Document of The World Bank FOR OFFICIAL USE ONLY Report No: PP2330 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED GRANT IN THE AMOUNT OF US$ 1.1 MILLION TO THE REPUBLIC OF PALAU FOR A PALAU: ICT SECTOR TECHNICAL ASSISTANCE PROJECT April 10, 2018 Transport & Digital Development Global Practice East Asia And Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective {Feb 28, 2018}) Currency Unit = US$1 = US$1 FISCAL YEAR January 1 - December 31 Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Jose Luis Irigoyen Practice Manager: Jane Lesley Treadwell Task Team Leader(s): James L. Neumann ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank APIP Australia-Pacific Islands Partnership AUD Australian Dollars BSCC Belau Submarine Cable Company FM Financial management GRS Grievance Redress Service ICT Information and communication technologies IDA International Development Association M&E Monitoring & Evaluation MOF Ministry of Finance MPIIC Ministry of Public Infrastructure, Industries and Commerce PNCC Palau National Communications Corporation PRIF Pacific Region Infrastructure Facility SOE State Owned Entity TA Technical assistance US$ United States Dollars WB World Bank The World Bank Palau: ICT Sector Technical Assistance (P160504) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC INFORMATION Is this a regionally tagged project? Country (ies) No Financing Instrument Classification Investment Project Financing Small Grants [ ] Situations of Urgent Need or Assistance/or Capacity Constraints [ ] Financial Intermediaries [ ] Series of Projects OPS_BASI CINFO_TABLE _3 Approval Date Closing Date Environmental Assessment Category 30-Mar-2018 C - Not Required Approval Authority Bank/IFC Collaboration CD Decision No Please Explain Proposed Development Objective(s) The activity's development objective is to support the Recipient on its ongoing reforms to help create the conditions necessary to increase competition in the ICT sector. Components Component Name Cost (USD Million) Technical assistance to support ICT sector reform and development 1.15 Project management and implementation support 0.40 Page 1 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) Organizations Borrower : Ministry of Finance Implementing Agency : Ministry of Finance PROJECT FINANCING DATA (US$, Millions) FIN_SUMM_NEW SUMMARY Total Project Cost 1.55 Total Financing 1.55 Financing Gap 0.00 DETAILS PUB_FIN_DETAIL Counterpart Funding 0.45 National Government 0.45 Trust Funds 1.10 Free-standing Single Purpose Trust Fund 1.10 Expected Disbursements (in USD Million) Fiscal Year 2019 2020 2021 Annual 0.30 0.50 0.30 Cumulative 0.30 0.80 1.10 INSTITUTIONAL DATA Practice Area (Lead) Transport & Digital Development Page 2 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) Contributing Practice Areas Private Capital Mobilized No Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment No c. Include Indicators in results framework to monitor outcomes from actions identified in (b) No OVERALL RISK RATING Risk Category Rating Overall  Moderate COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✔] No Does the project require any waivers of Bank policies? [ ] Yes [✔] No Page 3 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) Safeguard Policies Triggered by the Project Yes No Legal Covenants Sections and Description The Recipient shall maintain, throughout Project implementation period, the Project Management Office within the Ministry of Finance, with mandate, composition and resources satisfactory to the World Bank, which shall be responsible for, inter alia, day-to-day Project coordination, management and implementation activities, and shall include a Project manager, with terms of reference, qualifications and experience satisfactory to the World Bank. Sections and Description The Recipient shall maintain, throughout Project implementation period, a working group with mandate, composition and resources satisfactory to the World Bank, which shall be responsible for providing oversight and strategic guidance on Project implementation and ensuring coordination among relevant parties on Project implementation. Conditions PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader(ADM James L. Neumann GTD11 Responsible) Procurement Specialist(ADM Dominic Reyes Aumentado GGOPG Responsible) Financial Management Stephen Paul Hartung GGOEP Specialist Andrea Ruiz-Esparza Team Member GTD09 David Satola Peer Reviewer ICOIO Duangrat Laohapakakul Counsel LEGES Loren Jayne Atkins Counsel LEGES Natasha Beschorner Peer Reviewer GTD09 Page 4 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) Environmental Safeguards Penelope Ruth Ferguson GENDR Specialist Ross James Butler Social Safeguards Specialist GSU02 Sharon Louise Riley Team Member GEE09 Zaid Safdar Peer Reviewer GTD11 Zhuo Yu Team Member WFACS Extended Team Name Title Organization Location Note to Task Teams: End of system generated content, document is editable from here. Page 5 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) PALAU PALAU: ICT SECTOR TECHNICAL ASSISTANCE TABLE OF CONTENTS I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context .................................................................................................................. 