Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD3532 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON PROPOSED ADDITIONAL CREDITS IN THE AMOUNT OF US$3 MILLION TO GRENADA IN THE AMOUNT OF US$4.1 MILLION TO SAINT LUCIA IN THE AMOUNT OF US$4.8 MILLION TO SAINT VINCENT AND THE GRENADINES FOR THE CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM March 5, 2020 Digital Development Global Practice Latin America and Caribbean Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2020) Currency Unit = Eastern Caribbean Dollar (EC$) EC$2.70 = US$1.00 FISCAL YEAR January 1 - December 31 Grenada April 1 – March 31 Saint Lucia January 1 - December 31 Saint Vincent and the Grenadines Acting Regional Vice President: J. Humberto Lopez Country Director: Tahseen Syed Khan Global Practice Director: Boutheina Guermazi Practice Manager: Nicole Klingen Task Team Leader(s): Doyle Gallegos, Rocio Sanchez Vigueras ABBREVIATIONS AND ACRONYMS AF Additional Financing ACP African, Caribbean, and Pacific Group States CARCIP Caribbean Regional Communications Program CARICOM Caribbean Community CARIFORUM The Caribbean Forum CKLN Caribbean Knowledge and Learning Network CTU Caribbean Telecommunications Union ESIA Environmental and Social Impact Assessment GDP Gross Domestic Product GoGD Government of Grenada GoSLU Government of Saint Lucia GoSVG Government of Saint Vincent and the Grenadines GRE Grenada GRS Grievance Redress Service GWAN Government Wide Area Network IBRD International Bank for Reconstruction and Development ICT Information and Communication Technologies IFR Interim Financial Report ISO-14001 International Organization for Standardization – Environmental Systems IT/ITES Information Technology and Information Technology Enabled Services PAU Project Accounts Unit PCU Project Coordination Unit PDO Project Development Objective PPP Public Private Partnership RF Results Framework RPF Resettlement Policy Framework SDR Special Drawing Rights SVG Saint Vincent and the Grenadines WB World Bank Caribbean CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ................................................ 7 II. DESCRIPTION OF ADDITIONAL FINANCING ......................................................................... 12 III. KEY RISKS....................................................................................................................... 17 IV. APPRAISAL SUMMARY..................................................................................................... 18 V. WORLD BANK GRIEVANCE REDRESS .................................................................................. 23 VI SUMMARY TABLE OF CHANGES ......................................................................................... 24 VII DETAILED CHANGE(S) ....................................................................................................... 24 VIII. RESULTS FRAMEWORK AND MONITORING ......................................................................... 26 ANNEX 1. DETAILED ACTIVITIES BY COMPONENT AND COUNTRY ................................................. 35 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) BASIC INFORMATION – PARENT (Caribbean Regional Communications Infrastructure Program - P114963) Country Product Line Team Leader(s) Caribbean IBRD/IDA Doyle Gallegos Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P114963 Investment Project IDD01 (9387) LCC3C (451) Digital Development Financing Implementing Agency: Ministry of Finance, Econ. Planning, Sustainable Development and Information Technology (SVG), Ministry of Infrastructure Development, Public Utilities, Energy, Transport and Implementation (GRE), Ministry of Finance, Econ. Growth, Job Creation, Ext. Affairs & Public Service (St. Lucia) ADD_FIN_TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Expected Original Environmental Approval Date Closing Date Guarantee Current EA Category Assessment Category Expiration Date 22-May-2012 31-Dec-2020 Partial Assessment (B) Partial Assessment (B) Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster Jan 19, 2020 Page 1 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) [ ] Alternate Procurement Arrangements (APA) Development Objective(s) The development objective of CARCIP is to increase access to regional broadband networks and advance the development of an ICT-enabled services industry in the Caribbean Region. Ratings (from Parent ISR) RATING_DRAFT_ NO Implementation Latest ISR 25-Jan-2017 18-Oct-2017 01-Mar-2018 16-Sep-2018 25-Apr-2019 16-Dec-2019 Progress towards achievement of MS MS MU MS MS MS PDO Overall Implementation MS MS MS MS MS MS Progress (IP) Overall Safeguards S S S S S S Rating Overall Risk M M M M M M BASIC INFORMATION – ADDITIONAL FINANCING (CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING - P171791) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P171791 CARIBBEAN REGIONAL Cost Overrun, Restructuring No COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING Financing instrument Product line Approval Date Investment Project IBRD/IDA 26-Mar-2020 Jan 19, 2020 Page 2 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Financing Projected Date of Full Bank/IFC Collaboration Disbursement 31-Dec-2020 No Is this a regionally tagged project? Country (ies) Yes Grenada, St. Lucia, St. Vincent and the Grenadines Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [✓] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 24.97 21.10 1.86 92 % Grants % PROJECT FINANCING DATA – ADDITIONAL FINANCING (CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING - P171791) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 SUMMARY (Total Financing) Jan 19, 2020 Page 3 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 25.00 11.90 36.90 Total Financing 25.00 11.90 36.90 of which IBRD/IDA 25.00 11.90 36.90 Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 World Bank Group Financing International Development Association (IDA) 11.90 IDA Credit 11.90 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount Grenada 3.00 0.00 0.00 3.00 National PBA 1.00 0.00 0.00 1.00 Regional 2.00 0.00 0.00 2.00 St. Lucia 4.10 0.00 0.00 4.10 National PBA 1.30 0.00 0.00 1.30 Regional 2.80 0.00 0.00 2.80 St. Vincent and the 4.80 0.00 0.00 4.80 Grenadines National PBA 2.40 0.00 0.00 2.40 Regional 2.40 0.00 0.00 2.40 Total 11.90 0.00 0.00 11.90 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? Jan 19, 2020 Page 4 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No INSTITUTIONAL DATA Practice Area (Lead) Digital Development Contributing Practice Areas Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Doyle Gallegos IDD01 Responsible) Rocio Sanchez Vigueras Team Leader IDD01 Procurement Specialist (ADM John Oliver Moss Procurement ELCRU Responsible) Manjola Malo Procurement Specialist ELCRU Financial Management Moad M. Alrubaidi ELCG1 Specialist (ADM Responsible) Social Specialist (ADM Gibwa A. Kajubi Social Safeguards SLCSO Responsible) Environmental Specialist (ADM Shakil Ahmed Ferdausi SLCEN Responsible) Ane Morales Elorriaga Team Member IDD01 Jose C. Janeiro Team Member WFACS Maria Pia Cravero Team Member LEGLE Marisol Ruelas Team Member Team Assistant IDD01 Jan 19, 2020 Page 5 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Michael J. Darr Environmental Specialist Safeguards SLCEN Shonell Jodian Robinson Team Member Financial Management ELCG1 Extended Team Name Title Organization Location Jan 19, 2020 Page 6 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING A. Introduction 1. This Project Paper seeks the approval of the Executive Directors for a proposed Additional Financing (AF) in the amount of US$11.9 million to the Caribbean Regional Communications Infrastructure Program parent project (CARCIP, P114963)–implemented in phases in the following three countries: Grenada, St. Lucia, and St. Vincent and the Grenadines - henceforth, “the Program”). The proposed AF will cover a financing gap of the main activity under Component 1 (deployment of a Regional Broadband Network) as well as cost overrun for activities under Component 1 and Component 2 (ICT training and business incubation grants) and provide additional funding for Component 3 (Implementation Support). The proposed AF would finance the completion of the ongoing and planned activities underway under the parent program, which currently have a financing gap as a result of: (a) 10 percent exchange rate loss between Special Drawing Rights (SDR) and the United States Dollar since approval; (b) budget constraints of the three countries for the provision of counterpart funding for the Regional Broadband Network contract under Component 1: (c) cost increase due to the final number of buildings that need to be connected under the Regional Broadband Network; and (d) cost increase of the training and incubator program in Grenada and Saint Vincent and the Grenadines. The project is scheduled to close on December 31, 2020 which will allow for adequate supervision of the activities being implemented under Component 1 for the three countries, as well as completion of activities under Component 2 for Grenada and Saint Vincent and the Grenadines. 