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

December 30, 2018

Table of Contents

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

Individual Project Progress Reports as of December 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

JUN 2018

DEC 2018

JUN 2018

DEC 2018

EBRD MSME Support Programme and the Social Fund for Development 2/20/2013 4/1/2013 7/30/2019 2,936,080 54% 812,500 S S S S

AfDB Green Growth: Industrial Waste Management and SME Entrepreneurship Hub 5/15/2013 12/19/2013 9/30/2018 2,000,000 74% - S S S S

EIB Regional Integration through Trade and Transport 5/15/2013 10/31/2014 12/31/2020 4,230,000 17% - 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 37% 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 24% - S S S S

EBRD Clearing & Settlement Depositary System for Government Securities 6/11/2014 7/1/2014 7/1/2020 3,851,900 68% 3,220,000 MS MS MS S

WB Inclusive Regulations for Microfinance Project 6/11/2014 8/1/2014 6/30/2020 4,505,000 64% - 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 74% - S S S S

IFC Leveraging Regulatory Reform to Advance Financial Inclusion 5/18/2015 8/1/2015 6/30/2020 950,000 64% 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 8/31/2019 633,333 98% - 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% - MS MS MS MS

WB Enhancing Social Housing Governance 5/30/2016 6/1/2016 12/30/2020 2,503,970 57% - MS S MS S

AfDB Strengthening Capacity of the ACA to Combat Corruption 5/23/2017 8/1/2017 8/1/2020 3,500,000 20% - S S MS MS

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

WB Energy/Social Safety Nets Sector Reforms Technical Assistance 5/15/2013 11/25/2013 7/31/2018 7,097,200 99% - MS CLSD MS CLSD

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

Individual Project Progress Reports as of December 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]

Director Egyptian National Cleaner Production Center (Vacant)

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$): 1,444,822 (representing 74.5% of the grant)

Steering Committee Approval Date:

5/15/2013

Project Implementation Start Date: 12/19/2013

Project Closing Date:

9/30/2019

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 after a 6 month slow down due to procedural restructuring within the Ministry of Trade, Industry and SMEs.

Significant project outcomes include: 1. The waste exchange platform : The platform, in its piloting phase, continues to generate interest for

waste exchange within Egypt and abroad. Ass end of December 2018, the exchange platform has 163

mailto:[email protected]

registered companies (up from 108 six months ago), 50 requests (up from 38 requests six months ago), and 17 successful transactions (up from 11 six months ago). In terms of interest from abroad, the SME Foundation of India fielded a mission to visit ENCPC and learn about the waste exchange platform to replicate it in India; whilst a European company visited Egypt in search of plastic waste for sale, following recent EU laws, and was interested through the platform results; and the Sudan Clean Production Center was interested in replicating the waste exchange platform.

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 continues to engage on this issue, as the law was rejected and is in need of further fine-tuning.

3. Support to entrepreneurs : As a result of the follow up of the beneficiaries of the entrepreneurship awareness and development component, the following was reported: 2 Leha Keema start-ups exchanged waste during one of the industrial symbiosis workshop; one start-up sold rubber-pieces from recycled car tires to a cement factory in Alexandria; one start up sold eco-bricks it produces and licensed an outlet in Mall of Egypt; and one entrepreneur working in fish-feed was selected from amongst 16 entrepreneurs from Africa to attend training in Korea financed by the AfDB. .

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 was completed in 2 industrial cities, 10 th of Ramadan and 6th of October and now feeds into the waste exchange platform.

6. Waste hub and industrial waste incubator : The project finalized a study to establish a waste hub in 10th

of Ramadan City for entrepreneurs, planned to be managed by a private sector entity. Equipment for the hub will be procured soon under the project; and the legal framework for the management of the hub will be initiated soon. On the other hand, a consultant has been recruited to study the establishment of an industrial waste incubator with a university and will be launching a mission to Egypt soon

Disbursement related issues: Following a prolonged delay in disbursement because of internal restructuring issues within the Ministry of Trade and Industry, this issue was resolved in December and translated into an improvement in the processing as a result of the appointment of a new representative from the Ministry of Trade and Industry to sign all purchasing orders and contracts, and a new appointee to follow up on the donor-financed project. Till end of December 2018, a total of USD 1,444,822 , was disbursed of which USD 1,054,500 through special account + 390,322 through direct payment. In January 2019, a few requests were also submitted and are currently under processing.

Audit: The audit report for the period January-September 2018 is under finalization.

Project Management: There have been some significant changes within the management of the ENCPC, with the resignation of Eng Ali Abo Sena the Director of the Center, as well as the key officer working on entrepreneurship development. The ENCPC is in the process of recruiting their replacements. The project also suffered from staff turn-over and has been in the process of recruiting 3 consultants to replace those who resigned and those whose contracts were not extended namely: the Chief Technical Advisor, the Senior Expert, and the Project Manager. Staff turn-over and the slowness in recruiting replacements has impacted the performance of the project.

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: Completed. . 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$): 165,000 (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 awarded and in process of implementation.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 awarded and in process of implementation.

Sub-component 2.7: Input to the legislation on Industrial waste: Status of Implementation: Assignment awarded and in process of implementation.

Component 3: Raising Awareness and capacity building of stakeholders on IWEX Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 595,000 (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: Completed 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 completed. Sub-component 3.7: Capacity Building for Waste Council

Status of Implementation: Assignment cancelled following request of Ministry. 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 in process of implementation. 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 impediments.Sub-component 3.10: Preparation of documentary on IWEXStatus of Implementation: Activity awarded and in process of implementation.

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 completed an assignment to and identifed the agribusiness sector as the most appropriate sector to be serviced by the Hub. In addition, identification of machines to be purchased for this hub has been done. Currently, preparation for the tendering of the machines is on-going, as well as the legalities related to the out-sourcing of the hub to the private sector. 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 awarded and in process of implementation.. Sub-component 4.4: Procurement of equipment for incubator and working spaceStatus of Implementation: Under preparation towards tendering.

Component 5: Project Management

Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$) 370,000Sub-component 4.1: Recruitments of staff:

Status of Implementation: Following resignation of coordinator, the resignation of the Chief Techncial Officer and the non-extension of the contract of the Senior Policy Expert, replacements are in the process of recruitment. Sub-component 4.2: Purchasing of computers, equipment, and vehicle

Status of Implementation: Mostly completed, pending equipment related to the entrepreneurship agribusiness hub and the incubator. Sub-component 4.3: Conduct independent external audit

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

Sub-component 4.4: Project Completion Report Status of Implementation: Assignment awarded and an interim report has been submitted.

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): 1,444,822 0 1,444,822

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 224, 536 32,424 256,9602019 200,000 295,178 495,178Total 1,940,000

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

60,000 0 60,000

G. Revised Results Framework and Monitoring Green Growth: Industrial Waste Management and SME Entrepreneurship Hub in EgyptProject 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 Baseline

Cumulative Target Values**Frequency

Data Source/Methodolog

y

Responsibility for Data Collection

Description (indicator definition etc.)

YR 1 YR 2 YR3 YR 4 2017

YR52018

Yr 62019

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)

System utilized (A)

5th & 6th year

Project completion reports

ENCPC - PMU

System is running and is utilized by registered industrial establishments. 163 registered users, , 50 requests for waste; technical support provided to 37 cases; and 17 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 RESULTSIntermediate 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) 2 (A) 5th & 6th year

Project progress report

ENCPC PMU

10th of Ramadan Mapping completed as well as mapping of. 6th of October. 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) 2 (A) 5th and 6th year


ENCPC PMU

2 inventories available within ENCPC. .

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 measure

s adopted

(F)

Policy measures adopted (F

5th and 6th 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 but was deemed requiring additional fine-tuning by Parliament. The Project is engaging with the Ministry of Environment regarding further support in this area.

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

Intermediate Result indicator

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

341 (A) 3rd, 4rd and 5th year

Project reports

ENCPC PMU

One: No of trainees from stakeholders and support institutions 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)

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) 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)

28 direct (A)84 indirect (A)

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$): 669,661 (direct) and 180,000 (indirect)

Total: USD 849,661

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 a steady progress since beginning of this year. 46.48% (USD 1,273,606) of the grant has been committed to various contracts of which 52.56% (USD 669,661) has already being disbursed. Activities under component one is progressing well with the completion of the training needs assessment and identification of proposed training courses. Under component 2 all IT and office equipment has been procured and successfully delivered. Restoration of rare books under this component reach 60% and expected to be completed as planned. The three planned study tours under component 3 has been successfully completed, however mainstreaming social Inclusion and decentralization training under this component is still under preparation. Under component 4 an implementation support consultant has been recruited and on board. Furthermore, procurement of computers and video conference equipment for the training center is underway. With the present striding progress, disbursement is expected to remarkably increase in the 1st Quarter 2019.

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 activities under this component have reached an advanced stage of completion.

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 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 and based on needs assessment carried out, the training courses were classified for tendering purposes in five proposals as follows: (i) English language, (ii) French Language, (iii) Soft Skills, (iv) Specialized courses, (v) and (v) IT skills. The Bank signed contract with British Council Egypt for English language training and courses started in August 2017 and ended in February 2018. The training was provided to 69 staff for 59 days. At the date, 67 staff have completed the training while 2 persons didn’t not attend the training for different reasons. The training department requested a second training session to scale up the English language level of the existent cohort on the technical skills. Consequently, a contract was awarded to Amideast Institution for an amount of USD 88,007 to train 200 staff in English Language which is already started after placement tests is completed. Proposals evaluations for contract awarding of other training programs including: French Language, Soft skills, Specialized courses, and IT skills were completed and negotiations with winning bidders will be finalized by end of January. It is expected that 60 staff will be trained in French, 350 staff in soft skills171 staff in IT skills and 397 staff in specialized courses. To continue training program after the project and for sustainability, the Project will establish state of the art training center for which the procurement of VC equipment, computers and furniture are under procurement.

Field Visits: 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. Five field visits are planned to Bank-financed projects as well as other development partner’s in a variety of sectors such as energy, microfinance, agricultural rehabilitation, water and sanitation. Currently, two field visits to Bank-financed projects namely: Gabal Asfer Wastewater Treatment Plant (Phase II-Stage II) in Cairo and Ain Sokhna 1300 MW Supercritical Thermal Power Plant in Suez, are under preparation and will take place in 1st quarter 2019.

Component 2: Institutional DevelopmentThis component was reviewed to include the following activities: (i) Review of status of rare books, (ii) Restoration of rare books, (iii) IT and office equipment including IT securitization, iv) Security devices and network switches.Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1,223,000Status of Implementation

Review of status of rare books: The consultant has completed the first 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, and 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. Per request of the Parliament, the consultant awarded a second contract to supervise implementation of assignment.

Restoration of rare books: A contract was awarded to the Grand Egyptian Museum (EGM) to undertake rare books restoration assignment for an amount of 1,970,700 EGP. The restoration started on 28 June 2018 and currently 60% of restoration has been completed. The restoration is expected to be completed in March 2019.

IT and office equipment: The procurement process for all types of equipment has been awarded. All equipment comprising of 100 computers, 4 servers and back up storage were delivered to Parliament in December 2017. Additionally, installation of ACs and backup storage and fiber optic cables have been completed.

Security devices and network switches: A contract was signed with the SEE supplier for an amount of USD 265,000 to deliver network switches and security devices for duration of 21 weeks.Component 3: Case study: Mainstreaming Social Inclusion and Decentralisation:This component will support: (i) Development and implementation of dedicated training program, (ii) Study tours.

Previous Rating: Moderately Unsatisfactory

Current Rating: Moderately Satisfactory

Cost (US$): 257,000

Status of ImplementationDevelopment and implementation of dedicated training program: The TOR and shortlist of service providers were prepared and are under finalization. The bid is expected to be lunched in early February 2019. The training will target the Members of the Parliament (MPs) and staffers, particularly those who work in the specialized committees in order to help fulfil their legislative and oversight rules successfully. Together with Parliament, the training needs were identified covering the following priority topics in accordance with the 2014 Egyptian Constitution:(A) Social Inclusion: (i) Understanding Social Inclusion and the risk associated with exclusion, (ii) Social Accountability, (iii) Targeted Policies promoting social inclusion (elderly, gender, child, disability, pro-poor, ethnic groups, etc); (iv) Informality and policies of formalization, (v)International Experiences in social and economic inclusion, (vi) Case studies for Egypt on (i) formalization of domestic workers; and inclusion policies for the Sinai, Upper Egypt or any other similar area.(B) Decentralization: (i) Overview on Decentralization and its importance, (ii) Process, mechanisms and stakeholders of decentralization with a focus on roles, responsibilities, accountability and monitoring tools, (iii) Overview on local planning and budgeting, (iv) Decentralization of service delivery and local community development, (v) International Experiences (at least 3 countries), and (vi) Case- Study from of Egypt (at least 2 topics)The training will be conducted through a series of inter-active workshops that build upon one another and result in the selection of policies and reforms for a specific topic. It is expected to have a total of 6 workshops each will cover two to three topics identified above.

Study Tours: The three planned study tours has been completed. More than thirty Parliament members visited Japan, Russia and Korea

Component 4: Project Management: The activities under this component include: (i) Recruitment of implementation support consultant, and (ii) Travel and transportation expenses, and (iii) Contingency.Previous Rating: Moderately Satisfactory

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

Status of Implementation Recruitments of implementation support consultant: A consultant was recruited for six months renewable and is currently onboard supporting project implementation.

Travel and transportation expenses: An allocation of $ 30,000 is allocated to meet the expenses relating to logistic and other related costs.

Contingency: an allocation of $ 30,000 is allocated to cater for unforeseen costs.