7 B. Sectoral and Institutional Context ...................................................................................... 7 C. Higher Level Objectives to which the Project Contributes ................................................. 8 II. PROJECT DEVELOPMENT OBJECTIVES .............................................................................. 8 A. PDO...................................................................................................................................... 8 B. Project Beneficiaries ............................................................................................................ 8 C. PDO-Level Results Indicators............................................................................................... 9 III. PROJECT DESCRIPTION.................................................................................................... 9 A. Project Components............................................................................................................ 9 B. Project Cost and Financing ................................................................................................ 10 IV. IMPLEMENTATION........................................................................................................ 10 A. Institutional and Implementation Arrangements ............................................................. 10 B. Financial Management Arrangements .............................................................................. 11 C. Results Monitoring and Evaluation ................................................................................... 12 D. Sustainability ..................................................................................................................... 12 V. KEY RISKS ..................................................................................................................... 13 A. Overall Risk Rating and Explanation of Key Risks.............................................................. 13 VI. APPRAISAL SUMMARY .................................................................................................. 13 A. World Bank Grievance Redress ......................................................................................... 14 VII. RESULTS FRAMEWORK AND MONITORING .................................................................... 16 Page 6 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) I. STRATEGIC CONTEXT A. Country Context 1. Palau is situated in the Micronesian group of islands in the northern Pacific with an estimated population of 21,503 (World Development Indicators, 2016). Palau is the World Bank Group's third smallest member (only Tuvalu and Nauru have smaller populations). Palau receives substantial financial assistance from the United States through the provisions of the Compact of Free Association. An overarching challenge for Palau is to achieve self-sufficiency when financing under the Compact expires in 2024. Palau is an upper-middle income country with an Atlas gross national income per capita of $12,330 (World Development Indicators, 2016). External aid has made up an average of 25 percent of Palau’s GDP over the last decade. The principal source of growth and revenues is tourism, followed by fishing. Annual tourism receipts amount to about 50 percent of GDP, more than twice the Pacific island average and among the highest in the world. Visitors from Taiwan, China, Japan and Korea account for the bulk of tourist arrivals. GDP growth was 9.4 percent in FY2015 led by robust tourism and construction activity, but declined to 1.9 percent in 2016 (World Development Indicators, 2016). Growth is projected at around 5 percent in 2017 and 2018 as tourism activity recovers and robust construction activity continues. Palau’s positive outlook is subject to substantial risks due to its reliance on tourism, grants and commodity imports. B. Sectoral and Institutional Context 2. Palau's telecommunications sector comprises two principal service providers. The state-owned Palau National Communications Corporation (PNCC) provides fixed line services, mobile voice and data services, and Internet access. The privately-owned Palau Telecom offers a WiFi Internet service. The Government of Palau recently established the Belau Submarine Cable Company (BSCC) as a state-owned enterprise under the Belau Submarine Cable Corporation Act, which was signed into law by the President of Palau on September 21, 2015. The BSCC will own and operate the new international fiber optic submarine cable system linking Palau to the global Internet. The high cost and limited availability of international bandwidth has been a major constraint on the development of the sector. There are no competitive providers of voice or mobile data services in Palau. 