (and more than) On-primes or Physical Data Center.SFD decided to use Azure due to unavailability of Physical Servers and Storages plus Software license that cost all (Hardware and Software) about 300.000 USD.

For the first work stream:A- Intranet website: Completion of fixing all agreed upon UAT findings/issues is done, completion of final

deployment on pre-production environment is achieved and the completion of test deployment on production environment is completed.

B- Extranet website: The Plan, Build & Stabilize phases of the extranet website is completed. The deployment on re-production environment is done and the deployment on production environment is achieved.

The third work stream is complete. Infrastructure installation & configuration for Production environment is complete, as well as the reports and dashboards development. All other activities in this work stream have been completed and signed off.



Cost (US$): 200,000

Sub-component 3.1:

Enhancing targeting and monitoring mechanisms

Status of Implementation: The envisioning and planning phase of this subcomponent is complete. As for the work streams, the first work stream is completed and, the second work stream Azure worked on it and the development and implementation phases of the third other work stream are completed.The third work stream is complete. Infrastructure installation & configuration for Production environment is complete, as well as the reports and dashboards development. All other activities in this work stream have been completed and signed off.

Sub-component 3.2:

Strengthening SFD’s data analysis

Status of Implementation: The envisioning and planning phase of this subcomponent is complete, and the implementation begun in July 2016.

All of the implementation tasks have been completed. Intranet website UAT plan and preparation is complete with SFD business users. Intranet website UAT sessions have been conducted successfully; comments resulting from the UAT phase are gathered and classified into the following categories: Issues, Enhancements, New requirements. Infrastructure installation & configuration for Production environment is complete.

SFD has confirmed that both testing & production environments are to be hosted on Azure and SFD has provided the necessary Site-to-Site VPN Connectivity

As for the remaining work in progress, SFD team to confirm that the deployment on the production environment of both the intranet and the extranet websites is completed.

D. Disbursements of Transition Fund Funds for Direct Project Activities

Country-Execution (US$)


Total (US$)

(x) (y)


1,119,000 1,625,000 2, 744,000


1,119,000 1,625,000 2,744,000

Actual Amount Disbursed (c): 453,294 845,841 1,299,235

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 64,042 171,732 2377882015 223,845 95,477 3213372016 270,241 143,362 413,6032017 107,578 320,000 427,5782018 82,372 300,000 780,0002019 400,000 167,723 567,723


165,000 27,080 192,080


Project Development Objective (PDO): Strengthen the capacity of the SFD to support the MSME sector in Egypt with a particular focus on promoting women entrepreneurship


MeasureBaseline


FrequencyData Source/Methodology

Responsibility for Data

Collection


definition etc.)

Apr 2013 –

Mar 2014

A

Apr 2014 –

Mar 2015

A

Apr 2015 –

Jun 2016

A

July 2016 – June 2017

A

July 2017 –

Dec 2018

A

Jan 2019 –

July 2019

FIndicator One:Strengthened SFD advocacy and policy formulation capacity to support the MSME sector as seen by

- Revision of the Presidential Decree N. 40 of 1991 and amendments to the Law 141

- Action Plan on the operational environment for MSME endorsed by all stakeholders (including public administrations concerned)

- Recommendations of the Action Plan on the operational environment for MSME are implemented for at least 25%.

Binary

Binary

Binary

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

1

0

1

1

25%

Once

Once

Once

Official Journal or other official governmental/presidential decree source

SFD Policy Unit ReportsAnd Consultant Reports

SFD Policy Unit ReportsAnd Consultant Reports

SFD

SFD

SFD

Reports should describe the consultation process and outcomes

Reports should list and describe the implemented measures in detail

Indicator Two:Number of women owned/managed enterprises (and women) supported

Of which, projects evaluated for impact

Indicator Three:Impactful business advisory services for MSMEs delivered by

Number0

0

160(127)

88

Ongoing

Ongoing

SFD/EBRD

SFD/EBRD

EBRD

EBRD

the SFD as seen by improved performance of assisted women owned/managed enterprises as follows: number of assisted

enterprises to increase turnover/productivity after completion of the project

number of assisted enterprises to increase employment after completion of the project

number of assisted enterprises to access finance after completion of the project

number of assisted enterprises to engage external advisory services independently after completion of the project

0

0

0

0

NA

NA

NA

NA

21

12

15

NA

84

55

27

24

67

48

32

39

75

53

32

42

N/A

N/A

N/A

N/A

Ongoing

Ongoing

Ongoing

Ongoing

SFD/EBRD

SFD/EBRD

SFD/EBRD

SFD/EBRD

EBRD

EBRD

EBRD

EBRD


Intermediate Result (Component One): Legal and Regulatory Reform to Strengthen SFD Advocacy and Policy Formulation Capacity to support the MSME sector

Intermediate Result indicator

- Proposed amendments to the Presidential Decree

- Proposed amendments to the Law 141

- Presentation of a Strategy for enhancing the legal and regulatory environment for MSMEs to main stakeholders.

- Draft Action Plan on the operational environment for MSME

- A Policy Unit established within the SFD comprising at a minimum two full-time staff.

Binary

Binary

Binary

Binary

Binary

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

1

1

0

0

1

1

1

1

1

1

1

1

1

1

1

1

1

Once

Once

Once

Once

Once

SFD

SFD

SFD

SFD

SFD

SFD

SFD

SFD

SFD

SFD

Intermediate Result (Component Two):Strengthened women entrepreneurial activity and strengthened capacity of the SFD to support and promote women entrepreneurship

Intermediate Result indicator One: Women entrepreneurs assisted with targeted advisory services, ongoing business advisory support and mentoring

Number 0 24 41 90 129 157 191 Ongoing SFD/EBRD EBRD

Intermediate Result indicator Two: Women trained in advanced entrepreneurial skills

0 10 31 122 267 479 367Ongoing SFD/EBRD EBRD

Intermediate Result indicator Three: Local business advisers trained to support women entrepreneurs

0 N/A N/A 20 33 72 78Ongoing SFD/EBRD EBRD

Intermediate Result indicator Four: SFD personnel trained on the job to facilitate the provision of business advisory services to women entrepreneurs

0 10 10 15 32 46 52 Ongoing SFD/EBRD EBRD

Intermediate Result indicator Five: Creation of a manual for SFD personnel documenting the pilot project

No 0 1(accomplished)

1 1 1 1

Intermediate Result (Component Three):Enhanced targeting and monitoring mechanisms of the SFD for Service Delivery

Intermediate Result indicator One: Linkage and integration of better data analysis and reporting in the overall SFD service delivery strategy

Qualitative

No Yes Annual Project reports, SFD departments’ reports, and annual plans

EBRD

Intermediate Result indicator Two:Data system analysis institutionalized in the SFD

Number and qualitative research

No, and 0 staff trained

Yes, and 2 staff trained

SFD/EBRD EBRD

Logismed Soft Regional Project: Egypt ActivitiesA. Basic Project Information

Activity Name: LOGISMED soft project – Regional project – Activities in EgyptCountry Name: Egypt

Name of Implementation Support Agency(ies):Investment Bank

Name of ISA Project Leader: Mr. Stephen O’DRISCOLL


Recipient Entity: Ministry of TransportGeneral Authority for Land and Dry Ports

Name and Email of Recipient Entity Contact:Ambassador Mahmoud [email protected]. Dr. Mohamed Ali [email protected]

Total Amount Approved by the Transition Fund (US$):

1,423,094 US$ (Direct) + 142,309 US$ (Indirect) = 1,565,403.00 US$

Additional Funds Leveraged and Source(s), if any (US$): EUR 3 m from the European Commission for 5 countries including Egypt (Agreement finalized between EC and EIB in November 2013)

Total Amount Disbursed (Direct and Indirect in US$):

313,590.86 US$8 +142,309 US$ (Indirect) = 455,899.86 US$

Steering Committee Approval Date: 20 February 2013

Project Implementation Start Date:31 July 2013

Project Closing Date:11 December 2018


Primary Pillar: Competitiveness and Integration: Logistics

Secondary Pillar(s):Investing in Sustainable growthInclusive Development and Job CreationEnhancing economic governance

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of LOGISMED is to support the enhancement of logistic platform capacities in Egypt, Morocco and Tunisia as well as the creation of a collaborative network between these logistic platforms in order to improve country capacities and to attract foreign investments, directly affecting the development of the country and its citizens.Rating for progress towards achievement of objective: UnsatisfactoryRating for overall implementation progress: Moderately UnsatisfactoryBrief Summary of Project Implementation Status:

In January 2018, the third SCM was held in Rabat (Morocco). Participants from Egypt attended the meeting, which reviewed the progress of the initiative at regional level and defined the guidelines for the 2018 activities. During the bilateral session held with the Egyptian representatives, the national focal point informed CETMO, GOPA and EIB that the security issue had now been addressed and that the project in Egypt could be resumed.

During Q1 & Q2 2018, activities have been programmed and correctly implemented. However, due to the huge delay to receive authorisation from Egypt representatives to implement field activities, the project cannot be completed as originally designed.

The field work has shown a moderate level of progression in all components at the regional level:

The report defining the characteristics and services of the LOGISMED logistics platforms and the configuration of the network has been published and training is being planned to be carried out in Egypt during September/October 2018. The LOGISMED website will be published in July 2018. Two meetings of the knowledge network around logistics performance have been held, where Egyptian representatives have participated;

The consortium led by GOPA, in charge of the implementation of the training activities funded by the

8




European Commission (the second component) could not launch the training activity in Egypt due to the aforementioned security issues until March 2018. Originally, a second phase of training was going to be deployed in Egypt using funding from the MENA Transition Fund, but time constraints are now such that training under the MENA TF will not be done. This was agreed during the SCM held in Rabat;

For the third component, the Logistics Observatory, the desktop data collection/processing is well advanced. This work should be complemented in the field during the course of 2018. The current expectations are to complete 50% of the indicators of the Regional Observatory by the end of 2018 for the Egyptian data. However, it has been concluded that due to time, resource and capacity constraints, there is no possibility now of setting up a formal National Observatory in Egypt. In lieu of this, an agreement was reached during the SCM that the administrative structure within the Ministry would be strengthened such that the Ministry would assume this role. The project will offer in September and October 2018 training to the staff of this administrative unit.

The EIB foresees at the time of reporting that an extension of the project closing date will be requested.

Add specific actions, as appropriate, that need to be taken over the next six-months to advance project implementation. This is a mandatory field to report on for red-flagged and watch-listed projects.

Actions to be taken Responsible Party


Launching of the LOGISMED website as a knowledge tool for promoters of logistics platforms; CETMO 7/23/20187/23/2018

Holding the third knowledge networking event; CETMO 12/10/201812/10/2018Training on the LOGISMED logistics platforms guide for public and private promotors in Egypt (two sessions); CETMO 9/10/20189/10/2018

Finalising training activities in Egypt; GOPA 12/10/201812/10/2018

Continue implementing the activities defined to feed-up the Regional observatory with Egyptian indicators, analysis and dissemination of the outputs;

CETMO 11/12/201811/12/2018

C. Implementation Status of Components Component 1: LOGISMED CoordinationPrevious Rating: Moderately Satisfactory

Current Rating: Moderately Satisfactory Cost (US$): 314,387

Sub-component 1.1: Promotion of the LOGISMED projectStatus of Implementation: Due to security issues, activities in Egypt could not be launched until February 2018. As such, the work during 2018 will focus on the dissemination of the reports and on the training of the promoters of logistics platforms around the concept of LOGISMED logistics platforms (public and private). In September 2018, a training session with public administration officials will be held and, later on, private promoters will also be trained.Sub-component 1.2: Definition of the LOGISMED network of platformsStatus of Implementation: The creation of the network aims at spreading the modernisation of logistics as well as promoting competitiveness, businesses and generating employment in the beneficiary countries. Thus, the concept of EMNLP (Euro-Mediterranean Network of Logistics Platforms) is transformed into a lighter concept, a knowledge network.The new approach to set up a network of logistics knowledge platforms will include the following main actions:

Dissemination of the Guide on the Design and Implementation of Logistics Platforms (see sub-component 1.1);

Construction, administration and animation of the LOGISMED Website (to be published in July 2018);

Implementation of networking activities;At this point two knowledge networking event have been held. First networking event was held in January 2018 in Rabat. Two Egyptian representatives participated in this event. Second event was held in Barcelona in June 2018. In this three day-session, two representatives from Egypt took part. This event offered the opportunity to these representatives to participate in the Logistics Salon of Barcelona, establishing relations with logistics Mediterranean

and international key stakeholders. A commented visit to the logistics infrastructures of the Perpignan area was held the last day of the networking event.Immediate activities for Component 1 include:

Training sessions around the concept of LOGISMED logistics platforms and network with public officials and private stakeholders (CETMO) during September of 2018;

Launching the LOGISMED Website (CETMO), July 2018; 3rd networking activity of the LOGISMED logistics platforms network (December 2018, CETMO).

Component 2: LOGISMED Training ActivitiesPrevious Rating: Moderately Satisfactory

Current Rating: Moderately Unsatisfactory Cost (US$): 491,660

Sub-component 2.1: LOGISMED Country Training ActivitiesStatus of Implementation: GOPA is the leader of the consortium of consultants responsible for delivering training activity funded through the EC grant. A contract was signed in April 2016 and it will come to an end in December 2018. As explained in previous reports, the first batch of training activity is to be carried out under the EC grant. The original idea was to use the Deauville funds for a second batch, once this first had advanced sufficiently and lessons learned from it were available. As indicated earlier, it has been concluded that progress has been insufficient to justify launching any further training activity and during the 3rd SCM in Rabat, participants agreed that the work during 2018 (the last year of the initiative) will be focused on finalising the current training activity, not launching new ones.Sub-component 2.2: LOGISMED Platform Training ActivitiesStatus of Implementation: This activity will be part of the work of the training consultant hired as described under sub-component 2.1 The train the trainers activity will be implemented in Cairo during 2018. These trainers will train more than one hundred blue-collar logistics employees, during the last semester of 2018.Immediate activities for Component 2 include:

Finalising the specific training activities in Egypt (GOPA, until December 2018); Fourth meeting of the Steering Committee of LOGISMED Soft December 2018.

Component 3: LOGISMED ObservatoryPrevious Rating: Moderately Satisfactory

Current Rating: Moderately Satisfactory Cost (US$): 617,047

Sub-component 3.1: Action Plan for LOGISMED ObservatoryStatus of Implementation: As earlier reported, the sub-component is finalized.Sub-component 3.2: Observe and analyse regional developments Status of Implementation: No activity on the field has been done until February 2018 due to the need for security clearance.Another finalised element of the work is the study of statistical data production in Egypt, to be used to elaborate the different indicators. The Egyptian priorities for the short-term concerning the observatory and its needs have been adapted in the list of activities to implement in the short term. Therefore, the collection and treatment of the statistical information that will feed the observatories is completed. Some of the indicators defined are ready to be published.A second pack of indicators will require extra work to improve the basic information. In fact, strengthen cooperation with national statistical producers is needed to ameliorate this information. As commented, this work could not be launched until February of 2018. The last group of indicators concerns those for which it will be impossible to obtain results by the end of the project. Most of the activities of this sub-component should be implemented during second semester of 2018, now that the required security clearance has been granted (elaborating the indicators, implementing cooperation with national statistical providers to collect new data or improving the existing data and preparing results and analysis of the indicators). Once ready, the indicators, analysis and results will be published in the website of the LOGISMED initiative (sub-component 1.2).Sub-component 3.3: Promoting the emergence of national observatories of logistics and transportsStatus of Implementation: The works related to this subcomponent started in March 2017 during a mission to Egypt. Discussions with the Egyptian representatives have been established in order to gauge their interest to create a national observatory to monitor the progress of logistics developments. Following that, an assessment of the human resources required was performed. However, after one year of inactivity on the field and with just one remaining year ahead, it was agreed with the national focal point that the support from the LOGISMED initiative must concentrate on reinforcing the administrative unit within the Ministry that follows the Observatory activities. In summary, there is no longer the possibility to build-up a new structure to act as a National Observatory. Efforts are consolidated to focus on the cooperation through the regional observatory and training the team of the Ministry.Immediate activities for Component 3 include:

Continuing collecting/processing data to elaborate the indicators of the logistics observatories (regional);

Implementing cooperation with national statistical providers to improve the quality and quantity of logistic data produced in Egypt;

Training staff of the administrative unit of the Ministry who will manage the Observatory issue; Disseminating and publishing indicators, analysis and other results from the Observatory, through the

LOGISMED website.


(US$)(x)


(y)Total (US$)

Approved Amount for Direct Project Activities (a): 0 1,423,094 1,423,094

Amount Received from Trustee (b): 0 1,423,094 1,423,094

Actual Amount Disbursed (c): 0 313,590.86 313,590.86

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2018 - 100,000 413,590.86


142,309 0 142,309


Project Development Objective (PDO):

To support the enhancement of platform capacities as well as the creation of a collaborative network between these platforms.


Unit of Measure

Baseline


Frequency Data Source/Methodology


Collection


definition etc.)

Jul 2013 - Jun 2014

A

Jul 2014 –

Jun 2015

A

Jul 2015 - Jun 2016

A

Jul 2016 - Jun 2017

A

Jul 2017 - Dec 2018

A

Indicator One:Logistics Performance Index (LPI)

unit 2.98 n/a 2.973.18(LPI

2016)n/a - Each 2

yearsWB LPI report EIB

Logistics Performance Index (LPI)

measures the logistics

"friendliness" of 155

countries

Indicator Two:Labour force employed by the transport and logistics sector % 4.7

(2010)7.1

(2013) 7.2

(2014)

2015 data not availabl

e

7,5 (2016)

7.7(2017)

Once per year

National statistic

institutesEIB

Percentage of the Number of

employees working on the transport and

logistics sector.

Indicator Three:Tones and value of the intra-Mediterranean external trade

Millions tones

10.5(2008 data)

12.5(2013)

12,0 (2014)

9,3(2015)

9,9 (2016) 13.6 Once per

year

COMTRADE (United Nations)

EIB

Volume and value of the exports and

imports among the MENA countries.

Intermediate Result:Component II: LOGISMED Training Activities

SCII.1: LOGISMED country Training ActivitiesSCII.2: LOGISMED platform Training Activities


Intermediate Result indicator One:

Number of national logistics associations in place

# assoc.

Intermediate

Result indicator

One:Number

of national logistics associations in place

Intermediate Result indicator

One:Number

of national logistics associati

ons in place

# assoc.# assoc.

Intermediate Result indicator One:Number of national logistics associations in place

# assoc.


# assoc.

Intermediate Result indicator Two:Number of people participating in training (general public)

# persons


# person

s


# person

s


# person

s

Intermediate Result indicator Two:Number of people participating in training (general public) # persons

Consortium leader

The promotion of the LOGISMED

project try to disseminate the need to upgrade

logistics and transport sector

and also to implement logistics

platforms under the LOGISMED

standards

Intermediate Result indicator Three:

# workers Intermediate

# worker

Intermedi

# worker

Intermedi

# worker

Intermediate Result

# workers Ministry of Transport and

National structures are

Number of platform workers trained

Result indicator Three:Number of platform workers trained s

ate Result indicator Three:Number of platform workers trained

s

ate Result indicator Three:Number of platform workers trained

s

indicator Three:Number of platform workers trained

Equipment

involved in the promotion of the Logistic platform

offer

Intermediate Result:Component II: LOGISMED Training Activities

SCII.1: LOGISMED country Training ActivitiesSCII.2: LOGISMED platform Training Activities


Unit of Measure

PDO Level

Results Indicator

s*

Unit of Measure PDO Level

Results Indicators

*

Unit of Measure

PDO Level Results

Indicators*Unit of MeasureJul

2013 - Jun 2014


# assoc.


# assoc.


# assoc.


# assoc.


# assoc.Ministry of

Transport and Equipment

Continuity and sustainability of the project and of the logistic promotion comes from a powerful sector asking for their needs. This indicator measure the number of national associations working


# persons


# person

s


# person

s


# person

s

Intermediate Result indicator Two:Number of people participating in training (general public) # persons Consortium

leader

This indicator measure the capacity of the project to generate sufficient capacity in countries to provide independently a consolidated training offer.

