Mauritius - MU-Manufacturing and Servs Dev and Compet : P112943 - Implementation Status Results Report : Sequence 02

The World Bank Report No: ISR2445 Implementation Status & Results Mauritius Public Disclosure Copy MU-Manufacturing and Servs Dev and Compet (P112943) Operation Name: MU-Manufacturing and Servs Dev and Compet (P112943) Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Last Modified Date: 09-Mar-2011 Country: Mauritius Approval FY: 2010 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 21-Jan-2010 Original Closing Date 30-Nov-2015 Planned Mid Term Review Date Last Archived ISR Date 30-Jun-2010 Effectiveness Date 30-Mar-2010 Revised Closing Date 30-Nov-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Improving access to quality Business Development Services 12.00 Component 2: Strengthening Institutional and Policy Support for existing public-sector SME related 3.90 institutions Component 3: Increasing access to finance to credit constrained SMEs 1.50 Component 4: Project Coordination and Management 0.60 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Satisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview The project implementation has slowed down considerably since August 2010, posing substantial risks for meeting project outcomes. The loss of momentum is linked to a number of factors, notably: (i) lack of dedicated staff at the Project Coordinating Unit (PCU), including a full-time Program Manager; a Procurement specialist; and a Financial Management Page 1 of 3  The World Bank Report No: ISR2445 Specialist (on board now since Jan. 2011); (ii) while remaining committed to the SME growth and competitiveness agenda, the Government has announced - via the Budget - changes in institutional environment that has implications for component design and delivery support for one of the largest component on matching grants; (iii) lack of an effective Public Disclosure Copy counterpart to engage on two out of three components. The Bank team continues to constructively engage with the Government to be help resolve these recurring implementation challenges but progress to-date is limited. This is also reflected in low disbursement rate. Results Indicator Baseline Current End Target Indicator Baseline Current End Target Data on Financial Performance (as of 22-Nov-2010) Public Disclosure Copy Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P112943 IBRD-78220 Effective 21-Jan-2010 23-Feb-2010 30-Mar-2010 30-Nov-2015 Disbursements (in Millions) Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112943 IBRD-78220 0.00 0.00 0.00 0.00 0.00 Disbursement Graph Page 2 of 3  The World Bank Report No: ISR2445 Public Disclosure Copy Key Decisions Regarding Implementation Recognizing the recurring challenges and its changing needs, the Government has formally requested the Bank (via letter dated February 11, 2011) to redesign the delivery instrument from an investment project to sector-DPL. It may be noted that this request covers both investment lending projects in the FPD portfolio i.e. MSDCP and METAP. The main impetus for moving towards a sector-DPL emerges from: (i) Government's desire to broaden the development outcomes beyond the project-level FPD objectives; (ii) a strong preference for budget support operation - like most middle income countries