3. The Government is undertaking reforms to its ICT sector to promote competition and encourage better quality services, improve access and lower prices. An international marketing campaign will be carried out to attract new private sector entrants to stimulate investments in new services, grow the market and maximize the benefits of the new submarine cable system. The World Bank Technical Assistance Project (P132686) mobilized US$0.6 million from the Pacific Region Infrastructure Facility (PRIF) and provided initial assistance focused on: (a) structuring and transactional arrangements for the proposed cable system and the formation of the BSCC; and (b) the preparation of new ICT sector legislation and subordinate regulatory framework. This grant has been fully exhausted and all outputs achieved. A draft suite of legislative and regulatory instruments has been prepared and is under review by the Government. 4. While a lot of new investment has flowed into the sector, significant challenges remain. The Government has not yet developed a plan to minimize the Government's exposure to competitive parts of the Page 7 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) market, which can be better served by the private sector. Nor has the Government taken steps to identify those assets which have essential facility characteristics that should be managed pursuant to ownership and regulatory arrangements which minimize monopoly risk and the costs of regulation. Mechanisms also need to be developed to mitigate risks that new entrants may freeride on previous public investments. Prior to promoting new competition, PNCC has also emphasized the importance of ensuring that it is well-positioned technically and is on a sound financial footing to compete with any new entrants on an equitable basis. This includes ensuring that PNCC has access to adequate capital and revenues to service its debts and maintain positive cashflow. A forward-looking infrastructure assessment is also required to determine the new terrestrial investments needed to maximize the benefits of the new cable and promote sector growth and development. C. Higher Level Objectives to which the Project Contributes 5. Palau does not have a stand-alone CPF however a Regional Partnership Framework covering nine pacific island countries including Palau has been prepared. The RPF draws on the World Bank Group's Systemic Country Diagnostic, Kiribati, Marshall Islands, Micronesia, Palau, Samoa, Tonga, Tuvalu, Vanuatu (February, 2016, Report No. 102803-EAP). The SCD identified the need to strengthen governance and the business environment as an enabler to support the development opportunities of Palau, which includes the need to maintain and develop economic infrastructure. The activity will provide technical assistance for reforms to Palau's ICT sector to promote improved delivery of quality services, improve access to services, and lower prices by promoting a competitive market and private sector participation. Existing operators and new entrants are expected to help grow Palau's telecommunications market. These objectives support the SCD's three pathways: (i) to exploit the limited economic opportunities; (ii) to foster access to economic opportunity; and (iii) to protect services for the poor. II. PROJECT DEVELOPMENT OBJECTIVES A. PDO The activity's development objective is to support the Recipient on its ongoing reforms to help create the conditions necessary to increase competition in the ICT sector. B. Project Beneficiaries 6. The direct beneficiaries will be: (a) The Ministry of Finance and the Ministry of Public Infrastructure, Industries and Commerce which will receive assistance to complete the ongoing legislative reform processes and implement steps necessary to promote ICT sector growth, including SOE reform and capacity building for the new independent regulatory agency. (b) The existing state-owned enterprises PNCC and BSCC. PNCC will receive support focused on strengthening the capacity of PNCC to compete in a liberalized market; and BSCC which will receive assistance to maximize utilization of the new submarine cable and options for expanding access to Page 8 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) terrestrial fiber including fiber to the premises. 7. The indirect beneficiaries will be individuals, businesses, government and non-government agencies that will receive improved access to voice and data services. By facilitating new investment in the sector through market and regulatory reform, the Project is expected to contribute to improved social welfare, access to information and services as well as potential income-earning opportunities including through the tourism sector. Improved access to information and services is also expected to make a positive contribution to the economic and social empowerment of all Palauans, including women, girls and boys, especially through increased access to health, education and though enhanced employment mobility. C. PDO-Level Results Indicators 8. Progress will be measured against the following results indicators: (a) Strengthened policymaking for ICT sector; (b) Strengthened regulatory capacity for ICT sector; and (c) Impact on telecom sector of World Bank Technical Assistance III. PROJECT DESCRIPTION A. Project Components 9. Component 1: Technical assistance to support ICT sector reform and development (US$1.15 million). This component will finance advisory services for: (a) General Manager for