Document of The World Bank FOR OFFICIAL USE ONLY Report No: T7725-CF CENTRAL AFRICAN REPUBLIC TECHNICAL ANNEX ON A PROPOSED GRANT OF SDR 4.8 MILLION (US$7.3 MILLION EQUIVALENT) TO THE CENTRAL AFRICAN REPUBLIC AS PART OF THE SDR 17 MILLION (US$26.2 MILLION EQUIVALENT) FOR THE COMMUNICATIONS INFRASTRUCTURE AND TECHNOLOGY APL PROJECT (APL1A) IN SUPPORT OF THE FIRST PART OF THE FIRST PHASE OF THE CENTRAL AFRICAN BACKBONE PROGRAM August 19, 2009 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective June 30, 2009 Currency Unit = SDR $ 1. 5522 = SDR 1 CFAF 464.46 = $ 1 FISCAL YEAR January 1 ­ December 31 ABBREVIATIONS AND ACRONYMS $ United States dollar, all dollars are US dollars unless otherwise indicated AfDB African Development Bank APL Adaptable Program Loan APL1A Communications Infrastructure and Technology APL Project which is the First Part of the First Phase of CAB Program APL1B Second Part of the First Phase of CAB Program ART Agence de Régulation des Télécommunications AU African Union CAB Central African Backbone CAB APL1 First Phase of CAB Program. CAB APL1 is composed of APL1A and APL1B CAR Central African Republic CAS Country Assistance Strategy CDMA Code Division Multiple Access CEMAC Central African Economic and Monetary Community CFAA Country Financial Accountability Assessment CITCAR Communications Infrastructure and Technology APL Project - Central African Republic Grant CPIPP Country Procurement Issues Paper DFI Development Financial Institutions DfID UK Department for International Development DSL Digital Subscriber Line ECCAS Economic Community of Central African States EDGE Enhanced Data Rates for GSM Evolution EMP Environmental Management Plan ESMF Environmental and Social Management Framework FM Financial Management GIS Geographic Information Systems GSM Global System for Mobile Communication or 2G HCC Haut Conseil de la Communication ICB International Competitive Bidding ICT Information and Communication Technology IDA International Development Association IFC International Finance Corporation FOR OFFICIAL USE ONLY IFR Interim Financial Report ISP Internet Service Provider ISR Implementation Status Report ITU International Telecommunication Union IXP Internet Exchange Point MPTNT Ministry of Post and Telecommunications in charge of New Technologies M&E Monitoring and Evaluation PIM Project Implementation Manual PPIAF Public-Private Infrastrucure Advisory Facility PPF Project Preparation Facility PPP Public Private Partnership PRSP Poverty Reduction Strategy Paper RAP Resettlement Action Plan RCIP Regional Communications Infrastructure Program RPF Resettlement Policy Framework SOCATEL Société Centrafricaine de Télécommunications TA Technical Assistance WBG World Bank Group WiMAX Worldwide Interoperability for Microwave Access Vice President: Obiageli Katryn Ezekwesili Acting Regional Integration Director: Richard Scobey Sector Director Mohsen Khalil Country Director: Mary Barton Dock Sector Manager: Philippe Dongier Task Team Leader for CITCAR: Yann Burtin Co-Task Team Leader for CITCAR: Jérôme Bezzina This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. AFRICA Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A Central African Republic Grant (CITCAR) CONTENTS Page A STRATEGIC CONTEXT AND RATIONALE ..................................................... 1 1. Country and Sector Issues .................................................................................. 1 2. Rationale for Bank involvement......................................................................... 6 3. Higher level objectives to which the project contributes ................................... 7 B PROJECT DESCRIPTION ..................................................................................... 8 1. Lending instrument............................................................................................. 8 2. Project development objective and key indicators ............................................. 9 3. Project components ............................................................................................ 9 4. Lessons learned and reflected in the project design ......................................... 11 5. Alternatives considered and reasons for rejection ............................................ 11 C IMPLEMENTATION ............................................................................................ 12 1. Institutional and implementation arrangements ............................................... 12 2. Monitoring and evaluation of outcomes/results ............................................... 12 3. Sustainability .................................................................................................... 14 4. Critical risks and possible controversial aspects .............................................. 14 5. Grant conditions and covenants ....................................................................... 17 D APPRAISAL SUMMARY ..................................................................................... 17 1. Economic and financial analysis ...................................................................... 17 2. Technical .......................................................................................................... 18 3. Fiduciary ........................................................................................................... 18 4. Safeguard policies ............................................................................................ 19 5. Policy Exceptions and Readiness ..................................................................... 20 Annex 1: Major Related Projects Financed by the Bank and/or Other Agencies .... 21 Annex 2: Results Framework and Monitoring ............................................................ 22 i Annex 3: Detailed Project Description.......................................................................... 25 Annex 4: Project Costs ................................................................................................... 27 Annex 5: Implementation Arrangements ..................................................................... 28 Annex 6: Financial Management and Disbursement Arrangements ......................... 31 Annex 7: Procurement Arrangements .......................................................................... 38 Annex 8: Economic and Financial Analysis ................................................................. 46 Annex 9: Statement of Loans and Credits for CAR .................................................... 49 Annex 10: Country at a Glance ..................................................................................... 51 ii AFRICA CENTRAL AFRICAN BACKBONE PRROGRAM COMMUNICATIONS INFRASTRUCTURE AND TECHNOLOGY PROJECT (APL1A) A STRATEGIC CONTEXT AND RATIONALE 1. Country and Sector Issues 1. Central African Republic (CAR) is a poor landlocked country but has been growing steadily over the past few years. CAR size is about 623000 square meters, with a population of 4.3 million. According to a household survey data, 67.2 percent of the population lived below the poverty line in 2003. Approximately 20 percent of the population lives in Bangui, the capital city. Beyond the political turmoil, economic development has also been hampered by the country's landlocked position, a transport system poorly maintained, a largely unskilled workforce, and a legacy of misdirected economic policies. The government has also had poor revenue collection and budget outcomes, and is behind in military and civilian payrolls. The country thus remains poor despite the economic potential of CAR's natural resources (diamonds, gold, uranium, and timber) and favorable farming conditions. The agricultural sector generates more than half of the country's Gross Domestic Product (GDP). CAR continues to emerge from a fragile economic environment and macroeconomic performance and policy implementation have strengthened. With a per capita GDP of $350 in 2006 and with 67 percent of the population living below the poverty line, it is one of the world's poorest countries. This situation has been compounded by the international financial crisis. CAR ranked 171st out of 177 countries in United Nation Development Program's 2007/08 Human Development Index. Poverty is widespread, and the incidence of poverty in rural areas is higher. Access to even basic education and health services is minimal, and outcomes are worsening as these sectors have been significantly under-funded for several decades. CAR reached the HPIC completion point in June 2009 highlighting the progress accomplished by the Government in terms of governance, public financial management amd implementation of social programs. 2. Telecom and ICT Snapshot. In CAR, out of a total population of 4.3 million in December 2007, the number of main fixed lines in operation was 5,000 and the number of mobile subscriptions was 0.35 million, representing a fixed teledensity1 of 0.12 and a mobile teledensity2 of 7.99. The number of Internet broadband subscribers in 2006 and the international bandwidth were respectively estimated to 13.000 and 14 to 16 Mbps in end 2007. In CAR, the number of cybercafé and was estimated less than 30. The eGovernment Readiness for CAR was 0.1412 in 2008 as compared to a level of 0.2530 as an average for Central (average eGovernment Readiness for the World: 0.4514). 3. The telecom and ICT detailed structure. The incumbent operator SOCATEL which was originally 60 percent owned by the government and 40 percent by France Telecom through France Câbles & Radio is now a fully state-owned operator. There are now four private mobile operators in CAR: Telecel, Moov (AtlantiqueTelecom), 1 Number of fixed telephone lines per 100 inhabitants. 2 Number of mobile subscriptions per 100 inhabitants. 1 Nationlink and Orange (SOCATEL has recently launched a limited mobile service using Code Division Multiple Access (CDMA) technology). There were about 12,000 fixed lines in CAR in 2008 (only available in the capital Bangui and Berberati). Other than this limited coverage, there were phone booths ("cabines publiques") in a number of cities. SOCATEL's network is in a poor condition (broadband services using DSL3 technology will be limited in CAR). Therefore wireless broadband will be the main means used to deliver high-speed connectivity to the population. As of July 2008, there were about 600,000 mobile subscribers. All four mobile operators offer Internet services (Orange has recently launched broadband Internet services in Bangui ­ using WiMAX4 technology). The entry of Orange into this relatively small market is likely to re-energize the mobile market and lead to faster growth and slightly lower prices. The mobile operators are providing services in approximately 26 cities. Although SOCATEL is making some progress on refurbishing and upgrading its network, the copper lines at the local level are far too unreliable to allow them to launch DSL services. Doubtless Orange and other mobile operators will capitalize on this market gap but without a cheaper national and international bandwidth, the number of Internet subscribers is likely to increase modestly. As far as bandwidth/backbones are concerned, the network depends on satellite connectivity (even for national connectivity between the capital and secondary cities) and few microwave and low-capacity radio links exist. 4. Policy and regulation overview. The fixed-line network is still a monopoly but competition has become important in the mobile and Internet segments. The Law No 96.008 of January 1996 provided provisions for the liberalization of the sector and created a Telecom regulatory authority (ART - Agence de Régulation des Télécommunications). However, it was not formally established until 2003. The Ministère des Postes, des Télécommunications chargé des Nouvelles Technologies (MPTNT) was created in 1999 and has responsibility for the country's ICT policy. The national policy adopted in 2006 aims to: (i) promote public participation through dialogue; (ii) support initiatives of basic communities through information, knowledge, and technical skill exchanges; (iii) develop the broadcasting sector and introduce innovations by providing social communication instruments and; (iv) promote systems of popularization, supervision, training, and horizontal communication. The actual legal framework for telecommunications in CAR is set by the laws No 07.020 (regulating the telecommunications sector) and No 07.021 of December 28, 2007. Following the adoption of the Central African Economic and Monetary Community (CEMAC) Directives on Electronic Communications Services in line with good international practices and consistent with the Central African Backbone (CAB) design, the Government of CAR is currently using the Project Preparation Facility (PPF) to finance the harmonization and adaptation of sector legal and regulatory framework. 5. High cost structure is resulting in less trade. The isolation and high cost structure of CAR have held back the availability of affordable telecommunications infrastructure. Without access to low price and high quality telecommunications services, it is very costly for the population to trade with each other, and with the rest of 3 DSL or Digital Subscriber Line. 4 WiMAX or Worldwide Interoperability for Microwave Access. 2 the world (limiting opportunities to create jobs, and expand production of goods and services). 6. The absence of 21st century backbone infrastructure5 at the national level is an additional key constraint. All operators do not have broadband terrestrial networks and rely on expensive and poor quality satellite connectivity or small microwave backbones to link cities at the national level. Some projects have been proposed in the past, but none have materialized due to a combination of factors, including inadequate legal and regulatory framework and investment climates, and the complexity of a multi- country investment project and related concerns about financial sustainability. Recently, existing operators (fixed and mobile) and public authorities began to explore new business models that could foster the deployment of such infrastructure at the national level. The new infrastructure could be developed through a Public Private Partnership (PPP) under principles of competitive level pricing and Open Access.6 Such backbone would connect the capital and secondary cities (contributing to reduce the urban-rural divide) to neighboring countries but also provide redundancy routes (network securization). Operators and service providers could then provide affordable and better quality ICT and eGovernment services to citizens. Effective cross-border links and supporting regulatory frameworks are therefore critical for CAR, and the region as a whole. 7. Closing the infrastructure gap and opening up access to cheaper bandwidth. The transmission network (long-distance and international) is entirely based on satellites. The proposed fiber-optic transmission backbone proposed by the Central African Backbone (CAB) Program would link the telecommunications network in CAR to those in Cameroon, Chad and eventually Republic of Congo and Democratic Republic of Congo. The telecommunications network in CAR will then connect international submarine fiber-optic cables, with onward connectivity to other African countries, Europe and the Far East. The CAB Program would provide additional bandwidth capacity to enable the development of the telecommunications and internet sector. 