D. Disbursements of Transition Fund Funds for Direct Project Activities

Country-Execution (US$)

(x)


(y)

Total (US$)


2,740,000 2,740,000


2,740,000 2,740,000

Actual Amount Disbursed (c):

669,661 669,661

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2015 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

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


Unit of Measure Baseline Target (End of project) - F

Status As of Present (December 2018) - A

Frequency Data Source/Methodology



DE

VE

LO

PME

NT

IMPA

CT Improved performance

of ParliamentProxy indicator: Wastefulness of govt spending

Value 2.1, ranked 135/148 in 2013/14

Value 2.3 Value 2.2 reported in 2017/2018

Third year Global Competitiveness Report

AfDB project team

Perception by business community, conducted through the Executive Opinion Survey of the World Economic Forum.

Perception of trust in natl govt

63% yes (2007-2011)

70% 65% reported in 2017/2018

72 UNDP Human Devt Report

AfDB project team

% of those responding “yes” to the Gallup World Poll (2012) question: In this country do you have confidence in the national government?

OU

TC

OM

ES

Outcome 1: Performance of Parliament Staffers improved

Qualitative TBD following baseline survey

Increased improved 1st year & last year

Baseline survey conducted upon project launch and project closure

AfDB project team

Outcome 2: Social Inclusion and Decentralization concepts mainstreamed

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

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

AfDB project team

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

OT

ER

ME

DIA

TE

RE

SUL

TS)

Component 1: Capacity Building of Parliament’s Permanent StaffDedicated and tailored capacity-building programs established based on skill gaps identified

Qualitative Large gaps in skills exist

Baseline Performance survey conductedNeeds assessment conducted implemented800 persons trained (40% women)

Baseline Performance survey conducted, needs assessment done and training is ongoing where 67 persons completed training in English language. Further, about 1,069 trainees are being considered for entire training courses.

Annual Project progress report

AfDB project team

Awareness raised on local development issues

Quantitative & qualitative Weak linkages with realities on the ground.

5 field visits organized

2 visits are under preparation

Annual Satisfaction survey conducted & Project progress report

AfDB project team

Component 2: Institutional Development


Unit of Measure Baseline Target (End of project) - F

Status As of Present (December 2018) - A




Improved access to historical and cultural information on Egypt

Qualitative All key ‘Rare Books’ need restoration at the Parliament Library

Consultants to review and restore rare books recruited.500 copies of ‘Rare Books’ restored

Consultant recruited and completed review and 60% of rare books are restored and digitized

Annual Project progress report

AfDB project team

Improved coordination and staff performance due to use of IT equipment

Quantitative Large IT requirements/gap, no website;

Existence of operational IT equipment.Website operational & Performance survey conducted

IT equipment delivered and operational

Annual Project progress report & comparison of performance surveys

AfDB project team

Component 3: Case Study: Mainstreaming Social Inclusion and Decentralization

Social Inclusion and Decentralization Mainstreaming Program developed and concepts used

Number of trainees; Use of concepts

No program exists

Program developed75 trained; 6 briefs developed

Program is under preparation where TOR drafted and shortlist of service providers compiled

Annual Project reports AfDB project team

Awareness on Best Practices from other countries raised through Study tours

Number of tours; qualitative

No program exists

3 study tours conducted

3 tours done; 1 tour to Japan with 13 MPs in May’17, 1 tour to Russia with 12 MPs in October’17, and 1 tour to Korea with 8 MPs in Dec’18

Annual Project reports AfDB project team

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$): Grand Total: 1,657,844.87

Direct costs: AfDB: USD 156,372.87OECD: 1,286,609 USD

Indirect costs: AfDB: 114,000OECD: 100,863 USD

Steering Committee Approval Date: 6/11/2014


Project Closing Date: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.



mailto:[email protected]%20%20

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 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 in support of the Court of Cassation is slowly progressing. A technical meeting with the Court of Cassation was held on 18 July, 2018 in Cairo and it was agreed that the Court of Cassation will complete the questionnaire prepared by the OECD to assess previous and ongoing reforms against the 2012 IRD Recommendations. Following the acceptance of the extension of the project by the Transition Fund, a coordination meeting was organised by AfDB and the OECD in September 2018 in Cairo, which discussed the next steps for the project implementation with the Court of Cassation. Based on these discussions, an action plan was prepared to guide the implementation of the remaining deliverables in alignment with the priorities of the Court. . As mentioned in the previous report, an initial training plan had been approved, language trainings are on-going and IT trainings of 360 staff are planned to commence in the coming months.

Component 2 with the Ministry of Justice has been finalised with good results delivering on the planned activities and outputs. The chief among them has been the development of an Egyptian Legislative Drafting manual and the preparation of its implementation by key

national stakeholders in charge of legislation and regulation. The manual was written entirely by the Ministry of Justice with support provided by the OECD Secretariat along with peers from OECD member countries. On 16 July, 2018 the manual was officially launched by the Minister of Justice in an international conference. The OECD has also prepared a report providing recommendation for the effective implementation of the Egyptian Legislative Drafting Manual drawing on good practices across the OECD and MENA countries. The report has been shared with the Ministry of Justice and will officially be released online during the first quarter of 2019. With the support of the AfDB, procurement of an IT expert to support the development of an e-learning module based on the manual and support upgrade of the IT systems in use by the department of legislative drafting is underway. 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), which was recently closed.” 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 31 August 2019 was submitted to the Transition Fund. The request was approved by the Fund in August 2018, extending the project until 28 February 2020 to take into consideration any additional delays in implementing the project’s activities, bringing the total extension of the project to 2.5 years. Both partners will closely monitor project implementation to introduce further adjustments as needed.

Actions to be Taken Responsible Party

Expected Date of Delivery

Submission of the answers to the OECD questionnaire by the Court of Cassation to assess previous and ongoing reforms against the 2012 IRD Recommendations

Court of Cassation

Q1 2019

Recruitment of firm consultant to work on revamping website Court of Cassation

Q2 2019

Develop Tors and detailed proposal for e-filing system Court of Cassation

Q1 2019

Recruitment of consultancy firm to design and propose streamlined business processes for enhanced customer services and specifications for firm to delivery required IT infrastructure.

Court of Cassation

Q2 2019

Recruitment of IT consultant for Ministry of Justices to design e-tool version of manual

MoJ Q1 2019

Preparation of an OECD report on the development of a Reform Action Plan for the Court of Cassation

OECD Q1 and Q2 2019

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

OECD Q1 2019

Development of a Reform Action Plan by the Court of Cassation

OECD and Court of Cassation

Q2 2019

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

AfDB, OECD and Court of Cassation

Q3 2019

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

Previous Rating: Moderately Satisfactory


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 second and third quarters of 2019. 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. The international expert panel is planned to take place in the first quarter of 2019 in Cairo with the participation of experts from OECD and MENA countries for exchange of good practices.

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, progression of procurements has been hampered by the buraecratic processes within the Court of Cassation. Meanwhile the Court of Cassation continues to confirm its interest in the having an 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. An 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. The CoC has not yet launched the procurement due to internal procedures and clearances required. The AfDB has stressed upon the court the importance of launching the procurement within q1 2019 in order to

ensure the project can be completed within the new closing date. 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 UPS was also provided in 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, and are to be shared with the Bank for clearance within q1 2019

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. English Language trainings have been provided for a first group of 100 Judges, another 100 judges will benefit in 2019. Procurement is underway for the IT trainings for 360 staff. the training is expected to be completed by June 2019. 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 only remaining deliverable of this sub-component, the high-level conference, is planned to take place in the third quarter of

2019.

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 on June 2018 by the Ministry of Justice.

The manual was officially launched by the Minister of Justice himself in Cairo on 16 July 2018 during a high-level conference. The opening ceremony was attended by the French Ambassador on behalf of the G7 Presidency in 2018. 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.

During the high-level conference, the OECD also presented the preliminary version of OECD publication on “Legislation and good governance: The role of legislative drafting manuals”, which provides a roadmap for the effective implementation of the Egyptian Legislative Drafting Manual in light of the good practices across the OECD countries, which will officially be released online during the first quarter of 2019. .

On 17 July 2018, a workshop on the implementation of the Egyptian Legislative Drafting manual was organised in Cairo. This capacity-building activity presented an opportunity to discuss how to efficiently implement the Egyptian manual, also taking as a basis the OECD report prepared in this framework. The workshop took place with the participation of the stakeholders from the Ministry of Justice, the Egyptian Regulatory Reform and Development Activity (ERRADA), the University of Cairo, international organisations and legislative drafting experts.The Manual was also presented to international stakeholders including to the participants from the League of Arab States during a workshop organised by the OECD on 28 June 2018. The Manual, which was presented by the Egyptian Ministry of Justice, received a great interest by other Arab countries. The workshop also provided an opportunity to discuss good

practices and lessons learned from OECD and MENA legislative drafting manuals.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 presented the Manual to technical representatives from these institutions, who will be using this tool in their day-to-day legislative practice. The workshop also allowed for an exchange of information on 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 has been finalized and the procurement is planned to be completed by Q1 2019.

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 supervision mission in February 2018, which was updated

in September 2018, unfortunately between February and September a number of activities were stalled pending conformation of the extension of the project, which was confirmed in July 2018, other delays have been encountered duet internal clearance procedures within CoC.

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

OECD: 1,500,000 USD

AfDB: 2,406,000


AfDB: 2,406,000 OECD: 1,204,547 USD

OECD: 1,204,547 USD

AfDB: 2,406,000


AfDB: US 156,372.87 OECD: 1,286,609 USD

OECD: 1,286,609 USDAfDB: US 156,372.87Total: 1,442,982

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2016 OECD: OECD:

2017 OECD: AfDB:

OECD: AfDB:

OECD: AfDB:

2018 AfDB: 200,000 AfDB: 800,000 AfDB: 1,000,0002019 OECD: 100,000 USD OECD: 100,000

USD OECD: 200,000 USD

2020 OECD: 13,528 USD OECD: 13,528 USD

F. Disbursements of Funds for Indirect Costs (US$)Disbursed (US$) Available (US$) Total (US$)OECD: 100,863 USDAfDB: 114,000 USDTotal: 214,863

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.


Unit of Measure

Baseline

Cumulative Target Values**

FrequencyData Source/Methodology



Sep 2014 – Sep 2015A

Oct 2015 - Sep 2016A

Oct 2016 - Dec 2017A

Jan – June 2018 (A)

June – Dec 2018 (A)

Jan – June 2019 (F)

July 2019 – Feb 2020 (F)

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

System in place

System in place

System in place

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 Four 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



3 peer programmes




3 peer programmes




3 peer programmes


Annually Project Monitoring Unit

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

INTERMEDIATE RESULTS

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/Fady Alrayyes

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$):

2,659,556


6/11/2014

Project Implementation Start Date:

7/1/2014


7/1/2020



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.





The project has progressed satisfactory and with most activities/deliverables being completed or underway its final delivery. Notably, the project core deliverables have been implemented with the launch of the CSD, Collateral Management and Auction systems on 9th December 2018. 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.During the reporting period several activities were completed and core systems implemented

despite delays related to the system implementation. During the project implementation and through policy dialogue with relevant stakeholders, it became apparent that there is need for additional support services. The necessity of these support services is recognized by the CBE, the supporting project consultant and the EBRD. In November 2018, EBRD received a request for budget re-allocation and the extension of the project closing date to 1st July 2020, from the Central Bank of Egypt (CBE). The project extension was submitted to MENA TF and was approved on a no objection basis in December2018.

The project restructuring and extension resulted from the realization that there are inherent risks associated with newly created capital market infrastructure such as CSDs. While the CBE has experience in handling clearing and settlement of government securities transactions, there is a need for increased capacity in managing the CSD’s operational, credit and liquidity risks. As such, CBE requested technical support aiming to introduce a risk management framework which includes clear defined processes, practices and executive rules. Moreover, existing government securities will be migrated from Misr for Central Clearing, Depository and Registry (MCDR) and consolidated into the new CBE CSD. Such securities migration process requires an audit which will bring an extra degree of confidence and significantly reduces risks of fraud. Finally, compliance with the principles for financial market infrastructures (PFMI) of the International Organization of Securities Commissions (IOSCO) is seen the widely-accepted international standards. The PFMIs is a set of 24 high-level principles which set minimum recommended standards for the operations of financial market infrastructure institutions. Concerned organizations are expected to undertake assessments to declare their level of compliance with the PFMIs. Having such assessment is even more important for newly created organizations as it would provide a stamp of approval confirming that the CBE CSD adheres to the internationally accepted principles. As a consequence of the project extension, a reallocation of USD 500,000 was approved by MENA TF with new closing date of 1 July 2020.

The co-operation between CBE and EBRD works very well and a dedicated CBE team is working on the project. As of 21 December 2018 the project progress was 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), the Data Warehouse & information Dissemination (Component 4) 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. 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), were achieved and the systems went-life on the 9 December 2018. Only one system is still pending, namely the Electronic Trading Platform (Sub-component 2.5), where some decisions by CBE and key stakeholders are still to be agreed.

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, implemented and operational since December 2018. The first releases of the

CSD system and the Auction module were delivered in December 2017 followed by various releases based in initial testing. User acceptance, functional and penetration tests took place and were repeated after iterations were implemented until CBE was satisfied with the system robustness and safety. Overall, the system implementation was successfully achieved despite the delays which are not unusual for complex IT systems that have a systemic importance.

Data Warehouse sub-component: Finalized and went live with data access to the RTGS of the CBE. The

CSD system component has is to be installed once Intix received the CSD file formats to be supplied by the CBE.

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 EGX is currently in the process of system development.

Around 66% of MEN TF allocated funds were disbursed following the successful implementation of the core systems. 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.