PNCC. This activity would contribute towards the costs of hiring an interim general manager internationally for a term of approximately 18 months to help lead PNCC during the period of market opening and liberalization. The terms of reference will include responsibility to identify and train talent within PNCC to take over after the expiry of this term. (b) ICT sector reform and development. This activity is focused on market design, sector reorganization and developing sector reform options necessary to promote new private sector investment in the ICT sector. It includes analysis of options for reorganizing the debts, assets and obligations of PNCC and BSCC. (c) Regulatory support. This activity includes support to establish an independent regulatory function in Palau, including analysis of options for outsourcing technical regulatory decision making to improve regulatory outcomes and reduce costs. 10. Component 2: Project management and implementation support (US$0.40 million). This component will finance technical assistance to support the Ministry of Finance on project management and implementation activities. Page 9 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) B. Project Cost and Financing 11. The total cost of the Project is US$1.55 million. The Project is financed through a grant from the Government of Australia through the Australia-Pacific Islands Partnership (APIP) Trust Fund of AUD2.0 million (estimated value of US$1.5m) and counterpart funding of $US0.45 million. Of the grant financing through the APIP Trust Fund, approximately US$1.1 million will be made available to the recipient for this Project. The first three tranches have been received under the APIP Trust Fund totaling AUD1.0 million. The first grant agreement will be for US$0.6 million. The final two tranches of AUD0.5 million each will be received in FY 19 and FY20. The Bank and the Recipient will execute amendments to the grant agreement to effect the increase in grant financing once these subsequent contributions from Australia have been received. Project Components Project cost Trust Funds Counterpart Funding Technical assistance to support ICT sector reform and 1.15 0.95 0.2 development Project management and 0.40 0.15 0.25 implementation support Total Costs 1.55 1.1 0.45 Total Project Costs 1.55 1.1 Total Financing Required 1.55 1.1 0.45 IV. IMPLEMENTATION A. Institutional and Implementation Arrangements 12. The Project will be implemented by the Bureau of Budget and Planning, MOF. The MOF will collaborate with MPIIC in implementing the Project. PNCC and BSCC will be consulted closely as key sector stakeholders and beneficiaries of technical assistance and support under the Project. For this purpose, a working group will be established to help coordinate project implementation, which will comprise representatives from MOF, MPIIC, PNCC and BSCC. The working group will provide oversight and strategic guidance on Project implementation, and promote coordination among key stakeholders, especially public consultation and awareness raising activities. 13. Day-to-day Project coordination, management and implementation support will be provided by the Government’s existing Project Management Office within Budget and Planning, MOF. A Project manager will be retained to oversee implementation activities, help coordinate the various work streams and support Government in managing Project outputs. The Project manager will be responsible for monitoring Project reporting and supervising day to day activities. A specialist procurement adviser will also be hired through the Page 10 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) project management office on a part time basis to provide additional assistance. B. Financial Management Arrangements Budgeting arrangements 14. Budgeting for this Project will be straightforward. The Bureau of Budget and Planning, within the Ministry of Finance, will have oversight for the Project budget. Day to day management of the budget will be done by the Project Manager. The budget should be consistent with the procurement plan and work plan. Provision for small value non-procurable incremental operating costs will be provided for by the Recipient from counterpart funds. The Grant will not finance IOC. Accounting arrangements 15. Previous attempts to integrate Bank financed projects into the Government account accounting system were unsuccessful. Nonetheless, it is again recommended that the accounts be integrated into the Government accounting system. If this is not possible, for example due to planned changes to the Government’s accounting system, Project accounts may be maintained on a standalone basis. An off the shelf accounting package or manual cash book could be used to record the transactions, due to the small number of transactions expected. In such a case, Government will need to ensure that the level of detail recorded is adequate and obtain prior approval from the World Bank. 16. The FM requirements do not justify a fulltime position. While the Project manager may undertake the day to day FM responsibilities, the Government will be required to nominate a person from the Budget and Planning division