Middle East & North Africa development of smes exports through virtual market places



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Project Financing


  1. The proposed Project is a grant financed by the MENA Transition Fund established by the Deauville partnership for transition countries of the MENA region in the amount of US$ 3 million. The partner agencies (TSIs) will provide in kind support, mainly the provision of office space and logistics.




  1. The Grant will be entirely managed by ITC without prior allocation to TSIs. The RIA will be responsible for managing the Project funds and all related financial transactions. Payments will be processed by ITC.



Cost by Component / over 3 years



Transition Fund

(USD) –Initial Proposal

Transition Fund (USD) Revised Proposal

Country Co-Financing (USD)

Component 1. Institutional reform

  1. Morocco

  2. Tunisia

  3. Jordan

300,000

100,000


100,000

100,000


300,000

100,000


100,000

100,000





Component 2: Export markets accessed through VMPs by SMEs

Sub-component 2.1- Capacity building and outreach

Sub-component 2.2 Registration and coaching of SMEs



3,100,000
200,000
2,500,000


1,335,000
100,000
1,235,000


In kind- to be estimated

Component 3:

  1. Sub-component 3.1: VMP Partnerships

  2. Sub-component 3.2. Business Intelligence Development

  3. Sub-component 3.3. Certification




1,820,000

1,500,000


200,000
120,000

1,020,000

700,000
200,000


120,000

In-kind support from VMP providers

Component 4. Project Management and Evaluation

Sub-Component 4.1. Project Management

Sub-Component 4.2. Impact and evaluation assessment


540,000
510,000

30,000


270,000
240,000

30,000


In-kind TBD

Bank supervision costs

200,000

42,000

n.a.

Miscellaneous Expenses

100,000

n.a.




Total Project Cost

5,760,000

2,989,000













F.KEY RISKS AND MITIGATION MEASURES


Risk Ratings Summary Table

Stakeholder Risk

Moderate

Regional Implementing Agency Risk




  • Capacity

Low

  • Governance

Low

Project Risk




  • Design

Moderate

  • Social and Environmental

Low

  • Program and Donor

Low

Moderate

  • Other (Optional)




Overall Implementation Risk

Substantial

Overall Risk Rating Explanation

  1. The overall risk for this operation is substantial due mostly to transition countries context and the volatility of the political, security, and governance environment. However, unless major turmoil occurs, it is not expected that changes in institutions/government reshuffling will affect the project once launched.


Risk Mitigation

  1. The project’s approach, mainly working through networks at country level, facilitates its implementation even in the event of changes at government level. The moderate risk at project design level will be mitigated by the partnerships with ITC and its presence and knowledge in the three countries of both, trade institutions, and private sector associations.




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