8. Without cross-border initiatives and regional coordination, Central African Republic may not be in a position to solely achieve low-cost broadband access and low-cost regional connectivity. A prefeasibility study has been conducted by a specialized international firm in Cameroon, CAR and Chad that evidence the economies of scale and cost efficiencies of a truly regional and fully integrated end-to-end backbone infrastructure. The study demonstrates the financial and technical feasibility of the CAB Program and recommends the implementation of CAB APL1 involving Cameroon, CAR and Chad. The study forms the basis for the design and framework for the CAB Program intervention. The CAB network, as designed, is a regional telecommunications network made up of suitable on-ward terrestrial fiber connections to submarine fiber-optical cable systems linking several Central African countries and providing the region with a digital broadband access to the global fiber network. In addition to the build-out of 5 For the purposes of this project, backbone infrastructure refers to a collection of high-capacity fiber-optic or point-to-point wireless (e.g. microwave) links both within countries and between countries. 6 Open Access is broadly defined as an equal opportunity for operators and service providers to have unfettered access to specific infrastructure or services under similar terms and conditions. 3 approximately 2,200 km of new fiber-optic infrastructure, the planned broadband backbone would leverage the 1000 km existing fiber-optic infrastructure laid along the oil pipeline between Kribi (Cameroon) and Doba (Chad). The study developed nine scenarios, the traffic demand and flows for the targeted countries and has set key principles (CAB network is to be a shared infrastructure promoting an Open Access regime and owned and operated according to PPP principles). 9. In May 2007, based on the findings of the study, the heads of state of CEMAC adopted a Declaration calling for the establishment of the CAB under Open Access and Public-Private Partnership (PPP) principles and asked for donors intervention. In line with the Regional Integration Assistance Strategy (RIAS) and national CAS/ PRSP, the World Bank Group (World Bank and IFC) and the African Development Bank (AfDB) have provided Technical Assistance (TA) to CEMAC and Central African countries to conduct preparatory studies. Regional and national technical committees were set-up since 2007. In parallel, the World Bank has participated as an observer to the elaboration of the 2008 CEMAC Directives on Electronic Communications Services in line with sector good practices and the CAB Program as designed. 10. A new operating model consisting of a new regional network and national telecom operators will become fully integrated thus driving prices lower. The CAB structure as designed and supported by the proposed World Bank Program calls for the establishment of a new regional telecom operator and national operators. These operators would be in charge of reselling international, regional and national capacity to existing national operators and service providers at discounted rates, compared to current pricing in the targeted countries. In a medium scenario, the international bandwidth price reduction could be above 50 percent for the landlocked countries during the first year of operation. As such, the CAB network will increase competition for the provision of international and national capacity (new alternative infrastructure, fiber-optic backbone, competing with satellite and microwave connectivity). 11. Key principles (promoting Open Access regimes, developing wholesale markets and promoting PPPs) have been defined in the study and have to be endorsed by all participating countries in order to be eligible for World Bank financing. To keep some flexibility, the detailed arrangements (in terms of ownership and management) will be defined at the country-level, taking into account the difference of all eligible countries in terms of sector structure, level of development and access, operational and financial situation of the respective State Owned Enterprise (SOE). 12. The backbone network that will be installed at the country-level will use a hybrid competitive and cooperative approach. This reflects the need to differentiate the role of the government and the operators and to build strong partnerships with the private sector to develop telecommunications infrastructure. 13. The government's role is to focus on providing the right incentives for infrastructure and services to reach areas unattractive to the private sector on a purely commercial basis, as well as in cases where large initial sunk investments are required. Government participation through the financing of segments of the CAB backbone will be used to buy-down the cost of capital; therefore the prices that could be charged to 4 consumers to recover the investment (regulatory mechanisms will be set-up to ensure that lower costs are passed to the consumer). Additional government support may take the form of government participation in the new legal entity created for the build-out of the backbone networks (such as through contribution of existing assets), guarantees, subordinated debt, ensuring rights-of-way, and/or commitment to purchase certain capacity on the network for a given time period. 14. Role of the private sector. The private sector will participate in financing, and will install, maintain and operate the CAB network. The capital and financing structure will be a blend of public and private sector. The inclusion of the private sector and profit sharing can bring several benefits including: (i) access to private finance; (ii) reduced operational risk for public sector; (iii) faster delivery of capital projects; (iv) project management skills; and (v) entrepreneurship and innovation. The PPP structure will share the risks and rewards between the government and the private companies. CAB PPP Structure and financing 15. The CEMAC - in coordination with the Governments of Cameroon, CAR and Chad, the World Bank Group, the AfDB, and the International Telecommunication Union (ITU) - has launched the recruitment of the investment bank and legal adviser (transaction advisers) to finalize the structure and mobilize the private funding. 16. The design and ownership structure of the PPP will (i) maximize the use of private financing (or minimize the use of public financing); (ii) ensure feasibility and attractiveness of the transaction; (iii) secure Open Access to regional connectivity infrastructure; and (iv) ensure competitive, reasonable tariff of international, regional and national capacity. 17. New legal entities will be formed for the purposes of owning and operating the CAB networks. This will take the form of a consortium including the private operators, private financers', incumbent operators and/ or governments. The private sector will install and maintain the CAB networks. A contract will be set between the private sector and the existing public telecommunications operators on the management of the national backbones (the new structure could also be leveraged to manage these networks). Final ownership distribution will be based on the amount of private financing mobilized and final contributions made by the Governments. 18. The IFC is playing a role as part of the World Bank Group's support to the CEMAC and to Governments as they finalize an optimal structure for the public-private partnership that ensures the feasibility and attractiveness of the transaction. If needed IFC may also assist in mobilizing funding or assist investors7. 19. Financing CAB Program APL1. The first phase of the CAB program proposed for IDA financing will cover Cameroon, Central African Republic and Chad. The first 7 In consultation with the Conflict of Interest Office, the WBG has disclosed the potential risk of perception of conflict of interest to the Governments highlighting the expected benefits from the institution to intervene as a Group. 5 Phase of CAB Program8 comprising APL1A and APL1B will be structured as a vertical APL. APL1A will to cover the technical assistance to strengthen the enabling environment and prepare the PPP structure for the establishment of the CAB Network. APL1B will focus on financing the connectivity infrastructure of the CAB network. To establish the CAB infrastructure in Cameroon, CAR and Chad (that will utilize the existing 1,000 km fiber-optic backbone laid next to the oil Chad-Cameroon oil pipeline), approximately $40 million will be contributed from the first phase of the CAB program (technical assistance will be provided through APL1A and connectivity infrastructure will be partly financed by APL1B). 20. In addition, the AfDB will provide parallel financing to establish complementary backbone infrastructure in CAB APL1 countries. However, the cost and design of this additional infrastructure is not included in the CAB APL1. As structured, the World Bank CAB Program and CAB APL1 will not be affected if the AfDB financing does not materialize. 21. Private sector interest. An additional $27.8 million is estimated to be needed to establish the CAB network for CAB APL1 countries. It will be mobilized from the private sector (private equity, off-take agreements and commercial debt). The structure as recommended has been presented to all public and private operators in CAB APL1 countries (but also in other eligible countries). Despite the economic and financial crisis, all operators9 have confirmed their strong interest in the venture since CAB will lower significantly their operating cost and provide new opportunities for additional network coverage. Several operators have announced that they will explore the opportunity to contribute financially, and some international commercial banks have also expressed an interest. 2. Rationale for Bank involvement 22. Strong government commitment to the ICT sector. The government is strongly committed to the use of ICT. The government has clearly identified ICT as a driver of growth in CAR. This has been articulated in the sector policy document published in August 2006 « Politique Stratégies et Plan d'Action de l'édification de la Société de l'information en République Centrafricaine ». This prioritization has recently been reaffirmed through the identification of the ICT sector as a key source of future economic growth. In 2007, the heads of state of the CEMAC have adopted a Declaration to implement this program as a key tool for regional integration and growth. Significant technical and financial resources have been mobilized by the countries and the CEMAC Commission to accelerate the implementation of CAB. 8 The first Phase, CAB APL1, includes two parts: APL1A and APL1B . See Para 28 for more explanation of the structure. 9 To provide a comparison to the US$30 million, the project aim to raise from the private sector, more than US$40 million has been invested in the Telecom sector in CAR (same amount expected in 2009). However, without key principles as set in the CAB project (shared infrastructure, Open Access and co-financing from CAB APL1), no operator could develop such infrastructure in CAR. 6 23. The proposed operation is consistent with the Interim Country Assistance Strategy in CAR, the PSRP process and particularly within the framework of the Africa Action Plan. The Interim CAS highlights the role of key infrastructure (such as roads and telecom backbones) and the need for policy harmonization in the sector. The project is consistent with the four strategic pillars of the PSRP (process launched in June 2007): (i) restore security, consolidate peace and prevent conflict; (ii) promote good governance and the rule of law; (iii) rebuild and diversify the economy; and (iv) develop human capital. The Bank's Africa region development strategy discussed at the Board in July 2003, identified advances in ICT as one of the three emerging positive trends in the 21st century for Africa, offering "enormous opportunities to leapfrog stages of development". The CITCAR also fits within the Bank's comprehensive Africa Action Plan developed in 2005, which further articulates goals and objectives covering several important development areas including: (i) building national development strategies and measuring results; (ii) building capable states and improving governance; (iii) supporting drivers of growth; and (iv) strengthening and implementing partnerships at the country level. The CITCAR will facilitate cross-border communications traffic and will promote trade, stimulate cross-border movement of factors of production and promote regional integration. 24. The CITCAR fits well with World Bank Group's Regional Integration Assistance Strategy for Africa (RIAS), particularly within the framework of the Africa Action Plan. The Bank's RIAS discussed at the Board in April 2004, identified advances in ICT as one of the three emerging positive trends in the twenty-first century for Africa, and highlight its role for the regional connectivity objective. The CITCAR and APL1A will strengthen and implement partnerships at the regional level (including regulatory harmonization) and will support for both Economic Community of Central African States (ECCAS) and CEMAC objective of creating a unified economic space in Central Africa. 25. The World Bank Group is well placed to contribute within the frame of a multiple development partners' effort. The WBG has been involved in the CAB program since 2005. The May 2007 Declaration of the CEMAC heads of state adopted called explicitly for World Bank Group financial support for the implementation of the CAB program. The overall program has been formulated with other key stakeholders and DFIs (the AfDB joined the initiative in 2007 and is providing parallel financing for the CAB Program; The African Union (AU) is also playing an important role in facilitating inter-governmental cooperation and policy harmonization, in conjunction with the CEMAC). 3. Higher level objectives to which the project contributes 26. The development objective will be the engine of shared growth achieved by: (i) accelerating the physical rollout of backbone infrastructure (investment intervention based on PPPs to leverage private sector investment in infrastructure); and (ii) removing monopoly regimes through policy and regulatory support to ensure that once in place, the infrastructure is accessible to all operators on open, transparent and non-discriminatory terms. 7 27. The project will help reduce the cost of doing business in CAR. In the 2009 Doing Business report which presents quantitative indicators on business regulations and the protection of property rights compared across economies, CAR was ranked 180 out of 181 countries, while Cameroun was ranked 164, Equatorial Guinea 167, Republic of Congo 178, and Gabon 151. Infrastructure services remain costly and inefficient, thus making the cost of doing business very high. For CAR to achieve higher and sustained growth performance, it will need to develop rapidly its basic infrastructure. A better communications infrastructure, capable of delivering advanced ICT services throughout the country would reduce the cost of doing business. B PROJECT DESCRIPTION 1. Lending instrument 28. Lending instrument. The lending instrument is a Regional IDA horizontal and vertical Adaptable Program Loan (APL). The Communications Infrastructure and Technology APL Project (APL1A) ­ Central African Republic Grant (CITCAR)is the first part of the first phase of the CAB Program. The APL instrument is well-suited to take into consideration the length of time it takes to achieve the overall objective of establishing a regional network for Central Africa. An APL is also flexible enough to accommodate the different level of readiness of the participating countries (horizontal APL) and to phase Technical assistance if needed prior to the mobilization of the required financing for the infrastructure (vertical APL). 