2. The Project’s Development Objective (PDO) implementation arrangements, environmental assessment category, and safeguard policies remain unchanged. The Results Framework (RF) is updated to address omissions related to the project restructuring approved in June 2018 and to increase the target for select intermediate indicators to reflect the additional financing. B. Country and Sector Context 3. The Caribbean region’s diversity, strategic location, small size, and natural environment present opportunities and challenges in almost equal measure. The combined impact of small size1 (total GDP and population of the CARIFORUM2 countries of US$179.59 billion and 32 million respectively in 2018) and inadequate economies of scale, high reliance on the service sector (particularly tourism and related construction), increased competition from other tourist destinations, and in a number of cases, single-source income (e.g., oil in Trinidad and Tobago, and apparel in Haiti) present challenges. The target markets are further 1 Total GDP and population of the CARIFORUM countries of US$179.59 billion and 32 million respectively in 2018 compares for example, to Peru, with a GDP of US$222.23 billion and population of 32 million in 2018 2 CARIFORUM refers to the Body comprising Caribbean ACP States which are signatories of the Georgetown Agreement. This Agreement was signed in 1975, and it created the African, Caribbean and Pacific Group of States (ACP). The grouping is composed of 79 African, Caribbean and Pacific states. The Caribbean Forum of the African, Caribbean and Pacific Group of States (CARIFORUM) or Forum of Caribbean States are: Antigua and Barbuda, The Bahamas, Barbados, Belize, Cuba, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. https://caricom.org/cariforum-the-context. Jan 19, 2020 Page 7 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) challenged when responding to external shocks, such as natural disasters or financial/economic crisis. Most of the Caribbean countries exhibit lower economic performance compared to other small-size economies that have based their economic growth on gaining international competitiveness, such as Singapore, Cyprus, or Ireland. 4. On a related aspect, all three countries (Grenada, St. Lucia, and St. Vincent and the Grenadines) supported by the CARCIP are highly vulnerable to climate change, which can negatively impact digital infrastructure. Grenada is already experiencing changes in its climate system, as evidenced by increased incidence of drought, longer dry seasons, shorter rainy seasons, increased average temperature, coastal degradation, and intrusion of saline water into aquifers, among others. Saint Lucia faces threats from sea level rise; more intense and possibly more frequent extreme weather events; changes in rainfall distribution and intensity, resulting in both floods and droughts; degradation of coastal resources; and saline intrusion into aquifers. Similarly, SVG is at risk to several natural hazards, including floods, hurricanes, cyclones, droughts, landslides, as well as volcanic eruptions.3 The Government of Grenada (GoGD), the Government of Saint Lucia (GoSLU) and the Government of Saint Vincent and the Grenadines (GoSVG) consider adaptation to climate change as a priority to reduce their vulnerability, as evidenced by the commitments under their respective Nationally Determined Contributions (NDCs). 5. The transformational potential of digital technologies or Information and Communication Technologies (ICT) makes the latter a critical sector for stimulating growth, competitiveness, and diversification in the region. The region’s prosperity depends on how well it is integrated into the global economy. ICT, particularly affordable and good quality high-speed Internet, is playing an increasingly central role in this by enhancing trade, facilitating cross-border payments, and increasing investment, all key components of economic growth/diversification and poverty reduction. Safeguarding digital infrastructure from extreme climatic events4 can contribute to the overall resilience by ensuring that the systems on which the Caribbean region relies still function adequately. 6. The challenging economic geography of the Caribbean region makes it particularly important to pursue a regional approach to infrastructure development and harmonized implementation of programs. An integrated approach at various levels (economic and social strategy, communications, infrastructure) not only helps increase competitiveness within the international market but also allows the small-scale economies to leverage regional economies of scale and share the fixed costs of regional infrastructure. Furthermore, the establishment of regional networks, supported by the regional infrastructures and harmonized policies, is essential to share best practices and knowledge, and enables countries to benefit from possible synergies. 7. The ICT sector faces similar geographic challenges - highly fragmented market and uneven distribution of resources. To mitigate these challenges, the region developed a Regional ICT Strategy, aimed at harmonizing efforts towards fast-tracking the formation of the Single CARICOM-ICT Space and CARICOM Digital Agenda 2025.5 The CARCIP program is designed to support this regional approach through a holistic “umbrella” ICT- 3 World Bank, Climate Change Knowledge Portal. 4 Physical impacts to climate change threats to ICT can include flooding of buildings and ducts, silt and salt damage, scour of cabling and foundations, problems of access for staff, disruption to logistics, cable heave from uprooted trees, lightning damage, wind damage, higher costs of cooling, and stress on components. 5 https://caricom.org/work-areas/overview/information-and-communication-technologies Jan 19, 2020 Page 8 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) enabled development framework, strongly anchored in CARICOM’s regional ICT agenda. 8. Given the potential of digital transformation to promote economic growth, the GoGD, GoSLU, and GoSVG requested the World Bank’s support for the implementation of the CARICOM ICT Strategy. The World Bank is well placed to support CARCIP and has extensive experience in similar regional programs globally. C. Project Background 9. The CARCIP program (the Program), financed in the amount of SDR 17.3 million (US$25 million equivalent), provides IDA financing to three countries of the Organization of the Eastern Caribbean States : Grenada (US$10 million); Saint Lucia (US$6 million); and Saint Vincent and the Grenadines (US$6 million). The Program also provided a US$3 million IDA grant (henceforth, “Grant”) to the Caribbean Telecommunications Union (CTU), which closed in February 2019. The Program was approved on May 22, 2012 and declared effective on December 11, 2012 for GoSLU and GoSVG; April 15, 2013 for the Grant to the CTU; and September 18, 2013, for GoGD. 10. The Project Development Objective (PDO) is to “increase access to regional broadband networks and to advance the development of an ICT-enabled services industry in the Caribbean Region”.6 The three components under the Program are: (i) Regional Connectivity Infrastructure; (ii) ICT-led innovation; and (iii) Implementation Support. 11. Component 1: Regional Connectivity Infrastructure (US$12.57 million). This component addresses: (i) physical connectivity infrastructure through supporting the development of missing regional and national broadband infrastructure; and (ii) the enabling environment that would ensure Public-Private Partnership in the ownership, management and competitive access to the infrastructure. 12. Component 2: ICT-led innovation (US$7.51 million). This component supports activities that leverage the regional and national broadband infrastructure to foster the growth of the regional IT and IT-enabled Services (ITES) industry. 13. Component 3: Implementation Support (US$1.92 million). This component supports implementation, institutional and capacity building as well as monitoring and evaluation. Additional resources from a regional grant complemented national implementation efforts through knowledge-sharing activities and regional coordination to ensure that the program delivers results both at the national and regional level. D. Project Progress 14. The Program has been extended three times: first, to August 1, 2018; second, to February 1, 2020, and then more recently to December 31, 2020. The first extension was processed under a Level 2 restructuring 6 The Financing Agreements for the additional financing credit for each country reflects the PDO as follows: “increase access to regional broadband networks and advance the development of an ICT-enabled services industry in the territory of the Recipient and in the Caribbean Region, to be fully in line with the original PAD’s technical annexes and Financing Agreements’ PDO wording. Jan 19, 2020 Page 9 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) completed in May 24, 2016, which encompassed: (i) a 19-month extension of the closing date; (ii) a revision of the targets associated to the indicator related to the ICT innovation component; (iii) a replacement of the indicator “Length of Fiber Optic Network Built (km)”; (iv) a reallocation of funds under the CTU grant to new activities; and (v) a reallocation of the Project Preparation Facility (PPF) unutilized funds among other disbursement categories. Following that first restructuring, implementation progress improved, and several key activities were completed. The second extension was part of a restructuring requested because the Regional Broadband Network (financed under Component 1) could not be completed by the revised closing date. Said restructuring, completed on June 21, 2018, extended the closing to February 1, 2020. Finally, the closing date of the CARCIP Program was recently extended to allow proper supervision in the three countries of the networks, which is expected to be completed by June 2020, and completion of the incubation program in Grenada and SVG. With this last extension, the total life of the Program since approval will be of 8 years and 7 months 15. As of December 18, 2019, the Program has disbursed 92 percent of the credit proceeds, or a total of US$21.10 million, including the exchange rate loss. E. Value Added of the Bank 16. CARCIP is benefitting from the World Bank’s experience in preparing regional and national ICT projects. The Program takes into account the lessons from implementing telecommunications sector reform/development projects, other regional connectivity projects, in particular in Africa, South Asia, East Asia and Pacific, and in the Caribbean region. In this regard, the World Bank has demonstrated its value additions on the following fronts: (i) A trusted and long-term partner. The World Bank has supported and continues to support the CARCIP program overcome seemingly endless technical, institutional, financial, legal and other implementation challenges; (ii) Experience in PPPs: The World Bank has extensive experience in supporting governments to structure PPPs for international, regional and national connectivity. In general, it has been observed that submarine cable international connectivity projects, often