Public Disclosure Authorized AFRICA Africa Transport & ICT Global Practice IBRD/IDA Adaptable Program Loan FY 2009 Seq No: 12 ARCHIVED on 12-Apr-2016 ISR22896 Implementing Agencies: Ministry of Science and Technology, Malawi Privatization Commission, Ministry of Communications, Science and Technology Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:25-Jun-2009 Planned Mid Term Review Date:02-Apr-2012 Original Closing Date:28-Feb-2015 Project Development Objectives Effectiveness Date:14-Oct-2009 Actual Mid-Term Review Date:22-Jun-2012 Revised Closing Date:31-Dec-2016 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) Project development objectives for RCIP 3 include the following: Malawi: Support the Recipient#s efforts to improve the quality, availability and affordability of broadband within its territory for both public and private users Mozambique: Support the Recipient'sefforts to contribute to lower prices for international capacity and extend the geographic reach of broadband networks and to contribute to improved efficiency and transparency through egovernment applications. Tanzania: Support the Recipient's efforts to: (i) lower prices for international capacity and extend the geographic reach of broadband networks; and (ii) improve the Government's efficiency and transparency through egovernment applications. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Public Disclosure Authorized Name MALAWI - Enabling Environment Component 1: Enabling Environment (including M&E capacity Building):(Cost $2.00 M) MALAWI - Connectivity Component 2: Connectivity:(Cost $14.50 M) MALAWI - Project Management Component 3: Project Management:(Cost $2.00 M) MOZAMBIQUE - Technical assistance Component 1: Enabling Environment (Including M&E capacity Building):(Cost $5.44 M) MOZAMBIQUE - Connectivity Component 2: Connectivity:(Cost $16.01 M) 4/12/2016 Page 1 of 18
MOZAMBIQUE - egovernment Component 3: egovernment:(cost $6.23 M) MOZAMBIQUE - Project management Component 4: Project Management Support:(Cost $3.93 M) TANZANIA - Enabling Environment Component 1: Enabling Environment:(Cost $14.00 M) TANZANIA - Connectivity Component 2: Connectivity:(Cost $60.00 M) TANZANIA - egovernment Applications Component 3: egovernment Applications:(Cost $22.00 M) TANZANIA - Project Management Support Component 4: Project Management Support:(Cost $4.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Malawi Implementation Status: Implementation is on track for completion of all activities and achievement of the project development objective by project close in June 2016. The total disbursement rate stands at 76% of the total project budget ($14.3 million of $18.7 million at current exchange rates), with 100% of funds committed under signed contracts Key Achievements to Date: 1. Improving Connectivity: The main component of the RCIPMW project, which represents approximately 50% of the project funds, is the provision of a competitive international capacity link to Malawi under a Public-Private Partnership (PPP) arrangement. Construction of the network is now substantially complete - providing links from Zambia and Tanzania to the virtual landing point in Lilongwe. Under the PPP arrangement the winning bidder, SimbaNet was awarded a license to operate in the wholesale and retail markets which should help improve competitiveness in the sector and provision of telecommunications and media services to consumers. Ministries, Departments and Agencies (MDAs) connected to the network are reporting high quality service and significant savings through cancellation of their bi-later connection deals. 2. Improving the enabling environment: Some additional achievements include completion of both the Public Sector ICT Policy and National ICT Policy. The last mile connectivity initiative has provided internet connectivity and ICT equipment to 145 governmental and educational establishments under Phases I, II and III, exceeding the target of 100. The revised Communications Act and e-legislation bills have been drafted with technical assistance support from the project. 3. Building Capacity: The capacity building activities have provided support to five institutions, including the PPP Commission, Ministry of Finance, Planning and Economic Development (MoFPE), Ministry of Information, Tourism and Culture (MoITC), the e-government Department and the Malawi Communications Regulatory Authority (MACRA). Key Challenges: Two key challenges remain: These include consideration of the revised Communications Act and e-transactions bills by parliament which has been long delayed and addressing the financing shortfall due to strengthening of the US Dollar relative to the SDR. Mozambique Implementation Status: Implementation is on track for completion of remaining activities by the revised closing date of June 30, 2016. Total disbursements stand at SDR 18.5 million (US$25.7 million equivalent), representing 89% of the credit of 20.9 million SDR (US$29.0 million equivalent). 96% of project funds are currently committed under signed contracts. Key Achievements to Date: 4. Increased Sector Competitiveness and Access through award of the third mobile license and regulatory reform/strengthening: Movitel has 4/12/2016 Page 2 of 18
