Disclosable Restructuring Paper - Export Competitiveness for Jobs - P156113

Garcia,Andres F.

The economy has started to bounce back with the lifting of the lockdown in May, but the spread of the coronavirus remains a serious threat to public health as well as the economy. [...] The Project Implementation Unit (PIU) under the Ministry of Commerce has just negotiated a contractual modification with the ERF consortium that would allow for a near doubling of the grant budget through an expansion of the ERF to include a fourth window of matching grants directly targeting the MPPE industry. [...] Therefore, the Ministry of Finance requested the World Bank to restructure the project to provide a rapid response to the Covid-19 pandemic. [...] The heterogeneity of quality requirements at home and abroad offer encouragement to some to enter the market despite a general sense that only the most productive companies will survive if the market stabilizes, and trade restrictions are dropped in the coming years. [...] DESCRIPTION OF PROPOSED CHANGES 6. The main updates in this restructuring are the inclusion of the MPPE sector as a fifth targeted sector and the reallocation of project funds from Component 3 to sub-component 1.2 to introduce a rapid response window to Covid- 19.

economic recovery public health private investment results framework supply chain personal protective equipment market access export diversification export policy project selection south asia trade restriction social analysis price fluctuation production capacity common market jobs international economics and trade labor markets export competitiveness financial sector development current expenditure budget allocation coronavirus (covid-19) bank lending public good market failure export ban product innovation business service domestic supply domestic company domestic production skill development technology center emergency response market segment common good information asymmetry global market financial sector policy health care services industry investment project financing quality requirement matching grant consulting services social protections and labor eligibility criterion financing instrument new job application process international demand economic and financial analysis small and medium size enterprise business opportunity management structure productive investment global demand affected population foreign supplier foreign company health outcome contract negotiation grievance redressal diversification of production and exports value addition financial remittance health clinic health clinics risk reducing sales growth feasibility assessment health crises certification criteria quality accreditation import good expenditure reporting grant program engineering company local production administration procedure investment risk risky investment competitive industry upgrading investment targeted grant utilization rate contract variation infrastructure constraints source country certification companies grant funding domestic supplier average wage growth