C. 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. 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


Current Rating: Satisfactory Cost (US$): 1,650,000 (previously USD 2,230,000 minus USD 20,000 re-allocated to Component 4 and USD 60.000 re-allocated to Component 1, USD 300,000 re-allocated to Component 9, USD 120,000 re-allocated to Component 10, USD 80,000 re-allocated to Component 11)

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 got delayed and but the system went live of 9th December 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. The system passed several user acceptance, functional and penetration tests. Overall, the system was implemented with a delay but launched and became fully operational on 9 th December 2018. Sub-component 2.3: Repo Auction

Status of Implementation: Contract awarded to SIA SpA and project kick started in December 2016. Project implementation was delayed but the system went live on 9th December 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.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: Finalized. Project kicked-off in December 2017 and was the system was delivered Q1 2018; the data warehouse is currently functional. Some of the data feeds are depending on the CSD system launch; this is expected to be addressed shortly as the CSD became operational.

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: Project Management Support

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 1,020,000Status of Implementation: Handled by AfDB.

Component 8: Core System Components Testing

Previous Rating: Not Applicable Current Rating: Satisfactory Cost (US$): 100,000

Status of Implementation: Finalized. Project kicked-off in October 2015 the contract was awarded to Clarity consulting firm. The assignment was fully delivered in December 2018.

Component 9: Post-launch support services focusing on risk management (NEW)

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 300,000Status of Implementation: New component introduced as approved by MENA TF in December 2018. Expected start date in Q2 2019.

Component 10: Government securities data migration audit (NEW)

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 120,000Status of Implementation: New component introduced as approved by MENA TF in December 2018. Expected start date in Q3 2019.

Component 11:CPMI-IOSCO Principles for PFMI assessment support services (NEW)

Previous Rating: Not Applicable Current Rating: Not Applicable Cost (US$): 80,000Status of Implementation: New component introduced as approved by MENA TF in December 2018. . Expected start date in Q1 2020.


(US$)

(x)


(y)

Total (US$)


3,510,000 0 3,510,000


3,510,000 0 3,510,000

Actual Amount Disbursed (c): 2,395,012 0 2,395,012

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2014 - 0 02015 15,000 4,992 19,992

2016 379,809 157,423 537,2322017 171,052 59,966 231,0182018 642,248 744,665 1,386,9132019 100,000 200,000 300,0002020 200,000 - 200,000


300,544 41,356

341,900

G. 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 – Sep 2018

A

Sep 2018 – Dec 2018

A

Jan 2019 – July 2020

FIndicator One: Transaction efficiency increase (volume of trading)1

% Project Start

- - - +5% Semi-Annual


Implementation Manager

Percentage increase in trading volume of treasury bills compared to pre-project levels.

Indicator Two: Settlement efficiency increase (% of trades settled automatically) 2

% ProjectStart - - - 20% Semi-Annual



Percentage of trades settled automatically

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

No. ProjectStart

- - 38 38 Semi-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 3

% Project Start

- - - +5% 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) 4

Project Start

- - - Weekly Semi-Annual



Frequency of Publication

Intermediate Result indicator One: Auction system operational

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

Primary Market Auction operational since Dec 2018

Primary Market Auction operational since Dec 2018



Intermediate Result indicator Two: Core CSD System operational

CSD system procured and contract signed with vendor.

Start of system

Automated Secondary Market Clearing and Collateral Management System operational

Automated Secondary Market Clearing and Collateral Management



1 Systems will not be in place before Q4-2018, so impact can only be assessed after the implementation of the fully electronic system components2 Systems will not be in place before Q4-2018, so impact can only be assessed after the implementation of the fully electronic system components3 Systems will not be in place before Q4-2018, so impact can only be assessed after the implementation of the fully electronic system components4 Systems will not be in place before Q4-2018, so impact can only be assessed after the implementation of the fully electronic system components

implementation since Dec 2018 System operational since Dec 2018

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

Yield curve methodology analysis for Egyptian market completed

Yield Curve generated by CBE , not published

Yield curve generated and published

Yield curve generated and published



Intermediate Result indicator Four: Trading platform operational

Trading platform analysis for optimal design completed

Trading platform for government securities operational until end Q4/2018

Trading platform for government securities operational until end Q4/2018



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

Trading platform analysis for optimal design completed

Local market linkages operational at end 2018

Local market linkages operational at end 2018



Intermediate Result Indicator Six: Data warehouse operational

Procurement of data warehouse system

Data warehouse operational in Q1/2018

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 by Q1/2019Legal and regulatory requirements are consistent across all modules

Legal and regulatory changes are approved by parliament by Q1/2019Legal 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

Total Amount Disbursed (Direct and Indirect in US$): 1,637,817


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 MSMEDA 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 MSMEDA to dedicate sufficient staff and resources to continue implementation of MSMEDA’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 MSMEDA 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.


Component 1: “Legal and regulatory reform to strengthen MSMEDA advocacy and policy formulation capacity to support the MSME sector” (MSMEDA-executed): The Component’s objective is to provide MSMEDA 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 MSMEDA

Status of Implementation: EBRD local and international consultants have provided all deliverables under their contracts for sub-component 1.1 to the satisfaction of EBRD and MSMEDA. In the first phase of sub-component 1.1, the Local Consultant was requested to deliver a report reviewing all laws related to MSMEs in Egypt and set a strategy for a way forward on establishing the PRF inside MSMEDA. The International Consultant delivered a report on international experience of regulation of the MSME sector in a number of relevant jurisdictions and drafted a report setting out best international practices on governance of MSME regulatory bodies. However, there remain significant funds under Component 1. Therefore, in a February 2018 meeting with EBRD, MSMEDA requested that EBRD use the remaining funds to implement the recommendations set out in EBRD consultants’ deliverables to establish a policy and regulatory functional unit (PRF) to act as a regulatory watch tower over all public regulations that may affect MSME activities. MSMEDA requested EBRD to build the capacity of identified employees who would manage the PRF once it has been established and to train them on advocating effectively for the MSME sector. This will be done through advice from EBRD local and international consultants, whose roles will be to support in articulating a strategy for establishing the PRF within MSMEDA to coordinate all public sector MSME decisions/regulations before they are issued in order to ensure one unified and effective vision for promotion of MSMEs.EBRD would help MSMEDA establish the PRF in cooperation with the EU Commission (they have negotiated a separate project with the Ministry of Trade and Industry, which supervises MSMEDA, to support MSMEDA in the elaboration and implementation of relevant strategies to foster SME and entrepreneurship development as well as to improve the business environment in Egypt). MSMEDA drafted a checklist of activities necessary to establish the PRF and equip it for operation.To ensure effective implementation of the EBRD consultants’ recommendations, EBRD, MSMEDA and the EU will negotiate each of their roles in establishing the PRF and reached provisional consensus on how they will assist MSMEDA in establishing the PRF.

Sub-component 1.2: Reviewing the Presidential Decree N.40 of 1991 establishing the MSMEDA and the law on Small Enterprise (Law 141/2004) to clarify MSMEDA’s mandateDuring a 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. MSMEDA have instead asked EBRD to use unspent funds to implement the recommendations from reports delivered by our Consultants under Subcomponent 1.1 and 1.3. EBRD, as an ISA,

confirms that the decree to be analysed under Subcomponent 1.2 that established the Social Fund for Development (SFD) has indeed been superseded by a decree establishing the Micro, Small and Medium Enterprise Development Agency (MSMEDA) and that fulfilling the objective under Subcomponent 1.2 would thus be redundant.Sub-component 1.3: Implementing recommendations for a better operational environment for MSMEsStatus of Implementation:

In the first phase of sub-component 1.3, the Local Consultant was requested to develop a new operational design for one-stop shops, deliver a cost centre analysis on one-stop shops and an action plan to operationalise a new design for one-stop-shops. EBRD local consultants have provided all deliverables under their contracts for sub-component 1.1 to the satisfaction of EBRD and MSMEDA. However, there remain significant funds under Component 1. Therefore, in a February 2018 meeting with EBRD, MSMEDA requested that EBRD use the remaining funds to implement the recommendations set out in the studies delivered. This will entail forming a working group with MSMEDA to monitor MSMEDA’s progress in implementing consultant recommendations. MSMEDA will operationalise the action plan submitted by the local consultant in Phase 1 through a pilot programme on one one-stop-shop in Egypt. This will entail, inter alia, procuring IT equipment, re-designing work-flows and processes within that one-stop shop, training employees, procuring furniture. It was agreed that the EBRD will use remaining funds to assist MSMEDA in procurement and implementation of the Action Plan and that EBRD would also use remaining funds to hire a consultant to supervise implementation through spot-checks.

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 MSMEDA 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 MSMEDA 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 MSMEDA staff in project delivery; transferring on-the job knowledge and skills at all levels of implementation of the programme. The joint MSMEDA and EBRD team successfully:

assisted 133 women entrepreneurs out of a target of 120 (60 pilot and 60 phase II), carried out 168 advisory projects with local consultants, of which 144 have been

successfully completed and evaluated. Trained 520 women under the programme, and the team has successfully engaged with around 670 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 168 BAS projects supporting 133 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 168 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 70 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, MSMEDA has managed to facilitate business opportunities for women entrepreneurs improving their access to markets :

35 marketing opportunities through local exhibitions were provided. 7 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 17 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 27 courses training for over 520 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 (10 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 of 207 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 (2 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 37 women entrepreneurs in Cairo.

Linking with MSMEDAMSMEDA 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 MSMEDA, 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 MSMEDA as interactive platforms to showcase best practices and successful stories of women entrepreneurs. These activities are aligned with MSMEDA’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. 33 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 MSMEDA staff and 37 potential women entrepreneurs at the MSMEDA premises

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

2 Visibility events at the MSMEDA 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 MSMEDA in the regional office of Sohag in Upper Egypt and was attended by 23 women entrepreneurs

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

MSMEDA staff in Tanta Gharbia Governorate in Upper Egypt attended by 6 women entrepreneurs.

On the job training session for 10 MSMEDA 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 MSMEDA.

A networking and visibility event : “Innovation Fundamentals” was organized in December 2014 in collaboration with MSMEDA. The event was attended by Ms Soha Soliman MSMEDA 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 MSMEDA and was attended by 35 women. Round table discussion was held at MSMEDA 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 MSMEDA & 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 (MSMEDA) to introduce the second phase of the program to the new MSMEDA team members.

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

Networking Event, in cooperation with MEMEDA, Presentation on SMEs development opportunities in Egypt, Cairo July 31st ,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 MSMEDA at the National Council for Women.Building the MSMEDA Capacity: The objective of this activity is to build the capacity of the MSMEDA 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 MSMEDA on developing MSMEDA 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 MSMEDA non-financial staff. A local consultant was hired to assess the training needs (TNA) and performance gaps of 32 MSMEDA Non-financial officers all over Egypt. The TNA helped EBRD to develop and implement the appropriate training programme to build MSMEDA 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 MSMEDA 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 MSMEDA non-financial officers to understand how to diagnose different businesses performance using specific diagnostic tools. In addition, the training would build MSMEDA 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 MSMEDA team on weekly basis.

One day training was delivered to MSMEDA 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 MSMEDA HQ and it was attended by 25 MSMEDA staff.

EBRD team has received the first draft of the operational manual prepared by MSMEDA 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 MSMEDA mode of operation.

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

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

Impact and evaluation: 105 projects have been evaluated one year after completion under the pilot project and phase II.78 of which were funded by the MENA transition fund and 27 projects were funded by the SEMED multi donor accounts under the joined program. 90% are rated successful or highly successful; 86% of assisted enterprises have reported an increase in annual turnover with an average of 70% while 60% of assisted enterprises have reported an increase in number of employees, on average by 40%, creating more than 510 new jobs. As of Dec 31th, 2018, 38 women entrepreneurs succeeded in raising finance externally for more than EGP 98.3 million.

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

Status of Implementation:

May 1st, 2017 EBRD team in cooperation with MSMEDA 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 MSMEDA as well as Business consultants took place. In this regards, WiB team in both EBRD and MSMEDA have delivered the following interventions within the framework of Phase II, as follow:

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

b. From May 1st, 2017 to date, the programme has successfully started 53 BAS projects supporting 48 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 16 new consultants from Cairo and Alexandria engaging them in BAS projects.

c. 9 coaching project was delivered out 10 and the team is paying more efforts to promote the coaching concept among women clients.

d. In order to enhance the entrepreneurial skills and technical capacities of women entrepreneurs, the programme has designed and delivered 13 courses training for over 253 women as follow:

e. Going Digital (4rounds): 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 91 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.

f. 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.

g. 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.

h. From Entrepreneur to enterprise (2 Rounds): 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 37 women entrepreneurs in Cairo.

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

j. 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.

k. Capacity building of MSMEDA non-financial services staff dedicated to Women in Business

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

m. Visibility, dissemination and networking

n. 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.

o. Visibility Event In cooperation with the former Social Fund for Development currently known as (MSMEDA) to introduce the second phase of the program to the new MSMEDA team members. The event was attended by 60 MSMEDA officials and team members.

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

q. Networking Event, in cooperation with MEMEDA, Presentation on SMEs development opportunities in Egypt, Cairo July 31st, 2018.

Component 3: Strengthening MSMEDA’s data analysis to enhance targeting and monitoring mechanisms (MSMEDA 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 MSMEDA. This component focuses on developing MSMEDA’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.MSMEDA 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.MSMEDA 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 MSMEDA’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 MSMEDA 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.

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

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



(x)


(y)Total (US$)


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


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

Actual Amount Disbursed (c): 471, 670 1,001,147 1,472,817

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

2014 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 MSMEDA to support the MSME sector in Egypt with a particular focus on promoting women entrepreneurship


MeasureBaseline


FrequencyData Source/Methodology

Responsibility for Data

Collection

Description (indicator

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

FPDO Level Results Indicators*

Indicator One:A functioning and recognized advocacy and policy formulation unit of the SFD as seen by:White Paper on the operational environment for MSMEs in Egypt, and the need for a policy formulation unit, endorsed by all stakeholders (including public administrations concerned)

Establishment of the policy and regulatory unit/function

Binary

Binary

Yes

No

Yes

No

Yes Yes

YesYes Once

Once

Minutes of the Stakeholders’ meetingsMSMEDA

EBRD

MSMEDA A functioning policy and regulatory function unit is established in MSMEDA.