led by private consortia, have attracted significant private capital and experienced relatively fast completion of the network construction. The consortia approach has tended to be more successful in structuring partnerships between the public and private sectors when involving equity ownership of both parties, through Special Purpose Vehicles (SPVs), while leaving operation to the private sector. In this CARCIP PPP, 80 percent of the digital infrastructure investment was private. (iii) Global technical expertise. The World Bank has mobilized a wide range of technical expertise to support this Program and find practical solutions to complex technical challenges. F. Status of Project Implementation and Performance to Date 17. After initial delays, the Program’s implementation experienced an acceleration over the past 18 months following the award and signature of the Regional Broadband Network contract in July 2018. As of December 2019, the Program has made substantial progress under all components, including many activities being completed. Progress toward achieving the PDO and implementation performance have been both rated Moderately Satisfactory since September 2018. Jan 19, 2020 Page 10 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Component 1: Regional Connectivity Infrastructure 18. This component is nearing completion. Progress includes: (i) laying of the Undersea Cable between Grenada (Grenada and Carriacou) and Saint Vincent and the Grenadines (Bequia, Mustique, Canouan, Union Island, Arnos Vale, Owia, and Chateaubelair); (ii) the construction of Beach Manholes in the landing points for the submarine cable in each of the islands to be connected; (iii) the roll out of all the fiber optic network planned, 330 km of terrestrial fiber cable in Grenada, 450 km in St. Lucia, and 290 km in Saint Vincent and the Grenadines; and (iv) the connection of 154 (47 percent completed to date) official buildings (schools and Government offices) in Grenada, 192 buildings (54 percent completed to date) in St. Lucia, and 174 (99 percent completed to date) in Saint Vincent and the Grenadines. The target number of public buildings/facilities connected to networks under the project, an intermediate results indicator, will be significantly surpassed when final works are completed and delivered in the next six months. Therefore, the Results Framework (RF) is revised to reflect the additional financing of connecting more buildings. 19. The contract with the awarded network provider was signed in July 2018 and the deployment of the network started in September 2018. The entire Regional Broadband Network is expected to be fully functioning by June 2020. Operation of the network has been delayed because of the significant complexity of the Regional Broadband Network’s design (e.g. three-country-pooled procurement, public-private partnership (PPP) arrangement). 20. Significant cost savings have been experienced to-date. To promote better access at affordable prices, under Component 1, the Program has financed the installation of a Unified Communications System in St. Lucia, leading to 80 percent cost savings on the Government’s overall monthly telecom expenditures; as well as the installation and launch of an Internet Exchange Point (IXP) in Grenada and in Saint Vincent and the Grenadines, which has resulted in faster connectivity for final users. 21. Finally, under the grant implemented by the CTU, the Program has supported the development of four regional studies and capacity building workshops. These studies focused on: (i) Objectives and Constraints for Broadband Infrastructure and PPPs, (ii) Regionally-harmonized approaches to PPPs in Broadband, (iii) Legal and Regulatory Framework for Open Access to Broadband Infrastructure, and (iv) a Regional information technology (IT)-enabled services/skills regional strategy. Component 2: ICT-led innovation 22. Component 2, ICT-Led Innovation across all countries is underway. In Grenada, both the incubation program and the ICT Skills training program are quickly closing out. The total number of people trained under the project are 1,993 which is below target but expected to significantly increase during the 11 months, with the number of certified individuals surpassing the target level. In SLU, training and incubation activities are close to completion, with a small part of funds left to disburse. Regarding ICT training activities in SVG, there has been an increase in the number of ICT trainees to 600 in a number of basic and advanced ICT skills. The business incubation program has been operating within the Center of Excellence (COE) since May 2016. Approximately US$1 million was allocated under the Business Incubation grants program component with all funds being fully committed. Jan 19, 2020 Page 11 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Component 3: Implementation Support 23. Under this component, the implementation, monitoring, and evaluation of the Program is supported, as well as capacity building and knowledge sharing activities to ensure that the Program delivers the expected results. 24. Project Performance ratings. Since the inception of the program, progress towards achieving the PDO has been rated Moderately Satisfactory or higher in each Implementation Status and Results (ISR) report until March 2018, when the rating was downgraded to Moderately Unsatisfactory. This downgrading was largely due to delays in the Regional Broadband Network tender (under Component 1), resulting from the complexity of the PPP and difficulty in coordinating negotiations among the three countries. Following the second project extension in July 2018 and the signature of the PPP contracts, the rating for progress towards achieving the PDO was upgraded to Moderately Satisfactory in September 2018. 25. Overall Implementation Progress has been rated Moderately Satisfactory or higher throughout the implementation of the Program, except between March 2015 and January 2017. In March 2015, the rating was downgraded due to delays in procurement processes and in the execution of planned activities, particularly under Component 2 and the Caribbean Knowledge and Learning Network (CKLN) TA activities, under the CTU grant to support development of National Research and Education Network strategies. The rating was upgraded to Moderately Satisfactory in January 2017, following a restructuring that transferred all the CKLN activities to the CTU and after improvement in implementation of activities under Component 2. 26. The Program’s social and environmental implementation arrangements have remained unchanged and have focused on the activities of the contractor (Digicel), which is a well-organized ISO-14001 certified international company with vetted and qualified subcontractors. In-country environmental safeguards supervision capacity was found to need strengthening. Accordingly, the role of the Supervision Consultant Firms reporting to the PCUs was expanded for all three countries. An Environmental Consultant was retained for the PCU in Grenada, the PCU in SVG relies on shared environmental staff, and TORs were cleared for an Environmental Engineer in the GoSLU PCU, but the position has not yet been filled. There is an opportunity for the PCUs to learn from the international contractor’s systems, practices, and performance. In addition, the PCU’s environmental staff will consider climate-related aspects, as relevant, to ensure project planning decisions, project design, and construction methods are screened for and take into account climate risks in the region and/or receive capacity building on ICT strategies to support resilience to climate change. As of the last implementation support mission (February 2019), performance was deemed satisfactory and environmental risk moderate. For the three countries, Grievance Redress Mechanisms (GRM) are in place and have been satisfactorily implemented. II. DESCRIPTION OF ADDITIONAL FINANCING A. Overall Approach 27. The proposed additional IDA credit of US$11.9 million will allow the completion of the ongoing and planned activities under the Parent Program. The financing gap to be filled by this AF stems from the following Jan 19, 2020 Page 12 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) factors: (a) 10 percent exchange rate loss between Special Drawing Rights (SDR) and the United States Dollar (US$) since approval; (b) budget constraints of the three governments for provision of counterpart funding agreed during the negotiations of the Regional Broadband Network contract under Component 1; (c) cost increase due to the final number of buildings that need to be connected under the Regional Broadband Network; and (d) cost increase of the training and incubator program in Grenada and SVG. Without this AF, the credit proceeds allocated under the parent project to finance the deployment of the Regional Broadband Network now fully disbursed by GoSLU and GoSVG, and some of the milestones established under the Regional Broadband Network contract for the proper functioning of the network will not be met. As for Component 2, in the absence of the AF, the expected results associated with the number of people trained in ICT skills, and businesses receiving support through the incubation grants, will not be fully achieved. 28. The main rationale for the AF stems from a more limited availability of resources than originally planned to cover the Regional Broadband Network contract. Delays experienced between Program appraisal of the parent program and construction, due to technical complexity of the contract, led to several design changes and an increase in costs. The final design of the network, which ensures that it is sufficiently robust, includes the connection of new buildings to networks that were not planned at the time. This variation, in turn, led to a higher cost of Component 1. Finally, costs associated with managing business and incubation grants ended being much higher than estimated during appraisal due to low availability of training providers. The governments of participating countries could not mobilize alternate sources of funds for this specific purpose. B. Proposed Changes and AF activities 29. No changes to the PDO and Program components. The PDO and original components of the CARCIP Program remain valid and unchanged. As stated earlier, most of the AF funds will cover activities or milestones needed for the proper deployment and supervision of the Regional Broadband Network in the three countries (Component 1) and completion of the training and incubation grant program in Grenada and SVG (Component 2). Additional financing for implementation support (Component 3) was also requested by GoSVG to finance operating costs and the Project financial audit and by GoSLU for the financing of operating costs. 