Maldives: Inclusive Micro, Small, and Medium-Sized Enterprise Development Project

Sovereign Project | 43566-013 Status: Active

ADB is supporting the development of micro, small, and medium-sized enterprises in the Maldives. The project will improve access to finance and fund a new line of credit, expand business development services, and strengthen the legal and institutional framework for enterprise development. It will also enhance the capacity of women micro- and small entrepreneurs.

Project Details

Project Officer
Hidalgo, Ma. Kristina South Asia Department Request for information
Country
  • Maldives
Modality
  • Grant
  • Loan
Sector
  • Industry and trade
 
Project Name Inclusive Micro, Small, and Medium-Sized Enterprise Development Project
Project Number 43566-013
Country Maldives
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0290-MLD: Inclusive Micro, Small, and Medium-Sized Enterprise Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 4.45 million
Loan 2867-MLD: Inclusive Micro, Small, and Medium-Sized Enterprise Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 2.91 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Industry and trade - Small and medium enterprise development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

-Increase in number of MED registrations: 1143 MSMEs already registered in the MED system as of January 2017

-Business Center capacity enhanced and strengthened: 22 Business Center staff development training programs completed, 731 MSME consultations and visits completed, 165 MSME client training programs completed for 3549 entrepreneurs (1652 women and 2462 youth)

-Increase in MSME access to credit to Line of Credit Facility (LCF): 94 MSMEs availed of LCF, evaluation of applicants for LCF balance ongoing

Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

As of January 2017

Business support infrastructure built:

-1652 females and 2462 youth provided business and business start-up training

- SME Act Amendment drafted, sent to AGO in April 2016, awaiting presentation to parliament by AGO

- 7 BDSCs established

- Credit Guarantee Unit was established in MMA in August 2016.

Access to finance:

LCF/ADB (BML) Phase I: 100 loans under LCF with 31 women lead SME's.

LCF/FM IDB (BML) Phase I: 119 applications received, representing 12 women (5 youth, 7 non-youth) and 74 youth; 116 applications processed; 42 loan applications approved as of 31st January 2017

GetSet loan scheme (BML): 34 loans approved but 1 loan disqualified after the approval stage. These loans represent 72 youth; 33 initial loan disbursements made.

SME Loan program (MVR 50 million) (MED): 400+ applications, 61 applications approved, including 9 women and 59 youth, including 12 female youth applicants.

CIB membership includes banks and financial institutions (MFLC and HDFC), expansion to include insurance companies, telecoms and STO expected by end of April 2017. Credit scoring service will not be introduced under the MSMEDP as recommended by operational consultant and system vendor as minimum 5 years of complete data is required to enable the said service.

CIB has generated 12,114 reports during the period February 2011 to January 2017.

Technologies for MSME development:

- MED website platform designed and developed. BC website domain name and registration secured, populated and operational (http://www.bcn.mv).

- The Enterprise Development Facebook page provides regular updates on ED programs and business center network. (https://www.facebook.com/ed/Maldives)

- Enhancement of Boli system: Completed the developments of online logo, online trademark registration and business name registration module. Sole Proprietor module has been deployed to the live system

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects FI treated as C.
Involuntary Resettlement FI treated as C.
Indigenous Peoples FI treated as C.
Stakeholder Communication, Participation, and Consultation
During Project Design The project will help develop an enabling environment for MSMEs and thus create more business opportunities for MSME in the provinces which leads to employment creation and poverty reduction.
During Project Implementation Related stakeholders' participation and consultation will be ensured during project implementation..

Business Opportunities

Consulting Services All consultants will be recruited according to ADB s Guidelines on the Use of Consultants. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method. Individual consultants shall be recruited using ADB s Guidelines on the Use of Consulting. The consultancy packages will be used for MSME portal, Judgment Debt Database, and CSC operators under component 3.
Procurement All procurement of goods and works will be undertaken in accordance with ADB s Procurement Guidelines. International competitive bidding (ICB) procedures are to be used for procurement of goods costing $0.5 million or more, and procurement of works, supply, and install contracts costing $1 million or more. National competitive bidding (NCB) procedures shall be used for the procurement of goods below $0.5 million, and procurement of works, supply, and install contracts below $1 million. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000.

Responsible Staff

Responsible ADB Officer Hidalgo, Ma. Kristina
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Maldives Monetary Authority
Male'
Republic of Maldives
Ministry of Economic Development (MED)
[email protected]
Boduthakurufaanu Magu, Male 20125, Republic of Maldives
Ministry of Finance and Treasury
66032EXTRES [email protected]
Ameenee Magu
Republic of the Maldives

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
Last PDS Update 07 Mar 2017

Grant 0290-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 May 2012 20 Sep 2012 21 Dec 2012 31 Dec 2016 31 Dec 2017 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.45 Cumulative Contract Awards
ADB 4.45 25 May 2012 3.53 0.00 79%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 May 2012 4.26 0.00 96%

Loan 2867-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 May 2012 20 Sep 2012 21 Dec 2012 31 Dec 2016 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.61 Cumulative Contract Awards
ADB 2.91 25 May 2012 1.00 0.00 37%
Counterpart 0.70 Cumulative Disbursements
Cofinancing 0.00 25 May 2012 1.42 0.00 52%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found