Intermediate Result indicator Three:Number of platform workers trained

# workers Intermediate Result indicator

# worker

s

Intermediate Resul

# worker

s

Intermediate Resul

# worker

s

Intermediate Result indicator Three:

# workers Consortium leader

This indicator measure the

capacity of the project to

generate the

Three:Number of platform workers trained

t indicator Three:Number of platform workers trained

t indicator Three:Number of platform workers trained

Number of platform workers trained

human resources to operate the platforms

Intermediate Result (Component Three):Component III: LOGISMED Observatory

SCIII.1: Action Plan for the LOGISMED ObservatorySCIII.2: Observe and analyze the region developments in logistic & transport SCIII.3: Promotion the emergence of national observatories of logistics & transports




Frequency

Data Source/

Methodology


Description (indicator definition

etc.)Jul

2013 - Jun 2014

Jul 2014 – Jun 2015

Jul 2015 - Jun 2016

Jul 2016 - Jun 2017

Jul 2017 - Dec 2018

Intermediate Result indicator One:Number of quality indicators in the database

# records 0 0 0 0 12 20 Once per year

LOGISMED database

Consortium leader

Number of quality indicators in the database describing the evolution of the transport and logistics sector

Intermediate Result indicator Two:Number of national observatories in place or in progress to be set up # observ. 0 0 0 0

1(under study)

0 Once per year

Ministry of Transport and

Equipment

Consortium leader

The continuity of the project depends on the country capacity to generate the statistics and indicators to analyse themselves their transport and logistics system.

Supporting Public- Private Partnership (PPP) Execution in EgyptA. Basic Project Information

Activity Name: Supporting Public- Private Partnership (PPP) Execution in EgyptCountry Name: Egypt Name of Implementation Support

Agency(ies): European Bank for Reconstruction and Development

Name of ISA Project Leader: Khalid Hamza


Recipient Entity: PPP Central Unit, Ministry of Finance of Egypt, Tower #2 – Ext of Ramsis str. Nasr City, Cairo

Name and Email of Recipient Entity Contact: Atter E. Hannoura, [email protected]

Total Amount Approved by the Transition Fund (US$): USD 2,406,200

Additional Funds Leveraged and Source(s), if any (US$): None

Total Amount Disbursed (Direct and Indirect in US$): None

Steering Committee Approval Date:5/30/2016


Project Closing Date:11/30/2018



Secondary Pillar(s): Enhancing Economic GovernanceCompetitiveness and IntegrationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The Project Objective is to enhance the quality and reliability of public service provision in Egypt. In order to achieve this, the specific objective of this initiative is increase the ability of the Government of Egypt to process and implement private sector participation (“PSP”) in the provision of basic services and therefore to build sustainable capacity within the PPP Central Unit (“PPPCU”) to design, structure and implement PPP projects in the municipal infrastructure sector. The PPPCU will be better prepared to coordinate the PPP program in Egypt and have the capacity and knowledge and skills provide support and assistance to the involved Ministries.Rating for progress towards achievement of objective:



Moderately Unsatisfactory


The ownership of the PPP Unit in Egypt has been under debate since May 2017 within the government with no conclusion so far as to whether it should be transferred to the Ministry of Investment or remain under the Ministry of Finance. With a lack of pipeline projects, the priority of the transfer decision has been delayed. Recently, however, the government has now put up a number of projects for PPP structure preparation and would thus like to continue activities under the PPP unit. The view is that the capacity building of the PPP unit should be continued regardless of where the PPP unit will end up. The next step is to resume the consultant selection process. This is a two stage tender where the expression of interest has already yielded a shortlist of consultants. Terms of Reference has been shared with the PPP Unit management as planned. However, there have been delays on their end in sharing with the shortlisted bidders for final bid submission. This is mainly because the head of the PPP Unit was assigned at the end of last year to manage one of the presidential mega-projects and has been performing his role as PPP head in parallel. As

a result, many of the initiatives with the PPP Unit have been put on hold/delayed. As such, EBRD expects that the envisaged timeline for this assignment will roll over to 2019 and is therefore planning to request an extension to the Project closing date till end of 2019.



To share the Terms of Reference with shortlisted bidders for final bid submission

EBRD 30 Sept 2018

Selection of winning bidder PPPCU 31January 2019

Preparation of training plan for key staff of the PPPCU in the fields of PPP preparation and project finance

Winning bidder 28 February 2019

Conducting project finance training Winning bidder 31 March 2019

On-the job interventions Winning bidder Ongoing

C. Implementation Status of Components Component 1: This shall include training of key staff at the PPPCU, aimed at developing the Unit’s administrative and technical capacity throughout the project development and implementation cycle (e.g. project identification, preparation of feasibility studies, project designs, tender documents, procurement, project monitoring and reporting, etc.). The Consultant shall prepare a training plan for key staff of the PPPCU in the fields of PPP preparation and project finance which should include primarily on-the-job interventions with minimal discrete training. Project finance training will form a core part of this component to ensure that staff is able to set-up accurate, reliable, appropriate, flexible, structured and transparent models for project approval as well as to present to potential co-investors or lenders. The Unit will be in a position to work with experts in the field and determine whether a financial expert would be beneficial as part of the permanent staff in the PPPCU. Delegates will be able to understand financials to the level necessary to enable them to work on projects,, highlighting risks that could affect the project, including affordability, and its bankability as well as the design and management of fair contracts. Any training must be participatory and should use relevant practical materials along with illustrative and information case studies and examples. The Programme shall be extremely practical and allow delegates to work on examples of different models within a live project context.Previous Rating: Not Applicable

Current Rating: Not Applicable Cost (US$): 600,000

Sub-component 1.1: Capacity Building and training at the PPPCU will focus on the ability of the Unit to manage the processes of undertaking a PPP from inception to financial close, whether the managing partner is a line ministry or the Unit itself. This will involve the day to day support of the PPPCU in decision making, project planning and coordination, PPP processing, financial modelling and will result in considerable knowledge transfer.Status of Implementation: Not yet startedSub-component 1.2: Capacity Building at the satellite units in the line ministries to ensure that the information flow, regulations, processes and procedures are understood and adhered to at all points of the process. The sub-component will train relevant staff in the satellite units in the line ministries alongside the PPPCU and individually.Status of Implementation: Not yet started

Component 2: The PPPCU should be confident in managing technical, financial, legal and

social/environmental expertise to foster the design and implementation of sound and bankable PPP structures in the municipal infrastructure sector in Egypt. Additionally, the Consultant will enable transfer of knowledge to the staff of the PPPCU and increase the cooperation and coordination between relevant stakeholders in the municipal services sector in Egypt, including the PPPCU, the Ministry of Finance, Ministry of International Cooperation (“MoIC”), utility companies and other relevant parties. The knowledge, know-how, procedures and methodologies developed during this assignment will contribute to the long term efficiency and sustainability of the PPPCU.Previous Rating: Not Applicable

Current Rating: Not Applicable Cost (US$): 1,400,000

Sub-component 2.1: Assist the PPPCU in managing the preparation and assessment of technical, financial, legal and social/environmental due diligence including: the preparation, review and update of feasibility studies and/or technical designs as required; financial analysis; ensuring project’s compliance with the national law and national environmental, social, health and safety, labor and public consultation requirements. It should be noted that the Consultant will assist the PPPCU to organize, commission and assess all PPP project preparation, but that project specific studies will be carried out by third-parties. The Consultants should work with the PPPCU to determine a small number of projects where PSP is sought and use these as training examples, pilot projects, to gain experience and exposure of such processes.Status of Implementation: Not yet startedSub-component 2.2: In relation to the PPP management, the PPPCU should be able to be aware of and coordinate their activities in relation to the capital investment (CAPEX) programme in the relevant sectors. The CAPEX programme is financed by different IFIs in the municipal services sector, and the PPPCU is responsible for including the definition of workflows and data information processing for all PPP business processes.Status of Implementation: Not yet startedSub-component 2.3: The launch and management of PSP tenders, including prequalification of tenderers, attendance to project meetings, conduct evaluation of applications and tenders, should be able to be confidently managed by the PPPCU. Assist selecting and nominating a preferred tenderer and in negotiating and signing a project agreement and any other legal documentation related to the project. The evaluation will help prepare the initial set of ‘value for money’ analyses taking into account capital and operating costs, project risks and the level of urban sector investment, with a view toward transferring this tool to the PPPCU. The Consultant will also ensure that the PPPCU are able to:

- Ensure that all critical contractual conditions are included in the legal documentation in accordance with best-practice infrastructure concessions, such as termination clauses, lenders’ step-in rights and tariff policies.

- Ensure that the tendering procedure and award of the PPP Contract is in line with and best international practices as well as local legislation.

- In respect to evaluation of bids, devise a proper process for the evaluation of tenders, including both the criteria and the process to be used. The process and the evaluation criteria (including any weighting) shall be described in the tender documents.

The above mentioned activities will be carried out by the PPPCU with the support of the Consultant on a number of pilot projects. Close attention will be paid by the Consultants to the progress and an iterative process adopted to ensure that lessons learnt are captured and taken into account.Status of Implementation: Not yet started

Component 3: The Consultant shall support the PPPCU prepare standard PPP guidelines and methodologies, including project documents, contracts and PPP policies and assist in identifying a pipeline of projects that can be implemented with PPP, in line with Egypt’s existing strategic plan. For projects that have been identified as potential investments in the sector, the Consultant will provide support to the PPPCU, for designing and structuring the projects and overseeing a PPP tendering process.

For the duration of the intervention, the Consultant shall support the PPPCU to monitor and evaluate ongoing projects and to take into account lessons learnt from these activities in project design going forward. Within the guidelines, the Consultant should include a section on lessons learnt and monitoring and evaluation techniques

to ensure that the PPPCU can sustain active control over PPP projects and provide support to project counterparts and the satellite units.

To further ensure the sustainability of the sector, the Consultants will work with the PPPCU to determine how to build the capacity of firms to partake in PPPs. This component will propose and implement methods of communication to potential private sector partners on specific project opportunities but also educating partners on the mandate and processes of PSP and levels of participation. Previous Rating: Not Applicable

Current Rating: Not Applicable Cost (US$): 270,000

Status of Implementation: Not yet started


(US$)

(x)

Direct Cost for ISA-Execution

(US$)(y)

Total (US$)


2,270,000 0 2,270,000

Amount Received from Trustee (b): 0 0 0Actual Amount Disbursed (c): 0 0 0

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)

Year Jan-June Jul-Dec Total by Year End2016 - - -2017 -2018 400,000 400,0002019 500,000 500,000 1,000,0002020 470,000 400,000 870,000


0 136,200 136,200




MeasureBaseline

Cumulative Target Values**Frequency




definition etc.)YR 1

2018 A 2019 F 2020 F

Indicator One:PPP Projects reaching financial close

Project signings

0 0 1 3 Semi-annually

Project documentation

Consultants reporting to PPPCU/EBRD

Project signings

Indicator Two:Processing time of PPPs reduced

Months reduction from inception to financial close


PPPCU data Consultants reporting to PPPCU/EBRD

Months reduction from inception to financial close

Indicator Three:Quality of contracts signed improved

Consultants review


Consultants reports


Consultants review

Indicator Four:Government bodies and institutions including Local governments supported

Number of Units receiving support


Consultants reports


Number of Units receiving support


Intermediate Result (Component One):

Intermediate Result indicator One: Staff of the PPPCU complete training courses

Certification of training


Consultants and PPPCU reports


Consultants to devise certification methodology

Intermediate Result indicator Two: Staff of the satellite units complete training courses

Certification of training




Consultants to devise certification methodology

Intermediate Result (Component Two):

Intermediate Result indicator One: Management of project preparation

Analysis of due diligence




Ability to decide on structure following analysis

Intermediate Result indicator Two: Management of the tender process

Efficient and accurate processing




Project to reach financial close

Intermediate Result (Component Three):

Intermediate Result indicator One: Guidelines approved by relevant counterparts and endorsed

Ministerial approval

0 0 1 1 End year one complete

Ministerial endorsement

PPPCU to EBRD Guidelines for PPP management

Regional Integration through Trade and Transport Corridors: Egypt Activities

A. Basic Project InformationActivity Name: Regional Integration through Trade and Transport Corridors (TRANSTRAC) – Egypt ActivitiesCountry Name: Egypt

Name of Implementation Support Agency(ies):European Investment Bank

Name of ISA Project Leader: Mr. Stephen O’DRISCOLL


Recipient Entity: Ministry of Transport

Name and Email of Recipient Entity Contact:Amb. Mahmoud ALLAM [email protected]

Total Amount Approved by the Transition Fund (US$): 4,230,000.00 (incl. 230,000 US$ indirect costs)

Additional Funds Leveraged and Source(s), if any (US$): 0.00

Total Amount Disbursed (Direct and Indirect in US$): 301,726 EUR (Direct Costs) + 230,000 US$ (Indirect costs) = 578,825 US$ (@ 1 USD = 0.8649 EUR)


Project Implementation Start Date:(CA Signature date 27/1/2016)10/31/2014




Secondary Pillar(s):Inclusive Development and Job CreationCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of TRANSTRAC is to promote the reduction of trade and transport barriers along the priority trade corridors of Egypt.Rating for progress towards achievement of objective:


Rating for overall implementation progress: Moderately SatisfactoryBrief Summary of Project Implementation Status:

- Egypt signed a restructuring note and second addendum to the TRANSTRAC cooperation agreement in May 2017 to reallocate funds of cancelled projects to new priority projects within the same scope of the respective component. Since the signature of the aforementioned agreement the following steps have been taken:

o Formalization of Terms of Reference for the Technical Assistance for the establishment of an Investment Unit for the Ministry of Transport - to be tendered on framework agreement Q3 2018;

o Completion of tendering and launch of the Technical Assistance for the Feasibility Study of a Multipurpose Terminal and Value Added Logistics Center for the Expansion of Alexandria Port - Kick off meeting held June 2018;

o Completion/formalization of Terms of Reference for the Technical Assistance of the Feasibility Study of Freight and Passenger Railway Links of Rubeiki -10th of Ramadan - Belbeis - To be tendered Q4 2018;

o Completion/Formalization of Terms of Reference for the Technical Assistance for the Feasibility Study and Master Plan of the 10th of Ramadan Dry Port - To be tendered Q3 2018;

o Finalization of the East Port Said Technical Assistance to the Feasibility Study of a Value Added Logistics Center in July 2018. Progress of the Demand Assessment of the



Connectivity of Suez Canal Economic Zone with Greater Cairo - Study to be finalized by October 2018 .

-- The EIB is expected to request an extension to the implementation period in order to cater for the

latest developments in the portfolio of activities.

C. Implementation Status of Components Component 1: Institutional and capacity building for regional trade framework improvement (region-wide component)Previous Rating: Moderately Satisfactory


Cost (US$): 600,000

Sub-component 1.1: TA to transportation (region-wide component) Status of Implementation: The Terms of References for this assignment are being drafted in agreement with the Ministry and are currently being reviewed.Sub-component 1.2: Preparation of road safety assessment and action plan (region-wide component)Status of Implementation: The program was successfully completed in November 2016.

Component 2: Preparatory studies for infrastructure improvements of the priority corridorsPrevious Rating: Unsatisfactory Current Rating: Satisfactory Cost (US$): 3,000,000Sub-component 2.1: Preparation of the Suez-Port Said corridor (EIB TA Ref: TA 2016059 EG DTF and TA 2016060 EG DTF)Status of Implementation:

- The studies have progressed well despite initial delays in data collection. The feasibility study for the logistics zone in East Port Saïd (TA2016059 EG DTF) will be finalized in July 2018. The transport demand study (TA2016060 EG DTF) contract has been extended until October 2018 and will be finalized by 4th Quarter 2018.

Sub-component 2.2: Preparation of selected activities for the International Transport corridor Status of Implementation: Activities restructured and signed in respective addendum restructured (cf. separate restructuring note).

- Egypt is currently implementing its plan to develop intermodal corridors (e.g. the Alexandria-Ain Sokhna multimodal corridor, the East-Port Said to Cairo corridor) as well as intermodal platforms and logistics zones (i.e. in particular at 6th of October, 10th of Ramadan and East Port Said). EIB, in close cooperation with the Suez Canal Economic Zone Authority and the General Authority for Land and Dry Ports (GALDP), is currently in the process of scoping an advisory programme mainly related to the development of these corridors including its accesses taking into consideration recent initiatives at the MOT. The TA will concentrate on infrastructure development, including associated studies and elements of institutional set-up and reforms, as well as human resources development to match the required demand. Two TA’s have already been launched in March and April 2017.

- The contract for the Feasibility Study for a Value Added Logistics Centre (VALC) and a Multipurpose Terminal (MPT) at the Port of Alexandria was signed in May 2018 and the kick-off meeting took place in June in Luxembourg. A first mission by the consultant will take place first half of July 2018

- Restructuring noted listed the below projects:o Dry port 10th of Ramadan (EIB TA Ref: TA 2018014 EG DTF). Draft Terms of References

have been prepared and are currently being reviewed. o Logistics platform 6th October (EIB TA Ref: TA 2018015 EG DTF) is currently on hold

because EBRD prepared a feasibility study for the dry port. This study foresees the development of the logistics platform as a second phase. The first phase (dry port) is currently being tendered under a PPP. EIB is awaiting more clarity on the development of the

dry port before planning any support to the development of the Logistics platform. o Study for the detailed technical design of the Rubeiki – 10th of Ramadan – Belbeis Rail link.

(EIB TA Ref: TA 2018016 and 017 EG DTF). The terms of reference are being drafted by EIB and should be presented to the promoter during Q3 2018.

Sub-component 2.3: TA for preparation of upgrading and expansion of Border crossing facilities SatisfactoryStatus of Implementation: As earlier reported, the Salloum border Crossing project was cancelled.

Component 3: Project Preparation, Management, Coordination, Monitoring and EvaluationPrevious Rating: Not Applicable Current Rating: Moderately

UnsatisfactoryCost (US$): 400,000

Status of Implementation: Activity was restructured. MOT discussed with EIB that part of this fund is directed to component 1.1. And the TORs being reviewed for tendering is now expected 4th Quarter 2018.

D. Disbursements of Transition Fund Funds for Direct Project Activities (US$)Country-Execution

(US$)(x)


(y)Total (US$)

Approved Amount for Direct Project Activities (a): 700,000 3,300,000 4,000,000

Amount Received from Trustee (b): 850,000 500,000 1,350,000

Actual Amount Disbursed (c): 348,856.51 230,000 578,825

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2018 - 360,000 430,0002019 300,000 400,000 700,0002020 500,000 500,000 1,000,000


230,000 0 230,000


Project Development Objective (PDO): The objective of the proposed project is to promote reduction of trade and transport barriers along the priority trade corridors of the country and in related border crossings.

PDO Level Results Indicators* Unit of Measure Baseline




Collection


etc.)

Jan. 2016 – Dec. 2016

A

Jan. 2017 – Dec. 2017

A

Jan. 2018 – Dec. 2018

F

Indicator One:About 20 transport road safety auditors trained

# of participants 0 20 20 20 Bi-

annually Reports Focal Points

Quantitative – number of participants who have successfully completed the training

Indicator Two:Studies completed: (i) 2 studies for the Suez corridor; (ii) pre-feasibility study for border crossing completed; (iii) road safety action plan completed.

Percentage progress and #

of studies

0

0

25%

1

75%

3

100%

4

Bi-annually

ReportsStudies

produced

Focal Points with EIB input

Number of studies completed and approved


Intermediate Result (Component One): Institutional and capacity building for regional trade frameworkSub-component A.2: Road safety assessment and action plan

Intermediate Result indicator One:About 20 transport road safety auditors trained

# of participants 0 20 20 20 Bi-

annually Reports Focal Points

Qualitative- number of participants who have successfully completed the training.

