FOR OFFICIAL USE ONLY Report No: PAD3349 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF EUR 89.2 MILLION (US$100 MILLION EQUIVILANT) TO THE REPUBLIC OF TUNISIA FOR A GOVTECH: DIGITAL TRANSFORMATION FOR USER-CENTRIC PUBLIC SERVICES May 24, 2019 Governance Global Practice Middle East And North Africa Region 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 Apr 30, 2019 Currency Unit = US$1 = 0.8919 EUR TND1 = 0.33 US$ FISCAL YEAR January 1 - December 31 Regional Vice President: Ferid Belhaj Country Director: Marie Francoise Marie-Nelly Global Practice Director: Edward Olowo-Okere Renaud Seligmann Practice Manager: Hana Brixi Michel Rogy Simon Carl O'Meally Task Team Leader: Yuko Okamura Axel Rifon Perez ABBREVIATIONS AND ACRONYMS ADEB Système d’Aide à la Décision Budgétaire (Budget Management Information System) AFD Agence Française de Développement (French Development Agency) AfDB African Development Bank AI Artificial intelligence AMG Assistance Médicale Gratuite (Free Healthcare Assistance) ANCE Agence Nationale de Certification Electronique (National Agency for Electronic Certification) ANETI National Agency for Employment and Self-Employment ATI Access to information CGSP Contrôle Général des Services Publics (General Control of Public Service) CNAM Caisse Nationale d’Assurance Maladie (National Health Insurance Fund) CNRPS Caisse Nationale de Retraite et de Prévoyance Sociale (National Pension Fund) CNSS Caisse Nationale de Sécurité Sociale (National Social Security Fund) CNTE Centre National des Technologies en Education (National Center for Technology in Education) CPF Country partnership framework CRC Citizen report card CRES Centre de Recherches et d'Etudes Sociales (Centre for Social Studies and Research) CSC Citizen Service Centre CSO Civil society organization DE4A Digital Economy for Africa DFI Development finance institution DGRPA Direction Générale des Reformes et Prospectives Administratives (General Direction of Public Administrative Reforms) DLI Disbursement-linked indicator DPF Development policy financing DU Delivery Unit EEP Eligible expenditure program EFF Extended fund facility EHS Environmental Health and Safety EMF Electromagnetic field ESCP Environmental and social commitment plan ESF Environmental and social framework ESMF Environmental and social management framework ESRS Environmental and social review summary ESS Environmental and social standards EU European Union FM Financial management FMA Financial management assessment FMIS Financial management information system FYDP Five-year development plan G2B Government to business G2C Government to citizens G2G Government to government GDP Gross domestic product GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (German International Cooperation Agency) GoT Government of Tunisia GPEEC Gestion Prévisionnelle des Emplois, des Effectifs et des Compétence (Workforce and Competency Planning) GRM Grievance redressal mechanism HAICOP Haute Instance de la Commande Publique (Tunisian Public Procurement Authority) HCI Human capital index HR Human resources IAM Identity access management ICG International Crisis Group ICRR Implementation completion and results report ICT Information and communications technologies IEC Information, Education, and Communication IMF International Monetary Fund INSAF Human resources management information system IoT Internet of Things IPF Investment project financing IS Identifiant Social (Social Identifier) IUC Identifiant Unique Citoyen (Unique Citizen Identifier) IVR Interactive voice response KFW Kreditanstalt für Wiederaufbau (German Government-owned Development Bank) KOICA Korean International Development Agency LPR Learning performance review M&E Monitoring and evaluation MCSPAPP Ministry of Civil Service, Public Administration and Public Policy MDICI Ministry of Development, Investment and International Cooperation MENA Middle East and North Africa MFD Maximizing finance for development MoA Ministry of Agriculture MoE Ministry of Education MoF Ministry of Finance MoLA Ministry of Local Affairs and Environment MSA Ministry of Social Affairs MoY Ministry of Youth MTCEN Ministère des Technologies de la Communication et de l'Économie Numérique (Ministry of Information Technology, Communication and Digital Economy) OGI Organe de Gestion de l’IUC (IUC Management Body) OGP Open government partnership ONI Organe Nationale de l'interoperabilite (National Organization for Interoperability) P4R Program-for-Results PAPs Project affected persons PARPS Social protection reform support PCN Project Concept Note PDIA Problem drive iterative adaptation PDO Project development objective PE Political economy PEA Political economy analysis PIM Public investment management PIMA Public investment management assessment PIP Public investment projects PKI Public key infrastructure PLR Performance learning review PM Prime Minister PMU Project management unit PNAFN Program Nationale d’Aide aux Familles Nécessiteuses (National Assistance Program for Needy Families) PPP Public private partnership PPSD Program procurement strategy document PREFAT Strengthening Foundations for Learning Project RAP Resettlement action plan RPF Resettlement policy framework RRA Risk and resilience assessment SCD Systematic Country Diagnostic SEP Stakeholder engagement plan SIADE Système Informatique pour l'Administration de la Dette Extérieure (External Debt Management Information System) SIL Specific Investment Loan SLA Service level agreements SMEs Small and medium enterprises SMS Short message service SONEDE Société Nationale d'Exploitation et de Distribution des Eaux (National Society of Exploitation and Distribution of Water) SORT Systematic operations risk-rating tool SP Social protection SR Social Registry SSO Single sign-on STEG Société Tunisienne de l'Electricité et de Gas (Tunisian Company of Electricity and Gas) STEP Systematic Training of Exchanges in Procurement TA Technical assistance TND Tunisian Dinar ToC Theory of change TTN Tunisia Trade Net TUNEPS Tunisia Online E-Procurement System UAE Unité de l’Administration Electronique (Electronic Administration Unit) VfM Value for money WBG World Development Group WDR World Development Report WGI Worldwide Governance Indicators The World Bank Digital Transformation for User-Centric Public Services (P168425) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 8 II. PROJECT DESCRIPTION.................................................................................................. 17 A. Project Development Objective ..................................................................................................... 17 B. Project Approach and Components................................................................................................ 19 C. Theory of Change ............................................................................................................................ 33 D. Rationale for Bank Involvement and Role of Partners ................................................................... 36 E. Lessons Learned and Reflected in the Project Design .................................................................... 36 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 39 A. Institutional and Implementation Arrangements .......................................................................... 39 B. Results Monitoring and Evaluation Arrangements......................................................................... 41 C. Project Cost and Financing ............................................................................................................. 41 D. Sustainability .................................................................................................................................. 43 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 44 A. Economic Analysis .......................................................................................................................... 44 B. Fiduciary.......................................................................................................................................... 48 C. Legal Operational Policies ............................................................................................................... 51 D. Environmental and Social ............................................................................................................... 51 E. Gender ............................................................................................................................................ 54 F. Climate ............................................................................................................................................ 54 G. Grievance Redress Services ............................................................................................................ 56 V. KEY RISKS ........................................................................................................................ 58 VI.RESULTS FRAMEWORK .................................................................................................... 60 ANNEX 1: DLIs, DLRs and Verification Protocol .............................................................. 76 ANNEX 2: Financial Management and Procurement Assessment Report ........................ 84 ANNEX 3: Implementation Arrangements and Support Plan .......................................... 92 ANNEX 4: Digital Divide: Addressing Gender and Inequalities ........................................ 95 The World Bank Digital Transformation for User-Centric Public Services (P168425) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Tunisia Digital Transformation for User-Centric Public Services Project ID Financing Instrument Environmental and Social Risk Classification Investment Project P168425 Moderate Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [✓] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 14-Jun-2019 31-Jan-2025 Bank/IFC Collaboration No Proposed Development Objective(s) The project development objective (PDO) is to improve equitable access to and the quality and accountability of selected Social Protection and Education services through a GovTech approach. Access will be measured in terms of: (i) increase in functioning access points for the selected public services; (ii) Page 1 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) increased usage of the selected public services. Gains in equitable access will be measured in terms of two dimensions: (i) improved Social Protection systems (which in themselves improve the ability of the GoT to identify and serve needy groups); (ii) access for targeted vulnerable groups: (a) low-income groups; (b) women in rural areas; (c) illiterates; and (d) disabled people. Quality will be measured in terms of: (i) user satisfaction; and, (ii) time/efficiency gains in delivery. Accountability will be measured in terms of: (i) increased availability of sector and service-related information; and, (ii) increased responsiveness of public service providers to user feedback. A "GovTech" approach has two core elements: (i) putting the citizen at the centre of the reform process; and, (ii) combining public sector reform innovations, change management and digital technologies. Components Component Name Cost (US$, millions) User-Friendly Institutional and Digital Delivery Solutions 16.30 Public and Private Sector Capabilities for Speedier and Responsive Service Delivery 41.40 Reinforcing Connectivity in Education and Social Protection for more Equitable Access 42.30 to and Quality of Services Organizations Borrower: Ministry of Development Investment and International Cooperation Implementing Agency: Ministry of Technology Information and Communication PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 100.00 Total Financing 100.00 of which IBRD/IDA 100.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing Page 2 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) International Bank for Reconstruction and Development (IBRD) 100.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2019 2020 2021 2022 2023 2024 2025 Annual 0.00 9.23 20.90 27.62 21.19 15.97 5.09 Cumulative 0.00 9.23 30.13 57.75 78.94 94.91 100.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Governance Digital Development, Education, Social Protection & Jobs Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks 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 Yes country gaps identified through SCD and CPF b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or Yes men's empowerment c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating 1. Political and Governance ⚫ Substantial 2. Macroeconomic ⚫ High 3. Sector Strategies and Policies ⚫ Substantial 4. Technical Design of Project or Program ⚫ Substantial Page 3 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) 5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial 6. Fiduciary ⚫ Substantial 7. Environment and Social ⚫ Moderate 8. Stakeholders ⚫ Moderate 9. Other ⚫ Substantial 10. Overall ⚫ Substantial 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 4 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance Assessment and Management of Environmental and Social Risks and Impacts Relevant Stakeholder Engagement and Information Disclosure Relevant Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and Management Relevant Community Health and Safety Relevant Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities Cultural Heritage Not Currently Relevant Financial Intermediaries Not Currently Relevant NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). Legal Covenants Sections and Description Section IA.1(a) of Schedule 2 to the LA: The Borrower shall, through the MTCEN, within its DU, appoint not later than fifteen (15) days after the Effective Date, or such later date as agreed by the Bank, and thereafter maintain, throughout Project implementation, a Project Implementation Team with composition and resources acceptable to the Bank and defined in the Project Operational Manual, to be responsible for day-to-day management of the Project (including the procurement, financial management and environmental and social aspects) Section I.A.1(b) of Schedule 2: The Borrower, through MTCEN, shall, no later than three (3) months after the Effective Date, or such other date as agreed by the Bank, establish, and thereafter maintain throughout Project implementation, the Project Steering Committee with composition acceptable to the Bank and defined in the Project Operational Manual, to provide strategic guidance and oversight of the Project Other legal covenants (since this is the second ESF project): Page 5 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Section I.B.1 of Schedule 2: The Borrower shall ensure that the Project is carried out in accordance with the Environmental and Social Standards, in a manner acceptable to the Bank Section I.B.2 of Schedule 2: the Borrower, through MTCEN, shall ensure that the Project is implemented in accordance with the Environmental and Social Commitment Plan (“ESCP”), in a manner acceptable to the Bank Conditions Type Description Disbursement Section II. B. 1 (b) of Schedule 2: No withdrawal shall be made for payments under Category (2) until and unless the Borrower has furnished evidence satisfactory to the Bank with respect to the achievement of the respective Disbursement-Linked Results (DLRs) as referred to in Schedule 4 to this Agreement and the additional supporting documentation set forth in the Disbursement and Financial Information Letter; Section III.B.2 of Schedule 2: Notwithstanding the provisions of Part B.1(b) of this Section, if any of the DLRs referred to in Schedule 4 to this Agreement has not been achieved, the Bank may, by notice to the Borrower: (a) reallocate all or a portion of the proceeds of the Loan then allocated to said DLR to any other DLR; and/or (b) cancel all or a portion of the proceeds of the Loan then allocated to said DLR. Page 6 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) I. STRATEGIC CONTEXT A. Country Context 1. A sustained transition to democracy and an ambitious reform agenda have marked Tunisia’s path since the 2011 revolution. Tunisia is a lower-middle-income country, with a population of 11.6 million and a gross domestic product (GDP) of US$40.3 billion (2018). Often hailed as the only success story of the Arab Spring, the country has made great strides toward establishing the fundamentals of democracy, including the formation of the National Dialogue Quartet in 20131 and the introduction of a new constitution in 2014. The Government of Tunisia (GoT) has also embarked on an ambitious reform agenda, aimed at boosting civil society and democratic freedom as well as stimulating private sector driven growth and job creation. In 2016, the GoT adopted the Five-Year Development Plan 2016–2020, followed by the Economic and Social Roadmap 2018– 2020, aimed at accelerating the implementation of reforms focused on macroeconomic and fiscal stabilization; the modernization of social safety nets; and the enhancement of private investment, competitiveness, and productivity. In May 2018, the first free and fair municipal elections were held, further anchoring the democratic culture and laying the groundwork for decentralization. 2. The economic situation remains fragile, despite recent modest increase in growth and efforts to contain the fiscal deficit. The instability in the aftermath of the revolution, due to political unrest and terrorist attacks, weakened the investment climate and severely affected economic sectors, such as tourism, that were traditionally engines of growth and sources of foreign exchange. To counter social tensions, the GoT embraced expansionary fiscal policies, including public sector hiring and wage increases, which have impaired public finances. The fiscal deficit and public debt respectively reached 4.6 percent and 74.0 percent of GDP in 2018.2 In addition, the current account deficit widened to 11.0 percent in 2018, and in May 2019, gross international reserves stood at 75 days import cover. Despite these macroeconomic vulnerabilities, GDP growth recovered in 2018 to reach 2.5 percent. This was largely due to stronger performance of the agriculture, services, and export-oriented manufacturing sectors. Progress in terms of poverty reduction and shared prosperity has, however, been slow. In particular, the poverty headcount ratio stood at 15 percent in 2015, and disparities among regions and age groups have persisted or widened. 3. In this context, unemployment has remained extremely high, especially for young educated graduates, women, and populations in the interior regions. Long-standing structural distortions, combined with recent macroeconomic vulnerabilities, have resulted in a private sector that has generated few high-quality jobs. According to the Institute of National Statistics (INS), as at 2018, 33.9 percent of the workforce is employed in industry, 51.7 percent in services, and 13.9 percent in agriculture. In addition, the World Bank (2018) estimates that close to 21 percent of the workforce is vulnerably employed—that is, self-employed without employees or working as unpaid family workers.3 Total unemployment stands at 15.4 percent (2017) and has been much higher among young graduates (30.2 percent), women (23.1 percent), and populations in the interior regions (over 25 percent in the South-West and South-East, compared to 10 percent in the Center-East and North- 1 This includes four key organizations of the Tunisian civil society: the Tunisian General Union of Labor (UGTT), the Tunisian Confederation of Industry, Trade and Handicrafts (UTICA), the Tunisian League Human Rights (LTDH) and the Tunisian Bar Association. The Quartet received the Nobel Peace Prize in 2015 for its decisive contribution to building a pluralistic democracy in Tunisia following the 2011 Arab Spring. 2 Source: IMF. 3 World Bank (2018). World Development Indicators. Page 7 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) East). Significant disparities in labor participation between women and men also exist: in 2017, 25 percent of women were active in the labor force compared to 71 percent of men; and 31 percent of young women were not in education, employment, or training (NEET), compared to 19 percent of young men4. B. Sectoral and Institutional Context Overall Sectoral Context 4. Improvements in governance and public service performance are central to Tunisia’s economic, political and institutional continued transition and to a renewal of the social contract. As noted in the World Bank Performance and Learning Review 2018, the transformation of the Tunisian state will determine in large part the trajectory and pace of the country’s post-revolutionary transition.5 Key dimensions of the transformation include: translating policy and legal reforms into concrete implementation so that the impacts are felt by the Tunisian population; transitioning from a state-centric to a private sector-driven economic growth model; transitioning to a citizen-centric administration; building a more fiscally-sustainable and efficient public sector; reducing the administrative burden for businesses and citizens; using public and private sector innovative technologies; deepening transparency and accountability; and, fostering greater inclusion (World Bank, 2018 Report No. 123957-TN). However, there has been a decline in Tunisia’s public sector performance, with its percentile ranking in terms of “government effectiveness” dropping from 63 in 2010 to 51 in 2018 (Worldwide Governance Indicators, 2018)6. Similarly, Tunisia’s rank in terms of the “quality of institutions” fell from 23 in 2010 to 75 in 2017 (Global Competitiveness Report, 2018). 5. The combination of the latest digital technologies with public sector reform innovations offers an important lever for transforming the Tunisian state. National and sectoral strategies have been developed and implemented to support public sector modernization and digitization. Digital Tunisia 2020 and the Tunisia SmartGov 2020 strategy have a pillar on e-government and a pillar on broadband infrastructure. The e- government pillar aims to “transform the public administration through the adoption of digital technologies and to ensure greater efficiency and transparency, and a stronger orientation towards citizens and businesses”. The complementary broadband infrastructure pillar aims to foster “social inclusion and reduce the digital divide through greater access to information and knowledge, generalizing access to fast broadband, and implementing ultrafast broadband”. 6. The Education and Social Protection sectors are government priorities for digital transformation because: (i) critical reforms are needed in these sectors, (ii) the sectors make an important contribution to human development, (iii) the sectors provide services that most citizens use; and, (iv) citizens say that these sectors and services are important for their lives and for their vision of a new state. The Government of Tunisia (GoT) has an ambitious reform strategy in these sectors: • Social Protection. The new social protection law (AMEN) – approved by the Parliament in January 2019 – sets a strategic framework to make the social protection system more effective, better targeted and more sustainable, and paves the way for the future expansion of more effective social assistance programs. 4 World Bank (2014). Tunisia and the fight for youth inclusion. 5 As outlined in the SCD (2015), the CPF (2016) and the recently approved PLR (2018), “Governance…remain[s] a foundational theme of the CPF”. References (external literature). Similarly, the most recent IMF diagnostic (2018) notes that, “strengthening governance and enforcement in the government’s anti- corruption fight…will help unleash the potential of the private sector to generate more opportunity and jobs for all Tunisians 6 This indicates the rank of a country among all the countries in the world. 0 corresponds to the lowest rank and 100 to the highest rank. Page 8 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Moreover, the pension reform dialogue has been ongoing to introduce new measures to contain the deficit of pension schemes and improve its coverage by limiting social evasion. For example, new measures were adopted on April 30, 2019 that raised the retirement age to 62 years old (and optional to 65 years old). This aims to achieve a more efficient and inclusive social protection system, towards the establishment of a social floor which guarantees minimum benefits for all through the social assistance system, while additional benefits can be offered through contributive social security system. These strategies have a strong focus on digital transformation by aiming to simplify administrative processes to improve efficiency and the user experience, by improving user identification, user databases, interoperability to improve targeting and service efficiency and by aiming to improve transparency and user-orientation, including through improved grievance redressal. • Education. The sector has a five-year plan envisaging a more efficient and learning-oriented sector that furthers human capital development, which is also underpinned by its strategy on “Digital Schools” (Plan Stratégique pour l’Ecole Numérique 2017). The Digital Schools strategy seeks to ensure a digital transformation in the sector to improve service access and quality, including to improve enrollment, school and student monitoring, and digital learning. 7. The Government of Tunisia (GoT) has made progress in these areas, but further progress could be made . Recent achievements include: • Enhancing public service delivery through administrative simplification, conversion to e-services in certain sectors, the launch of a national program to develop a Unique Identification system and a National Interoperability Platform, and the expansion of digitized offices where citizens can get assisted access to services (formerly known as Citizen Service Centers); • Strengthening accountability and user-orientation in service delivery, including through the adoption of the Access to Information Law and the adherence to the Open Government Partnership (OGP); • Constructing the backbone of more efficient digital services, which includes the expansion of digital technologies, increased broadband coverage, and the establishment of a dynamic local ICT sector. This has included: (i) investments in areas with no network coverage (so-called “white areas”); and, (ii) investments in the national network of the public administration (RNIA), (more than 500 connected administrative offices (RNIA 2017), including ongoing investments to connect more than 700 local municipalities). The GoT has also learnt important lessons from previous investments in connectivity. For example, connectivity investments in the health sector showed the importance of adopting a coordinated approach to providing indoor and outdoor connectivity, the importance of ensuring that connectivity quality meets service delivery needs and the importance of providing connectivity as a service; and, • The GoT has also laid the foundations for the digitization of the Social Protection and Education sectors, though much further progress could be made. In Social Protection, it has begun work on: the social survey and social identifier to provide better quality services to beneficiaries; the development of a new targeting model to improve beneficiary identification; the development of an updated management information system which is linked with the civil registry database; the piloting mobile service centers to serve groups in remote areas; and, providing outdoor connectivity to all SP offices. However, the efforts will have to continue to make concrete changes and generate positive impacts on beneficiaries of social protection programs. In the Education sector, progress has been made in strengthening school connectivity, in developing a roadmap for a new information system, in improving data exchange and simplified procedures, and in piloting a new online enrollment system for primary and secondary education. The MoE recognizes that it needs to go further and faster. Page 9 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) The Development Problem 8. Within this context, citizens have identified important challenges at the frontline of service delivery in Tunisia. Based on a mapping of the citizens’ journey to access services in Education and Social Protection, four flagship areas were identified as particularly important: (i) the social assistance system (cash and benefit transfers7); (ii) the social security system (pensions and health insurance); (iii) the digital education management services (including enrollment, student monitoring and drop-out detection); and (iv) the digital learning management system. User experience in these sectors identified various problems (Table 1): (i) Unequal Access. Certain user groups point to difficulties in getting access. This is especially difficult for vulnerable groups in lagging regions (according to the Regional Development Index, RDI) who may not have the information or means to access the service; (ii) Poor Quality. Users complain of poor quality due to long delays and complex service application procedures, which often involve multiple and costly visits to access points; and, (iii) Weak Accountability and User-Orientation. Users point to a lack of accurate information on the service and the associated procedures. They point out to limited ways for them to give feedback or to “be heard”. This contributes to low levels of trust between citizens and administration: for example, 51 percent of Tunisians had a negative perception of the administration in 2016 (GoT, DGPRA, 2016); or, six out of 10 citizens, in 2018, considered that the government efforts in the fight against corruption were insufficient (Afro barometer Survey, 2019). Table 1: Flagship Services: What Tunisian Citizens Tell us about User Experience in Selected Services in Tunisia Key Delivery Operational Identified Problems from Citizen/User Perspective (non- Indicative Number of Users of Event Focus exhaustive) Service Social Protection “I need a Social • Unequal access: long waiting lists due to program budget Primary beneficiaries: poor and social assistance: constraints, unused quota, and targeting errors. vulnerable households. assistance cash and • Time-consuming/costly access: lengthy and paper-based • 285,000 beneficiary benefit” benefit application processes requiring multiple visits to service households of the National transfers. provider facilities. Program for Needy Families • Weak transparency: lack of information on (PNAFN) which provides cash eligibility/procedures; and lack of mechanisms to track transfer and access to free requests. health care. • Poor user-centricity: complex procedures and limited • 650,000 beneficiary feedback/complaints mechanisms; limited payment households of subsidized options. health care cards. “I need social Social • Unequal access: limited service delivery channels, Primary beneficiaries: workers security security: especially in remote regions. who are not currently covered benefits” pensions and • Time-consuming/costly access: lengthy and paper-based under the social security health application processes requiring multiple visits to service scheme. insurance provider facilities. • 450,000 self-employed • Weak transparency: lack of proactive communication on workers (90% of 510,000 self- citizen rights and benefits (old age, disability, employed workers) without supplementary pension, death, family allowances, health social security, including insurance). farmers or workers in agricultural sector. 7Cash transfer programs (i.e. PNAFN – Programme National d’Aide aux Familles Nécessiteuses) and Health Insurance Program which are free and subsidized health care cards (Assistance Médicale Gratuite (AMG1) et Carte de Soins à Tarifs Réduits (AMG2)). Page 10 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) • Poor user-centricity: rigid rules and limited options for • Primary beneficiaries: health payment of contribution fees (modality and frequency). insurance beneficiaries with • Weak authentication of beneficiaries of health insurance new digital card (90% of programs (particularly for free/subsidized cards). population (estimated). • Time-consuming: processes can be lengthy in confirming the eligible benefits and health services. Education Digital School enrolment at primary and secondary level Primary beneficiaries: students, Education • Poor user centricity: lack of adaptation to the needs of parents and teachers. Management specific groups (ICT barriers, access to connectivity). • 190,000 students enrolling in Platform grade 1 in 2019 of which Monitoring of student and school performance 170 000 through online • Lack of proactive communication between parents and enrollment procedure. schools. • 906,000 students enrolling in • Lack of parental access to consolidated information on 2019 in secondary education. “I need to student performance (learning evaluations, exams, enroll my attendance). child in • Fragmented back-office business processes and system. primary or secondary Student learning development and risks school; to • Weak monitoring system for identifying potential students follow at risk of learning difficulties, including risk of drop-out. his/her? • Lack of data, poor data quality, and weak link to the schooling and student register and identifier. improve • Fragmented back-office processes: detection and follow-up his/her systems are lacking; weak coordination and follow-up learning” across ministries. Digital • Lack of accessible and quality online (and face-to-face) Primary beneficiaries: students Learning learning tools for students to catch up on learning lessons. • Number of primary students: Management • Lack of access to digital learning tools (via computer or 1,100,790 (2018) System interactive portals). • Number of secondary • Teachers who do not have access to digital materials to students: 894,305 (2018) complement lesson plans and introduce new pedagogy. • 140,000 teachers in primary and secondary education (in 2018) 9. The problems that users have identified are rooted in three interrelated causes. These causes are: (i) complex service delivery procedures and a lack of appropriate service delivery mechanisms; (ii) public and private sector and civil society difficulties in identifying service users (absence of good quality master data lists) to foster their engagement and change management; and (iii) challenges in providing higher-quality services due to broadband connectivity difficulties. Each cause is briefly summarized below. 