Final or informal confirmation by stakeholders that key recommendations of the Paper will be adopted and acted upon

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

Of which, projects evaluated for impact

Number0

0

168(133)

105

Ongoing

Ongoing

MSMEDA/EBRD

MSMEDA/

EBRD

EBRD

Indicator Three:Impactful business advisory services for MSMEs delivered by the MSMEDA 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

90

65

38

47

N/A

N/A

N/A

N/A

Ongoing

Ongoing

Ongoing

Ongoing

EBRD

MSMEDA/EBRD

MSMEDA/EBRD

MSMEDA/EBRD

MSMEDA/EBRD

EBRD

EBRD

EBRD

EBRD


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

- Intermediate Result indicator One:A strategy for the SFD and an appropriate governance structure approved by the SFD Board of Directors

-- Intermediate Result

indicator Three: A ‘White Paper’ on the operational environment of SME

-- Intermediate Result

indicator Four: A Policy

Binary NO Yes

Yes

No

Once

Once

Once

MSMEDA

MSMEDA

MSMEDA

EBRD

Unit established within the SFD

Intermediate Result (Component Two):Strengthened women entrepreneurial activity and strengthened capacity of the MSMEDA 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 MSMEDA/EBRD

EBRD

Intermediate Result indicator Two: Women trained in advanced entrepreneurial skills

0 10 31 122 267 479 367Ongoing MSMEDA/

EBRDEBRD

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

0 N/A N/A 20 33 72 78Ongoing MSMEDA/

EBRDEBRD

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

0 10 10 15 32 46 52 Ongoing MSMEDA/EBRD

EBRD

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

No 0 1(accomplished)

1 1 1 1

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

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

Qualitative

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

EBRD

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

Number and qualitative research

No, and 0 staff trained

Yes, and 2 staff trained

MSMEDA/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):European 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]

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

1,423,094 US$ (Direct) + 142,309 US$ (Indirect) = 1,565,403.00 US$ - 557,376.43$ (partial cancellation) = 1,008,026.57$

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$5 +142,309 US$ (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: Moderately UnsatisfactoryRating for overall implementation progress: Moderately SatisfactoryBrief Summary of Project Implementation Status:

During Q3 and Q4 2018, activities have been programmed and correctly implemented. However, due to the delay in receiving authorisation from the Egyptian Authorities to implement field activities, the project will not be completed as originally designed.

The field work has shown an increased 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 carried out in Egypt during Q3 2018. The LOGISMED website will be presented and published during the last SCM meeting to be held in February 2019. Two meetings of the knowledge network around logistics performance have been held, where Egyptian representatives have participated. The last meeting will be held in Cairo in February 2019;

The consortium, led by GOPA, in charge of the implementation of the training activities funded by the European Commission (the second component) could not launch the training activity in Egypt until March 2018 due to the aforementioned security issues. However, the planned training activities have been completely implemented during Q2, Q3 and Q4. Originally, a second phase of training was going to be deployed in Egypt using funding from the MENA TF, but time constraints are now such

5



that training under the MENA TF will not be done. This was agreed during the 3rd SCM, held in Rabat;

For the third component, the Logistics Observatory, the desktop data collection/processing is well advanced, almost finished. The current work permitted to complete 60% 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 3rd SCM that the administrative structure within the Ministry would be strengthened such that the Ministry would assume this role. The project carried out seven training sessions to the staff of this administrative unit, in order to improve their knowledge to manage this work.

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 2/6/2019

Holding the third knowledge networking event; CETMO 2/6/2019Second Training on the LOGISMED logistics platforms guide for public and private promotors in Egypt; CETMO 2/7/2019

Presentation results and analysis of the Regional LOGISMED logistics observatory containing Egyptian indicators; CETMO 2/6/2019

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 March 2018. The work during 2018 focused 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 has been held. Similar training session with private promoters will be held in February 2019.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 presented in February 2019);

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. Third logistics network event will take place in Cairo on 6th February 2019. In this event, role of logistics associations in identifying training needs and providing courses will be analysed conjointly.Immediate activities for Component 1 include:

Training session around the concept of LOGISMED logistics platforms and network with private

stakeholders (CETMO), 7th February of 2019; Launching the LOGISMED Website (CETMO), 6th February 2019; 3rd networking activity of the LOGISMED logistics platforms network (CETMO), 6th February 2019.

Component 2: LOGISMED Training ActivitiesPrevious Rating: Moderately Unsatisfactory

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. Training activities foreseen in Egypt through the EC grant have been correctly finalised.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 has been implemented in Cairo. More than one hundred blue-collar logistics employees have been trained during the last semester of 2018.Immediate activities for Component 2 include:

Fourth meeting of the Steering Committee of LOGISMED Soft, 5th and 6th February 2019, Cairo.

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:The collection and treatment of the statistical information that will feed the regional observatory is completed. The current work permitted to complete 60% of the indicators of the Regional Observatory by the end of 2018 for the Egyptian data. These indicators are ready to be published. However, some necessary data to complete the rest of indicators is lacking in Egypt and won’t be ready in the short or medium term. Transport and logistical statistical data collection in Egypt is in process to improve and the project has boosted the definition of the priorities for this work. 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 have been deployed to train the staff of the MoT dedicated to deal with transport and logistics statistics. Seven training sessions (4 hours per session) have been carried out during November and December 2018.Immediate activities for Component 3 include:

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 0 1,423,094 1,423,094

Trustee (b): 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 End2019 45,000 - 45,000


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




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

2.82(LPI

2018)

Each 2 years WB 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 available

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)

7.2(2017)

Once per year

COMTRADE (United Nations)

EIB

Volume and value of the exports and

imports among the MENA countries.


Intermediate Result: Component I: LOGISMED coordinationSCI.1: Promotion of the LOGISMED projectSCI.2: Definition of the LOGISMED platform network



Cumulative Target Values**Frequenc

y

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 platforms that study the opportunity to be part of the LOGISMED network

# platforms 0 0 0 0 2 na Once per

year

Forms asking for information

about procedures

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 Two:Number of platform infrastructures promoted by the national authorities

# platforms 0 0 0

3(under study)

3(under study)

4(under study)

Once per year

Country planning / Projects launched

Ministry of Transport and

Equipment

National structures are involved in the

promotion of the Logistic platform

offer

INTERMEDIATE RESULTSIntermediate Result (Component Three):Component III: LOGISMED Observatory

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



Cumulative Target Values**Frequenc

y

Data Source/

Methodology



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 50 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 01

(under study)

1(as

part of the

MoT)

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 Egypt(last ISR: July 2018)

A. Basic Project InformationActivity 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





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


Project Development Objective (PDO):


MeasureBaseline


Data Source/Methodology



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$): 698,756.53 US$ (Direct Costs) + 230,000 US$ (Indirect costs) = 928,756.53 US$


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 Establishment of an Investment Unit for the Ministry of Transport: formalization of Terms of Reference and launch of the international tendering process. Procurement notice was published on 28.12.2018 and the evaluation of the short list is planned for week of 11 th

February 2019;o Feasibility Study of a Multipurpose Terminal and Value Added Logistics Center for the

Expansion of Alexandria Port: completion of tendering and kick off meeting held June 2018; study is in progress, final report due March 2019;

o Feasibility Study of Freight and Passenger Railway Links of Rubeiki -10th of Ramadan – Belbeis: completion/formalization of Terms of Reference ongoing; to be tendered Q2 2019;

o Feasibility Study and Master Plan of the 10th of Ramadan Dry Port: Drafting of the terms of reference commenced December 2018;

o Feasibility Study of the East Port Said Value Added Logistics Center: finalization of in September 2018;

o Demand Assessment of the Connectivity of Suez Canal Economic Zone with Greater Cairo: progress of the - study to be finalized by February 2019.



- In light of the positive progress of the different transport projects as well as the reallocation of funds among some of the components in order to reflect the evolving priorities of the Ministry of Transport in Egypt, EIB submitted an extension request of the closing date from December 11, 2018 to December 31, 2020 to enable the completion of all activities. The extension request has been approved (approval received December 9th) and the project’s new closing date is December 31st

2020.- A restructuring note reflecting minor reallocation of funds within components has also been submitted

to the SC and same was approved in December 2018.

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) Technical Assistance to the Ministry of Transport for the creation of an Investment Unit (TA2018112 EG DTF)

Status of Implementation: o The Terms of Reference for this assignment have been formalized with the promoter and the

tender process commenced December 2018 with the procurement notice was published on 28.12.2018 and the evaluation of the short list is planned for week of 11 th February 2019. Assignment expected to commence March/April 2019.

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) was finalized September 2018. The transport demand study (TA2016060 EG DTF) contract has been extended and Final report is being prepared for February 2019.

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).

- 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 took place first half of July 2018 including a visit by the EIB technical team in November 2018. The TA progresses satisfactorily according to schedule;

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

preparation and the tender process is expected to be launched Q1 2019;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 Q1 2019.

Sub-component 2.3: TA for preparation of upgrading and expansion of Border crossing facilities Satisfactory

Status 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 TOR scope has been expanded to reflect the new budget. Tender process commenced December 2018. Procurement notice launched and shortlist evaluation scheduled for week of 11th February 2019.

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): - 1,350,000 1,350,000

Actual Amount Disbursed (c): - 698,756.53 698,756.53

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)Year Jan-June Jul-Dec Total by Year End2019 880,000 480,000 1,360,0002020 270,000 870,000 1,140,0002021 630,000 - 630,000


230,000 0 230,000

G. Results Framework and MonitoringProject 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 Baselin

e


FrequencyData Source/

Methodology


Collection


definition etc.)Jan. 2016 – Dec. 2016

A

Jan. 2017 – Dec. 2017

A

Jan. 2018 –

Dec 2018. A

Jan 2019

Dec 2020

F

Indicator One:About 20 transport road safety auditors trained

# of participants0

20 20 20 20

Bi-annually Reports PMCU and Focal Points

Quantitative – number of participants who have successfully completed the training

Indicator Two:Studies completed: (i) 2 studies for the Suez corridor; (ii) studies for the development of transport corridors (iii) road safety action plan completed.

Percentage progress and # of studies

0

0

25%

1

40%

2

100%

8

100% Bi-annually Reports

Studies produced

PMCU, Focal Points with EIB input

Number of studies completed and approved

Indicator Three: Investment Unit established and functional

Investment Unit created 1 event

0 0 0 0 1

Bi-annually

Consultant reports

Investment Unit, Consultant, and EIB

One event: The Ministry officially created the Investment Unit

Investment unit staff recruited and trained%age progress

0 0 0 0 100%

Bi-annually

Consultant reports

Investment Unit, Consultant, and EIB

# of staff assigned ot the Unit,

Trainings delivered


Intermediate Result (Component One): Institutional and capacity building for regional trade framework

Sub-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 PMCU and 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 PMCU, 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:Logistics zone feasibility study and Port Said-Cairo Corridor Traffic Study

Percentage progress and studies completed

0 25% 100% 100% 3 -months Reports PMCU, Focal Points with EIB input

Quality studies produced and approved

Intermediate Result indicator Two: studies for the development of transport corridors

Percentage progress and study completed

0 0% 40% 60% 100% 3 -months Reports PMCU, Focal Points with EIB input

Quality study produced and approved

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$): 167,000 (client cost-share)

Total Amount Disbursed (Direct and Indirect in US$): $481,617

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



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 continued to deliver on its engagement with Al Tadamun across several components. An internal audit review was conducted, and recommendations made. In addition, a kick off mission for the business continuity planning component was organized as well as a 3-day workshop to kickstart the process mapping component, during which IFC and Al Tadamun help to develop a repository of all of Al Tadamun’s processes.

DBACD have expressed interest to pursue the Smart Certification and have worked during this reporting period on revising their policies, procedures and practices to meet some of the criteria that they hadn’t fully met at the time of the assessment. Notable progress was made.

Actions to be Taken Responsible Expected

Party Date of Delivery

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

6/30/2019

Conduct a Smart Assessment for Al Tadamun IFC (and Al Tadamun)

6/30/2019

Organize microfinance roundtable to prepare for the 1st Egyptian Microfinance Conference

IFC 6/30/2019

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.


During this reporting period, several key activities were organized under this component. A review of the Internal Audit function was conducted to evaluate the extent to which the technical assistance that was provided to Al Tadamun under IFC’s first engagement on this subject was absorbed and implemented. The results proved to be promising with room for some minor improvements, which were presented to the CEO. In addition, IFC organized a 3-day process mapping workshop for Al Tadamun during which IFC and Al Tadamun worked to develop a repository of all of Al Tadamun’s processes. Al Tadamun are in the process of identifying a taskforce to work on the process maps- this should start during the next reporting period. The kick-off mission for the business continuity planning component also took place. Through the mission, it was clear that Al Tadamun has little in terms of business continuity planning in place. It was agreed that implementation of this component will be postponed until a comprehensive process mapping assignment is completed.Finally, a Terms of Reference for the Internal Control assignment has also been developed and the initial diagnostic is expected to take place during the next 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


As agreed with the Transition Fund team, the engagement with DBACD on transformation 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. No additional activities to be reported under this component.

Component 3: Consumer Protection


Current Rating: 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 support DBACD, who has expressed interest to pursue the Smart Certification. The IFC team has been revising changes to policies, procedures and practices that have been implemented by DBACD to fully meet the certification requirements. In addition, IFC has also signed an agreement with Al Tadamun in Egypt to conduct a preliminary Smart Assessment in the coming period.