to take primary responsibility of ensuring all FM requirements are met and to provide quality control for the Project accounting. Internal controls 17. Project internal financial controls will be consistent with Government Internal Controls Procedures Manual. Segregation of non-compatible activities will be required. The Government will be required to keep an adequate, discrete filing system for the project documentation and this will be reviewed for compliance with the Internal Controls and Procedures Manual during the FM implementation review. Flow of funds 18. There will be no Designated Account for this Project. Funds will flow from the World Bank to the Government either through direct payments or by reimbursement of expenses pre-financed by Government. The APIP grant will only finance consulting services at 100%, inclusive of taxes. The counterpart funds of $0.45 million will finance other distinct activities not financed under the APIP grant, including consulting services and Incremental Operating Costs, such as audit costs, workshops, public consultations, travel, office space, computers and other office equipment. Page 11 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) Financial reporting 19. Semester Interim Unaudited Financial reports will be required to be submitted to the Bank no later than 45 days after the end of the reporting period. The interim unaudited financial reports will be provided in a format agreed with the Bank. External audit 20. If the Project accounts are integrated into the National Accounts, then a note to the accounts disclosing the project funds received and expended each year will meet the Bank’s audit requirements. If the accounts are not incorporated into the National Accounts, the project accounts will need to be audited on an annual basis either by the Office of the Public Auditor or by a private auditor. Given the small number of transactions the first annual audit required will be for the period ending September 30 2019. Audited Financial Statements for each period shall be furnished to the World Bank not later than nine months after the end of each period. The financial year in Palau is from October to September. C. Results Monitoring and Evaluation 21. The Project Manager will be responsible for Project monitoring and evaluation (M&E) of progress and outcomes. The Project Manager will establish a standard format and guidelines for data collection and reporting. The views of direct beneficiaries will be brought into the M&E process. Inputs also will be sought from other beneficiaries, especially users of ICT services, which ultimately are the main beneficiaries of the Project’s outcomes. This will be done through periodic consultations and routine reporting. Implementation support missions will be conducted at least twice a year, which will include monitoring and joint evaluations of Project outcomes. Affordable, high-speed Internet is known to be associated with economic and social empowerment by increasing users’ access to services such as employment and education opportunities and health. M&E activities, especially engagement with focus groups and targeted surveys, will be designed to assist Government in measuring and promoting mechanisms to mainstream improved ICT services in ways that facilitate new social and economic livelihood opportunities on a gender informed basis. D. Sustainability 22. The Government has committed to financing the creation of new policy positions within MPIIC and establishing an independent regulator. The Project will emphasize knowledge transfer and training opportunities in its interactions with MPIIC and the regulator. Technical assistance supporting the creation of the independent regulatory function will look specifically at mechanisms to improve the sustainability of that new agency. This includes examining options for collaboration with the Federated States of Micronesia and the potential for outsourcing technical regulatory decision making to improve regulatory outcomes and reduce regulatory costs. By supporting sector reform activities necessary to improve the availability of low cost Internet bandwidth, longer term, the Project is expected to lay the foundation necessary to fulfil the Government’s broader objectives for digital development, which may include applications in the areas of E- Government, Telemedicine, E-Education and distance learning, E-Commerce, cybersecurity, cybercrimes and ID management. Page 12 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) V. KEY RISKS A. Overall Risk Rating and Explanation of Key Risks 23. Taking into account existing capacity constraints and limited experience implementing World Bank Projects in Palau, the overall risk is Moderate. Risks identified are manageable and mitigation measures are in place. 24. Key ministries face significant human resource constraints. These constraints may impact the ability of the Government to implement the Project effectively and in a timely manner, including in connection with the recruitment and supervision of consultants. Risks will be mitigated by the allocation of funding for Project implementation, particularly consultants responsible for project management and procurement activities. The World Bank will also provide enhanced supervision, including ongoing sector-specific technical assistance, and guidance as needed on World Bank procedures and processes. 