10. The first cause of the problems identified by the user relates to complex and inefficient service delivery procedures and a lack of appropriate service delivery mechanisms in the Social Protection and Education sectors: • The social assistance delivery system is reliant on complex administrative processes and fragmented Page 11 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) information and data management systems for monitoring and decision-making. There is also a lack of tools and mechanisms to adapt service delivery to beneficiaries needs (e.g. disabled persons or women): (i) steps to receive cash transfers are complex and digital payment options are limited; (ii) limited options for signing up to or paying pension contributions; and, (iii) there is a slow processing of poor citizens’ health insurance claims. The sector could also strengthen its mechanisms for identifying beneficiaries and tracking their applications to ensure both a simpler experience for the users and a more manageable workload for social workers. • The education delivery and administrative system is also characterized by a reliance on paper-based and manual procedures, complex administrative processes and weak information management systems for management decision-making. There are also a lack of user-friendly mechanisms and channels for users to access key services: (i) weaknesses in the enrollment system and a lack of tools for monitoring student progress and detecting students “at risk”, compounded by poor communication between parents and schools, which limits transparency and accountability; and, (ii) limited availability of, and access to, quality learning tools and materials for teachers and students. These administrative inefficiencies also contribute to sub-optimal learning outcomes, where there are continued weaknesses in terms of access to preschool education, high drop-out rates in secondary education and limited quality of education more broadly. • In both sectors, there is also a need to improve service access points – physical and digitized – to improve access to high-quality services for all and especially for vulnerable groups. The GoT has made progress in this area (Box 1), but there are three issues that need attention. First, there is a need to complement digital service access with physical or “assisted” access. Some citizens need human-assisted access to services, such as low-income groups, illiterates or the disabled, not least because of their low levels of ICT literacy. Moreover, limited internet access is especially prevalent among poorer households in rural areas: broadband Internet coverage was 7 percent among rural households in 2015, compared with 38 percent among urban households. Second, there are regional imbalances in terms of service coverage. In 2016, around two-thirds of sub-national administrative regions (the délégations covering 6 million people) has access to less than 50 percent of priority services. There is therefore a need to improve existing access points and ensure their sustainability, and to expand these access points in the under-served areas. Third, one key barrier to improved service access is a lack of information – on the part of citizens (and especially vulnerable citizens) – about the services available to them. Box 1: Progress, Challenges and Strategy for Digitized Access Points in Tunisia Background: Government Initiatives to reduce service access constraints and address the Digital Divide In 2009, the GoT began experimenting with the installation of citizen service centers (CSCs) across the country with the objective of increasing citizen access to administrative services. Today, there are 50 operational CSCs that provide access to different services (e.g. documents/certificates, general assistance, change of address, application for membership, loan application, etc.) managed by 10 government service providers (selected following a nation-wide survey administered by the Presidency of Government in 2016). The service providers within the CSCs are: the Tunisian Company of Electricity and Gas (STEG), National Society of Exploitation and Distribution of Water (SONEDE), Tunisia Telecom, Tunisian Post Office, the municipality, Tax Collection Offices, the National Health Insurance Fund (CNAM), the National Social Security Fund (CNSS), the National Retirement Fund (CNRPS) (which are structures attached to the Ministry of Social Affairs) and the National Agency for Employment and Self-Employment (ANETI). The experimentation phase has highlighted important lessons: (i) absence of a legal and institutional framework : CSCs operate on an ad-hoc basis through a framework memorandum of understanding signed between the government and government service providers; (ii) understaffing and civil service management constraints contributing to high staff attrition and low staff capacity; (iii) poor business models and financial arrangements undermining sustainability of the model; (iv) lack of interoperable back-office systems amongst service providers which weakens service quality (long delays, and high transaction costs); and (v) slow adaptation to digital transformation plan of the government and future needs of citizens. Page 12 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) New vision: First Generation Digitized Access Points to improve service access and quality to citizens, notably in rural areas and to vulnerable groups The government’s new action plan (2019) rests on digitizing existing access points and rolling out at least 69 access points to p rovide human-assisted access including but not limited to the following services: (a) social assistance application; (b) social security enrollment and updates; (c) health insurance enrolment; (d) assisted school enrollment. Access to other administrative services, which can be delivered through such access points will also increase (where feasible and appropriate). The operation will support the deployment of digitized access points in determined geographic areas (to be listed in the operations manual) that will cover around 2 million citizens. The operation will support the government’s shift to a multi-channel, digitized and integrated public service delivery model by supporting a new generation of digitized access points that will also help reduce the digital divide. These will take the form of three models that will be deployed selectively depending on local access needs: (a) stationary access point with multiple single-service windows (30); (b) stationary access point with single multi-service window (25); and, (c) mobile access point with single or multiple service windows (14). (See Component 2). 11. The second cause, which impacts directly on the first, relates to the need to strengthen public and private sector capabilities to foster a more responsive, user-oriented and coordinated approach to the modernization and digitization of the Social Protection and Education sectors. Five interrelated areas are important: • There is a lack of reliable and real-time data on the users within and across sectors. This slows down user identification, which in turn slows down service access, quality and targeting. Relatedly, there is a need to ensure that sectoral initiatives are linked to, and better aligned with, the new national program for interoperability and identification. This is needed because, with no data exchange, each sector needs to collect and validate its own information, which duplicates efforts and costs, which translates into slower delivery at the frontline; • There are limited mechanisms for strengthening accountability and citizen engagement. This contributes to an unresponsive delivery system. There is a need to: (i) simultaneously strengthen internal government (“supply side”) accountability mechanisms – through better monitoring of service quality – and external societal (“demand side”) accountability – through information disclosure and citizen engagement; and, (ii) to close the accountability loop by ensuring that citizen feedback leads to improvements in service delivery. This will create greater incentives for service improvements, which leads to the next point; • There is a need to further strengthen the capacity, coordination and incentives of the public sector to implement the modernization and digitization of the flagship services. Areas that need greater attention: (i) strengthening the technical capacity of the public administration – and improving the involvement of the private sector – in developing, adopting and implementing new digital and institutional innovations; and, (ii) strengthening change management and incentives for change (see risk section). In the UN e- government Index (2018), Tunisia’s ranking has moved from 73 in 2016 to 80 out of 193 countries. This will require concerted support, plus the adoption of a targeted, realistic and well-sequenced approach to the change process. Results-based lending programs would also help create further incentives for change. • There is a need to create greater opportunities for the private sector to improve internet connectivity, to participate in solving public service problems and to provide innovation. This would foster better and quicker innovation and reduce the burden on a stretched public sector. Key areas that need attention: stimulating private sector investment (for example in connectivity); creating public sector data platforms to spur private sector activity; building public-private collaboration in digital solution development; and supporting a modern, private-sector “GovTech” regulatory environment. • Finally, there is a need to further strengthen the enabling environment, in targeted areas, for improved private sector participation and for the accelerated implementation of user-centric public services. There is ongoing policy, legal and regulatory reform processes that are complementary but not within the scope Page 13 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) of this operation, such as the new Data Protection Law or other, overarching Telecoms regulations. In the context of this operation: (i) there is a need to establish a Digital Agency to manage the digital transformation and to pass the new Digital Law to improve private sector investment and competition in the telecoms sector and to accelerate public sector digitization by, amongst others, strengthening digital trust, information security, and interoperability; (ii) there is a need to further enable public service performance, accountability and access through establishing the Open Data Legal Architecture and strengthening the legal framework on digitized access points; and, (iii) there is a need to reform the enabling environment to incentivize a more coherent, optimal and private-sector-led approach to expanding broadband connectivity coverage in general and for schools, social protection offices and digitized access points, by updating the National Broadband Plan (including the new Digital Infrastructure Plan), by integrating this national approach into an updated schools connectivity strategy and by mobilizing additional public and private resources to meet school connectivity needs for optimal service delivery (see the next cause). 12. The third cause relates to the inequitable access to and weak quality of broadband connectivity at the level of frontline service providers and users. This is a critical third layer of the service delivery problem in Tunisia for three main reasons. First, a lack of connectivity at the level of frontline service providers perpetuates a reliance on paper-based and manual processes. These manual processes, as noted above, increase transaction costs and slow down the handling and processing of service applications and delivery. Second, weak connectivity limits the adoption of new institutional and digital solutions, such as simpler and user-friendly approaches to applying for a service. This is a missed opportunity, as these solutions can improve access, quality and accountability of the flagship services supported under this operation. Third, unequal connectivity reflects and sustains the “digital divide”. Connectivity challenges tend to be most acute in the poorer and less economically prosperous parts of the country; so-called “lagging regions”. Moreover, in the same regions, there is unequal access to high-quality Education and Social Protection services, especially for vulnerable groups. Therefore, Digital Tunisia 2020 seeks to foster improved social inclusion by generalizing access to knowledge, information and fast broadband. 13. A mapping of connectivity challenges in the Social Protection and Education sectors presents a varied picture. Overall, connectivity difficulties persist in terms of: (i) a lack of network coverage for frontline service providers (i.e. outdoor connectivity); (ii) a lack of broadband connectivity and ICT equipment to ensure that service providers can use internet services within their premises (i.e. indoor connectivity); and, (iii) challenges in terms of the quality and maintenance of IT services (i.e. availability, service quality, bandwidth). More specifically, the following problems are present: • Ensuring connectivity meets service delivery needs. • Education sector. Schools were categorized according to their connectivity status (Table 2). There exist several solutions to meet the different needs of schools according to each category. Following a connectivity feasibility diagnostic, an action plan will be developed and adopted to help determine the most appropriate solutions for each category of schools. This will include: (i) a dynamic map of schools connectivity status, (ii) an update of service level agreements (SLA) standards (including bandwidth provision per student or per site, opportunities to use schools as access points for local communities, monitoring and payment conditions), (ii) functional and technical specifications, and a multi-phased procurement proposal (which includes strong prioritization and sequencing, and the deployment of appropriate connectivity solutions). Page 14 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Table 2: Typology of schools by connectivity status Zone Current school coverage Number of schools8 ALPHA (urban) Fiber (mostly) 700 BETA (peri-urban) ADSL 2,307 GAMMA (rural 3G/4G 2,593 remote) [* 3G/4G in β and γ] WHITE AREA Not covered 579 • Social Protection sector. While all Social Protection offices already have outdoor connectivity, its quality varies and needs upgrading. Therefore, the needs in the Social Protection sector relate to the need to provide better indoor connectivity which meet the adequate service standards to 250 Social Protection offices, located across more than 200 under-served districts. • Digitized Access Points. Existing digitized access points are housed in existing premises with outdoor and indoor connectivity. However, to ensure service access in the under-served regions, 55 new stationary digitized access points – which will be set up in existing premises – would require indoor connectivity equipment and services. • Improving outdoor connectivity modalities and delivery mechanisms by private sector. Considering the telecoms landscape in Tunisia, new connectivity investments to serve such service providers will also need to address the following: - First, it is imperative to ensure the maximum coherence between national and sectoral (use cases) connectivity initiatives. - Second, there is a need to boost private sector financing for development. Connectivity solutions will be provided by the private sector. However, there is a role of public policy and investment to address the following: to provide necessary incentives to ensure that the private sector strengthens connectivity in the most lagging and “white zones”; to provide incentives and regulation to ensure that connectivity is provided as a complete service so that providers have a full package of high- quality services with no stranded assets; to ensure that connectivity contracts for the private sector when linked with deploying fiber optic infrastructure are won and managed in an open, competitive and efficient manner through a wholesale approach and through “open access” to outdoor connectivity infrastructure; and, to strengthen the enabling environment to ensure a more open and competitive connectivity sector. - Third, there is a need for dedicated attention to improving the connectivity of frontline service providers in lagging regions, to address the digital divide and the weak access to services of vulnerable populations. - Fourth, there is a need to ensure that additional public and private resources are allocated to school connectivity in Tunisia, including through the ICT Development Fund, which is currently contributing to the financing of national ICT infrastructure and connectivity projects, for example the “white areas” and the national network of the public administration (RNIA) projects. 8 Numbers will be reverified by effectiveness in light of the ongoing education connectivity study. 9 Number to be reverified before effectiveness. Page 15 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) C. Relevance to Higher Level Objectives 14. In response to these challenges, the operation seeks to support the GoT in improving equitable access to and the quality and accountability of flagship services in the Social Protection and Education sectors through a GovTech approach. A "GovTech" approach has two core elements: (i) putting the citizen at the center of the reform process; and, (ii) combining public sector innovative reforms, change management and digital technologies. 15. The operation is fully aligned with the achievement of core GoT priorities: • Strategy for Development and Economic Reform. The GoT reform agenda is set out in the Note d’Orientation Stratégique10, and the Five-Year Development Plan (FYDP) for 2016-2020. The FYDP focuses on: (1) financing the economy; (2) fiscal consolidation including public sector reform; (3) human capital development; (4) redesign of the social security system; and (5) business climate and private sector investments. The operation contributes to objectives 2, 3 and 4. The Prime Minister has called for digitization to accelerate these reforms and boost economic growth. He has declared digitization of the Tunisian public administration and economy as one of the top three priorities for Tunisia in the Development Roadmap 2019.11 • Strategy for Digitization. Linked to the national development strategy, PNS and the SmartGov 2020 Strategy, aim at using digital technologies to accelerate socio-economic development, and to make Tunisia an international leader in digitization. The operation supports two complementary pillars of this strategy: (1) the pillar on E-government/GovTech seeks to “transform the public administration through the adoption of digital technologies and to ensure greater efficiency and transparency, and a stronger orientation towards citizens and businesses”; and, (2) the pillar on broadband infrastructure aims to foster “social inclusion and reduce the digital divide through greater access to information and knowledge, generalizing access to fast broadband, and implementing ultrafast broadband”. These strategies complement existing strategies on the modernization of the public administration and public service delivery system in Tunisia, namely the Strategy for the Modernization of the Public Administration (2017) and the Strategy for Civil Service Reform (2017). These strategies have also been translated into government “action plans” that lay out the priority actions and sequencing for 2019 and 2020; a number of these actions are integrated into this operation.12 • Social Protection and Education Strategies. The operation is fully aligned with the strategies in these sectors, as outlined in Section B above. 16. The operation is fully aligned with the World Bank country-level and global corporate priorities: • WBG Twin Goals. The operation is expected to contribute to the achievement of World Bank Group’s strategic goals of ending extreme poverty and boosting shared prosperity in a sustainable manner by improving the access to and quality of services that enhance socio-economic wellbeing and human development. It has a focus on shared prosperity by focusing on service delivery in poorer areas and on 10 Following the 2014 presidential and parliamentary elections, the Government developed a concept note, the Note d’Orientation Stratégique, for a 2016- 2020 development plan. The Note d’Orientation Stratégique was organized around five strategic pillars: (a) good governance; (b) a dynamic “hub” economy; (c) human development and social inclusion; (d) regional development; and (e) green growth. The Note was followed by the Five-Year Development Plan, approved by Parliament on April 12, 2017. 11 https://www.leaders.com.tn/article/26078-la-feuille-de-route-2019-de-youssef-chahed 12 These action plans are supplemented by “livres blancs” notes synthesizing the action plan, the larger objectives of the work being embarked on, and donor involvement in the areas of (a) HR mobility/redeployment; (b) simplification of administrative services for citizens and businesses; (c) citizen service centres; and (d) digitalization. These action plans have been endorsed by the Minister of Major Reforms and will be approved by a Ministerial Council in May 2019. Page 16 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) improving access to services for the more vulnerable segments of the population. • Enlarged MENA Regional Strategy. The project is aligned with the core elements of the enlarged MENA strategy and is emblematic of an expanded approach that harnesses the potential of digital technologies to improve equitable access to, and the quality of, public services. Restoring public trust and credibility in the public provision of social assistance and the effective management of education services will be instrumental in renewing the social contract between citizens and the state. Digital technologies provide a powerful means of reshaping the culture of public service in Tunisia. The project takes important steps to center public service delivery around the needs of citizens, reducing time and cost in accessing services while increasing equity of access, transparency and accountability. Progress and experience in this operation will serve as a model for broader application in Tunisia and in other countries in the MENA region and beyond. • Tunisia Country Partnership Framework (CPF). The operation is fully aligned with the Tunisia Country Partnership Framework (FY2016-2020), recently re-validated and extended by one year, through the Performance Learning Review (PLR) (2018). It supports an overarching objective of building a new social contract. It also supports the three pillars: it supports pillar one on fiscal efficiency by improving efficiency in the selected sectors; it supports pillar two on addressing regional disparities by improving access to, and the quality of, services in under-served regions; and, it supports pillar three on social inclusion by targeting vulnerable groups. The operation also contributes to improvement in human development services, thus contributing to the Human Capital initiative. • Maximizing Finance for Development (MFD). The operation respects and promotes the principles outlined in the MFD corporate policy by: (i) incentivizing a GovTech policy environment that promotes a modern, private sector oriented approach (such as the Digital Law); (ii) incentivizing private sector participation and innovation by bringing in private sector expertise to support digital solution development and by creating open data platforms for private sector analytics enterprises; (iii) stimulating private-sector connectivity investments; (iv) procuring solutions on an infrastructure and software as a service basis; and, (v) placing emphasis on fit-for-purpose and value-for-money technologies. These points are also reflected in the Program Procurement Strategy Document (PPSD). • Other Corporate Priorities. The project operationalizes the corporate priorities on GovTech, as well as on the Digital Economy for Africa (DE4A) and MENA Tech Initiative. Digital technology brings opportunity, paving the way to create new jobs, increase productivity, and improve public services. Yet it is rarely sufficient as outlined in WDR 2016 on “Digital Dividends”. It should be coupled with addressing institutional bottlenecks, undertaking business process reengineering, pro-actively involving relevant stakeholders, including public servants and addressing issues of the digital divide (see also WDR 2017 on Governance and Law). II. PROJECT DESCRIPTION A. Project Development Objective 17. To address the above-mentioned problems, the project development objective (PDO) is to improve equitable access to and the quality and accountability of selected Social Protection and Education services through a GovTech approach. • Access will be measured in terms of: (i) number of functioning access points for the selected public services; and, (ii) increased usage of the public services selected by beneficiaries. Gains in Page 17 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) equitable access will be measured in terms of two dimensions: (i) improved social protection systems (which in themselves improve the ability of the GoT to identify and serve needy groups); and, (ii) access for targeted vulnerable groups: (a) low-income groups; (b) women in rural areas; (c) illiterates; and (d) disabled people. • Quality will be measured in terms of: (i) user satisfaction; and, (ii) time/efficiency gains in delivery. • Accountability will be measured in terms of: (i) increased availability of sector and service-related information; and, (ii) increased responsiveness of public service providers to user feedback. • A GovTech approach has two core elements: (i) putting the citizen at the center of the reform process; and, (ii) combining public sector innovative reforms, change management and digital technologies. 18. Progress towards the achievement of the PDO will be assessed using the following PDO indicators. The data will be generated drawing from administrative data and targeted data provided by service users. Certain baselines will be reverified during year one. The intermediate indicators are outlined in the results framework. Equitable Access • PDO 1: Increased access to the targeted Social Protection Services (Social Assistance and Social Security)13. The annual target values result from the sum of the annual target values of two sub- indicators: i) number of households (applicants and beneficiaries) eligible for social assistance according to the new targeting process; and, ii) number of new social security affiliations among the target population. • PDO 2: Increased access of “target vulnerable groups”14 to digitized access points. Quality • PDO 3: Increased user satisfaction15 on social assistance, online enrollment and Digital Learning Management System. Accountability • PDO 4: Published barometer reports on the flagship services (Social Protection and Education) and ministerial decisions taken based on report recommendations. 19. The following beneficiaries will be targeted through the project: • Primary beneficiaries: these are the end-users of the selected services who will benefit from improved access and quality. Special attention is given to groups with particular difficulties in accessing the selected services and in making their voices heard in service delivery. This includes: (a) low-income groups; (b) women in rural areas; (c) illiterates; and (d) disabled people. 13The beneficiaries of these two services belong to a vulnerable population of low-income people. Thus, with regard to social security, the target population includes the self-employed, including the poor and vulnerable, who have very limited income and are currently not covered by any social security, including agricultural workers. 14 Target vulnerable groups, in addition to low-income groups are: women in rural areas; illiterates; and disabled groups. 15 Satisfaction could be measured on the 5-point scale from “Very Unsatisfied” to “Very Satisfied.” The parameters will be clearly defined to ensure simple measurement and attribution to the project investments (for example, very focused questions such as: do you find the resources you need on line?). The GoT is aware of the strengths and limitations of user satisfaction surveys. It is also aware that this is one of many metrics. It is also aware that action needs to be taken to improve user satisfaction. Page 18 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) • Secondary beneficiaries: these include: (a) the government agencies involved in the operation (including line Ministries, civil servants at national and regional level in the administrations) that will benefit from improved systems; and, (b) public and private sector agencies with a stake in the GovTech ecosystem. B. Project Approach and Components 20. In response to the development problems, the project complements existing investments in Tunisia by operationalizing a GovTech approach that has two core elements: (i) putting the citizen at the centre of the reform process; and, (ii) combining public sector reform innovations, change management and digital technologies. This approach aims to: (a) put the user at the centre of service delivery reforms; (b) combine public sector reform innovations with change management and fit-for-purpose digital technologies; (c) enhance equity by strengthening the efficiency and quality of services, and by ensuring multi-channel delivery – e-access and assisted access – to address the digital divide; (d) improve public sector performance and citizen trust by enhancing citizen participation, transparency and accountability; (e) develop public sector platforms to facilitate the emergence of innovation and to provide opportunities for private sector growth and innovation; and, (f) proceed in iterative phases, ensuring learning and impact before wider digitization of the public administration (World Bank, 2018). International and Tunisian experience suggest a strong potential for GovTech to address the identified problems. 21. Based on the project’s Theory of Change (see page 31) and preparatory diagnostics (see background Technical Notes)16, the activities are structured around three mutually-reinforcing components (Figure 1). The components focus on the Social Protection and Education sectors and four flagship areas: (i) the social assistance system (cash and benefit transfers); (ii) the social security system (pensions and health insurance); (iii) the digital education management platform (enrolment, student/school monitoring and drop-out detection); and, (iv) the digital learning management system. It is also expected that the project investments will have spillover effects by building common public sector capabilities and systems to enable a more rapid digitization of other sectors and services in the future: • Component 1 focuses on simplifying, digitizing, and optimizing key administrative processes and introducing user-friendly digital and institutional solutions to improve user access and experience, and to address the digital divide on the demand side. • Component 2 complements Component 1 by building the public and private sector capabilities for speedier and more responsive service delivery. It does so by enhancing user identification, improving citizen engagement, implementing change management and incentivizing critical reform uptake. • Component 3 enables the accelerated adoption and implementation of the solutions provided under Components 1 and 2. It enables improved access, quality and accountability of the selected services by addressing the indoor and outdoor connectivity needs in targeted Education and Social Protection service provider facilities, and to address the digital divide on the supply side. 22. A central element of the operational design is to create opportunities for private sector activity to spur innovation, to improve services and to reduce the burden on public sector systems and capacities. The main ways this will be done in the operation include: (i) procuring digital solutions, infrastructure and software “as a service” from private providers; (ii) adopting fit-for-purpose and value-for-money technologies; (iii) incentivizing a policy environment that promotes a modern, private-sector oriented approach (such as the 16 See Technical Appraisal Notes produced during project preparation: Note 1_Service Delivery in Tunisia; Note 2_Risks; Note 3_ Connectivity Page 19 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Digital Law); (iv) incentivizing private sector participation and innovation by bringing in private sector expertise to support digital solution development and by creating open data platforms for private sector analytics enterprises; (v) stimulating private-sector outdoor connectivity investments. These points are reflected in the components and the Program Procurement Strategy Document (PPSD). 23. To achieve the PDO and to respond effectively to the identified problems, this operation includes Disbursement Linked Indicators (DLIs) (20 percent). The rationale for this approach is that it allows for disbursement against eligible expenditures as well as the verified achievement of specific products or services considered essential to meeting the PDO. Specifically, this will enable closer management of complex and high-value investment contracts, which are critical to the PDO. A complementary results-based component is necessary because impact is greater where there is a combination of technological inputs and targeted incentives for institutional change. Moreover, given the weaker incentives for reform in certain areas, the DLIs are used to incentivize reform adoption and implementation. Figure 1: Component Summary Component 1. User-Friendly Institutional and Digital Delivery Solutions (US$16.3 million ) 24. This component aims to simplify and digitize key administrative service delivery processes and introduce user-friendly institutional and digital solutions to improve user access and experience, and to address the digital divide. This component addresses the first root cause of sub-optimal service delivery (Section B) by supporting: (i) change management to support the design and uptake of user-friendly solutions to identified delivery problems; (ii) simplification and digitization of selected administrative bottlenecks in the delivery chain in order to reduce the time, complexity, documents requested and visits for accessing the service; (iii) Page 20 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) user-friendly digital applications for service users in order to ensure easier access to services17; and, (iv) rehabilitating and expanding digitized access points in order to improve access for all and for vulnerable groups. A dedicated program of change management (under Component 2.3) will be financed and implemented to support the development, uptake and implementation of the new GovTech solutions described under this component. Activities are divided into three sub-components. 