30. The AF has two main purposes. These primary objectives include: (1) closing the financing gap for the Regional Broadband Network under Component 1, which was originally going to be covered with each government´s own financing, and (2) cover the: (i) extra costs of the additional buildings to be connected under the Regional Broadband Network to ensure its proper functioning, and (ii) the cost overrun of the training and incubation grant activities under Component 2, both needed to make sure outcomes established in the Results Framework can be achieved. The activities to be financed under the AF for each country are detailed below (for further details on the activities to be financed under the AF and their link to the parent Program Financing Agreements please see Annex 1). 31. Activities to be covered under the AF for GoGD: (see Table 1): (i) Component 1 - key activities needed for the proper establishment of the broadband network in Grenada, including: a. Consultancy for the site readiness of each of the buildings to be connected through the Regional Broadband Network taking into account energy efficiency measures; Jan 19, 2020 Page 13 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) b. Consultancy for the necessary supervision of the buildout of the Regional Broadband Network; c. Acquisition of equipment needed for the proper functioning of the broadband network; d. Consultancy for the development of a communication, public education, and awareness strategy in order to create high visibility, sensitize the public and strengthen the resilience of ICT through the carrying out of capacity building activities for Grenada public officers of the relevant institutions and citizens to promote the open and non-discriminatory access to the broadband network. (ii) Component 2 - the financing of additional training and business incubation grants. Table 1: Grenada - Activities by Component Cost Under Additional Component Activities to be Financed Status Original Project Financing Building and Data Center Site Awarded US$1,300,000 Preparation Supervision of the Not yet Component 1: Regional Broadband Network US$400,000 US$5.620 million Procured Connectivity Installation Infrastructure Broadband Network Awarded US$600,000 Additional Equipment Not yet Communications Strategy US$300,000 Procured Component 2: ICT-led Not yet US$3.370 million Grant Funding to Business US$400,000 Innovation Procured Total US$3,000,000 32. Activities to be covered under the AF for GOSLU (see Table 2): (i) Component 1 - key activities for the proper establishment of a high- speed broadband backbone network and a government intranet, as well as technical assistance for the successful implementation of PPP arrangements, including: a. Payment to the telecommunications provider of part of the works for the provision of the Government Wide Area Network (GWAN), an education network (EduNet), and site preparation for modular data centers, as well as broadband internet services for community centers and other locations; b. Consultancy for the supervision of the construction of the broadband network, including climate resiliency aspects, and other project management costs including the hiring of an Access Site Coordinator; c. Acquisition of equipment for the proper functioning of the broadband network; d. Hiring of an Engineer/Environmental Safeguards Officer e. Consultancy for the development of a communication, public education, and awareness strategy ad plan in order to create high visibility, sensitize the public and promote CARCIP and strengthen the resilience of ICT through the carrying out of capacity building activities for GoSLU public officers of the relevant institutions and citizens to promote the open and non- Jan 19, 2020 Page 14 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) discriminatory access to the broadband network. f. Measuring the economic and social impact of the Universal Communications System (USC) (ii) Component 2 - Hiring of Business Incubation Grants Manager to carry out the monitoring of previous grant beneficiaries and carrying out beneficiary surveys. (iii) Component 3 - Hiring of project consultants in order to strengthen the institutional capacity for implementation, management coordination, monitoring and evaluation of the Project, and other operating costs including ongoing workshops. Table 2: Saint Lucia. Activities by Component Component Cost Under Activities to be Financed Status Additional Original Project Financing Deployment of GWAN and Awarded US$2,456,000 Education network. Supervision of the Awarded US$463,000 Broadband Network Installation Broadband Network Not yet US$500,000 Additional Equipment Procured US$3.500 million Engineer/Environmental Not yet US$66,000 Component 1: Regional Safeguards Officer Procured Connectivity w Infrastructure Access Coordinator Not yet US$40,000 Procured Communication and Public Not yet US$130,000 Education and Awareness Procured Strategy United Communications Not yet US$50,000 System (UCS) Impact Procured Assessment Component 2: ICT-led US$1.760 million Business Grants Manager Not yet US$50,000 Innovation Procured w Monitoring of Grant Benefits Not yet US$10,000 (surveys) Procured Component 3: US$0.740 million Procurement Officer Not yet US$70,000 Implementation Procured Support CARCIP Project Coordinator Awarded US$99,000 Project Officer Not yet US$35,000 Procured Public Relations Officer Not yet US$40,000 Procured Consultant for ICR Not yet US$50,000 Procured Operating Costs Ongoing US$41,000 (workshops) Jan 19, 2020 Page 15 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Total US$4,100,000 33. Activities to be covered under the AF for GoSVG (see Table 3): (i) Component 1 - Key activities for the establishment of the high-broadband backbone network and a government intranet, including: a. Payment to the telecommunications provider for part of the works for the provision of the Government Wide Area Network (GWAN); b. Works for expanding the GWAN to education centers taking climate risks into account; c. Consultancy for the site preparation of each of the buildings to be connected under the high-speed broadband network taking into account energy efficiency measures; (ii) Component 2 - Successfully completing the carrying out of the training and incubation grant program through: a. Extension of the business incubation Manager contract; b. Provision of training and business incubation grants; c. Capacity building activities for the center of excellence. (iii) Component 3 - Strengthening the institutional capacity for implementation, management, coordination, monitoring and evaluation of the Project, including PCU´s operating costs and final external audit. Table 3: Saint Vincent and the Grenadines - Activities by Component Cost Under Additional Component Original Project Activities Status Financing Deployment of GWAN Awarded US$1,960,590 Supervision of the Not yet Broadband Network US$119,312 Component 1: Regional procured Installation Connectivity Infrastructure US$3.450 million Site Preparation Awarded US$1,798,496 Expansion of the GWAN to Not yet US$710,196 Schools procured Business Incubation Awarded US$30,482 Manager Component 2: ICT-led Business Incubation Grants Awarded US$52,406 US$2.000 million innovation Implementation of Capacity Building Support for the Awarded US$37,518 Centre of Excellence Operating Costs Ongoing US$35,000 Component 3: US$0.550 million Not yet Implementation Support Financial Audit US$56,000 procured Total US$4,8000,000 34. No changes in disbursement arrangements. The AF will not trigger any changes in disbursement arrangements under the CARCIP Program. Disbursement projections for the AF have been updated. Jan 19, 2020 Page 16 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) 35. No Changes in safeguards categories and policies triggered. The AF does not cause any changes in safeguards categories and policies triggered under the CARCIP Program. 36. Changes to the Projects’ Results Framework (RF). The RF is updated to address omissions related to the project restructuring approved in June 2018 and increase the target intermediate indicator to reflect the additional financing of connecting more buildings/ facilities to networks. C. Institutional Arrangements 37. The implementation arrangements in the countries remain the same, except for Grenada. In Grenada the coordination of Project implementation, technical and safeguards oversight have been assigned to the Ministry of Implementation. It has been created to manage all multilateral investment projects, while procurement and financial management responsibilities remain within the scope of the Ministry of Finance’s units. In addition, this AF does not pertain to the CTU, as all the activities will be carried out at the national level, and the US$3 million grant to the CTU closed on February 28, 2019. III. KEY RISKS 38. The AF adds US$11.9 million to the program. The Overall risk associated with this AF is assessed as Moderate and is unchanged since the last reporting of the Implementation Status and Results Report. The proposed Program’s overall risk continues to be assessed as Moderate given current implementation progress, continuity of ongoing activities, and well-established project implementing agencies. Several measures to mitigate risks will remain in place, including regular implementation support to the country agencies, regular interaction with stakeholders through capacity building activities, and support for maintenance and operation practices to reinforce digital infrastructure resiliency. IV. APPRAISAL SUMMARY A. Technical 39. The technical design of each of the Program components are defined in Section C- Project Background. Common design issues include PPPs, open and competitive networks, effective utilization of government networks to complement national networks, financing of terrestrial and submarine cable deployments, assistance to develop an IT/ITES industry and support for creating an enabling environment for e- and m-services through incubation grants and digital skills training, which also target women to bridge the gender divide in access and use of ICT. The three countries will make efforts to integrate their networks to improve coverage, increase quality of services, and reduce cost. Additionally, all the countries have already deployed Internet Exchange Points, which are expected to keep traffic local, and further reduce connectivity costs. 