Component 4: Knowledge Management Previous Rating: Moderately Satisfactory

Current Rating: 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 organized a workshop on Responsible Finance alongside the Sanabel Conference in Amman. The workshop was attended by Al Tadamun, who have since signed an agreement to conduct a Smart Assessment as well as the Egyptian Financial Regulatory Authority (FRA), who oversee microfinance activity in Egypt.

IFC has also been coordinating with the Egyptian Ministry of Investment and International Cooperation and the Egyptian Microfinance Federation to organize a Microfinance Stakeholder Roundtable in January 2019 bringing together representatives from the largest and most important microfinance players and stakeholders in the market. The Roundtable will act as the feeding ground for the 1st Egyptian Microfinance Conference and be the basis upon which the conference’s agenda and sessions are to be developed.


(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


0 481,617434,144

481,617434,1446

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

6 From July-December 2018, spending was as follows: Al Tadamun (USD 22,800), Consumer Protection (USD 9,383) and Knowledge Management (USD 15,290)

G. Results Framework and Monitoring*

Project Development Objective (PDO):

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)Jun -Dec 2018 (F)7 YR5 Methodolog

yBusinesses received business support/advisory services or financial investment

Number 0 2 3 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

268,687 554,741 734,292 734,292 + 195,950 (Tadamun) = 930,242

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


188,259,323 + 51,842,183 (Tadamun) = 240,101,506

Annual MFIs IFC

Number of micro loans outstanding (non-cumulative)

Number

307,308 216,221 253,202 146,759 8+ 156,651 (Tadamun)= 303,410

171,215 (Tadamun only) Annual MFIs IFC

Outstanding microfinance loan portfolio of supported

USD 55,337,300 55,526,294 33,424,484* 22,665,612 9+ 23,328,507 (Tadamun)=

24,047,081 (Tadamun

Annual MFIs IFC

7 IFC captures results after project closure8 Last reported loans outstanding figure for DBACD 1.9 Last reported value of loans outstanding figure for DBACD 1.

institutions (non-cumulative)


56,752,991


only)

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

Number 0 110 311 3 3 Annual IFC IFC

10 Regional client protection workshop (shared with Jordan)11 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: Mohsen Adel, Chairman Email: [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: 3,789,675.63OECD: 1,403,949.00

TOTAL: 5,193,624.63


Project Implementation Start


74










Date:7/1/2015


Primary 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


Additional financing of 2,477,600 was approved during the MENA Transition Fund Committee Steering Committee of 10 December 2018. Additional funds would be used to further deepen and strengthen the sustainability of the reforms supported under the current project. The additional financing will allow the project to further align with Egypt’s 2015 national reform policy, which aims at promoting sustainable private sector-led economic growth, and with MIIC four-year investment strategy (2018 to 2022) that aims to foster a conducive investment climate.

OECD-Executed Components:

The drafting of the OECD Investment Policy Review (IPR) of Egypt, which was requested by the Minister of Investment and International Cooperation, is near completion. A full draft of the review will be shared with MIIC and GAFI early January 2019, for their feedback and comments. Once enriched with GAFI and MIIC comments, the review will be presented and discussed in Cairo and at the OECD. It remains to be determined whether the Review will be presented at the OECD Investment Committee of March 2019, or back-to-back with another OECD event.

Following a last round of comments from the Intelligence FDI Unit of GAFI, the work on FDI statistics has been completed. The report on the compilation of FDI statistics in Egypt has been shared with the Vice-Chairman of GAFI during his visit to the OECD in October (see below). 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. Follow-up capacity-building activities and technical assistance are currently being explored by GAFI and the OECD, and are expected to start in the course of 2019.

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 seminar on trends and practices in investment promotion in the Mediterranean, Paris, 22-23 October); (ii) participation in the OECD

75

Investment Committee and the WGIIS; (iii) the MENA-OECD Working Group on Investment and Trade in Jordan on 27-28 November 2019; and (ii) the project on Supporting the development of the Suez Canal Economic Zone (second phase to be launched early 2019).

World Bank Group Supported Components:

GAFI- GAFI finalized the business process re-engineering and finalized the automation of four out of seven services. Also, GAFI started the digital archiving of critical data. On customer satisfaction, GAFI started the implementation of the Customer Relation Management (CRM) system. Additionally, the second phase of the investment map was finalized and, after testing, would be launched within the upcoming six months.

IDA- IDA focused on the process mapping for industrial developer. IDA finalized the automation of industrial licensing and construction permits and working on industrial registry and land allocation. IDA transferred the industrial map data to GAFI in order to integrate both maps the industrial and investment maps in one interface for the investor. Additionally, the online portal if fully operational.

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, these key issues are identified that require more focus in the coming period:GAFI:

Ensure the compatibility of the GAFI systems with connected systems of other government entities and close coordination on the provision of services.

Build the capacity of the staff of investment service centers to fully utilize the advantages of introduced technological upgrades.

IDA: Ensure the integrity, accuracy, and practicality of the industrial land information system

built by IDA, including the completion of the transfer of data from other agencies, connectivity with other relevant systems. And e-services functionalities.

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 Expected Date of Delivery

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

76

OECD workshop on international investment agreements

OECD/MIIC/GAFI Spring 2019

Automation steps for ISC selected services to be completed including; analysis, implementing, testing, generalizing and going live.

GAFI June 2019

Upload all licensing requirements on GAFI portal in coordination with ERRADA

GAFI/ERRADA March 2019

Completion of data migration for digital archiving. GAFI April 2019

CRM electronic systems to be implemented in all ISC branches, including newly established ones.

GAFI June 2019

Training activities to anchor the newly introduced practices and introduce change management will be conducted and regular training programs to relevant staff within GAFI and ISC branches will be conducted.

GAFI June 2019

Launching of Phase III will of the investment map. GAFI June 2019Land allocation inventory IDA June 2019 Implementation of the third phase of automation for industrial land allocation IDA April 2019 Users’ training at the branches for the second and third phases of automation. IDA March 2019

Process re-engineering for the industrial developer process IDA March 2019Drafting the land allocation section in the Executive Regulation for the IDA Law enacted in June 2018

IDA/ERRADA April 2019

Drafting of executive regulations for the IDA Law regarding the of allocation of industrial real estate for industrial activities and the legal review of the reformed industrial developer process

ERRADA June 2019

Develop a regulatory framework for the industrial developer as part of the above-mentioned executive regulations.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 March 2019

Conducting three consultation sessions on the following topics:

a. Industrial land allocation. b. Industrial developer.

ERRADA February 2019

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c. ERRADA Informational Portal.

Develop the user interface and the new approach to public consultation ERRADA January 2019

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

WBG-supported component: Business Process Reengineering:

GAFI finalized the streamlining of its services (establishment, amendments, licensing and auxiliary services) in May 2018

The IT report which described the areas of improvement of GAFI ISC system and IT elements was submitted in June 2018

ISC strategic communication plan was conducted which is blueprint for effectively raising the awareness of investors about the ISC and its services.

Automation of the ISC: Company incorporation: Four out of seven service were automated

a) online registration which includes the digital signature and electronic registration in the ISC and seven branches; b) tax card and social insurance registration; c) General Assembly and board meetings.

Digital Archiving:There are five main steps to undertake the full digital archiving of companies’ data at GAFI. GAFI finalized the classification of data, scanning of documents and developed a coding system. It is still working on the attribution and filing steps.Customer Relationship Management (CRM):

The CRM system is planned to be implemented through two complementary units, namely: 1) the Complaints Management Unit, and 2) the Lead Management Unit.

The customer feedback electronic as well as hard copy templates were unified to follow a five-level scale to enable better analysis.

The electronic feedback templates, through ISC tablets, was only operative in the ISC main branch in Cairo till July 2018. From September 2018, the ISC electronic feedback system underwent a trial phase in all branches to be completely implemented in November 2018.

Investment Map and Portal: The second phase of the map was completed, and it is undergoing the User Acceptance

Test (UAT), where all the features are included, and the system is under test before it goes live during the coming 6 months.

Investors options: the new phase allows online registration for investors to create accounts where they can research the map, save their findings, send inquiries and receive feedback. Also, when investors register their interest in specific opportunities, the map provides notification options when related biddings are announced.

Government to government relations: It provides direct access to governorates and relevant government entities to update the data and provide additional investment opportunities directly through access accounts to backend. This presents a major transition in inter-government interaction as it gets rid of all paper work and allows updates to be directly managed by responsible entities.

Virtual Library: the map provides a virtual library where MIIC and GAFI publications as well as relevant resources are available to investors to navigate and download.

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Capacity Building: 29 employees attended a training program on “Legislative Impact in Egypt” to enhance

their understanding of the legislative and regulatory opportunities and challenges in investment. -August 2018

Rotation program for ISC employees was launched to allow employees to work in different departments in GAFI to improve their knowledge and understanding of different sectors. Meanwhile, 50 employees participated in a workshop on the Investment Law to inform employees about its different features and incentives. -September 2018

16 employees participated in a workshop on “customers services and interpersonal skills”, while 20 employees were trained on “customer satisfaction assessment”. Meanwhile, weekly workshops were organized to inform employees about streamlining business processes and was attended by 40 employees. Finally, 15 employees were trained on investment services and investment promotion activities. -October 2018

Around 100 employees were trained on soft skills like analytical thinking, problem solving, team building, office management skills and leadership skills. -November 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:Business Process Reengineering:

Three main IDA business processes were reengineered, namely: i) industrial licensing, ii) issuing construction permits, and iii) industrial land allocation processes, which included 11 sub-processes.

Accreditation Offices: In accordance to Decree number 1355 for 2017 that regulates the rules and procedures

for licensing for the accreditation offices, final technical selection for a number of "six" applied accreditation offices is done and will be signed once completed with the insurance policy.

Investor Industrial Guide: The Investor Industrial Guide has been technically approved by IDA and legally reviewed

by ERRADA. The industrial activities linked between Main Industrial Activities (ISIC 4 standard), Sub Activities (ISIC 4 standard) & Related Products (HS standard).

Land Allocation & Executive Regulation:• Based on law number 83 for 2016, IDA has started the process of land transfer through a “Assets Transfer” process in which selected industrial zones are transferred to IDA in batches in exchange of the cost of the infrastructure and the land itself.• IDA is leading the process of drafting the land allocation executive regulations; however,

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it has not been issued yet. In same context, IDA formed a committee where ERRADA is a member, to draft the executive regulations of the new IDA law, land allocation regulations might be a section in it. • Process Automation: • The project finalized the automation implementation and testing of industrial licensing and industrial registry (phase 1) in September 2018 and undertook the users' training at the head office for 42 users on May 2018. • The project is currently working on phase 3 which is the land allocation automation and expected to be finalized in February 2019. • IDA launched the online portal in May 2018 and is expected to finalize the online application features by March 2019.

Capacity Building: 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: Completed Sub-component 2.2: Implementing a New Approach to Industrial Land Management and an Online Land Allocation System

Status of Implementation: In progress 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:

Legally reviewed the industrial developer’s guideline prepared by the IDA. Studied different cases adopted by some countries in the region such as Jordan, the

Emirate of Dubai (UAE) and the Kingdom of Saudi Arabia were in order to gain a better understanding of the industrial developers’ different models and reviewed the legislations related to the industrial developers.

Issued a number of recommendations which aim to ease the cooperation between the IDA and Private Industrial Developers.

Shared in drafting the land allocation section in the proposed executive regulation of Law No (95) of 2018.

Participated in the consultation sessions concerning the industrial developer and the land allocation to identify the challenges to be taken into consideration during the drafting of the executive regulation..

Information Portal: The online portal has been launched. The link: http://share.errada.gov.eg/portal A new software architecture has been designed to address several design problems and

introduce a more robust version of the software where new features can be easily plugged in and functionality changes require less rewriting.

A tool has been developed for scanning and importing that data into the portal’s 80

database, detecting errors, reporting them back and resuming the process once we had corrected the impeding faults.

The governmental authority dataset has been used to digitally generate a standardized code for Egyptian governmental authorities that has been recently adopted by the Ministry of Investment and International Cooperation.

The search engine has employed smarter searching algorithms to better sort the results according to their relevance to the search query.

Imported list of provincial administrations received from the process mapping group them into the Portal’s database as governmental authorities.

Training sessions were conducted to coach the process mapping team on the portal administration panel and its toolbox.

The user entity has been augmented with unlimited metadata that can store any number of details about the user. Some of it are automatically collected from user browsing behavior in addition to what the user provides about him/herself during registration and afterward to fine-tune their browsing experience or by participating in consultation surveys.

Public/Private Consultations: Conducted a number of consultation session using different types of consultations and

techniques on the following topics: The industrial licensing law and its executive regulations. Industrial developers and studying how to boost their contribution in providing industrial

land and facilities for the industrial investor. ERRADA online portal, which was attended by the counselor to the Minister of Trade and

Industry and counselor to the Minister of investment and several entities representors. Industrial land allocation.

Capacity Building: ERRADA completed a legal drafting workshop for ERRADA employees. ERRADA conducted a training for process mapping techniques to form a permanent unit

for process mapping within ERRADA structure.



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

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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 the OECD Investment Policy Review (IPR) of Egypt conducted throughout 2018- early 2019. 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.

The drafting of the review is reaching completion. A full draft review will be shared with MIIC and GAFI, for feedback and comments, in January 2019.

FDI statistics

The work on FDI statistics has reached completion. After several rounds of comments from the FDI Intelligence Unit of GAFI, the report on Compiling FDI statistics in Egypt has been finalized and shared with the Vice-Minister of GAFI during his visit to the OECD in October 2018.

The following activities will be conducted in 2019:

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

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

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

Participation of MIIC and GAFI in the OECD Investment Committee to discuss international investment policy developments (March 2019).