25. 1.1. Improving Social Protection Delivery Efficiency, Accountability and User-Friendliness (US$ 8.5 million). This sub-component focuses on implementing GovTech innovations to improve the overall social protection delivery system. This will enable the future improvement of all social assistance programs and will specifically improve the delivery of the social assistance and social security systems • Social Assistance: Cash and Benefit Transfers (US$4.3 million). This focuses on the delivery of social assistance transfers and benefits (including the National Programme of Assistance to Needy Families (PNAFN) and the Indigent Health Insurance Program (free and subsidized health services) for the neediest groups (AMG1 and AMG2)). The main activities are: (i) an “As-is-to-Be” review of administrative processes and the implementation of measures to simplify and/or digitize relevant processes to make them more efficient and user-friendly; (ii) operationalizing the new targeting method and upgrading the information system to improve efficiency in identifying and serving beneficiaries, to provide better quality information for delivery decisions and to strengthen the backbone for high-quality digital services18; and, (iii) stimulating GovTech solutions for the users and providers in priority areas (Table 3). • Social Security: Pensions and Health Insurance (US$4.2 million). This focuses on the sustainability and coverage of social security benefits and the quality of delivery for target low-income groups. The main activities are: (i) undertaking an “As-is-to-Be” review of administrative processes and implementing measures to simplify and/or digitize relevant processes to make them more efficient and user-friendly; (ii) upgrading the information system to speed up digital services, to make the pensions enrollment process more efficient and to improve detection of under-reporting19; (iii) expansion of new social protection / universal health care cards to strengthen the authentication of beneficiaries in accessing health insurance and services; and, (iv) stimulating GovTech solutions for the users and providers in priority areas (Table 3). • Leveraging other programs and investments in the sector. The operation will not finance devices for end- users but will do the following: (a) it will finance a limited number of tablets, through a service contract, for social workers to undertake and complete the social survey; and, (b) the MSA will mobilize its internal financing and other donor investments (such as the planned investment by the Millennium Challenge Corporation) to provide needed devices at the level of the SP offices. The project will leverage investments under the Social Protection Reform Support Project (PARPS, US$4.7 million, closed in June 2019) to continue the modernization of the social protection delivery system and to facilitate the accelerated adoption of the above-mentioned reforms and solutions. For example, the social survey has been completed for about 330,000 households, and this operation is expected to support the evolution of the registry database, by covering not only all current beneficiaries (900,000 households) but also applicants. Hence, the operation finances operating costs (transportation for household visits) and a limited number 17 CivicTech innovations offer tried-and-tested technologies to: (i) ease access to service-related information, (ii) facilitate better access to services; and, (iii) increase citizen engagement and government responsiveness (if the conditions are right). It capitalizes on classic devices (smartphones, tablet computers), and social media, interactive totems, panels and monitors. 18 This includes developing a targeting model using artificial intelligence and machine learning to maximize the accuracy to predict the welfare level of applicants/beneficiaries and integration of the targeting model into the new operational procedures. This will include a system to monitor and recertify beneficiaries (including development of a case management system to provide customized services to individual persons). 19 This includes through improved data exchange between the Ministry of Finance and the National Pension Fund (CNSS) Page 21 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) of tablets and will leverage the trained social workers and 1,600 tablets purchased under the PARPS. For targeting, the development of a model is underway, and this project will focus on the improvement and full operationalization of the model. For pensions, the PARPS financed the assessment of selected procedures for the pension system and the recommendations from these assessments are expected to provide direct inputs to this project. Lastly, the project will support the expansion of new digital cards (activity (iii) in the previous paragraph), by fully capitalizing on the government’s own innovative initiative to revamp the health insurance system (CNAM SEEDS). 26. 1.2. Improved Education Delivery Efficiency, Accountability and User-Friendliness (US$4.6 million). This sub- component focuses on applying GovTech innovations to improve selected aspects of the education delivery systems, in general, and the specific delivery of targeted services related to the digital education management platform (enrollment, student/school monitoring and drop-out detection) and the digital learning management system. • Digital Education Management Platform and Services (US$3.1 million). This focuses on education management efficiency, accountability and user-friendliness through simplifying and digitizing key administrative processes and introducing user-friendly digital and institutional services. The main activities are: (i) undertaking an “As-is-to-Be” review of administrative processes and implementing measures to simplify and/or digitize relevant processes to make them more efficient and user-friendly; (ii) upgrading the Education information system, which will support the implementation of the new GovTech solutions and improved information for management decisions; and, (iii) stimulating GovTech solutions for the users and providers in priority areas (Table 3). • Digital Learning Management System (US$ 1.5 million). This sub-component aims to improve student, teacher and inspector access to, and usage of, high-quality learning materials and services through the design and implementation of a Digital Learning Management System. To complement existing investments in this area,20 the main activities under this operation are: (i) developing and implementing a databank and network for channeling, curating and accessing the digital learning material; (ii) designing, testing and deploying business models to spur the creation of relevant and useful digital pedagogical content for schools (existing content, localizing available content, copyrights purchase, and so on); and, (iii) stimulating GovTech solutions for the users and providers in priority areas by developing and expanding digital learning resources for teachers, school inspectors and students, by stimulating the public and private sector to produce content and by stimulating investment in user-friendly tools to enhance the learning experience (Table 3). • Leveraging other programs and investments in the sector. Component 1 investments will also leverage the World Bankfinanced project “Strengthening Foundations for Learning Project” (PREFAT) (US$ 100 million). The PREFAT, currently under implementation, seeks to improve the learning environment in primary public schools. PREFAT supports the development and delivery of digitized services to: (i) improve teacher pedagogical skills and content knowledge; (ii) improve the quality of instructional support provided by primary school inspectors and pedagogical counselors; and (iii) promote literacy-rich classroom environment. Component 1 of the GovTech operation will complement and leverage the PREFAT operation in the following ways. First, the GovTech operation will provide new platforms for education management and learning management. PREFAT will provide content that will be adopted in these platforms. Second, the GovTech operation will develop, pilot and test innovative digital learning content that could be adopted and scaled via the PREFAT operation. Third, close coordination between 20Additionally, the project will ensure coordination with complementary operations financed by the World Bank and other donors (AfDB/EU/UNICEF) working specifically on the areas of curriculum reform, pedagogical reform, teacher training and assessment. Page 22 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) GovTech and PREFAT will be assured by National Center for Technology in Education (CNTE). The CNTE is responsible for the development and coordination of all education digitized services under both the PREFAT and GovTech. The CNTE works in close collaboration with the education and training divisions of the MoE to define the scope and design of digitized services. Through both Projects, the CNTE will carry out calls for tenders to recruit consulting services from the private sector to develop and test the new solutions. The CNTE has a team of experienced engineers available to support this process. Fourth, the GovTech operation will be able to leverage the provision of devices under PREFAT. The CNTE through the PREFAT will procure several thousands of tablets that will be distributed to primary school teachers, advisors and principals to support the introduction of the new education digited services. The tablets will also be used by beneficiaries for the new applications developed for the education management platform under Component 1 of this operation. The CNTE will monitor the impact of the tablets on the adoption of digitized services and satisfaction of users. Additional devices will be procured from the Ministry budget and other donors (see Component 3). Table 3: Summary of key user-oriented GovTech solutions under Component 1 Sub-Component Problem GovTech solution to be developed and implemented under Component 1 Social Assistance: Manual and inflexible A digital cash transfer payment system to ease transfers. Cash and Benefit payment modality. Transfers Slow paper-based process Digital identification of beneficiaries of health insurance to speed up their access to care services with reliable and faster authentication, verification of eligibility and prompt processing and follow-up of their services. Complex procedures and Introduction of a simplified “case management” system – for social workers and lack of systematic users – to provide a simpler access to recommended programs/benefits. information on available programs. Weak user-oriented A strengthened grievance redressal (GRM) by improving internal processes, (with redressal. an initial focus on new targeting process), linking to the national GRM system ‘E- People’ and improving the user inter-face in the GRM system (online, phone/voice and smartphone). Social Security: Cumbersome and paper- Digital solutions for improved affiliation, registration and declaration in the Pensions and based approach to signing pension system to facilitate easier user access and improve quality. Health Insurance up to pension system. Difficulties and lack of Digital pension contribution systems while providing more user-oriented flexibility in paying pension payment modalities (e.g. monthly contributions instead of quarterly). contributions. Poor systems for Development and operationalization of a machine learning system to monitoring and responding automatically monitor social security compliance. to social security compliance. Digital Education System could be improved Strengthened digital enrollment system to allow for a simpler user interface, to Management to become more user- enable better tracking and redress, to allow for better authentication of students Platform and oriented. and parents, and to enable easier payment. Services Weak education Designing and operationalizing a new digital education management platform21 management system that to improve the quality of interaction between parents, students and schools, to is not fully functional or fit- strengthen user access to critical service information and services, and to for-purpose. improve accountability.22 21 This will draw on the the previous existing systems of “myschool” for primary education and “eduserv” for secondary education. 22 Parental and community engagement to strengthen accountability and quality improvement will be integrated in the design of the education management Page 23 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Weak mechanisms for Development of a new alert system for students at risk of learning challenges, detecting, and responding including dropping out, to better detect and respond to students and risk. to, students at risk. Cumbersome, costly and Digitizing the national examination management process to improve student long process for enrollment experience, to improve accuracy of information and reduce opportunities for and accessing exam exam fraud. material. Digital Learning Lack of fit-for-purpose Pilot and stimulate the development of cutting-edge pedagogical resources for Management digital content for teachers teachers and inspectors to deepen knowledge of teachers and inspectors, help System and inspectors. prepare classes, and provide additional materials to enrich teaching. Lack of fit-for-purpose Pilot and stimulate the development of cutting-edge pedagogical resources for digital content for students. students to catch-up on missed classes, to strengthen learning in selected areas, to prepare for exam and class assignments and to reinforce student autonomy. Poor use and uptake of new Pilot and stimulate the development of user-friendly interface tools – technologies to enhance applications and technologies online, smartphone, kiosk-based – to improve learning access and access to, usage of and quality of digital content (such as Virtual Reality or experience. interactive kiosks at school). 27. 1.3. Improving Access and Quality for All: Digitized Access Points promoting digital inclusion (US$3.2 million). To complement sub-components 1.1 and 1.2, the operation will further strengthen access to the selected Social Protection and Education services beyond the ten priority services currently delivered through these access points, by improving and expanding physical, digitized access points in the most under-served regions. This will improve access for all citizens in the vicinity but is especially necessary for reaching the target vulnerable groups: low-income groups, women in rural areas, illiterates and the disabled. Such groups often do not have the means to independently access the above-mentioned digital solutions and therefore require extra assistance: • Improving and Expanding Digitized Access Points (US$3.2 million). This will finance the rehabilitation and expansion of digitized access points (Box 2). These are one-stop-shops for assisting people in accessing existing digital services, and for accepting and transmitting service-related applications. These access points will be digitally connected and equipped for indoor connectivity (see Component 3). These access points will be mainly housed in existing public facilities and postal offices. They take the form of three models that will be deployed selectively depending on local access needs: stationary access point with multiple single-service windows; stationary access point with a single multi-service window; and, mobile access point (such as service buses) with single or multiple service windows. Main activities include: a) rehabilitation of existing digitized access points; b) establishment of new digitized access points in under-served regions; c) provision of ICT and other equipment, including to respond to the needs of vulnerable groups such as enabling disabled access; and, d) training to access point staff so they know how best to provide assistance to the vulnerable groups (Component 2). This financing will enable the roll-out of 69 new digitized access points to provide human- assisted access to the following services (See table below): (a) social assistance applications; (b) social security enrollment and updates; (c) health insurance enrollment; (d) school enrollment; and, (e) Education Management Platform services and assistance. Access to other administrative services, which could be delivered through such access points – namely water and electricity bill payments – will also increase.23 Box 2: Digitized Access Points system, but this functionality is expected to be incrementally phased-in to manage political economy issues around parent monitoring of schools. The project will also adapt the use of technologies - audio calls and targeted Whatsapp audio messages - to reach those segments of the population who may not be able to fully user and access online platforms (poor households, illiterates, etc.). 23 A longer-term objective is to phase out digitized access points when all citizens can independently use digital solutions. Page 24 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) The project will support the deployment of 69 digitized access points - stationary and mobile. These access points will be deployed in determined districts across 19 governorates (further details will be finalized in the operations manual); including: • 55 stationary access points in districts with very low access – less than 25% on average - to key administrative service providers (2019 government survey); of which: o 13 stationary access points in the most lagging governorates (Tunisia Index 2018 for lagging regions): Sidi Bouzid, Jendouba, Kairouan, Le Kef, Siliana, Gafsa and Medenine; where they will service around 300,000 citizens o 9 stationary access points in the most lagging districts in terms of performance on educational and schooling indicators (according to WB PREFAT project) • Additionally, 14 mobile access points will be deployed to reach communities in rural and remote areas. The operational manual will indicate specific districts. Component 2: Public and Private Sector Capabilities for Speedier and Responsive Service Delivery (US$ 41.4 million, of which US$20 million disbursed against DLIs) 28. Component 2 complements component 1 by strengthening public and private sector capabilities for speedier and more responsive service delivery, with a focus on the two target sectors and four flagship programs. This component addresses the second cause (Section B) by financing enhanced user identification (and data exchange), improved citizen engagement, strengthened capacity and change management, and targeted reform uptake. 29. 2.1. Improving User-Oriented Identification and Interoperability (US$ 10.6 million). This addresses poor reliability of user identification system at the sector level and supports systematic links with the national identification system. • Social Protection Identification and Authentication (US$ 4.3 million). Main activities: (i) the development of a digital social registry – a database of actual and potential beneficiaries – and a social identifier that will accelerate delivery in the sector generally and in the services supported under Component 1;24 and, (ii) strengthened secure data exchange and interoperability (within the MSA, with other service providers and the integration in the National Cloud). • Education Identification and Authentication (US$ 6.3 million). Main activities: (i) the development of a digitized student register/database, student identifier and sign-on system to contribute to the acceleration of services in the sector and the services under Component 1; and, (iii) strengthened secure data exchange and interoperability (within the MoE, with other service providers) and the integration with the National Cloud). 30. 2.2. Improving Service Performance and Citizen Engagement (US$1.8 million). This will set up a central mechanism – housed in the Ministry of Civil Service (MFPMAPP) – called a “Public Service Delivery Barometer” that will ensure citizen engagement and accountability to make the flagship sectors of Social Protection and Education more responsive and better performing. Based on best practice, this will: (a) monitor, through selected indicators, the usage and quality of delivery;25 (b) gather citizen feedback to gauge quality through an annual user survey via a Citizen Report Card (CRC26); (c) publish CRC results to facilitate public debate; and, 24 This will serve multiple social protection programs in enabling improved efficiency, set the foundations for improving existing e-services in the sector and developing new ones, enable quicker, cost effective, and better identification of target beneficiaries, and lead to better management of beneficiaries including monitoring and payment. 25 This will monitor and evaluate performance and quality of digital (user design, maturity, technical specifications, etc.) and physical service delivery (customer relationship, waiting periods, access to information, etc.) channels through performance indicators, periodic user-satisfaction surveys based on life events approach. 26 A citizen report card (CRC) is a simple social accountability tool that can be used to solicit user feedback on service provider performance. During the CRC Page 25 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) (d) initiate improvement initiatives by producing and publishing an action plan (presented in the project’s Steering Committee) that shows what provider actions have been taken in response to the survey data. This will require an efficient steering system shared among stakeholders. Surveys will also be disaggregated by the project’s target vulnerable groups. The Barometer will be piloted in the first year and scaled progressively. 31. 2.3. Strengthening Capacity and Change Management (US$ 9 million). This sub-component aims to strengthen the implementation of the GovTech transformation agenda/program and support the implementation of project results with a tailored technical assistance program. The actions and activities proposed in this project will introduce significant changes in how citizens and government interact at different levels in the service delivery chain. In addition, it is expected that public servants will acquire new skills to support this transformation. To this end, the project will fund a pre-identified and on-demand technical assistance program to assist relevant government agencies to achieve the program's objectives, investments and DLIs. This includes: • the development of the change management strategy and implementation of a sectoral action plan to ease the development, piloting and implementation of planned reforms including adaptation and ownership by all actors concerned with the new e-services developed under Component 1. Learning materials and tutorials for training will be developed and made available online. • the development and implementation of information, awareness and communication strategies for each sector to ease dissemination for beneficiaries and stakeholders. As noted in Section B, one key barrier to improved service access is a lack of information – on the part of citizens (and especially vulnerable citizens) – about the services they can avail. This will finance targeted information, awareness and dissemination via traditional channels (field campaigns, information brochures, newspapers, radio) and digital tools (websites, SMS, chatbots) to inform targeted citizens of available services, entitlements and service access channels, thus enabling such citizens to better mobilize to access services (IEC). This will finance: a) the development of a user-centered Information Education and Communications (IEC) Strategy; b) technical assistance to implement the IEC strategy; and, c) IEC campaigns through appropriate channels. Communication campaigns and information and training sessions will be carried out to ensure that beneficiaries understand how to use new applications and e-services. • Collaborative leadership for service providers and institutional communication for better coordination in project implementation including between national and sectoral initiatives (to support components 2 and 3); for example, training, new performance measures, institutionalizing the change generated by the implementation of the reform • Capacity building for project implementation and execution; providing monitoring tools through third- party audits and ILD verification; and capacity building of the Project Delivery Unit The project will cover some, but not all, capacity needs, collaborative leadership and change management needs. Whenever possible, funding will be supplemented by additional funds mobilized through grants and other sources of funding to ensure adequate capacity building of the Delivery Unit and sectoral executing agencies. process, quantitative and perception-based information from statistically representative surveys is gathered, which means that the findings reflect the opinions and perceptions of the citizen group from which input and information is being sought. A CRC can be used to assess a wide range of services, including water and sanitation, solid waste, police and security, street lighting, road and local transportation, health, and education. It is a useful tool for establishing sound baseline information and benchmarking service coverage and performance as well as for identifying inequities in service coverage and quality based on household wealth or geographic locations. http://siteresources.worldbank.org/EXTSOCIALDEVELOPMENT/Resources/244362- 1193949504055/Citizen-Report-Cards-Final.pdf Page 26 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) 32. 2.4. Incentivizing Key GovTech Reforms (US$ 20 million, DLI). This sub-component complements the planned investments in Components 1, 2 and 3 by incentivizing critical reforms to achieve the project objectives (see DLIs annex for further details). Certain key reforms are already being prepared, such as the new Personal Data Protection Law, and will complement, but not be the focus of this operation. Ongoing parallel TA provided by the Bank and other donors will provide additional implementation support for the achievement of these DLIs.27 • DLI 1: Adopting Key Govtech and Digital Economy Regulatory Reforms (US$6 million). This DLI will incentive the adoption of a new regulatory framework to accelerate the adoption of simple, user-centric digital services (supporting Component 1), to strengthen interoperability (supporting Component 2), and to improve the connectivity sector (supporting Component 3). Specifically, it will incentivize four mutually- reinforcing aspects: (i) the adoption of an interoperability framework; (ii) the implementation of administrative simplification of the flagship services; (iii) the establishment of the Digital Agency; and, (iv) the adoption of the Digital Law. First, the interoperability framework will enable data-sharing across sectors to enable improved user-identification and speedier service delivery. Second, it will incentive the implementation of key measures to simplify and digitize the operation’s 4 flagship services. This is critical given that extra incentives are needed to address possible resistance to implementation of these measures. Third, the establishment of the Digital Agency will strengthen the coordination and implementation of the GovTech agenda, which is a critical need in the Tunisian context. Fourth, the Digital Law28 would replace the existing telecommunications law to provide a modern, private sector-oriented regulatory framework based on global developments in technology and telecommunication. The Digital Law will help sustain and consolidate the activities under Components 1, 2 and 3, notably: (i) by strengthening data exchange, user identification and data protection – key ingredients of user-centric e- services – and; (ii) by ensuring a more open and competitive telecoms and connectivity sector for more sustainable and efficient connectivity in the country, and by ensuring a strong coordination of connectivity investments in the country to avoid duplication and to ensure mutualisation (see Component 3). The project does not finance the interoperability framework, the Digital Agency or the Digital Law. The project does finance the studies on administrative simplification: the DLI incentivizes the adoption and implementation of the study recommendations. • DLI 2: Delivery Responsiveness and Access for Under-Served Groups (US$6 million). This DLI particularly complements the activities under Component 2 and incentivizes selected legal reforms to strengthen accountability in service delivery and to strengthen the enabling environment and sustainability for Digitized Access Points to address the digital divide. First, it will incentivize the adoption of the National Open Data decree and incentivize the MSA and MoE to publish service delivery information according to Open Data requirements. This will increase service delivery accountability and will stimulate private sector activity such as data analytics enterprises. Second, it will incentivize the adoption and implementation of 27 The Bank in Tunisia has three major grant-financed TA programs to support these 3 DLIs: (a) the support to the MTCEN through the MENA Transition Fund; (b) the support to the modernization and digitization of the public administration (funded by the Tunisia Multi-Donor Trust Fund, Moussanada); and, (c) the support to the Open Government Partnership, which has a significant program of support on Open Data (funded by the Tunisia Multi-Donor Trust Fund, Moussanada). 28 The law provides for the different provisions to be subsequently formalized in implementing arrangements, including (i) clarifying and specifying the roles of different agencies and authorities in the digital ecosystem, including new agencies such as the digital development agency (ii) promotes interoperability and encourages the administration to simplify procedures by no longer requesting information more than once (once-only principle) (iii) describes the mechanisms for strengthening digital trust services (digital certificates and e-signatures) and protecting digital identity and (iv) strengthens the protection of the personal data of citizens / companies. Page 27 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) a decree to ensure the sustainable functioning and expansion of digitized access points. Functioning digitized access points will improve access for all, and especially for vulnerable groups. The decree is critical to ensure: (i) integration and coordination between the sectors and services provided through the access points; and, (ii) adequate financial and human resources alongside a sustainable business model for the access points. In addition to incentivizing the adoption of the decree, the DLI will incentivize its implementation by ensuring that the new access points are “operational”: this means that the GoT needs to provide adequate financing and human resources to ensure that the access points are fully functioning. • DLI 3: Optimizing Connectivity (US$ 8 million). This complements the activitites under Component 3 by incentivizing the adoption of an approach to connectivity that is coherent with the national connectivity strategy, is optimal and rooted in an MFD approach, and is sustainable. First, it will incentivize a coherent approach to connectivity by incentivizing the high-level adoption and publication of the Updated National High-Speed Broadband Strategy, which has not been updated since 2014. Relatedly, it will incentivize the adoption of an Updated Connectivity Strategy for Schools29 that provides a deeper diagnostic of school connectivity needs in order to develop an optimal, MFD approach. Further, it will introduce specific procedures including requirements and specifications through a standardized contracting approach for all offices of the public administration, with the view of federating government offices connectivity and services. Second, to address the digital divide, it will incentivize the extension of network coverage to all schools in white areas financed through resources mobilized by the government from the State budget, including resources from the ICT Development Fund. Third, it will enable greater sustainability by incentivizing the mobilization of additional public and/or private resources to invest in school connectivity. Component 3: Reinforcing Connectivity in Education and Social Protection for more Equitable Access to and Quality of Services (US$42.3 million) 33. This component seeks to accelerate implementation of the solutions provided under Components 1 and 2 by stimulating targeted, efficient and private-sector-driven investments to address current inequitable access to and weak quality of indoor and outdoor connectivity at the level of frontline service providers, especially in the lagging areas. Better connectivity will contribute to improving equitable access, quality and accountability of the selected services by enabling the uptake of digital delivery solutions combined with change management (Components 1 and 2). A summary describing the intervention logic for indoor and outdoor connectivity is detailed in paragraphs 35-36 and in Table 5). 34. As noted in Component 1, the project will not invest in equipment in schools (such as tablets or computers) or SP offices for the end-users; this will be provided through other sources, including through the national budget (e.g. subsidies to incentivize responsible use) as well as the Education Project financed by the World Bank (PREFAT). Direct subsidies to end-user equipment will ensure that internet-based services are accessible to all end-users, especially students unable to purchase any connected device. The MoE is currently experimenting the best way to facilitate student access to the internet (Bring Your Own Device schemes, Fondation Orange Grant Program30, etc.). The Ministry is expected to formalize a plan before the end of 2019 to select the best way to provide devices in schools. The operation will support certain devices for social 29 This Strategy will include a detailed action plan on connectivity and digital needs of schools. This will cover the following aspects: detailed feasibility study and dynamic map of school connectivity status, needs assessment, define Service Level Agreements (SLA) standards (including bandwidth provision per student or per site, opportunities to use schools as points of presence and monitoring and payment conditions), technical specifications and procurement documentation, multi-phased investment action plan (prioritization, lots, regions, appropriate connectivity solution). 