40. In this regard, the AF resources will be mostly used for completion of the Regional Broadband Network, under Component 1, allowing proper supervision of the infrastructure to be deployed. The initial design and scope of this activity has not been significantly modified and will guarantee overall better quality of the final deliverable and reduce maintenance costs after works are completed. The AF will cover the costs of the works and supervision for a longer time than initially anticipated, allowing the delivery of the works to be kept to a Jan 19, 2020 Page 17 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) very high standard of quality. The resources will be used to strengthen the capacity for more efficient construction progress and extension of the contracts for works, supervision, and quality assurance. Finally, in Grenada and SVG, the AF will be used to cover the last batch of incubation grants and digital skills training under Component 2. 41. Vulnerability context. Extreme precipitation and flooding are projected to increase in frequency and intensity in the region, which could significantly reduce access to ICT infrastructure for repair. Major infrastructure gaps also exist in the region but the project planning decisions, project design, redundancy and security routing, and infrastructure deployment methods have taken into account climate and geophysical hazard in the region. 42. Gender. The Program has implemented specific skills development programs that target women and youth to improve employability and bridge the gender gap in access to and use of ICT. Furthermore, the impact of connectivity on rural areas has also contributed to integrate social groups and bridge the gender divide. The Program also implemented awareness building campaigns directed at women to foster their participation in the skills development programs. With a target of 50 percent female participation in St. Lucia, 45 percent of the beneficiaries of the program are women, in SVG, 38 percent and in Grenada 36 percent. 43. Citizen engagement. The AF will engage the citizens in the three participating countries through a communications and education plan that will serve as an opportunity for the citizens to know more about and become part of the project. In addition, under the second component, a survey for knowing the impact of the training and incubation grants delivered is planned and was included as an indicator in the last Restructuring of the project in June 2018. 44. Climate Change. Extreme precipitation and flooding are projected to increase in frequency and intensity in the region, which could significantly reduce access of ICT infrastructure for repair. Major infrastructure gaps also exist in the region but the project planning decisions, project design, redundancy and security routing, and infrastructure deployment methods have taken into account climate and geophysical hazard in the region. Each component of the AF is designed to lower current and anticipated vulnerabilities posed by climate change and is expected to provide adaptation co-benefits. Soft components such as long-term strategic planning and maintenance and operation activities will also critically and directly contribute to improving resilience and achieving adaptation to climate change. 45. Climate risks and co-benefits. Climate and Disaster Risk Screening was carried out for the AF in the three countries. In this regard, the exposure of the project location is “High” since Grenada, Saint Lucia and SVG have experienced climate and geophysical hazards in the past and are expected to experience these in the future with high intensity, frequency, or duration. Tropical storms, such as cyclones (or hurricanes), frequently affect this region and cause both direct coastal impacts, as well as indirect impacts through floods, landslides, etc. Earthquakes are also common in this region since the Caribbean islands are situated over a seismically active zone. Landslide potential is particularly great in Saint Lucia and they occur primarily as a secondary effect of heavy storms, floods or seismic activity. SVG is at risk to several natural hazards, including floods, hurricanes, cyclones, droughts, landslides, and volcanic eruptions. Being in the path of the Atlantic hurricane belt, the most common threat to this country is the potential for hurricanes and tropical storms. Flood in Grenada is mostly associated with storm surge in low coastal areas. Projected increases in seasonal rainfall and the proportion of rainfall as heavy events will have implications for flooding. Jan 19, 2020 Page 18 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) 46. Project planning decisions, project design, and construction methods have taken into account the level of climate and geophysical hazards in the region. In this regard, the infrastructure that has been deployed under the project has been analyzed in order to not alter the local microclimatic conditions, and any related extreme hazard. B. Economic Analysis 47. The economic analysis is focused on Component 1 activities, given that the AF will mostly cover cost overrun and financing gap for the Regional Broadband. Analysis of the Regional Broadband component was prepared using the services and actual costs as agreed with the supplier in the final contracts signed by each of the countries. Two levels of analysis were conducted including the standard financial analysis of the business cases for each of the procurement lots (Lots 1, 2 and 3) that were procured and the other from the perspective of each country regarding the Value for Money (i.e. PPP) of the contract taking into consideration the projected costs and savings from the 15-year broadband services contracts. In both analyses the rate of return for the business case and the value for money net present value analysis used the average cost of debt of the countries of approximately 4 percent as the discount factor. Based on the positive results of the value for money analyses carried out by the country teams, each of the contract lots were recommended for signing. In the business case analysis, the IRR for each of the lots on a consolidated country basis was positive (see Table 4). Table 4: IRR per country Lot Services IRR Lot 1 Government Wide Area Network (GWAN) 5.5 % Lot 2 EduNet – school services 9.2% Lot 3 Submarine Cable 6.1% 48. In addition to the financial analysis prepared, the countries identified other social and economic benefits of the Regional Broadband PPP contracts that were not quantified, including the following: (i) Substantially lower prices for all networks and services provided compared to existing services used by Governments; (ii) Substantial improvements in the quality of service and other service terms, with specific Service Level Agreement performance targets and penalties for non-performance by the supplier; (iii) Governments will own the GWAN and EduNet networks upon completion of construction and have access to large guaranteed amounts of capacity over the term of the contracts; (iv) Combined contract implementation processes, reducing Government costs; (v) Enabling the Governments to rollout key e-Government services; (vi) Provision of highspeed Internet access to students and residents in schools, libraries and community centres; (vii) Construction of critical national communications infrastructure that would be unaffordable without the joint contracting process and that will provide a catalyst for greater economic growth; Jan 19, 2020 Page 19 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) (viii) Network resiliency in all countries, closing all national and international fiber rings, providing critical redundancy. C. Financial Management 49. St Vincent and Grenadines. Financial management arrangements will continue to be executed by the GoSVG PMU and are deemed to be functioning and adequate for the Additional Financing. The PMU will continue to maintain their financial management system and submit to the Bank quarterly Interim Unaudited Financial Reports (IFRs) within 45 days from the end of each quarter and in accordance with the format and periodicity agreed with the World Bank. The financial statements will be audited annually in accordance with the terms of reference agreed with the World Bank. The last audit report covering the period from January 1, 2017 to July 31, 2018 was qualified with ineligible expenditures. The Bank conducted a detailed analysis of the audit findings and corrective actions were agreed with the PMU. Conclusions from the Bank’s review indicated that the PMU has a financial management system in place that was deemed to be functioning but required further strengthening. In addition, the PMU has since updated its Accounting and Policies Procedures Manual, which the Bank has reviewed and agreed to be more comprehensive and reduce errors such as these in the future. The Bank declared the ineligible expenditures and on an exceptional basis has allowed the project to substitute the ineligible expenditures by providing substitute documentation for the total amount confirmed ineligible, not later than December 31, 2019. The next audit report will cover the period from August 1, 2018 to December 31, 2019 which will be due by June 30, 2020 and will cover both the Parent and the AF. The final audit report will cover the year 2020 plus the grace period and will be due by June 30, 2021. The residual financial management risk is assessed as Moderate. 