Participation of representatives of the FDI Intelligence Unit of GAFI to the OECD Working Group on International Investment Statistics (March 2019).

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.

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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 spring 2019 following the country’s priorities and work of other international organizations. The focus of the capacity-building workshop could be on peer-learning in IIA negotiations, depending on the request from the new GAFI management

Sub-component 4.4: Investment dispute settlement


Building on a first workshop on the issue in March 2016, the OECD organized a second 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) with 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-

Execution (US$)

(x)


(y)

Total (US$)


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

Amount Received from Trustee (b): WBG: 5,000,000 OECD: 1,176,539 USD 6,176,539Actual Amount Disbursed (c): WBG: 3,466,948.72 OECD: 1,304,157 USD 4,771,105.72


Year Jan-June Jul-Dec Total by Year End

2019OECD: 179,843

USDWBG: 1,210,324

N/A OECD: 179,843 USDWBG: 1,210,324

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OECD1: 99,792 USDWBG: 459,400

OECD: 208 WBG: 10

OECD: 100,000 USDWBG: 399,347

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].

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PDO: 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

ResponsibilityDescription

Jul 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 10 492 500 500 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 ValuesFrequency Data Source/

Methodology

Data Collection

ResponsibilityDescription

YR1 YR2 YR3 YR4 Target

Av. Duration of Licensing Process Day 324 250 180 29 19 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 35 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 capacity”

Effective investment policy, legal and # # No no yes yes yes Annually Progress Report PMU Corresponds with Transition Fund

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institutional framework and sound international investment regime

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 22 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)

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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 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 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 workshops organized

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. OECD paper on the “role of the Ministerial Committees in preventing, Managing and Settling Investment Disputes in Egypt” presented at the June 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

Number of cases increased throughout the project duration but efficiency of institutions in solving disputes including through amicable settlement increased significantly

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Energy Social Safety Nets Sector Reforms Technical Assistance Project

(last PR: Dec 2018)

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 July 31st, 2018 project disbursement has reached $6.48 million (99.75%). 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

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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, the project unit calculates that over 1497 persons attended a capacity building event, mostly seminars and training. However, some individuals attended more than one capacity building event. The project team estimates that there were 700-800 separate individuals who attended events. Of these individuals they estimate that about 40 percent were female. The target for female attendance was 35 percent. Thus, the project met these two indicators.


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

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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.

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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

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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.

Status of Implementation: 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

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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):

6,483,426 6,483,426

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 00 597,200

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Annex 1: Results Framework and Monitoring

Country: Egypt, Arab Rep

Project Name: EGYPT Energy/Social Safety Nets Sector Reforms Technical Assistance (P144305)

Results Framework

.

Project Development Objectives

.

PDO Statement

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 reform.

These results are at Project Level

.

Project Development Objective Indicators

Cumulative Target Values Data Source/ Responsibility for

Indicator Name CoreUnit of Measure

BaselineNov 2013 -

Oct2014A

Nov 2014 - Oct 2015

A

Nov 2015 – Oct 2016

A

Nov 2016 – Dec 2017

A

Jan 18 – July 2018

AEnd Target Frequency

Methodology Data Collection

Direct project beneficiaries

Number 0.00 0 (A) 0 300 300 800 500.00Semi-Annually

Progress Reports, Implementation Support Reports

PMT and World Bank Team

Female beneficiaries

PercentageSub-Type

0.00 0 (A) 0 30 30 50 35 Semi-annually Progress Reports, Implementati

PMT and World Bank Team

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Supplementalon Support Reports

Reform options analyzed to improve the financial viability and governance of EEHC is prepared.

Yes/No No No (A) No Yes Yes Yes YesSemi-Annually


PMT, and World Bank Team

Capacity Building for Transmission System Operator




An action plan is prepared for the 1) establishment of an Energy Efficiency Unit at the Ministry of Electricity and 2) for at leasttwo of the energy efficiency projects in NEEAP.

Yes/No No No (A) No No Yes Yes YesSemi-Annually



A comprehensive energy pricing and fuel switching strategy for Egypt including detailed action plans for compensatory measures to mitigate the impact of subsidy removal is

Yes/No No No (A) No No Yes Yes Yes Semi- Annually


PMT, World Bank Team

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developed.

A communication strategy for fuel subsidy reform including public consultation is prepared.




A database of the poor and vulnerable is developed with 10 million households registered in the new poverty database.

Yes/No No No (A) No No Yes Yes YesSemi-Annually

Progress Reports and Implementation Support Reports


.

Intermediate Results Indicators

Cumulative Target Values Data Source/ Responsibility for

Indicator Name CoreUnit of Measure

Baseline YR1 YR2 YR3 YR4 End Target FrequencyMethodology Data Collection

EEHC Capacity building program in financial and governance is developed and number of training workshops/events for EEHC.

Yes/No No No (A) Yes Yes Yes Yes YesSemi-Annually



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Capacity building of TSO

Yes/No No No No Yes Yes Yes YesSemi- Annually



Inter-ministerial coordination is established and maintained to facilitate and implement energy subsidy and communication strategies and social safety nets program.

Yes/No Yes (A) No Yes Yes Yes Yes YesSemi-Annually



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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

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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 trustees12 . The new board of trustees include in its membership all key stakeholders, with representation from same above-mentioned institutions which represent key players in

12 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.

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microfinance industry. Sub-component 1.3: Conducting study tours Status of Implementation: An international Study tour to Uganda13 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

13Why 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.

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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 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).

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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

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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.

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Previous Rating: Satisfactory Current Rating: Satisfactory Cost (US$): 1 millionSub-component 3.1: Enhancing Consumer protection, financial literacy, and public awareness campaigns

Status of Implementation: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

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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

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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] 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

[[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.

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Component II: Establishing and Operationalizing the Microfinance Unit at FRAMicrofinance 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

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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


Total Amount Disbursed (Direct and Indirect in US$): 621,632 USD






Secondary Pillar(s): Investing in Sustainable GrowthInclusive Development and Job CreationCompetitiveness and Integration

I. 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

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Satisfactory


Progress has been strongly 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 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)

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



Study visit of Egyptian and Tunisian Parliamentarians to an OECD country (Elements of Comp. 1.2 and Comp 2.2)

OECD in collaboration with the NCW

April 2019

B. 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 magnitude of the constitutional reforms impacting Egypt’s Parliament, 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 were presented at a Regional Conference 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,

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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. Thanks to the technical extension of the project, the study visit is scheduled in April 2019.

Component 2: Strengthening capacity and skills of women parliamentarians and the national and local level

Previous Rating: Satisfactory


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. The main findings of the report were presented and discussed during in that occasion. 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 was made available 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 April 2019 given the technical extension of the project.

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 public consultation 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.

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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 2018, 15 female MPs participated, on the 6th of May 2018 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 DialoguePrevious Rating: Satisfactory


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)

This year’s regional dialogue took place in Rabat on 10-11 July and was launched jointly by Morocco’s Minister of Family, Solidarity, Equality and Social Development Ms. Bassima Hakkaoui and the Deputy Secretary-General of the OECD Ms. Mari Kiviniemi. Entitled “Women’s Leadership and Political Representation”, the conference featured the launch of the OECD assessment reports of Morocco, Jordan and Egypt on gender-sensitive practices within parliaments and women’s political participation at the central and local levels. The conference sessions focused on: women’s political participation at the local level and in rural areas; the voice and capacities of elected women; reinforcing women’s empowerment by aligning legislative and constitutional frameworks; combating violence and stereotypes to reinforce women’s political leadership; and the role of the media and civil society in supporting women’s political representation.In the framework of the regional MENA Transition Fund Project on “Women’s participation in parliaments and policy-making”, 6 parliamentarians and members of the Secretariat from Egypt had 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$)111

(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 End2019 OECD: 8,000 OECD: 3,701 USD OECD: 11,701 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

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Indicators by Component Unit Baseline Cumulative Target Values Frequency Data Source/Methodology


Description (Indicator Definition, etc.)

2016‘A’

2017‘A’

2018‘A’

2019‘F’

Indicator 1: No. of assessments and guidelines completed and approved

Quantitative 0 3 8 10 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 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

Quantitative 0 1 2 3 3 Annually Project progress reports


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 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 Quantitative 0 100 200 210 210 Annually Project progress


Public sector staff

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representatives of parliamentary secretariat, parliamentarians, local elected officials and women candidates

reports 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 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 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 36 43 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

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Indicator 3: Studies, assessments, reports, action plans, roadmaps, models of good practices or frameworks endorsed

Quantitative 0 3 4 4 4 Once in 1st and 2nd year


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

126 126 126 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 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 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 3 Annually Project Progress Reports

PIT Number of models of good practices

115

Indicator 8 : Documents produced and endorsed at the regional level

Quantitative 0 1 2 3 3 Annually Project Progress Reports

PIT Studies, assessments, reports, action plans, roadmaps, models of good practices or framework

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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 program adopted 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

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development, and iv) project management.

Regarding the implementation of Component (i), Organizational and Institutional Strengthening, four subcomponents were identified to achieve its objective. These included, reviewing and upgrading existing procedures, policies and workflows, improving the capacities of existing units and/or creating new units, and organizing specific study tours for the Ministry senior and junior staff to learn from successful models and enhance peer learning.

Sub-component 1.1: Carry out the Upgrading and Enhancement of existing policies and procedures workflow and organizational structure of the Ministry.

Due to the complementary nature of this subcomponent and developing an effective HR strategy, which is part of Component (ii), it was agreed, on the 13th of Feb. 2018, between MIIC and the Bank to merge them both in one activity. This is to be implemented by hiring a consultancy firm to assess the current work flow and develop the optimal strategy for upgrading and enhancing workflow and organizational structure as well as HR strategy to improve ODA management in the Ministry.

To that end, the needed ToR and the Request of Expression of Interest (REOI) were shared with the AfDB for review and no objection, and suggestions for modifications in the content were received. Upon amendments, ToR was approved by the Bank, and REOI was advertised on June 20th in el Ahram Newspaper and the Egyptian Gazette, as well as on AfDB and UNDP website and MIIC social media channels. The RFP-QCBS was issued on 21st

of October and the deadline for submission on 2nd of December.

Four proposals were received from consulting firms and were publicly opened by the TOC and shared with the Technical Evaluation Committee. A fifth proposal, however, was received after the closing date on the 4 th of December and the relevant consultant, AARC, accuses the Ministry for the delay in receipt. The PMU sent a detailed formal letter to the Bank to seek advice on whether to include or reject the proposal for the review, therefore, the technical evaluation was put on hold until a final decision is received from the bank.

Sub-component 1.2: Strengthening the Ministry’s capacity in specialized new or strengthened Units by training or recruiting consultants

To fulfill this subcomponent, three experts including; Strategic Planning Expert, Economist, and a Monitoring and Evaluation Expert were recruited to support the daily activities and operations of the different technical units. Meanwhile, 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 and on the job training provided by the Strategic Planning Expert on topics such as scientific data collection methods, validation and verification of database tools, report writing, preparing policy notes, to name a few. The Economist, on the other hand, provides technical expertise to the Minister’s office regarding investment policies and macroeconomic conditions. Finally, the Monitoring and Evaluation Expert provided support to the M&E team in expanding the scope of operation to include policy evaluations, evaluation of development partners’ operations as well as thematic evaluation.

Sub-component 1.3: Organize specific study tours for selected senior economic researchers and economic researchers

The project supports the Ministry in advancing the capacity of staff through international exposure to successful practices in development cooperation management. In this regard, the PMU requested in January 2018 all Head of Sectors and Central Departments in MIIC to identify their training gaps and propose study tours overseas. Criteria for candidates’ selection were identified to facilitate the selection process, and guarantee its objectivity. These included; candidates to be working at the Ministry for more than one year, proficiency in writing and reading English language, age to be under 55 years, in addition to a written commitment to work at the Ministry for at least one year after returning from the study tour.

Proposals were received from different sectors, and study visits in different countries were suggested. A

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filtration process followed to review candidates’ qualifications to ensure that they fit the pre-set criteria. Each sector would be notified with the results so that they can directly coordinate with the training entities and apply for the study tours, providing the project staff with confirmation letters as proof. On the 13 th of Feb. 2018, the PMU Proposed to the Bank the need to hire a travel agency, specialized to plan and complete all logistical procedures and steps related to travel, including; visa application, flights and accommodation reservation, transportation and others.

The Procurement officer reviewed offers from potential international training institutes and International Organizations and a detailed training plan including the study tour’s costs and all technical and financial details was sent to the Bank for no objection on 19th of April 2018. A meeting was conducted with AfDB on 30th of May, 2018 to finalize the proposal submitted.

Upon sharing the training plan with Her Excellency, the Minister, she advised on postponing the plan until the institutional development consultancy presents its recommendations to align the planned training activities with the needed enhancement.

Component (ii): Human Resource Development. Initially, four subcomponents were planned to take place under this component. However, due to the similar and complementary role of some of them, the first subcomponent which entailed developing HR strategy was combined with the subcomponent (1.1), namely, Upgrading and Enhancing existing policies, procedures, workflow and organizational structure of the Ministry. Similarly, subcomponents 2.2 and 2.3 were merged as they both target Capacity building through training programs.

Sub-component 2.1: Conduct an in-depth review (HR Strategy) of the ministry’s human resources

Due to the complementary nature of HR strategy and the first subcomponent, namely, Upgrading and Enhancing existing policies, procedures, workflow and organizational structure of the Ministry, it was agreed, on the 13th of Feb. 2018, between MIIC and the Bank to merge them both in one activity. (Refer to review of (1.1).