29. Breakdown of Regional and National IDA allocations. Since this is a project included in a regional program, supplementary regional IDA funding can be used to leverage country allocations for up to two-thirds of the full proposed IDA amount of the project, with country allocations covering one third of the project cost attributable to each individual country involved (taking into account that the National IDA allocation cannot exceed 20 percent of the FY National Allocation). The table below provides a summary of the regional/national IDA breakdown for CITCAR and estimated breakdown for the activities in CAR to be supported under APL1B10. Regional National $million IDA Pilot IDA Total APL1A - CAR portion 5.20 2.10 7.30 APL1B- CAR 9.90 0.00 9.90 portion 10 The National IDA allocation cannot exceed 20% of the FY National Allocation. We have assumed that APL1B will be presented for Board approval in FY10. 8 2. Project development objective and key indicators 30. Project Development Objective (PDO). The core PDO is to contribute to increase geographical reach and usage of regional broadband network services and reduce their prices. 31. Key monitoring and evaluation indicators are summarized in Table 1. However since the first Phase of CAB includes two parts: APL 1A (including CITCAR) and APL1B , the only outcome indicator retained for CITCAR is related to the volume of national traffic. Others outcome indicators for CAR related to APL1B are provided on an indicative basis. Table 1 Monitoring and Evaluation framework Project Development Objective Outcome Indicators At closing of project Contribute to increase geographical reach and usage of regional Volume of international traffic broadband network services and [APL1B]: reduce their prices International Communications (Internet, Telecoms, and Data) 3.0 bandwidth per person Volume of national traffic using 2 proxies [CITCAR]: Internet users per 100 inhabitants 1.6 Total teledensity (active fixed 27 and mobile subscribers per 100 habitants) Average price of international communications using the proxy [APL1B]: Average monthly price of $2500 wholesale international capacity link from Bangui to European hub (E111). 3. Project components 32. The first phase of the CAB proposed for CAR will be structured as a vertical APL to cover first the technical assistance to strengthen the enabling environment and prepare the PPP structure for the establishment of the CAB (APL1A) then a subsequent part will focus on financing the connectivity infrastructure of the CAB (APL1B). 11 E1: It is equivalent to two (2) Mbps. 9 33. The CITCAR (part of APL1A) will therefore finance activities related to the "enabling environment" Component and the "project management" component while APL1B (expected to be presented for Board approval in April 2010) will finance activities related to the "connectivity" component described in the CAB Program. APL1B will be triggered after (i) the establishment by the recipients and other stakeholders of a legal structure which will install and manage the CAB network in accordance with PPP principles and Open Access regime; and (ii) the CAB legal structure has received the legal rights to install, manage and operate the CAB network on the Recipient's territory. 34. The CITCAR will have the following components and activities (see Annex 3 for more details): 35. Component 1 ­ Enabling environment ($5.7 million). This component will provide support mainly in the form of TA, training and equipments in order to (i) modernize the policy, legal and regulatory environment; (ii) strengthen key public institutions (including ART, Haut Conseil de la Communication (HCC) and SOCATEL); and (iii) promote a pro-competitive environment and restructure of incumbent operators. This component is a key for the effective establishment of the CAB network. - Modernize and harmonize the legal, regulatory and institutional framework in CAR to accelerate sector growth and ICT development. The project will finance the following activities: (i) TA to modernize and harmonize the legal and regulatory framework for Electronic Communications Services and (ii) TA to develop ICT legislation and institutional framework (e.g. Digital signature, eCommerce, Intellectual Property Rights, Data Privacy). - Strengthen capacity of key public stakeholders (MPTNT, ART, and HCC) to promote further sector reforms. It include in particular the following activities: (i) TA to develop regulatory tools (i.e., interconnection/tariffs, networks monitoring, Open Access); (ii) TA to increase ICT access in remote areas (iii) TA to review spectrum management framework in CAR and prepare bidding documents for the acquisition of a spectrum management and monitoring system; (iv) training/ capacity building; and (v) equipments (i.e., spectrum management and monitoring system, information systems). - Promote a pro-competitive environment and restructure of Incumbent operators to maximize the benefits from the regional network. The project will finance in particular the following activities: (i) TA to liberalize further the sector; (ii) TA to promote and establish PPP to deploy the CAB; and (iii) TA to define and implement the restructuring options, and privatize incumbent operators. - Establish Internet Exchange Points (IXPs) to complement the other investments that the government and the private-sector are undertaking to boost connectivity and the capacity of the regional backbone network. The project will finance the following activities: (i) TA to design the establishment of a National and Regional IXP; and (ii) equipments for the National and Regional IXPs. 10 - Launch structuring and start-up consultancies required for the establishment of CAB networks including CAB-related environmental and social consultancies (i.e. Environmental Management Plans (EMP), Resettlement Action Plans (RAPs) and Indigenous Peoples Plan (IPP) if planned). 36. Component 2 ­ Project management capability ($1.6 million) will consist of financing project management related issues. It will support the following activities: (i) consultants to staff the Project Coordination Unit (i.e., a procurement specialist, a financial manager, an internal auditor, an accountant and a backbone expert); (ii) equipments (i.e., financial management system); (iii) various TA (i.e. audits); (iv) small works; (v) training; and (vi) operating expenses. 37. With respect to CAB APL1 countries including CAR, the connectivity component will be financed underAPL1B expected to be approved in April 2010. The financing to be provided for CAR for this subsequent phase is estimated at about $9.9 million (including contingencies). Most connectivity infrastructure will support the deployment of regional backhaul links in the country and across the borders with neighboring countries. 4. Lessons learned and reflected in the project design 38. Different roles for public and private actors in the ICT sector. The CITCAR reflects the need to differentiate the role of the government and the operators and to build strong partnerships with the private sector to develop telecommunications infrastructure. The role of the government is to focus on providing the right incentives for infrastructure and services to reach areas unattractive to the private sector on a purely commercial basis, as well as in cases where large initial sunk-investments are required. The private sector is better placed to invest in, install, manage and maintain ICT infrastructure. Moreover the inclusion of the private sector and profit sharing can bring the following benefits: (i) access to private finance; (ii) reduced operational risk for public sector; (iii) faster delivery of capital projects; (iv) project management skills; and (v) entrepreneurship and innovation. Therefore, the models presented here which involve the sharing of risk between the government and the private companies (PPP) can be defined as an agreement between government and private entities for the purpose of delivering a project or service by sharing the risks and rewards of the venture. The PPP model helps in bridging gaps in quality, speed, and efficiency in the provision of services by the public sector. 5. Alternatives considered and reasons for rejection 39. Focusing on development of applications would be premature. Activities for the development of eGovernment services are eligible for support under the CAB program. However, given the inadequate infrastructure in CAR, the project will include very limited support to the development of applications. 11 40. Cooperative approach is welcome in a resource-constrained environment. The project will promote the development of a collaborative framework to finance and establish a regional and national backbone. An alternative design would have been to finance backbone links under a competitive structure, where each operator would bid separately for the construction of a particular link or group of links. However, the countries targeted have inadequate environment or the market size does not justify multiple backbones outside the main cities. The proposed solution will accelerate the deployment of broadband backbones within CAR and will be used by all operators and service providers (Open Access). C IMPLEMENTATION 1. Institutional and implementation arrangements Institutional and implementation arrangements (see Annex 5). 41. The MPTNT will be responsible for the overall coordination, implementation, and supervision of the project. For each activity concerned, MPTNT, through the Project Coordination Unit (PCU), will consult with and delegate to the relevant agencies and ministries. 42. The implementation arrangements involve three organizational levels: (i) a Project Steering Committee (Comité de Pilotage) will be responsible for providing advice regarding cross-sectoral issues; (ii) the PCU will be responsible for project implementation, coordination of activities and fiduciary management; and (iii) a CAR CAB Technical Committee that will provide technical input for the development of the regional backbone. 43. The MPTNT and the CAR CAB Technical Committee liaise with other CAB participants.12 2. Monitoring and evaluation of outcomes/results 44. Monitoring and evaluation (M&E) of CAB will be embedded in the various components of the project, and TA provided through the project will include support for M&E. The MPTNT and the ART will collect most indicators needed to monitor and evaluate the project (the last indicators are collected by an international organization on a yearly basis). Both national institutions have been collecting the selected indicators for 12 To date CAB APL1 countries have established: (i) an Inter-Ministerial Committee involving sector ministers, (ii) an expert commission involving three representatives from each participating CAB APL1 country, and one representative from the following institutions: the World Bank, the AfDB, the CEMAC, the Economic Community of Central African States (ECCAS) and the International Telecommunications Union; (iii) national technical committees involving representatives from the government, the regulatory agency, the public and private operators and users groups. 12 several years. However, the project will provide support through technical assistance to strengthen their statistical units. 45. Moreover, at the regional level, an IDF grant (CEMAC - strengthening capacity in the telecom & IT sector - IDF Grant P109923) has been processed to strengthen the telecom legal and institutional environment of CEMAC region and improve the telecom and information technology representation/visibility to increase regional telecommunications and Information Technology (IT) investments. The Grant will finance short term TA to adequately monitor regional telecom and IT activities and to develop a common M&E system shared by all CEMAC member states (including CAR). The establishment of this M&E system will (i) increase knowledge transfer between member states and reinforce CEMAC coordination and policy role for the region; (ii) improve sector visibility for the government (as a main growth contributor) and therefore improve sector policy decision to attract additional foreign direct investment. 46. Outcome indicators for CAR related to APL1B (financing of the Connectivity/ infrastructure component defined in the CAB Program) are provided on a indicative basis. Project Development Objective Outcome Indicators Use of outcome information Contribute to increase geographical Volume of international traffic Assess trends in international reach and usage of regional [APL1B]: communications and regional broadband network services and International Communications communications integration reduce their prices (Internet, Telecoms, and Data) bandwidth per person Volume of national traffic using 2 proxies [CITCAR]: Assess level of access to communications services within Internet users per 100 targeted countries inhabitants Total teledensity (active fixed and mobile subscribers per 100 inhabitants) Average price of international Assess competitiveness of communications using the proxy countries with regards to cost of [APL1B]: capacity Average monthly price of wholesale international E1 capacity link from Bangui to European hub (E1) Intermediate Results Results Indicators for Each Use of results monitoring component Component 1: Enabling Environment, including Monitoring & Evaluation capacity-building Sound environment conducive to Price of mobile call and internet Monitor sector competitiveness investment and competition access and efficiency of regulation Average cost of mobile call 13 [three minutes , local, peak] Average monthly price of Internet access (256kbps) Geographic reach of mobile services Monitor efficiency of regulation Coverage of mobile network (percentage of population) 3. Sustainability 47. The component 1 will support the establishment of the CAB PPP environment and structure. APL1B will finance CAB connectivity infrastructure to be implemented through the set PPP. The CITCAR will also stimulate sector development in the country and promote competition. The stimulation of the supply of low-cost wholesale international connectivity will be a major boost to investment and competition in the downstream segments of the market. These benefits thereof will last beyond the end of the project, increasing the sustainability of the project outcome. Component Sustainability Component 1: Enabling environment at the TA is being provided to improve sustainability through regional and national levels capacity building within the Ministry and regulator. 