Intermediate Result indicator : Road safety assessment and action plan completed

Percentage progress and action plan completed

0 90% 100% 100% 3 -months Reports Focal Points with EIB input

Quality study and action plan

produced and approved

Intermediate Result (Component Two): Preparatory studies for infrastructure improvements of the priority corridorsSub-component B.1: Preparation of the Suez Canal corridorSub-component B.2: Preparation of selected activities of Intermodal corridor Sub-component B.3: Preparation of upgrading and expansion of border crossing facilities

Intermediate Result indicator One:

Percentage progress and

0 25% 50% 100% 3 -months Reports Focal Points with EIB input Quality studies

Logistics zone feasibility study and Port Said-Cairo Corridor Traffic Study

studies completed produced and

approvedIntermediate Result indicator Two: Pre-feasibility study of the expansion and development of Salloum land port (border with Libya)9

Percentage progress and

study completed

0 0% 0% 50% 3 -months Reports Focal Points with EIB input

Quality study produced and

approved

9 Was cancelled and replaced by TA2017163 EG DTF. Actual reporting is on TA2017163 EG DTF

Leveraging Regulatory Reforms to Advance Financial Inclusion in Egypt

A. Basic Project InformationActivity Name: Leveraging Regulatory Reforms to Advance Financial Inclusion in EgyptCountry Name: Egypt Name of Implementation Support

Agency(ies): International Finance CorporationName of ISA Project Leader: Nahla El Okdah


Recipient Entity: N/A Name and Email of Recipient Entity Contact: N/ATotal Amount Approved by the Transition Fund (US$): 950,000

Additional Funds Leveraged and Source(s), if any (US$): 167000 (client cost-share)

Total Amount Disbursed (Direct and Indirect in US$): 411,404

Steering Committee Approval Date: 18 May 2015

Project Implementation Start Date:August 1, 2015

Project Closing Date:30 June 2020



Inclusive Development and Job Creation


Investing in Sustainable Growth

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objective of this project is to leverage changes in microfinance regulations in Egypt to support key microfinance service providers, prepare them for, and transform them into for-profit entities and further advance financial inclusion. The project will work with 3 MFIs to help them respond to the changing regulatory framework and also include related KM and client protection activities.Rating for progress towards achievement of objective:

Satisfactory


Satisfactory

Brief Summary of Project Implementation Status: During this reporting period, IFC has commenced its second engagement with Al Tadamun’s, which includes a Risk Management component. A kick-off mission for the business continuity planning assignment took place and implementation will continue during the next reporting period. In addition, IFC has disseminated its regional paper on Transformation of MFIs in the Arab World, which is expected to help MFIs in the region including Egypt, better understand the issues that they might face if they choose to transform and help them to make a better-informed decision. In addition, IFC has conducted a preliminary Smart Assessment for DBACD under the Responsible Finance Component. DBACD has expressed interest in pursuing certification and so IFC has conducted a follow-up mission to assess DBACD’s progress in terms of implementing the initial recommendations and is closely following up to prepare them for certification.



Gather lessons learned from previous Smart Assessments and summarize in a paper

IFC 12/31/2018

Support MFIs to prepare for Smart Certification IFC (and DBACD)

12/31/2018

Continue work with Al Tadamun on Business Continuity – Risk, Product Development, and Institutional Strengthening

IFC (and Al Tadamun)

12/31/2018

C. Implementation Status of Components Component 1: Risk Management

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 490,000 (this amount represents direct costs funded only through the Transition Fund).Projects covered include Al Tadamun 1 ($190,000) and Al Tadamun 2 ($300,000).

Sub-component 1.1: Assisting MFIs in Egypt to develop or strengthen the risk management functions.


After successful closure of the first project with Al Tadamun, IFC has begun implementation of a new project / phase of work. The agreement, which was signed in November 2017, includes a follow-on Risk component that tackles Financial Risk, Business Continuity and Internal Control. During this reporting period, IFC has conducted an evaluation of the existing risk function to determine readiness to move onto phase 2. In addition, the business continuity plan component has begun, with the kick-off mission taking place in June. The implementation for both components is expected to start during the next reporting period.

Component 2: Transformation Preparedness, Transformation and Establishment of Greenfields

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 240,000(this amount represents direct costs funded only through the Transition Fund).Projects covered include DBACD 1 ($220,000) and a short engagement with Fawry ($20,000)

Sub-component 2.1: Assisting MFIs to prepare for transformation


The project with DBACD funded by the Transition Fund closed on June 30, 2017. The initial project had a transformation component, under which an assessment was conducted to help DBACD decide whether they would like to proceed with transformation or not. Given the success of the previous project, IFC and DBACD designed and approved a new project that’s focused on (i) strengthening DBACD’s lending technology to upscale and better serve clients who need larger loan sizes; (ii) building resilience by further strengthening its risk and internal audit functions, (iii) enhancing institutional capacity in key areas that will allow for nationwide expansion; and (iv) preparing for a potential transformation into a for-profit company. As agreed during the last reporting period, this project is now being funded by a different source given that the initial closing date of the Transition Fund was sooner than the project end date.

Component 3: Consumer Protection

Previous Rating: Satisfactory Current Rating: Moderately Satisfactory

Cost (US$): 110,000 (this amount represents direct costs funded only through the Transition Fund).

Sub-component 3.1: Assisting MFIs obtain the Smart Campaign Certification


The aim of this regional component is to assist MFIs in Egypt demonstrating the highest levels of client protection by assessing MFIs, supporting them as they upgrade their client protection capacity, and eventually obtaining the internationally recognized Smart Campaign certification. During this reporting period, IFC has continued to follow up closely with DBACD – the first Egyptian MFI to undertake a Smart Assessment – on suggestions for implementing key recommendations for improvement in client protection (many of which have already been done). DBACD has expressed interest to pursue certification in the short term. IFC is also in discussions with Al Tadamun in Egypt on potentially conducting a preliminary Smart Assessment in the coming period.

Component 4: Knowledge Management Previous Rating: Moderately Satisfactory


Cost (US$): 110,000 (this amount represents direct costs funded only through the Transition Fund).

Sub-component 4.1: Sector-wide workshops and publications


During the period, IFC (in conjunction with Sanabel, the regional microfinance network) released the research paper on Transformation of MFIs in the Arab World. The paper includes both the findings from a survey administered by Sanabel and sound practice / case studies from other regions. This topic is particularly relevant in light of recent regulatory changes in Egypt and Jordan that will now allow many NGO MFIs to transform into non-bank financial institutions.


(US$)Direct Cost for ISA-

Execution (US$)Total (US$)

Approved Amount for Direct Project ISA Activities (a):

0 902,500 902,500


0 902,500 902,500


0 391,404 391,404


Year Jan-June Jul-Dec Total by Year End2015 N/A 55,000 55,0002016 50,000 100,000 205,0002017 95,000 100,000 400,0002018 150,000 150,000 700,0002019 105,000 100,000 905,0002020 45,000 950,000

F. Disbursements of Funds for Indirect Costs (US$)Disbursed Available Total

20,000 27,500 47,500

G. Results Framework and Monitoring*


PDO Level Results Indicators



Data Source/ Responsibility for Data

Collection


etc.)Jul 2015-Jun

2016 (A)*Jul 2016-Jun

2017 (A)Jul 2017-Jun

2018 (A) YR 4 (F)10 YR5 Methodology

Businesses received business support/advisory services or financial investment

Number 0 2 3 3 Annual IFC IFC


Intermediate Result: Risk Management and Transformation, Transformation Preparedness and Establishment of Greenfields

Business loans provided or guaranteed Number N/A

268,687 554,741 554,741+ 179,551 (Tadamun)= 734,292

Annual MFIs IFC

Value of micro loans disbursed USD N/A

92,085,364 146,477,662

*Lower due to EGP-devaluation

146,477,662 + 41,781,661 (Tadamun)= 188,259,323


Annual MFIs IFC

Number of micro loans outstanding (non-cumulative)

Number

307,308 216,221 253,202 146,759 11+ 156,651 (Tadamun)= 303,410

Annual MFIs IFC

10 IFC captures results after project closure11 Last reported loans outstanding figure for DBACD 1.

Outstanding microfinance loan portfolio of supported institutions (non-cumulative)

USD

55,337,300 55,526,294 33,424,484*


22,665,612 12+ 23,328,507 (Tadamun)= 56,752,991


Annual MFIs IFC

Intermediate Result: Facilitating Knowledge-Sharing Across the Microfinance Sector Number of workshops, training events, seminars and conferences

Number 0 113 314 3 Annual IFC IFC

12 Last reported value of loans outstanding figure for DBACD 1.13 Regional client protection workshop (shared with Jordan)14 Includes Regional Risk Roundtable (shared with Jordan) in Nov 2016, and Client protection workshop with EFSA (Egypt)

Enhancing the Investment Climate in Egypt, through Equal Access and Simplified Environment (EASE) for Investment and Fostered

Investment Policy, Legal and Institutional Framework

A. Basic Project InformationActivity Name: Enhancing the Investment Climate in Egypt, through Equal Access and Simplified Environment for Investment (EASE) and Fostered Investment Policy, Legal and Institutional FrameworkCountry Name: Egypt Name of Implementation Support Agency(ies):

World Bank Group and OECDName of ISA Project Leader:OECD: Nicolas Pinaud/Marie-Estelle ReyWB: Andrei Mikhnev/ Maha Hussein

Email of ISA Project Leader:[email protected]; [email protected]

[email protected]; [email protected]

Recipient Entity: Name and Email of Recipient Entity Contact Ministry of Investment and International cooperation (MoIIC)

Name: Dina SafwatEmail: [email protected]

General Authority for Investment & Free Zones (GAFI)

Name: Mona Zobaa, ChairpersonEmail: [email protected]

Name: Moataz Yeken, PIU Head Email: [email protected]

Industrial Development Authority (IDA) Name: Eng. Ahmed Abdel Razek, Chairman Email: [email protected]

Name: Dr. Mohamed Mostafa, PIU HeadEmail: [email protected]

Egyptian Regulatory Reform and Development Activity (ERRADA)

Name: Tarek Hamza, Executive DirectorEmail: [email protected]

Name: Mohamed EssaEmail: [email protected]

Total Amount Approved by the Transition Fund (US$):7,043,400


Total Amount Disbursed (Direct and Indirect in US$): WBG: 3,926,349OECD: 1,276,539TOTAL: 5,202,888




Pillar(s) to which Activity Primary Investing in Sustainable Growth











Responds (as per the proposal approved by the Steering Committee)

Pillar:

Secondary Pillar(s):

Inclusive Development and Job CreationEnhancing Economic GovernanceCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: To improve the regulatory environment for investors through simplified industrial licensing and transparent land allocation processes and to support the Government of Egypt in designing a new investment policy and legal framework, and in strengthening its international investment regime.Rating for progress towards achievement of objective:

Satisfactory


Satisfactory


The OECD and the World Bank Group (WBG) requested a no cost 12-month extension for the project which was approved on 23 January 2018. The closing date is now 30 June 2019.

The OECD will proceed with restructuring the OECD-executed project components in consultation with the Egyptian authorities. A memorandum will be submitted to the MENA TF Steering Committee to that effect for approval by September 2018. The restructuring consists of reorganizing sub-components 4.1 and 4.2 into one component to respond to the ministerial request to conduct an OECD Investment Policy Review (IPR) of Egypt.

The restructuring of the WBG-supported component was limited to the project closing date extension to allow full implementation of planned reforms under new legislation; and to updating the results to reflect extended time for the project implementation.

OECD-Executed Components:

The OECD is now fully engaged with the preparation of the OECD Investment Policy Review (IPR) of Egypt. This activity was requested by previous Minister of Investment and reiterated by the actual Minister of Investment and International Cooperation. The process was officially launched in October 2017. A review mission took place on April 28-May 4 2018 to undertake capacity-building on FDI statistics, fact-finding in preparation of the drafting of the Investment Policy Review of Egypt, meetings and policy dialogue with high-level officials. This review mission was followed up by a second fact-finding mission, held on June 25 to 28, 2018 which focused on the Responsible Business Component of the IPR. Given the reorientation of sub-components 4.1 and 4.2 into a more ambitious, full-fledged IPR, it was decided to proceed with a project restructuring to adjust project activities accordingly.

The work on FDI statistics is near to completion. A training workshop on FDI statistics was organized on April 28, 2018at GAFI. The FDI report was then presented to the special counsellor of the Minister of Investment and International Cooperation, to the Chair of GAFI and their respective teams, on April 29, 2018. The report is currently being finalized and updated after a last round of comments shared by the Intelligence FDI Unit of GAFI to the OECD team following the mission. This cooperation has had a clear impact

on the cooperation between the statistical team of GAFI and the OECD, as Egyptian officers are now fully involved and actively participating in the work OECD Working Group on International Investment Statistics in Paris.

In the area of investment disputes (sub-component 4.4), a workshop on dispute prevention and management was organized in Cairo on June 28, 2018 in cooperation with and hosted by the Cairo Regional Centre for International Commercial Arbitration (CRCICA). 70 participants from the Ministry of Justice, GAFI, the Ministry of Investment and International Cooperation, the State Council, sectoral ministries, private sector and academia attended the workshop. A background paper on the “role of the Ministerial Committees in preventing, managing and settling investment disputes in Egypt” was presented. This workshop which followed another one in March 2016 showed that Egypt gained positive experience in dealing with investment disputes and extensively discussed the institutional framework set up by the authorities to manage and prevent disputes.

During the reporting period, the OECD maintained close contacts with high-level Egyptian authorities. H.E. Dr. Sahr Nasr, Minister of Investment and International Cooperation, held meetings at the OECD in April and June 2018 (including a meeting with the OECD Secretary-General). She welcomed the advancement of the IPR and follows the progress made on these streams of the project.

During the reporting period, the Ministry of Investment and GAFI remained actively engaged in other OECD investment-related activities which have strong synergies with the present project: (i) the regional EU-OECD Programme on Promoting Investment in the Mediterranean (participation of Egyptian representatives in the regional seminars on the institutional transformation of investment promotion agencies in Rabat on January 30-31, 2018, on global value chains and business linkages in Beirut in April 2018, and on investment disputes in Cairo on June 26-27, 2018), and (ii) the project on Supporting the development of the Suez Canal Economic Zone (second phase to be launched).

World Bank Group Supported Components:

GAFI- The Business Process Re-engineering consultants appointed by GAFI finalized the assessment and proposed reform for the “business establishment and licenses procedures”. A Change Management Consultant was appointed to implement the new suggested reform. GAFI also successfully launched the first phase of the investment map. Additionally, GAFI finalized the procurement of the active components. It was reported that GAFI core network capacity and stability has significantly increased since the full installment in February 2018.

IDA- IDA finalized the process mapping for industrial licensing, land allocation, construction permits and are currently working on the processes for industrial developer. IDA finalized the automation of industrial licensing and registry. IDA also launched the first industrial investment map that is planned to be included under the GAFI investment map in the future. Additionally, IDA created and launched their portal in May 2018.

ERRADA- ERRADA has conducted various legislative reviews, analysis and undertook several public-private consultations.

Key Issues – in order to implement the main objective of the EASE project in providing a transparent and simplified environment for investment, three key issues are identified

that require more focus in the coming period:1- Enhancing cooperation between GAFI and IDA:

Harmonize the relevant content of both the Investment and Industrial maps, to provide investors with a unified interface and better presentation of investment opportunities.

Ensure the interoperability between GAFI and IDA systems related to processing the investment opportunities.

Unify the licensing data presented on the three websites to ensure a smooth and transparent investors’ access to information.

2- Ensuring the sustainability of reforms after the project completion:Therefore, the project needs to:

Allow flexibility of the newly automated systems to make it possible to fine-tune them in the future to incorporate possible new amendments to the legislation.

Sustain the capacity of the teams supporting the three different components. Capacity building cannot only be limited to technical training, but also needs to include project management skills to ensure a well-managed system to carry the reform process forward. Furthermore, additional training is needed for the branches of IDA and GAFI as the plan is to expand the new system to all branches across Egypt.

Institutionalize assigned responsibilities over introduced functions currently with project teams with the respective departments of relevant Ministries. Particularly, the responsibilities over the maintenance and updating of investment information on the introduced online platforms.

3- The scope of the land allocation work reform:There is a need to widen the support scope of the land allocation system reform. In order to create an effective and sustainable online land allocation system there has to be an efficient inventory land management system that compiles an inventory of the industrial land under IDA’s jurisdiction.


Actions to be Taken Responsible Party Expected Date of Delivery

OECD Investment Policy Review OECD/ MIIC / GAFI October 2019: presentation and discussion of first draft in CairoMarch 2019: presentation of the report to the OECD Investment CommitteeJune 2019: following last iteration and round of comments by Egyptian authorities, official launch of the IPR in Cairo

OECD FDI Statistics Review OECD/ GAFI August 2018: delivery of final report following update and additional comments shared by Egyptian authorities

OECD workshop on international investment agreements

OECD/MIIC/GAFI Fall 2018

Completing the phase 2 of the Investment Map GAFI September 2018Upload all licensing requirements on GAFI portal in coordination with IDA and GAFI

WBG/GAFI December 2018

Implement business process re-engineering recommendations on business establishment and license

GAFI October 2018

The operation of the customer relationship management platform in GAFI main branch

GAFI October 2018

E-signature implementation for various Investment Service Center services GAFI December 2018 Land allocation inventory IDA December 2018 Implementation of the second and third phases of automation (Construction Permits & Land allocation)

IDA July 2018

User training at the branches for the second and third phases of automation. IDA August 2018

Process re-engineering for the industrial developer process IDA September 2018Completion of drafting the Allocation Land Section in the Executive Regulation for the IDA Law enacted in June 2018

ERRADA July 2018

Legal review of the reformed industrial developer process ERRADA July 2018 Conducting legal study on the impact of the issuance of the IDA Law on the current enforceable laws relating to investors and the Industrial Sector.

ERRADA October 2018

Conducting three consultation sessions on the following topics:

a. Industrial land allocation. b. Industrial developer. c. ERRADA Informational

Portal.

ERRADA December 2018

Conducting a workshop on the State Counsel role in the legislation issuance and review criteria.

ERRADA September 2018

Conducting workshops on the legislation economic impact ERRADA October 2018

C. Implementation Status of Components Component 1: Facilitating accessible and transparent investor services (GAFI)

WBG-supported component: Business Process Reengineering:The work on the assessment and re-engineering of the simplification of business entry procedures is half way through with following outputs developed:

The recommendations for service delivery improvement, improving the commercial registry services and regulatory adaptation and improvement;

Licensing Services Improvement Report, which includes a licensing setup in Egypt, recommendations for reorganizing the licensing processes and tools for implementation by GAFI;

Auxiliary Services Roadmap, which is a blueprint for improving three key groups of auxiliary services available through GAFI’s Investment Service Center (ISC);

Areas for improvement of GAFI’s IT systems, data structure and related IT elements and recommendations for improving services offered in its ISC offices through IT.

A Change Management Consultant started working on ensuring the effective deployment of the reformed processes to GAFI.Customer Satisfaction:

Two new complaints’ mechanisms were added to the ISC to accommodate the needs of all customers.

A new performance assessment and reporting system were introduced, allowing management to receive feedback on ISC’s performance in terms of customer satisfaction on the provided services in general and on employees’ performance related to companies’ establishment.

Between January 20, 2018 and April 3, 2018, a total of 1,228 customers were asked about their opinion concerning services they have received at GAFI’s ISC. Results show that 75% were generally satisfied with the services (establishment and amendment services, information center, external supporting governmental entities, etc.), 14% were neutral and only 11% were dissatisfied with the services.

Capacity Building: The Cairo ISC employees attended training on the new processes and automation

process. Staff from various ISC attended language, communication and 'leading by coaching'

courses. The Human resource development program is still ongoing and will include additionally

language courses for staff, who directly deal with customers in 2018 and 2019. E-signature:

The company establishment/incorporation process has been automated connecting all involved governmental entities to collaborate in the digital process.

The E-signature solution has been developed and launched on May 24, 2018. The investor can now apply and submit all the required documents online and pay through GAFI’s e-payment system. Additionally, the investor still has the option to visit GAFI and complete the process manually. At a later stage, e-signature will be standardized for all services offered through GAFI.

GAFI Investment Map: The map is designed to showcase key investment opportunities, both by sector and

location, through an interactive interface, which can be navigated using maps and classical menus. The technical implementation of the map requires three phases. The project launched the first phase on February 21, 2018, which encompasses the development of the portal and the definition of the data structure. All governmental bodies have provided their information to be published on the investment map, including Mega projects and success stories. The project is currently in the second phase of implementation focusing on the development of the back office and investor feedback.

ICT Upgrade: Active components, which will upgrade GAFI’s core network capacity, increase the

network stability and help GAFI connect with its branches and the data center have been procured and installed in May 2018.


Current Rating: Satisfactory Cost (US$): 2,250,000.00

Sub-component 1.1: Develop and Implement Online System for Investor Servicing at GAFI

Status of Implementation: In progressSub-component 1.2: GAFI Capacity Building and ICT Upgrading

Status of Implementation: In progress Sub-component 1.3: Project Management

Status of Implementation: Completed

Component 2: Industrial Sector Regulatory Reform (IDA)

WBG-supported component: Three main IDA business processes were reengineered, namely: i) industrial licensing, ii)

issuing construction permits, and iii) recently finalized the Land Allocation processes, which included 11 sub-processes.

IDA has established the timelines of each service in line with the law and updated the requirements in the automation system, where each process is clustered into small tasks, each task is controlled by its own timer.

A legal review for the newly reformed processes to ensure the legal verification of the new streamlined processes was completed.

The technical selection of accreditation offices has been finalized. Formalities for signing up with the selected offices should be done before the end of June 30, 2018.

The Investor Industrial Guide has been technically approved by IDA and legally reviewed by ERRADA. The industrial activities linkage between Main Industrial Activities (ISIC 4 standard), Sub Activities (ISIC 4 standard) & Related Products (HS standard) will be announced by end of May 2018.