50. St Lucia. Financial management arrangements will continue to be executed by the PCU and are deemed to be functioning and adequate for the Additional Financing. The PCU will continue to maintain their financial management system and submit to the Bank quarterly Interim Unaudited Financial Reports (IFRs) within 45 days from the end of each quarter and in accordance with the format and periodicity agreed with the World Bank. The financial statements will be audited annually in accordance with the terms of reference agreed with the World Bank. The last audit report was submitted with delay, so the PCU should ensure timely submission of the next audit report to the Bank. Under the AF, audit reports will be due to the Bank not later than six months after the end of each fiscal year. The last audit report will cover the period from April 1, 2020 to the Project’s closing date (including the grace period) and will be due to the Bank by June 30, 2021. The residual financial management risk is assessed as Moderate. 51. Grenada. Financial management arrangements under the AF are expected to be the same as those under the original Project for GoGD. The Project’s financial management functions and responsibility will continue to be executed by the “Project Accounts Unit” (PAU) under the Accountant General’s Department (AGD)within the Ministry of Finance. This unit was created at the beginning of 2019 after the dissolution of the Project Coordinating Unit (PCU) in December 2018 and is dedicated to executing the financial management responsibilities for all Bank-financed projects, including the original Program. Overall, the financial management arrangements under the Program are deemed to be functioning and are adequate for the Additional Financing. However, during the year 2019 the PAU has faced difficulties to ensure timely submission of IFR to the Bank. The Unit has recently implemented a system to strengthen the timely preparation of IFRs and ensure timely submission going forward. Progress is being evidenced since the beginning of October 2019, and by October 31st all outstanding IFRs had been submitted to the Bank. Project financial management procedures will be Jan 19, 2020 Page 20 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) guided by the project operations manual of the Program. The Accountant General’s Department has an adequate financial management system that meets Bank requirements, and should be able to provide, with reasonable assurance, accurate and timely information on the status of the project implementation. The residual financial management risk is assessed as Moderate. D. Procurement 52. World Bank’s “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits and Grants” dated January 2011 and revised July 2014; and the World Bank’s “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011 and revised July 2014, will continue to apply to those activities already awarded under the Program, in order to promote proper continuity for the implementation of the broadband network. The Bank’s Procurement Regulations for IPF Borrowers, issued July 2016, revised November 2017 and August 2018 will apply to the activities, estimated to cost US$2.0 million, to be financed under the AF. This operation will be subject to the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006, and revised in January 2011. For each contract to be financed under the Program, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or bi-annually as required to reflect the actual project implementation needs and improvements in institutional capacity. 53. An exception to partially apply the “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits and Grants” dated January 2011 and revised July 2014; and the World Bank’s “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011 and revised July 2014, was approved by the Chief Procurement Officer (CPO) on October 15, 2019. US$9.6 million from the AF will cover cost overrun and financing gaps for activities already awarded under the Program, as well as amendments to contracts already awarded under the Program such as site preparation, deployment and management of UPS devices, or extension of the broadband network to new sites. The remaining US$2.0 million will finance activities that have not been procured which aim at achieving the parent and AF Project PDO. Therefore, and in order to promote proper continuity for the implementation of the broadband network deployment contract, and keep efficiency gains in implementation, the AF will continue applying the Procurement Guidelines to those activities already awarded under the Program, and apply the Procurement Regulations to the activities that have not been procured, estimated to cost US$2.0 million, to be financed under the AF. 54. An assessment of the agencies’ capacity to implement procurement was carried out during preparation of the Program and only minor changes in implementation are foreseen. Institutional arrangements for conducting procurement in each of the three countries will remain broadly the same as those employed under the parent project. In Grenada, which took the lead on behalf of the three participating countries in conducting procurement under the parent project, the Government has, within the past year, mainstreamed procurement implementation into the Central Procurement Unit in the Ministry of Finance, which was established under the Public Procurement and Disposal of Public Procurement Act (2014, amended 2018), written with support from the Bank. This is a more stable and sustainable model of procurement implementation than the previous organization model of relying on individual consultants hired under a temporary PCU. The Central Procurement Jan 19, 2020 Page 21 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Unit in MOF is staffed by five full-time procurement professionals, led by the Government’s Chief Procurement Officer, all of whom are public officials. The Senior Procurement Specialist who will be responsible for procurement under CARCIP AF was previously the procurement consultant in the PCU who worked on the parent project, so the Government has retained the experience and institutional memory built up under the parent project. In Saint Lucia, procurement will be conducted by the national Project Coordination Unit under the Department of Economic Development, which also handled procurement under the parent project; the PCU is staffed by a Project Coordinator and a team of local Procurement Officers with specialist expertise in the World Bank’s Procurement Regulations. In Saint Vincent and the Grenadines, the Project Coordination Unit in the Ministry of Finance, Economic Planning, Sustainable Development and Information Technology, which also handled procurement under the parent project, will conduct procurement under the AF operation; the PCU is well-established and is staffed by a Project Coordinator and three local Procurement Officers who have considerable experience in Bank procurement. Given the small values and relatively simple nature of the contracts to be procured under the AF operation, the Bank’s procurement capacity assessment finds that the implementing agencies have ample capacity to conduct procurement under this operation. E. Social (including Safeguards) 55. The Additional Financing will cover skills training and incubation grants as well as schools connection to the education network. The countries involved are committed to necessary action to address social risks in a timely manner. Digicel, which is responsible for the works related to connectivity, also has a well-organized Environmental and Social Management System (ESMS) system which is consistent with Bank standards. For this reason, the existing Resettlement Policy Framework (RPF) for the Program will continue to apply for the AF. The RPF was updated and disclosed on the Bank’s external website on December 4, 2019. To date, no resettlement activities have taken place. 56. Regarding institutional capacity, the countries involved (GoSVG, GoGD and GoSLU) are committed to addressing social risks in a timely manner. Social risks of the project are related to the temporary occupation of land required during the laying of cables. Other issues that require attention are stakeholder engagement regarding the proposed works, as well as grievance redress. The social risks will be mitigated through the items outlined in the Environmental and Social Impact Assessment, the Environmental and Social Management Plan along with Digicel’s ISO 14001 certified ESMS. Further, the risks will be monitored and managed by the dedicated Social Specialists at the project coordinating units in Saint Lucia and Saint Vincent and the Grenadines and by the Environmental Specialist, who’s contract was expanded to include social aspects in Grenada. Additionally, Saint Lucia will recruit a communications firm to manage stakeholder engagement and grievance redressal, while Grenada will utilize the existing parliamentary offices to disseminate information. F. Environment (including Safeguards) 57. The project continues to be assessed as Category B and no new safeguards policies are triggered. The existing Environmental and Social Management Framework (ESMF) has been adequate to guide onshore works which present minimal environmental challenges as cables are strung alongside existing roads, site installations at existing buildings are minimally invasive, and data centers are small buildings with only minor associated civil works. Environmental risk from offshore works (primarily to coral reefs and beach landing stations) are being managed through an Environmental and Social Impact Assessment (ESIA) that was completed Jan 19, 2020 Page 22 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) and received the Bank’s no-objection prior to initiating works in 2019. Mitigation measures were embodied in ESHS (Environmental, Social, Health and Safety) protocols that were included in the contracts for the on- and off-shore works. The ESMF was updated and redisclosed on the Bank’s external website on December 4, 2019. 