4. Critical risks and possible controversial aspects 48. The table below summarizes the team's assessment of the key risks to the project. Table 2 Risks Assessment and Mitigating Measures Main Risks Initial Mitigating measures Residual Rating Rating Country Level Risks Security situation. H These security risks are exogenous and H their mitigation falls largely outside the Security deterioration is a risk, as scope of the operation. However, recent the government only controls positive developments include the parts of the country, while other deployment of an EU peacekeeping force parts are under rebel control or for Chad and CAR (EUFOR), and the lawless. Regional conflicts in signing of a comprehensive peace Chad, Sudan and DRC may have agreement between the government and spill-over effects on CAR. some of the rebels. An inclusive dialogue is in place to reinforce the peace agreement. Macro-economic framework H The current macroeconomic program aims M at strengthening debt and fiscal Further deterioration in the sustainability, and reducing the impact of external financial environment energy and social tensions on the and/or increased domestic social population. This project will contribute to pressures for improved public consolidate peace in the country, to rebuild 14 service delivery (in particular in trust within the citizens by providing the social and energy sectors) tangible results (investment in public could jeopardize the medium term infrastructure and improved service macro-economic program as well delivery) that benefit the main cities but as CAR's ability to remain current also rural areas of the country. The recent on debt servicing with MDBs. HPIC completion highlights the progress made by the government. Political situation M This operation to some extent mitigates this M risk as it will restore the trust between The recent history of political citizens and the government at the nation. instability and its post-conflict status leave CAR highly vulnerable to internal political instability. Public discontent is likely to be exacerbated by the current social situation, the electricity/ energy crisis as well as high oil and food prices. Operation-specific Risks Problem to access International H M Submarine cable (SAT3) at The regional approach will enable the competitive prices. regional operator to bundle all national traffic and negotiate at much higher The feasibility study has already discount international capacity price. included a "price-cap" on potential capacity price to access Also, the CAB network is planned to SAT3 in Cameroon (only connect additional third countries with international route at that time for international broadband access (like the basic configuration). . Finally, Cameroon) to increase competition and the process has been anchored in a even further reduce international capacity very high level political process tariffs (new West-Africa undersea (Declaration from the heads of international cables are supposed to be state of the CEMAC region) to operational in 2010 ­ WASC and Glo-1). avoid / reduce risk of an Political and technical discussions have opportunistic decision affecting started to connect Nigeria (access to SAT3, the project as a whole. Glo-1), Sudan (access via the Red Sea to SEA-ME-WE 3&4), Republic of Congo (WASC) and Democratic Republic of Congo (access via the Rwanda or Burundi Broadband cable to access EASSy, TEAMS, SEACOM or WASC). Inadequate coordination could S Following the adoption by heads of state of M delay project implementation the CEMAC Region of the Declaration for the establishment of the CAB Program, the telecoms sector Ministries have set-up working groups at the national and regional levels to oversee project planning and implementation. Working groups include stakeholders from the government, regulatory agencies, public and private operators, user groups and Donors (WB and AfDB). During Program preparation, the World Bank and AfDB identified activities to be financed by each stakeholder. The World 15 Bank is focusing on the core/main routes mitigating the overall implementation risk if AfDB financing is delayed or canceled. Also, the Commission of the AU is providing a strong political support to the CAB program as it is seen as a key regional project for Africa. Inadequate implementation M While there are high demands and interests L capacity and readiness could from participant countries, and from delay project implementation regional coordination body (CEMAC), the implementation capacity and readiness itself may cause a serious delay of project implementation. Key principles and implementation arrangements both at national and regional levels have been established ahead of Board approval. A PPF has been launched in CAR to reinforce key stakeholders ahead of the project Board approval. Inadequate financing S A feasibility study has been carried out to M quantify risks and required public and private financing for the CAB basic configuration infrastructure requirements. Due to the ongoing financial and economic crisis, it may be more difficult to raise private financing for the CAB Program (most infrastructures are financed and managed under a PPP scheme). For the time being however, investment in the telecommunications sector continues to remains strong13. Also, structuring the CAB Phase1 as a vertical APL will mitigate this rsk since the Public financing could be adjusted to match the requirements and parts not funded by the private sector. Governance issues with regards to S While the participation of enterprises with M build out of infrastructure where poor efficiency records in the roll-out of the SOE coexist with private infrastructure may not be desirable, it operators cannot be completely avoided, especially in countries where the telecommunications market is not open to competition. Hence, the project will provide funds to promote liberalization, restructuring and 13 For the time being, however, investment in the telecommunications sector continues to remain strong. The investment and legal advisers will test the market before finalizing/freezing the overall structure to ensure private sector adoption and adequate financing. IFC in collaboration with the World Bank will provide support to the CEMAC Commission and CAB APL1 countries to ensure adequate final structuring (feasibility and attractivity of the transaction) while ensuring long term economic viability and adequate return for potential investors. IFC could also consider mobilizing funding. 16 privatization of public telecommunications incumbents Risk Rating: H = High, S = Substantial, M = Moderate, N = Negligible. 5. Grant conditions and covenants 49. Conditions for project effectiveness (a) Establishment of the CAB National Committee with functions, members and resources satisfactory to IDA; (b) Recruitment of an accountant and an internal auditor; (c) Install a computerized financial management system in a manner satisfactory to IDA; (d) Adoption of a sound Project Implementation Manual (PIM) acceptable to IDA. 50. Dated covenant: (a) Recruit independent external auditors acceptable to IDA not later than four months after effectiveness. D APPRAISAL SUMMARY 1. Economic and financial analysis 51. The benefits accrued in the targeted countries (i.e., increased access to quality and affordable ICT services) spill over country boundaries as: (i) higher volumes increase the viability of the regional communications infrastructure network, decrease cost of access and increase trade between African countries and (ii) cross-border initiatives provide countries with the incentives to develop missing infrastructure to increase ICT access. Indeed, the implementation of the CAB Program will have a transformational impact on regional connectivity which will impact regional trade and overall economic integration of the participating CAB countries. 52. A detailed traffic study and a financial model have been developed by International consultants for CAB APL1 countries and Nigeria. Results from the study shows that traffic will expand significantly due to the growth of mobile operators and the development of the Internet market (i.e. International bandwidth in CAR will increase from 7 Mbps in 2006, to 83 Mbps in 2011, to 143 Mbps in 2016) . The CAB network will carry a significant portion of this traffic (especially for landlocked countries using exclusively satellites). 17 53. The opportunity cost in Cameroon, CAR and Chad calculated to measure economies from the cost of providing bandwidth relying on satellite connection as opposed to CAB Network until 2021 is estimated at $117 million (discount rate of 13 percent and average annual decrease of satellite connection of 8 percent). 54. The economic impact in Cameroon, CAR and Chad on a 10 year model is estimated at $94 million out of which $76 million as consumer surplus and $18 million as producer surplus. 55. Based on the financial projections and taking into account the existing public- private structure, it is expected that CAB network could generate a positive net income in the first twelve months of operations. 2. Technical 56. The design and ownership structure of the PPP to be established based on ongoing technical assistance provided at Regional-level and the technical assistance to be provided under the CITCAR will be consistent with international best-practices. The CAB Program, APL1A and CITCAR will (i) maximize the use of private financing (or minimize the use of public financing); (ii) ensure feasibility and attractiveness of the transaction; and (iii) secure Open Access to regional connectivity infrastructure and ensure competitive, reasonable tariff of international, regional and national capacity. 3. Fiduciary 57. Financial Management. CAR is a conflict-affected country with a weak PFM system which cannot be used directly to implement the proposed project (CITCAR). Two Bank studies were recently undertaken (CFAA in 2007 and PEFA in 2008) and concluded that public financial management was weak and lacked capacity in budgeting, accounting, reporting, debt management, auditing and internal control systems. As of December 2008, the country risk is high. 58. A PCU has been set up within MPTNT with full fiduciary responsibility to manage the project. A financial manager has been hired on a competitive basis. Currently the PCU does not have any FM system in place to manage the project. Hence the overall FM risk is High at this point in time but the residual risk would be Moderate provided the action plan provided in Annex 6 is implemented satisfactorily. 59. Disbursement: One Designated Account in CFAF will be opened in a commercial bank and managed by PCU under the responsibility of the Project Coordinator and the financial manager. Upon effectiveness, the DA will receive an initial deposit equivalent to four month expenditures forecast and replenished regularly on a monthly basis against statements of expenditures (SOE) through Withdrawal Applications cleared by the Internal Auditor. Direct payment may be used whenever appropriate for payments of expenditures equivalent to 20 percent or more of the DA. At the beginning, the transactions-based disbursement method will apply. In the second FY, 18 the project may to shift to the report-based disbursement method if satisfactory Interim Financial Reports (IFRs) and audit reports are submitted in a timely manner and the project sustains satisfactory financial management rating. 60. The grant will finance 100% of eligible expenditures inclusive of taxes with the exception of the Value Added Tax (VAT). 61. Procurement. The PCU of the MPTNT will be responsible for the administration, coordination, monitoring of the Project, and procurement activities including compliance with procurement procedures. The PCU is managed a coordinator appointed by the Government, a financial manager, a procurement specialist, an internal auditor and, an accountant, all to be recruited on a competitive basis14. 62. A PIM including the financial administrative arrangements with a detailed section on procurement is currently drafted and outlines, among others, the procurement arrangement and the relevant procedures applicable to the management of the grant. 63. Procurement corrective measures have been identified and an action plan has been defined with tasks to be performed, responsible body as well as time-frame (see annex 7). 64. Procurement risk. The overall project risk for procurement is substantial because, among other factors, there was no previous Bank operation with this ministry and the PCU with procurement responsibility, which is been set up and staffed, is a completely new entity and is not familiar with procurement processes. Although procurement risk rating is presently substantial, the above well designed action plan with mitigation measures to be implemented and appropriate monitoring will reasonably bring this risk to moderate. 65. Guidelines: All international competitive bidding (ICB) and selection of consultants will be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004 and revised in October 2006; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 and revised in October 2006, and the provisions stipulated in the Financing Agreement. 4. Safeguard policies 66. Category B rating. The APL1A (including CITCAR) has a Category B rating. Activities financed under CITCAR are fully consistent with the set of activities eligible for financing under the CAB Program. 67. The physical components of the CAB Program in CAR (to be financed under APL1B) will mostly be limited to the establishment of the regional backbone which consists of terrestrial networks (e.g. fiber-optic cables laid next to main national roads). 14 The financial manager and the procurement specialist are already recruited. 19 The risk associated with the kind of infrastructure financed under this Program is low, and the project is therefore assigned to environmental category B under OP 4.01. 68. The ESMF and the RPF have been prepared, reviewed and approved by the Bank and publicly disclosed prior to appraisal in CAR. They are available at the InfoShop. 69. Specific costed Environmental Management Plans (EMP) and Resettlement Action Plans (RAPs) will be prepared as necessary for the terrestrial facilities during project implementation, in line with the ESMF and RPF, once the exact locations of those facilities have been identified. The institutional responsibilities for preparing the various safeguards instruments would lie with the implementing agency. These agencies will be assisted by consultants financed by the project. Any specific required action for some of the Civil Works will be taken into account during project implementation. 70. Since CAB APL 1 (APL1A and APL1B) in CAR will only finance fiber-optic cables laid next to main national roads (no rural networks and landing stations will be financed), OP 4.10 for indigenous peoples, OP 4.36 for Forests and OP 4.11 for Cultural Property will not be triggered. The CITCAR will not finance any fiber-optic cable/ backbone infrastructure (it will be funded under APL1B expected to be presented for Board approval in April 2010). Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP/GP 4.01) [x] [] Natural Habitats (OP/BP 4.04) [] [x] Pest Management (OP 4.09) [] [x] Cultural Property (OPN 11.03, being revised as OP 4.11) [] [x] Involuntary Resettlement (OP/BP 4.12) [x] [] Indigenous Peoples (OD 4.20, being revised as OP 4.10) [] [x] Forests (OP/BP 4.36) [] [x] Safety of Dams (OP/BP 4.37) [] [x] Projects in Disputed Areas (OP/BP/GP 7.60)* [] [x] Projects on International Waterways (OP/BP/GP 7.50) [] [x] 5. Policy Exceptions and Readiness 71. The Project does not require any exception to the Bank policies. * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas 20 Annex 1: Major Related Projects Financed by the Bank and/or Other Agencies Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) Project Latest Supervision Ratings (Bank-financed projects only) World Bank/IDA Financed Implementation Development Progress (IP) Objective (DO) CEMAC ­ Transport Transit facilitation Project (P079736). The development objectives are to enhance regional trade and integration and sub-regional cooperation between CEMAC and ECCAS member states, and specifically provide the landlocked countries (CAR and Chad) with a better MS MS access to the Port of Douala through: (i) assistance to the strengthening of the CEMAC Customs Union; and (ii) improvement of the logistics chain, including road and rail infrastructure to the Port of Douala's hinterland. CAR - Economic Management and Governance Reform Grant (P106458). This one-tranche development policy operation supports two main policy areas: S S (i) strengthening public finance management; and (ii) improving public sector and economic governance. CAR - Support to Vulnerable Groups Community Development Project (P11679) ­ Pipeline. The Community Development Project aims to rehabilitate social infrastructure and improve the capacity of local stakeholders to plan and manage local recovery in targeted areas of CAR. Regional Communications Infrastructure Program, Phase I (RCIP I) (P094103): Madagascar ($30 million), Kenya ($114.4 million) and Burundi (IDA Grant $20.1 million). The development objectives (i) to contribute to lower prices for international capacity and extend the geographic reach of MS MS broadband networks (the "connectivity development objective") and (ii) contribute to improved Government efficiency and transparency through eGovernment applications (the "transparency development objective"). IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) 21 Annex 2: Results Framework and Monitoring Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) 1. M&E of CITCAR will be embedded in the various components of the project, and TA provided through the project will include support for M&E. Outcome indicators for CAR related to APL1B (financing of the Connectivity/ infrastructure component defined in the CAB Program) are provided on a indicative basis. Project Development Objective Outcome Indicators Use of outcome information Contribute to increase geographical Volume of international traffic Assess trends in international reach and usage of regional [APL1B] communications and regional broadband network services and International Communications communications integration reduce their prices (Internet, Telecoms, and Data) bandwidth per person Volume of national traffic using 2 Assess level of access to proxies [CITCAR]: communications services within Internet users per 100 targeted countries inhabitants. Total teledensity (active fixed and mobile subscribers per 100 inhabitants) Assess competitiveness of Average price of international countries with regards to cost of communications using the proxy capacity [APL1B] : Average monthly price of wholesale international E1 capacity link from Bangui to European hub (E1). 22 Intermediate Results Results Indicators for Each Use of results monitoring component Component 1: Enabling Environment, including Monitoring & Evaluation capacity-building Sound environment conducive to Price of mobile call and Internet Monitor sector competitiveness investment and competition access: and efficiency of regulation Average cost of mobile call [three minutes, local, peak] Average monthly price of Internet access (256kbps) Geographic reach of mobile services Monitor efficiency of regulation Coverage of mobile network (percentage of population) Arrangements for results monitoring at country level (CAR) Target Values Data collection and reporting Data Responsibility Baseline Frequency YR1 YR2 YR3 YR4 YR5 collection and Data (2008) and reports instrument Collection OUTCOME INDICATORS International Agence de [indicator Internet/Communic Régulation des 0.37 1.0 1.5 2.0 2.5 3.0 yearly available at ations Bandwidth Télécommunic ITU] (bits per person) ations Agence de [indicator Internet users per 0.30 Régulation des 0.4 0.7 1.0 1.3 1.6 yearly available at 100 inhabitants (2006) Télécommunic ITU] ations Total teledensity Agence de (active fixed and [indicator Régulation des mobile subscribers 8 12 16 20 24 27 yearly available at Télécommunic per 100 ITU] ations inhabitants) 23 Average monthly price of wholesale Agence de international Régulation des 7000 6000 4500 3500 3000 2500 yearly Survey capacity link Télécommunica from Bangui to tions European hub (E1) in $ Component 1 Enabling Environment Average cost of Agence de [indicator mobile call (3 0.57 Régulation des 0.57 0.55 0.53 0.51 0.49 yearly available at minutes, local, (2006) Télécommunica ITU] peak) ($) tions Average monthly Agence de price of 256 kbps 425 Régulation des 325 250 175 125 100 yearly broadband (2009) Télécommunica connection ($) tions Agence de Coverage of [indicator Régulation des mobile network 19.3. 25 32.5 40 45 47.5 yearly available at Télécommunica (% of population) ITU] tions 24 Annex 3: Detailed Project Description Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) 1. This section provides a description of the components and activities for the CITCAR. 2. Component 1 ­ Enabling environment ($5.7 million) will provide support to: (i) strengthen the policy, legal, regulatory environment and institutional in CAR, (ii) support further regional market integration, (iii) strengthen key public institutions (MPTNT, ART, HCC and SOCATEL) and (iv) promote further sector reforms so as to maximize benefits from access to the regional backbone. · Modernize the policy, legal, regulatory and institutional framework of the ICT sector in CAR to accelerate sector growth and ICT development. The project will finance activities such as (i) (i) TA to modernize and harmonize the legal and regulatory framework for Electronic Communications Services and (ii) TA to develop ICT legislation and institutional framework (e.g. Digital signature, eCommerce, Intellectual Property Rights, Data Privacy). · Strengthen capacity of key public stakeholders (MPTNT and ART) to promote further sector reform so as to maximize benefits from access to capacity and include in particular the following activities: (i) TA to develop regulatory tools (i.e., interconnection/tariffs, networks monitoring, Open Access); (ii) TA to increase ICT Access in remote areas; (iii) TA to review spectrum management framework in CAR and prepare bidding documents for the acquisition of a spectrum management and monitoring system; (iv) training/ capacity building; and (iv) equipments (i.e., spectrum management and monitoring system, information systems). · Promote a pro-competitive environment and restructuring options for incumbent operators to maximize the benefits from the regional network. the following activities will be financed: (i) TA to liberalize further the sector; (ii) TA to promote and establish PPP to deploy the CAB; and (iii) TA to define and implement the restructuring options, and privatize incumbent operators. · Establish Internet Exchange Points (IXPs) to complement the other investments that the government and the private-sector are undertaking to boost connectivity and the capacity of the regional backbone network. The project will finance the following activities: (i) TA to design the establishment of a National and Regional IXPs and (ii) equipments for the National and Regional IXPs. · Launch structuring and start-up consultancies required for the establishment of CAB networks including CAB-related environmental and social consultancies (i.e. Environmental Management Plans (EMP), Resettlement Action Plans (RAPs) and Indigenous Peoples Plan (IPP) if planned). 25 3. Component 2 - Project management capability ($1.6 million). The project will be primarily executed by MPTNT. A small experienced project management team is established within the MPTNT. This component will consist in financing project management related issues. It will support the following activities: (i) consultant to staff the PCU (i.e., a procurement specialist, a financial manager, an internal auditor, an accountant, a backbone expert); (ii) equipments (i.e., financial management system); (iii) various TA (i.e. audits); (iv) small works; (v) training and; (vi) operating expenses. 26 Annex 4: Project Costs Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) Components Activities Amount Provision and establishment of secondary legislation 100,000 Technical assistance to design frequency spectrum management regulatory tools and prepare bidding documents for the purchase of 170,000 spectrum management and monitoring equipments Purchase and set up of the spectrum management and monitoring 1,100,000 equipments Technical assistance to implement universal access in remote areas 200,000 ICT Fiscal study 90,000 Capacity Strengthening ART (technical assistance, training) - Component 1 - Design and set up of operational regulatory tools (interconnexion, 550,000 Enabling price control mechanisms, cost-modeling....) Environment at the Regional and Capacity strengtehning of the Ministry of Post, telecommunications 500,000 National Level and New Technologies (Technical assistance and training) Study for the auditing of Socatel and the incumbent operators - 220,000 Restructuring Options and recommendations Environmental Management Plan Study 150,000 Study and establishment of an Internet eXchange Point 200,000 Technical assistance to support the implementation of the 1,500,000 restructuring of incumbent operators Technical Assistance to support roll out of CAB in CAR 800,000 Capacity strengtehning of the HCC ( Haut Conseil de la 100,000 Communication) TOTAL Component 5,680,000 1 Establishment of the PCU 150,000 Component 2 - Project Coordination Unit - Staff/Consultants, equipments, civil works 1,350,000 Project and operating costs Management Budget for the CE and CMP (Travels) 50,000 National backbone expert Recruitment 70,000 TOTAL Component 2 1,620,000 Total national 7,300,000 Out of which Project Preparation Facility 820,000 27 Annex 5: Implementation Arrangements Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) 1. MPTNT will be responsible for the overall coordination, implementation, and supervision of the project. For each activity concerned, MPTNT, through the PCU,, will consult with and delegate to the relevant agencies and ministries. 2. The implementation arrangements involve three organizational levels: (i) a Project Steering Committee (Comité de Pilotage) will be responsible for providing advice regarding cross-sectoral issues; (ii) the PCU will be responsible for project implementation, coordination of activities and fiduciary management; and (iii) a CITCAR Technical Committee that will provide technical input for the development of the regional backbone. 3. The figure below identifies these agencies and ministries, as well as other entities not concerned with the carrying out of the project, but whose responsibilities are related to its objectives and/or implementation. Implementation Arrangements for CIT2 in CAR MPTNT CAR Project CAB Technical Steering Committee Committee Advice/ Including MPTNT, Direction/ Project Coordination Oversight Unit (PCU) Support Ministry of Finance, Including MPTNT, Project manager Ministry of Planning Backbone Specialist ART, Public and Economy and Procurement Specialist private operators, International Fin. Management Specialist user groups Coorperation Support Technical inputs ... MPTNT ART SOCATEL HCC Note: CIT2 refers to CITCAR. 4. The PCU: Day to day project implementation, coordination of activities and fiduciary management of the project will be done by the PCU anchored in the MPTNT and financed through the project. The PCU, in close collaboration with the technical 28 team from MPTNT, will be responsible for: (i) oversight of all technical, social, and environmental matters relating to Project implementation; (ii) planning of Project activities and preparation of Project annual work programs; (iii) monitoring and evaluation of Project activities including quality insurance; (iv) financial management, procurement, and audits under the Project; and (v) monitoring of implementation of the National ICT Policy. The PCU will also provide TA support to the Ministry by monitoring progress towards the government strategy on ICT. The PCU will be staffed with at least (i) a Project Coordinator (already in place); (ii) a technical expert on Backbone issues; (iii) a procurement specialist; and (iv) a financial manager; (v) an accountant; and (vi) an internal auditor. An environmental specialist will also be available, depending on the needs identified in detailed environmental assessments. These experts will be financed by the project through performance based contracts linked to evaluation results acceptable to IDA. The PCU will be housed in MPTNT to facilitate knowledge transfer and strengthen capacity at Ministry level. 5. A Project Steering Committee (Comité de Pilotage) will be established and will be in charge of ensuring the consistency and smooth execution of the project. It will meet at least twice a year. Placed under the MPTNT (or his representative), it will comprise at least of representatives of the Ministry of Finance and the Ministry of Economy, Planning and International Cooperation and of the participating agencies and ministries, as well as the Project Coordinator. The Steering Committee will provide advice on coordination of cross-sectoral interventions and ensure consistency of ICT activities carried out by different agencies/ institutions. 6. The CITCAR Technical Committee has been established to provide technical inputs from all key stakeholders from the sector on issues related to the establishment of the CAB network. All technical studies conducted at national and regional level have and will benefit from their support. Other institutional strategic elements 7. Project Implementation Manuel (PIM): The PIM includes all procedures and areas of M&E, coordination and implementation, financial management (including financial, administrative, accounting and procurement, internal controls and audits). The PIM describes the diverse roles, responsibilities, and individual work programs of each participating agency (including the timetable that shall be respected to ensure the success of the project). Technical implementation of project activities shall be delegated to the participating agencies and ministries 8. World Bank supervision: The Bank will conduct a minimum of two supervision missions per year during project implementation, including an annual progress review. A midterm review will be conducted, which will encompass: (i) a thorough review of the 29 execution of the project and the achievement of project objectives to date; and (ii) agreement between the Bank and the Borrower on recommended measures to ensure efficient execution of the project and successful achievement of project objectives in the period after the review, all in accordance with agreed performance indicators. The Borrower will provide the Bank a project completion report within six months of loan closing and inputs to the Implementation Completion Report to be prepared by the Bank. The Bank will support public dissemination of project information, including supervision reports on the project's performance. 