25. Changes in the current political commitment for sector reforms could also impact Project implementation. The Project depends on close collaboration and support from PNCC and BSCC to provide technical assistance around options to strengthen these entities to operate effectively in a competitive market environment. As has been the case in other monopolistic or quasi monopolistic markets, there is a risk that monopoly operators may limit their engagement or cooperation. The Project will accordingly promote a strong focus on mentoring and knowledge-sharing as part of the advisory assistance, and will encourage regular consultations and broad participation in the reform program across Government and among stakeholders. Continuous consultation with and raising awareness of stakeholders will take place around the social and economic benefits of sector reform. VI. APPRAISAL SUMMARY 26. The Project is anticipated to have positive economic and social impacts by improving access to communication. There are strong linkages between broadband penetration (including mobile Internet) and economic activity, supporting the objectives of the project to increase broadband access by encouraging market reforms to support investment and put downwards pressure on prices. At least one study indicates that a 10 percent increase in broadband penetration may correlate with a 1.38 percent increase in GDP in developing countries. Social benefits of broadband are difficult to quantify, but are an essential part of the overall value of broadband along with its economic benefits: delivery of essential public services such as health care and education in a more efficient way, achieving digital inclusion for people from remote areas, attracting and retaining workers. The beneficiaries of the Project which can expect improved operations through more efficient transactions and access to information include small- and medium-enterprises, primary producers, service industries, health and education sectors, government agencies, and disaster preparedness/management. 27. Strong commitment from the Recipient to the Project activities is essential. Demonstrating this commitment, the Project will be supported by approximately US$0.45 million in additional financing from the Government to supplement and expand the scope of activities. These funds will be applied towards the costs of recruiting a General Manager for PNCC (US$0.2 million) and project management and implementation Page 13 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) support (US$0.25 million). The Government has also indicated that it will expand capacity for policy development and implementation activities within the Ministry of Public Infrastructure, Industries and Commerce by recruiting additional staff for MPIIC to work on ICT sector policy development. The Government’s commitment is expected to promote sustainability, by ensuring in-line staff are in place to benefit from technical training and knowledge transfer, and improve capacity for project management and implementation activities. 28. Market reform processes, including opening the market to competition, are challenging. In many instances, it triggers opposition from incumbent operators. Opposition to Government reforms may also come from State Owned Entities due to weak governance arrangements which limit the ability of Governments to influence the actions of state-owned entities. Building trust and confidence between Government and incumbent operators is critical, especially if the operator is to benefit from technical assistance designed to help manage the transition from monopoly to competitive market settings. To help address these issues, the Project design includes support for hiring an interim chief executive officer internationally to help lead PNCC during the period of market opening and liberalization. This person is expected to bring international experience of similar market reform processes and help PNCC work closely with Government and engage constructively on the proposed market reforms. 29. Implementation capacity is low due in part to a lack of familiarity with World Bank financed activities and the small number of staff relative to the number of ongoing activities currently undertaken by Government. While the relevant Government ministries keen support the Project, they face significant human resource constraints. The Project design therefore sets aside US$0.15 million, supplemented by an additional US$0.25 million of Government funds, to provide project implementation support. This will include specific assistance for a designated project manager, recruited locally, and international advisory assistance on procurement matters. The World Bank will also provide significant in-country support on policy and implementation related matters to support ICT sector readiness and Project implementation capacity. 