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

Sovereign (Public) Project | 43566-013 Status: Closed

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 Closed
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 Gender Equity and Mainstreaming
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

The proposed project intends to develop and expand the micro-, small-, and medium-sized enterprise (MSME) subsector leading to broad-based, private sector-led, and sustainable inclusive growth. MSME development was a part of the development strategy for Maldives under the 7th National Plan 2006-2010. MSMEDP will focus on enhancing the business environment and support infrastructure for doing business with better knowledge, greater access to financing, and expanded business opportunities for MSMEs.

The proposed Inclusive MSME Development Project will promote economic and financial inclusion in the Maldives by enhancing economic activities including those in the remote islands through more opportunities and access to finance for MSMEs which will thereby contribute to private sector development and overall growth.

Project Rationale and Linkage to Country/Regional Strategy The government's effort is now more concentrated on the pursuit of more inclusive growth that addresses some more pressing shortcomings. These include the lack of economic opportunities outside of Male and the skewed concentration of enclave economic activity centered in the tourism resorts industry. Political, administrative, and economic decentralization has been pursued by the government to address these shortcomings. Greater availability of credit is an important platform to promote financial inclusion and more inclusive growth for engendering economic and employment opportunities.
Impact More inclusive and broad- based MSME sector achieved
Project Outcome
Description of Outcome MSME sector further expanded and strengthened
Progress Toward Outcome

As of June 2018:

-Increase in number of MED registrations: 1565 MSMEs already registered in the MED system.

-Business Center capacity enhanced and strengthened: 37 business center staff development training programs completed, 3525 MSME consultations and visits completed, 495 MSME client training programs and awareness sessions completed for 13326 entrepreneurs, including 7246 females and 8542 youth.

Implementation Progress
Description of Project Outputs

Business support infrastructure built

Access to finance improved for private sector MSMEs

Technologies for MSME development established

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

As of June 2018:

1. 98 applications processed for Line of Credit Facility, 71 applications processed for Line of Credit for women entrepreneur loans (LCF-WEL).

2. Credit Information Bureau (CIB) implementation has been successful with the banks increasingly valuing CIB reports. Now, all 8 banks and 2 financial institutions (Maldives Financial License Company and Housing Development Finance Cooperation) are CIB members. 5 insurance companies will soon become members of the CIB.

3. Secured Transaction Registry (STR) software has been installed. Implementation can proceed upon passing of the STR legislation

4. Business Center Corporation (BCC) has now received funding from the government. The Small and Medium Sized Enterprise (SME) Industrial Park in Hullhumale Island where the BCC will be housed has started construction.

5. The BOLI team (MSMEDP's IT Team) created linkages/systems integration with other agencies, including web services to share registration and license/permit data to : Maldives Customs, Maldives Ports Limited, Maldives Airports Company Limited, Ministry of Fisheries and Agriculture, Ministry of Defence, Maldives Food and Drug Authority.

6. Project is now closed and accounts currently in winding-up period.

Geographical Location Nation-wide, Central Province, North Central Province, North Province, South Central Province, South Province, Upper North Province, Upper South Province
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI
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 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 (formerly Ministry of Finance and Treasury)
[email protected]
Ameenee Magu, Block 379, Male', Republic
of Maldives
Timetable
Concept Clearance 06 Dec 2010
Fact Finding 15 Oct 2011 to 25 Oct 2011
MRM 03 Feb 2012
Approval 25 May 2012
Last Review Mission -
Last PDS Update 24 Sep 2018

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 30 Jun 2018 08 Apr 2019
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 4.16 0.00 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 May 2012 4.16 0.00 97%

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 30 Jun 2018 11 Jan 2019
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 1.60 0.00 100%
Counterpart 0.70 Cumulative Disbursements
Cofinancing 0.00 25 May 2012 1.60 0.00 100%

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Inclusive Micro, Small, and Medium-Sized Enterprise Development Project: Project Completion Report Project/Program Completion Reports Jul 2019
Inclusive Micro, Small, and Medium-Sized Enterprise Development Project: Procurement Plan Procurement Plans May 2018
Amendment to the Financing Agreement for Loan 2867/Grant 0290-MLD: Inclusive Micro, Small, and Medium-Sized Enterprise Development Project Financing Agreement Apr 2018
Inclusive Micro, Small, and Medium-Sized Enterprise Development Project: Project Administration Manual Project/Program Administration Manual Oct 2016
Amendment to the Financing Agreement for Loan 2867/Grant 0290-MLD: Inclusive Micro, Small, and Medium-Sized Enterprise Development Project Financing Agreement Oct 2014
Amendment to the Financing Agreement for Loan 2867/ Grant 0290-MLD: Inclusive Micro, Small and Medium-Sized Enterprise Development Project Financing Agreement Apr 2014
Project Agreement for Inclusive Micro, Small and Medium-Sized Enterprise Development Project Project/Program Agreements Sep 2012
Financing Agreement (Special Operations) for Inclusive Micro, Small and Medium-Sized Enterprise Development Project Financing Agreement Sep 2012
Financing Agreement (Special Operations) for Inclusive Micro, Small and Medium-Sized Enterprise Development Project Financing Agreement Sep 2012
Project Agreement for Inclusive Micro, Small and Medium-Sized Enterprise Development Project Project/Program Agreements Sep 2012
Inclusive Micro, Small, and Medium-Sized Enterprise Development Project Reports and Recommendations of the President Apr 2012
Inclusive Micro, Small, and Medium-Sized Enterprise Development Project Gender Action Plans Apr 2012

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

Title Document Type Document Date
Maldives: Inclusive Micro, Small, and Medium-Sized Enterprise Development Project Validations of Project Completion Reports Aug 2020

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found