30 Annex 6: Financial Management and Disbursement Arrangements Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) Country issues 1. CAR endured a long period of civil unrest characterized by the destruction of infrastructure and equipment, and the absence of investments. Two Bank studies were recently undertaken: a CFAA (2007) and a PEFA (2008). Although the Government of CAR has not yet endorsed the conclusions of the PEFA, the latter is in line with the CFAA. The two studies concluded that public financial management was weak and lacked capacity in budgeting, accounting, reporting, debt management, auditing and internal control systems. As of December 2008, the country risk is high. Risk assessment and mitigation 2. The following risk identification worksheet summarizes the significant risks with the corresponding mitigating measures. Risk Risk Risk Mitigation Measures Residual Risk Rating Inherent Risk Country level H H According to questions None. Beyond the control of the 13 and 16 of the CPIA, project. the country is high risk on fiduciary management Entity level S A ring-fenced PCU will be set M The MPTNT lacks the up inside the MPTNT to manage capacity to manage the project in accordance with fiduciary aspects of IDA fiduciary requirements. the project Project level H Adequate Financial Management M The PCU is yet to be (FM) arrangements agreed upon set up and will be implemented as detailed below. Overall Inherent risk S M Control Risk Budgeting H Adopt budgeting procedures and M Possibility of annual budgets derived from the committing work plans. Budget execution expenditures outside and monitoring to be closely 31 the budget. No monitored. variance analysis. Accounting H A computerized accounting M There is no accounting system will be set up and system in place; delay maintained by a qualified in keeping reliable and accountant under the auditable accounting supervision of Financial records. manager Internal control H Sound financial and M Insufficient safeguards administrative procedures will and controls may be put in place and documented result in misuse of in a manual of procedures. An funds and impede the internal auditor will be appointed execution of the to ensure full adherence to the project. procedures Funds flow and H FM/disbursement training and M financial reporting implementation support will be The lack of exposure provided to PCU in order to be in WB disbursement acquainted with Bank's procedures may cause procedures. delay (i) in disbursement and ineligible expenditures; (ii) in submitting the reports. Auditing H An independent external audit M No auditing firm acceptable to IDA will be arrangement in place; recruited to perform the audit in the national audit accordance with IAS. capacity is weak and not reliable. Fraud and corruption H Anti-corruption provisions will M be included in the Private Public Partnership arrangements for infrastructure operations. Besides the proposed fiduciary arrangements are strong anti- corruption deterrents and will be all closely monitored by the project team altogether. Overall control risk H M Overall risk rating H M 32 3. Strengths: the project design is very simple in essence. The CITCAR will be implemented by a PCU under the oversight of the MPTNT. Ultimately the same PCU will manage AfDB financing - once effective - by building on the proposed fiduciary arrangements. A Financial manager has been hired on competitive basis. 4. Weaknesses and Action Plan: The financial management system is not yet in place yet (including customization and training). A draft PIM has been prepared but is not yet finalized (includes accounting, FM, auditing arrangements and procedures). Implementing entity 5. A PCU has been set up within MPTNT to manage the CITCAR. The PCU already includes a coordinator (nominated), and will include financial manager, a procurement specialist, an internal auditor and, an accountant, all recruited on a competitive basis15. Budgeting 6. The activities and the breakdown of cost to be financed under the CITCAR have been identified. Annual work plans to be approved by the Steering Committee will clearly detail the activities and will be translated into annual budgets. The PCU will monitor its execution with the integrated financial software, in accordance the budgeting procedures specified in the manual of procedures, and will report on variances along with the quarterly Interim Financial Monitoring Reports (IFRs). Basically, the PCU will prepare the overall budgets on an annual basis. The budgeting system needs to forecast the origin and use of funds under the project for each fiscal year. Only budgeted expenditures would be committed and incurred so as to ensure resources are used within the agreed upon allocations and for the intended purposes. Accounting policies and procedures 7. CAR is a member of OHADA organization, hence adheres to OHADA accounting standards, so-called Syscohada, which are in line with the international accounting standards. Hence Syscohada accounting standards will apply to this project. A specific chart of accounts will be developed and documented in the manual of procedures. A computerized accounting system is being purchased and will be customized to record the PPF and the project's transactions and generate accurate financial reports in time. Internal control and auditing: 8. Internal controls are yet to be put in place. The will comprise the whole systems of control, financial or otherwise, established by management in order to (a) carry out the 15 To date only the Procurement specialist and the financial manager have been hired 33 project activities in an orderly and efficient manner; (b) ensure adherence to policies and procedures; and (c) safeguard the assets of the project and secure as far as possible the completeness and accuracy of the financial and other records. A PIM will document the internal controls with a specific focus on the following: (i) segregation of duties; (ii) physical control of assets; (iii) authorization and approval; (iv) clear channels of command; (vi) arithmetic and accounting accuracy; (vii) integrity and performance of staff at all levels; and (viii) supervision. 9. An internal auditor acceptable to IDA will be competitively selected and appointed to ensure full adherence to the procedures, pre-screen and clear all payments to ensure they are supported by the following reliable evidences: (i) expenditures are budgeted; (ii) the service is rendered according to the contract and (iii) the payment is within the available budget allocation. Besides, the PCU will coordinate with the "Inspection Générale des Finances" -IGF- to include this project in their annual audit program and review it at least once a year. IGF audit report shall be communicated to the PCU and the World Bank supervision missions. Financial Reporting: 10. The PCU is responsible of recording and reporting on all project transactions. The financial manager located at the PCU will consolidate information and submit to the World Bank an IFR on a quarterly basis and not later than 45 days after the end of each calendar quarter. The IFR must include the following tables, with appropriate comments; (i) Sources and Uses of Funds; (ii) Uses of Funds by Project Activity/Component; and (iii) Special account activity statement 11. At the end of each fiscal year, the project will issue the Project's Financial Statements (PFS) comprising: (i) a balance sheet; (ii) a statement of sources and uses of funds; (iii) accounting policies and procedures; and (iv) an explanatory notes. These PFS will be subject to annual external audits as described below. External audit: 12. The project annual financial statements will be audited by qualified external auditors yet to be appointed. The audit reports comprising the audited financial statements, a single audit opinion and a management letter will be submitted to IDA not later than 6 months within the end of each fiscal year. These audits will be carried out in accordance with the International Standards on Auditing (ISA). The audit TOR and appointment of the external auditors will be agreed upon within 4 months after effectiveness. The tentative due dates of the audit report will be as follow: 34 Fiscal Year Scope and Period covered Due date 2010 PPF and PFS : Sept 2009 ­ Dec.2010 June 30, 2011 2011 PFS: January to December 2011 June 30, 2012 2012 PFS: January to December 2012 June 30, 2013 2013 PFS: January to December 2013 June 30, 2014 2014 PFS: January to December 2014 June 30, 2015 Disbursement arrangements and flow of funds 13. Flow of funds: One Designated Account in CFAF will be opened in a commercial bank and managed by the PCU under the responsibility of the Project coordinator and the financial manager. Upon effectiveness, the DA will receive an initial deposit equivalent to four month expenditures forecast and will be replenished regularly through monthly Withdrawal Applications cleared by the Internal Auditor. 14. One DAs in CFAF (local currency) will be opened in local commercial Bank acceptable to IDA with a ceiling of CFAF 186 million. This DA will be managed by the PCU in terms of ensuring fiduciary standards and accordance with Bank FM guidelines. 15. No replenishment of the accounts will occur until the previous expenditures made out of the process of the previous allocation have been properly documented. Allocation of Grant Proceeds: 16. The World Bank will issue a "Disbursement Letter" which will specify the additional instructions for withdrawal of the proceeds of the Grant. The following table shows the allocation of the proceeds of the Grant by disbursement category. 35 Allocation of the Grant Proceeds Category Amount of the Grant Percentage of Allocated Expenditures to be (expressed in US$) Financed (inclusive of taxes with the exception of VAT) (1) Small Works, Goods, Consultants' Services 6,480,000 100% including audits, Training, Non-Consulting Services and Operating Costs for Components 1 and 2 of the Project (2) Refund of Preparation Advance 820,000 100% or Amount payable pursuant to Section 2.07 of the General Conditions TOTAL AMOUNT 7,300,000 Disbursement Methods: 17. Given the high risk environment and the lack of familiarity with the Bank fiduciary procedures by the project staff, the report-based disbursement may not be applicable by default. Thus the transaction-based disbursement method will apply at the beginning. Once the PCU demonstrates its ability to submit reliable quarterly IFRs, the project may shift to the report-based method in the second year if it sustains a satisfactory FM rating. Other disbursement methods such as reimbursement, direct payment and special commitment may be applicable. The minimum value for Reimbursement, Direct Payment and Special Commitment will be 20 percent of the DA ceiling. Types of Supporting Documentation 18. The Bank requires either copies of the original documents evidencing eligible expenditures ("Records") or summary reports of expenditure ("Summary Reports"). Disbursements will be supported by (i) Statement of Expenditures (SOE) summarizing eligible expenditures paid during a stated period for amounts below the SOE documentation threshold specified in the Disbursement Letter and (ii) records evidencing eligible expenditures (e.g. copies of receipts, supplier invoices). In all cases, the PCU will be responsible for retaining the original documents evidencing eligible expenditures and making them available for audit or inspection. Taxes: in line with Country Financing Parameters, the grant will finance 100% of eligible expenditures including taxes with the exception of the Value Added Tax (VAT) at the Recipient's request and as the financing of VAT would consume a significant share of projects costs. 36 Financial covenants 19. Financial covenants are the standard ones, as described in the legal documents, and are comprised of maintaining project accounts in accordance with sound accounting practices, audit requirements and records well kept and secured. Conclusion and Supervision Plan 20. Currently the PCU does not have any FM system in place to manage the project. Hence the overall FM risk is High at this point in time but the residual risk would be Moderate provided the action plan below is implemented satisfactorily. On that basis and in accordance with the risk-based approach, one (1) supervision mission will be carried out in the first year once an acceptable FM system is effective at the PCU. Action Plan Actions Completed by Responsible 1. Appoint an accountant and an Prior to effectiveness PCU Internal Auditor all acceptable to IDA 2. Install a computerized Prior to effectiveness PCU accounting system 3. Develop and adopt a Project Prior to effectiveness PCU Implementation Manual acceptable to IDA; 4. Appoint external auditors Within 4 months after PCU acceptable to IDA. effectiveness 37 Annex 7: Procurement Arrangements Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) A. General Procurement Environment 1. With IDA financial support, CAR has undertaken a reform of its procurement system that led in June 2008 to the promulgation of a law on public procurement and concession of public services. Although promulgated, this law is not yet enforced because the application decrees are not yet ready. The 1961 law is still therefore in effect. This system is characterized by: a. centralization ­ whereby all bids are issued by the Commission Nationale des Marchés chaired by the Minister of Finance and contracts are awarded by the Commission Nationale d'Attribution des Marchés de l'Etat chaired by an advisor at the Presidency; and b. slow processing in all phases of the procurement process (bid opening, analysis, approval and signing). Bids take as much as five months and sometimes more before they are opened. The decision to award contracts may itself take quite a long time. The consequences have been poor disbursement performance on all projects under implementation in the country. 2. Based on the current situation, it has been decided to establish a procurement commission dedicated to the Project and established by a decision by the Prime Minister. Guidelines Procurement for this project would be carried out in accordance with the World Bank "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004 and revised in October 2006; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 and revised in October 2006, and the provisions stipulated in the Development Grant Agreement. The general description of various items under different expenditure category is described below. For each contract to be financed by the Grant, the different procurement (small works, goods and non-consulting services) methods or consultant selection methods, prequalification, estimated costs, prior review requirements, and time-frame would be agreed between the Recipient and the Bank Task Team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. To the extent practicable The Bank's Standard Bidding Documents for goods and Standard Requests for Proposals for Proposals as well as all standard evaluation forms would be used throughout project implementation. 