The project finalized the business model for automating the industrial licensing and registry processes, which went live on May 10, 2018. The work continues on the second phase, which is the construction processes permits automation.

Training programs were developed with the objective of raising awareness on the new processes. Nine training programs were implemented counting more than 2,950 training hours.


Current Rating: Satisfactory Cost (US$): 2,250,000.00

Sub-component 2.1: Process re-engineering and automation of industrial licensing

Status of Implementation: In progress Sub-component 2.2: Implementing a New Approach to Industrial Land Management and an Online Land Allocation System

Status of Implementation: Preparation stage Sub-component 2.3: IDA Capacity Building and ICT Upgrading

Status of Implementation: In progress

Component 3: Capacity building for managing regulatory reforms (ERRADA)

WBG-supported component:

Legislative and Institutional Analysis: Draft of the land allocation section in the executive regulations of IDA Law. Draft of a legal study related to the industrial registry law and its Executive Regulation

in light of issuing the law on industrial license. Legal review of the land allocation reformed process prepared by IDA consulting firm. Legal review of the Industrial Activities’ Manuals drafted by the IDA.

Information Portal: The Content Management System powering the Informational Portal has been fully built

to manage the database of service summary sheets. All contact details of the administrative authorities have been linked with smart phone protocols.

User registration has been enabled allowing logged in users to have their own lists of bookmarked topics, retrieve search and view logs, and

Participate in public consultation topics. Visual feedback has been added to all portal pages, allowing visitors to report erroneous

information or system glitches with drawing tools that can be used to highlight the source of error. All uploaded data have been modified and extended to accommodate the new features.

Public/Private Consultations: ERRADA conducted a consultation session to get the feedback on the implementation of

the industrial licensing law. The session has been Attended by the IDA Chairman, IDA Vice-Chairman, Minister’s Counsel, ERRADA’s

Executive Director and more than 70 investors. ERRADA conducted a focused group session with investors to collect feedback on the

implementation of the industrial licensing law.Capacity Building:

ERRADA completed a legal drafting workshop for ERRADA employees.



Cost (US$): 500,000.00

Sub-component 3.1: Regulatory reforms proposed

Status of Implementation: In progressSub-component 3.2: Private sector consultation on regulatory reform mechanism applied

Status of Implementation: In progressSub-component 3.3: Capacity building workshops for ERRADA staff


Component 4: Support the Government of Egypt in designing a new investment policy and legal framework and in strengthening its international investment regime

OECD-supported component

The new orientations of OECD activities under Component 4 of the Project are now well established. The process of the preparation of the Investment Policy Review (IPR) is on the right track and is well underway, with two review missions held in April and in June 2018, in addition to the organization of two workshops on FDI statistics and investment disputes.


Current Rating: Satisfactory Cost (US$): 1,484,000

Sub-component 4.1: Investment policy and legal regime


The focus of this sub-component has evolved following the ministerial changes. The main output is now the OECD Investment Policy Review (IPR) of Egypt to be conducted throughout 2018. Some specific activities under sub-component 4.1 have been readjusted, in particular those related to the drafting of the Investment Law, as a new amendment of the Law has been adopted in May 2017.

Investment Policy Review

The OECD received formal requests from the last two ministers of investment to conduct an IPR of Egypt under this project.

After a launching mission in October 2017, the OECD conducted two review missions in April-May and June 2018 to conduct fact-finding meetings, collect information on key policy issues and undertake field visits to one-stop shops (OSS) and free trade zones.

During the missions, the OECD team undertook the following activities:

Hold Multi-stakeholder meetings with GAFI departments, the Ministry of Investment and International Cooperation, MOFA, as well as line ministries and other relevant public bodies to collect data and information for the Investment Policy Review

Conduct interviews with academics, foreign chambers of commerce and private sector members to collect their views on the investment climate, including responsible business conduct and CRS-related topics.

Present and discuss the OECD Report on the Compilation of FDI Statistics in Egypt Present the IPR to a wide range of Ministries and public agencies Visit One-stop-shop offices in Cairo and in Alexandria Field visit to Free Zone of Alexandria - Meeting with the Authority and visit to factories

FDI statistics

The work on FDI statistics is reaching completion.

In May 2018, the OECD organized a capacity-building workshop on FDI statistics with the FDI Intelligence Unit of GAFI. The workshop provided a refresher on the fundamental concepts, definitions, and classifications of FDI statistics; an explanation for the additional series recommended by the Benchmark Definition, such as by ultimate investing country; an overview of key FDI indicators as well as examples of analyses that can be done with FDI statistics; and an introduction to related statistics, such as AMNE statistics.

The key findings and recommendations from the report assessing the FDI statistics being compiled by GAFI were presented to Mr. Shehab, Advisor to H.E. Minister Sahar Nasr.

The report is currently being finalized by the OECD team, based on a last round of comments shared by the GAFI FDI Intelligence Unit and on an updated. A final report will be delivered in July-August 2018.

The following activities will be conducted in the second half of 2018 and in 2019:

IPR: o Drafting of the report after data collection undertaken during review missions

(July-September 2018)

o Delivery of final report on FDI Statistics, following update and additional comments shared by Egyptian authorities (August 2018)

o A multi-stakeholder workshop to present and discuss a first draft of the IPR (October)

o Finalisation of report in the light of Egypt’s feedback and comments (October 2018-February 2019)

o Peer review before the OECD Investment Committee (March 2019)o IPR Launch Event in Cairo (June 2019)

Participation of MIIC and GAFI in the OECD Investment Committee to discuss international investment policy developments (October 2018).

Sub-component 4.2: Business-related laws, jurisdictions of investment institutions and legal coherence

Status of Implementation: see above

It was agreed with the Ministry of Investment to merge sub-components 4.1 and 4.2 to ensure consistency of the project’s activities in line with government priorities and on-going reforms.

Sub-component 4.3: International investment agreements

Status of Implementation: Preparation stage

The Investment Policy Review will review and assess the international investment agreements of Egypt. A capacity-building workshop on international investment agreements (IIAs) will be organized in fall 2018 following the country’s priorities and work of other international organizations (e.g. conclusions of the UNCTAD IIA review to be shared by GAFI with the OECD). The focus of the capacity-building workshop could be on peer-learning in IIA negotiations.

Sub-component 4.4: Investment dispute settlement

Status of Implementation: Completed

Building on a first workshop on the issue in March 2016, the OECD organized a workshop on Investment Dispute Management and Prevention on 28 June 2018 in cooperation with and hosted by the Cairo Regional Centre for International Commercial Arbitration (CRCICA). The workshop brought together over 70 participants including counsellors, judges, legal experts and policy makers from the General Authority for investment (GAFI), the Ministry of Justice, State Council, Egyptian Law Suit Authority, Ministry of Investment, sectoral ministries, as well as private sector representatives and academia. A background paper on the “role of the Ministerial Committees in preventing, managing and settling investment disputes in Egypt” was presented and discussed.

This workshop triggered lively discussions between the participants from various institutions, the private sector and academia, and the experts. It showed the level of experience that Egypt gained in dealing with investment disputes while the workshop allowed to extensively discuss the institutional framework set up by the authorities to manage and prevent disputes.

D. Disbursements of Transition Fund Funds for Direct Project Activities Country- Direct Cost for ISA- Total (US$)

Execution (US$)

(x)

Execution (US$)(y)


WBG: 5,000,000 OECD: 1,484,000 6,484,000

Amount Received from Trustee (b): WBG: 5,000,000 OECD:

950,302 5,950,302Actual Amount Disbursed (c): WBG: 3,466,948.72 OECD: 1,176,539 4,643,487


Year Jan-June Jul-Dec Total by Year End2018 WBG: 1,500,000

OECD: 130,000 WB: 750,000

OECD: 130,000WB: 2,250,000

2019 OECD: …WBG: 900,000

N/AWBG: 663,000

OECD: …WBG: 1,553,000


OECD1: 99,792 WBG: 459,400

OECD: 208 WBG: 0

OECD: 100,000 WBG: 459,400

1While the budgeted amount of indirect costs was USD 100,000, the actual amount incurred was USD 99,792 [as per OECD Financial Regulations on VC administrative cost recovery, BC (2011)10].

G. Results Framework and MonitoringPDO: To improve the regulatory environment for investors through simplified licensing and transparent industrial land allocation processes and to support the government of Egypt in designing a new investment policy and legal framework and in strengthening its international investment regime.

MENA Transition Fund Cross Pillar 5 Indicators


Cumulative Target Values


Data Collection

Responsibility

DescriptionJul 2015

– Jun 2016

A

Jul 2016 – Jun 2017

A

Jul 2017 – Jun 2018

A

Jul 2018 – Jun 2019

F

Target

Output 5.1.1: Documents Produced and Endorsed # 0 0 10 49215 0 500 Annually Progress Report PIU

Number of roadmaps, frameworks, procedures, licensing requirements, regulatory reform documents produced or endorsed designed to enhance the business enabling environment

Output 5.1.2: Decrees Issued or Structures Established # 0 0 9 24 24 24 Annually Progress Report PIU

Number of laws, policies, or regulations endorsed and number of units and systems established through capacity building or TA activities to enhance the business enabling environment

Output 5.1.3: Staff Trained # 0 35 95 165 165 165 Annually Progress Report PIU

Number of public sector staff receiving training in the client agencies to improve capacity for enhanced service delivery to investors

PDO Indicators Unit of Measure Baseline

Cumulative Target Values


Data Collection

Responsibility

DescriptionYR1 YR2 YR3 YR4 Target

Av. Duration of Licensing Process Day 324 250 180 29 29 33 Annually Progress Report PIU

Corresponds with Transition Fund Outcome Indicator 5.1 “Improved enabling environment and government capacity”

Number of days to comply with the Industrial Licensing process (High Risk) (Days, Custom Breakdown)

Day 640 75 75 55 55 60 Annually Progress Report PIU

Number of days to comply with the Business Licensing process (Days, Custom Breakdown)

Day 8 14 14 3 3 6 Annually Progress Report PIU

Number of land allocation requests processed through the reformed land allocation system

# 0 0 0 0 2000 2000 Annually Progress Report PIU Corresponds with Transition Fund Outcome Indicator 5.1 “Improved enabling environment and government

15 GAFI: Sectors licensing requirements consolidate/published on GAFI Portal = 479; Mapping/Simplification of Entry procedures completed = 1; IDA: Mapping/Simplification of Licensing sub-processes completed = 4, Risk based approach for industrial technical evaluation applied = 1, Industrial Developer land allocation framework designed and deployed = 1, ERRADA: Regulatory reforms proposed = 6

capacity”

Effective investment policy, legal and institutional framework and sound international investment regime

# # No no yes N/A Annually Progress Report PMU

Corresponds with Transition Fund Outcome Indicators 3.1 “improved good governance in the public sector” and 5.1 “Improved enabling environment and government capacity”

Intermediate Results IndicatorsComponent 1 (WB) - Facilitating Accessible and Transparent Investment Services (GAFI)

Mapping/Simplification of Entry procedures completed Y/N - - N Y Y Y Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.1 “Documents produced and endorsed”; (Yes is equivalent to 1 roadmap)

CRM Platform Operational in OSSs # 0 0 0 0 5 5 Annually Progress Report PIU Corresponds with Transition Fund Output 5.1.2 “Structures established”

Number of Online Business Registrations (Number, Custom) # 0 0 0 0 100 100 Annually Progress Report PIU

Sectors licensing requirements consolidate/published on GAFI Portal # 0 0 0 120 479 479 Annually Progress Report PIU Corresponds with Output 5.1.1

“Documents produced and endorsed”

Capacity Building workshops for GAFI OSS staff completed # 0 0 0 5 15 15 Annually Progress Report PIU

Component 2 (WB) – Industrial Sector Regulatory Reform (IDA)

Implementation of reformed licensing processes completed Y/N N N N Y Y Y Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.1 “Documents produced and endorsed”

Risk based approach for industrial technical evaluation applied Y/N - - Y Y Y Y Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.1 “Documents produced and endorsed”; (Yes is equivalent to 1 Risk based framework endorsed)

Industrial Licensing System Deployed in IDA Branches # 0 0 0 21 15 15 Annually Progress Report PIU Corresponds with Transition Fund

Output 5.1.2 “Structures established”

Online industrial land allocation system deployed Y/N - - N N Y Y Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.2 “Structures established” (Yes is equivalent to 1 system established)

Industrial Developer land allocation framework designed and deployed Y/N - - N Y Y Y Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.1 “Documents produced and endorsed”; (Yes is equivalent to 1 land allocation framework deployed)

Capacity building workshops for IDA branches staff completed # 0 0 2 10 10 10 Annually Progress Report PIU Corresponds with Transition Fund

Output 5.1.3 “Staff trained”

Component 3 (WB) – Capacity Building for Managing Regulatory Reform (ERRADA)

Number of Laws/ Regulations commented on # 0 0 0 2 6 6 Annually Progress Report PIU

Corresponds with Transition Fund Output 5.1.1 “Documents produced and endorsed”

Private Sector consultation on regulatory reform mechanism applied # 0 0 2 3 5 5 Annually Progress Report PIU

Capacity building workshops for ERRADA staff completed # 0 0 0 0 5 5 Annually Progress Report PIU Corresponds with Transition Fund

Output 5.1.3 “Staff trained”

Component 4 (OECD) – Support to the government in designing a new investment policy and legal framework and in strengthening its international investment regime

Reliable FDI statistics, compliant with international recommendations Y/N - no no yes N/A Annually Progress Report PMU OECD FDI statistics assessment report

produced and capacity-building workshop organized

Adoption by the government of a new investment policy and a revised investment law

# # no yes yes N/A Annually Progress Report PMU OECD comments provided on the draft law in December 2016 – New draft law adopted by Parliament in May 2017

FDI restrictions revised and improved ranking in the OECD FDI Restrictiveness Index

# # no no yes yes N/A Annually Progress Report PMU Planned activity under the IPR

Business-related laws harmonized with Investment Law, jurisdiction of investment-related institutions approved

# # # # # # # Annually Progress Report PMU Component merged with the investment policy component. Not applicable.

Number of workshops/consultations # 6 2 2 4 6 6 Annually Progress Report PMU 4 workshops organized and 1 planned

BIT network and dispute settlement bodies and procedures assessed Y/N - no no yes yes N/A Annually Progress Report PMU

Assessments done by UNCTAD (BIT) and the World Bank (dispute settlement) but not available at this stage. Paper on the “role of the Ministerial Committees in preventing, Managing and Settling Investment Disputes in Egypt” presented at a workshop attended by 70 participants

Number of Egyptian officials trained in negotiating BITs and in preventing and managing investment disputes in workshops

# 75 35 35 60 75 75 Annually Progress Report PMU 35 trained in March 2016 25 trained in June 2018Additional 20 planned

Number of investor-State dispute settlement cases reduced # # # # # N/A Annually Progress Report PMU

To be assessed at the end of the project – increased number of cases solved by amicable settlement

Energy Social Safety Nets Sector Reforms Technical Assistance Project

A. Basic Project InformationActivity Name: Energy Social Safety Nets Sector Reforms Technical Assistance ProjectCountry Name: Egypt Name of Implementation Support Agency(ies): World Bank

Email of ISA Project Leader: Mohab Hallouda [email protected], Khalid Ahmed Ali Moheyddeen [email protected]

Recipient Entity: Ministry of Electricity and Renewable Energy

Name and Email of Recipient Entity Contact:Eng. Maha Mostafa [email protected]


Additional Funds Leveraged and Source(s), if any (US$): 0


Steering Committee Approval Date: May 15, 2013

Project Implementation Start Date:November 25, 2013

Project Closing Date:July 31, 2018


Primary Pillar (select only one): Enhancing Economic GovernanceEnhancing Economic Governance


Investing in Sustainable GrowthInvesting in Sustainable GrowthInclusive Development and Job CreationInclusiveDevelopment and Job CreationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The proposed project will strengthen the Government of Egypt’s capacity to (i) design a comprehensive fuel subsidy reform strategy, (ii) establish concrete measures for improved financial viability of key energy sector actors and (iii) identify households that would be most vulnerable to the impacts of the fuel subsidy reformRating for progress towards achievement of objective: Moderately Satisfactory

Rating for overall implementation progress: Moderately Satisfactory

Status of Implementation: The implementation of the project is almost completed, only few contracts for purchase of goods are still on going. As of June 30th, 87% of the funds have been disbursed, and the remaining amounts are to be fully disbursed by the end of the project on July 31st, 2018. The project has achieved its development objectives and the all indicators have reached the targeted results. Outcomes of the project have led the way for the beneficiary ministers to materialize the reform plans. In the electricity sector, the Egyptian Electricity Holding Company (EEHC) and its affiliated companies have modified their organization charts include internal audit and compliance departments whereby some departments are currently functioning. The government has taken concrete steps to restructure the Egyptian Electricity Transmission Company (EETC); Prime Minister Decree for the establishment of the new EETC General Assembly (GA) was issued and GA meetings are held regularly. EETC will be using the financial planning model developed under the Project’s TA in discussing its financial unbundling related matters with different stakeholders including Ministry of Finance (MoF). Based on the proposed roadmap for EETC restructuring and electricity market opening a detailed action plan for reform activities is to be presented for cabinet approval. A comprehensive energy pricing and fuel switching strategy for the oil and gas sector including detailed action plans for compensatory measures to mitigate the impact of subsidy removal was developed and the staff has been trained on using the software tools for future update. An Energy Efficiency department was established under the Ministry of Electricity and Renewable Energy (MoERE). On Social Safety Nets,

UNR is now connecting over 30 databases, including the National ID, Education, Electricity, Social Security, Takaful and Karama Cash Transfer Program (TKP), mobile companies, and many other services. The TKP is operating in all 27 governorates (345 districts and 5,630 villages) whereby 9.46 million beneficiary family are benefiting from it of whom 49% are females. The government has established an inter-ministerial committee for Social Justice, housed at the Ministry of Finance, which is leading the design and coordination of the social protection and social safety net program. The committee is led by the Prime Minister and consists of Minister of Social Solidarity (member and secretary) as well as ministers of Planning, Supply, Finance, Local Development, ICT, and Labor Force.Finally, 523 from the beneficiary ministries’ staff have benefited from 46 capacity building sessions including (training, workshops, courses, ..etc); 19 % of whom are females.


Component 1 Power Sector Institutional Development and Financial Viability

Sub-component 1.1: Electricity Utilities Financial Management and Governance The scope of this sub-component is to propose options for the power utilities to improve their organization and corporate structure, financial management and governance structure.

Status of Implementation

Task 1: The task has been completed and all deliverables are submitted in Feb. 2017. The Consultant has submitted the Final Reports of the task including:

CEO Contract Template BoD Evaluation Internal Audit Department for EEHC Internal Audit Department for Subsidiaries Nomination and Remuneration charter Audit Committee Charter for EEHC Audit Committee Charter for Subsidiaries Arabic translation of CGC and Implementation road map A summary power point presentation about the Corporate Governance Code Amended Articles of Association of EEHC.

Task 2: The task has been completed and all deliverables are submitted. The Original Scope of this task was modified to include preparation of a complete bidding document for the Supply, Installation, Training, Configuration, Integration and Customization of a fully integrated Enterprise Resources Planning (ERP) System for the functional areas ;(i) financials and controlling (General Ledger, Accounts Receivable, Accounts Payable, Fixed Assets, Treasury Management / Cash Management, Budgeting and Financial Reporting), and, (ii) Supply Chain(Procurement and Inventory (Warehouse Management). The final bidding documents were submitted by the consultant & approved by EEHC in June 2017

Due to time and financing constraint, “supervision of the procurement and installation of the ERP system was removed from the current scope.

Task 3: In spite of the extra time given to the consultant to improve the financial models for the different activities (generation, transmission, distribution and EEHC), the consultant was not able to provide an acceptable deliverable to the client, hence this task was terminated from the consultant’s contract.