30 http://www.cnte.tn/index.php/partenariat/education-numerique-avec-orange Page 28 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) workers through a small “service contract”, and the MSA also has a strategy for financing and investing in devices, as described in Component 1. 35. The connectivity intervention logic for the social protection offices covers only 250 offices which have indoor connectivity needs. The regional and local institutions of the Directorate General for Social Protection are interconnected via RNIA2. This project was funded from the National Budget. To improve the quality of the service, the MSA would require service providers to move to another level of service given that this is a “turnkey” service contract. The operation, as such, will finance the remaining 250 SP offices that require upgrading of their indoor connectivity. 36. The intervention logic for school connectivity is based on a detailed assessment of outdoor connectivity according to three geographical areas - alpha, beta and gamma – as indoor connectivity should not be deployed in absence of appropriate outdoor connectivity (broadband access) to allow successful implementation of service delivery solutions by front line service providers (Table 5). This approach mitigates risks (e.g. limited capacity in design and managing this type of procurement package; risks of market distortions with provision of unsustainable outdoor connectivity) through careful sequencing, piloting, testing and scaling up. • When appropriate outdoor connectivity is available (Alpha / urban areas), indoor connectivity investments financed by the project can be immediately deployed using managed contracts. Indoor connectivity includes in-site connectivity (LAN improvement or WIFI depending on feasibility and need to extend the connectivity to the different internal areas of these facilities), network equipment, bandwidth (adjusted to use cases i.e. online school and exam registration, student record, digital content), IT services, firewalls for security and caching devices of select content (e.g. stimulate local content) to ensure optimal availability and performance of the connectivity. • When appropriate outdoor connectivity is not available, there is a need for a careful sequencing of project interventions according to the nature of the area (Beta / peri-urban or Gamma / rural-remote) to maximize service delivery impact, optimize investments and crowd-in the maximum of complementary investment. The project will not fund government-owned broadband networks, as there is a competitive telecom market in Tunisia with four licensed operators that have rights to serve public and private clients (four operators, of which one is exclusively wholesale). An MFD approach31 will be operationalized under the project to incentive and catalyze private sector involvement through subsidies and regulatory incentives, building upon the update of the National Broadband Plan (Ultra-Fast Broadband Strategy 2014) funded by MENA Transition Fund. This updated National Broadband Plan will assess the current broadband penetration and speed by governorate and provide policy options that, on one hand, accelerate Ultra-Fast Broadband (UFB)32 deployment in appropriate geographical locations and, on the other, strengthen the involvement of the private sector and the level of competition in the sector for broadband. 31 The MFD 4-tiered approach: • Market can respond and proper (enabling legal and regulatory) environment is in place: 100% investment is private. • Need to strengthen the enabling environment: either by removing barriers or obstacles (e.g. regulatory, competition) or by adding possibilities (e.g. licensing, spectrum, auctions) to stimulate private sector investment (that will do core connectivity). • Partial market failure. Total market failure: IDA or Public funding (such as a Universal Service Fund) will be used to compensate. 32 The Government of Tunisia, and specifically MTCDE, and the Instance Nationale des Telecommunications (INT), is updating its National Broadband Plan (Ultra-Fast Broadband Strategy 2014) through a grant from the MENA Transition Fund. The proposed strategy will develop the main technology, regulatory and financial elements needed for the Government of Tunisia to update its UFB policy that will foster private sector participation to accelerate the roll-out of UFB. Page 29 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) o For Beta areas and most Gamma areas, private sector could be crowded-in through a wholesale, open access model. During the first 18 months, the expansion of broadband fiber or Fixed Wireless Access (FWA) coverage by private sector under a wholesale, open access approach will be tested in one city (beta area, peri-urban close to an alpha area, urban with good outdoor connectivity via fiber). The approach could be a consortium dealing with both outdoor connectivity (requirement: high-speed broadband access via Fiber or FWA through Wholesale, Open Access approach) and indoor connectivity (with internet service providers and IT companies). This approach will ensure the infrastructure supported by the operation will be mutualized and will not duplicate other investments; it would be subsequently scaled up, based on lessons learned. o For the remaining Gamma areas that that will not be covered by private sector in absence of government intervention (white zones), it is possible to use public resources, including resources from the ITC Development Fund to address additional connectivity needs. There is an ongoing project that aims to bring network coverage to white areas which is financed through the ICT Development Fund. Table 5: Project Approach and Sequencing to Connecting Schools in Tunisia Zone Current Number of Project “Outdoor” Project Timeline school schools33 Connectivity “Indoor” coverage Intervention Connectivity Intervention ALPHA (urban) Fiber 700 None (already Managed First 18 months (mostly) covered) contracts BETA (peri- ADSL 2,307 At least [2,000] urban) schools with high Managed Y2 onwards speed broadband contracts 3G/4G 2,593 access (fiber and GAMMA (rural 3G/4G [* 3G/4G in β and γ] FWA) through a remote) Wholesale Network Model (open Managed Y2 onwards access) to be contracts complemented by GOT funds) Not covered 5734 Use the FDT to Coverage: first provide access to Managed 18 months schools in white contracts Connectivity: Y2 areas (DLI) onwards 37. The Project will also use result-based financing under component 2 (DLIs 1 and 3) to incentivize the adoption of a new regulatory framework for a more open and competitive broadband connectivity sector and to incentivize an optimal approach to sustainable connectivity, including through a coherent national and sector-level approach, investment optimization and leveraging additional sources of financing. The disbursement-linked results are: (i) the adoption of the National Broadband Plan, including the Digital 33 Numbers will be reverified by effectiveness in light of the ongoing education connectivity study. 34 Number to be reverified before effectiveness. Page 30 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Infrastructure Plan, including detailed action plan on connectivity and digital needs of schools35; and, (ii) mobilization of additional public resources including the use of ICT Development Fund resources to expand broadband network coverage and quality, currently in white areas/limited coverage, with 4G technology, or appropriate broadband technology (including FWA and Broadband via Satellite) and to meet connectivity and digital needs of schools, including but not limited to schools in white areas. 38. Given that the total cost of upgrading connectivity for all the schools in need of better connectivity exceed the loan envelope, the following criteria will be applied to select schools to be covered under this operation: (1) Equitable access: to ensure coverage of schools in white areas (address digital divide), in lagging regions (IDR 2018) where broadband access/quality are most challenging, and in areas where the private sector is less likely to reach; (2) Educational quality and impact: the project will follow a similar approach to PREFAT (PAD2680) to identify low performing schools with unmet connectivity and digital needs; and, (3) Best technically feasible broadband option: Ease of connectivity, change management considerations, and other technical criteria such as type of institution, number of users, geographical characteristics, distance to telecommunication networks, and building conditions. Cutting-edge technologies to consider for integration into project implementation might include Broadband by satellite, “TV white spaces” and FWA, the use of “passive wi-fi” and mobile connectivity solutions36. 39. Sub-component 3.1: Indoor Connectivity to Deploy the New Service Delivery Solutions in areas with Sufficient Outdoor Connectivity (US$ 9.7 million). This will work with frontline providers with good degree of outdoor connectivity to quickly test and roll-out the service delivery solutions under Component 1 and 2. Specifically: • The project will provide indoor connectivity37 through one (or more) single responsibility end-to-end service contracts to connect and deploy the new institutional and digital solutions in 1,005 frontline service providers (700 schools, 250 SP offices and 55 digitized access points) in the first 18 months. These are entirely open and competitive processes, including multiple lot IT Supply and Installation procurement packages (“turnkey” contracts), with specific, set standards and specifications, to ensure quality, consistency of service and scale, and the involvement of competent, experienced general contractors, involving, if possible, young technologists at the local level. • The project will strengthen capacity and training personnel of line ministries, particularly the MoE, to monitor contractual obligations in terms of SLA and quality of service (QoS) of private sector operators and develop a sustainable business model for connectivity to mitigate the risks. • The project will provide Technical Assistance: i) to support sustainable business models38 (e.g. Portugal39, Uruguay, Chile, North Macedonia, Brazil, Intesa Sao Paulo, among others) that have proven successful (e.g. community WIFI hot-spot enabling basic internet access and local content, student plans, maintaining equipment in exchange for benefitting from free internet access); and, ii) to explore other 35 This may include requirements and specifications to introduce standardized contracting approach for all public administration offices, with the view of federating government offices connectivity and services into a single, centrally managed network, provided by private sector operators but managed centrally by the CNI through a single Network Operating Centre (NOC). 36 Passive wi-fi is a new technology to reduce power drain in Wi-Fi equipment. Mobile Wi-Fi technologies are growing internationally. 37 Indoor connectivity includes in-site connectivity (LAN improvement or WIFI depending on feasibility and need to extend the connectivity to the different internal areas of these facilities), network equipment, bandwidth (adjusted to use cases i.e. online school and exam registration, student record, digital content), IT services, firewalls for security and caching devices of select content (e.g. stimulate local content) to ensure optimal availability and performance of the connectivity. 38 For example, in Portugal, mobile providers offered plans for students; in Zimbabwe access to many educational web sites doesn't count against mobile data plans; in Uruguay they provided free broadband WIFI in village squares radiating outward to help students connect after school hours. These models have proven successful (e.g. Portugal, Uruguay, Chile, North Macedonia, Brazil, Italy’s Intesa San Paolo, Avanti, among others) having the school. The system is sustainable and paid for with people connecting to the hot spot and paying their bundles 39 https://blogs.worldbank.org/edutech/portugal-2. Page 31 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) regulatory tools, including special conditions in licensing (e.g. wholesale operator), supply-side or demand-side subsidies, infrastructure sharing regulation, leveraging the fiber assets of utilities. 40. Sub-component 3.2: Indoor and Outdoor Connectivity to Deploy the New Delivery Solutions in areas with Insufficient Outdoor Connectivity (US$ 32.6 million). This will work with the frontline service providers in the lagging regions of the country that have the greatest connectivity needs. This will involve investments in outdoor and indoor connectivity to connect and deploy the new institutional and digital solutions with high- speed broadband access, in lagging areas for at least 2,000 schools • A cross-cutting technical assistance will be deployed under this component to support all connectivity planning, design and investments. It will include a detailed action plan on connectivity and digital needs of schools, to identify optimal technological, financial and procurement choices and will cover the following aspects: detailed dynamic map of school connectivity status, needs assessment, SLA standards (including bandwidth provision per student or per site, opportunities to use schools as points of presence and monitoring and payment conditions), technical specifications and procurement documentation, multi-phased investment action plan (prioritization, lots, regions, appropriate connectivity solution). This will include strengthening the CNI through a single Network Operating Centre. • In the first phase of the project (18 months), the project will implement a single responsibility end-to-end service contract through a 2-stage RFP process40 to test and pilot the expansion of broadband fiber or FWA coverage by private sector in one city (beta area, peri-urban close to an alpha area, urban with good outdoor connectivity via fiber). The approach could be a consortium dealing with both outdoor connectivity (requirement: high-speed broadband access via Fiber or FWA through Wholesale, Open Access approach) and indoor connectivity (with internet service providers and IT companies). • For the second phase (year two onwards), before scaling up, the approach will be adjusted with different lots, different levels of school connectivity readiness, based on lessons learned, market response as well as geography. It will then be scaled up to the other schools on that basis; it will be complemented by additional public resources as needed given the typology of the area, beta or gamma (DLI). • For schools in non-connected, “white” areas, the component will leverage additional public resources, including ICT Development Fund resources to bring them all under coverage during the first 18 months of the project (the result is reflected in the DLI 3.2); the component can then finance a single responsibility end-to-end service contract to provide indoor connectivity to those schools from year two onwards. 41. Table 6 outlines a proposed approach for implementing each connectivity solution; this approach will be refined and re-validated in the first phase of implementation. The component proposes to introduce the same procurement approach as the one used for the contracts for the inter-administrative network for municipalities, RNIA 3, funded by the African Development Bank. The RNIA3 model involved purchasing of connectivity from private operators including through consortia which included private wholesale and retail broadband operators as well as local IT companies and Internet Service Providers (ISP). The project will improve upon this model by including the following requirements and points: entirely open and competitive process, including multiple lot IT Supply and Installation procurement packages (turnkey contracts), with specific, set standards and specifications, to ensure quality, consistency of service and scale; and, wholesale, 40Given the nature and complexity of the connectivity and broadband service contracts, it is recommended that the Delivery Unit, the project’s PIU, launch a Request for Proposals (RFP) to ensure the government’s business needs are better met. The RFP is normally conducted in a tw o-stage process to allow bidders to first offer customized solutions or proposals that may vary in the way they meet or exceed the service and performance requirements of the RFP document. The process also allows for an evaluation of the degree to which a bidder’s proposal meet the requirements using sc oring criteria and an evaluation methodology. Page 32 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) open access approach (requirement to cover both the school and selected access points in the vicinity of the school, to increase fiber density; obligation to include spare capacity and a second pair of dark fiber; infrastructure sharing and open access provisions). Key considerations for determining of the procurement approach are provided in more details in the Procurement Plan and in the appended PPSD; and will be further refined as part of the detailed action plan on connectivity and digital needs of schools. Below is the proposed approach for component 3, which could be refined following the feasibility study while considering the main principles mentioned above. Table 6: Proposed Division of IBRD Financing Estimated Estimated contract Activity Cost completion date (US$) Single responsibility end-to-end service contract(s) in Alpha areas: Improved 9,300,000 T0+18 month indoor connectivity for 1,005 (700 schools, 250 SP offices and 55 digitized access points) in these areas Phase 1: Single responsibility end-to-end service contract: Test and pilot the 1,300,000 T0+18 month expansion of broadband (fiber or FWA) coverage by private sector under a wholesale, open access approach in one city in beta area in combination with indoor connectivity through a two-stage RFP process Phase 2: Single responsibility end-to-end service contract(s) in Beta and 29,700,000 Project Lifetime Gamma areas: Adapt and scale-up approach to meet connectivity (outdoor and indoor) needs of other schools in beta and gamma areas [at least 2000], provided for white areas that the FDT has been effectively mobilized Procurement of TA and other services: i) capacity building and training; and 2,000,000 T0+ 24 month ii) develop sustainable business models C. Theory of Change 42. The Theory of Change identifies the problem from a user perspective, identifies the causes of this problem in the service delivery chain and then applies GovTech solutions to the causes to bring about tangible impacts on equitable access to, and the, quality and accountability of, the selected sectors. Evidence shows that starting from the needs of users can help improve the service, citizen trust and the social contract. The Theory of Change (ToC) uses a “life events” approach combined with a “collaborative leadership” approach (see Box 4), which has four main steps (Figure 2 and Box 4). First, it focuses on the service user and identifies the needs of, and problems faced by, the user in their journey to access the flagship services. Second, it uses a multi-stakeholder collaborative leadership approach in order to: (i) unpack the root causes in the service delivery chain that underpin the problems; and, (ii) build a multi-stakeholder consensus around the causes and solutions. Third, to address the identified causes it proposes appropriate and context-specific solutions. These solutions combine the introduction of new incentives and change management with user-friendly institutional and digital solutions. Fourth, it takes an iterative and adaptive approach, which tests solutions, learns from this testing, adjusts the solution and then scales up. Page 33 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Figure 2: The Operation’s Theory of Change Page 34 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Box 4: Life Events and Collaborative Leadership Approaches A life events approach is a new approach to public service delivery reform that puts the user at the center of the reform process and seeks to make public administration reforms more user-centric. “Life events” map the user journey to access a given service and focuses on the different points at which the user interacts with the service provider. It identifies the needs and problems from the user perspective, and then seeks to find solutions to the identified bottlenecks in the service delivery chain. The user is then consulted periodically during implementation to ensure their feedback is taken on board and adjustments are made accordingly. Page 35 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) The Collaborative Leadership for Development program at the World Bank attempts to approach development by explicitly addressing the ‘adaptive’ and people-related challenges, in addition to the technical aspects of reforms. It recognizes that change is not linear and that all stakeholders need to be on board to move the process forward. There are several tools that have been tried and tested in this field. The effort is towards building a reform coalition. It helps relevant actors to come together to align around a shared understanding of the development problem, and to facilitate a joint vision and joint development of potential solutions. The focus is on helping stakeholders collectively learn to look at things differently so that they can act differently for different results. There is coaching support provided during implementation, with an emphasis on iterative adaptation and learning by doing. D. Rationale for Bank Involvement and Role of Partners 43. The Bank is involved in this domain, at the request of the GoT, in order to bring its financial and technical comparative advantage and to address important needs in the expanded roll-out of the GoT e-government and GovTech approach. The Bank has extensive international experience in supporting the e- government/GovTech agenda. This experience has informed the design of the operation and will inform the implementation support to this operation. The GoT has also identified important needs and lessons in the Tunisian context to deepen and strengthen the implementation of the GovTech agenda (see Section E below). 44. The project also builds on a WBG program in Tunisia that supports the modernization and digitization of the public administration, the reform of the social protection sector, the improvement of the education sector and the establishment of a more inclusive social contract. First, the operational design is informed by a strong program of analytical, diagnostic and policy-related work funded by the WBG and other actors (see Section E below). Second, the project builds on, consolidates and complements an ongoing program of World Bank Technical Assistance and lending, which includes: (i) the DPF 2018 (for example, by operationalizing the social assistance reform program); (ii) the TA program on social protection (PARPS) (for example, by operationalizing a new targeting approach); (iii) the TA program on Public Administration Reform and Open Government (for example, by operationalizing administrative simplification, or Open Data); (iv) the current lending operation in the Education sector (for example, by further strengthening education delivery systems); and, (v) the pipeline lending on startups (by strengthening public sector innovation and private sector involvement). 45. The operation will complement the ongoing work of development partners and will ensure close coordination with ongoing and planned investments in this field. A mapping of donor interventions was undertaken in the preparation of this operation. A key ongoing investment is by the African Development Bank (AfDB), which is supporting a range of national-level e-government initiatives, such as the Unique National ID or the National Interoperability platform. Other partners have investments in this field. This operation builds on and complements these investments, as outlined in Section E below. E. Lessons Learned and Reflected in the Project Design 46. The operation integrates key lessons from implementing e-government reforms in Tunisia. Key lessons include: (1) there is a need to consolidate GovTech investments and to mitigate the risk of duplication; (2) there is a need to ensure a strong focus on GovTech at the sectoral level, and to ensure close coordination between greater linkages need to be made between national initiatives – such as the National ID system or Interoperability platform – and sectoral initiatives; (3) there is a need to put the user at the center and ensure a tangible impact on the lives of users, rather than focusing uniquely on back-end reforms or ICT systems; and, Page 36 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) (4) a critical factor for success is strong change management and coordination. The design is also informed by a multi-year program of operational, analytical, diagnostic and technical assistance work in Tunisia, as outlined in Section D. This ensures the relevance of operational design to the Tunisian context, as well as enabling the operation to identify the most strategic opportunities for supporting this agenda. 47. The private sector can play an important role in spurring advancement and innovation in this field. Experience to date underlines the importance of the following measures: (i) incentivizing a GovTech policy environment that promotes a modern, private-sector oriented approach; (iv) incentivizing private sector participation and innovation by bringing in private sector expertise to support digital solution development and by creating open data platforms for private sector analytics enterprises; (v) stimulating private-sector connectivity investments; (vi) procuring solutions on an infrastructure and software as a service basis; and, (vii) placing emphasis on fit-for-purpose and value-for-money technologies. 48. The operational design integrates some of the latest international lessons and innovations in his domain (Figure 3), while seeking to adapt to the Tunisian context. Key lessons include: • The users, and frontline service impacts, need to be at the center of the reform process. This was ensured through a mainstreaming of a “life events” approach as outlined in the Theory of Change section. • Technological solutions need to be combined with a strong focus on institutional reform, incentives and change management. Technology brings opportunity, paving the way to create new jobs, increase productivity, and improve public services.41 Yet it is rarely sufficient as outlined in WDR 2016 on “Digital Dividends”. It should be coupled with addressing institutional coordination failures and bottlenecks, linking technological innovations with public administration reforms and pro-actively involving relevant stakeholders (WDR, 2017). • The “right” and lowest cost technologies should be used to solve the identified service delivery problems. The operation will also explore the integration of some of the latest technologies to enable leapfrogging. For example: (a) Component 1 will test the following technologies: using artificial intelligence to improve the social protection targeting system; using Big Data and machine learning to improve social security compliance and fraud detection; using algorithms to improve detection of children at risk of drop-out; using gaming, virtual reality and interactive learning kiosks to improve and tailor learning; (b) Component 2 will focus on the transition to a Cloud-based system and explore how related innovations, such as Blockchain, could be leveraged for ID and payment systems; and, (c) Component 3 will support new integrated business models for leveraging private sector investments in connectivity in the needier schools and regions (as looking at the possibility of adopting new innovations in connectivity such as 5G, passive wi-fi and mobile connectivity). • CivicTech tools – to deepen citizen engagement – should be used to close the “accountability loop”. This means ensuring that citizen feedback and participation on service delivery leads to improved government responsiveness through mechanisms to ensure supply- (government) and demand- (societal) side pressures are maximized. • Dedicated measures are needed to address the Digital Divide. International experience shows how important it is to reduce access barriers related to the “digital divide”. Mechanisms for reaching lagging 41 This project leverages technologies to increase and simplify citizen services, increase fiscal efficiency, improve institutional effectiveness and targeting (social protection), and catalyse economic growth. Key transformative technology components of the project are as follows: (a) using innovative technology (e.g. SMS, open data platforms) to improve citizen experience, transparency, accountability, and reduce administrative discretion); (b) simplifying procedures and digitalizing services to reduce complexity and cumbersomeness of procedures; (c) strengthening connectivity and interoperability to break down administrative silos and ensure a “once only” service access for business and systems; and, (d) ICT for fiscal efficiency and savings (public investments, procurement). Page 37 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) regions and vulnerable groups are built into the design (see Annex on Digital Divide). Figure 3: Lessons in Digital Government (source: World Bank, 2018). 49. Administrative ownership and incentives for reform uptake are critical. Resistance to reform or inertia in the civil service can hinder the adoption of new institutional and digital solutions for user-centric public services. On the other hand, GovTech reforms can also have positive impacts on the work and job satisfaction of civil servants. The preparation and design seeks to address these challenges through the following measures: (a) using a participatory approach to design the problems and solutions so as to build a consensus on the way forward; (b) selecting project activities where there is a vision and reform champion, including building on solid technical assistance work; (c) addressing targeted incentives through selective DLIs; (d) building in a sub-component on change management and collaborative leadership; and, (e) creating internal and external pressures for accountability and incentives for change, notably through increased transparency, improved monitoring and citizen engagement. 50. Risks associated with stranded assets, obsolete technologies, and ICT procurement need to be identified and addressed up-front and diligently reviewed throughout implementation. This has been done in project preparation and has been built into program implementation design, as outlined in the Risk section. 51. The operation focused on selected sectors and flagship programs to ensure impact but will also create the foundations for quickly adding new services and scaling the approach in other sectors. International experiences demonstrate the need to avoid too broad an approach, as it tends to spread out resources, concentrate interests opposed to reforms and produce fewer results. 52. Linear results are rarely achievable or desirable, hence an adaptive approach needs to be taken. This involves testing, adapting and scaling, as reflected in the ToC. 53. Technical assistance and capacity building support needs to be delivered in a nimble and tailored manner. A lesson learned from similar operations is the need to have clearly-defined implementation arrangements, and to provide technical assistance efficiently and early on, especially in procurement and public financial management. It is also important to build on existing institutional implementation arrangements, such as the Delivery Unit at the MTCEN. Page 38 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) III. IMPLEMENTATION ARRANGEMENTS A. Institutional and Implementation Arrangements 54. The institutional arrangements have been discussed extensively with the Tunisian authorities and are based on the principles of transparent governance and agility, alongside well-defined roles and responsibilities and accountability mechanisms. The implementation arrangements described below were agreed in order to: (i) address key implementation capacity and coordination risks, and therefore ensure effective implementation of an inter-ministerial project; (ii) ensure clear, transparent and well-defined roles and responsibilities for each ministry; (iii) to ensure a balance of technical (ICT) civil servants and service delivery civil servants throughout implementation; (iv) adequate change management support is provided; and, (v) leverage and involve service contracts and private experts and organizations to support implementation (see Components 1, 2 and 3). The arrangements will be further detailed in the Operational Manual. Additionally, the project has identified risk mitigation measures related to implementation and integrated a sub- component on change management. These aspects are outlined in the Component description and Risk section. 55. The Steering Committee's role is to steer the project strategically and to ensure minister-level support. The committee will work based on the reports submitted by the PMU. It will be composed of the representatives of the four selected ministries, the MDICI and MoF and will be chaired by the MTCEN. 