launched commercial service which has had a significant impact on availability of services, with a strong rural focus, extensive fiber rollout, and connection of thousands of schools to the Internet, free of charge. With the operation of Movitel, Mozambique has witnessed a significant impact on cost and quality of telecommunications services provided by mobile operators, including Internet. The project has supported the government in the development of regulatory tools for licensing and cost modeling of telecommunications services in Mozambique already in use, as well as with the development of a new telecommunications strategy and updated legislation (communications and e-transactions) for the telecommunications sector which was recently passed by Parliament. This has helped put in place modern rules and regulations to encourage competition and investment in the sector and to ensure high quality, secure services for consumers. 5. Increasing Broadband Capacity for Governments and Institutions: Through the purchase of three STM 1s (155 Mbps each), the project has doubled the Government Electronic Network (GovNet) capacity to 310 Mbps and provided 310 Mbps international capacity to the Mozambique Research and Education Network (MoRENet), that currently interconnects 77 research and education institutions across the country, including 16 with wireless campus networks. 25 Community Multimedia Centers (CMCs) in have been established in rural areas throughout the country with the support of the project. 54 CMCs are currently connected to high quality internet service through project support (some of the CMCs have been established through financing outside the project). 6. Improved Government Efficiency and Support for Services Applications: The project has purchased 6,000 licenses of Microsoft products for government desktops and servers, utilizing a new approach which achieved significant costs savings. The project has also purchased IT and telecommunication equipment which allowed the extension of GovNet to an additional 25 districts thus extending coverage to a total of 322 government institutions at central, provincial and district levels and has financed the increase of the storage capacity of the INTIC Data Center. The project has also purchased IT equipment for the Integrated Platform for the Provision of egovernment Services to the Citizen (ebau). The project is also supporting the deployment of the Land Information Management System in six provinces (Maputo, Gaza, Inhambane, Sofala, Manica and Tete) by purchasing IT equipment and providing technical assistance and capacity building. As a result of this support, significant improvement has been achieved in the digitization of the DUAT applications and the land information data base. Key Challenges: Key challenges continue to include ensuring institutional and financial sustainability of key project interventions after the project closes, particularly related to MoRENet (establishing the board of directors, general assembly, increasing membership and adopting sustainable fee structure) and CMCs (ensuring financial sustainability through revenue generation and/or private or government sponsorship). Given the very limited time remaining for project implementation, attention must also be paid to accelerating and finalizing procurement processes for outstanding activities. Given the Slow procurement processes are also affecting the pace of implementation and need to be accelerated to ensure that the remaining funds can be utilized and activities completed before project closure. Tanzania 7. Implementation Status: The project s closure date has been extended to December 2016. Project implementation progress has improved since the last ISR but still challenges for implementation of all signed contracts remain. The disbursement rate improved from 29% to 44% (US$ 41 million) but remains low after 5 years of implementation. The disbursement rate is expected to improve in the next 6 months due to