Task 4: Two rounds of training were completed covering the topics below:1. Key Performance indicators used for evaluating management performance (51 Attendees)2. Corporate Governance (CG) Code for the Egyptian Electricity Sector (50 Attendees)3. Internal Audit Framework including Internal Audit Manual, Report Structure and relation with external

auditor (54 Attendees)

4. Cost Calculation for different electricity companies (generation – distribution – transmission, 54 Attendees)

5. Introduction to IFRS discussing the differences with the Egyptian Accounting Standards (54 Attendees)6. Evaluation of Electricity assets and types of private sector participation (Strategic Investor, IPO, PPP,

etc., 53 Attendees)7. Interpretation and analysis of financial ratios, Key Performance indicators used for evaluating

electricity companies and development of incentives and penalty systems (57 Attendees)8. Extrapolation of data from publicly available sources (39 Attendees)9. Role and function of BOD committees (Audit Committee – Risk Committee – Nomination and

Remuneration Committee, 40 Attendees)Sub-component 1.2: Technical Assistance for restructuring of EETC to become Transmission System Operator (TSO)The scope of this sub-component is to carry out a comprehensive gap analysis and assessment of the current structure of the Egyptian Electricity Transmission Company (EETC) and propose required changes to transform EETC into TSO and to efficiently fulfill its mandate, as stated in the New Electricity Law. The PIU (EETC) is working on this assignment with MoERE, EEHC, and EgyptERA.


The tasks under this sub-component are completed and all deliverables are submitted. The original scope including tasks 1–6 tasks was completed in March 2018, and the additional scope including tasks 7 and 8 was completed in July 2018. The scope of work included the following:

Task (1): Gap Analysis of EETC Overall Organization, Human Resources and Governance;Task (2): Market, Rules, Contracts and Market Operation System;Task (3): Required IT and billing systems for market operation and settlement;Task (4): Unbundling of Accounts and Financial Restructuring;Task (5): Capacity Building;Task (6): Terms of Reference for the Implementation of Phase I of Market Liberalization.Task (7): Building Strategic Financial Model for EETC Operations and Planning. Task (8): EETC Financial and Finance Support (internal audit, treasury, ERP System specification, Construction of the opening financial statements for TSO&WPT, restructuring the financial dept. organization, etc.)

Sub-component 1.3: Action Plan for the Establishment of an Energy Efficiency Unit at the Ministry of Electricity and EnergyThis subcomponent supported the development of an action plan to establish an energy efficiency unit that could be housed at MOEE which would have as its primary objective the implementation of the National Energy Efficiency Action Plan (NEEAP) for the electricity sector


The tasks under this sub component are completed and the draft NEEAP II has been shared with the Bank.

Sub-component 1.4: Implementation Support to the PMT: This subcomponent provided support to the Project Management Team (PMT) in implementation of the project. The support will be limited to consultancy services to build the capacity of the PMT in undertaking its responsibilities and for the preparation of the required project annual audit reports. PMT received procurement training from the Bank specialist.

Status of Implementation: Two local consultants are hired to support the PMT. The external auditor is regularly submitting the quarterly audit report.

Component 2: Energy Pricing and Fuel Switching Reform Technical Assistance

Sub-component 2.1: Energy Pricing and Fuel Switching Reform StrategyThis scope of this sub-component is to develop a comprehensive strategy to phase out fuel subsidy including assessment of the effects of such strategy on the economy, specifically on GDP, inflation, and employment, including any gender considerations, as appropriate, as well as sectorial multipliers.

Status of Implementation: Task 1: Develop a Comprehensive Pricing Strategy: Final Task reports were submitted in November 2017, and a workshop to present the final results was held in Dec. 4–5, 2017. Five laptops equipped with the ORDENA software (total of 7 licenses) were delivered and tested by the Consultant in June 2018Task 2: Develop an Energy Subsidy Reform Roadmap: A final report for this task was finalized in April 2018.Task 3: Institutional support and Capacity Building Program: The capacity program items were successfully completed as follows:A capacity building contract has been signed to complete the training on the model used in developing the pricing strategy (ORDENA), and it is planned to complete the training during January and February 2018.

Management MeetingsThree Management Meetings were held to discuss key strategic issues arising out of the project deliberations.

The First Management Meeting was held in July 2016, which focused on introducing the technical and economic contents of the study, and included consultation on model design and subsidy reform options.

The Second Management Workshop was held in March 2017, which outlined progress on key issues to date, sought agreement on key assumptions and included consultation on key areas of subsidy reform.

The Third Management Workshop was held in December 2017, and outlined project findings and discussed the most appropriate paths for subsidy reform, including mitigation measures and post-reform updates of pricing.

International Study tours Study tours (two distinct groups) were held for Senior Management on energy reform issues in

liberalized markets in Madrid. These tours were held during consecutive weeks in May 2018 Training on ORDENA, CGE, SUBSIM

Various training and capacity building sessions were held between May 2016 and May 2018 on the key models used in the project including:ORDENA model Introductory ORDENA training was held in May-June 2016. Advanced training was held in July 2017. An additional one-week training course was held in Madrid in November 2017.

CGE model A Refresher Session on economic principles was held in May 2016 Introductory courses on CGE were held for two groups in August 2016 and October 2016 Intermediate training on CGE models was held for a selected group of trainees who have attended the

introductory training in April 2017. SUBSIM Model

A training course on Poverty and Inequality Analysis was held in April, 2017

Sub-component 2.2: Development of a Communication Strategy for Fuel ReformThis scope of this subcomponent is to deliver a communication strategy and communications road-map to support implementation of the fuel subsidy reform strategy.


Tasks under this component were completed and final reports were submitted as shown below: Task 1: Stakeholders and Institutional Analysis – The final Report was submitted March16, 2017. Task 2: Development of a communication Strategy plan and implementation program – the final report was

submitted March16, 2017. Task 3: Institutional Setup and capacity building of a Core Communication Unit (CU) – several rounds of

discussions took place during April–July 2016. Task 4: Launch of Communication Framework (LCF) for the MoP’s Modernization Strategy – the final report was

submitted in April 2017.

Component 3: Strengthening Social Safety Nets Technical Assistance

Sub-component 3.1: Support the Establishment of the Database of the Poor and VulnerableOne of the main objectives of the project is to support the Government of Egypt to better target the poor and thereby to mitigate the adverse impact of subsidy reform. The activities under this subcomponent will support the development of a database of the poor and vulnerable.

Status of Implementation: The government of Egypt transferred responsibility for the implementation of the Unified National Registry (UNR) from the Ministry of Planning, Monitoring, and Administrative Reform (MOPMAR) to the Administrative Control Authority (ACA) in May 2017. In October 2017 the MOPMAR minister issued a decision to transfer the remaining budget for the development of the UNR (subcomponent 3.1) to support the social safety net program (subcomponent 3.2), namely the Takaful and Karama Program (TKP), a national cash transfer program implemented by the Ministry of Social Solidarity (MoSS), which expects to utilize the remaining funds before project closure. This transfer has also covered moving the technical team of the project to develop an integrated system to connect all databases related to the MoSS under a Social Protection Integrated System. To insure the sustainability of this work after the closing of this grant, the implementation will continue with support from the Social Safety Net Project loan.

The ACA has advanced the implementation of the UNR and has connected over 30 databases, including the National ID, Education, Electricity, Social Security, Takaful and Karama Cash Transfer Program, mobile companies, and many other services. The ACA is currently using the UNR to clean up the food subsidy database. Furthermore, the MoSS is verifying the TKP beneficiaries’ data through the UNR that ACA has already developed. The World Bank will continue to provide Technical Assistance to ACA using other available resources including a Trust Fund from UK government to further enhance the UNR development through exchange of international best practices in Integrated Information Systems including learning visits; providing technical expertise national and international to support further development of the Integrated Database Systems; and capacity building / training for ACA and participating agencies.

Sub-component 3.2: Baseline Survey of Beneficiary FamiliesThis sub-component’s objective is to undertake the design and collection of a nationally representative baseline survey data to gauge the impact on efficiency in social service delivery and on the beneficiaries of the ongoing and planned reform programs, including the introduction of the smart card system, the planned cash transfer scheme, re-targeting of fuel subsidies, re-targeting of the bread subsidy, social health insurance for the poor and so on. The proposed survey will establish a baseline for monitoring and evaluating the medium-term and long-term impacts of these reform initiatives.


The activities under this subcomponent led to the development of the beneficiary registry for the national cash transfer program, the Takaful and Karama Program (TKP), which is being implemented by the Ministry of Social Solidarity. The TKP is operating in all 27 governorates (345 districts and 5,630 villages), and registered nearly 5.5 million households (HH) of which 2.27 million were enrolled to receive program benefits by the end of April 2018. The total number of beneficiary family members has reached 9.46 million, of whom 49% were female.

Sub-component 3.3: Establishment of Technical Working Unit to Support SSN ReformThe main objective of this sub-component is to support establishing and financing a technical working unit (TWU) of 3-4 professionals. The TWU will support the committee in charge of overseeing the preparation and introduction of the Cash Transfer Program and developing a medium term social protection strategy and vision.

Status of Implementation: The government has established an inter-ministerial committee for Social Justice, housed at the Ministry of Finance, which is leading the design and coordination of the social protection and social safety net program. The committee is led by the Prime Minister and consists of Minister of Social Solidarity (member and secretary) as well as ministers of Planning, Supply, Finance, Local Development, ICT, and Labor Force. Support for this sub-component also resulted in the establishment of the PMU at MoSS for the development and implementation of the TKP. The World Bank is continuing support to this committee through other programs, and the TF continues to provide TA support as needed.

D. Disbursements of Funds for Direct Project ActivitiesCountry-Execution (US$)

(x)


(y)

Total (US$)


6,500,000 6,500,000


6,500,000 6,500,000

TOTAL Actual Amount Disbursed (c):

5,402,661 5,402,661

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 226,370 226,3702015 81,000 667,934 748,9342016 828,833 587,293 1,416,1262017 684,007 876,583 1,560,5902018 1,676,869 829,888 2,506,757


597,200 0 597,200


Inclusive Regulations for MicrofinanceA. Basic Project Information

Activity Name: Inclusive Regulations for Microfinance

Country Name: The Arab Republic of Egypt Name of Implementation Support Agency(ies):The World Bank

Name of ISA Project Leader: Ghada Ismail

Email of ISA Project Leader:[email protected]

Recipient Entity: The Financial Regulatory Authority


<[email protected]>Total Amount Approved by the Transition Fund (US$):4,505,000








Secondary Pillar(s): Inclusive Development and Job CreationInvesting in Sustainable GrowthChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project development objective (PDO) is to strengthen the regulatory and institutional framework of the microfinance sector in Egypt.


Satisfactory


Satisfactory

Brief Summary of Project Implementation Status: The project is progressing very well in achieving its development and intermediate development objectives. Disbursement stands at US$ 2,348,241.00 m (59%) as of June 30, 2018. The Project Management Unit (PMU) is responsive and working well. The project has witnessed consistent improvements in implementation of key activities. Achievements since effectiveness are detailed under each component in the following sections.

C. Implementation Status of Components Component 1: Developing the regulatory framework for microfinance. This component will support the establishment of a regulatory framework that is conducive to growth and stability of the non-bank financial institutions (NBFIs) in Egypt. Critical to the success of the draft Microfinance Law are the executive regulations that should be robust and comprehensive and provide clear guidelines for NGO MFIs, finance companies, and other market players to easily comply with the new supervisory framework. The new regulations will adopt light

prudential requirements, with a focus on fit and proper requirements, strong governance rules, consumer protection (especially transparency, disclosure), and internal and external controls. Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1.5 millionSub-component 1.1: Technical assistance to the Financial Regulatory Authority (FRA) in finalizing the Microfinance Executive regulations and supervision manuals.Status of Implementation: Done. On 13 November 2018, The President has issued Presidential Decree No. 141 of 2014 promulgating the Microfinance Law and the Financial Regulatory Authority (FRA) Board has issued implementing decrees 172/2014, 173/2014, 31/2015, 1/2015 and 2/2015 on the licensing requirements and operational rules to regulate companies and non-governmental organizations (NGOs) to engage in microfinance activities and created a unit to supervise their activities. Moreover, the Microfinance union charter issued, board elected, and the 2nd MF Union general assembly was held in addition to the publishing of the MF policy manual and the MF financial reporting rules decree was issued.

During the reporting period, the FRA Board has issued the following decrees: Decrees No. 3/2018 and 4/2018, to facilitate the usage of e-payment solutions by

NGO/MFIs. Decrees No. 11/2018, 12/2018 and 32/2018, to grant license to Microfinance Investment

Funds. These funds will purchase micro finance portfolios from companies and entities licensed to engage in microfinance activity. Thus, providing financing for these entities to reinvest them in granting finance.

Decree No.36/2018, to regulate the optional termination of NGO/MFIs licenses. Decree No. 93/2018, to regulate the ownership and licensing of companies operating in

non-banking financial services.

New draft regulations in the pipeline includes: (i) a regulation allowing microfinance companies and (NGOs) to use the Mobile payment solutions as an agent for commercial banks or as an ordinary user, and (ii) regulating non-adhering NGOs-MFIs to onsite and offsite manuals with punitive rules. Moreover, guiding manuals are under preparation as follows: (i) a manual to examine the validity of the accounting standards disclosed in the financial statements of MFIs; and (ii) a manual to audit the financial statements of MFIs. Sub-component 1.2: Technical assistance in forming the NGO Oversight Board and drafting and finalizing its DirectivesStatus of Implementation: FRA Board of Directors issued resolution No. 160 /2014 dated 12.03.2014 to form the Board of Trustees to supervise civil associations and NGOs microfinance activity. The Board of Trustees include in its membership all key stakeholders including The Central Bank of Egypt, The Social Fund for Development, Ministry of Social Solidarity, NGOs and other relevant bodies. The Board of Trustees meets regularly to follow up on the activities. The Board of Trustees meets regularly to follow up on the activities, and it has convened six times since inception. FRA board of directors issued resolution No.16/2018 dated 27/03/2018, to restructure the board of trustees16 . The new board of trustees include in its membership all key stakeholders, with representation from same above-mentioned institutions which represent key players in microfinance industry.

16 The new Board of Trustees included Dr. Mohamed Omran, Consultant / Reda Abdel Moaty and Mr. Abdelhamid Ibrahim ( FRA representatives), Mrs. Mai Abu El-Naga, representative of the Central Bank of Egypt, Mr. Mohamed Said Mohamed Mostafa, representative of the Ministry of Social Solidarity, Mrs. Niven Ali Bader Eldeen , representative of the Mirco, Small, and Medium Enterprises Development Agency (MSMEs Development Agency), Mr. Karim Fanous, MP Hala Fawzi Abu Alsaad, representatives of NGOs operating in the activity and Mrs. Naglaa Bahr, expert. The new Board of Trustees is formed for a period of two years until 3/12/2019.

Sub-component 1.3: Conducting study tours Status of Implementation: An international Study tour to Uganda17 was conducted to learn and understand the existing microfinance regulatory framework in Uganda and its alignment with microfinance best practices. Nine participants from the Board of Trustees of FRA's Microfinance Department and the Microfinance Unit, staff members from FRA as well as representatives from the Egyptian Microfinance Union (Association) and MFIs took part in the tour. The program of the tour was set in close coordination with Bank of Uganda and the German Federal Enterprise for International Cooperation (GIZ) to provide good lessons for the team about regulation of NGOs.

The institutions selected for visitation included: (i)The Department of Non-Bank Finance Institutions in Bank of Uganda (BOU), (ii)The department of Financial Services in the Ministry of Finance, Planning and Economic Development; (iii) The Association of Microfinance institutions of Uganda (AMFIU); (iv)The support institutions for microfinance including GIZ, Microfinance East Africa ltd and The Microfinance Support Center Limited; (v)Financial institutions across all the four tiers i.e.

a. 1 Tier (Commercial bank) - Centenary Bank which has the biggest microfinance portfolio in the country

b. 1 Tier 2 (Credit Institution) – Opportunity Bank, formerly an NGO that transformed into a regulated financial institution

c. 2 Tier 3 (Micro Deposit-taking Institution) – UGAFODE and PRIDE, both formerly NGOs and currently RFIs

d. One Tier 4 MFI – BRAC Microfinance, an NGO with the largest microfinance portfolio and branch network in the country

Sub-component 1.4: Advisory services to strengthen the regulatory framework for NBFIs, aiming at enhancing financial inclusionStatus of Implementation: TA was provided to FRA to develop a national strategy for non-bank financial services (2018-2022). The strategy aims at expanding the focus of FRA from regulating to a more prominent role of setting the direction of the non-bank financial services sector; what role it should have in complementing the financial sector in Egypt and how this role can be achieved. In doing so, the Strategy is based on two main pillars namely developing the NBF sector in terms of Financial Instruments, Markets, and Institutions and the second would be the development of the NBF regulatory framework. The two pillars combined would help effectuate the role of the NBF sector in the development of the Egyptian economy through facilitating the access to finance and enhancing financial inclusion by offering a wide range of alternatives that would complement the banking sector's products.The strategy provides an analysis of linkages between Non-bank financial services and real economy, overview of current state of Non-bank financial sector, SWOT analysis of NBFIs, and main pillars of the strategy include also regulatory reforms in NBFIs, and developing markets and Consumer protection.FRA team are currently working on developing a new insurance and private pension funds law. The Bank Global team will review the first draft once finalized.

Earlier Technical assistance was provided to FRA to review the draft law, relevant directives and board decisions for regulating and supervising the private pension Funds (PPFs) sector in Egypt to ensure better asset management and governance by PPFs following the international best practices. The Bank team organized an international study tour that would enable learning

17Why Uganda? (i) one of the strongest microfinance markets in Africa – large outreach and sustainability; (ii) long consultative and gradual process (lasted for almost a decade) towards regulation; (iii) over 15 years of experience in microfinance regulation and supervision; (iv) tiered regulatory framework (4 tiers including banks); (v) on-site and off-site supervision of Tier 1 – 3 MFIs; (vi) challenge of regulating hundreds of Tier 4 NGOs; and (vii) strong microfinance network.

about the various countries’ PPFs. This included visiting Malaysia to meet the Securities Commission and Employees Provident Fund (EPF) and Hong Kong for the Annual Forum of the International Organization of Pension Supervisors (IOPS) with tailored meetings on best practice with the Australian, Mexican, Chilean and Hong Kong authorities. In Malaysia the FRA team received excellent presentations by the EPF on their overall approach, and with a specific focus on investment, governance and risk management to assist them in the development of legislation and regulation. The EPF illustrated good standards in a pension fund and hence what FRA should look for in the pension funds they regulate. Presentations from the Malaysian Securities Commission covered their regulation of voluntary private pension funds. As well as highlighting how their system works, they provided useful insights for FRA on how to take the experience from different countries and tailor it to the particularly country context. The WB team also organized sessions for the Egyptian delegation on the legislative and regulatory issues with the Australian, Mexican, Chilean and Hong Kong regulators during the IOPS meetings in Hong Kong. This allowed them to see how different countries had tackled some generic challenges in which FRA are interested in moving forward – such as governance, risk management, supervision and investment – and showed how from a regulatory point of view there was a lot of overlap in terms of good practice in both Defined Benefit and Defined Contribution pension funds. The discussions – and sessions at the IOPS conference - also allowed a deeper discussion on actuarial issues and Defined Benefit liabilities, which is an area of interest for FRA. There were many other presentations in the IOPS conference that will be posted on the Pensions GSG site external site, Insurance and Pensions for Development external site and sent to colleagues in cross cutting areas where they overlap with their areas of responsibility.

A World Bank mission worked with FRA on developing priorities and proposals for the development of legislation and regulation to improve private pensions under FRAs supervision in relation to governance, investment, risk management and supervisory powers and approach, along with a linked focus on the actuarial legislation and regulations. A presentation which summarizes the progress and key issues and suggests next steps was developed and shared with FRA. FRA will revert on the desired size and scale of the engagement going forward as there were a range of options. FRA had many strengths – and seemed to have integrated well the results of previous international advice on improving pension regulation.

Component 2: Establishing and operationalizing the Microfinance Unit at FRA. The objective of this component is to ensure that the Microfinance Unit adopts international best practices and develops the capacity necessary to implement the law and associated executive regulations effectively so as to support the growth of the overall microfinance sector in Egypt. It will support FRA through the provision of technical assistance and advisory services in establishing and equipping the Microfinance Unit, which would be responsible for operationalizing the executive regulations and policy, enforcing rules, ensuring compliance, and supervising MFIs. This will help FRA to establish appropriate on-site and off-site monitoring systems and procedures, advice on enforcement mechanisms and training on the operationalization of the Microfinance Law and its executive regulations. The IT system will also allow the compilation of sectoral data to monitor macro prudential indicators, which would allow adequate and timely monitoring of the performance and soundness of microfinance sector and NBFIs. The system will also help in identifying financial inclusion barriers created by some financial institutions (such as minimum balance amounts for opening a bank account).Previous Rating: Moderately Satisfactory

Current Rating: Satisfactory Cost (US$): 1.5 million

Sub-component 2.1: Establishing the Microfinance Unit, and capacity building and training of key staff

Status of Implementation: The microfinance unit is functional. Current structure as follows: Head of microfinance unit, Head of inspection & compliance; Head of finance and planning; twenty-three employees covering the Inspection team, Licensing team, Data and Reporting Team; Development Team; and MIS management team.