56. The PMU will centralize information, strengthen inter-ministerial coordination, and implement a clearly- defined governance structure. The PMU will be housed at the level of the MTCEN, as the MTCEN has been granted the mandate and authority to lead the supervision of all government digitization projects at the strategic planning, design, and implementation stages (Cabinet Decision of 27/03/2018). This PMU will benefit from being housed in an existing, functioning structure called the Delivery Unit (DU). The DU could later be housed in the new Agency for Digital Development (AND) upon its creation. The PMU will be inter- sectoral by including a designated focal point from the other three implementing ministries as well as holding regular coordination meetings with the Ministerial Level teams (see below). A dedicated team will be appointed within the DU to implement the operation, including but not limited to a Project Director (civil servant), Project Coordinator(s), an FM specialist, a Procurement Specialist, an M&E specialist, an Environmental and Social (E&S) Risk Management Focal Point and other relevant experts from the private sector. It will focus on project management and handling financial management and procurement. The PMU will coordinate project activities, ensure the rapid and efficient implementation of each activity, and manage administrative and fiduciary aspects. It will also be responsible for project evaluation, monitoring and reporting, including the submission of projects reports. The PMU will advise and assist the Sectoral Project Teams, including validating calls for tenders. The PMU will meet daily. The PMU will be reinforced, where relevant, by external experts. 57. Three small Project Management Teams at the three implementing ministries will also be established to ensure the day-to-day oversight and implementation of their respective activities, and to ensure all the technical details for procurement and implementation are provided to the PMU. These will be small teams will be designated by the respective ministers and led by a Director General. The teams will be composed of officials in charge of service delivery and ICT functions as well as fiduciary and procurement experts. They will be assigned to the technical design of procurement contracts and the day-to-day execution of their assigned Page 39 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) project activities. In addition to day-to-day oversight of implementation, the Teams will provide technical content for the procurement documents, with support, validation and processing from the PMU. Additional staffing may be provided, where necessary, to strengthen these Teams. 58. To ensure effective implementation, clear roles and responsibilities have been agreed in terms of components, sub-components and DLIs. See Table 7 and Figure 4. Table 7: Agreed GoT Implementation Roles and Responsibilities Component Sub-Component Lead Agency 1.User-Friendly Institutional 1.1. Improving Social Protection Delivery Efficiency, MSA and Digital Delivery Accountability and User-friendliness Solutions 1.2. Improving Education Service Delivery Efficiency, MoE Accountability and User-friendliness 1.3. Improving Access and Quality for All: Digitized Access MFP Points promoting digital inclusion 2.Public and Private Sector 2.1. Improving User-Oriented Identification and MSA (social identifier) MoE Capabilities for Speedier and Interoperability. (education identifier) Responsive Service Delivery 2.2. Improving Service Performance and Citizen Engagement MCSPAPP (with MoE and MSA) 2.3. Strengthening Capacity and Change Management MTCEN (with MoE and MSA) 2.4. Incentivizing Key Reforms (DLIs) MDICI DLI 1: Adopting Key GovTech and Digital Economy MTCEN (with MoE/MSA) Regulatory Reforms DLI 2: Delivery Responsiveness and Access for Under- MFP (with MoE/MSA) Served Groups DLI 3: Optimizing Connectivity MoE (with MTCEN) 3. Reinforcing Connectivity 3.1. Indoor Connectivity to Deploy the New Service Delivery MoE and MSA (with MTCEN) in Education and Social Solutions in areas with Sufficient Outdoor Connectivity Protection for more 3.2. Indoor and Outdoor Connectivity to Deploy the New MoE (with MTCEN) Equitable Access to and Delivery Solutions in areas with Insufficient Outdoor Quality of Services Connectivity 59. An agile and Ad-hoc inter-ministerial Technical Committee will also meet as needed to ensure strengthened coordination across ministries, between national and sectoral projects and to design the technical specifications of key contracts. A Technical Committee meeting can be called by the Minister and/or PMU and/or Sectoral Teams. Key roles include: reviewing and validating the Terms of Reference of key investments, such as on connectivity, the cloud system and the identification system; and, meeting to resolve bottlenecks in project implementation. 60. The PMU, and implementing teams, will also coordinate closely with development partners to ensure complementary and synergy with ongoing and new investments in the sector. Coordination on policy dialogue, technical assistance, and other infrastructure investments, planned and on-going, are critical factors for the successful implementation of the project. Page 40 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Figure 4: Project Implementation Arrangements Steering Committee PMU (MTCEN Delivery Unit and Sector Focal Points) Ad-Hoc Technical Committee Ministry-Level Project Teams Ministry of Civil Ministry of Ministry of Social Service, Public Education Affairs Administration and Public Policy B. Results Monitoring and Evaluation Arrangements 61. The project supports the PMU, housed in the MTCEN, in setting up a strong monitoring and evaluation system. This is financed under Component 2. The PMU will be responsible for project monitoring and evaluation activities (M&E), drawing data from the relevant Ministries. The results framework in the Annex summarizes the verification protocols. The M&E system – which will be further detailed in the Operational Manual – will incorporate mechanisms to monitor project implementation, compliance with the established procurement and financial management procedures, and achievement of project performance indicators. Monitoring instruments include bi-annual progress reports on project implementation, and output and performance indicators. Data will also be drawn from the Barometer, which will also be disaggregated by target vulnerable groups. 62. As an important element of the monitoring and evaluation, the project will collect and disaggregate data by gender in the key areas of access and satisfaction/voice. Based on the analysis of gender disparities undertaken during project preparation, an increase of 25 percent in terms of female access to digital services is targeted. In terms of beneficiary satisfaction with services, the project expects to achieve parity between men and women. C. Project Cost and Financing 63. The summarized project cost and financing is outlined in Table 8 below. The Project comprises 3 DLIs with Disbursement Linked Results (DLRs). Some DLIs are scalable. The WB Financial Management Guidelines will apply to the eligible expenditure program. Table 8: Project Cost and Financing Page 41 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Component 1. User-Friendly Institutional and Digital Delivery Solutions (US$16.3 million) 1.1. Improving Social Protection Delivery Efficiency, Accountability, and User-Friendliness Social assistance: cash and benefit transfers Social survey (conception and data collection for the database of the poor) 3.9 TA: targeting, user experience, case management, monitoring and evaluation 0.2 Business process modeling and reengineering 0.2 Subtotal 4.3 Social Security: Pensions and Health Insurance Digital payment module and data integration with tax directorate 0.2 Business process modeling and reengineering & Development 0.3 Mobile Service Units (for Social Protection services) 1 Expansion of universal health care cards 2.7 Sub-total 4.2 1.2 Improved Education Delivery Efficiency, Accountability, and User-Friendliness Education Management Platform and Services Digital education management platform, with online enrollment and authentication based on identifier 2 National examination management system 0.4 Business process modeling and reengineering & Development 0.7 Sub-total 3.1 Digital Learning Management System Define and develop business model for digital learning content 0.2 Digital learning content 1.3 Sub-total 1.5 1.3. Improving Access and Quality for All: Digitized Access Points promoting digital inclusion Improving and Expanding Digitized Access Points 3.2 Sub-total 3.2 Total Component 1 16.3 Component 2: Public and Private Sector Capabilities for Speedier and Responsive Service Delivery (US$41.4 million) Subcomponent 2.1. Improving User-Oriented Identification and Interoperability Social Protection User Identification Improving the social identifier system 0.5 Study on Enterprise Architecture 0.5 Strengthening IT infrastructure for national cloud strategy 0.2 Improve social assistance information system and case management 1.5 Strengthening sectoral interoperability capability 1.6 Sub-total 4.3 Education User Identification Student Register 0.3 Management Information System 0.3 Interoperability solution 0.3 Strengthening IT infrastructure for national cloud strategy 5.1 Revamp Edunet portal 0.3 Sub-total 6.3 Subcomponent 2.2. Improving Service Performance and Citizen Engagement Public Service Delivery Barometer 1.8 Sub-total 1.8 Subcomponent 2.3. Strengthening Capacity and Change Management General Technical assistance and training activities, and studies 1.6 Page 42 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Social Protection – Change management/collaborative leadership, external/Internal communication and personnel 2.4 training Education – Change management/collaborative leadership, external/Internal communication and personnel training 4.1 User awareness with digitized access points 0.9 Sub-total 9 Subcomponent 2.4. Incentivizing Key GovTech Reforms (3 DLIs) Sub-total 20 Total Component 2 41.4 Component 3: Reinforcing Connectivity in Education and Social Protection for more Equitable Access to and Quality of Services (US$ 42.3 million) Subcomponent 3.1 Indoor Connectivity to Deploy the New Service Delivery Solutions in areas with Sufficient Outdoor Connectivity LAN/Wi-fi in Social Protection Units 0.3 LAN/Wi-fi in Digital Access Points 0.1 LAN/Wi-fi in Schools 9.3 Sub-total 9.7 Subcomponent 3.2 Indoor and Outdoor Connectivity to Deploy the New Service Delivery Solutions in areas with Insufficient Outdoor Connectivity Network Coverage and Quality (WAN and LAN) in primary and secondary schools 32.6 Sub-total 32.6 Total Component 3 42.3 Total 100 D. Sustainability 64. The Prime Minister and the Council of Ministers have identified Digital Transformation in Tunisia, including GovTech, as a top priority. This has resulted in the formation of a Special Inter-Ministerial Committee (January 2019) on Digitalization that is Chaired by the PM, covering all digitalization programs across the country, including but not limited to GovTech. There is also a cross-party political consensus on the relevance and importance of the digital transformation agenda. Furthermore, GovTech and public sector administration reforms supported by the project are aligned with the relevant strategies as outlined above. 65. Institutional capacity and coordination challenges within and across sectoral ministries could affect sustainability, hence the strong emphasis on building collaborative leadership and change management capacities. The resistance from some stakeholders to aspects of digitization presents a risk. Risk mitigation measures are outlined in the risk section. Reforms are also expected to generate tangible benefits for citizens, which would strengthen reform constituencies. Moreover, the emphasis on transparency and feedback is expected to provide a mechanism for external stakeholders to voice their concerns and preferences and exert pressure to prevent backtracking on key reforms. 66. Sustainability of the activities will be increased through several mechanisms. This includes: supporting the development of sustainable business models and plans for solutions provided under the three components; ensuring that there are dedicated state budget lines assigned to the key solutions and that there is mobilization of public and private resources to sustain and expand the activities; and, providing value-for- Page 43 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) money and efficient solutions to help reduce prices. IV. PROJECT APPRAISAL SUMMARY A. Economic Analysis Social Protection 67. Benefits of the investments in ICT technology and systems in the social protection sector are expected to be substantial. Benefits come mainly through: (a) time and cost savings to beneficiaries, (b) reduced administrative costs, (c) reduced errors due to better targeting and verification of eligibility; (d) reduced waste of budgetary resources; and (e) other benefits. Currently existing data allow only for calculation of benefits of the time and travel cost savings of applicants to the programs. Details are below. 68. Reduced time and travel costs for applicants. About 60,000 people apply for social assistance programs each year and about 13,000 self-employed people enroll in the social security system. Applicants currently make an average of two and a half trips to government offices, and spend an average of five hours, including travel time, to get information about the programs, to complete and submit documentation, to follow up, and to periodically reconfirm their eligibility for the programs. By reducing the number of documents that applicants are required to submit and by digitizing back-office functions, allowing government officials to more rapidly determine a person’s eligibility for the programs, an applicant is expected to save three hours (equivalent to US$15.00) and make an average of one and a half trips (equivalent to US$5.00).42 69. A summary of the assumptions used, and findings is below. • Capital and maintenance costs. The capital costs of the system (including foundational investments, studies, facilities, equipment, software, network, staff training, technical assistance and the like) is estimated to be US$2.8 million.43 The annual cost for maintenance is estimated to be 20 percent of the capital cost over a period of 10 years. • Discount rate. A discount rate of 5 percent was used, in line with World Bank guidance. 70. The main assumptions underlying the analysis are: (a) installation period of one year; (b) benefits start to flow from year two and continue for 10 years; and (c) applicants save an average of US$20, considering both time and travel cost savings, as described above. Table 9: Economic analysis of the time and travel cost savings of investments in ICT for social protection and social security Base case Scenario 1 Scenario 2 Scenario 3 (costs up by (costs up by 20%) (benefits down by 20% and benefits 20%) down by 20%) Net present value US$4.0 million US$2.6 million US$1.8 million US$0.5 million Internal rate of return 30 percent 20 percent 17 percent 8 percent 42 Experience from similar projects in other countries show that investments in ICT technology and systems reduces the time and travel costs of users by 25–90 percent, according to a World Bank Program Profile on administrative simplification and service delivery 43 All capital cost figures are estimates, as investments will be determined only after technology needs studies have been carried out during the first year of project implementation. Page 44 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) 71. The digitization provides significant benefits for the social protection sector that cannot be quantified, due to lack of data. These include (a) reduced administrative costs; (b) reduced targeting errors; (c) reduced waste of budgetary resources; and (d) other benefits. Details are below. 72. Reduced administrative costs. By introducing electronic means of tracking applications, processing payments, and other administrative tasks, the project is expected to significantly reduce administrative costs. By introducing technology in the local offices of the Ministry of Social Affairs, the time spent processing applications is expected to drop by 50 percent compared with the paper-based methods. In addition, introduction of an interoperable platform for use by local offices, is expected to reduce the time required for the initial screening of applications (about 75 percent of applications are currently screened out at local offices). 73. Reduced targeting errors. The lack of a social registry and of a unique identifier leads to poor targeting and verification of eligibility for both the cash transfer and indigent health insurance programs. By supporting the social registry, a unique social identifier, and a grievance redress system, it is expected that the project will improve the targeting of the social protection programs. In addition, current paper-based beneficiary cards contribute to a weak governance of access system to health providers, as people can access health services without a proper authentication. The introduction of digital universal health cards is expected to improve the governance of the health insurance system. 74. Reduced waste of budgetary resources. The creation of a social registry is expected to improve the ministry’s capacity to execute the program budget. Currently, about 3.2 percent of beneficiaries of the cash transfer program do not claim their benefits (8,000 of 250,000 beneficiaries). This means that 3.2 percent of the program’s funds are not allocated. In addition, around 13 percent of quotas available for the cash transfer program were not used in 2018, implying that about 37,000 people in need did not benefit from the cash transfer program. The establishment of the social registry and the digitization of functions are expected to reduce the unclaimed benefits and improve the ministry’s capacity to execute the program budget, delivering resources to people in need. 75. Other benefits. User satisfaction with accessing services is expected to rise, a benefit that cannot be quantified. In addition, increasing enrollment in social security will provide significant benefits to low-income workers. Currently, over 50 percent of low-income self-employed workers are not paying into the social security system every quarter, and risk being without (or with a very low) pension when retired. Through expanded outreach and simpler enrollment applications and payment processing, the project aims to ease the enrollment of low-income and self-employed workers in the social security system and improve the frequency and amount of contributions. Studies from other countries show that when people receive a regular minimum income, they are healthier, both mentally and physically and are less likely to require emergency health services. Their family members are also healthier, and their children are less likely to drop out of school. Education 76. Benefits of the investments in ICT technology and systems to in the education sector are expected to be substantial. Benefits come through three main channels: (a) reduced time and travel costs of parents Page 45 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) enrolling their children in school, (b) reduced administrative costs, and (c) better learning outcomes. Data exist to quantify only the benefits of time and travel cost savings of parents enrolling their children in school. Details are below. 77. Reduced time and travel costs for beneficiaries. About 1,100,790 students are expected to enroll digitally in primary school each year and about 894,305 students to enroll digitally in secondary school (middle and high schools), due to the introduction of digital enrollment systems, an increase in digital access points, and simplification of the process under the Project. Parents are expected to save two hours (equivalent to US$10.00) and one trip (equivalent to US$5.00) in enrolling their children in school. 78. A summary of the assumptions used, and findings is below. • Capital and maintenance costs. The capital costs of the new systems are estimated to be US$25 million. The annual cost for maintenance is estimated to be 20 percent of the capital cost over a period of 10 years.44 • Discount rate. A discount rate of 5 percent was used, in line with World Bank guidance. 79. The main assumptions underlying the analysis for digitalization of school administrative tasks are: (a) installation period of one year; (b) benefits start to flow from year two and continue for 10 years; (d) parents save an average of US$15, considering both time and travel cost savings, as described above. Table 10: Economic analysis of the time and travel cost savings investments in ICT for the education sector Base case Scenario 1 Scenario 2 Scenario 3 (costs up by (costs up by 20%) (benefits down by 20% and benefits 20%) down by 20%) Net present value US$33.2 million US$21.1 million US$14.4 million US$2.3 million Internal rate of return 28 percent 18 percent 16 percent 7 percent 80. The digitization of school management provides significant benefits for the education sector that cannot be quantified, due to lack of data. Digitizing tasks such as student attendance, student schedules, homework assignments, exam grades, and other tasks is expected to reduce administrative costs by 25–90 percent, based on results of similar projects in other countries. This will allow the resources now allocated for administration to be used to improve the quality of teaching, facilities, and the like. Automation will allow school officials to send parents and students alerts on issues such as school attendance, upcoming exams, and behavior reports, thus deepening engagement of parents in their children’s education. This is expected to result in higher rates of school attendance, reduced drop-outs, better learning outcomes, and ultimately higher lifetime earnings for graduates (each additional year of schooling provides a return of about 8–10 percent, according to some estimates). Digitization also improves school security, by tracking in real time who is present and where. Finally, digitization reduces the risks of data loss, such as exam results. Other Government Services Delivered through Digitized Access Points supported under the project 44 All capital cost figures are estimates, as investments will be determined only after technology needs studies have been carried out during the first year of project implementation. Page 46 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) 81. The Digitized Access Points will provide access to multiple other government services beyond the four flagship programs (see Boxes 1 and 2), which are expected to provide significant benefits. Quantifiable benefits come through time and cost savings to beneficiaries. The 69 newly established digitization access points (including mobile service centers) are expected to serve about 2,220,000 beneficiaries per year starting in 2021. Each beneficiary is expected to save an average of one hour (equivalent to US$5.00) and one trip (equivalent to US$5.00 in travel costs) in accessing services, including time required to gather information, apply, and follow up. 82. A summary of the assumptions used, and findings is below. • Capital and maintenance costs. The capital cost of each new digitized access point is estimated to be US$250,000 (including structures and equipment), the total for 69 is estimated to be US$17.25 million. The annual cost for maintenance is estimated to be 10 percent of the capital cost over a period of 20 years.45 • Discount rate. A discount rate of 5 percent was used, in line with World Bank guidance. 83. The main data underlying the analysis for connectivity are: (a) construction period of one year; (b) benefits start to flow from year two and continue for 20 years; (c) beneficiaries save an average of US$10 per year, considering both time and travel cost savings. Table 11: Economic analysis of the time and travel cost savings of investments in Digitized Access Points Base case Scenario 1 Scenario 2 Scenario 3 (costs up by (costs up by 20%) (benefits down by 20% and benefits 20%) down by 20%) US$173.8 Net present value US$226.5 million US$219.1 million million US$166.4 million Internal rate of return 119 percent 97 percent 93 percent 76 percent 84. The establishment of the Digitized Access Points will provide significant benefits that cannot be quantified. Citizens that would otherwise not receive a service because the time and travel costs were previously prohibitive will now be able to access it. This is likely to lead to improved health and well-being, higher productivity, and the like. Moreover, user satisfaction with accessing services is expected to rise and citizen’s trust to the government is expected to rise, due both to greater access to services and access to improved services arising from citizen feedback. Shared Digital Platforms and Services 85. The project investments in shared digital platforms and services, including cloud services, interoperable platforms, and the like are expected to provide significant benefits. Specifically, the government is expected to save on operations and maintenance costs each year by relying on a centralized shared digital infrastructure, rather than having digital systems in individual ministries and agencies. Studies from other countries show that moving to a centralized shared digital system, governments can save at least 15 percent of operations and maintenance costs. 45 All capital cost figures are estimates, as investments will be determined only after assessments of required investments have been carried out during the first year of project implementation. Page 47 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Connectivity Spillover Benefits 86. As connectivity is an enabler and prerequisites of the improved services mentioned above, the economic benefits of improved connectivity are automatically calculated in the above estimations. That said, while it is not easily quantifiable one can assume that the connectivity gains will have spillover economic effects through several aspects: (a) General positive economic effects will be achieved in the telecoms sector (via the procurement design and the DLIs) through: (a) increased openness and private sector competition to improve efficiency and the running of a large value-for-money tender with a new service approach which will set a more cost- effective standard for future connectivity investments and will reduce prices. Furthermore, as per international experience, additional economic spillover effects of improved “open access” high-speed broadband connectivity – including in the lagging regions – include employment benefits stemming from network development and services, and the stimulation of the local private sector to equip schools with indoor connectivity and services. (b) Improvements of school connectivity with ultra-fast broadband allows better access of companies and households to the internet, as the school network covers most of the Tunisian territory. In addition, the project aims to improve the quality of connectivity service that will benefit customers of telecom operators who are businesses and citizens. (c) The maintenance of active and passive equipment will create local business opportunities for the development of telecom operators who own the network or the indoor infrastructure of the schools through local private businesses. This will also integrate young professionals and startups, as the MoE has signed an agreement called the "new generation of entrepreneurs" to create 70 small businesses to maintain school buildings, and 25 other small businesses for maintenance and repair of ICT and network equipment, and 5 others for content creation; and, (d) Improving access to connectivity in digitized access points and schools will enable the most vulnerable families to access public services and help reducing the economic dimensions of the digital divide. B. Fiduciary Financial Management 87. A Financial Management Assessment (FMA) was carried out in accordance with the World Bank Policy on Investment Project Financing to evaluate the adequacy of financial management arrangements for the implementation of the project. This assessment reflects the financial management arrangements of the MTCEN, responsible for implementing and carrying out the fiduciary activities of the project. 88. Risk assessment. The MTCEN’s financial management arrangements which are based on Tunisia’s financial management systems are generally acceptable and provide reasonable assurance on the use of the Project's resources for the intended purpose. MTCEN has experience in managing World Bank funded projects (P08892946). However, considering the project-specific arrangements (around 4 implementing entities and the results-based financing mechanism), the financial management risk is assessed as Substantial. The main risks and weaknesses are related to (i) the complex institutional arrangements; (ii) the risk of double dipping 46The project amounting to US$100 million was closed in 2011 with a satisfactory FM rating. The MTCNE submitted semi-annual financial monitoring reports and annual audit reports in a timely manner and in a format and content acceptable to the Bank. The audit opinions were unqualified. Page 48 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) in the Eligible Expenditure Program (EEP); (iii) the risk associated with the lack of ICT equipment; and, (iv) the lack of experience of the Ministerial Inspectorates to act as an Independent Verification Agent of the Disbursement Linked Indicators. 89. Mitigation measures. To mitigate the identified risks and weaknesses, the following measures have been identified: (i) reliance on, and institutionalization of, the existing Delivery Unit (DU) set up for the management of the AfDB project, (ii) the development of a procedure manual including financial management section, (iii) the programming and budgeting of the IT equipment, and (iv) the General Control of Public Service (Contrôle Général des Services Publics – CGSP), whose capacity is found to be adequate, will act as an Independent Verification Agent of the DLIs. The expenditures associated with the National Assistance Program for In-Need Families (Programme National d’Assistance aux Familles Nécessiteuses – PNAFN) meet the criteria for inclusion into the project’s EEP and are eligible for reimbursement by the World Bank under the project. 90. Financial Management arrangements. The MTCEN, through the PMU (Delivery Unit), will implement the project and will be responsible for the overall fiduciary oversight including financial management. The PMU will rely on fiduciary focal points to be appointed in the beneficiaries’ line ministries. The processing of the payment will be performed by the PMU and executed by the Central Bank of Tunisia. The country financial management systems will be applied such as budgeting, accounting, internal controls (which include the segregation of duties between the payment authorizer and the public accountant as well as the ex-ante control by the financial controller, funds flow, financial reporting and external audit. This will be complemented by the provisions of the PMU’s manual of procedures. The project’s annual activities will be approved with the Bank and included in the MTCEN and beneficiaries’ line ministries annual budget. The national information management systems respectively ADEB (budgeting) and SIADE (treasury) will also be used. Primarily financial data to prepare the interim financial report will be generated from these systems and used to elaborate the project’s financial reporting statements. Two accounts will be opened at the Central Bank: i) a designated account to house investments funds; ii) a specific account for disbursing DLI funds that will be transferred thereafter into the treasury current account. Calls for funds for DLIs will be executed by the MoF based on verification reports in line with the provisions set forth in DFIL. These funds will be used to fund activities managed and implemented by MTCEN and relevant line ministries. The internal audit will be under the responsibilities of the Inspectorate of the MTCEN. The General Control of Public Service will act as an Independent Verification Agent of the Disbursement Linked Indicators. The external audit will be carried out by the General Financial Control (Contrôle Général des Finances)47 based on agreed Terms of Reference. Procurement 91. Institutional arrangements. Project’s procurement will be carried out by the PMU (DU) to be reinforced at the level of MTCEN (See Institutional Arrangements above). 92. MTCEN’s Capacity Assessment and procurement risk rating. This assessment of MTCEN capacity considers the MTCEN experience in carrying out similar procurement as well as foreseen nature of the expenditures and the likely size and complexity of the contracts under the GovTech project. MTCEN is currently implementing an AfDB-funded Support Project for the implementation of the “Digital Tunisia 2020” National Strategic Plan through a DU linked to the Information Technologies General Directorate. The assessment has revealed shortage of human resources within the executing agency. Thus, challenges related to institutional 47 in line with the existing external audit arrangements for the donors-funded projects. Page 49 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) bottlenecks and procurement delays are foreseen under the GovTech project. To mitigate the identified risks, the following measures are proposed: (i) train the PMU staff on the Bank’s Procurement regulations in general and on the Banks Standard procurement documents for the procurement of IT systems, in particular; (ii) designate the key members of the PMU, namely a Procurement Specialist (PS) whose experience and professional qualifications have previously been satisfactory to the Bank; (iii) make sure that the Project Manual of Procedures clearly describes how procurement operations will be carried out in an optimized way to support the development objectives of the project and deliver value for money; and, (iv) provide capacity building and expertise (via Component 2) and via available grant financing (where available). 93. Procurement arrangements. Procurement for the project will be carried out in accordance with World Bank Bank’s Procurement Regulations for IPF Borrowers (Regulations), July 2016 edition, revised in November 2017, and august 2018, and the provisions stipulated in the Legal Agreement. The project will be subject to the Bank’s Anticorruption Guidelines (‘Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants’), dated October 15, 2006, and revised in January 2011 and July 2016. 