38 Publicity 3. A comprehensive General Procurement Notice (GPN) will be prepared by the Borrower and published in the United Nations Development Business online (UNDB online) and in the Development Gateway Market (dgMarket) following Board Approval, to announce major consulting assignments and any ICB16. The GPN shall include all ICB for goods contracts and all large consulting contracts (i.e., those estimated to cost $200,000 or more). In addition, a specific procurement notice is required for all goods to be procured under ICB in dgMarket and UNDB online. Requests for expressions of interest for consulting services expected to cost more than $200,000 shall be advertised in UNDB online and in dgMarket. An Expression of Interest (EOI) is required in the national gazette or a national newspaper or in an electronic portal of free access for all consulting firm services regardless of the contract amount. In the case of NCB17, a specific procurement notice will be published in the national gazette or a national newspaper or an electronic portal of free access. Contracts awards will also be published in UNDB and dgMarket, in accordance with the Bank's Procurement Guidelines (para. 2.60) and Consultants Guidelines (para. 2.28). Works 4. No major works are foreseen under this project. Small works estimated to cost less than $100,000 equivalent per contract may be procured through shopping, based on price quotation obtained from at least three contractors in response to a written invitation to qualified contractors. Goods 5. Goods procured under this Project would include vehicles, furniture and office equipment. Taking into account (level of value added) manufactured/producers capacity in the country, procurement of goods will be bulked where feasible (similar nature and need at same time period) into bid packages of at least $500,000 valued, so that they can be procured through suitable methods to secure competitive prices. The procurement will be done using the Bank's SBD for all ICB. Goods estimated to cost $500,000 equivalent and above per contract will be procured through ICB. For any others goods contracts cost less than $500,000 equivalent, NCB procurement method in accordance with national procedures can be used using Standard Bidding Document acceptable to the Bank. Procurement of readily available off-the-shelf goods that cannot be grouped into bid packages of $100,000 or more may be procured through shopping in conformity with the clause 3.5 of the procurement guidelines. At the beginning of the project implementation, vehicles whose cost is estimated at less than $100 000 could be procured through UNOPS or quotation. Procurement of non-consulting services 6. Non-Consulting services under this project include maintenance of the office electronic equipment and other services such as printing, and editing. Non-Consulting services are likely not to exceed the equivalent o f $100,000 per contract. Procurement of 16 ICB: International Competitive Bidding 17 NCB: National Competitive Bidding 39 such services will be done using prudent shopping procedures in conformity with the clause 3.5 of the procurement guidelines. Selection of consultants 7. Consulting services will be needed for the following activities: (i) technical assistance, (ii) feasibility studies and any other critical studies, (iii) technical and financial audit; environmental and social studies, etc.. These consulting services will be procured with the most appropriate method among the following which are allowed by Bank guidelines and included in the approved procurement plan: Quality-and Cost-Based Selection (QCBS), Quality-Based Selection (QBS), Selection under a Fixed Budget (SFB), Least-Cost Selection (LCS). Selection Based on Consultants' Qualifications (CQ) will be used for assignments that shall not exceed $200,000. Single Source selection shall also be used in accordance with the provisions of paragraphs 3.9 to 3.13 of the Consultant Guidelines, with IDA's prior agreement. All terms of reference will be subject to IDA prior review. 8. Short lists of consultants for services estimated to cost less than $100,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 9. Assignments in excess of $200,000, and specialized technical assistance assignments, must be procured on the basis of international short-lists after appropriate advertisement in UNDB on line, DgMarket and in the national gazette or a national newspaper or in an electronic portal of free access 10. Consultant for services meeting the requirements of section V of the consultant guidelines, will be selected, under the provisions for the Selection of Individual Consultants, through comparison of qualifications among candidates expressing interest in the assignment or approached directly. Training, workshops and study tours 11. Participation in training sessions, workshops, seminars, conferences, and study tours will be subject to the approved annual programs. The latter will identify the general framework of training and similar activities for the year, including the nature of the training, study tours, workshops, number of participants, as well as estimated costs. Operating costs 12. Operational costs, which will be financed by the project, would be procured using the project's financial and administrative procedures manual previously agreed on by the Bank. For efficiency purpose, operational furniture packages will be procured on the basis of 6 or 12 months need and procured competitively. For services (car maintenance, computers maintenance, etc.) to be financed through operational costs, the project will proceed by service contracting for a defined period. 40 B. Evaluation of the Borrower's capacity to award contracts in line with guidelines 13. The PCU of the MPTNT will be responsible for the administration, coordination, monitoring of the Project, and procurement activities including compliance with procurement procedures. The PCU already includes a coordinator, a financial manager, a procurement specialist, an internal auditor and, an accountant, all to be recruited on a competitive basis (the procurement specialist and the financial specialist have been already hired). The assessment of the tenders boards of the ministries so far under World Bank financed projects have revealed: (i) an unfamiliarity of the members with bank's procurement procedures and, (ii) a weakness in the interpretation of Bank procurement procedures. As a result, appropriate capacity building program will be set for tender boards members. Based on weaknesses of the procurement activities, it has been decided to establish a CAB technical tenders board Commission placed under MPTNT's authority by the Prime Minister through a decision. 14. An operation manual including the financial administrative arrangements with a detailed section on procurement is currently drafted in order to outline, among others, the procurement arrangement and the relevant procedures applicable to the management of the Grant. 15. To ensure that the above mentioned procurement corrective measures will be met in due time, an action plan is proposed in the Table hereafter with tasks to be performed, responsible body as well as time-frame. Schedule of actions to be carried out ACTION TO BE EXPECTED RESPONSIBLE BODY UNDERTAKEN TIME-FRAME Prepare and submit to IDA an Prior to PCU operation manual, with a section effectiveness on procurement satisfactory to IDA Monitoring and evaluation of the As needed during World Bank procurement staff MPTNT tenders board in order project's life with information collected by to go for an alternative if the the PCU procurement performance is not acceptable specialist, Prepare, submit, get the text of Prior to PCU the creation of a special tender effectiveness board approved through a Prime (expected) Minister decree, as well as all of the tender boards members nominated (to be confirmed that draft text is satisfactorily with IDA) Capacity Building for the Key As needed during PCU through its procurement staff of the PCU, the tender project's life specialist, with as needed the board participation of the World Bank procurement staff Set up a record keeping and As needed during The PCU procurement specialist filing system at PCU project's life 41 16. Procurement risk. The overall project risk for procurement is substantial because, among other factors, there was no previous Bank operation with this ministry and the PCU - with procurement responsibility - which is been set up and staffed, is a completely new entity and is not familiar with procurement processes. Although procurement risk rating is presently substantial, the above well designed action plan with mitigation measures to be implemented and appropriate monitoring will reasonably bring this risk to moderate. 17. The procurement process will be defined in the Decree establishing the CAB technical tenders board Commission. It is the PCU responsibility to ensure that the necessary national clearances and approvals have been received before the No-Objection request is transmitted to the World Bank. Procurement steps that need review or/and approval from particular tenders control boards, with respect to specific price thresholds, will be defined in the Project's implementation manual and in the project procurement plan. Procurement plan 18. At appraisal, the Borrower has prepared a procurement plan for project implementation providing the basis for the procurement methods. This plan, covering the first 18 months of project implementation, has been discussed and agreed upon by the Borrower and the project team at negotiations. It will be available in the Project's database and a summary will be disclosed on the Bank's external website once the project is approved by IDA Board of Executive Directors. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvement in institutional capacity. Publication of Results and Debriefing. 19. Publication of results of the bidding process is required for all ICBs, LIBs and Direct Contracting. Publication should take place as soon as the no objection is received, except for Direct Contracting which may be done quarterly and in a simplified format. Publication of results for NCB and Shopping should follow the requirements of the procurement code of CAR. The disclosure of results is also required for selection of consultants. All consultants competing for the assignment should be informed of the result of the technical evaluation (number of points that each firm received) before the opening of the financial proposals, and at the end of the selection process the results should be published. The publication of results in selection of consultants applies to all methods, however for CQS and SSS the publication may be done quarterly and in a simplified format. The publication may be done through Client Connection. Losing bidders/consultants shall be debriefed on the reasons why they were not awarded the contract if they request explanation. 42 Fraud, Coercion and Corruption 20. The procuring entity as well as Bidders/Suppliers/Contractors shall observe the highest standard of ethics during the procurement and execution of contracts financed under the program in accordance with paragraphs 1.15 & 1.16 of the Procurement Guidelines and paragraphs 1.25 & 1.26 of the Consultants Guidelines. C. Frequency of procurement supervision 21. The capacity assessment recommended that supervision missions and field visits by the World Bank should take place at least twice a year. D. Performance Technical audit 22. The project financing and activities under the CITCAR will be subject to technical audits. These should be conducted, at 100 percent contracts on an annual basis by independent auditors recruited by the PCU. During the execution of the Project and up to two years after the closing date of the Grant Agreement, all documentation with respect to each activity carried shall be kept by the borrower for review and examination.. E. Details of the procurement mechanism 1. Works, Goods, and Non Consulting Services (a) List of main ICB contract packages to be procured for the first 18 months. 1 2 3 4 5 6 7 8 9 Preq Dome Review ualifi stic Expected Comment Contract Estimated by Bank catio Prefe Bid- Ref. No. Method s/complet (Description) Cost (Prior / n rence Opening ion date Post) (yes/n (yes/n Date o) o) Purchase of CITCAR spectrum August October /ART/09 management and 1,100,000 ICB Prior No No 2010 2010 /E/003 monitoring equipments (b) ICB Contracts estimated to cost above $500,000 for goods per contract and all Direct Contracting will be subject to prior review by the Bank. The procurement plan approved by the Bank will determine other contracts that will be subject to prior review by the Bank. F. Details of the Procurement Arrangements for Consulting Services (a) List of main consulting assignments with selection methods and time schedule for the first 18 months. 43 1 2 3 4 5 6 7 Review Expected Comments Ref. Estimated Selection by Bank Proposals / Description of Assignment Cost No. Method (Prior / Submission completion Post) Date date CITCA R/09/M Provision and establishment of November February 100,000 QCBS Prior PTNT/ Telecom secondary legislation 2009 2010 C/001 Technical assistance to design CITCA frequency spectrum management R/09/A regulatory tools and prepare November 200,000 QCBS Prior June 2010 RT/C/0 bidding documents for the 2009 02 purchase of spectrum management and monitoring equipments CITCA R/09/M Technical assistance to implement November December PTNT_ 200,000 QCBS Prior universal access in remote areas 2009 2010 ART/C/ 003 CITCA Study for the auditing of R/09/M SOCATEL and the incumbent December January 220,000 QCBS Prior PTNT/ operators - Restructuring Options 2009 2010 C/004 and recommendations CITCA R/09/M Study on the establishment of a November February 100,000 QCBS Prior PTNT/ national broadband backbone 2009 2010 C/011 CITCA R/09/M November January ICT Fiscal Study 90,000 QCBS Prior PTNT/ 2009 2010 C/005 CAB/CI T2A/09/ Technical Assistance for social and November February 100,000 QCBS Prior MPTNT environmental activities 2009 2010 /C/006 CITCA Study and establishment of a R/09/M December national and regional Internet 150,000 QCBS Prior June 2010 PTNT/ 2009 eXchange Point C/007 CITCA R/10/A Technical Assistance to design and 150,000 QCBS Prior March 2010 July 2010 RT/C/0 set up of regulatory tools 08 CITCA Technical assistance to support the R/10/M implementation of the August 1,000,000 QCBS Prior May 2010 PTNT/ restructuring options and 2011 C/010 recommendations 44 (b) Consultancy services estimated to cost above $200,000 for firms and $100,000 for individuals per contract, and Single Source Selection of consultants (firms and individuals), all audit contracts and the first contract to be awarded in accordance with each procurement method of consultants' services regardless of contract amount to be procured will be subject to prior review by the Bank. The procurement plan approved by the Bank will determine other contracts that will be subject to prior review by the Bank; (c) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than $200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 45 Annex 8: Economic and Financial Analysis Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) 1. Economic and financial analysis with a focus on connectivity. An assessment study for backbone connectivity was conducted with the help of international consultants in several CAB eligible countries, including CAR.. A preliminary economic and financial analysis was carried out based on this study, and yielding the results outlined below. 