During the reporting period, the following capacity building and training activities were conducted:

Risk management course in cooperation with the Egyptian Institute of Directors (EIoD). four members from the inspection team participated in this course in March 2018.

Four training rounds were completed by the chartered accountants on the new guidance manual for auditing MFIs financial statements. Trainings were held in three governorates (Cairo, Alexandria, and Luxor) and attended by 200 participants.

Moreover, the following capacity building and training activities are in the pipeline for the financial year 18/19:

Planned training list For Microfinance Unit Staff: training on microfinance lending practices in cooperation with the Egyptian Banking Institute (EBI), planned for next September; training on internal control and Anti-Money Laundering (AML) for microfinance in cooperation with the EIoD, to be held in August 2018.

Training for NGOs and MFIs on risk management and AML; internal auditing framework. Also for microfinance credit officers to support MF industry.

Earlier, FRA Issued decision no. 179 of 2014 to create a microfinance unit in FRA to supervise civil associations and NGOs microfinance activities. The unit is established and fully equipped with a competent head appointed as per directive no. 1097 of 2014. Moreover, FRA issued directive no. 159 of 2014 regulating the functions of the microfinance unit. Key staff are appointed in the Microfinance unit as follows: a Head of Central Department for Microfinance, a General Manager for inspection & compliance and a Manager for Financial Planning. In addition to an Executive Director of NGOs microfinance supervisory unit, two Seniors, three Specialists for Supervision & Analysis, and MF Development Expert. The Microfinance Unit is in the process of hiring new staff members (15 staff), namely in areas of Inspection, Compliance, Financial analysis, procurement, Consumer Protection.

A training needs assessment was conducted through open discussions with all the Microfinance Unit staff members in addition to some key FRA staff members that work directly on all non-banking financial activities (including microfinance); namely, the Financial Products Development Executive, the General Manager of Investor Awareness Department, and the Legal Expert, to identify their capacities and the skills needed to optimally perform their jobs. Accordingly, the World Bank team shared a draft capacity building plan for the Microfinance Department- including a list of training programs and other capacity building activities for all the staff working on microfinance-related issues, especially those directly involved in inspections and supervision, to address the gaps and needs of the Microfinance Unit, events to be attended, and additional study tours. One training for microfinance staff was conducted on accounting systems for NGOs licensed under Tier C, and on managing diverse portfolio, which is one module from Making Microfinance Work (MMW) training by ILO Other trainings conducted include:

A two-day workshop on Client Protection was conducted by Smart Campaign in coordination with IFC and WB to increase the capacity of microfinance unit to implement financial consumer protection guidelines based on international best practices developed by the microfinance sector and promoted by the Smart Campaign. Utilizing the Microfinance CEO Working Group’s recently released publication Client Protection Principles: Model Law and Commentary for Financial Consumer Protection as its focal point, an expert trainer assisted participants to assess existing approaches to financial consumer protection and market conduct supervision and best practices in addressing

them; and understand practical supervisory and enforcement takeaways in the areas of preventing over indebtedness and transparency.

TOT program on the seven client protection principles and the 103 indicators that MFIs have to pass in order to be certified by the smart campaign.

Two members from the Microfinance Unit participated in the six-day Harvard Business School–Accion Program on Strategic Leadership in Inclusive Finance. The program provided the opportunity to connect with peers while engaging with some of the HBS faculty's foremost thinkers in business strategy and management.

Microfinance team also participated in a “Capacity Development Program-Level One Project Executive” workshop in March. The workshop focused on the development of digital finance and financial inclusion in the Arab region.

Sub-component 2.2: Strengthening the institutional infrastructure, with the required equipment and IT, both software and hardware. Technical assistance to FRA to establish a solid MIS system to help monitor the development of the microfinance industry in Egypt, promote financial inclusion and improve performance of the involved parties in this area will follow.Status of Implementation:The unit is currently fully equipped & furnished and the microfinance NGO prudential reporting software is ready. The World Bank team has provided Technical assistance in developing the general and technical requirements for the MIS software based on the reporting templates and standards for preparing financial statements required by the law. The requirements acknowledges that the design and implementation of the MIS software should be assisting the Microfinance Central Department with the (i) compilation and regular updating of the basic institutional data required from all licensed MFIs; (ii) compilation, review, and analysis of the periodic regulatory reports and financial statements required from all licensed MFIs; (iii) compilation of all additional documents and information required by the regulations; (iv) archiving of all relevant data, reports, and information provided by the MFI or compiled by FRA under the MFI’s profile; and (v) generation of a variety of analytical performance. In addition, the terms of reference to develop the aforementioned MIS system has been developed, in consultation with FRA, in order to clarify scope of work and expected deliverables, to expedite implementation in preparation for the bidding process to solicit a vendor to design and implement the software. The terms of reference to solicit a vendor to develop the aforementioned MIS system were prepared and contract was awarded.

The microfinance MIS Project started in June 2017. It achieved five deliverables out of twelve deliverables. However, with the change in FRA management a decision was taken to expand the scope of MIS system to cover the non-bank financial services to maximize the benefits from the system. new requirements were added to cover all NBFIs and the project will be resumed by September 2018 and expected to be finalized by the end of March 2019.

Component 3: Promoting accountability, governance and consumer protection. This component will support FRA in enhancing accountability and governance, as well as developing a robust consumer protection capacity within the microfinance industry, and in developing financial literacy amongst target population groups. The tasks related to consumer protection will be handled by FRA’s PMU. Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1 millionSub-component 3.1: Enhancing Consumer protection, financial literacy, and public awareness campaigns


The draft of the consumer protection guidelines covering microfinance companies and NGO-MFIs was reviewed by the World Bank team and detailed comments were provided covering

the relevant areas necessary to create an effective and strong consumer protection system. In the coming period, the WB will be supporting FRA in the implementation (i.e. ensure that the topics covered within the guidelines are well disseminated and understood by MFIs and clients and are in fact considered and reviewed through on-site and off-site supervision, provide templates and examples whenever possible for contracts, code of conduct, best practices, disclosure requirements, etc. which FRA could share with the MFIs for guidance, etc.). Moreover, the team will be working with FRA on developing a consumer protection strategy to cover all the activities that need to be conducted over the next 2 years. FRA has worked on developing 19 awareness messages for the MFIs, 7 awareness messages for clients, and 6 slogans for microfinance. The Bank team is currently supporting FRA in reviewing these messages and identifying the best method(s) to relay these messages. The design of a public awareness campaign on the rights and responsibilities of clients under the new Microfinance Law and the supervisory role of FRA. To start with disseminating the information regarding consumer protection, FRA printed the guidelines to be disseminated on NGOs to ensure knowledge transfer and compliance of NGOs to the guidelines.Currently the bank is preparing with Microfinance team to host a workshop on consumer protection before the end of the Year. On promoting accountability, and NGOs capacity building, FRA adopted a training program targeting NGOs with active portfolio lower than 2 million EGP to build their financial capacity. By April 2017, a total of 479 participants representing more than 400 NGOs of category C (of total 600 NGOs in training time) were trained on accounting principles and compliance to FRA regulatory reports. Also, special trainings and sessions targeting financial auditors and raise their awareness on Microfinance Law and NGOs commitments towards licensing and the expected roles of auditors by the virtue of the law and regulations. 10 training sessions were conducted across 26 different governorates covering all regions of Egypt.

Currently, a new consumer protection advisor was hired to draft the financial consumer protection guidelines covering NBFIs. The World Bank Global team will provide TA to review the draft guidelines once finalized.

Moreover, the following capacity building and training activities are in the pipeline for the FY18/ 19:

Training for NGO/MFIs on the principles and rules of microfinance practices in accordance to FRA regulations and CP guidelines (8 rounds of training targeting 240 NGO-MFIs).

Workshops and awareness sessions, for NGOs and microfinance companies focusing on consumer protection and governance (6 rounds of training); and new services (Mobile payments, E-payments, micro insurance, fund raising tools for microfinance) (6 rounds of training).

Sub-component 3.2:Training and capacity building of the Microfinance Oversight Board

Status of Implementation: The members of the Microfinance Oversight Board participated in a study tour to Uganda to learn and understand the existing microfinance regulatory framework in Uganda and its alignment with microfinance best practices.


(US$ Million )

(x)

Direct Cost for ISA-Execution (Million US$)

(y)

Total (Million US$)


4,000,000 4,000,000


0 0


2,348,241.00 2,348,241.00

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End20142015 500,000 800,000 1,300,0002016 600,000 500,000 1,100,0002017 500,000 500,000 1,000,0002018 300,000 300,000 600,000

F. Disbursements of Funds for Indirect Costs (US$Million)Disbursed (Million US$) Available (Million

US$)Total (MILLION US$)

505,000 0 505,000


PROJECT DEVELOPMENT OBJECTIVE: The project development objective (PDO) is to strengthen the regulatory and institutional framework of the microfinance sector in Egypt

PDO Level Results Indicators

Cor

e Unit of Measure Baseline

Cumulative Target Values Frequency Data Source/Methodology


Aug 2014 – Jul 2015Actual

Aug 2015 – Jul 2016

Actual

Aug 2016 till Jan 2017

Actual

Jan 2017– Dec 2017

Actual

Jan2018– June 2018Actual

New regulatory framework effective for MFIs, including NGOs-MFIs Yes/No No Yes Yes Yes Yes Yes Annual FRA FRA

Number of MFIs licensed by FRA under the Microfinance Law[1][1] Number 0 440 654 758 818 925 Annual FRA FRA

Number of NGOs engaged in microfinance activities (reported by the Microfinance NGOs Oversight Board)

Number 0 450 651755

815 915 Annual FRA FRA

Number of microfinance beneficiaries under the Microfinance Law Number 0 1,521,000 1,580,000 2,000,000 2,111,510 2,722,000 Annual FRA FRA

Female MFI beneficiaries of microfinance loans Percentage 0 0 NA 66 70 68 Annual FRA FRA

INTERMEDIATE RESULTSComponent I: Developing the Regulatory Framework for Microfinance

Issuance of the Microfinance Executive Regulations by FRA Yes/No No Yes Yes Yes Yes Yes Annual FRA FRA

Frequency of meetings of the Microfinance NGOs Oversight Board Number 0 4 5 5 7 9 Annual FRA FRA

Component II: Establishing and Operationalizing the Microfinance Unit at FRA

[1][1] There are currently five private companies licensed by FRA (Tanmeyah, Reefy, Tasaheel, Sandah and Aman). Additionally, some other investors are forming new companies to practice microfinancing activities.

Microfinance Unit established and operational at FRA Yes/No No Yes Yes Yes Yes Yes Annual FRA FRA

Number of staff of MFIs trained Number 0 0 8 700 800 1000 Annual FRA FRA

Microfinance sector reports disclosed by FRA Number 0 1 3 6 10 Annual FRA FRA

Number of training programs for Microfinance Unit staff Number 0 0 1 4 11 12 Annual FRA FRA

Component III: Promoting accountability, governance and consumer protection

Number of staff and clients trained—workshops, study tours, and capacity building events

Number 0 400 1800 3000 3500 4000 Annual FRA FRA

Number of awareness and consumer protection initiatives launched and implemented by FRA

Number 0 9 12 17 19 21 Annual FRA FRA

Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making

A. Basic Project InformationActivity Name: Towards inclusive and open governments: Promoting women’s participation in parliaments and policy-making in EgyptCountry Name: Egypt Name of Implementation Support

Agency(ies): OECDName of ISA Project Leader: Nicolas Pinaud; Tatyana Teplova

Email of ISA Project Leader: [email protected] [email protected]

Recipient Entity: National Council for Women (NCW)Total Amount Approved by the Transition Fund (US$): 633,333








Secondary Pillar(s): Investing in Sustainable GrowthInclusive Development and Job CreationCompetitiveness and Integration

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The project supports Egypt in fostering inclusive growth and good governance by leveraging open government policies and mainstreaming gender perspectives in parliamentary operations.The proposed project provides direct country support to Egypt and is part of a regional project also implemented in Morocco, Jordan and Tunisia. The project aims to promote women’s participation in parliaments, local elected councils and policy-making by:1) Making legislatures and local elected councils more transparent, equitable and gender-sensitive;2) Empowering and strengthening the capacity and skills of women electoral candidates at the national and local levels; and 3) Improving public consultation capacity of parliaments, local elected council’s and women’s CSOs in law-making processes. This will be complemented by regular regional meetings as an integral part of this project. This regional dialogue is a cross-cutting element for the continuity of the knowledge sharing process for implementation of reforms and transformation on the ground. In this context “learning loops” will offer a multi-level mechanism for interaction and new policy approaches among parliamentarians and policy makers in the region.


Satisfactory


Satisfactory


Progress has been strong driven by continued and solid coordination between the National Council for Women (NCW) and the OECD. In the first half of 2018, the focus of action has been on the implementation of public consultation sessions as well as the finalization of the assessment reports on parliamentary electoral and workplace operations, processes and policy frameworks through a gender lens and on existing opportunities and current challenges faced by women candidates in Egypt.

Due to the Presidential elections in Egypt in spring 2018, the Egyptian delegation of parliamentarians was not able to participate in the study visit to Italy that was organized in May 2018. Therefore, the NCW is interested in a technical extension and slight restructuring of the project in order to allow for the implementation of this last remaining activity under this project.

During the past six months, the main achievements include:

Organisation of the advisory sessions for the Parliament and women’s CSOs on public consultation in law-making processes (Comp.3)

Finalisation of the assessment report of existing opportunities and current challenges faced by women candidates in Egypt (Comp. 2a)

Elaboration of the draft assessment report of parliamentary electoral and workplace operations, processes and policy frameworks through a gender lens, including in selected local elected councils (Comp. 1a)

Preparation of Egypt’s participation to the annual high-level regional dialogue in Morocco (Comp. 4)




Preparation of Egypt’s participation to the annual high-level Regional Dialogue in Morocco (Comp. 4)

OECD in collaboration with the NCW

July 2018

Organisation of the study visit of Egyptian parliamentarians to an OECD country (Elements of Comp. 1b and of Comp. 2b)

OECD in collaboration with the NCW

Autumn 2018

C. Implementation Status of Components Component 1: Making legislatures transparent, equitable, and gender-sensitivePrevious Rating: Satisfactory

Current Rating: Satisfactory Cost (US$): 200,105

Sub-component 1.1: Mapping and analysis of parliamentary electoral and workplace operations, processes and policy frameworks through a gender lens, including in selected local elected councils

Status of Implementation: The fact-finding mission was completed in 2016, but given the newness of Egypt’s Parliament and the high proportion of first-time MPs and new laws to be passed – the OECD continued to monitor the situation. The final version of the mapping exercise of existing institutional capacities to adopt gender sensitive parliamentary and electoral operations, processes and policy frameworks will be presented at a Regional Conference to be held in Morocco on 10-11 July 2018.Sub-component 1.2: Providing country-based capacity building activities to parliamentarians, selected local electoral committees and secretariats

Status of Implementation: Four advisory sessions took place in November 2017, back-to-back with the Regional Dialogue, for representatives of parliamentary secretariat, and parliamentarians. The objectives of the advisory sessions were to improve understanding of the importance and necessity of gender equality measures with training and advice on specific gender equality issues related to the role of parliament as an employer and rule maker.

A study visit of Egyptian parliamentarians to Italy was scheduled to take place in May 2018. However, due to the Presidential elections in Egypt in spring 2018, Egyptian Parliamentarians were not able to participate in the study visit. The NCW is therefore interested in a technical extension of the project so that the study visit can be held in autumn 2018.

Component 2: Strengthening capacity and skills of women parliamentarians and the national and local level


Current Rating: Satisfactory Cost (US$): 223,642

Sub-component 2.1: Conducting country-based assessment of the existing opportunities and the current challenges faced by women candidates

Status of Implementation: The fact-finding mission was completed in 2016. On this basis, a country assessment report has been elaborated highlighting the challenges faced by women running for elections and the enabling factors for their increased political engagement. A preliminary version of the OECD’s “Egypt's assessment of Women's political participation” report was launched at the Regional Conference in Egypt on 19 November 2017 and the main findings of the report were presented and discussed. The report highlights that special measures such as quotas and reserved seats have been instrumental in increasing women’s representation in decision-making bodies, but it is women’s passion for bettering their communities and countries, unique perspectives and high performance that have helped to sustain their representation and change public perception. The final version of the report will be presented at the Regional Conference in Morocco on 10-11 July 2018. Sub-component 2.2: Building women’s capacities to participate in elections and parliamentary operations at national and sub-national levelsStatus of Implementation: The training of trainers (TOT) workshop and the capacity building seminar for women candidates running for elections was successfully completed in autumn 2016 (please refer to the January 2017 progress report for further details).

As already mentioned under 1.2, the study visit of Egyptian parliamentarians to an OECD Parliament is scheduled to take place in autumn 2018, provided the project extension is approved.

Component 3: Strengthening public consultation capacity of parliaments and women’s CSOs in law-making processes

Previous Rating: Not Applicable


Cost (US$): 119,004

Status of Implementation: This component focuses on building capacities of both Parliament and civil society to effectively engage with each other in the law drafting process.

A guide on public consultation has already been developed by the OCED in collaboration with Montreal’s Office of Public Consultation (OCPM), Canada, to support the advisory session,

defining public consultation, explaining the necessary steps to follow, offering an overview of possible tools and techniques for public consultation and giving practical examples. The OECD shaped these guidelines to the Egyptian context.

The public consultation sessions took place on 5-6 May 2018 in Cairo and were peer-led and facilitated by Dominique Ollivier, President of Montreal's Office for Public Consultation. Sessions were held in small groups in order to provide ample time for discussion and group exercises.

On the 5th of May, 15 female MPs participated, on the 6th of May 10 representatives from CSOs and women's associations joined the sessions. Dr. Heba Hagres, Member of Egypt's House of Representatives, provided a good practice example of the public consultations efforts undertaken to pass the Law on Disabilities and on 6 May, MP Manal Maher, having a strong background working with civil society before becoming a member of parliament, highlighted the ways in which civil society had successfully worked with policy-makers to advance draft legislation (e.g. on Female Genital Mutilation) and raise public awareness. Both sessions honed in on harmonizing Egypt's Personal Status Laws with international standards and Egypt's ratification of CEDAW and the best methods for hosting public consultation on such sensitive topics.

Component 4: Regional Dialogue



Cost (US$): 50,682


The first regional dialogue for this project took place in Amman, Jordan, on 4-5 May 2016, co-organized with the Jordanian National Commission for Women, the 2016 Women in Parliament’s (WIP) Global Summit and the Jordanian Parliament.

On 19-20 November 2017, the high-level Regional Conference “Breaking barriers: Towards equality between women and men in politics”, was held in Cairo, Egypt. The regional conference featured the launch of the preliminary version of “Egypt's assessment of Women's political participation” report and encouraged a knowledge transfer and peer to peer exchange on persisting barriers facing women to vote and run for office in Egypt, Jordan, Morocco and Tunisia, as well as other MENA and OECD countries. The conference also offered an opportunity to celebrate the year for Egyptian women and the “Egyptian women vision 2030: Women national empowerment strategy”, which paves the path towards greater inclusive economic growth, social cohesion and well-being of all citizens equally. (Please refer to January 2018 report for further details)

The next regional dialogue on “Women’s leadership and political representation” will take place on 10-11 July 2018 in Rabat, Morocco with the participation of experts and representative from Parliament and local councils and national commission of women from Tunisia, Egypt Jordan and OECD countries. The conference will provide the opportunity to present the updated reports for Egypt and Jordan on women’s political participation at the central and local levels, as well as on gender sensitive practices within parliament. The reports for Morocco on the same topics will be launched at the occasion of the conference. Egyptian parliamentarians will have the opportunity to attend and actively participate in the regional conference in Morocco.

D. Commitments and Disbursements of Transition Fund Funds for Direct Project Activities

Country-Execution Direct Cost for Total (US$)

(US$)

(x)

ISA-Execution (US$)

(y)Approved Amount for Direct Project Activities (a):

OECD: 593,433 USD OECD: 593,433 USD






Year Jan-June Jul-Dec Total by Year End2018 OECD: 47,220 USD OECD: 47,220 USD

F. Commitments and Disbursements of Funds for Indirect Costs (US$)Disbursed (US$) Available (US$) Total (US$)OECD: 39,900 USD OECD: 0 USD OECD: 39,900 USD


Indicators by Component Unit Baseline Cumulative Target Values Frequency Data Source/Methodology


Description (Indicator Definition, etc.)