58. The PCUs are managing the supervision of environmental compliance through contracting of an external consultant (in Grenada), assigning shared environmental staff (Saint Vincent and the Grenadines), and relying on a social specialist while TORs for an Environmental Engineer were issued (Saint Lucia) but not yet filled . To strengthen in-country environmental safeguards supervision capacity, the role of Supervision Consultant Firms reporting to the PCUs was expanded for all three countries. Finally, the principal contractor, an ISO-14001 certified international company with internal supervision of vetted and qualified subcontractors. V. WORLD BANK GRIEVANCE REDRESS 59. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance- redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org Jan 19, 2020 Page 23 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) VI SUMMARY TABLE OF CHANGES Changed Not Changed Results Framework ✔ Implementing Agency ✔ Project's Development Objectives ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ VII DETAILED CHANGE(S) Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 2012 0.00 0.00 2013 330,890.00 330,890.00 2014 694,747.20 1,025,637.20 Jan 19, 2020 Page 24 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) 2015 966,396.00 1,992,033.20 2016 1,395,294.40 3,387,327.60 2017 1,720,813.60 5,108,141.20 2018 1,949,797.60 7,057,938.80 2019 2,310,740.40 9,368,679.20 2020 1,965,496.80 11,334,176.00 2021 265,824.00 11,600,000.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance ⚫ Moderate ⚫ Moderate Macroeconomic ⚫ Low ⚫ Low Sector Strategies and Policies ⚫ Moderate ⚫ Moderate Technical Design of Project or Program ⚫ Moderate ⚫ Moderate Institutional Capacity for Implementation and ⚫ Moderate ⚫ Moderate Sustainability Fiduciary ⚫ Moderate ⚫ Moderate Environment and Social ⚫ Moderate ⚫ Moderate Stakeholders ⚫ Moderate ⚫ Moderate Other ⚫ Moderate ⚫ Moderate Overall ⚫ Moderate ⚫ Moderate LEGAL COVENANTS2 LEGAL COVENANTS – CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Sections and Description OPS_LEGAL_CONVENANT_CHILD_NODATA No information available Conditions Jan 19, 2020 Page 25 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Caribbean RESULT_NO_PDO CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING Project Development Objective(s) The development objective of CARCIP is to increase access to regional broadband networks and advance the development of an ICT-enabled services industry in the Caribbean Region. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline End Target Increase access to regional broadband networks Regional Grant: Policies developed for PPP and Open Access (Number) 0.00 2.00 Regional Grant: Regional regulations for Open Access (Number) 0.00 2.00 Advance the development of an ICT-enabled services industry Regional Grant: Coordinated activities in network and ICT-led 0.00 5.00 innovation (Number) IT/ITES employment (Number) 0.00 1,300.00 IT/ITES employment - St. Vincent and the Grenadines (Number) 0.00 500.00 Jul 15, 2019 Page 26 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline End Target IT/ITES employment - Saint Lucia (Number) 0.00 400.00 IT/ITES employment - Grenada (Number) 0.00 420.00 Businesses receiving Support through the project (Number) 0.00 80.00 Businesses receiving Support through the project - Saint Lucia (Number) 0.00 20.00 Businesses receiving Support through the project - St. Vincent 0.00 23.00 and the Grenadines (Number) Businesses receiving Support through the project - Grenada 0.00 60.00 (Number) Direct project beneficiaries, (% of which are female) (Number) 0.00 21,000.00 Direct project beneficiaries - St. Vincent and the Grenadines (Number) 0.00 5,000.00 Percentage of which are female (Percentage) 40.00 50.00 Direct project beneficiaries - Saint Lucia (Number) 0.00 9,000.00 Percentage of which are female (Percentage) 40.00 50.00 Direct project beneficiaries - Grenada (Number) 0.00 7,000.00 Percentage of which are female (Percentage) 0.00 50.00 PDO Table SPACE Jan 19, 2020 Page 27 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Intermediate Results Indicators by Components RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target Component 1 - Regional Connectivity Infrastructure Number of public buildings/facilities connected to networks 0.00 744.00 under the project (Number) Rationale: Increased to be consistent with one of the primary reasons for the AF of connecting more buildings than previously Action: This indicator has been Revised planned. Number of public buildings/facilities connected to networks under the project - St. Vincent and the Grenadines (Number) 0.00 274.00 Rationale: Increased to be consistent with one of the primary reasons for the AF of connecting more buildings than previously Action: This indicator has been Revised planned. Number of public buildings/facilities connected to networks 0.00 350.00 under the project - St. Lucia (Number) Rationale: Increased to be consistent with one of the primary reasons for the AF of connecting more buildings than previously Action: This indicator has been Revised planned. Number of public buildings/facilities connected to networks 0.00 120.00 under the project - Grenada (Number) Rationale: Increased to be consistent with one of the primary reasons for the AF of connecting more buildings than previously Action: This indicator has been Revised planned. Component 2 - ICT-led innovation. Jan 19, 2020 Page 28 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target People trained under the project (Number) 0.00 3,400.00 People trained under the project - Grenada (Number) 0.00 300.00 People trained under the project - Saint Lucia (Number) 0.00 1,500.00 People trained under the project - St. Vincent and the Grenadines (Number) 0.00 1,600.00 People certified after training under the project (Number) 0.00 790.00 People certified after training under the project - St. Vincent 0.00 250.00 and the Grenadines (Number) People certified after training under the project - Saint Lucia 0.00 250.00 (Number) People certified after training under the project - Grenada (Number) 0.00 290.00 People trained under the project in gainful ICT employment (Number) 0.00 615.00 Rationale: Action: This indicator has been Marked for Deletion Deleted as it was agreed in the prior restructuring of 2018, but it was inadvertently not removed at the time. People trained under the project in gainful ICT employment - 0.00 290.00 Grenada (Number) Rationale: Action: This indicator has been Marked for Deletion Deleted as it was agreed in the prior restructuring of 2018, but it was inadvertently not removed at the time. People trained under the project in gainful ICT employment - 0.00 175.00 Saint Lucia (Number) Jan 19, 2020 Page 29 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target Rationale: Action: This indicator has been Marked for Deletion Deleted as it was agreed in the prior restructuring of 2018, but it was inadvertently not removed at the time. People trained under the project in gainful ICT employment - 0.00 150.00 St. Vincent and the Grenadines (Number) Rationale: Action: This indicator has been Marked for Deletion Deleted as it was agreed in the prior restructuring of 2018, but it was inadvertently not removed at the time. Percentage of surveyed beneficiaries of a CARCIP Skills Program that reported being satisfied with the training program 0.00 50.00 (Percentage) Percentage of surveyed beneficiaries of a CARCIP Skills Program that reported being satisfied with the training 0.00 50.00 program - St. Vincent and the Grenadines (Percentage) Percentage of surveyed beneficiaries of a CARCIP Skills Program that reported being satisfied with the training 0.00 60.00 program - Saint Lucia (Percentage) Percentage of surveyed beneficiaries of a CARCIP Skills Program that reported being satisfied with the training 0.00 50.00 program - Grenada (Percentage) IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Number of policies Regional Grant: Policies developed for developed for PPP and CTU CTU Annual PPP and Open Access Open Access Jan 19, 2020 Page 30 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Regional Grant: Regional regulations for Number of regional CTU CTU Annual Open Access regulations developed Number of coordinated Regional Grant: Coordinated activities in activities in network and CTU CTU Annual network and ICT-led innovation ICT-led innovation Number of people that continued or found Surveys or Line ministry in the employment related to the Annual IT/ITES employment tracer studies three countries IT/ITES sectors, after completing CARCIP Skills Development Programs IT/ITES employment - St. Vincent and the Grenadines IT/ITES employment - Saint Lucia IT/ITES employment - Grenada Ministry of This indicator measures the Communica Businesses receiving Support through the total number of businesses tion in the PCU Reports Semi-annual project receiving incubation three support under the project countries Businesses receiving Support through the project - Saint Lucia Businesses receiving Support through the project - St. Vincent and the Grenadines Businesses receiving Support through the project - Grenada Calculated as number of Ministry of Direct project beneficiaries, (% of which employees in supported Communica Survey Annual are female) firms, number of people tion in the Jan 19, 2020 Page 31 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) trained and users of the three broadband network countries services Direct project beneficiaries - St. Vincent and the Grenadines Percentage of which are female Direct project beneficiaries - Saint Lucia Percentage of which are female Direct project beneficiaries - Grenada Percentage of which are female ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Indicator will count the number of public facilities (government buildings, Number of public buildings/facilities schools, hospitals, etc.) PCU PCU bi-yearly connected to networks under the project connected to networks financed by the project (includes PBX, GWAN and any other networks) Number of public buildings/facilities connected to