Yemen Private Sector Growth and Social Protection DPG

Abstract*

The objective of the Yemen Private Sector Growth and Social Protection Development Policy Grant is to foster private sector growth in the non-hydrocarbon part of the economy, to improve key aspects of the public financial management system, and to mitigate the impact of the ongoing fuel subsidy reduction on the poor by creating a more inclusive and more equitable cash transfer system. The Project has four components. Component one comprises of private... Show More

Development Objective

The main objective of the proposed DPG is to mitigate the impact of the current fiscal crisis in Yemen, assist the Government in implementing its economic reform program, set the conditions for enhancing growth in the non-hydrocarbon part of the economy, and to mitigate the immediate poverty impact of the current reform program on the poor by creating a more inclusive and more equitable cash transfer.

Key Details

Project Details

Project ID
P122414
Status
Closed
Team Leader
Wilfried Engelke
Borrower 2
N/A

Country
Yemen, Republic of
Disclosure Date
August 4, 2010
Approval Date
(as of board presentation)
December 14, 2010
Effective Date
December 21, 2010

Total Project Cost 1
US$ 70.00 million
Implementing Agency
N/A
Region
Middle East, North Africa, Afghanistan, and Pakistan
Fiscal Year 3
2011

Commitment Amount
US$ 70.00 million
Environmental Category
N/A
Environmental and Social Risk
Not Applicable
Closing Date
December 30, 2011

Last Stage Reached
BANK APPROVED
Last Update Date
May 1, 2024

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Finance

FY17 - Financial Infrastructure and Access6%
- FY17 - MSME Finance6%
FY17 - Financial Stability12%
- FY17 - Financial Sector Integrity6%
- FY17 - Financial Sector oversight and policy/banking regulation & restructuring6%

FY17 - Private Sector Development

FY17 - Business Enabling Environment22%
- FY17 - Regulation and Competition Policy22%
FY17 - Enterprise Development6%
- FY17 - MSME Development6%
FY17 - Jobs100%

FY17 - Public Sector Management

FY17 - Public Administration17%
- FY17 - Transparency, Accountability and Good Governance17%
FY17 - Public Finance Management17%
- FY17 - Public Expenditure Management17%

FY17 - Social Development and Protection

FY17 - Social Protection22%
- FY17 - Social Safety Nets22%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
IDA Credit	70.00

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	70.00
IBRD + IDA Commitment	70.00

Lending Instrument
Grant Amount	N/A
Total Project Cost**	70.00

Summary Status of World Bank Financing (US$ Millions) as of July 31, 2025

No data available.

Detailed Financial Activity as of July 31, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Dec 14, 2010	IDA-H6310	Loan Commitment	70,000,000.00

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Progress towards achievement of PDO	Unsatisfactory	2012-06-11
Program Management	Moderately Unsatisfactory	2012-06-11
Monitoring and Evaluation	Moderately Satisfactory	2012-06-11
Overall Implementation Progress (IP)	Unsatisfactory	2012-06-11

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 06-18-2012
Outcomes	Unsatisfactory
Risk to Development Outcome	High
Bank Performance	Moderately Satisfactory
Borrower Performance	Moderately Unsatisfactory
Government Performance	Unsatisfactory
Implementing Agency	Moderately Satisfactory

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 06-21-2013	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Unsatisfactory	N/a
Risk To Development Outcome	High	N/a
Bank Performance	Moderately Unsatisfactory	N/a
Borrower Performance	Moderately Unsatisfactory	N/a
Government Performance	Moderately Unsatisfactory	N/a
Implementing Agency	Moderately Unsatisfactory	N/a
Icr Quality	Satisfactory	N/a
M&e Quality	Substantial	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

COMPONENT 2 - Credit Registry fully operational - at least 85,000 credit contracts registered	Value	0.00	136832.00	0.00
	Date		March 30, 2012
	Comment	No credit registry existed. 79,000 credit contracts of a current total of 85,000 have been already included in the credit registry.

COMPONENT 2 - Increase in volume of micro-finance lending and introduction of deposit taking/offering of savings accounts	Value	0.00	-4.60	0.00
	Date		May 1, 2012
	Comment	No by-law regulating microfinance institutions existed prior to the approval. The total client base of the microcredit segmentamounts to 51,000 as of end August 2010. Deposit accounts of microfinance institutions do presently not exist	Not achieved although the total number of loans of the two institutions increased by over 50 percent between these two years.Thevalue of the loan portfolio of the two microfinance banks declined by 4.6 percent between 2010 and 2011. More generally, the IMFhas indicated that overall credit of the banking system to the private sector fell 17 percent in 2011.

COMPONENT 4 - SWF Program	Value	0.00	15000.00	0.00
	Date		May 1, 2012
	Comment	Currently the SWF supports 1,238,448 households of which 272,811 are not eligible (household category E-F) to benefit from the SWFstipend	Not fully achieved - The government did add about 500,000 new beneficiaries to the SWF rolls from the wait-list. However, itonlyeliminated [15,000] better off beneficiaries did not eliminate from the rolls, vitiating the fiscal impact of the action taken

COMPONENT 3 - Payment Arrears improvement	Value		Not clear
	Date		May 1, 2012
	Comment	The Ministry of Finance has prepared the Commitment Control System manual under the PFM project, but the system still remains tobeintroduced in the Ministries	Implementation of the CCS system was negatively affected by the events of 2011. In any case, with the breakdown in fiscaldiscipline in 2011, arrears are not likely to have been stabilized

COMPONENT 3 - MTEF Updated and Expanded	Value	Yes	Yes
	Date		May 1, 2012
	Comment	A first MTEF has been produced at end-2009 for the period 2010-2012	Completed. The MTEF for the period 2011-13 was completed as part of the 2011 budget preparations

COMPONENT 4 - Recertification	Value		Not clear
	Date		May 1, 2012
	Comment	The Law of the SWF has been approved in Parliament in 2008, but approval of the by-laws are pending, hampering the application ofthe law and the effectiveness of the SWF	The recertification process was to be financed partly by the SWF budget and partly by effort under a World Bank project, which wasnot possible to provide given the situation on the ground. However, 20% of the programmed recertification was achieved

COMPONENT 1 - Improved efficiency in registration times for limited liability companies and sole ownership companies	Value		Not clear	By December 2011, registration of a limited liabil
	Date		May 1, 2012	December 31, 2011
	Comment	Currently, registration of a limited liability company in the governorates outside of the Sana’a governorate (Aden, Taiz,Hadhramout, Al-Hodeida and Ibb) takes between 14 and 18 steps and between 53 and 85 days. In these governorates registering a soleproprietorship takes between 23 and 49 steps and between 41 and 96 days. Obtaining a construction permit involves 15 proceduresand takes between 107 and 158 days	This was to be monitored through the on-going business climate support provided by the IFC. However, the events of 2011 preventedmonitoring of the actual implementation. In any case, these events also made it unlikely that implementation took place. [N.B.TheMinistry responsible for oversight was sacked and burnt during the events.]