2016‘A’

2017‘A’

2018‘F’

Indicator 1: No. of assessments and guidelines completed and approved

Quantitative 0 3 8 10 Once Project progress reports

Project Implementation Team (PIT).

No. of assessments, guidelines, materials, training modules, toolkits and guidelines designed to enhance the enabling environment

Indicator 2: No. of internal regulations and policy proposals endorsed

Quantitative 0 0 8 10 Annually Project progress reports


A set of targeted policy recommendations intended to different stakeholders aiming to overcome the existing barriers faced by women candidates to access to parliamentary posts.

Indicator 3: No. of programs and projects designed and implemented to promote more gender sensitive and equitable allocation of government resources



Programmes and projects that support reform of government safety net systems, subsidy policies and other related programs and thereby promote more efficient and equitable allocation of resources

Indicator4 : No. of public institutions (Parliament, Government Bodies and institutions) received support to conduct mapping exercise of the current situation

Quantitative Existing

0 10 20 Annually Project progress reports


Government bodies, institutions and local government units received support services aimed at increasing their capacity to delivery public services to constituents

Indicator5 : No. of trained representatives of parliamentary secretariat, parliamentarians, local elected officials and women candidates



Public sector staff received training in various thematic areas to improve their capacity for better public service delivery

Indicator 6: No. of CSOs, women or youth groups engaged and empowered at the central and local level

Quantitative Existing 0 10 20 annually Project progress reports


Number of CSO’s involved in public consultations and Number of awareness campaigns, hits on the website and regional meetings; communication strategies; electoral commissions and parliamentary secretariat


Component 1: Making legislatures transparent, equitable, and gender-sensitive

Indicator 1: Parliament, Government Bodies and institutions received support to conduct mapping exercise of the current situation

Qualitative 0 22 (actual)

(the final target was 20)

22 22 Once Project progress report

PIT Number of Government Bodies and institutions received support to conduct an analysis of parliamentary electoral and workplace operations, processes and policy frameworks through gender lens

Indicator 2: No. of trained representatives of parliamentary secretariat, parliamentarians and local elected officials

Quantitative 0 0* (To be trained in 2017)

30 30 Annually Project progress report

PIT Number of trained representatives of parliamentary secretariat, parliamentarians and local elected officials

Component 2: Strengthening capacity and skills of women candidates for parliament

Indicator 3: Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Quantitative 0 3 4 4 Once in 1st and 2nd year

Project progress report

PIT No. of assessments, guidelines, materials, training modules, toolkits and guidelines designed to enhance the enabling environment

Indicator 4: Women candidates for parliamentary elections, youth groups trained, engaged and empowered to participate in public life

Quantitative 0 18 trainers (ToT)

126 women Candidates

126 126 Annually Project progress report

PIT Women candidates trained

Component 3: Strengthening public consultation capacity of parliaments and women’s CSOs in law-making processes

Indicator 5: CSOs, women or youth groups engaged and empowered at the central and local level

Quantitative 0 0 0 10 Annually Project progress report

PIT CSOs, women or youth groups engaged and empowered at the central and local level aimed at increasing the involvement of these groups in public policies

Indicator 6: Parliament and local elected institutions received support services to develop their engagement capacities

Quantitative 0 0 0 15 Annually Project progress report

PIT Parliament , Ministry of Women affairs and local elected institutions received support services aimed at increasing their capacity to engage stakeholders, including women’s groups and mainstream gender sensitive principles

Component 4: Regional Policy Dialogue

Indicator 7: improved enabling environment and institutional capacity across the region

Quantitative 0 1 2 3 Annually Project Progress Reports

PIT Number of models of good practices

Indicator 8 : Documents produced and endorsed at the regional level

Quantitative 0 1 2 3 Annually Project Progress Reports

PIT Studies, assessments, reports, action plans, roadmaps, models of good practices or framework

Building Capacity & Institutional Strengthening of Ministry of International Cooperation

A. Basic Project InformationActivity Name: BUILDING CAPACITY AND INSTITUTIONAL STRENGTHENING OF MINISTRY OF INTERNATIONAL COOPERATION (MIIC)


Name of ISA Project Leader: (from GoE)

Moataz [email protected]

Email of ISA Project Leader: (from AfDB)

Prajesh [email protected]

Recipient Entity: Government of Egypt, Ministry of Investment and International Cooperation (MOIIC)

Regional Director General North Africa (RDGN), Mohamed EL [email protected]



Total Amount Disbursed (Direct and Indirect in US$): 962,964.60 (direct) and (70,000) indirect

Total: US$ 1,032,964.60


Dec. 2015


23th of May, 2016


March 31, 2020



Secondary Pillar(s):Investing in Sustainable Growth

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: Contribute to the enhancement and improvement of the performance of the Ministry of International Cooperation in Egypt and to help strengthen and upgrade the institutional capacity and human resources of the ministry to enable it to carry out its functions of aid coordination and resource mobilization in the most effective way possible.


Moderately satisfactory

Rating for overall implementation progress: Moderately satisfactory

Brief Summary of Project Implementation Status: 933The overall objective of the project contributes directly to the government’s reform efforts of its public sector manifested in Egypt’s Vision of the Public Administrative Reform Program published by the Ministry of Planning Follow up and Administrative Reform in July 2014, specifically the second and third objectives namely “Raising Efficiency and Effectiveness of Public Administration Bodies” and “Building the Capacities of Public Servants on different levels”. In addition, it directly contributes to the Government’s current program adopted by the new Cabinet in October 2015 reflected mainly in two documents, namely the “Sustainable Development Strategy (SDS): Egypt’s Vision 2030” and the “5-year Macroeconomic Framework and Strategy” (MFS) covering FY




2014/2015-2018/2019.

To achieve the above-mentioned objective, four inter-related components were planned: (i) organizational and institutional strengthening, (ii) enhancing the technical infrastructure of MIIC, iii) Staff training and skills development, and iv) project management.

The rating has gone up from MU to MS due to significant increase in implementation of activities mainly in the form of launching several activities all of which are at various states of the procurement process and some concluded:

Equipment for the training rooms so that the two training rooms are fully functional and now in use for all trainings;

Contract signed for the big training program (US$ 220,000) – trainings have already begun in-house; IT trainings also launched and on-going; Upgrading & Enhancement of the Existing Policies, Procedures, Work Flow and Organizational Structure

of MIIC; Improving ICT Infrastructure of the Ministry of International Cooperation; Improving and enhancing ODA Information Management Systems; Improved web site; IT equipment; Recruitment of audit firm.

The project team is working hard on sustaining and institutionalizing the project’s activities through different practices. First, the general department of training team was involved in every single step since the start of the project. Their staff were mainly responsible for identifying the training gaps, organizing and facilitating the implementation of all trainings, monitoring and evaluating the outcome, ensuring excellent quality of delivery and proposing corrective measures for future activities. Hence, their involvement in each step was like an on the job training of each staff member on future capacity buildings tasks. Second, the project provided trainings on ToT to top performance employees to encourage them to sustain their excellent performance and use them as trainers for further capacity building activities at the Ministry. It is planned to give the same group of trainees three other advanced ToT training to enhance their facilitation skills as moderators and trainers to ensure sustainability of provision of trainings using available resources in the newly furnished training center.

C. Implementation Status of Components Component 1: Organizational and Institutional StrengtheningPrevious Rating: Satisfactory Current Rating: SatisfactorySub-component 1.1: Carry out the Upgrading and Enhancement of existing policies and procedures workflow and organizational structure of the Ministry.Status of Implementation: The procurement process has been launched; deadline for EOI is July 11.

Sub-component 1.2: Strengthening the Ministry’s capacity in specialized new or strengthened Units by training or recruiting consultantsStatus of Implementation:All experts (ex. Strategic Planning Expert, Economist, etc.) are recruited and are constantly supporting effectively the work and operations of the different technical units. In this regard, an additional technical unit was established, namely the Governance Unit by end of 2017, while the existing Research and Decision Support Unit’s operation was improved through the technical advice provided by the Strategic Planning Expert. The support and advice of the Expert was manifested in providing technical advice and on the job training on scientific data collection methods, validation and verification of database tools, report writing, preparing policy

notes, etc. As mentioned earlier, it is planned in the next months to work on improving the Evaluation unit’s role by adding new tasks, more technical staff and revamping its image and mandate to play its actual role as the extended arm of the Minister in evaluating aid projects in the different sectors.

In addition, MIIC has established the following:- Opening of the new investor centre at MIIC premises at GAFI- Launching of initiative “Fekretak Sherketak” under Egypt Ventures to nurture and promote

entrepreneurship and innovation in Egypt through Falak Startups & EFG Fintech’s first cycle, during which MIIC team provided a wide-range of integral support to thirty startups.

- Investment Map of Egypt

Sub-component 1.3: Organize specific study tours for selected senior economic researchers and economic researchersStatus of Implementation: A couple of logistical and administrative required steps to accomplish the subcomponent 1.3 were finalized by project staff. A request was sent to all Head of Sectors and Central Departments in MIIC since beginning of Jan. 2018 to identify their training gaps and propose study tours overseas. Criteria for candidates’ selection were identified in the request to facilitate the selection process for the superiors and guarantee that the right candidates are chosen in an objective way. The following are the main criteria for selection identified in the request of proposals: 1) Candidate is working at the Ministry since more than one year. 2) Candidate is proficient in writing and reading the English language. 3) Candidate’s age is below 55 years. 4) Candidates are committed to their current jobs at the Ministry for at least one year after returning from the study tour.

The Procurement officer has received the results of the training needs assessments and proposals for selected candidates from different sectors and study visits in different Countries. It is worth mentioning that the procurement officer is still receiving many training proposals by the different sectors till the date of the report. As many proposed candidates do not fit the pre-set criteria by the project management, a filtration process is planned by reviewing all CV’s of proposed candidates to ensure that they fit the pre-set criteria (second step). As a further step, each sector will be notified that they are responsible for contacting the training entity by themselves and apply for the study tours, providing the project staff with confirmation letters as proof. As a fourth step, the project proposed to the Bank’s staff in the last meeting’s on 13th of Feb. 2018, to hire a travel agency, specialized to plan and complete all logistical procedures and steps needed related to travel (visa application, flights and accommodation reservation, transportation organization to airports etc.). A detailed training plan including the study tour’s costs and all technical details is currently being discussed with view to finalizing it shortly.

Component 2: Human Resource DevelopmentPrevious Rating: Current Rating: SatisfactorySub-component 2.1: Conduct an in-depth review (HR Strategy) of the ministry’s human resource Status of Implementation: It was agreed upon with the Bank’s staff on 13th of Feb. 2018 to merge the implementation of the HR strategy with “the Upgrading and Enhancement of existing policies and procedures workflow and organizational structure of the Ministry” in one activity. Accordingly, the procurement plan was modified. The procurement process has been launched.

Sub-component 2.2 and 2.3 (merged into one): Design and implement a training program for Senior and Middle Level Staff Status of Implementation: see 2.3 below

Sub-component 2.3: Trainings for staff on specialized training and soft skills and IT skills

Status of Implementation: Combined with sub-component 2.2.The remaining activities 2.2 and 2.3. under this component are about providing capacity building to senior, mid-level and junior technical and administrative staff on different topics including technical, IT and soft skills. To achieve the sub-components, the project hired the consulting firm MDF Training and Consulting on 27th of August, 2017 to design and implement all the training programs for the various staff levels till end of project cycle. The firm started its work by researching the training gap with regard to the above-mentioned topics. The results of the needs assessment showed that the most demanded training courses following a descending order are English language courses, followed by IT programs, trainings on technical subjects and last but not least, soft skills. These results were communicated with the Bank and it was approved to add English language course to the training program content.

10 training programs in soft skills and technical topics related directly to trainees’ tasks at work were offered between the period 28.1.2018-12.04.2018 mostly at the training center of the Ministry . IT trainings were provided externally due to delays in the delivery of the laptops. The total number of trainees till the date of writing the report is 250 trainees through 21 training courses, out of which 54% are female, ensuring a gender balance. 142 were trained on soft skills, while 92 were trained on technical subjects related to their current jobs like Results Based Management, Official Development Assistance, etc. The portfolio of the selected trainees differed in each training. While some trainings targeted top-managers, junior and mid-level staff, other trainings were directed to top performance employees to encourage them to sustain their excellent performance and use them as trainers for further capacity building activities at the Ministry. It is planned to give the same group of trainees three other advanced ToT training to enhance their facilitation skills as moderators and trainers to ensure sustainability of offering trainings.

Participants’ evaluation of the ten offered training courses was documented. All evaluations were positive confirming that new knowledge, skills and attitudes have been acquired and can be transferred to their current jobs. However, two main negative comments were repeated throughout the different courses. First, the short duration of the training (3 days), and second, limited application opportunities and practical examples are offered- especially in the social media training-. Finally, supervisors from the General Department for Training at the Ministry were also present in all trainings, taking their own notes to ensure quality of the training and monitoring progress.

The English training courses will be offered in the last quarter of 2018 for technical staff, as agreed with AfDB.

Sub-component 2.4: Specialized training courses or executive trainings (from 2 to 6 weeks) at specialized institutes abroad

Status of Implementation: plan has been submitted and is being refined based on feedback from AfDB.

Component 3: Enhancing the IT InfrastructurePrevious Rating: Satisfactory Current Rating: Satisfactory

Sub-component 3.1: Purchasing office equipment, computers, laptops, scanners, internal network infrastructure, software, VC equipment for at least two meeting rooms and renovation of training center manifested in two training rooms. Status of Implementation: Four contractors with four different suppliers were contracted to deliver the IT equipment for the training center only. The training center has already been equipped with modern and advanced training equipment and furniture in Dec. 2017. The two training rooms can accommodate 40 persons at a time.

Additional IT equipment needed is currently under procurement process. Sub-component 3.2: Hiring an IT firm

Status of Implementation: The process has been launched and deadline for EOI is July 11.

Sub-component 3.3: Strengthening the Ministry’s capacity in providing timely and accurate information on aid and the status of cooperation

Status of Implementation: Terms of Reference of the design and development of an Information Management System has been launched and procurement process is still ongoing with deadline for EOI is July 11. Sub-component 3.4: Hiring a web designer to revamp the web site

Status of Implementation: The website was officially launched on 19th of February, 2018, in the framework of the president’s visit to the new investment center of MIIC. The new interface of the website is much more user-friendly than the old interface, meaning that the navigation through the new structure is much faster and easier than the older version. The new design and structure of the website reflects the new merge of both Ministries and new developments manifested in the new decree, issued by CAOA, where one can easily understand the difference in the operations of the two Ministries. Information on all donor related programs in Egypt are uploaded and easily accessed. Finally, the website is linked to all investment related activities and social media in Egypt, highlighting main publications and events. It includes much more information on the Ministry’s operations and programs financed by different donors.

Component 4: Project ManagementPrevious Rating: Satisfactory Current Rating: SatisfactorySub-component 4.1: Recruitment of Project Implementation Team (PIT) for duration of project

Status of Implementation: Project Manager, Procurement specialist and Accountant are all on board and their contracts extended on an annual basis based on performance. Sub-component 4.2: Operating costs

Status of Implementation: Funds have been transferred to the special account and disbursements from the special account are being done according to plan.Sub-component 4.3: Recruitment of audit firm

Status of Implementation: The PIT team is on board and their contracts have been extended based on annual performance.

The recruitment of audit firm is at its final stages of the procurement process to audit the financial statements for the period between 26th of Jan. 2016 and 31st of Dec. 2017.


(US$)

(x)


(y)

Total (US$)


4,385,000 4,385,000

Amount Received from 4,385,000 4,385,000

Trustee (b): Actual Amount Disbursed (c): 962,964.60 962,964.60

E. Actual Disbursements of Funds for Direct Project Activities by Calendar Year (US$)

Year Jan-June Jul-Dec Total by Year End2016 0 66,510 66,5102017 198,438 261,404 459,8422018 200,000 0 200,000

F. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)

Year Jan-June Jul-Dec Total by Year End2018 200,000 700,000 900,00020l9 500,000 800,000 1,300,0002020 595,000 700,000 1,295,000Total 3,495,000

G. Disbursements of Funds for Indirect Costs (US$)Disbursed (US$) Available (US$) Total (US$)

70,000 0 70,000

Project Development Objective (PDO): The overall objective of the proposed project is to strengthen the efficiency and effectiveness of the MIIC in aid coordination/management of Official Development Assistance (ODA) and resource mobilization so as to contribute to the socio-economic welfare of the country and the GoE institutional setup.

PDO Level Results

Indicators*

Unit of Measure

Baseline


Frequency

Data Source/

Methodology

Responsibility for

Data Collection


etc.)

Status (18.4.2018)

Jun. 2016

A

Dec. 201

6A

Jun. 201

7A

Dec. 201

7A

Jun. 201

8A

Dec.

2018F

Jun. 201

9F

Dec. 201

9F

Jun.202

0F

Dec. 2020

F

Indicator One: Official annual ODA (grants and loans) channeled through MIIC

USD 2014: USD 5.5 billion

Tbd 4.0 not known

4.5 6.5 6.5 6.7 6.7 6.87 0 Annual AIMS MIIC Annual statistics of all ODA flows per annum through MIIC

Indicator Two: MIIC supported with strengthened new Units, and processes to deliver services to its constituents (other line Ministries)

Ministerial decisions

Current structure

Not done yet

Not done yet

In place

1 - - - - - Annual Ministerial decisions;MIIC web site

MIIC New organigram, new units established, new processes

1 New technical unit established (governance unit) and one Unit (Research and Decision Support) strengthened.

Indicator Three: Capacity built of MIIC staff to better service delivery

Number of people trained in all fields including thematic, soft, IT, management and specialized areas in-house and abroad

Current levels

Not yet started

Not yet started

Not yet started

0 250 350 450 500 350 0 Annual Annual reports of project; Training reports

MIIC-PIT Number of staff receiving all forms of training (overseas, in-house, on-the-job, study tours, specialized, soft, IT managerial courses..etc)

133 trainees


Intermediate Result (Component One): Organizational and Institutional Strengthening

Intermediate Result indicator 1a: Organizational and institutional upgrade report endorsed

Report None 0 0 0 0 0 0 1 1 1 0 Once Report endorsed by Minister through Minutes of Committee or Minister’s Signature

MIIC-PIT Having in place an approved organizational and institutional assessment report of MIIC

0 (see explanations under comp 1)

Intermediate Result indicator 1b: Strengthening or Establishing new Units

Organigram

Current organigram

0 0 0 0 2 3 3 0 0 0 Annual Orgnizational and institututional report

MIIC-PITWeb site

Job descriptions, mandates and functions are aligned and modified based on the results of the report. MIIC Departments are carrying out their duties in a more effective way

1 New technical unit established (governance unit) and one Unit (Research and Decision Support) strengthened.

Intermediate Result indicator 1c: Staff participating in study tours

Quantitative

0 0 0 0 0 0 10 5 10 5 0 Annual Progress reports

MIIC-PIT Number of staff going on study tours to learn of best practices

0

Intermediate Result (Component Two): Human Resource Development

Intermediate Result indicator 2a:HR strategy/skills audit report endorsed

Report 0 0 0 0 1 1 1 1 Annual Report endorsed by Minister through Minutes of Committee or Minister’s Signature

MIIC-PIT HR strategy for MIIC is ready

Intermediate Result indicator 2b:Staff trained in soft and IT areas skills

Number 0 0 0 0 0 170 245 315 350 275 0 Annual Progress reports

Training reports from each course

MIIC-PIT Various training courses organized for all levels of staff in soft and IT skills

60 participated in the soft skills trainings, while the IT trainings will start by end of April, 2018

Intermediate Result indicator 2c:Staff attending specialized technical training courses in various thematic areas

Number 0 0 0 0 0 79 105 135 150 150 0 Annual Training reports

MIIC-PIT Sending selected staff at specialized technical trainings on relevant topics to enhance skills of MIIC staff

73 participated in the specialized technical trainings.

Intermediate Result (Component Three): Enhancing the IT Infrastructure

Intermediate Result indicator 3a:Different Departments, training center and Units at MIIC provided with appropriate equipment and support

Number Current levels of equipme

nt

Units operatio

nal

0 0 0 # Various equipme

nt delivered

# # # # # Annual Asset Inventory List

MIIC-PIT Various equipment for offices, staff, Video Conference equipment. In addition, renovating two training center (including two rooms) and providing them with advanced

Two rooms of the in-house training center furnished and equipped with modern teaching aids and equipments

services training equipment

Intermediate Result indicator 3b:IT infrastructure upgraded

Number Current state

0 0 0 # # 1 # # 0 0 Annual Assert Inventory listNew IT systems in place

MIIC-PIT IT infrastructure upgraded

The ToR is being finalized

Intermediate Result indicator 3c:Aid Information Management System operational

Number 0 0 0 0 0 0 0 1 0 0 0 Annual New AIMS

Generation of reports

MIIC-PIT New AIMS will allow better monitoring of all ODA data

In procurement process.