30. Project accounts will be maintained by staff in the Project Management Office within the Budget and Planning, MOF. It is recommended that Project accounts be integrated directly into the Government accounting system, 4Gov, and included in the government accounts. Provided that Project accounts are integrated into the National Accounts, then the Project accounts will be audited as part of the National Government Accounts and will be disclosed as a note to these accounts. Project internal financial controls will be consistent with the Government Internal Controls Procedures Manual. In addition to annual reporting requirements, the Recipient will maintain unaudited semester financial statements in a format to be agreed between the Bank and MOF. The Government has prepared the Project Procurement Strategy for Development (PPSD) and Procurement Plan for the small and simple procurements under the Project. These documents will be regularly updated to reflect any changes in the procurement environment. The Bank’s Procurement Regulations (dated July 1, 2016) will be used. No safeguards issues are anticipated. A. World Bank Grievance Redress Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel Page 14 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. . Page 15 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) VII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY : Palau Palau: ICT Sector Technical Assistance Project Development Objectives The activity's development objective is to support the Recipient on its ongoing reforms to help create the conditions necessary to increase competition in the ICT sector. Project Development Objective Indicators Unit of Data Source / Responsibility for Indicator Name Corporate Baseline End Target Frequency Measure Methodology Data Collection Name: Strengthened Number 0.00 3.00 Annual Ministry of Public MOF policymaking for ICT Infrastructure, Industries sector and Commerce Description: Measure capacity building for policy development, implementation and citizen engagement (public officials and citizens). Strengthened policy making capacity demonstrated through (a) opportunities given to stakeholders (including female, male and youth) to provide input during policy development; (b) stakeholders reporting satisfaction with key aspects of consultation process; and (c) Government adopting at least one, possibly more, new initiatives and policies to guide development of ICT sector. Name: Strengthened Number 0.00 3.00 Annual Ministry of Public Annual Page 16 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) Unit of Data Source / Responsibility for Indicator Name Corporate Baseline End Target Frequency Measure Methodology Data Collection regulatory capacity for Infrastructure, Industries ICT sector and Commerce Description: A regulatory authority has been established under recent telecom sector law reforms, but not yet operationalized. Evidence of strengthened regulatory capacity may include (a) creation of a regulatory office; (b) appointment of staff; (c) preparation or implementation of rules or regulations; and (d) the regulator undertaking monitoring, evaluation and oversight of ICT sector. Name: Impact on telecom Number 0.00 3.00 Annual MOF and Ministry of Public MOF sector of World Bank Infrastructure, Industries Technical Assistance and Commerce Description: High impact may be indicated by (a) report(s) submitted to Government recommending key decisions viz. SOE ownership, regulatory arrangements, new policies to promote investment and ICT sector development; (b) number of stakeholders consulted on ICT sector development issues; (c) yearly increment (baseline at the end of the first year) of the % of beneficiaries (including female, male and youth) who feel that project activities are focused on their needs (access, quality of services, price). Intermediate Results Indicators Unit of Data Source / Responsibility for Indicator Name Corporate Measur Baseline End Target Frequency Methodology Data Collection e Name: Options report for Yes/No N Y MOF MOF Annual reorganizing PNCC and Page 17 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) Unit of Data Source / Responsibility for Indicator Name Corporate Measur Baseline End Target Frequency Methodology Data Collection e BSCC delivered Description: Name: ICT infrastructure Yes/No N Y MOF MOF Annual needs analyzed and an investment plan prepared Description: Name: Report on options Yes/No N Y MOF MOF Annual for improving regulatory outcomes delivered Description: Name: Interim GM Yes/No N Y MOF MOF Annual recruited internationally to lead PNCC Description: Page 18 of 19 The World Bank Palau: ICT Sector Technical Assistance (P160504) Target Values Project Development Objective Indicators FY Indicator Name End Target Strengthened policymaking for ICT sector 3.00 Strengthened regulatory capacity for ICT sector 3.00 Impact on telecom sector of World Bank Technical Assistance 3.00 Intermediate Results Indicators FY Indicator Name Baseline End Target Options report for reorganizing PNCC and BSCC delivered N Y ICT infrastructure needs analyzed and an investment plan prepared N Y Report on options for improving regulatory outcomes delivered N Y Interim GM recruited internationally to lead PNCC N Y Page 19 of 19