2. The aim of CAB APL 1 (APL1A including CITCM, CITCAR and CITCD and APL 1B) is to establish a regional broadband network across Cameroon, CAR and Chad. This broadband network will reduce significantly the cost of international connectivity. This will have a direct economic impact through additional investment, value added, and employment and as a generator of tax revenues. It will also have an indirect economic impact through increased productivity of the public and private sectors (e.g. improved public service delivery). CAR ­ Traffic Forecasts 350 300 2021 332 Mb/s 250 CAGR, 2005-2010: 76% CAGR, 2005-2021: 32% 200 2016 Mb/s 143 Mb/s Private lines 150 2011 Internet 83 Mb/s Voice over IP 100 PSTN Voice 2006 50 7 Mb/s Source: Terabits Voice 0 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011 3. The opportunity cost was calculated to measure the global economies from the cost of providing bandwidth relying on Satellite connection as compared to the cost of providing bandwidth relying on CAB connection. As suggested in the table below under the assumption of a discount rate of 13 percent and an average annual decrease of 8 percent for satellite connection, the actual opportunity cost is estimated at more than $117 million: $34 million for Cameroon, $26 million for CAR and 58 million for Chad. 46 Total discounted opportunity cost Chad $58 Cameroon $34 CAR $26 CAB $117 4. The estimated opportunity cost is a decreasing function of the annual decrease in satellite connection prices An average annual decrease of 21.6 percent of satellite connection prices between 2011 and 2021 would jeopardize the competitiveness of the CAB Program and would therefore produce a 0 (zero) opportunity cost. 5. The CAB Program in general will provide a major boost to the broadband market through increasing usage of broadband in public institutions, in the private sector and for consumers. CAB APL 1 will significantly reduce the cost of international connectivity. The project will stimulate the market and the overall economy. The effect of the project is therefore to accelerate the development of the broadband market. It is estimated the backbone will carry more that 23,000 E1 in 2021. 2011 2013 2015 2017 2019 2021 Chad 3,654 6,146 8,256 10,704 13,354 16,440 Cameroon 847 1,252 1,930 2,847 4,213 6,285 CAR 50 76 106 151 218 320 Capacity Carried on CAB (E1) 4,551 7,474 10,292 13,703 17,785 23,045 6. The estimates of economic impact are based on a 10 year model of the broadband market in Cameroon, CAR and Chad. Broadband Internet is a new industry in Africa and there are very few countries with advanced broadband markets on which to base economic calculations. The economic impact is based on a micro- economic analysis calculating the social welfare as the sum of the consumer surplus and producer surplus. The consumer surplus is calculated as the amount that consumers benefit by being able to purchase a product for a price that is less than they would be willing to pay. The producer surplus is computed as amount that producers benefit by selling at a market price mechanism that is higher than they would be willing to sell for. The graph below gives a snapshot of the economic methodology used in this paragraph. Price Supply Curve Consumer Surplus Market Price Equilibrium Producer Surplus Demand Curve Equilibrium Quantity Quantity 47 7. The global regional calculated economic surplus was estimated at $94 million out of which $76 million of consumer surplus and $18 million of producer surplus at the regional level. Consumer Surplus Producer Surplus Social Welfare Chad $38 $9 $47 Cameroon $25 $6 $30 CAR $14 $2 $17 CAB $76 $18 $94 8. An analysis was conducted to analyze the financial viability of the CAB program. In the detailed financial analysis conducted by International consultants, it is estimated the CAB Project will generate a positive EBITDA the first year of operation. 48 Annex 9: Statement of Loans and Credits for CAR Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) Operations Portfolio (IBRD/IDA and Grants) Closed Projects 29 IBRD/IDA * Total Disbursed (Active) 18.91 of w hich has been repaid 0.00 Total Disbursed (Closed) 520.83 of w hich has been repaid 105.72 Total Disbursed (Active + Closed) 539.74 of w hich has been repaid 105.72 Total Undisbursed (Active) 35.82 Total Undisbursed (Closed) 0.00 Total Undisbursed (Active + Closed) 35.82 Active Projects Difference Between Last PSR Expected and Actual Supervision Rating Original Amount in US$ Millions Disbursements a/ Developm Implemen ent Fiscal Project ID Project Name tation IBRD IDA GRANT Cancel. Undisb. Orig. Frm Rev'd Objective Year Progress s Port Stat Active Country Central African Republic Latest Latest Approv Frm Proj ID (SPN) IBRD IDA Grants Cancel. Undisb. Orig. DO IP al FY Rev'd P114111 CAR - Emergency Power Response Project S S 2009 8 7.78 0.71 P113221 CF- Food Response Project U MU 2009 7 3.60 1.77 P104595 CF-Emergency Urban Infrastruct ERL (F07) S S 2007 18 6.51 -0.88 P073525 CF-HIV/AIDS (FY02) MS MS 2002 17 13.30 9.70 3.08 P111679 CF:Supp to Vulnerable Grps Community Dev # # 2009 8 8.24 0.00 Overall Result 51 7 39.42 11.29 3.08 49 AFRICA STATEMENT OF IFC's Held and Disbursed Portfolio Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. Total portfolio: 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. Total pending commitment: 0.00 0.00 0.00 0.00 50 Annex 10: Country at a Glance Central African Backbone Program Communications Infrastructure and Technology APL Project (APL1A) Central African Republic Grant (CITCAR) Central African Republic at a glance 9/24/08 Central Sub- Key Development Indicators African Saharan Low Age distribution, 2007 Republic Africa income (2007) Male Female Population, mid-year (millions) 4.3 800 1,296 75-79 Surface area (thousand sq. km) 623 24,242 21,846 60-64 Population growth (%) 1.8 2.4 2.1 Urban population (% of total population) 38 36 32 45-49 30-34 GNI (Atlas method, US$ billions) 1.7 762 749 GNI per capita (Atlas method, US$) 380 952 578 15-19 GNI per capita (PPP, international $) 740 1,870 1,500 0-4 GDP growth (%) 4.2 6.2 6.5 20 10 0 10 20 GDP per capita growth (%) 2.3 3.7 4.3 percent (most recent estimate, 2000­2007) Poverty headcount ratio at $1.25 a day (PPP, %) .. 50 .. Under-5 mortality rate (per 1,000) Poverty headcount ratio at $2.00 a day (PPP, %) .. 72 .. Life expectancy at birth (years) 44 50 57 250 Infant mortality (per 1,000 live births) 115 94 85 Child malnutrition (% of children under 5) 22 27 29 200 Adult literacy, male (% of ages 15 and older) 65 69 72 150 Adult literacy, female (% of ages 15 and older) 33 50 50 100 Gross primary enrollment, male (% of age group) 72 99 100 Gross primary enrollment, female (% of age group) 49 88 89 50 0 Access to an improved water source (% of population) 66 58 68 1990 1995 2000 2006 Access to improved sanitation facilities (% of population) 31 31 39 Central African Republic Sub-Saharan Africa Net Aid Flows 1980 1990 2000 2007 a (US$ millions) Net ODA and official aid 110 249 75 134 Growth of GDP and GDP per capita (%) Top 3 donors (in 2006): France 69 71 19 27 10 United States 1 3 1 21 European Commission 11 33 6 14 5 0 Aid (% of GNI) 13.8 17.0 8.0 8.6 Aid per capita (US$) 47 83 19 31 -5 Long-Term Economic Trends -10 95 05 Consumer prices (annual % change) 14.7 -0.2 3.2 33.2 GDP implicit deflator (annual % change) 18.3 2.3 3.2 2.0 GDP GDP per capita Exchange rate (annual average, local per US$) 211.3 272.3 712.0 479.3 Terms of trade index (2000 = 100) .. 110 100 74 1980­90 1990­2000 2000­07 (average annual growth %) Population, mid-year (millions) 2.3 3.0 3.9 4.3 2.6 2.5 1.7 GDP (US$ millions) 797 1,488 959 1,712 1.4 2.0 0.0 (% of GDP) Agriculture 40.0 47.6 53.1 56.2 1.6 3.8 0.7 Industry 20.1 19.7 15.8 15.5 1.4 0.7 0.6 Manufacturing 7.2 11.3 7.0 7.6 5.0 -0.2 0.8 Services 39.9 32.7 31.0 28.3 1.1 0.2 -1.7 Household final consumption expenditure 93.7 85.7 80.8 88.1 .. .. 0.4 General gov't final consumption expenditure 15.1 14.9 14.0 9.7 .. .. -3.8 Gross capital formation 7.0 12.3 9.5 9.2 .. .. 0.0 Exports of goods and services 25.2 14.8 19.8 15.0 .. .. -1.6 Imports of goods and services 41.1 27.6 24.1 22.0 .. .. -2.3 Gross savings 1.6 -0.4 8.2 8.1 Note: Figures in italics are for years other than those specified. 2007 data are preliminary. .. indicates data are not available. a. Aid data are for 2006. Development Economics, Development Data Group (DECDG). 51 Central African Republic Balance of Payments and Trade 2000 2007 Governance indicators, 2000 and 2007 (US$ millions) Total merchandise exports (fob) 159 187 Total merchandise imports (cif) 162 285 Voice and accountability Net trade in goods and services -42 -114 Political stability Workers' remittances and compensation of employees (receipts) .. .. Regulatory quality Rule of law Current account balance -12 -68 as a % of GDP -1.3 -4.0 Control of corruption Reserves, including gold 136 91 0 25 50 75 100 2007 Country's percentile rank (0-100) Central Government Finance higher values imply better ratings 2000 (% of GDP) Source: Kaufmann-Kraay-Mastruzzi, World Bank Current revenue (including grants) 13.7 16.0 Tax revenue 7.8 8.7 Current expenditure 9.2 9.6 Technology and Infrastructure 2000 2007 Overall surplus/deficit -1.8 2.5 Paved roads (% of total) 2.7 .. Highest marginal tax rate (%) Fixed line and mobile phone Individual .. .. subscribers (per 1,000 people) 0 3 Corporate .. .. High technology exports (% of manufactured exports) 0.1 0.0 External Debt and Resource Flows Environment (US$ millions) Total debt outstanding and disbursed 858 1,020 Agricultural land (% of land area) 8 8 Total debt service 14 70 Forest area (% of land area) 36.8 36.5 Debt relief (HIPC, MDRI) 583 .. Nationally protected areas (% of land area) .. 16.6 Total debt (% of GDP) 89.4 69.0 Freshwater resources per capita (cu. meters) .. 33,640 Total debt service (% of exports) 7.3 32.3 Freshwater withdrawal (% of internal resources) 0.0 .. Foreign direct investment (net inflows) 1 24 CO2 emissions per capita (mt) 0.07 0.06 Portfolio equity (net inflows) 0 0 GDP per unit of energy use (2005 PPP $ per kg of oil equivalent) .. .. Composition of total external debt, 2006 Energy use per capita (kg of oil equivalent) .. .. IBRD, 0 Short-term, 115 IDA, 395 Private, 30 World Bank Group portfolio 2000 2007 (US$ millions) Bilateral, 227 IBRD Total debt outstanding and disbursed 0 0 Disbursements 0 0 IMF, 42 Principal repayments 0 0 Other multi- Interest payments 0 0 lateral, 210 US$ millions IDA Total debt outstanding and disbursed 391 403 Disbursements 13 3 Private Sector Development 2000 2008 Total debt service 9 14 Time required to start a business (days) ­ 14 IFC (fiscal year) Cost to start a business (% of GNI per capita) ­ 232.3 Total disbursed and outstanding portfolio ­ ­ Time required to register property (days) ­ 75 of which IFC own account ­ ­ Disbursements for IFC own account ­ ­ Ranked as a major constraint to business 2000 2007 Portfolio sales, prepayments and (% of managers surveyed who agreed) repayments for IFC own account ­ ­ n.a. .. .. n.a. .. .. MIGA Gross exposure ­ ­ Stock market capitalization (% of GDP) .. .. New guarantees ­ ­ Bank capital to asset ratio (%) .. .. Note: Figures in italics are for years other than those specified. 2007 data are preliminary. 9/24/08 .. indicates data are not available. ­ indicates observation is not applicable. Development Economics, Development Data Group (DECDG). 52 Millennium Development Goals Central African Republic With selected targets to achieve between 1990 and 2015 (estimate closest to date shown, +/- 2 years) Central African Republic Goal 1: halve the rates for extreme poverty and malnutrition 1990 1995 2000 2007 Poverty headcount ratio at $1.25 a day (PPP, % of population) .. .. .. .. Poverty headcount ratio at national poverty line (% of population) .. .. .. .. Share of income or consumption to the poorest qunitile (%) .. 2.0 .. .. Prevalence of malnutrition (% of children under 5) .. 23.3 21.8 .. Goal 2: ensure that children are able to complete primary schooling Primary school enrollment (net, %) 52 .. .. 46 Primary completion rate (% of relevant age group) 29 .. .. 24 Secondary school enrollment (gross, %) 11 .. 12 .. Youth literacy rate (% of people ages 15-24) 48 .. 59 .. Goal 3: eliminate gender disparity in education and empower women Ratio of girls to boys in primary and secondary education (%) 60 .. .. .. Women employed in the nonagricultural sector (% of nonagricultural employment) 30 .. .. .. Proportion of seats held by women in national parliament (%) 4 4 7 11 Goal 4: reduce under-5 mortality by two-thirds Under-5 mortality rate (per 1,000) 173 192 186 175 Infant mortality rate (per 1,000 live births) 114 123 120 115 Measles immunization (proportion of one-year olds immunized, %) 83 46 36 35 Goal 5: reduce maternal mortality by three-fourths Maternal mortality ratio (modeled estimate, per 100,000 live births) .. .. .. 980 Births attended by skilled health staff (% of total) .. 46 44 53 Contraceptive prevalence (% of women ages 15-49) .. 15 28 19 Goal 6: halt and begin to reverse the spread of HIV/AIDS and other major diseases Prevalence of HIV (% of population ages 15-49) .. .. 6.4 6.3 Incidence of tuberculosis (per 100,000 people) 138 206 299 345 Tuberculosis cases detected under DOTS (%) .. 58 8 69 Goal 7: halve the proportion of people without sustainable access to basic needs Access to an improved water source (% of population) 58 59 63 66 Access to improved sanitation facilities (% of population) 11 15 22 31 Forest area (% of total land area) 37.2 .. 36.8 36.5 Nationally protected areas (% of total land area) .. .. .. 16.6 CO2 emissions (metric tons per capita) 0.1 0.1 0.1 0.1 GDP per unit of energy use (constant 2005 PPP $ per kg of oil equivalent) .. .. .. .. Goal 8: develop a global partnership for development Telephone mainlines (per 100 people) 0.2 0.2 0.2 0.3 Mobile phone subscribers (per 100 people) 0.0 0.0 0.1 3.0 Internet users (per 100 people) 0.0 0.0 0.1 0.3 Personal computers (per 100 people) .. .. 0.2 0.3 Education indicators (%) Measles immunization (% of 1-year olds) ICT indicators (per 1,000 people) 50 100 10 40 8 75 30 6 20 50 4 10 25 0 2 2000 2002 2004 2006 0 0 1990 1995 2000 2006 2000 2002 2004 2006 Primary net enrollment ratio Central African Republic Fixed + mobile subscribers Ratio of girls to boys in primary & Sub-Saharan Africa Internet users secondary education (..) Note: Figures in italics are for years other than those specified. .. indicates data are not available. 9/24/08 Development Economics, Development Data Group (DECDG). 53 16°E 18°E 20°E 22°E 24°E This map was produced by the Map Design Unit of The World Bank. 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Ngaoui Ou ha Bria Yalinga H A U T- To Bouca OUAKA ka (1,420 m) rre Melganga MBOMOU Oua Bozoum Bossangoa Dékoa Ka Ippy KÉMO- Djéma 6°N Bouar 6°N GRIBINGUI To Bambari MBOMOU O u a rr a Bétaré Oya NANA- Baoro Sibut Grimari Bakouma MAMBÉRÉ o ink Obo M ri po Bossembélé Ch ba M ko M Mb To am bé om o Lo Zémio Naandi ré OMBELLA- u ba Mingala Rafaï BASSE ye gi Carnot MPOKO Damara ban Kouango Bangassou U KOTTO HAUTE SANGHA BANGUI To Mb CENTRAL AFRICAN a Boda Mobaye Monga Berberati Ouango To Bimbo ér L O B AY E é Batouri Gamboula 4°N Kad eï Mbaïki To Libenge Mongoumba REPUBLIC To Yokadouma Nola Tomori SANHA DEM. REP. SELECTED CITIES AND TOWNS Salo O F CO NGO 0 40 80 120 160 200 Kilometers PREFECTURE CAPITALS CAM E R OON NATIONAL CAPITAL Sangha 0 40 80 120 Miles RIVERS CONGO MAIN ROADS SEPTEMBER 2004 2°N RAILROADS IBRD 33384 o PRFECTURE BOUNDARIES ng Co INTERNATIONAL BOUNDARIES 16°E 18°E 20°E 22°E