the recent and past signing of several large contracts including the three set of contracts for the implementation of the Government Network, four phases of the universal access program and four e gov contracts. Key Achievements to Date: 8. Improving government efficiency: (i) Procured bulk international Internet bandwidth for 10 years which is being distributed to Government institutions. These institutions have now gained centrally procured and managed Internet access at low cost. (ii) Launched implementation of the Government Network. By mid-2015, over 70 Government MDAs are already connected using high-speed data connection. (iii) The results of capacity building activities started showing the results with more planned for the next year. (iv) Work on enabling environment, which includes consultancies on standards and guidelines, e-records and digitalization of government archives are about to start with contracts already in final stages. 9. Improving and lowering the cost of internet connectivity, including in rural areas: (i) Contributed to the successful implementation of the National ICT Broadband Backbone financed by the Government of China (about US$200 million) through financing part of the supervision cost on the Government's side. The backbone is successfully implemented, all telecommunications operators have open access to it, and internet connectivity prices have dropped by over 90% (both wholesale and retail). (ii) The implementation of the first phase of the universal access program financed by the project has resulted in over 50 unserved or under-served wards in rural Tanzania gaining access to mobile telephony services and the second phase for an additional 252 lots is under implementation 10. Improving service delivery: (i) Nine mobile based e-services identified through a government wide prioritization exercise are being launched. The services include mobile based access to school test results and university admission decisions, mobile and Internet based employment/ recruitment application for Government jobs, voting information application, and a service to deliver timely and accurate weather information via mobile; and Preparatory work is well advanced for all e-government applications. The contracts for all four e-gov applications- for e- procurement, birth registration and telemedicine are already awarded.the contract for business portal implementation is already under implementation and is likely to be completed by June 2016. The work of Tele-Medicine contract is likely to be completed by August, 2016. Both e-procurement and Birth Registration work is likely to be completed by October, 2016. 11. Capacity building: Organized Study Tours for beneficiary agencies to inform system design and implementation: Birth and Death Registration system in Bangladesh; Telemedicine in India; e-procurement in Korea; National Business Portal in Singapore; GovNet in Estonia; erecords management. Face-to- face training: Training of 210 Technical staff from MDAs and LGAs is scheduled to start in September 2015; Eight staff from MDAs have been trained to manage GOVNET; Three staff attended egovernment Policies and Guidelines Creation training in Korea. 12. Improved Regulatory environment for e-government: A number of consultancies have been set in motion including: (i) Development of egovernment standards and Guidelines (on-going, expected in October 2015); (ii) egovernment Policy (on-going); (iii) ICT Governance Framework (on-going); (iv) Development of ega Communication Strategy (on-going); (v) Digital records management and preservation 4/12/2016 Page 3 of 18
Key Challenges: Several important challenges remain to be addressed, primarily due to slow procurement and quickly approaching closing date of the project (December 2016). These include: 13. Full implementation of E-government applications may not be finished by the time the project closes in December 2016. This will result in a need to find a way to pay out last payments for four years of operating expenses of warranty and post warranty period. A variety of options are being considered to address this, including setting up escrow account/s for transferring the amounts equal to the last payments that can be released after the project closes. 14. Last payments for rural connectivity components will also become due after the project closes. To allow for the last payments to be transferred to escrow account for the rural connectivity component, the team has already initiated and completed an assessment of Universal Communications Service Access Fund (UCSAF). The funds transfer expected to be completed in the last quarter of 2016 when all contracts are signed and amounts of last payments are known. 15. The procurements under e-gov components has been slower than planned. Now with the contracts for main components already awarded, to ensure smooth implementation, the government has been advised to hire sector specific implementation support consultants to help the government supervise vendors at 4 implementing agencies. 4/12/2016 Page 4 of 18