networks under the PCU PCU bi-yearly project - St. Vincent and the Grenadines Jan 19, 2020 Page 32 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Number of public buildings/facilities connected to networks under the PCU PCU bi-yearly project - St. Lucia Number of public buildings/facilities connected to networks under the PCU PCU bi-yearly project - Grenada Training This indicator measures the Ministry of Providers? number of people trained People trained under the project Communic reports/certifi Semi-Annual in IT/ITES skills under the ations cation bodies? project. attestation People trained under the project - Grenada People trained under the project - Saint Lucia People trained under the project - St. Vincent and the Grenadines Training This indicator measures the Ministry of Providers? People certified after training under the number of people certified Communic reports/certifi Semi-Annual project after training under the ations cation bodies? project. attestation People certified after training under the project - St. Vincent and the Grenadines People certified after training under the project - Saint Lucia People certified after training under the project - Grenada Estimating about 80% of Ministry of Training People trained under the project in people trained will find Communic Providers? Annual gainful ICT employment gainful employment in ICT ations reports/certifi Jan 19, 2020 Page 33 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) sector cation bodies? attestation People trained under the project in gainful ICT employment - Grenada People trained under the project in gainful ICT employment - Saint Lucia People trained under the project in gainful ICT employment - St. Vincent and the Grenadines Percentage of surveyed beneficiaries of a CARCIP Skills Program that reported being satisfied with the training program Percentage of surveyed beneficiaries of a CARCIP Skills Program that reported being satisfied with the training program - St. Vincent and the Grenadines Percentage of surveyed beneficiaries of a CARCIP Skills Program that reported being satisfied with the training program - Saint Lucia Percentage of surveyed beneficiaries of a CARCIP Skills Program that reported being satisfied with the training program - Grenada ME IO Table SPACE Jan 19, 2020 Page 34 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) ANNEX 1. DETAILED ACTIVITIES BY COMPONENT AND COUNTRY Table 5: Grenada. Activities by Component Component Cost under Original Project Description under Schedule 1 to the Activities to be financed with the AF Status Expenditure Additional Original Financing Agreement Credit covered by the Original Category Financing Project Project Description “Developing the Recipient’s national and cross- Building and Data Center Site Awarded Consultancy US$1,300,000 border infrastructure, under PPP arrangements, Preparation for the deployment of Services and require to roll out submarine and terrestrial the Broadband Network in the Works backbone network s (…)” (Part A.2 of Schedule 1 to government and education buildings. the Financing Agreement)” “Establishing a Supervision of the Broadband Not yet Procured Non-Consultancy US$400,000 government intranet(...)” (Part A.3 of Schedule 1 to Network Installation Services US$5.62 the Financing Agreement). million Broadband Network Additional Awarded Goods US$600,000 Component 1 Equipment “Carrying out a program of activities for technical Communications Strategy Not yet Procured Consultancy US$300,000 assistance and capacity building of the relevant Services recipient’s institutions for (a) the design and implementation of PPP arrangements, including transactional advice and validation of design and costs for broadband infrastructure (…)” (Part A.1 of Schedule 1 to the Financing Agreement) US$3.750 “Carrying out a program of activities: (a) for skills Grant Funding to Business Ongoing Grants US$400,000 million development and certification (Training Plan) for eligible public and private training institutions and Component 2 private entities (Beneficiaries), through the provision of, and (b) Training Grants for capacity building and business incubation (…)” (Part B.1 of Schedule 1 to the Financing Agreement) Total US$3000,000 Jan 19,2020 Page 35 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Table 6: Saint Lucia. Activities by Component Component Cost under Original Project Description under Schedule 1 to the Activities to be financed with the AF Credit Status Expenditure Additional Financing Original Financing Agreement covered by the Original Project Description Category Project “Developing the Recipient’s national and cross-border Deployment of GWAN and Education network. Awarded Works US$2,456,000 infrastructure, under PPP arrangements, require to roll out submarine and terrestrial broadband backbone networks (…)” (Part A.2 of Schedule 1 to the Financing Agreement) Supervision of the Broadband Network Awarded Consultancy US$463,000 “Establishing a government intranet (...)” (Part A.3 of Installation Services US$3.5 million Schedule 1 to the Financing Agreement) Engineer / Environmental Safeguards Officer Not Yet Procured Consultancy US$66,000 Services Component 1) Access Coordinator Not Yet Procured Consultancy US$40,000 Services United Communications System (UCS) Impact Not Yet Procured Consultancy US$50,000 Assessment Services Broadband Network Additional Equipment Not Yet Procured Goods US$500,000 Jan 19,2020 Page 36 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) “Carrying out a program of activities for technical Communication and public education and Not yet Procured Consultancy US$130,000 assistance and capacity building of the relevant recipient’s awareness strategy Services institutions for (a) the design and implementation of PPP arrangements, including transactional advice and validation of design and costs for broadband infrastructure (…)” (Part A.1 of Schedule 1 to the Financing Agreement) Carrying out of a program of activities: (a) for skills Business Grants Manager Not yet Procured Consultancy US$50,000 development and certification (Training Plan) for eligible Services public and private training institutions and private entities (Beneficiaries), through the provision of Training Grants; and (b) for capacity building and business incubation to Component 2 US$1.760 support development of local ICT small and medium million enterprises (SMEs) (Business Plans) to promote the creation of new ICT-enabled industry, through the provision of Business Incubation Grants to eligible local ICT SMEs (Beneficiaries). Carrying out of a program of activities: (a) for skills Monitoring of Grant Benefits (surveys) Not yet Procured Consultancy US$10,000 development and certification (Training Plan) for eligible Services public and private training institutions and private entities (Beneficiaries), through the provision of Training Grants; and (b) for capacity building and business incubation to Component 2 support development of local ICT small and medium enterprises (SMEs) (Business Plans) to promote the creation of new ICT-enabled industry, through the provision of Business Incubation Grants to eligible local ICT SMEs (Beneficiaries). Strengthening the institutional capacity for US$0.74 implementation, management, coordination, monitoring Procurement Officer Not yet Procured Consultancy US$70,000 million and evaluation of the Project (…)” (Part C of Schedule 1 to Services the Financing Agreement) CARCIP Project Coordinator Not yet procured Consultancy US$99,000 Services Project Officer Not yet procured Consultancy US$35,000 Component 3 Services Public Relations Officer Not yet procured Consultancy US$40,000 Services Consultant of ICR Not yet procured Consultancy US$50,000 Services Operating Costs (workshops) Not yet procured Consultancy US$41,000 Services Total US$4,100,000 Jan 19,2020 Page 37 of 38 The World Bank CARIBBEAN REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADDITIONAL FINANCING (P171791) Table 7: Saint Vincent and the Grenadines. Activities by Component Component Cost under Original Project Description under Schedule 1 to the Activities to be financed with the AF Credit Status Expenditure Additional Original Financing Agreement covered by the Original Project Description Category Financing Project “Developing the Recipient’s national and cross- Deployment of GWAN Awarded Works US$1,960,590 border infrastructure, under PPP arrangements, Supervision of the Broadband Network Installation Not yet procured Consultancy US$119,312 require to roll out submarine and terrestrial Services broadband backbone networks (…)” (Part A.2 of Site preparation Awarded Goods and Non- US$1,798,496 Schedule 1 to the Financing Agreement) Consultancy Component 1 Services Expansion of the GWAN to schools Not yet procured Works and Non- US$710,196 Establishing a government intranet (...)” (Part A.3 of Consultancy Schedule 1 to the Financing Agreement) Services US$3.45 million “Carrying out of a program of activities: (a) for skills Business Incubation Manager Awarded Non-Consultancy US$30,482 development and certification (Training Plan) for Services US$2.00 eligible public and private training institutions and million private entities (Beneficiaries) through the provision of Training Grants; and (b) for capacity building and building business incubation to support development Business Incubation Grants Awarded Grants US$52,406 of local ICT small and medium enterprises (SMEs) Implementation of capacity Building support for the Awarded Consultancy US$37,518 Component 2 center of excellence Services (Business Plans) (…)”Part B.2 of Schedule 1 to the Financing Agreement. “Developing ICT centers of excellence to facilitate the growth of ICT- enabled industry to the Caribbean region” (Part B.1 of Schedule 1 to the Financing Agreement) Strengthening the institutional capacity for Operating Costs Ongoing Operating Costs US$35,000 implementation, management, coordination, Financial Audit Not yet procured Consultancy US$56,000 Component 3 US$0.55 monitoring and evaluation of the Project (…)” (Part C Services million of Schedule 1 to the Financing Agreement) Total USD$4,800,000 Jan 19,2020 Page 38 of 38