Sub-component 2.2 and 2.3 (merged into one): Design and implement a training program for Senior and Middle Level Staff; and Trainings for staff on specialized training and soft skills and IT skills

The objective of the subcomponents is to provide capacity building activities to senior, mid-level and junior technical and administrative staff of the Ministry on different topics including technical, IT and soft skills. To that end, the Ministry of International Cooperation (now Ministry of Investment and International Cooperation) signed a training contract with a joint venture of the two consulting firms, namely; MDF and NSCE, on 27th of August, 2017. The Inception Report which describes the implementation of the contract and the roles of both parties was approves in October 2017. Thereupon, the roll out of training modules started in January 2018 and progressed well thereafter

According to the inception report, a needs assessment was conducted and training needs were identified to be 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. An activity was added to the procurement plan with the main objective of offering English courses as second language for 115 employees.

The ToR and RFQ were sent to the Bank on the 21st of May and clearance was received on 7th of June, 2018. It is planned to train 115 employees in four stages and the duration of the whole training program should not exceed 60 training weeks. Offers were received from different bidders and were evaluated. A request for quotation was issued and the contract was signed last July 2018 with the American University in Cairo to carry out the training at the University’s premises. Placement Assessments were completed and accordingly the levels required were determined. The program will start on the 15th of January, 2019.

As for the inhouse training, the total number of trainees as 464 in 44 training programs that were executed

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during the period from January 28th till December 31st, 2018. This included 20 trainees in the Training of Trainer (ToT) program. It also comprised 17 programs with 140 basic and advanced technical training programs covering the topics of ODA Management in the sectors of Agriculture, Electricity, Education, Health, Infrastructure and Financial Inclusion, in addition to programs on Monitoring & Evaluation, Negotiation Skills and Negotiations in International Development.

A number of 11 administrative training courses were also conducted and attended by 134 trainees covering the topics of Business & Soft Skills, Result Based Management and Effective Change Management. As for IT training programs, 14 programs were conducted and attended by 170 trainees, covering Excel, Word, Power Point in addition to Mastering Social Media.

Participants’ evaluation of the offered training courses was generally positive confirming that new knowledge and skills acquired positively influence their daily work and activities. However, two main negative comments were repeated throughout the different courses which were; the short duration of the training and the lack of practical implementation examples that are needed for technical training.

Sub-component 2.4: Specialized training courses or executive trainings (from 2 to 6 weeks) at specialized institutes abroad

This subcomponent is still in the planning phase, as opportunities in different international institutes are being studies for their relevance and expected impact on enhancing the work environment at the Ministry.

As for Component (iii), enhancing the technical infrastructure of MIIC, it includes refurbishing an inhouse two rooms’ training center with modern and state of the art training equipment, enhancing the IT infrastructure at the ministry, establishing ODA Information Management System, and launching an updated website for the Ministry with all the features that resemble its activities.

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.

The training centers were completely refurbished and equipped with needed furniture and equipment by December 2017 and laptops for trainees’ support, especially in IT trainings, were installed in the center in May 2018. The project thus facilitated an enabling environment for training which accommodates 50 participants where all training activities can be executed.

Sub-component 3.2: Hiring an IT firm

Enhancing the IT infrastructure at the ministry entailed hiring an IT firm to make a technical assessment of the existing facilities and equipment, identify gaps and propose recommendations. The project drafted the ToR and was sent to the Bank by end of April 2018 for approval. The ToR was cleaered by the Bank. The REOI was published in el Ahram Newspaper and the Egyptian gazette, in addition to different social media channels, on June 21st. The deadline for submission was on the 11th of July, 2018.

Request for combined Technical and Financial Proposal along with the Terms of Reference was sent to the first short listed firm, as per the CQS that was approved in the procurement plan, on the 14 th of October, 2018, with the closing date to be the 4th of November. The proposal was received and sent for technical evaluation committee but was not technically acceptable. A series of documented teleconference negotiations and meetings thus took place in order to reach an agreement. However, the negotiations failed and a request to move to the second shortlisted firm was sent to the bank.The rejected company however, did not sign the minutes of the meeting to complete the procedures and expedite the process with the second short-listed company.

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Few IT equipment are still needed for the day to day operations of the Ministry’s employees to enable the staff to enhance its performance in a more accurate and efficient manner.

Sub-component 3.3: Strengthening the Ministry’s capacity in providing timely and accurate information on aid and the status of cooperation

To strengthen the Ministry’s capacity of providing timely and accurate information on aid and the status of cooperation, the ToR of designing and developing an Information Management System was approved by the Bank on 13th of March, 2018. IEOR was advertised in the local newspaper with closing date 30th of March, 2018. As mostly local individual consultants expressed interest, the IEOR was modified to attract consulting companies rather than individuals and sent to the Bank on 18th of April, 2018 to be re-advertised to receive REOI from international firms. The REOI was advertised on the 13th of June with a deadline of 1st of July,2018 to receive applications.

The RFP-QCBS was issued on the 30th of August with the closing date being the 15th of October. In response, 5 proposals were received and the Technical envelopes were publicly opened by the TOC. The proposals were sent to the Technical Evaluation Committee, and only 2 bidders were technically accepted. The Evaluation report was then cleared by the bank. The financial envelopes were opened by the TOC in public, and the financial Evaluation Report was completed and sent to the bank for clearance prior to contract signature.

Sub-component 3.4: Hiring a web designer to revamp the web site

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. Last but not least, the project is expected to close by March 31st, 2020.


Expected Date of

DeliveryReviewing the Claim of the Consulting Firm AARC to Include or Reject in the Upgrading and Enhancement subcomponent (1.1)

AfDB June 2019

Amendments to the contract of E-Learning component are awaiting AFDB clearance

AfDB April 2019

Clearance for Contract Signature for the ODA Information System AfDB March 2019Continuation of Training sessions during the upcoming quarter MDF under

supervision of MIIC

Mar - Sept 2019

Technical Evaluation “Upgrading and Enhancement of existing policies and procedures workflow and HR system sent to shortlisted CFs

MIICAfDB

April 2019

Signing Contract for ODA Information System MIIC April 2019

C. Implementation Status of Components Component 1: Organizational and Institutional StrengtheningPrevious Rating: Satisfactory Current Rating: Satisfactory

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Sub-component 1.1: Carry out the Upgrading and Enhancement of existing policies and procedures workflow and organizational structure of the Ministry and Developing HR System.Status of Implementation: In Progress; Awaiting AfDB ResponseUpon the agreement between MIIC and the Bank to merge this subcomponent with the HR Strategy on the 13 th of Feb. 2018, the ToR and the Request of Expression of Interest (REOI) to hire the consultancy firm were shared and approved by the Bank. REOI was advertised on June 20th and the RFP-QCBS was issued on 21st of October. The deadline for submission was on 2nd of December, where MIIC received four proposals.

A fifth proposal, however, was received after the closing date on the 4th of December and the relevant consultant, AARC, accuses the Ministry for the delay in receipt. The PMU sent a detailed formal letter to the Bank to seek advice on whether to include or reject the proposal in the review, therefore, the technical evaluation was put on hold until a final decision is received from the bank.

Sub-component 1.2: Strengthening the Ministry’s capacity in specialized new or strengthened Units by training or recruiting consultantsStatus of Implementation: In ProgressAll 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.

-Sub-component 1.3: Organize specific study tours for selected senior economic researchers and economic researchersStatus of Implementation: On hold

With respect to the official merger of the Ministries of Investment and International Cooperation, and the ongoing selection of a consultant to advise on upgrading and enhancing workflow and organizational structure, it the PMU finds it more effective to discuss with the consulting firm the capacity building needs that are more relevant to the new structure of the Ministry.

It is worth mentioning that the preliminary plan for the study tours was developed in consultation with all the departments that work with international cooperation. Once the PMU receives feedback from the consultant, a roll-out of the plan will begin.

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: In Progress; Awaiting AfDB ResponseIt 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, as explained in Subcomponent 1.1, the technical selection of the consulting firm is in progress, pending the response of the AfDB on the letter concerning the complaining firm.

Sub-component 2.2 and 2.3 (merged into one): Design and implement a training program for Senior and Middle Level Staff

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Status of Implementation: In Progress

The activity under this component is 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.

English language courses were added to the training program content to be provided for 115 employees of the Ministry. The ToR and RFQ were sent to the Bank on the 21st of May and clearance was received on 7th of June, 2018. It is planned to train 115 employees in four stages and the duration of the whole training program should not exceed 60 training weeks. Offers were received from different bidders and were evaluated. A request for quotation was issued and the contract was signed last July 2018 with the American University in Cairo to carry out the training at the University’s premises. Placement Assessments were completed and accordingly the levels required were determined. The program will start on the 15th of January, 2019.

As for the inhouse training, the total number of trainees was 464 in 44 training programs that were executed during the period from January 28th till December 31st, 2018. This included 20 trainees in the Training of Trainer (ToT) program. It also comprised 17 programs with 140 basic and advanced technical training programs covering the topics of ODA Management in the sectors of Agriculture, Electricity, Education, Health, Infrastructure and Financial Inclusion, in addition to programs on Monitoring & Evaluation, Negotiation Skills and Negotiations in International Development.

A number of 11 administrative training courses were also conducted and attended by 134 trainees covering the topics of Business & Soft Skills, Result Based Management and Effective Change Management. As for IT training programs, 14 programs were conducted and attended by 170 trainees, covering Excel, Word, Power Point in addition to Mastering Social Media.

Participants’ evaluations of all training courses are documented. All evaluations were positive confirming that new knowledge and skills have been acquired and can successfully be practiced in their current jobs. On the other hand, participants’ concerns and comments regarding training experts or training materials were taken into consideration and regularly communicated to the Consulting firm after each round. Discussions cover all weaknesses, and possible ways to improve training activities in the future rounds. Most of the participants’ concerns were centered around the limited time for practical application, and the relevance of training examples to their work at the Ministry.

It is worth noting that supervisors from the General Department for Training at the Ministry were always present in all trainings, taking their own notes to monitor progress and ensure quality of the training.

As for the E-Learning component, amendment to the contract was prepared and signed and waiting for AFDB clearance,

Sub-component 2.4: Specialized training courses or executive trainings (from 2 to 6 weeks) at specialized institutes abroad

Status of Implementation: This subcomponent is still in the planning phase, as opportunities in different international institutes are being studies for their relevance and expected impact on enhancing the work environment at the Ministry.

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.

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Status of Implementation: In ProgressThe training centers were completely refurbished and equipped with needed furniture and equipment by December 2017 and laptops for trainees’ support, especially in IT trainings, were installed in the center in May 2018. The project thus facilitated an enabling environment for training which accommodates 50 participants where all training activities can be executed.

Additional IT equipment needed is currently under procurement process. Sub-component 3.2: Hiring an ICT Consultant firm

Status of Implementation: Request for combined Technical and Financial Proposal along with the Terms of Reference was sent to the first short listed firm on the 14th of October, 2018, with the closing date to be the 4 th of November. Proposals were received and sent for technical evaluation committee but were not technically acceptable, therefore a series of documented teleconference negotiations and meetings took place in order to reach an agreement. However, the negotiations failed and a request to move to the second shortlisted firm was sent to the bank.

Few IT equipment are still needed for the day to day operations of the Ministry’s employees to enable the staff to enhance its performance in a more accurate and efficient manner.

Sub-component 3.3: Strengthening the Ministry’s capacity in providing timely and accurate information on aid and the status of cooperation by the Design and development of ODA Info. Management System

Status of Implementation: Awaiting AfDB Clearance

The RFP-QCBS was issued on the 30th of August with the closing date being the 15th of October. In response, 5 proposals were received and the Technical envelopes were publicly opened by the TOC. The proposals were sent to the Technical Evaluation Committee, and only 2 bidders were technically accepted. The Evaluation report was then cleared by the bank. The financial envelopes were opened by the TOC in public, and the financial Evaluation Report was completed and sent to the bank for clearance prior to contract signature.

Sub-component 3.4: Hiring a web designer to revamp the web site


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. Last but not least, the project is expected to close by March 31st, 2020.

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

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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 contract was signed with the firm Talal Abu Ghazaleh and has been effective since October 2018 for the Audit services covering the period between 26th of Jan. 2016 and 31st of Dec. 2017.


(US$)

(x)


(y)

Total (US$)


4,385,000 4,385,000


4,385,000 4,385,000

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

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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 (31.12.2018)

Jun. 2016

A

Dec. 201

6A

Jun. 201

7A

Dec. 201

7A

Jun. 201

8A

Dec.

2018A

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

USD 5.3 billion in 41 projects

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 1 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

0 250 300 450 500 500 500 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)

464 in 44 programs


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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 (31.12.2018)

Jun. 2016

A

Dec. 201

6A

Jun. 201

7A

Dec. 201

7A

Jun. 201

8A

Dec.

2018A

Jun. 201

9F

Dec. 201

9F

Jun.202

0F

Dec. 2020

F

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

the institutional upgrading report is merged with the HR strategy ansd are both in the procurement phase

Intermediate Result indicator 1b: Strengthening or Establishing new Units

Organigram

Current organigram

0 0 0 0 2 3 3 0 0 0 Annual Organizational and institutional 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

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Intermediate Result (Component Two): Human Resource Development

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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

The HR strategy and the institutional upgrading report are merged into one document that is currently in the procurement phase

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

A total of 170 trainees in 14 programs

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

140 trainees in 17 programs.

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 services

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 training

Training labs fully equipped-other MIIC IT requirements will be determined based on the ICT consultancy firm assessment

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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

Procurement in progress in the final negotiation stage

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

Awaiting AfDB Clearance for contract award

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.

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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]



Total Amount Disbursed (Direct and Indirect in US$): 668,850

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.


Project Development Objective: Strengthen the Government of Egypt’s capacity to implement anti-corruption strategies


Satisfactory



Brief Summary of Project Implementation Status: The projects development objective is to strengthen the Government of Egypt’s capacity to implement anti-corruption strategies. The project has three inter-related components: (i) Strengthening capacity of ACA to effectively combat corruption; (ii) Advocacy, awareness raising and knowledge management on AC; and (iii) Project Management.