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Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Substantial Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate 4/12/2016 Page 6 of 18
Stakeholders -- Moderate Moderate Other -- -- Moderate Overall -- Moderate Moderate Results Project Development Objective Indicators MALAWI: International Internet Bandwidth (Mbps) (Number, Custom) Value 180.00 5021.00 4210.00 400.00 Date 31-Dec-2008 01-Jul-2015 30-Jun-2015 28-Feb-2015 MALAWI: Internet user penetration (Percentage, Custom) Value 0.70 6.70 6.50 2.00 Date 31-Dec-2008 01-Jul-2015 30-Jun-2015 28-Feb-2015 MALAWI: Price of wholesale international E1 capacity link (Amount(USD), Custom) Value 21230.00 1750.00 1750.00 10000.00 Date 31-Dec-2008 01-Jul-2015 01-Jul-2015 28-Feb-2015 MOZAMBIQUE: Volume of International traffic: International Internet bandwidth (Mbps) (Number, Custom) Value 1687.40 5725.00 7755.00 6500.00 Date 31-Dec-2008 31-Aug-2014 31-Dec-2015 30-Jun-2016 4/12/2016 Page 7 of 18
MOZAMBIQUE: Internet user penetration (as percentage of total population) (Percentage, Custom) Value 1.00 7.40 7.47 8.00 Date 31-Dec-2008 31-Aug-2013 31-Dec-2015 30-Jun-2016 MOZAMBIQUE: Average monthly price of wholesale international E1 capacity link (Amount(USD), Custom) Value 9000.00 2040.00 782.00 500.00 Date 31-Dec-2008 31-Aug-2013 31-Dec-2015 30-Jun-2016 MOZAMBIQUE: Volume of yearly electronic records/events processed with the egovernment applications (using Lands and Civil Registration systems) (Number, Custom) Value 0.00 2498.00 230000.00 25000.00 Date 31-Dec-2008 31-Aug-2014 04-Mar-2016 30-Jun-2016 TANZANIA: Internatinal Internet bandwidth (Mbps) (Number, Custom) Value 302.00 5279.00 6000.00 3000.00 Date 31-Dec-2008 30-Jun-2014 29-Mar-2016 31-Dec-2016 4/12/2016 Page 8 of 18
TANZANIA: Internet user penetration (Percentage, Custom) Value 0.98 23.45 23.45 7.00 Date 31-Dec-2008 01-Jul-2015 01-Jul-2015 31-Dec-2016 TANZANIA: Price of wholesale international E1 capacity link (US$/month) (Amount(USD), Custom) Value 10000.00 2135.00 2135.00 1000.00 Date 31-Dec-2008 30-Jun-2014 30-Jun-2014 31-Dec-2016 TANZANIA: Volume of electronic records/events processed with egovernment applications (yearly) (Number, Custom) Value 0.00 -- -- 3000000.00 Date 31-Dec-2008 30-Jun-2014 30-Jun-2014 31-Dec-2016 Access to Telephone Services (fixed mainlines plus cellular phones per 100 people) (Number, Core) Value 29.48 56.00 69.70 60.00 Date 01-Jan-2009 31-Aug-2014 31-Dec-2015 30-Jun-2016 Access to Internet Services (number of subscribers per 100 people) (Number, Core) Value 0.05 5.40 5.90 6.00 4/12/2016 Page 9 of 18
Date 31-Dec-2008 31-Aug-2013 30-Dec-2015 30-Jun-2016 Comments Mozambique User Perception of Quality of Public Services (%) (Percentage, Core) Value 0.00 -- -- 50.00 Date 31-Dec-2008 30-Jun-2014 30-Jun-2014 31-Dec-2016 Direct project beneficiaries (Number, Core) Value 0.00 221666.00 1065957.00 1320000.00 Date 31-Dec-2008 31-Aug-2014 31-Dec-2015 30-Jun-2016 Comments Mozambique Female beneficiaries (Percentage, Core Supplement) Value 0.00 97533.04 46.70 50.00 Overall Comments Intermediate Results Indicators 4/12/2016 Page 10 of 18
MALAWI: Component 1 -Average price of mobile calls (US$ per minute) (Amount(USD), Custom) Value 0.20 0.18 0.07 0.15 Date 31-Dec-2008 01-Jul-2015 30-Jun-2015 30-Jun-2016 Comments $.03 on network, $.11 off network MALAWI: Component 2 - Number of market players accessing on submarine cables (Number, Custom) Value 0.00 4.00 4.00 6.00 Date 31-Dec-2008 01-Jul-2015 01-Jul-2015 30-Jun-2016 MALAWI: Component 2 - Retail price of Internet Access (US$ per month) (Amount(USD), Custom) Value 120.00 114.00 133.00 50.00 Date 31-Dec-2008 31-Aug-2014 30-Jun-2015 30-Jun-2016 Comments Price for unlimited data at 128kbps speed. This is a different metric than originally included in the results framework and will need to be adjusted accordingly during the next mission/measurement MALAWI: Component 2 - Number of operational ISPs (Number, Custom) Value 12.00 20.00 12.00 20.00 Date 31-Dec-2008 01-Jul-2015 30-Jun-2015 30-Jun-2016 4/12/2016 Page 11 of 18