94. Project Procurement Strategy for Development (PPSD). Considering the substantial procurement risk and the size of the contracts to be procured under the project, a short form procurement strategy for development (PPSD) has been elaborated by MTCEN with the Bank support in accordance with the Bank’s procurement regulations. The PPSD has addressed how procurement activities will support the development objectives of the project and deliver innovations, and the best Value for Money (VfM) under a risk-based approach. Further details are provided in the PPSD. 95. Procurement Planning. The project’s Procurement Plan is being prepared based on the analysis in the PPSD and this is subject to the Bank’s no objection. The initial Procurement Plan will cover at least the first eighteen (18) months of the project implementation. The Procurement Plan should be updated periodically to reflect actual needs and changing circumstances. Any updates to the Procurement Plan should be submitted to the Bank for its review and no objection. Any changes to the Procurement Pan should be justified, as appropriate, by the Borrower through a revised PPSD. 96. Procurement of the connectivity services. Because of the nature and complexity of the connectivity contracts (tele/data communications is a regulated market for services), the MTCEN’s business needs can be better met by allowing Proposers to offer customized solutions or Proposals that may vary in the manner in which they meet the service performance requirements. The packaging (number and typology of lots) will be further detailed by effectiveness, following the Feasibility diagnostics (component 3). As to the contract type, it will be a single (or several) responsibility service contract(s) (“de bout en bout”) - which respond(s) to MTCEN concerns and also accommodates Bank’s procurement requirements through a multi-stage and innovative procurement process. 97. Use of the Systematic Tracking of Exchanges in Procurement (STEP). MTCEN will use STEP. STEP is an online system to help the World Bank and MTCEN plan and track procurement activities under the project. STEP enables auto publication of approved procurement plan, publication notices and contract award information in the Bank’s external website, UNDB online, World Bank Finances App, and World Bank Procurement App. Page 50 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) .C. Legal Operational Policies . Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No . . D. Environmental and Social . The main environmental impacts/risks of the project are linked to component 1 and 3 and may include terrestrial and aquatic habitat alteration, visual impacts, hazardous materials and waste management, electric and magnetic field, emission to air, noise and Occupational Health and Safety hazards during construction and some Community Health and Safety issues during operational phase. Social risks and impacts related to the project may include, but not be limited to, those related to management of labor in project units and for contractors, to engagement of stakeholders, public consultations and participation during project design and operation including management of grievances and expectations, . and land acquisition for physical infrastructure to be constructed under the project. 98. Key Features of the Project. The project has a country wide coverage, including both in urban, sub-urban and rural areas, in the six regions of the country. Components 2 and 3 will stimulate investments in: (i) laying of underground fiber optic cables; (ii) construction of transmission towers, and, (iii) buildings/construction/rehabilitation for server rooms and one stop shops (or citizen service centers) (iv) LAN (indoor) and WAN (outdoor) network installation. Public facilities to benefit from these investments will include but are not limited to: schools and social protection facilities. Some but not all specific construction sites have, however, yet to be selected, and the technical design of the infrastructure will be stipulated in the procurement packages. The proposed physical investments may cause risks/impacts that are relevant to the Environmental and Social Standards (ESS). Project physical investments are, however, not expected to involve activities that have a high potential for harming people, or the environment and they are located away from environmentally or socially sensitive areas. Further, civil works such as laying fiber optic cables, construction of various structures will be confined within selected public facilities, and optic cables will be buried in the right of way of roads and sidewalks, without the likelihood of impacts beyond the actual footprint of the works. These risks and impacts can be mitigated in a predictable manner. Land acquisition is expected, but it is deemed to be limited and be site specific, and is highly unlikely to induce physical displacement, partial economic displacement, however, cannot be excluded. 99. Risk Rating and Mitigation Measures: project environmental and social risks are deemed moderate. The rating draws from the assessment of the potential adverse risks and impacts on human populations and/or the environment linked to the physical infrastructure constructions/rehabilitations of: transmission towers; data centers and laying of broadband optic cables, in the right of way of sidewalks and roads. The main points: • The anticipated environmental and social risks/impacts (occupational and community health and safety, and Electro-Magnetic Field emissions during operational phase, land acquisition) of these investments are not likely to be significant and can be easily mitigated in a predictable manner. Additional risks/impacts, particularly social, may include, but are not be limited to: land acquisition; social exclusion; poor management of labor in project units and for contractors, exclusion of groups Page 51 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) which are economically or socially vulnerable; and poor management of grievances and expectations. These risks are expected to be of low magnitude, site specific, predictable, temporary and reversible. • Civil works will be confined within selected public facilities, broad band optic cables will be buried in the right of way of roads and sidewalks, without likelihood of impacts beyond the actual footprint of the works. • As site specific construction sites have yet to be finalized and the technical designs of the infrastructures will be specified in the procurement package, an Environment and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF) have been prepared to address potential environmental and social risks. The ESMF and an RPF were prepared and disclosed in country and at the World Bank by appraisal: a. The ESMF screens out substantial/high risk subprojects and contains provisions to ensure labor aspects, including child labor and labor influx, are properly addressed in the documents prepared during project implementation, including Environmental and Social Management Plans (ESMPs), bidding documents, and civil works contracts and to ensure proper consultation with project beneficiaries. b. The RPF establishes guidelines for screening social risks related to involuntary resettlement and provides guidance for mitigation measures and instruments. The RPF concluded that the project is unlikely to induce physical resettlement. Limited, partial economic displacement is expected. The preliminary estimate of the RPF suggests that - / + 12000 people may be partially affected by project activities in priority areas and about - / + 50,000 people across the country. Properties or assets expected to be potentially affected are: strips of land along sidewalks and rural roads, pieces of fences/walls, pieces of urban or rural land for tower constructions. Areas and size of impacts will be known, once sub-project locations have been established and detailed designs of the sub-subject has been completed. The RPF estimate is generic, based on project activities, number of beneficiary governorates and their populations. Resettlement action plan/s (RAPs), will be prepared in line with the guidelines of the RPF, as need be. 100. Client’s Environment and Social Standards (ESS) capacity. Client’s institutional ESS capacity is weak; however, it will be strengthened through capacity building and human capital in the form of consultants to support social risks assessments and implementation of mitigation measures. A stakeholder engagement plan (SEP) has been prepared prior to appraisal to strengthen project ownership and prevent potential conflicts between beneficiaries, likewise, a grievance redress mechanism will be put in place. All ESS apply to the project, the most relevant of which being: ESS 1 Assessment and Management of Environmental and Social Risks and Impacts; ESS 2 Labor and Working Conditions; ESS 3 Resource Efficiency and Pollution Prevention and Management; ESS 4 Community Health and Safety; ESS 5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement; ESS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources; and ESS 10 Stakeholder Engagement and Information Disclosure. 101. Stakeholder Engagement and Consultations. Project design involves multiple stakeholders. The lead among stakeholders, is the Ministry of Technology, Communication, and Digital Economy (MTCEN), responsible for the implementation of the national policies and programs in telecom and ICT infrastructure, and e-government. Other key stakeholders include: the Ministry of Education, the Ministry of Social Affairs, the Strategic Council on Digital Economy, and The Electronic Administration Unit and the Direction of Reforms and Future Planning in the Ministry of Civil Service. Governance of the project will be ensured by a steering committee composed of the various ministries and chaired by the MTCEN. Additional stakeholders beyond Page 52 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) the ministries and the implementing agencies, will include: the chambers of commerce or similar; labor union representatives; other CSOs involved in representation of enterprises and employees; municipalities and other regional and local elected representatives; representatives of the civil society; NGOs and directly impacted project affected parties (PAPs); disadvantaged and vulnerable groups, including women stakeholders. During project preparation, consultations were carried out with all key stakeholders, to inform the design and content of the project, and ensure ownership. Additional consultations including regional and local elected representatives; representatives of the civil society; and NGOs were carried out in conjunction with the preparation and finalization of the ESMF and the RPF. Consultations will be a continuous activity throughout project implementation. The client has prepared a Stakeholder Engagement Plan (SEP) prior to appraisal. The SEP includes both other interested parties (OIPs) including gender aspects, various beneficiaries and directly impacted project affected persons (PAPs). Project stakeholders will be engaged throughout the project, proportionate to the project cycle processes. 102. Key Environmental and Social Commitment Plan (ESCP) Measures Agreed with the Client are: i) establish an organizational structure with qualified staff to support management of E&S risks including an E&S focal point to be responsible of day to day implementation of ESMF and CPR; ii) prepare and implement a labor management procedure including, before effectiveness; iii) prepare and implement the arrangements for the grievance mechanism for resettlement (if established separately from the grievance mechanism, before Prior to commencement of resettlement activities; iv) ensure that monitoring and reporting on land acquisition and resettlement activities are conducted separately or as part of regular reporting throughout the project period; v) prepare and implement ESMPs and RAPs prior to any commencement of civil works; vi) incorporate the obligation of preparation of Environmental Health and Safety (EHS) plan into contractual agreements with contractors together with appropriate noncompliance remedies, prior to the preparation of procurement documents; vii) obtain or assist in obtaining, as appropriate, the permits, consents and authorizations that are applicable to the Project from relevant national authorities, prior to any commencement of civil works; viii) prepare an E&S Capacity Building Plan that shall include clear timeframe and budget for building capacity of MTCEN and other stakeholders, before project effectiveness; ix) will submit semiannual E&S performance reports to the World Bank within 60 days after end of the calendar year, throughout the project period; x) Implement the SEP throughout the project period. 103. Monitoring of ESCP. Monitoring of ESCP mitigation measures will be carried out throughout project implementation. The client will carry out day to day supervision supported by the supervision consultants of the contracts. Every six months, the client will provide a biannual ESS report to the Bank. The report should include the occurrence of incidents or accidents related or having an impact on the Project which has, or are likely to have, a significant adverse effect on the environment, the affected communities, the public or workers. The Bank will carry out its due diligence through periodic supervision missions and document its findings in the aide memoires. 104. The operation aims to meet the corporate requirements for Beneficiary Feedback in terms of public services improvement. It does so primarily through the Barometer (component 2) which should reflect user feedback, ensure user feedback informs policy recommendations, and that these are implemented by relevant agencies. A dedicated Results Framework indicator highlight this aspect. Page 53 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) E. Gender 105. The operation aims to meet the corporate requirement for the Gender Tag. It does so by mainstreaming certain gender-based mechanisms into the operational design. Based on the prior diagnostic work on digital divide and women to identify the disparities of relevance to the operation (see Box 5 and Annex 4), the project incorporated actions to address some of these disparities, notably by addressing rural women’s needs in accessing services through: (i) mechanisms within digitized access points to serve the needs of women (see Annex 4); (ii) communication campaigns which are tailored to address specific needs of the women (see Annex 4, #5); and, (c) disaggregating the measurement of service delivery access and quality by gender in the Barometer (Component 2) and the Results Framework (PDO 2 and 3). Box 5: The Digital Divide and Gender in Tunisia Diagnostics were undertaken during the preparation of the operation to look at issues of the Digital Divide and the Gender dimensions of this divide (World Bank, 2018; PWC, 2018 48). Diagnostics were based on combined methods, including literature review and qualitative approach such as focus group discussions and interviews. Key findings include the following. Constraints to internet access is especially prevalent among households in rural areas, including young women and men. The digital gap between rural and non-rural households is significant whereby broadband Internet coverage was 7 percent among rural households in 2015, compared with 38 percent among urban households. The gender digital divide is found to be especially large in these areas (World Bank, 2018). Beyond network quality and coverage, several studies have established other dimensions such as employment status, education, and income levels that can act as confounding variables that contribute to a gender digital divide. Published reports find that women are at a significant disadvantage compared to men with relation to these factors: around 50 percent of young women in rural Tunisia are not in education, employment or training; compared to about one in three young men (WB 2012). Furthermore, the national illiteracy rate is twice as high for women than men (25.6 percent vs. 12.8 percent); with higher ratio in rural areas where female illiteracy rates can reach 40 percent compared to 23 percent for men (National Institute of Statistics 2014). More broadly, the gender gap in mobile internet use is considerably wider than the mobile ownership gap in low and middle-income countries, according to “The Mobile Gender Gap Report 2018” (GSMA Connected Women). F. Climate 106. The operation also builds in mechanisms to attain the maximum of climate co-benefits, within the existing design and scope of the operation. By FY20, per the World Bank Climate MENA Action Plan (2016- 2020), the Region has pledged to raise co-benefits to 30 percent of all IBRD/IDA lending and increase the share of adaptation financing to 50 percent of overall co-benefits. Due to climate change, Tunisia is predicted to experience increased temperatures, reduced precipitation and increased climatic variability. Increased temperatures (an estimated 1-2C by 2030) will push water consumption, while lower precipitation (an estimated 5-10 percent drop) will reduce supply. Increased variability will make droughts and floods more frequent and severe. In 2016 and 2017, Tunisia faced severe drought, which for the first time, resulted in a substantial reduction of water allocations. In 2018, the agriculturally-rich and tourism-focused coastal governorate of Nabeul faced severe floods resulting in important infrastructural damages and impacting the livelihoods of the most vulnerable segments of the population 49 48 PWC was commissioned to undertake a range of diagnostic work which informed the preparation of this operation. This diagnostic work covered an analysis of the needs of women and further analytical work is ongoing to undertake surveys on the identified surveys, which will also be disaggregated by gender. 49 Climate change thus represents an important risk for Tunisia. Floods, drought and water security in particular, which are already under threat from current climate variability and social, economic, and environmental change, are likely to be under greater threat. These patterns will have multidimensional effects Page 54 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) 107. Given these climate-related hazards, the potential impacts on the project’s interventions, target sectors and target vulnerable populations are the following: • Increased Poverty and Vulnerability: an increase in disaster-related impoverishment would put pressure on the social safety net and social security systems that target poorer groups in rural areas, often dependent on agriculture; • Assets and Equipment: there may be destruction or degradation of assets (such as ICT infrastructure and equipment, or local integrate digital access points) due to extreme events and natural disasters, which would impact on the sectors and services; electricity/network outages would, of course, render the operation’s digital services unusable; • Institutional: the public administration, and operational PMU, may not have the capacity to respond effectively to disasters or to build in effective adaptation mechanisms; and, • Energy: Increase in energy usage due to drought, with a knock-on impact on connectivity and network servers. 108. The operation will address climate-related risks via the following activities: • Connectivity: the improved connectivity resulting from this component could contribute to the development of digital public systems for early warning of climate-induced disasters. Better connectivity could be leveraged to assist the authorities in the prediction of extreme events to ensure both the citizens and government agencies would be able to prepare to adapt to the impact of disasters. In the case of improved early warning, citizens could start preparing food stores and supplies to weather the impacts of the drought, for instance, to ensure their families are sustained, and the government could use such information to ensure that aspects like water management strategies (irrigation), food supply and medical supplies will be able to sustain the population. To further elaborate: • Infrastructure sharing (contemplated in the Digital Law “Code du Numérique” and in the project design: see sub-component 2.4) will promote energy efficiency. There is a possibility that where there is a lack of ICT coverage but presence of enabling infrastructures, the broadband operator could use that dark fiber (from transport infrastructure or electricity transmission lines) to reduce deployment costs (as has been done in many connectivity projects such as Gabon or Senegal “implementing a PPP to sell excess capacity of the SOGEM-fiber optic network to improve regional connectivity - P159668”) • The wholesale operator model (see Component 3) involves sharing infrastructure among different providers as mentioned above and the open access principle (that will be included in the tender documents) will also minimize infrastructure duplication as any additional telecom operator will be able to re-use that existing fiber to provide broadband connectivity services without the need to lay new fiber infrastructure. • The end-to-end responsibility contracts (services turnkey contracts) will also promote the use of new and advanced technologies that will be more efficient than old and replaced technologies (e.g. evolution of network equipment and energy saving). The tender documents can also include a clause on recycling and using materials that have no adverse impact on climate, and the equipment can be upgraded and replaced (e.g. LAN) when technologies evolve due to the on the Tunisian economy, affecting agricultural productivity, energy use, water dynamics, and the livelihoods of vulnerable populations whose income is linked to these factors. Efforts to promote climate resilience in these key sectors will have important longer-term effects. As precipitations and temperature levels worsen and extreme events such as droughts become more intense, there is an even greater need to implement concerted, multi-sectoral solutions to the most affected areas, notably the agriculturally-depended northwest and the tourism-focused coastal regions, in an integrated manner. Page 55 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) procurement modality. Also, wherever suitable and feasible, Wi-Fi and Fixed Wireless Access (FWA) technologies can be promoted to reduce cabling (wireless Local Area Networking) as a viable solution for broadband access. Additionally, some sites would be able to use solar energy power source (main or alternate) and therefore mitigate adverse climate impact. Finally, by improving broadband connectivity, this will enable implementation and outreach of e-services across the territory (other 2 components in the operation), access to e-services will help to reduce the time and the frequency of visits/movements required for citizens to obtain selected services, as they physically had to go to the public administration outlets for some procedures and for instance on the SP and Education side, some could be done online and in less stages. • Supporting the climate resilience of vulnerable populations: the operation’s target vulnerable populations – poor households, low-income women, non-salaried temporary agricultural workers, pensioners and illiterates – are the most vulnerable to climate-related risks. The operation will improve their access to services and welfare, thus preparing them better for dealing with climate-related risks. Improving the socio-economic well-being of these groups is known to increase a nation’s resilience to climate-induced extreme weather. Moreover, the elderly and disabled, who are more vulnerable to the impacts of climate change and who tend to have less income to adapt to it, will be positively impacted by the program through the improvement in pension services. This will contribute to adaptation of infrastructure in homes, better nutrition during droughts due to the accessibility of additional funds for households and better health care for climate-induced illnesses. In addition, the Social Protection delivery system, which will be supported under this project (Components 1 and 2), will be adaptive to accommodate different programs, including programs to address climate vulnerability such as disaster response, as the targeting approach would heavily focus on geographic characteristics. • Improving identification and targeting: the operation’s creation of citizen identifiers and databases (which specifically focus on the most vulnerable groups) would help the government to respond better to extreme weather when it happens, through better identification and quicker transfer of safety net mechanisms. Notably, the registry in the MSA (Components 1 and 2) includes information on climate vulnerability in the sense that GPS information (georeferenced) is collected for each household in the registry. In addition, information includes source of energy for each household. Such a registry has been developed and used in many other countries for disaster risk management and disaster response and could be leveraged in this operation (i.e. what is called an adaptive social protection system which can be used for many different purposes, including in the context of the Disaster Risk Management program currently under development in Tunisia). • Mainstreaming through the Environmental and Social Framework (ESF): this will mitigate against negative social and environmental impacts (in itself contributing to climate preparedness); and utilize the most energy efficient measures and technologies in all investments under the operation. G. Grievance Redress Services 109. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an Page 56 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) 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 57 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) V. KEY RISKS 110. The overall risk of the project is rated as substantial, notably given the high-specification ICT procurements and the need for a high level of institutional coordination. Table 12 summarizes the substantial and high risks and their mitigation measures. Table 12: Key Risks and Mitigation Measures Key Risks Key Risks, Explanation of Risk Rating and Targeted Mitigation Measures in Design Although Tunisia has stabilized politically, the post-revolution social and political context remains fragile, especially given that national elections are schedule for the end of 2019. Civil service wages have increased alongside declining bureaucratic effectiveness. There are also risks of weak bureaucratic incentives for change, and resistance to the uptake of new GovTech reforms and new GovTech Political risk and technologies. Mitigation measures include: capitalizing on the cross-political party support for the Digital governance Transformation agenda to maintain support for this agenda; ensuring high-level administrative buy-in in (Rating = the design and implementation of the GovTech work; addressing incentives via the DLIs; building in a Substantial) strong stream of work on change management and showing civil servants how the reforms can improve their work and job satisfaction; and, by default, the project design creates internal and external pressures for reform uptake and implementation (through greater transparency, improved monitoring of services and increased citizen engagement). The macroeconomic environment has deteriorated and remains fragile: fiscal deficits remain high and debt is above the 70 percent debt-to-GDP benchmark for emerging markets. Growth prospects are also low. Corrective macroeconomic and fiscal measures, including monetary policy tightening if inflation Macroeconomic continues, and implementation of wage bill and pension reforms are needed. Mitigation measures, risk supported by the IMF's FEP program and the World Bank's DPL, are currently underway to address these (Rating = High) risks and strengthen the macroeconomic environment. Mitigation measures such as efficiency gains in the services, plus targeting improvements, will lead to fiscal savings. Other development partners (EU, AfDB, EBRD, KfW and AFD) also provide technical and financial support to accelerate the implementation of structural reforms to boost growth and ensure macroeconomic stability. There is a high alignment between government national and sectoral strategies and the operation. Risks include weak inter-sectoral coordination; weak coordination between National ICT strategy and sectoral strategies; and risks relating to whether the other sectoral projects – such as in the Education sector of the Social Protection sector, do not achieve their objectives. Mitigation includes: activities and DLIs to ensure national-sectoral coordination; close monitoring of progress and course corrections through the Sector Strategies Barometer; ensuring strong dialogue by the Bank and other donors to ensure the operations in the and Policies different sectors are implemented and are implemented coherently (for instance, between PREFAT and (Rating = GovTech, and between the SP TA and GovTech); strong mobilization of additional resources via other Substantial) donors who are interested in contributing to selected investments (such as devices) in the Education and SP sectors (such as the Millennium Challenge Corporation or AfDB); strengthening the PMU and sectoral teams via recruitment of experts; implementing a strong program of change management to ensure coordination between the purchase and use of devices and the digital solutions proposed under Component 1; and, having a strong strategy at the level of the MSA and MoE for a coherent approach to GovTech. Technical Design The project requires strong technical capacities, and coordination of complex multi-sectoral of Project or interventions. Key mitigation: simplification of the operation to the extent possible with a focus on two Program (Rating = sectors and four priority services; strong mechanisms for coordination and change management. Substantial) Institutional There are risks of weak horizontal and vertical coordination, limited capacity to implement the new Capacity for GovTech solutions and the risk that ICT civil servants will out-represent service delivery-related civil Page 58 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Key Risks Key Risks, Explanation of Risk Rating and Targeted Mitigation Measures in Design Implementation servants. Mitigation includes: simplifying project design to the greatest extent possible; adopting clear, and Sustainability simple and transparent institutional arrangements; having a strong component on change management (Rating = and collaborative leadership; consolidating procurement contracts and providing hand-holding on all Substantial) relevant areas (see fiduciary sections); taking a gradual and phased approach without being overly ambitious; ensuring strong project design readiness; and, reducing the burden on the public administration by leveraging private sector inputs and activities (such as through expert support or contracting ICT as a service). FM is substantial due to the complex institutional arrangements and the lack of experience at the MTCEN in implementing an IPF with DLIs. Mitigation includes: see Annex. Procurement is a very substantial risk Fiduciary due to the risk of delays, especially delays associated with procuring and developing complex ICT-related (Rating = contracts. Mitigation measures include: strong procurement training and support for the PMU; seek Substantial) open source solutions whenever possible and implement procedures to avoid vendor and technology lock-in, which is a source of waste and inflexibility; and, focusing on software and infrastructure as a service rather than all development in-house or traditional Waterfall projects. This relates to “technological” risks. New technologies pose multiple risks, including: the pace of implementation of ICT projects in relation to the evolution of technology and its adoption by users. This can lead to duplication and fragmentation of investments. The adoption of new technologies can also create a risk of digital exclusion for those who do not have access to ICTs and training, and finally, there Other (Rating = is also a risk in terms of data security and confidentiality, if the quality of new technologies and gov-tech Substantial) solutions are not adequate. Key risk mitigation measures include: (a) ensuring a strong authentication system, and a strong role for the Data Protection Agency in implementation; (b) updating ICT strategies to ensure the optimization of technological investments and the “right” technological choices; (c) using DLIs to incentivize regulatory reform and institutional coordination. . Page 59 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) VI.RESULTS FRAMEWORK Results Framework COUNTRY: Tunisia Digital Transformation for User-Centric Public Services Project Development Objectives(s) The project development objective (PDO) is to improve equitable access to and the quality and accountability of selected Social Protection and Education services through a GovTech approach. Access will be measured in terms of: (i) increase in functioning access points for the selected public services; (ii) increased usage of the selected public services. Gains in equitable access will be measured in terms of two dimensions: (i) improved Social Protection systems (which in themselves improve the ability of the GoT to identify and serve needy groups); (ii) access for targeted vulnerable groups: (a) low-income groups; (b) women in rural areas; (c) illiterates; and (d) disabled people. Quality will be measured in terms of: (i) user satisfaction; and, (ii) time/efficiency gains in delivery. Accountability will be measured in terms of: (i) increased availability of sector and service-related information; and, (ii) increased responsiveness of public service providers to user feedback. A "GovTech" approach has two core elements: (i) putting the citizen at the centre of the reform process; and, (ii) combining public sector reform innovations, change management and digital technologies. Page 60 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Project Development Objective Indicators RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Project Development Objective: Improve equitable access, quality and accountability of selected serv Increased access to the targeted Social Protection 0.00 13,000.00 376,000.00 439,000.00 604,000.00 670,000.00 Services (Social Assistance and Social Security) (Number) Increased access of “target vulnerable groups“ to Digitized 0.00 0.00 6,000.00 10,800.00 15,600.00 20,700.00 Access Points (Number) of which women (Number) 0.00 0.00 4,200.00 7,560.00 10,920.00 14,490.00 of which illiterate (Number) 0.00 0.00 1,200.00 