Intermediate Result indicator 3d:New MIIC web site launched

Number Current web site

0 0 0 0 1 0 0 0 0 0 Annual Web site MIIC-PIT New web site launched and operational

Website launched in Feb, 2018.

‘A’ for actual results achieved and ‘F’ for forecast or projected results

Strengthening Capacity of the ACA to Combat Corruption in Egypt

A. Basic Project InformationActivity Name: STRENGTHENING CAPACITY OF THE ADMINISTRATIVE CONTROL AGENCY TO COMBAT CORRUPTION IN EGYPTCountry Name: Egypt Name of Implementation Support

Agency(ies): African Development BankName of ISA Project Leader: Carina Sugden


Recipient Entity: Administrative Control Agency


Hany Mansour, Director of International Cooperation ACA, [email protected]




Steering Committee Approval Date: May 2017

Project Implementation Start Date:August 2017

Project Closing Date:01.August 2020



Enhancing Economic Governance


Investing in Sustainable GrowthChoose an item.Choose an item.

B. Summary of Project Implementation Progress and Key Issues

Project Development Objective: Strengthen the Government of Egypt’s capacity to implement anti-corruption strategies


Satisfactory



Brief Summary of Project Implementation Status: The conditions for first disbursement were completed in January and thus project implementation has started.

Procurement plan and work plan were submitted and approved.

First disbursement into the Special Account was processed on Jan 22 for USD 280,000.


The project was launched during a mission led by Task Manager and team from COEG from 13-22 February 2018. Some of the key recommendations with regards to project management include: Mr. El Behiry will be the official Project Coordinator and he will be one of the signatories for all direct payments and disbursement requests. The Project Steering Committee is yet to be established. MIIC will provide support for project management – financial management and procurement and Monitoring and Evaluation.

Meeting was also held with the WB team in Cairo and visiting mission from Washington DC as there is some support being channeled to ACA from a Governance project managed by WB (with funding from UK/DFID). There is coordination on the ground in Cairo with the AfDB team.

The rating for implementation progress is increased from Moderately Unsatisfactory to Moderately Satisfactory as a result of recent progress in implementation and disbursements.

Actions to be Taken Responsible

PartyExpected Date of Delivery

Nomination of PIU Project Coordinator ACA doneSet up of special account for the project MIIC done

C. Implementation Status of Components 18

Component 1: Strengthening capacity of ACA to effectively combat corruption in Egypt Previous Rating: Choose an item.


Cost (US$): 2,107,174

Sub-component 1.1: Improved capacity of ACA staff to counter and prevent corruption: The first activity will be the conduct of an updated capacity assessment of ACA, which includes an assessment of skills and gaps of ACA staff, which will enable the completion of the design of the training plan to be supported by the project. A multi-pronged approach will be provided combining trainings (locally and internationally) with study tours and on-the –job training. A package of medium and short term regional and overseas training courses19will be provided for a select number of staff in specialized areas, such as anti-money laundering; tax fraud and evasion; digital forensics; managing hotlines and data management, cyber security, corruption risk management. A training of trainers’ course will be developed and

18 Include for each component: (i) qualitative achievements, (ii) key milestones (current or future), (iii) any significant changes in project components or budget reallocations, and as applicable (i) reasons for implementation delays, (ii) implementation challenges, (iii) funding status, and (iv) other relevant information.19 Several anticorruption institutions offer specialized training courses (for a fee) and these have been identified by ACA and include such institutions such as International anti-corruption academy – Vienna, Malaysian anti-corruption academy – Malaysia, Hertie school of governance –Germany, United Nations Interregional Crime and Justice Research Institute (UNICRI) – Italy and OECD International Academy for Tax Crime Investigation – Italy

provided through a local firm, in order to train a core team to deliver trainings to larger numbers of staff in-house. The project will also provide for a package of local training in use of IT, which will benefit close to 200 staff. Study tours will be organized annually for ACA staff to experience firsthand how other anti-corruption agencies are structured and work, the study tours will specifically focus on areas of work and systems and procedures that ACA is aiming to put in place such as integrated complaints management system; media center and corruption risk assessments. ACA will prepare a detailed 12 month training plan for review and approval by the Bank.

Status of Implementation: Partially started: study tour plan for first half of 2018 was presented which includes visits to USA and Italy. The first study tour visited USA for six senior ACA staff to share knowledge and expertise in the fields of Good governance, Anti-corruption, combating money laundering and fighting organized crime. Visits were made to World Bank, UN and NY Police department.

Contract was also signed for English as a Second Language (ESL) training for ACA staff who are not proficient in English. Sub-component 1.2: ICT systems upgraded for improved information management, including complaints referrals and media monitoring: This output will be delivered through a series of activities, including provision of basic IT equipment and internet provision to 24 ACA offices across Egypt; the establishment of an integrated complaints management system- and hotline, which will entail technical assistance (firm) to undertake a detailed study of the requirements for an integrated complaints management systems, which would also examine the required business processes and institutional set-up; proposing options for its design; preparing the bidding documents for the systems developer and for the required IT equipment; managing the procurement process and advising the ACA on the management of the project. Building on the design a systems developer would be sourced to develop and customize software for the complaints management system and ensure its full implementation, including the installation of the necessary hard-ware and IT equipment. In addition, under this component the project will also support the strengthening of the media center, through provision of TA to review and propose areas for upgrading and manage the purchase and installation of a media monitoring tool and required IT equipment, which will also be provided for by the project. Once the new systems are implemented, the project will also provide for an independent survey of the complaints system, with the participation of the users (government bodies as well as citizens) to review its functioning, determine the results, and to identify any gaps to be addressed.


Component 2: Advocacy, Awareness Raising and Knowledge Management Previous Rating: Choose an item.

Current Rating: Satisfactory Cost (US$): 1,051,996

Sub-component 2.1: Corruption Risk Assessments: In order to better target anti-corruption

actions, technical assistance will also be provided to introduce corruption risk assessments as a tool to better target actions in the fight against corruption. The project will support the completion of at least 3 sectorial corruption risk assessments in service delivery sectors with high corruption risk as identified by ACA once project starts.

Status of Implementation: Not yet startedSub-component 2.2: Increased corruption awareness of Government officials, CSOs and citizens: This output will be delivered through the design and implementation of a corruption prevention communications strategy, which will include a 2 year media campaign, using all media, principally, tv, radio, print, billboards, social media and any other related media channels. A local/ international firm will be recruited to develop the strategy and coordinate its delivery. This sub-component will support the organization of corruption awareness building workshops and national dialogue for different groups of stakeholders, including civil servants, law enforcement and related public and private institutions, parliamentarian’s media and CSOs, to build awareness on the need to combat corruption. This includes a series of workshops to engage a dialogue around the findings of the corruption risk assessments in high risk sectors, as well as work on new pieces of legislation to fight corruption.

Status of Implementation: Media adviser was recruited to provide technical assistance for the development of the media activities and campaign. A contract for anti-corruption awareness campaign was signed for airing of the campaign during the Ramadan period; however due to technical issues, the campaign was not launched live during the ramadan season and still has not been aired. Sub-component 2.3: : Strengthened knowledge and South-South Cooperation (SSC) in the combat against corruption. Activities under this sub-component will include support towards developing and in-house training programme in ACA through innovative use of IT and e-learning. Other activities that will be supporting include Egypt’s participation in regional conferences and events around anti-corruption- including participation of Egypt in international events, as well as hosting of regional events to foster SSC. Other activities include facilitating study tours of African Peers to Egypt.


Component 3: Project Management Previous Rating: Choose an item.


Cost (US$): 190,800

Sub-component 3.1: This includes nomination of a project coordinator from within ACA, recruitment of a procurement officer, financial management officer and a full time monitoring and evaluation officer. This component will also provide for operating costs associated with the many planned activities.

Status of Implementation: Done: project coordinator is Mr. El Behiry; procurement is being handled by MIIC (Mr. Mahmoud Gamal El Din) and FM (Mr. Bahaa). Monitoring and Evaluation officer has not been recruited.

[add rows as needed]

D. Disbursements of Transition Fund Funds for Direct Project Activities20

20 Funds for direct project activities should include approved allocations for both country- and ISA-

Country-Execution (US$)

(x)

Direct Cost21 for ISA-Execution

(US$)(y)

Total (US$)


3,350,000 NA 3,500,000


3,350,000 NA 3,500,000


280,000 NA 280,000

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)22

Year Jan-June Jul-Dec Total by Year End2017 US 0 US 0 US 02018 US 50,000 US 300,000 US 350,0002019 US 500,000 US 1,000,000 US 1,500,000

F. Disbursements of Funds for Indirect Costs (US$)Disbursed Available Total150,000 0 150,000

executed activities.21 ISA direct costs are those costs related to the ISA’s direct provision of technical assistance within the project. Please also refer to Paragraph 47 of the Operations Manual at (http://www.menatransitionfund.org/content/apply-funding) 22 Enter actual disbursements for years past.

http://www.menatransitionfund.org/content/apply-funding

G. Results Framework and MonitoringProject Development Objective (PDO): To strengthen the Government of Egypt’s capacity to implement anti-corruption strategies


MeasureBaseline2017 A




Collection


definition etc.)2017 (A)

2018(F)

2019(F)

2020(F)

YR5

MENA TF Indicator 1: Government bodies and institutions including Local governments supported – in this case it is the ACA, including at the sub-national level that will be supported, the key indicators that will be used to measure institutional strengthening of ACA include:

- Laws critical to combatting corruption approved

- Number of investigations concluded yearly by ACA

- Number of ACA offices equipped with IT systems upgraded and connected to internet

- Integrated complaints system established and in use.

Number of laws, investigations, number of equipment and number of complaints

0

250 investigations

0 offices connected to internet

0 integrated complaint system

0 28 Offices

2 laws

1 integrated complaint system operational

300 investigations

Yearly Annual report, Project Progress reports, internal statistical reports

ACA Number of investigations carried out by ACA

Contract for internet services signed and operational

Number of laws gazeted

Integrated complaint system generating data and fully operational

MENA TF Indicator 1: Staff Trained- 280 ACA staff will benefit from trainings and 500 civil servants attended ACA workshops. Key indicators that will be used to measure progress in the project include:

- Number of staff trained advanced AC skills medium/ short term training courses overseas (USA, Europe, Asia)

- Number of

Number of staff

0 0 150 250 Yearly Annual Report, Project Progress reports

ACA Training reports

Government staff attending local trainings and workshops

- Number of seminars and workshops for African counterparts

Indicator One:# investigations concluded yearly by ACA

number 250 (2015/16)

300 Yearly ACA records ACA

Indicator Two:Average # investigations per member yearly

number 2 4 Yearly AC records ACA

Indicator Three: laws critical to combatting corruption approved

Quantitative/ qualitative

No whistle blower law or information law

Laws approved

End of project

Gazetted legislations, cabinet decrees

ACA

Indicator Four: # of corruption complaints made public through hotline

number No complaints referral system

System in place

End of project

ACA reports and reports generated by the system

ACA


Intermediate Result (Component One): Strengthened capacity of ACA to effectively combat corruption in Egypt

Intermediate Result indicator One: Staff trained

Number 70 0 120 250 quarterly ACA training reports

ACA Number of staff attending trainings financed by the project

Intermediate Result indicator Two: Integrated complaints system set up

System in place

In place and in use

ACA IT infrastructure and complaints system in place and in use

Intermediate Result (Component Two): Advocacy, Awareness and Knowledge Management on anti-corruption

Intermediate Result indicator One: Corruption Risk Assessments

3 risk assessments

None Risk Assessments

2019 Reports ACA Risk assessments developed to inform future strategy

Intermediate Result indicator 2 year Initiat AC yearly ACA reports ACA TV ads,

Two: Media campaign launched on anti-corruption

Media campaign

ed but not aired live yet

campaign during ramadan

and the communication products

billboards, radio ads, other materials developed to sensitize public

Intermediate Result indicator Three: E-learning Programmes sithin ACA

Classroom trainings

E-learning programmes

ACA New training modules developedusing IT

Intermediate Result (Component Three): Project Management

Intermediate Result indicator One: PCU staff recruited

Staff hired

PCU forme

d

2017 MOIIC

Enhancing Social Housing GovernanceA. Basic Project Information

Activity Name: Enhancing Social Housing Governance

Country Name: Arab Republic of Egypt Name of Implementation Support Agency(ies): The World Bank

Name of ISA Project Leader: Laila Ashraf AbdelKader Ahmed


Recipient Entity: Social Housing FundName and Email of Recipient Entity Contact: May Abdel Hameed, [email protected]









Secondary Pillar(s):Investing in Sustainable GrowthInclusive Development and Job CreationChoose an item.

B. Summary of Project Implementation Progress and Key IssuesProject Development Objective: The objectives of the project are to (i) strengthen SHF policy tools in order to improve the efficiency of the housing system in Egypt and (ii) enhance the governance and the institutional capacity of the Social Housing Fund to facilitate the achievement of the GoE’s Inclusive Housing Finance Program (1 million houses).





Brief Summary of Project Implementation Status: The project was approved by MNAVP on August 1, 2016. The Bank has provided support in the following aspects:

- The social housing law, that has been ratified in June 2018- Financial sustainability of SHF (an ongoing effort)- Demand assessment - Private sector engagement in social housing- Developing the rental model- Developing the House Price Index- Training in IT and MIS

Main Actions to be Taken Responsible Party

Expected Date of


DeliveryWorkshops: Conduct several events to: (a) further improve the application process and highlight the importance of transparency among lenders; and (b) provide technical assistance for private sector engagement in social housing

The World Bank

12/31/2018

House Price Index (HPI): Mobilize a team to work alongside the CBE to develop a prototype model for HPI

The World Bank

10/31/2018Demand and Rental Assessment: Proceed with the procurement of a selected entity to tailor and conduct the demand and rental assessment

The World Bank

6/30/2019

Capacity Building of the SHF: (a) provide SHF, CBE and relevant stakeholders support by offering a Housing Finance Course; and (b) provide training in IT and MIS

The World Bank

12/31/2018


Component 1: SHF Policy Tools: This project will aim at building the capacity of SHF to be able to develop a set of policy and strategy tools for the housing sectorPrevious Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,800,000Sub-component 1.1: Capacity for Developing a new Social Housing Strategy

Status of Implementation: The Bank is supporting the SHF’s effort to secure its financial sustainability. A financial sustainability model was created, taking into account several assumptions and scenarios on construction and sales to further inform decision making processes at the SHF. Furthermore, the Bank is also assisting the SHF with the achievement of a social housing demand assessment study in order to adapt the quality and quantity of housing unit. These two activities are part of the social housing sector strategy.

The first study (financial sustainability assessment of SHF) was completed in January 2018, in partnership with PwC. The second one is work in progress. The team reached an agreement with the National Statistics Bureau (CAPMAS) to conduct the study.

Sub-component 1.2: Capacity for Engaging the private sector in affordable housing through identifying at least one public-private arrangement

Status of Implementation: The Bank continued assisting the SHF in its effort to organize workshops to benefit from international experiences in private sector participation schemes in social housing. A Study Tour was arranged for the SHF management team in DC during the Annual Meetings (Oct 13-15, 2017). Furthermore, the team arranged for the SHF to showcase the Egyptian experience and benefit from international experiences by participating in the Housing Finance Conference held in May 2018 in DC.

Sub-component 1.3: Capacity for developing at least one public program aiming at improving access to rental units for low-income household

Status of Implementation: The Bank has been advising the authorities on best practices for the parameters of the public rent component. SHF has already launched the rental program with a pilot project of 6,000 units.

Sub-component 1.4: Capacity for Developing the Housing Price Index (HPI)

Status of Implementation: The Bank is currently discussing with SHF, the Central Bank of Egypt (CBE) and other stakeholders about the construction of a HPI. The Bank is advising on

the list of variables that could be included in the HPI model and possible sources of data. The CBE has requested the World Bank’s assistance in providing the capacity building needed to create a prototype model for HPI modeling purposes. This prototype will then be used to: (i) identify the sources of data needed, and (ii) facilitate the dialogue with relevant authorities, in order to expedite the implementation of building the HPI. An international specialist has been hired to help out with this task, and work is underway.

Component 2: Improving Governance and Institutional Building in the Social Housing Sector: The grant will be utilized to build the capacity of GoE to be able to establish the governance structure and institutional settings of the SHF.Previous Rating: Moderately Satisfactory


Cost (US$): 650,000

Sub-component 2.1: : Capacity building of SHF internal units and functions

Status of Implementation: The Bank has been discussing with SHF management the best practices in internal audit and governance. Based on that, SHF has established its internal audit committee and function. The quality of the functions needs improvement, which is a key area for capacity building provided by the Bank.

Sub-component 2.2: Building the capacity of SHF in Human Resources Management

Status of Implementation: A number of experts have been hired to build up the capacity of SHF especially in the IT space and to help in the smooth transition following the recently approved merger law of SHF and the MFF.

Sub-component 2.3: Building the capacity of SHF in organizational issues

Status of Implementation: The Bank is providing technical opinion to SHF and the authorities on the merger law for SHF and MFF. The Bank will continue supporting SHF on organizational issues. The law was recently ratified in June 2018.

Sub-component 2.4: Training and Capacity building for SHF staff

Status of Implementation: Capacity building for SHF staff is in progress in areas of IT and MIS. The Bank provided several trainings to SHF staff to develop their capacity in MIS of the demand subsidy system. Also, the CFO joined the Housing Finance course at the Wharton School of Business in June 2018.


(US$)

(x)

Direct Cost for ISA-Execution

(US$)(y)

Total (US$)


2,450,000 2,450,000


2,450,000 2,450,000


853,448 853,448


Year Jan-June Jul-Dec Total by Year End2013201420152016 158,161 158,1612017 121,502 300,000 421,5022018 400,000 600,000 1, 421,5022019 500,000 528,498 2,450,000


53,970 0 53,970


Project Development Objective (PDO): The objectives of the project are to provide technical advice and capacity building support to SHF to be able to finalize a sound institutional set-up and prepare a housing strategy, which would include steps to ensure private sector engagement.

PDO Level Results Indicators* Unit of Measure Baseline




Collection

Description (indicator definition etc.)

Jul 2016 –

Jun 2017

A

Jul 2017 –

Jan 2018

A

Jul 2018A

Indicator 1: Improved good governance in the public sector

Yes/No No Yes Yes Yes Annual SHF SHF/WB Enhanced capacity in SHF in internal governance, monitoring, compliance and transparency and accountability.

Indicator 2: Increased effectiveness of social safety net and other programs to the most vulnerable

Yes/No No Yes Yes Yes Annual SHF SHF/WB GoE’s Housing strategy supports reform of government subsidy policies and thereby promote more efficient and equitable allocation of resources

Indicator 3: SHF adoption of New Housing Strategy

Yes/No No No No No Annual SHF SHF/WB

Indicator 4: SHF definition of at least one public-private arrangement

Yes/No No No No No Annual WB/SHF SHF/WB Reaching a workable model to engage the private sector in social housing

Indicator 5: SHF development of at least one public program aiming at improving access to rental units for low-income households

Yes/No No No Yes Yes Annual WB/SHF SHF/WB Providing technical capacity building for SHF through sharing international best practices of rent programs.

Indicator 6: SHF implementation of a Housing Price Index

Yes/No No no No No Annual SHF WB Developing and continuously updating HPI


Component One: Developing a new housing strategy

Intermediate Result indicator One: SHF Development of a new housing strategy

Yes/No No No No No Annual WB/SHF SHF/WB

Intermediate Result indicator Two: Workshop on Housing Strategy

Yes/No No No No No Annual WB/SHF SHF/WB

Component Two: Institutional Set-up of SHF

Intermediate Result indicator One: sharing international experience with SHF in internal governance

Yes/No No Yes Yes Yes Annual SHF WB

Intermediate Result indicator two: Sharing international experience with SHF in monitoring


Intermediate Result indicator three: Sharing international experience with SHF in accountability and transparency


Intermediate Result indicator four: SHF to adopt operation manual

Yes/No No Yes Yes Yes Annual SHF/WB WB

Intermediate Result indicator five: SHF to deliver a feasibility study on the effectiveness of the Housing Price Index

Yes/No No No No No Annual SHF/WB WB

Intermediate Result indicator six: Number of trainings delivered to SHF staff

number 0 2 0 2 Annual SHF WB