INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC6068 Date ISDS Prepared/Updated: 20-Feb-2014 Date ISDS Approved/Disclosed: 13-Mar-2014 I. BASIC INFORMATION A. Basic Project Data Country: Djibouti Project ID: P146219 Project Name: Djibouti - Telecom Sector Opening (P146219) Task Team Marc Jean Yves Lixi Leader: Estimated 19-Sep-2014 Estimated 16-Dec-2014 Appraisal Date: Board Date: Managing Unit: TWICT Lending Investment Project Financing Instrument: Sector(s): Information technology (20%), Telecommunications (80%) Theme(s): Regulation and competition policy (100%) Financing (In USD Million) Total Project Cost: 2.00 Total Bank Financing: 2.00 Financing Gap: 0.00 Public Disclosure Copy Financing Source Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 2.00 Total 2.00 Environmental C - Not Required Category: Is this a No Repeater project? B. Project Objectives The PDO is to create an enabling environment in the telecom and ICT sector by: (i) strengthening the policy, legal and regulatory framework of the telecom and ICT sector; (ii) restructuring Djibouti Télécom, through the opening of its capital to a world class private operator; and (iii) opening the sector to competition, through the award of a new license to an international telecom operator. C. Project Description This project takes place in a context where the government of Djibouti is seeking the World Bank technical and financial assistance to i) create an enabling environment in the telecom and ICT sector and ii) develop IT-enabled services (BPOs, call centers) and infrastructure development projects so as to increase the contribution of the telecom sector to employment and economic growth, thus Public Disclosure Copy consolidating Djibouti’s position as an ICT hub in the Horn of Africa. In order to address government’s demand for assistance, the World Bank proposed to sequence its intervention in two phases. The first phase consists in the proposed project and aims at improving the governance of the telecom sector, through the creation of an enabling environment. The second phase, tied to the results obtained in the first one, will aim at funding: i) pilot projects for developing IT-enabled/BPO services, such as call centers; and ii) infrastructure projects at both national and regional level, such as fiber optic backbone deployment projects. The rationale for this phased-approach is to ensure that the governance of Djibouti’s telecom sector is aligned with international best practices in terms of legal, regulatory and competitive environment, before investing in new IT-enabled services and additional infrastructure. The proposed project refers to the first phase of the World bank intervention described above. The design of the proposed project falls under the overall strategy agreed on with the government of Djibouti. 1. Description The proposed project has four components that are described below: Component 1: Setting-up of an enabling environment ($US 0.5 million). This component will finance the improvement of the legal and regulatory framework and the set-up of an autonomous regulatory entity. Component 2: Strategic repositioning and restructuring of Djibouti Télécom ($US 0.7 million). This component will fund the strategic repositioning of Djibouti Télécom to transform it into a world- class operator (opening of Djibouti Télécom’s capital to a private investor). More specifically, this Public Disclosure Copy component will fund the transaction advisor that will assist the government during the transaction. Component 3: Telecom sector opening and feasibility studies for infrastructure development ($US 0.5 million). This component comprises two activities: (i) the award of a second license to introduce competition and foster dynamism in the telecom sector in Djibouti; and (ii) financing of technical studies for the construction and management of the telecom infrastructure, through a PPP arrangement. Component 4: Project Management ($US 0.3 million). This component will finance the establishment of the project implementation unit within the Ministry of Telecom, the implementing agency. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) E. Borrowers Institutional Capacity for Safeguard Policies F. Environmental and Social Safeguards Specialists on the Team Helena Munir Freih Al-Naber (MNSEE) II. SAFEGUARD POLICIES THAT MIGHT APPLY Public Disclosure Copy Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ No BP 4.01 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/ No BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP No 4.12 Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 15-Apr-2014 B. Time frame for launching and completing the safeguard-related studies that may be needed. Public Disclosure Copy The specific studies and their timing1 should be specified in the PAD-stage ISDS: Not applicable IV. APPROVALS Task Team Leader: Name: Marc Jean Yves Lixi Approved By: Regional Safeguards Name: Maged Mahmoud Hamed (RSA) Date: 05-Mar-2014 Coordinator: Sector Manager: Name: Randeep Sudan (SM) Date: 13-Mar-2014 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.