2,160.00 3,120.00 4,140.00 of which disabled (Number) 0.00 0.00 600.00 1,080.00 1,560.00 2,070.00 Increased user satisfaction on Cash Transfer Program, Online Enrollment and Digital 0.00 3.00 10.00 20.00 Learning Management System (Percentage) Published barometer reports on the flagship services (Social Protection and Education) and No No Yes Yes Yes Yes ministerial decisions taken based on report recommendations (Yes/No) PDO Table SPACE Page 61 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Intermediate Results Indicators by Components RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 Component 1: User-Friendly Institutional and Digital Delivery Solutions New social assistance targeting system operationalized No Yes Yes Yes Yes Yes (Yes/No) Density of social security contributions among the target 0.00 0.00 1.00 2.00 4.00 5.00 population (Percentage) Percentage reduction of documents needed to join 13.00 0.00 5.00 10.00 15.00 25.00 social security (Percentage) Number of persons with new social protection / universal 0.00 0.00 1,000,000.00 2,000,000.00 3,000,000.00 4,000,000.00 health care cards (Number) Primary and secondary students enrolled for the school year through the 0.00 0.00 50.00 60.00 75.00 80.00 Education Management Platform (Percentage) Number of parents who have an active account on the 0.00 0.00 15,000.00 17,000.00 20,000.00 25,000.00 education management platform (Number) Number of students with learning risks (including of drop-out) identified through 0.00 0.00 200.00 1,000.00 1,500.00 2,000.00 the Education Management Platform (Number) Development of online learning applications for No No Yes Yes Yes Yes Page 62 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 students (Yes/No) Number of transactions in Digitized Access Points in 0.00 0.00 36,000.00 43,200.00 62,400.00 82,800.00 targeted geographical areas (Number) Component 2: Public and Private Sector Capabilities for Speedier and Responsive Service Delivery Percentage of students with school identifier (Percentage) 0.00 0.00 20.00 40.00 60.00 90.00 Percentage of social assistance beneficiaries / applicants 0.00 0.00 40.00 60.00 80.00 95.00 verified their social security (Percentage) Number of interministerial data exchange services 0.00 0.00 2.00 3.00 4.00 6.00 (Number) Operationalization of the public service delivery No Yes Yes Yes Yes Yes barometer (Yes/No) Civil servants (in Education, Social Protection, Digitized Access Points) who are trained 0.00 450.00 2,000.00 3,550.00 4,100.00 4,100.00 on new GovTech methods (Number) of which in Education (Number) 0.00 0.00 0.00 1,000.00 2,000.00 2,500.00 of Which PS (Number) 0.00 400.00 900.00 1,400.00 1,400.00 of which Digitized Access 0.00 50.00 100.00 150.00 200.00 Points (Number) Component 3: Stimulating Improved Indoor and Outdoor Connectivity in Education and Social Protection Schools with high-speed 0.00 700.00 1,200.00 1,800.00 2,700.00 Page 63 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 broadband access meeting quality of service standards (QoS) (Number) SP local units with high-speed broadband meeting quality of 0.00 25.00 50.00 100.00 150.00 250.00 service standards (QoS) (Number) IO Table SPACE UL Table SPACE Monitoring & Evaluation Plan: PDO Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection PDO1 relates to a new targeting/social security system so it starts from zero and increases year on year. it is focused, by design, on targeting only low-income Increased access to the targeted Social MSA with groups via social protection Bi-annual MSA with CRES, CNSS PMU Protection Services (Social Assistance and CRES, CNSS targeting. Social Security) * The beneficiaries of these two services belong to a vulnerable population of low-income people. Thus, with regard to social security, the target Page 64 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) population includes the self- employed, including the poor and vulnerable, who have very limited income and are currently not covered by any social security, including agricultural workers. * The annual target values result from the sum of the annual target values of 2 sub-indicators: i) number of households (applicants and beneficiaries) eligible for social assistance according to the new targeting process. After the introduction of the new process in the first year, the number of eligible households should be 600,000 by the end of the project. ii) Number of new social security affiliations among the target population. Every year, 13,000 new affiliations are registered among the target population. The project is expected to increase the annual number of new Page 65 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) affiliations from 13,000 to 14,500 per year, reaching a new membership of 70,000 by the end of the project. Sub-indicators for the PDO1 1- Number of households (applicants and beneficiaries) eligible for social assistance according to the new targeting process Y1) 0, Y2)350000,Y3)400000,Y4)55 0000, End )600000 2-Number of new social security affiliations among the target population: Y1)13000,Y2)2600,Y3)39000 ,Y4)54000,End 70000 • PDO2 relates to the new service centres – to be Ministry of implemented from Y1 – so Education starts at zero.2 It is Ministry of Education CNTE, Increased access of “target vulnerable disaggregated by gender. It Annual CNTE, MCSPAPP PMU MCSPAPP groups“ to Digitized Access Points will measure rural women’s (DGRPA) (DGRPA) access to services via the digitized access points/service centres Target vulnerable groups, Page 66 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) in addition to low-income groups, are: women in rural areas; illiterates; and disabled groups. The annual target values are based on the number of transactions made by vulnerable populations accessing digitized access points, measured as such: T*12*Dp*Pop • T: The average number of monthly transactions in digitized access point is estimated at 100. • Dp: This refers to the number of operational digitized access points: 20 (Y2) 36 (Y3) 52 (Y4) 69 (Y5) • Pop: The approximate share of transactions made by the target vulnerable groups : 25% of which women of which illiterate of which disabled Page 67 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) • PDO 3 relates to a measure of user satisfaction. The baseline of satisfaction on the flagship services will be design and established by the end of Y1. 3. It will also disaggregte user satisfaction by gender (and this gender disaggregation will also be built into the Barometer from Component 2). Satisfaction could be measured on the 5-point Increased user satisfaction on Cash scale from “Very MoE, MSA, Annual MoE, MSA, Barometer PMU Transfer Program, Online Enrollment and Unsatisfied” to “Very Barometer Digital Learning Management System Satisfied.” The parameters will be clearly defined to ensure simple measurement and attribution to the project investments (for example, very focused questions such as: do you find the resources you need on line?). The GoT is aware of the strengths and limitations of user satisfaction surveys. It is also aware that this is one of many metrics. It is also aware that action needs to Page 68 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) be taken to improve user satisfaction. • PDO4: the barometer is not yet established.The result will be considered to be achieved, that is “yes”, when a minimum of 50% of the recommendations related to Education and to Social Protection have been acted upon. The Barometer report will be designed in the first year (Y1). It will be published for MCSPAPP Published barometer reports on the the first in the second year (UAE) with MCSPAPP (UAE) with flagship services (Social Protection and Annual PMU (Y2), including MoE/MSA, E MoE/MSA, E people Education) and ministerial decisions taken recommendations that are people based on report recommendations expected to be acted on by ministerial decisions pertaining to specific indicator results and/or other recommendations. Starting from the third year, the report will also publish ministerial decisions that have been effectively taken based on recommendation from prior year reports.Ministries will benefit from information on Page 69 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) citizen feedback and complaints that are collected through existing systems, such as the complaints mechanism and e-People. ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection This indicator will measure MSA, CRES, New social assistance targeting system the delivery of social Annual MSA, CRES, INS Survey PMU INS Survey operationalized assistance transfers and benefits This indicator will be defined/measured by either the share of the population with total social coverage (4 quarters per year) or the average number of quarters contributed.For example, ,in Density of social security contributions Annual CNSS CNSS PMU 2018, the share of non- among the target population salaried workers (TNS) who contributed all 4 semesters was 35% among the non- agricultural non-salaried workers and 21% among the agricultural non-salaried workers. Page 70 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) These include but are not limited to (will be further refined during the As-is-to- Be review) : (1) request for affiliation (CNSS hardcopy) (2) copy of the national identity card of the employer (3) copy of the legal representative of the company (4) copy of the residence card for foreigners (5) an original excerpt from the commercial register (6) a MSA, CNSS, Percentage reduction of documents certified copy of the tax Annual MSA, CNSS, MoF PMU MoF needed to join social security identification card (7) certified copy of the authorization to exercise the activity (8) attestation of exercise of the activity (9) certificate of ownership of the agricultural land (10) certified copy of the duly registered rental agreement (11) certified copy of the work leave (12) a birth certificate that is less than 3 months old (13) a staff statement. At the end of the project, Page 71 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) the 25% reduction means that a quarter of the documents needed at the beginning of the project will no longer be required to join the social security system. CNAM with Number of persons with new social Annual CNAM with MAS PMU MAS protection / universal health care cards Primary and secondary students enrolled This includes assisted Ministry of Annual Ministry of Education PMU for the school year through the Education enrollment through Education Management Platform Digitized Access Points. Active is measured by a Number of parents who have an active specific number of times (at Ministry of Annual Ministry of Education PMU account on the education management least 3 times) that a parent Education platform has logged to the platform during an academic year. This covers largely secondary and college level. Number of students with learning risks Ministry of The system is designed to Annual Ministry of Education PMU (including of drop-out) identified through Education detect students at risk and the Education Management Platform trigger the response mechanism this indicator measure Ministry of Development of online learning whether student online Annual Ministry of Education PMU Education applications for students learning applications were developed Number of transactions in Digitized Target Digitized Access Annual MCSPAPP MCSPAPP Page 72 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Access Points in targeted geographical Points refers to the new (DGRPA) wit (DGRPA) with the areas stationary points h the other other Ministries established in the 55 Ministries districts as well as the mobile points; including in the most under-served areas.The annual target values are measured as such: T*12*Dp • T: The average number of monthly transactions in digitized access point is estimated at 100 (Y2), 100 (Y3), 100 (Y4), 100 (Y5) • Dp: This refers to the number of operational digitized access points: 20 (Y2) 36 (Y3) 52 (Y4) 69 (Y5) In 2018, the number of primary students was: 1,100,790, and the number Percentage of students with school of secondary was: 894, 305. Annual MoE MoE PMU identifier Given that the student numbers fluctuate, the target is based on percentages. Percentage of social assistance This indicator measures the MSA, CNSS Annual MSA, CNSS and CNRPS PMU beneficiaries / applicants verified their percentage of verified social and CNRPS social security assistance applicant Page 73 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) Examples for the education sector: verification of the civil status of the parent/student, verification of the address of the parent/student, school situation of a student; etc. MTCEN (MoE Number of interministerial data exchange Annual MTCEN (MoE and MSA) PMU Examples for the social and MSA) services sector: verification of the civil status of a beneficiary, verification of the family cluster, tax situation of a recipient of social assistance; etc. This indicator measure MCSPAPP Operationalization of the public service whether public service Annual MCSPAPP MoE, MSA PMU MoE, MSA delivery barometer delivery barometer was operationalized For example, teachers and MoE staff will be trained on new education platform and MoE, MSA, Civil servants (in Education, Social applications, and social CNSS, CNAM, MoE, MSA, CNSS, Annual PMU Protection, Digitized Access Points) who workers and MAS staff will CRES, CNAM, CRES, MCSPAPP are trained on new GovTech methods be trained new process of MCSPAPP evaluating beneficiaries using improved targeting approach. ME, MAS, Annual ME, MAS, Funds, MFP PMU of which in Education Funds, MFP Page 74 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) ME, MAS, Annual ME, MAS, Funds, MFP PMU of Which PS Funds, MFP ME, MAS, Annual ME, MAS, Funds, MFP PMU of which Digitized Access Points Funds, MFP This is measuring Connectivity as a Service (Indoor and outdoor) as well Ministry of Schools with high-speed broadband Ministry of Education as QoS (high-speed Annual Education PMU access meeting quality of service with MTCEN broadband access and with MTCEN standards (QoS) bandwidth for schools) with well-defined Service Level Agreement (SLA). This is measuring Connectivity as a Service (Indoor and outdoor) as well as QoS (high-speed MSA with SP local units with high-speed broadband Annual MSA with MTCEN PMU broadband access and MTCEN meeting quality of service standards (QoS) bandwidth for SP local units) with well-defined SLA. ME IO Table SPACE Page 75 of 96 ANNEX 1: DLIs, DLRs and Verification Protocol DLI (original/ Year 1 Year 2 Year 3 Year 4 Year 5 no change, Lead revised, new, agency marked for deletion) DLI 1. Adopting MTCEN DLR 1.1.a An DLR 1.2.The DLR 1.3a. Digital DLR 1.4. 60% of DLR 1.5. Key Govtech (DLR 1.1; official action plan Law approved by actions Cumulative 80% and Digital DLR 1.3) document has included in the CoM and identified in the actions identified Economy been signed at As-is-to-Be submitted to action plan in the action plan Regulatory MoE and ministerial study(ies) on parliament mentioned in mentioned in DLR Reforms MSA (DLR level the flagship DLR 1.2 have 1.2 have been 1.2; DLR authorizing services is DLR 1.3b been implemented 1.4; DLR the exchange approved by Digitalization implemented 1.5) of data CoM Development between MAS Agency has been and another created sector DLR 1.1.b An official document has been signed at ministerial level authorizing the exchange of data between MoE and another sector Allocated US$6 US$1 million US$2 million US$1 million US$1 million US$1 million amount million Status of Achievement/ Disbursement DLI 2. Delivery Ministry DLR 2.1a. DLR 2.2. DLR 2.3. MSA DLR 2.4 MSA DLR 2.5. Sixty- Responsiveness of Civil Government Twenty (20) and MoE have: and MoE have: nine (69) and Access for Service decree on digitized access (a) published (a) published digitized access Under-Served (DLI 2.1; Open data is points are fully their respective their respective points are fully Groups 2.2; 2.5), approved by operational in dataset dataset operational in MSA and CoM selected areas inventories, and inventories, selected areas Education (b) published and (b) (DLI 2.3; DLR 2.1b. 40% of above published 60% 2.4) Government mentioned of above decree on datasets in mentioned digitized accordance with datasets in access points open data accordance Page 76 of 96 is approved by standards with open data CoM standards Allocated US$6 US$1 million US$1 million US$2 million US$1 million US$1 million amount million Status of Achievement/ Disbursement DLI 3. MTCEN DLR 3.1. DLR 3.2. Extend DLR 3.3. DLR 3.4. DLR 3.5. Mobilize Optimizing Adoption by network Mobilize Mobilize additional public Connectivity CoM and coverage to additional public additional resources of publication of cover fifty- resources of public 4,460,000 EUR to National High- seven (57) 2,676,000 EUR resources of meet the Speed publicschools to meet the 3,568,000 EUR connectivity and Broadband in areas connectivity and to meet the digital needs of Plan, including without digital needs of connectivity public schools a detailed indoor/outdoor public schools and digital (other than the action plan on connectivity (other than the needs of public public schools connectivity public schools schools (other supported under and digital supported under than the public Part 3 of the needs of Part 3 of the schools Project) in areas public Project) in areas supported with no schools.50 with no under Part 3 of indoor/outdoor indoor/outdoor the Project) in connectivity connectivity areas with no indoor/outdoor connectivity Allocated US$8 US$2 million US$2 million US$2 million US$1 million US$1 million amount million Status of Achievement/ Disbursement 50This will include a detailed action plan on connectivity and digital needs of schools. This will cover the following aspects: detailed feasibility study and dynamic map of school connectivity status, needs assessment, define Service Level Agreements (SLA) standards (including bandwidth provision per student or per site, opportunities to use schools as points of presence and monitoring and payment conditions), technical specifications and procurement documentation, multi-phased investment action plan (prioritization, lots, regions, appropriate connectivity solution). Page 77 of 96 DLI Definition Scalability of Protocol to evaluate achievement of the DLI and data/result verification Description of achievements Disbursements (yes/no) Data source/agency Verification Procedure entity 1 DLI 1. Adopting DLR 1.1: In order to be effective, the document No MTCEN/MoE/MSA GCPS The GCPS should verify that an official document Key Govtech and should be approved at an inter-ministerial was approved at an inter-ministerial level and Digital Economy level. In sum, it should allow all government published on a government website. Regulatory administrations, particularly those working Reforms across and within the education and social affairs sectors, to open their data and information systems to other administrations. Each administration may therefore request the opening/access of information and data from another administration in view of digitizing services for government or for citizens and businesses. Any data exchanges involving citizens should pass through the national register of the unique citizen identifier. DLR 1.2: The project will support an “As-is-to- Yes MoE and MSA GCPS The GCPS will receive official confirmation that the Be” review (or several) of administrative MTCEN action plan included in the study (or studies) were processes related to the four flagship services taken up on the agenda of the CoM and approved that will include an action plan aiming to by the meeting (e.g. minutes of the CoM meeting). simplify, automate, and optimize relevant processes using human centered design and The disbursement amount will be determined by journey mapping approach. the number of flagship services included in the The action plan will cover organizational, “As-is-to-Be” study(ies) which recommendations technical and regulatory aspects and should have been approved by the CoM. For example, if a include actionable and quantifiable items such study covering only one flagship service is as the adoption of simplified protocols, approved by CoM, then the client will receive 25% Page 78 of 96 reduction of the number of supporting of the allocated disbursement amount. The documents, reduction of the time required for amount to be disbursed against the DLR can be each process, etc. The four flagship services scaled with respect to the number of flagship are: (i) the social assistance system (cash and services covered in the study or studies approved benefit transfers); (ii) the social security by CoM, out of the four services. program (pensions and health insurance); (iii) the education management platform (including enrollment, student monitoring and drop-out detection); and, (iv) the learning management platform. The recommendations should be adopted at the CoM. DLR 1.3a. It is expected that the CoM approves Yes MTCEN GCPS The GCPS will verify the official adoption of the the draft digital law and submits it to digital law by the CoM and subsequently, its parliament. : submission to Parliament. The new digital law (to be approved) will replace the existing telecommunication law to The GCPS will verify and confirm the creation of provide a new modern regulatory framework theDigitilization Development Agency which will based on global developments in technology be formalized through a government decree or and telecommunication. It will be an important other legal instrument approved by the lever to stimulate the digitization of the government. government and the growth of the digital economy in Tunisia. If only one of the two DLRs is achieved, then the DLR1.3b: The current Delivery Unit, housed at client will receive 50% of the allocated amount. In the MTCEN, is expected to be transformed into other words, the amount to be disbursed against an official public agency ‘Digitalization the DLR can be scaled with respect to the number Development Agency’ that will have a lead of adopted texts by CoM compared with the total responsibility in conceiving, piloting and number targeted in the DLR. monitoring the implementation of national digital projects. DLR 1.4-1.5: This series of DLRs is a Yes MoE and MSA GCPS The GCPS is expected to collect and validate continuation of DLR 1.2. It looks at the progress implementation progress reports produced by the and effectiveness in the implementation of the ministries in charge of delivering the flagship recommendations outlined in the “As-is-to-Be” services. The GCPS should measure the Page 79 of 96 review of the four flagship services. The implementation rate of the recommendations recommendations are actionable activities outlined in the draft or final/approved “As-is-to- that cover regulatory, legal, and technical Be” review of the four flagship services. aspects. The amount to be disbursed against the DLRs can be scaled with respect to the number of implemented recommendations compared with the total number of outlined recommendations in the “As-is-to-Be” review. DLI 2. Delivery DLR 2.1: It is expected that the CoM approves Yes Ministry of Civil GCPS The GCPS will verify the official adoption and Responsiveness the draft decree establishing the Service, particularly publication of these texts with respect to current and Access for organizational and implementation the Electronic in-place legal proceedings. Under-Served arrangements of Open data in Tunisia in Administration Unit Groups addition to another text on digitized access (EAU) and points: Administrative If only one of the two DLRs is achieved, then the Reforms General client will receive 50% of the allocated amount. - The open data decree will cover Directorate In other words, the amount to be disbursed organizational and technical against the DLR can be scaled with respect to the arrangements needed to be implemented number of adopted texts by CoM compared with to improve the adoption of open data the total number targeted in the DLR. principles and standards in the public sector - The decree on digitized access points will institutionalize a new management and organizational model for digitized access points, as part of the broader government initiative on citizen service centers DLR 2.2 and DLR 2.5: The government’s action Yes Ministry of Civil GCPS The DGRPA and/or the institutional body in charge plan rests on deploying at least 69 digitized Service, particularly of digitized access points will provide a detailed access points to provide human-assisted the Administrative report on the activities and implementation access including but not limited to the Reforms General progress of digitized access points. following services: (a) social assistance Directorate (DGRPA) This report should enable the GCPS to identify the application; (b) social security enrollment and number of digitized access points that are fully updates; (c) health insurance enrolment; (d) operational. The GCPS will audit the report, based assisted school enrollment. Access to other on a representative sampling, to verify that the administrative services, which can be delivered information provided in the report on the Page 80 of 96 through such access points will also increase operational status of access points is correct and (where feasible and appropriate). in line with good practices and standards and meet performance metrics set by the responsible body. For these access point to be fully operational The GCPS evaluation will cover the following the government must ensure that capital aspects, including but not limited to: functioning investments covered by the project such as pf alternative channels to access digital services costs of rehabilitation and IT equipment, is such as assisted access; queue management complemented with other key measures such systems, maintenance of IT equipment, service as ensure adequate staffing (number and quality measured through an institutional survey.) competencies), new business models and financing arrangements to cover recurrent The amount to be disbursed against the DLRs can costs, and others to be included in the draft be scaled with respect to the number of decree to be adopted by CoM. established operational access points compared with total number targeted in the DLRs. DLR 2.3 and 2.4: According to the Open Data Yes MoE and MSA GCPS, with The Ministries will provide a detailed report to decree expected under the DLR 2.1, the MSA support CGSP about indicators progress with links to their and MoEare expected to publish on their from EAU respective inventories of data, and the published webistes: datasets on their websites. The GCPS will verify - In Y3 their respective data inventories the accuracy of this information and assess (structred accroding to a model definied whether standards and specifications in the under the decree in DLR 2.1a) which which decree have been duly followed. represents the list of public data produced or collected in their service delivery and housed in their different information systems and databases; - In Y3, 40% of their datasets listed and published in their respective data inventories according to Open data decree provision of DLR 2.1a; - In Y4, 60% of their datasets listed and published in their respective data inventories according to Open data decree provision of DLR 2.1a. The inventory model will include different sections describing the attributes of each Page 81 of 96 dataset; for example, data sources, responsible agencies, periodicity, collection and updating procedures, and classification of data (personal, or publishable), etc. Data inventories must be updated annually. They will constitute a catalog of public datasets that will enable agencies to organize and prioritize their publication and progressively make them available to citizens and the general public (the published data will be a subset of the datasets that will have been referenced in the inventory). 3 DLI 3. DLR 3.1: The National Broadband Plan will No MTCEN GCPS The National Plan, including detailed action plan Optimizing provide an updated assessment of the current on connectivity and digital needs of schools will be Connectivity broadband penetration and speed by discussed and endorsed by CoM and subsequently governorate and provide policy options that published on the website of the MTCEN. The GCPS accelerate Ultra-Fast Broadband (UFB) will receive official confirmation that the deployment in appropriate geographical documents were taken up on the agenda of the locations and, strengthen the involvement of CoM and endorsed (e.g. minutes of the CoM the private sector and the level of competition meeting). The documents will be published on the in the sector for broadband. It will: MTCEN’s official website - the URL link will be - develop the main technology, regulatory communicated to the GCPS. and financial elements needed for the Government of Tunisia to update its UFB policy that will foster private sector participation to accelerate the roll-out of UFB. - include a detailed action plan on connectivity and digital needs of schools, to include: detailed feasibility study and dynamic map of school connectivity status, needs assessment, define Service Level Agreements (SLA) standards (including bandwidth provision per student or per site, opportunities to use schools as points of presence and monitoring and payment Page 82 of 96 conditions), technical specifications and procurement documentation, multi-phased investment action plan (prioritization, lots, regions, appropriate connectivity solution). DLR 3.2: The GoT will extend network Yes MTCEN, MoE GCPS The GCPS will verify through data provided by the coverage to 57 schools in white areas with Instance National des Telecommunication as well [3G/]4G technology, or appropriate as by the Ministry of Education that network broadband technology (including Fixed coverage was extended to these 57 schools. Wireless Access and Broadband via Satellite). The amount to be disbursed against the DLR can be scaled with respect to number of schools effectively reached compared with total targeted number in the DLR. DLR 3.3 -3.5: The GoT is expected to mobilize Yes MoF, MTCEN, MoE GCPS The GCPS will use publicly available and/or official additional public resources to meet the governments documents (e.g. national budget connectivity and digital needs of public schools law, budget performance results reports, annual (other than the public schools supported under report of ITC Development Fund) to verify total Part 3 of the Project) in areas with no or weak amount of public resources effectively mobilized indoor/outdoor connectivity to meet the amount targeted in the DLRs. The mobilized amounts must be allocated for the Given that the project represents a partial purposes of meeting the connectivity and digital response to the overall connectivity needs needs of schools (e.g. investments in expressed by the government, this series of indoor/outdoor connectivity, purchase of DLRs intends to incentivize the government to bandwidth for schools, etc.). leverage additional resources to meet overall needs. The amount to be disbursed against the DLR can be scaled with respect to the amount effectively mobilized compared with total amount targeted in each DLR. Page 83 of 96 ANNEX 2: Financial Management and Procurement Assessment Report 111. Financial Management and Procurement assessments have been carried out in accordance with the World Bank Policy on Investment Project Financing to evaluate the adequacy of financial management arrangements for the implementation of the project. 112. Financial Management, Disbursements and Procurement. The financial management responsibilities for the project will remain with the Delivery Unit established to implement the project. Though the MTCEN possesses the required capacity for implementing donor-funded projects, technical assistance will be required to ensure that it is adequately staffed and that it has appropriate controls and procedures in place. The financial management arrangements for the project, including accounting and reporting arrangements, internal control procedures, planning and budgeting, external audits, funds flow, organization and staffing arrangements, are assessed as satisfactory. Nevertheless, risks are rated as substantial as outlined below: • Risk 1: Complex institutional arrangements involving four sectoral ministries o Mitigation Measure #1: Developing an operational manual of fiduciary procedures o Mitigation Measure #2: Sharing fiduciary responsibilities between the DU and sectoral ministries o Mitigation Measure #3: Payments processed by the DU and executed by the BCT • Risk 2: MTCEN’s first experience in with DLIs; hence risk meeting the indicators, identifying eligible expenditures, and sectoral disbursements risks o Mitigation Measure #1: Use of the Programme National d’Assistance aux Familles Nécessiteuses – PNAFN program to justify eligible expenditures/disbursements: 145 million USD in annual transfers o Mitigation Measure #2: Opening a dedicated account for the project for disbursements o Mitigation Measure #3: Need to budget IT equipment in time based on credible justification 113. As a result of the above-mentioned constraints, it is required that: (i) the existing DU will be responsible for the day to day management of funds and accounting for the project; and (ii) an agreement is reached with the Bank on the format of the consolidated Interim Financial Reports (IFR), the IFR under the EEP and the audit terms of reference and outlined in the operations manual. To strengthen DU capacity, additional measures are needed including: (i) the recruitment of an additional accountant to coordinate all FM aspects of the project including the relationship with the executing agents and the timely production and monitoring of consolidated FM reports; and (ii) the elaboration of the Procedural Manual including FM and disbursement arrangements. In matters related to audits: (i) General Financial Control (Contrôle Général des Finances – CGF), which is seen as acceptable to Bank standards, will audit the project financial statements including the designated account for the project; and (ii) the General Control of Public Service (Contrôle Général des Services Publics – CGSP) which capacity is found adequate will act as an Independent Verification Agent of the Disbursement Linked Indicators. Page 84 of 96 Financial Management 114. Country public financial management analysis. The last Public Expenditure and Financial Accountability assessment (PEFA 2015) concluded that the legal and administrative framework for public financial management offers an adequate level of assurance regarding reliability of information, predictability and control in budget planning and execution and a strong control environment. However, the report also identified that there is still room for improvement particularly with regards to budget comprehensiveness, transparency and accountability. Ongoing technical assistance has been mobilized by the donors (particularly the European Union and the World Bank) to address the remaining shortcomings. The project will make wide use of the Tunisian public financial management country systems particularly, the procedures for budget preparation, execution, internal control51 and monitoring; the use of the national budget system ADEB; the use of the treasury single account system; and ex-post review controls such audits performed by government independent entities. 