The project was declared effective in January 2017, and launched in February 2018. The first disbursement was made in February. During the launch a tentative 18 month project work plan was agreed and the initial

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procurement plan finalized. Since the project was launched the main activities undertaken include: 1) Preparation and airing of media campaign on anti-corruption; 2) Study tours and international trainings for approx. 40 ACA staff to US, Italy and Indonesia; 3) English language courses for 154 ACA staff provided locally.

The work plan for 2018 has not been implemented as envisaged, furthermore ACA informed the Bank already in February 2018 of the need to re-prioritize certain activities and re-allocate budget. This includes the complaints referral system, which ACA has financed with own funds.

Since the launch of the project implementation challenges have included difficulties in preparing and agreeing on the next 18 month work plan and training plan- with requests for no-objection on trainings and other activities being submitted on an ad-hoc basis and with insufficient supporting documentation. In certain cases this has caused delay in the ability of the Bank to provide its clearance, causing frustration at the level of ACA. Another challenge has been on monitoring and reporting of results of activities undertaken to the Bank, including outcome level progress. A mission was conducted in November 2018 to address the implementation challenges.

A main conclusion of the mission was the need to strengthen the project implementation team. Following the mission, ACA appointed a focal point within MIIC, Ms Nagla Arafa to act as an intermediary with the Bank on all technical aspects. It was also agreed to accelerate recruitment of consultants to form part of the project implementation team, to support the development of the next work plan, training plan and to assure monitoring and reporting on results of the project.

Actions to be Taken Responsible

PartyExpected Date of Delivery

Recruitment of consultants to form part of project implementation team

MIIC January 2019

Follow-up mission to discuss and finalise coming 18 month work plan, training plan and procurement plan

MIIC 2/1/2019

C. Implementation Status of Components 14

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 planned activity was 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 courses will

14 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.

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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 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 on languages and 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.

Status of Implementation: Partially implemented: The capacity assessment has not yet been undertaken and ToRs for the consultant have not yet been submitted to the Bank for clearance. Meanwhile, ACA has proceeded to organsie international training and study tours as foreseen under the project. Study tours have been conducted to the USA, Italy and Indonesia, and 12 staff have attended specialized training on OSINT, and 10 ACA staff have been trained on money laundering and recovery of stolen assets. English as a Second Language (ESL) training for 154 ACA staff over the course of 6 months who are not proficient in English is also in process of being delivered. The first study tour was conducted in the 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. The second study tour was to the Anti-Corruption Authority of Italy. Five ACA officials attended the one week peer-to-peer training and exchange with Indonesia’s Corruption Eradication Commission KPK in November 2018.Ten delegates from ACA benefitted from a 5 day workshop with IACRC in August 2018, The five-day workshop was built around a realistic simulated case in which teams of participants had to plan and execute a complex investigation involving suspected bribery, money laundering and the recovery of assets from abroad. https://iacrc.org/fraud-and-corruption/training-workshop-for-egypts-administrative-control-agency/

Under this component ACA has been advised by the Bank to prioritize the recruitment of the consultant to undertake the capacity needs assessment, as this consultant would also assist with the development of a comprehensive training plan, including local mass trainings for ACA staff to be delivered over the remainder of the project period. . 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

133

https://iacrc.org/fraud-and-corruption/training-workshop-for-egypts-administrative-control-agency/

https://iacrc.org/fraud-and-corruption/training-workshop-for-egypts-administrative-control-agency/

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.

Status of Implementation: Not yet started, there is a need to re-assess the needs of ACA with regards ICT systems, as progress has been made utilizing ACA own funds.

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, but was aired in August 2018 instead. 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

134

tours of African Peers to Egypt.

Status of Implementation: Not yet started- ACA is planning a regional event during the first quarter of 2019, to be funded under the project.

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 nominated by ACA is Mr. El Beheiry; furthermore to facilitate technical level exchanges MoIIC has nominated a senior staff to assist with project management, Ms Naglaa Arafa. Procurement is currently being handled by MIIC general project implementation support team, however due to the workload, it has been agreed to engage a full time procurement assistant for the project. The consultant will be recruited in Q1. Financial Management is being dealt with by MoIIC (Mr. Bahaa). Monitoring and Evaluation officer is about to be recruited as is a project admin assistant.

[add rows as needed]

D. Disbursements of Transition Fund Funds for Direct Project Activities15 Country-Execution

(US$)

(x)

Direct Cost16 for ISA-Execution

(US$)(y)

Total (US$)


3,350,000 150,000 3,500,000


3,350,000 150,000 3,500,000


668,850 NA 668,850

E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)17

Year Jan-June Jul-Dec Total by Year End2018 US 280,000 US 388,350 US 668,8502019 US 35,000 US 750,000 US 1,10,0002020 US 700,000 US 800,000 US 1,500,000

15 Funds for direct project activities should include approved allocations for both country- and ISA-executed activities.16 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) 17 Enter actual disbursements for years past.

135

http://www.menatransitionfund.org/content/apply-funding

The exact disbursement forecast will be confirmed when 2018 work planning exercise completed- due in February 2019.

F. Disbursements of Funds for Indirect Costs (US$)Disbursed Available Total150,000 0 150,000

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G. Results Framework and MonitoringProject Development Objective (PDO): To strengthen the Government of Egypt’s capacity to implement anti-corruption strategies


MeasureBaseline2018 A


Data Source/Methodology


Collection


definition etc.)2018 (A)

2019(F)

2020(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,

Number of staff

0 194 150 250 Yearly Annual Report, Project Progress reports

ACA Training reports

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Asia)- Number of

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 70 194 120 250 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

3 risk assessme

None Risk Assess

2019 Reports ACA Risk assessments

138

Assessments nts ments developed to inform future strategy

Intermediate Result indicator Two: Media campaign launched on anti-corruption

2 year Media campaign

First year campaign delivered Aug 2018

Second media campaign

yearly ACA reports and the communication products

ACA TV ads, 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 appointed

M&E officer

and admin assista

nt recruit

ed

2017 MOIIC

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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 Email of ISA Project Leader: [email protected]

Recipient Entity: Social Housing and Mortgage Finance Fund (SHMFF)


May Abdel Hameed, [email protected]


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

Total Amount Disbursed (Direct and Indirect in US$): 1,434,705.34


5/30/2016


7/31/2016


12/31/2020



Secondary Pillar(s):Investing in Sustainable GrowthInclusive Development and Job Creation


Project Development Objective: The objectives of the project are to (i) strengthen the Social Housing and Mortgage Finance Fund (SHMFF) 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 SHMFF to facilitate the achievement of the Government of Egypt’s Inclusive Housing Finance Program (1 million houses).

Rating for progress towards achievement of objective: Satisfactory


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 SHMFF via financial sustainability models (an ongoing effort)- Demand assessment on social housing, carried out by CAPMAS- Private sector engagement in social housing- Developing the rental model- Developing the House Price Index- Training in IT and MIS- Aid in capacity building of the SHMFF through training staff across units, including internal audit, and

coordinating study tours for staff to learn from international experiences

Main Actions to be Taken Responsible Party Expected Date of Delivery

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Workshops - ongoing: Conduct several events to: (a) further improve the application process and highlight the importance of transparency among lenders; (b) provide technical assistance for private sector engagement in social housing; (c) provide technical assistance in navigating financial sustainability models; (d) take part in knowledge sharing of housing demand and disseminating pilot and final survey results.

The World Bank 12/31/2020

House Price Index (HPI) - ongoing: Ensure team continues to work alongside the CBE to develop a prototype model for HPI and support missions related to its development.


Demand and Rental Assessment – work in progress: follow up on the final delivery of survey results (more than 10,000 households), which is expected by March 2019.


Capacity Building of the SHMFF: (a) provide SHMFF, CBE and relevant stakeholders support by offering Housing Finance Courses; (b) continue to provide training in IT and MIS; (c) provide training in communications and public relations strategy; (d) further develop the capacity of the internal audit team; and (e) enable SHMFF to conduct a study tour in France to identify best practices and benchmarks in the social housing sector.



Component 1: SHMFF Policy Tools: This Component aims at building the capacity of SHMFF 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 SHMFF’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 SHMFF. Furthermore, the Bank is also assisting the SHMFF 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 SHMFF) was completed in January 2018, in partnership with PwC. The second one is work in progress and will be completed before March 2019. 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 SHMFF 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 SHMFF management team in DC during the Annual Meetings (Oct 13-15, 2017). Furthermore, the team arranged for the SHMFF to showcase the Egyptian experience and benefit from international experiences by participating in the Housing Finance Conference held in May 2018 in DC. The team will also arrange another Study Tour in the spring of 2019 to help the SHMFF learn from international experiences.

Sub-component 1.3: Capacity for developing at least one public program aiming at improving access to rental units for low-income households

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Status of Implementation: The Bank has been advising the authorities on best practices for the parameters of the public rent component. SHMFF 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 SHMFF, 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 support this task, and work is underway.

Component 2: Improving Governance and Institutional Building in the Social Housing Sector: This Component aims to build the capacity of the Government of Egypt (GoE) to be able to establish the governance structure and institutional settings of the SHMFF.Previous Rating: Moderately Satisfactory


Sub-component 2.1: : Capacity building of SHMFF internal units and functions

Status of Implementation: The Bank has been discussing with SHMFF’s management on best practices in internal audit and governance. Based on that, SHMFF has established its internal audit committee and function. The quality of the functions need improvement, which is a key area for capacity building provided by the Bank. The Bank is also planning to help the SHMFF build its capacity in strategic communications.

Sub-component 2.2: Building the capacity of SHMFF in Human Resources Management

Status of Implementation: A number of experts have been hired to build up the capacity of SHMFF 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 SHMFF in organizational issues

Status of Implementation: The Bank is providing technical opinion to SHMFF and the authorities on the merger law for SHF and MFF. The Bank will continue supporting SHMFF on organizational issues. The law was recently ratified in June 2018.

Sub-component 2.4: Training and Capacity building for SHMFF staff

Status of Implementation: Capacity building for SHMFF staff is in progress in areas of IT and MIS. The Bank provided several trainings to SHMFF 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.

The Bank is also planning to hire a communications agency to help develop the capabilities of SHMFF staff in strategic communication and client management and an internal audit consultant to advise on internal audit functions.


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(x)


(y)

Total (US$)


N/A 2,450,000 2,450,000


N/A 2,450,000 2,450,000

Actual Amount Disbursed (c): N/A 1,434,705.34 1,434,705.34E. Disbursement Forecast of Funds for Direct Project Activities by Calendar Year (US$)

Year Jan-June Jul-Dec Total by Year End2013 N/A N/A N/A2014 N/A N/A N/A2015 N/A N/A N/A2016 N/A 158,161 158,1612017 121,502 300,000 421,5022018 447,296.32 509,969.16 957,265.482019 300,000 (forecast) 200,000 (forecast) 500,000 (forecast)2020 109,064.81 109,064.81 218,129.61

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

Disbursed (US$) Available (US$) Total (US$)25,213.47 1,212.53 26,426

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Project Development Objective (PDO): The objectives of the project are to provide technical advice and capacity building support to SHMFF to be able to finalize a sound institutional set-up and prepare a housing strategy, which would include steps to ensure private sector engagement.


MeasureBaseline


FrequencyData Source/

Methodology


Collection


Jul 2016 –

Jun 2017

A

Jul 2017 –

Jan 2018

A

Jul 2018

–

Jan 2019

A

Jul 2019 Jul 2020

Indicator 1: Improved good governance in the public sector

Yes/No No Yes Yes Yes Yes Yes Annual SHMFF SHMFF/WB Enhanced capacity in SHMFF 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 Yes Yes Annual SHMFF SHMFF/WB GoE’s Housing strategy supports reform of government subsidy policies and thereby promote more efficient and equitable allocation of resources

Indicator 3: SHMFF adoption of New Housing Strategy

Yes/No No No No No No Yes Annual SHMFF SHMFF/WB

Indicator 4: SHMFF definition of at least one public-private arrangement

Yes/No No No No No No Yes Annual WB/SHMFF SHMFF/WB Reaching a workable model to engage the private sector in social housing

Indicator 5: SHMFF development of at least one public program aiming at improving access to rental units for low-income households

Yes/No No No Yes Yes Yes Yes Annual WB/SHMFF SHMFF/WB Providing technical capacity building for SHMFF through sharing international best practices of rent programs.

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Indicator 6: SHMFF implementation of a Housing Price Index

Yes/No No No No No No Yes Annual SHMFF WB Developing and continuously updating HPI


Component One: Developing a new housing strategy

Intermediate Result Indicator One: SHMFF Development of a new housing strategy

Yes/No No No No No No Yes Annual WB/SHMFF SHMFF/WB

Intermediate Result Indicator Two: Workshop on Housing Strategy

Yes/No No No No No No Yes Annual WB/SHMFF SHMFF/WB

Component Two: Institutional Set-up of SHMFF

Intermediate Result Indicator One: sharing international experience with SHMFF in internal governance

Yes/No No Yes Yes Yes Yes Yes Annual SHMFF WB

Intermediate Result Indicator Two: Sharing international experience with SHMFF in monitoring


Intermediate Result Indicator Three: Sharing international experience with SHMFF in accountability and transparency


Intermediate Result Indicator Four: SHMFF to adopt operation manual

Yes/No No Yes Yes Yes Yes Yes Annual SHMFF/WB WB

Intermediate Result Indicator Five: SHMFF to deliver a feasibility study on the effectiveness of the Housing Price Index

Yes/No No No No No No Yes Annual SHMFF/WB WB

Intermediate Result Indicator Six: Number of trainings

Number 0 2 0 2 2 2 Annual SHMFF WB

145

delivered to SHMFF staff

146