MALAWI: Component 2 - Number of public Internet Access Points (e.g. internet cafes, PIAPs) (Number, Custom) Value 400.00 59.00 80.00 800.00 Date 31-Dec-2008 01-Jul-2015 30-Jun-2015 30-Jun-2016 MOZAMBIQUE: Component 1 - Number of operational telecommunications service providers (fixed, mobile + ISPs) (Text, Custom) Value 3+4 4 + 23 4 + 28 5+22 Date 31-Dec-2008 31-Aug-2014 31-Dec-2015 30-Jun-2016 MOZAMBIQUE: Component 1 - Monthly price of E1 dedicated line for 500km (Amount(USD), Custom) Value 12000.00 1080.00 1080.00 1000.00 Date 31-Dec-2008 31-Aug-2014 31-Aug-2014 30-Jun-2016 MOZAMBIQUE: Retail Price of Internet Services (per Mbit/per month, in US$) (Amount(USD), Custom) Value 140.00 90.00 90.00 30.00 Date 31-Dec-2008 31-Aug-2014 31-Aug-2014 30-Jun-2016 4/12/2016 Page 12 of 18
MOZAMBIQUE: Average Price for a monthly 3Mbit 3G mobile data subscription (Amount(USD), Custom) Value 33.00 17.00 17.00 15.00 Date 31-Dec-2010 31-Dec-2014 31-Dec-2014 30-Jun-2016 MOZAMBIQUE: Component 2 - Volume of traffic going through IXP: Maximum annual bandwidth (Mbps) (Number, Custom) Value 2.80 200.00 200.00 250.00 Date 31-Dec-2008 31-Aug-2014 31-Aug-2014 30-Jun-2016 MOZAMBIQUE: Component 2 - number of universities campuses and research institutions with access to broadband (Number, Custom) Value 0.00 13.00 13.00 50.00 Date 31-Dec-2008 31-Aug-2014 31-Aug-2014 30-Jun-2016 MOZAMBIQUE: Component 2 - Number of CMCs with Internet Access (Number, Custom) Value 3.00 50.00 50.00 50.00 Date 31-Dec-2008 31-Aug-2014 31-Aug-2014 30-Jun-2016 4/12/2016 Page 13 of 18
MOZAMBIQUE: Component 2 - Number of GovNet POPs (Number, Custom) Value 143.00 410.00 410.00 400.00 Date 31-Dec-2008 31-Aug-2014 31-Aug-2014 30-Jun-2016 MOZAMBIQUE: Component 3 - Number of sectoral egovernment applications using the Enterprise Service Bus (Number, Custom) Value 0.00 0.00 0.00 5.00 Date 31-Dec-2008 31-Aug-2014 31-Aug-2014 30-Jun-2016 Mozambique: Component 3 - Cost savings of introducing framework contract for software licenses across government (contract aggregation) (Percentage, Custom) Value 0.00 -- -- 30.00 Date 31-Dec-2008 -- -- 30-Jun-2016 TANZANIA: Component 1 - Average per minute cost of national mobile call (TSh) (Text, Custom) Value 276 251 251 180 Date 31-Dec-2008 01-Jul-2015 01-Jul-2015 31-Dec-2016 4/12/2016 Page 14 of 18
TANZANIA: Component 1 - Average monthly price of Internet access (Amount(USD), Custom) Value 100.00 13.00 13.00 50.00 Date 31-Dec-2008 01-Jul-2015 01-Jul-2015 31-Dec-2016 TANZANIA: Component 1 - Annual investments in the ICT sector (Amount(USD), Custom) Value 200000000.00 -- -- 400000000.00 Date 31-Dec-2008 30-Jun-2014 30-Jun-2014 31-Dec-2016 TANZANIA: Component 2 - Coverage of mobile networks (% of population) (Percentage, Custom) Value 65.00 89.00 89.00 90.00 Date 31-Dec-2007 30-Jun-2014 30-Jun-2014 31-Dec-2015 TANZANIA: Component 2 - Number of Government institutions connected to Government network (GovNet) (Number, Custom) Value 0.00 70.00 70.00 22.00 Date 31-Dec-2008 01-Jul-2015 01-Jul-2015 31-Dec-2015 4/12/2016 Page 15 of 18
TANZANIA: Component 3 - Number of Ministries with operational egovernment applications (Number, Custom) Value 0.00 0.00 0.00 4.00 Date 01-Dec-2008 01-Jul-2015 01-Jul-2015 31-Dec-2016 TANZANIA: Component 3 - Number of patients served by telemedecine system (including ediagnosis, eradiology, and econsultations) (Number, Custom) Value 0.00 0.00 0.00 1500.00 Date 31-Dec-2008 01-Jul-2015 01-Jul-2015 31-Dec-2015 TANZANIA: Component 3 - Number of sites connected to the Vital Registrations System (Number, Custom) Value 5.00 15.00 15.00 60.00 Date 31-Dec-2008 01-Jul-2015 01-Jul-2015 31-Dec-2016 TANZANIA: Component 3 - Number of hits on the Business Portal websites (Number, Custom) Value 0.00 0.00 0.00 2000.00 Date 31-Dec-2008 01-Jul-2015 01-Jul-2015 31-Dec-2016 Overall Comments Data on Financial Performance 4/12/2016 Page 16 of 18
Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P111432 IDA-46010 Effective XDR 20.90 20.90 0.00 18.52 2.38 89% P111432 IDA-46020 Effective XDR 13.50 13.50 0.00 10.31 3.19 76% P111432 IDA-46140 Effective XDR 67.00 67.00 0.00 30.27 36.73 45% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P111432 IDA-46010 Effective 25-Jun-2009 17-Jul-2009 29-Jan-2010 28-Feb-2015 30-Jun-2016 P111432 IDA-46020 Effective 25-Jun-2009 17-Jul-2009 14-Oct-2009 28-Feb-2015 30-Jun-2016 P111432 IDA-46140 Effective 25-Jun-2009 22-Jul-2009 19-Jan-2010 28-Feb-2015 31-Dec-2016 Cumulative Disbursements Restructuring History Level Approved on 19-Aug-2010,Level 2 Approved on 20-Nov-2013,Level 2 Approved on 05-Jan-2015,Level 2 Approved on 08-Feb-2015 4/12/2016 Page 17 of 18
Related Project(s) There are no related projects. 4/12/2016 Page 18 of 18