115. Organizational arrangements and staffing. MTCEN is endowed with a Delivery Unit(DU) created to manage the AfDB project. This DU will also handle the project’s activities. The DU comprises a coordinator, a project management officer, a financial management specialist and an accountant. Considering the number of beneficiaries’ line ministries (4), a fiduciary focal point will be appointed in each line ministry. Additional responsibilities of the financial management team within the DU will include: a) project transaction recording and accounting; b) review of requests for payments and related supporting documentation submitted by technical implementers to the DU for payment processing; c) preparation of compiled project financial information including annual project financial statements and bi-annual interim unaudited financial reports (IUFR); d) preparation of “dossier des paiements” to be addressed to the Central Bank of Tunisia for payment of eligible expenditures from the Designated Account (DA); e) perform periodic reconciliation of project DA account; f) provide advice to other technical implementers entities on FM and disbursement related aspects; and g) maintenance of adequate files of the Project. 116. Annual work program. In parallel with the preparation of national budget law, the DU will collect, prepare and submit to the Bank, a proposed annual work program and budget for the following Fiscal Year, giving details of: (a) a time table of programs and activities scheduled for implementation during that next following Fiscal Year; and (b) the estimated cost of each such program or activity, along with the budget line item and source of funding corresponding to each program or no later. Lack of synchronization with the national budget law preparation is a key risk that could affect the planning process of the project. For example, delays in submitting the project’s activities in the budget law could lead to the absence or underestimation of the project costs in the budget law, specifically for IT equipment. The programming and budgeting of the activities based on credible justification will be critical. The task team will support the DU and line ministries to mitigate this risk. 117. Budgeting. The annual budget law approved by the parliament will include the project work program validated by the World Bank. The identification of the EEP is the first major risk that could affect the project’s entire budgeting cycle and the DLIs. Indeed, the selection of the expenditures substantiated by activities insufficiently mature could translate into low budget execution and in turn affect the DLIs. To mitigate this risk, a thorough review of the budget lines has been carried to identify 51The Tunisian system is based on the principle, typical of francophone PFM systems, of segregating the responsibilities and separating the roles between the payment authorizer and public accountant Page 85 of 96 mature and pertinent activities in line with the project’s development objectives. 118. Eligible Expenditures Program. The expenditures associated with the National Assistance Program for In-Need Families (Programme National d’Assistance aux Familles Nécessiteuses – PNAFN) meet the fiduciary criteria for inclusion into the project’s EEP and are eligible for reimbursement by the World Bank under the project. This program consists of (i) an unconditional cash transfer and social assistance through a monthly financial assistance; (ii) an allocation of free health care cards, and (iii) an additional cash transfer for households with children of school age. The targeted groups52 are (i) the families deprived of material support; (ii) the household heads unable to exercise a professional activity/trade; and (iii) the households with an adjusted annual income not exceeding TND 585 (US$194). The monthly amount transferred is about TND 150 (US$ 50) through the National Postal Office bureaus (La Poste Tunisienne). The program is being supported by a World Bank funded project with the view to improve its impact. Areas for improvement include the targeting and the identification of the beneficiaries. The financial execution of the Program is exemplary. The associated expenditures do not include any procurement related activities. Detailed Object Code Amount 2018 (in Line Ministry Object Code and Description and Description USD million) 033363100027 National Ministry of Social 3336 Public Intervention Assistance Program for 146.7 Affairs Expenses In-Need Families 119. Information management system. The system used to register budget appropriations is ADEB (Système d’aide à la décision budgétaire). This is the national computerized budget system that allows for the proper record of commitments and payments, and for adequate budget monitoring and control as it offers a sound control environment and an adequate segregation of duties. The ADEB system has an official budgetary classification which is the basis for the preparation of consolidated budget execution information of all government expenses (budget). Besides, for all the expenditures financed under the Loan, the Delivery Unit will make use of the system SIADE (Système informatisé d’aide à la dette extérieure) to maintain separate accounts related to external funding management. Information from both, ADEB and SIADE on project are processed to elaborate the project financial statement. The project might use the Monitoring, Evaluation and Implementation of Public Projects system (Système de Suivi et d’Evaluation de l’Exécution des Projets Publics) developed by the National Centre for Information System (Centre National d’Informatique, CNI) which is being gradually deployed. The system has a financial module which allows to produce specific reports. The system can be installed at both, the central and regional levels. 120. Accounting. In Tunisia, all financial and accounting operations of the Government are carried out, controlled and accounted for according to the public sector accounting standards laid down in the Public Accounting Code (Code de la Comptabilité Publique) which is on cash basis. The project accounting will use public sector accounting standards stated in the Public Accounting Code. The project financial statements will be prepared based on information generated from ADEB and SIADE. 121. Internal Controls. The project will use the existing internal control system in place within the MTCEN (which is being enhanced through the development of a manual of procedures) and the 52 About 304,000 households Page 86 of 96 beneficiaries’ line ministries. This will be complemented by the DU’s manual of procedures which includes detailed additional procedures at the decentralized level. This manual will include the Results Based Financing approach. The MoF internal control system is deemed satisfactory by the Bank. This system encompasses the following: i) appropriate guidelines for annual budget preparation and implementation, ii) clear segregation of duties between the payment authorizers and the public accountant, iii) ex ante control of the financial controller, iv) regular reconciliations of bank accounts that provide reasonable assurance of the accuracy of financial records, v) acceptable procedures for documentation and record retention, and vi) verification of the eligibility of the expenditure by the Delivery Unit before submission of payment order to the Central Bank as per requirements stablished in the project Loan Agreement and Disbursement and Financial Information Letter. 122. Funds Flow. The project’s funds will be disbursed in a designated account to be opened at the Central Bank on behalf of the project. Further advances to the project’s designated account will be made upon reporting on the use of a prior advance. The DU (through the CBT) will report on the use of loan proceeds advanced to the project’s designated account in accordance with the Disbursement and Financial Information Letter. Disbursements for the DLIs will be transferred through a dedicated account opened at the Central Bank of Tunisia into a treasury current account. The project’s funds will be disbursed into a designated account on behalf of the project opened at the Central Bank. Disbursements for the DLIs will be transferred from the dedicated account into the above-mentioned treasury account and will be used to finance activities undertaken by MTCEN and the other concerned ministries. Total project’s eligible expenditure will be summarized in the Statement of Expenditures (SOE) prepared by CBT and will be submitted to the Bank for processing. If the Bank determines that an ineligible expenditure has been financed by loan proceeds, the Bank may require to whether refund the amount, or in exceptional circumstances, as provided in the Bank disbursement policies, provide substitute documentation. The description of the funds flow is presented below: IPF DLIs World Bank World Bank DLI verified by the IVA and approved by the WB Dedicated Account (EUR) Designated Account CBT (EUR) CBT Treasury Current Account Suppliers / Service Providers Transfers of funds Legend Flow of documents Payment to suppliers Page 87 of 96 123. Disbursement Linked Indicators and Related Reporting Requirements . Disbursements on the DLIs will follow a results-based financing approach by establishing a set of DLIs that would trigger disbursements for an overall amount of US$20 million. Reimbursement will be the disbursement method for the DLIs. The reimbursement will be made directly into the dedicated account opened at the Central Bank on behalf of the project then transferred into the treasury account. Once the MTCEN and other beneficiaries’ line ministries have met the agreed DLI targets and the World Bank has approved them, the funds disbursed under this modality will be documented against the presentation of the EEPs for an amount which will be the lesser between the amount allocated for the achievement of the DLRs and the incurred EEPs at the time of the verification of the DLIs. 124. DLI verification. Given the number of beneficiaries (MTCEN and line ministries) involved in the DLI mechanism, the best placed independent verification agent is the General Control of Public Services (Controle General des Services Publics). The assessment of this entity confirmed the adequacy of its capacity to carry out the planned task. The entity will issue a separate annual opinion on the accuracy and the fair view of the information presented by the DU on the EEP and DLI. This separate certificate should be sent to the Bank upon completion of the verification. 125. Financial reporting. The project will primarily use ADEB (budgeting) and SIADE (treasury) to gather, record and summarize project’s financial transactions as well as elaborate the financial statements. The format of the Interim Financial Reporting (IFR) to be prepared 45 days after the end of the calendar semester and the Financial Statements will be agreed during the negotiations and reflected in the Project Operational Manual. Each IFRs will comprise the following: (i) report on the sources and use of funds cumulative (project-to-date; year-to-date) and for the period, showing budgeted amounts versus actual expenditures, including a variance analysis; (ii) forecast of sources and uses of funds; and (iii) progress statement on each EEP (budgeted amounts versus actual expenditures) and schedule of DLIs analysis. 126. Internal audit. The Ministerial Inspectorate of MTCEN will act as internal audit unit for the project. To this end a technical assistance included in the project will be elaborated in collaboration with Ministry of Finance as part of the implementation of the broader PFM reform agenda. This technical assistance will include the development of a risk map and the deployment of the risk-based audit in the line ministry. 127. External Audit. The General Financial Control, an entity acceptable to the bank, will audit the project financial statements including the designated account. The financial statements will be prepared in accordance with acceptable accounting standards and audited in accordance with acceptable international public sector auditing standards. To that end the DU, will prepare the terms of reference (TOR) for the audit work and will submit it to the Bank for its acceptance. The TORs will encompass both the audit of the financial transactions and an assessment of the internal control and should cover all the operations implemented under the project as well as all sources of financing. As a minimum requirement, the auditor will produce (a) an annual audit report including his/her opinion on the project annual financial statements and (b) a management letter on internal controls. The MTCEN through the DU should submit the audit report to the Bank within six months after the end of the fiscal year audited. Page 88 of 96 Procurement 128. Institutional arrangements. Project’s procurement will be carried out by the Delivery Unit. In accordance with the provisions of the decree # 2012-1997 of September 11, 2012, fixing the attributions of the MTCEN, MTCEN, proposes the general policy in the field of information and communication technologies and ensures its implementation in order to consolidate the role of the sector in the economic and social development. MTCEN is implementing Digital Tunisia 2020 which is a five-year strategy targeting ICT technologies to increase the number of jobs and export earnings within the ICT sector. This strategy aims to make ICT an important lever for socio-economic development. In addition to the Digital Tunisia 2020 strategy, which focuses on the entire sector, the Smart Tunisia program is intended for companies in the offshoring sector. 129. Procurement arrangements for the project. MTCEN will follow the Procurement for the project will be carried out in accordance with World Bank Bank’s Procurement Regulations for IPF Borrowers (Regulations), July 2016 edition, revised in November 2017, and August 2018, and the provisions stipulated in the Legal Agreement. The project will be subject to the Bank’s Anticorruption Guidelines (‘Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants’), dated October 15, 2006, and revised in January 2011 and July 2016. 130. Compliance of IPF with DLI activities with procurement rules: While most of the identified IPF with DLI activities are non-procurable, the Bank’s procurement rules apply to all contracts financed wholly or in part by the Bank for procurable items. When procurable items are organized as a budget line, the Bank’s rules apply to the entire budget line, not merely that part financed by the Bank. For contracts below international market thresholds, the Bank may agree to use Borrower’s procedures; it may also, in exceptional cases, agree to the use of other procurement arrangements, including the Borrower’s, for international bidding, provided they are consistent with Bank core procurement principles and meet other policy requirements, including governance standards. For contracts not financed by the Bank, but within the scope of a Bank-financed project, the Borrower may use other procedures if the Bank is satisfied that they ensure that the goods, works, non-consulting services or consulting services procured are of a satisfactory quality, compatible with the other elements of the project, consistent with the project objectives, delivered or completed in a timely manner, and are priced so as not to have an adverse effect on the economic and financial viability of the project. 131. Compliance with anti-corruption guidelines: As stated in the Bank’s Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, the Borrower ensures that, for IPF with DLI activities, preventive measures are in place (e.g. application of Bank’s debarment list) and to report and investigate allegations of misconduct. Remedial measures apply only to those expenditures financed by the Bank. 132. Procurement Methods and approaches. The analysis and research undertaken, as part of PPSD will help MTCEN design the different procurement approaches and methods to be used to deliver the Project’s Procurement Objectives. It is likely there will be several different procurement approaches and methods. The selection of the recommended procurement approaches and methods should only take place once all realistic options have been identified, described and appraised through the PPSD. Page 89 of 96 133. Standard Procurement Documents. For international competitive procurement, MTCEN shall use the Bank’s Standard Procurement Documents (SPDs), available on its external website at www.worldbank.org/procurement/standarddocuments. For Procurement involving national competitive Procurement, MTCEN may use its own Procurement Documents, acceptable to the Bank. Thresholds for procurement approaches and methods (US$ thousands). Works Goods, IT and non-consulting services Open Open national RfQ Open Open national RfQ international < ≤ international < ≤ ≥ ≥ 10,000 10,000 300 3,000 200 300 Prior review thresholds (US$ Millions). Type of procurement Threshold (US$ millions) Works (including turnkey, supply & installation of plant and equipment, and PPP) 10 Goods, information technology, and non-consulting services 2 134. Prior Review Threshold: Selection decisions subject to Prior Review by Bank as stated in Appendix 1 to the Guidelines Selection and Employment of Consultants: Selection Method Prior Review Threshold Comments 1. Competitive Methods (Firms) Above US$ 1,000,000 2. Single Source (SSS) (Firms) Above US$ 1,000,000 3. Individual (competitive) Above US$ 300,000 4. Individual (SSS) Above US$ 300,000 Note: • These thresholds apply to all procurement activities regardless of their procurement/selection methods. There is no automatic requirement to undertake prior review for direct selection for value less than these thresholds; • The determination of whether a contract meets the procurement prior review threshold is based on the estimated value of the contract or the package -when the selection document contains more than one lot/slice including all taxes and duties payable under the contract; and • Irrespective of the above thresholds, technical aspects of procurement documents, including technical specifications and nonlegal terms of reference (TORs), are reviewed and cleared by the Team leader. 135. Short list comprising entirely of national consultants: Short list of consultants for services, estimated to cost less than US$ 300,000 equivalent per contract, may comprise entirely of national consultants. 136. Summary of the PPSD: The PPSD prepared by MTCEN with Bank’s support has shown that all project’s procurement will be carried out through competitive and innovative approaches which will allow MTCEN achieve value for money (VfM) and the project development objectives (PDOs). The challenges related to institutional bottlenecks and procurement delays are foreseen under the Page 90 of 96 GovTech project. To mitigate the identified risks, the following measures are proposed: (i) train the DU staff on the Bank’s Procurement regulations in general and on the Banks Standard procurement documents for the procurement of IT systems, in particular; (ii) designate the key members of the DU, namely a Procurement Specialist (PS) whose experience and professional qualifications have previously been satisfactory to the Bank; and (iii) make sure that the Project Manual of Procedures clearly describes how procurement operations will be carried out in an optimized way to support the development objectives of the project and deliver value for money. 137. Operating costs. This would include all expenses necessary to ensure proper implementation of the project, including but not limited to local travel, communication and bank charges. The quarterly budget for operating costs would be prepared by the MTCEN and cleared by the Bank. 138. Monitoring & Evaluation. The DU, anchored in the MTCEN, will assume principle responsibility for coordinating the M&E and reporting of project outcomes and results. All the ministries and agencies involved in this multi-sector project will be responsible for collecting and sharing data with the DU. Page 91 of 96 ANNEX 3: Implementation Arrangements and Support Plan 139. This section describes how the Bank will support implementation of the Program, with particular emphasis on: (a) reviewing implementation progress and achievement of project results and DLIs; (b) providing support for resolving emerging project implementation issues and building institutional capacity; (c) monitoring the adequacy of systems performance and monitoring compliance with legal agreements; and (d) supporting the government in monitoring changes in risks. 140. The Digital Transformation for User-Centric Public Services project will require focused support from the World Bank team particularly during the early stages. The main challenge will be to strengthen the capacity of implementing agencies to plan activities and coordinate implementation with the different line ministries involved. During the first twelve months, funds will be used to provide technical assistance to implementing agencies to address the weaknesses identified during detailed assessments. It will be particularly important to support the MTCEN in the rolling out of the project, including the establishment of a monitoring system to monitor results. Funds will also provide focused technical support to implementing agencies in the areas of governance and IT in relation to the activities identified. 141. Technical and Change Management Support. The Bank team has supported the Government on the sequencing of reform measures, providing technical advice on specific design elements and the overall approach to change management. The Bank team will provide regular support on change management and the sequencing of reform, as well as review and quality assurance for the technical design and specifications of major procurement packages. The Bank team will liaise closely with the international change management experts (to be hired under the project; and in continuation with the Bank’s effort in this matter as part of the Collaborative Leadership program) to ensure that change management issues are in the forefront. Thus, from the inception of the operation, the client project team will be coached and provided with the necessary training by the Bank project team. More specifically, the project will finance a program of on-demand technical assistance (See component 2) to assist the relevant government agencies in the achievement of the objectives, investments and DLIs under the program; including (i) development of a change management strategy and action plan to facilitate the adaptation and ownership by all actors and stakeholders involved in this project; (ii) collaborative leadership training and institutional communication to help implementing agencies better coordinate implementation of the reform; and (iii) information, education, and communication (IEC) strategies for each sector for their e-services to facilitate outreach to beneficiaries and stakeholders. 142. Result Monitoring. Regular supervision missions will assist the Government in tracking progress towards the achievement of the intended project results and advice on adjustments in project design and the reform strategy as needed to support the achievement of the project objectives. This will ensure that outputs translate into real impact in terms of a more efficient and effective public sector management. 143. Mid-Term Review. A mid-term review will be conducted by the Bank team to assess the progress of the project and will eventually adjust the project design and DLIs. 144. Procurement. During project implementation, the Bank’s procurement specialist will provide regular supervision, in line with procurement guidelines. Procurement implementation support by the Bank will include: a) providing training to the Government and the DU; b) providing detailed guidance on the Bank’s Procurement Guidelines; c) reviewing procurement documents and providing timely feedback; and d) monitoring procurement progress against the Procurement Plan. In addition, post reviews will be carried on selected contracts subject to post review. Contract deliverables will be physically inspected – as appropriate and feasible. Page 92 of 96 145. Financial Management. The Bank will conduct financial management implementation support and supervision mission every six months following the project effectiveness and more often if required. In addition, the regular IFRs and annual project audit reports will be reviewed by the Bank. As required, a Financial Management Specialist will assist in the implementation support and supervision process. Financial Management implementation support by the Bank will thus include: (i) providing training to the DU’s financial management unit and the project team, and (ii) reviewing the project’s financial management system and its adherence to the Project financing agreement, disbursement and financial information letter (DFIL) and Project Operations Manual, including all financial management arrangements, 146. The team will maintain continuity and a regular dialogue with Government counterparts on all relevant operational, technical and policy issues. There will be two formal supervision and implementation support missions per year complemented by ongoing support provided by field-based staff in Tunis, Tunisia. Table - Implementation Support Inputs Skills needed Time Focus Staff weeks Estimate First twelve Procurement training (two sessions) Procurement Specialist 2 months FM training and supervision FM specialist 2 Dialogue with Client & Team leadership TTL 4 Technical and procurement review of the bidding Procurement Specialist 1 documents PFM Specialist 1 GovTech/IT Specialist 2 Social Protection Specialist 1 Education Specialist 1 Change Management Change management 2 Specialist FM specialist 4 12-24 Months Financial management disbursement and Disbursement specialist reporting 2 Change Management Change management 1 Specialist Rest of the Project supervision coordination & technical and TTL and Sector Specialists 12 Project sector Change Management Change management 1 Specialist Page 93 of 96 Table - Skills Mix Required Skills Needed Number of Number of Trips Comments Staff Weeks per year TTL Project Management 20 weeks None Field based and Support Procurement Specialist 6 weeks 2 missions per year Field based E-Government & 6 weeks 2 cost-shared missions IT/GovTech Specialist per year Education Specialist 4 weeks 2 missions per year Field based Social Protection 4 weeks 2 missions per year Field based Specialist FM Specialist 4 weeks 2 missions per year Field based Page 94 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) ANNEX 4: Digital Divide: Addressing Gender and Inequalities Population Potential barriers to accessing GovTech Project interventions addressing the barriers Segment services and providing feedback on them Women in rural • Weak internet access The activities and mitigation measures summarized below will be areas • Low mobile phone ownership undertaken and comprised in the project design to address issues • Low mobile internet usei of access constraints to and quality of digital services. • Low literacy levels • Low education level 1. Deepening engagement with women and vulnerable groups : • Low digital literacy (technical and ICT A comprehensive Stakeholder Engagement Plan will include skills required to use a computer, a targeted surveys to get feedback from women, and vulnerable mobile phone or internet) groups, youth, low-income households, illiterates, disabled • High safety and security concerns persons, elderly, households from lagging regions) to identify (confidence in using IT resources) the barriers to technology use. As part of this SEP, focus group • Lack of perceived relevance of using discussions will also take place to allow identifying the key internet/mobile internet barriers to women, the poor, the elderly and the disabled’s • Restrictive social norms where women’s access to information and use of technology in the project’s activities in the public sphere are areas of intervention. Consequently, the actions to address constrained resulting in lack of social specific barriers will be reflected to the succeeding activities, networks (with less chances to obtain including communication and roll out. the information and resources needed) 2. Conduct citizen journey mapping exercises to identify the and reducing their mobility needs, behaviors and problems faced by users (particularly vulnerable groups) when using public services and • High costs of internet/mobile internet, interacting with public service providers for selected life lack of resources and weak economic events in the area of intervention of the project . During participation preparation, multiple challenges faced by citizen-users have Women in • Lack of thorough analysis on gender gap been identified and citizen journey mapping exercises will general to identify whether women (different help deepen them: (i) weak access to information, weak and groups of women by age, level of uneven access to service provider facilities, especially in the education, income, …) can easily access rural regions; (ii) slow, inefficient, costly and complex information in practice and if they procedures, weak accountability; (iii) high incidence of participate in the decision making corruption; (iv) inefficient/inexistent citizen feedback related to e-governance policies and mechanism. strategies as well as the legal 3. Monitoring and evaluation: Creation of a baseline and framework (Are they included in collection of gender and vulnerable groups disaggregated committees that devise these policies data (age, income, level of education, marital status, region) and strategies? Are their voices heard?) for performance management, for each of the PDO-level Young men and • Weak internet access indicators, and intermediate indicators. women, • High costs, lack of resources and weak 4. Providing access to digital services via multiple channels particularly in economic participation (online, physical and mobile facilities with agent and rural areas • Lower use of IT for accessing operator assistance) to reach the maximum of users: information and providing feedback digitized access points, postal offices, and other existing Illiterate • Low access to adapted information public facilities (especially for those where infrastructure is population channels to allow getting the suitable for the physically disabled). information in a form that can be used 5. Implement targeted public information and sensitization by illiterate population (e.g. voice campaigns via traditional channels (grassroots campaigns, recognition) Page 95 of 96 The World Bank Digital Transformation for User-Centric Public Services (P168425) • Lower digital literacy (technical and ICT brochures, newspapers, radio spots, etc.) and digital tools skills) and economic participation (websites, SMS, chatbots, etc.). These campaigns will also • Lower use of ICT tools for accessing consider the different needs of the population segments. For information and providing feedback example, campaigns for women can be tailored by: (i) incorporating a basic internet literacy session to address low Low-income • Weak internet access digital literacy; (ii) offering an information session on internet beneficiaries • Lower skills security to raise their confidence in using the internet; (iii) /households • High costs, lack of resources and weak rolling out reach-out campaigns at the grass-root level to economic participation encourage them to access a nearby digital point (which will be Physically • Lack of access to digital tools and established under this project), considering the restrictive disabled physical provider facilities due to social norm for women’s activities in the public sphere. citizens physical disability (i.e. the visually Additionally, the project will support and incentivize proactive impaired, limited mobility) and disclosure of information through DLIs and results indicators inadequacy of content, not user-friendly measuring responsiveness and conformity to existing and new for the disabled (e.g. content needs to regulations (open data and access to information). be audio and not video for visually 6. Institutionalization of a centralized mechanism “Public impaired) Service Delivery Barometer” to improve monitoring of Elderly • Low digital literacy (technical and ICT citizen feedback and satisfaction on specific services and literacy and skills) subsequent government responsiveness: The barometer will • Limited mobility collect feedback from different subgroups through various • Low access to adapted information mechanisms (surveys, SMS, etc.). Results will be made public. channels to allow getting the The Barometer questions will account for gender differences information in a form that can be used and be disaggregated at vulnerable population levels by elderly (e.g. adequate language) 7. Training and capacity building: A training component as part of the project’s technical assistance will be conducted to create awareness of the gender and vulnerable groups’ implication of the digital transformation. Training will be provided, particularly, to relevant policy makers and bureaucrats, to enhance their awareness and understanding of the different impacts of the current operation on women and vulnerable groups in Tunisia. Training will also include a module on citizen centricity. iThe gender gap in mobile internet use is considerably wider than the mobile ownership gap in low and middle-income countries, according to “The Mobile Gender Gap Report 2018” (GSMA Connected Women). Page 96 of 96