The World Bank Tonga Digital Government Support Project (P154943) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 13-Mar-2019 | Report No: ISDSA24546 Aug 28, 2018 Page 1 of 15 The World Bank Tonga Digital Government Support Project (P154943) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Tonga P154943 Tonga Digital Government Support Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) EAST ASIA AND PACIFIC 28-Nov-2018 16-May-2019 Digital Development Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance Ministry of Finance Proposed Development Objective(s) The objective of the Project is to improve the Recipient’s capacity for digital public service delivery.� Components 1. Enabling Environment and Continuous Improvement 2. Government Enterprise Architecture 3. Core Registries: Civil Registration and National ID Systems 4. Government Digital Infrastructure 5. Project Management PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 4.65 Total Financing 4.65 of which IBRD/IDA 4.65 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 4.65 IDA Grant 4.65 Aug 28, 2018 Page 2 of 15 The World Bank Tonga Digital Government Support Project (P154943) Environmental Assessment Category C-Not Required Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Country Context 1. Tonga is a small Pacific island nation of approximately 108,000 people. Its economy is based largely on external aid and remittances and modest contributions from tourism, agriculture and fisheries. Over recent years, Tonga has enjoyed robust growth and macroeconomic stability. Growth continued to be strong at 2.7 percent in 2017 following 3.4 percent in 2016, supported by construction, agriculture, tourism, remittances, and strong private credit growth. Inflation spiked in 2017 because of a new import tax and an increase in domestic food prices. The country’s external position weakened slightly owing to construction-related imports, with reserves supported by strong remittances.1 2. The Second National Millennium Development Goals (MDG) Report, estimates that 22.1 percent of the population lived below the national poverty line in 2009. 2 While extreme poverty is negligible in Tonga, many people still experience some form of hardship, lacking access to basic services, economic opportunities and cash for basic needs. Tonga ranked 101st (out of 188 countries) in the United Nations Human Development Index 2016. The high prevalence of non-communicable diseases, particularly among women, remains one of the most serious long-term challenges, and there is a strong need to improve quality of education for skills development and employment. 3. Its remote location, small size and featuring dispersed islands poses many challenges for Tonga, including inefficient public service delivery and high transaction costs. Regional disparities in service delivery and economic opportunities particularly in the outer islands remain a concern. Recent investments in improved connectivity in Tonga—notably broadband Internet access—coupled with global trends in the development of digital technologies, offer an opportunity to rethink the government’s service delivery model. Building the enabling platform and associated institutional capacity to support a new model for digital public service delivery could help address regional disparities and reach Tongan households and businesses more efficiently and effectively. 1 IMF Country Report No.18/12, January 2018. 2 Asian Development Bank Aug 28, 2018 Page 3 of 15 The World Bank Tonga Digital Government Support Project (P154943) 4. Tonga is also vulnerable to natural disasters, and in any given year it is likely that Tonga is either hit by a major natural disaster or is recovering from the previous one. Among many climate change adaptation measures, Tonga’s Climate Change Policy 2035 identifies a need to strengthen the research, monitoring and management of data and information including early warning or disaster warning systems to support resilience.3 The availability of reliable digital infrastructure and platforms are critical for the government to strengthen disaster warning systems and increase its reach to the citizens and residents. Sectoral and Institutional Context 5. The passage of the first Communications Act liberalized Tonga’s telecommunications sector in 2002. The market now comprises two full-service operators: the state-owned Tonga Communications Corporation (TCC) and privately-owned Digicel Tonga. A small number of internet services providers (ISPs) also entered the market. In 2009, the Ministry of Information and Communications (MIC) was established with a mandate to oversee telecom regulation and information and communication technologies (ICT) policy. In March 2017, the Communications Act 2015 came into force and the Communications Commission Act 2015 established an independent telecom regulator, the Communications Commission, with powers to enforce a more pro-competitive regulatory framework. Until the Commission is fully established, the Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Change and Communications (MEIDECC) is responsible for sector regulation. 6. The landing of the first submarine cable in August 2013 improved Tonga’s digital connectivity significantly over the past five years. The cable connects the main island of Tongatapu to Suva, Fiji while an additional domestic optical fibre link to the islands of Vava’u and Ha’apai became ready for service in March 2018. The cable system is operated by the wholesale operator Tonga Cable Limited (TCL) which was partially privatized in 2017. Mobile phone penetration now exceeds 95 percent of the population up from just 54.6 percent in 2013. 3G services were launched in 2013, and more than 50 percent of the population is now able to access 3G mobile broadband services. 4G/LTE services are available throughout Tongatapu and expansion is planned for the other main islands. 7. Fixed broadband access remains relatively low at around 1.5 percent of the population. While one of the service providers has built an optical fibre backbone on Tongatapu island, business and household deployment of optical fibre has so far been limited, and fixed broadband services are primarily provided through asymmetric digital subscriber lines (ADSL). Wireless LAN connectivity is limited to Nuku’alofa and other urban centres. The Tonga Internet Exchange Point (IXP) was completed in August 2018, which has provided a great improvement in local Internet performance and use of available submarine capacity on the TCL cable. 3Tonga Climate Change Policy, February 2016, https://www.preventionweb.net/files/48404_tongaclimatechangepolicy2016.pdf Aug 28, 2018 Page 4 of 15 The World Bank Tonga Digital Government Support Project (P154943) 8. The Government has taken some steps to develop digital government. A Cabinet Subcommittee on E-Government was established in 2017. MEIDECC has set up an E-Government unit and invested in a containerized data centre and government network infrastructure through a five-year contract with Tonga Communications Corporation. All ministries in Nuku'alofa are now connected to the Internet and nearly all Tonga government agencies in Nuku‘alofa are connected to the government secure network (GSN), with 8 agencies awaiting installation. A holistic “all of government� approach is envisaged, going forward. A Ministerial-level Sector Based Project Steering Committee has been established to oversee digital government development, as per Cabinet Decision 822/Sept 21, 2019; it is chaired by the Minister of Finance and the Deputy Prime Minister. The new Committee’s members are the ministers for MEIDECC, Trade and Economic Development, Public Enterprises, Health, and Justice. 9. Despite some progress, more efforts are required to strengthen the whole of government approach to digital government, establish the critical foundations and platforms and to deliver prioritized digital services to citizens and residents. Government process mapping and enterprise architecture have yet to be developed. Most government transactional services, for example, obtaining birth, marriage and death certificates, are still manual and paper based. Some work has been undertaken to digitize internal government document flows, but there is no standard document management system nor standard government email, and the development of information systems has so far been fragmented at the ministry/agency levels. Further, while most ministries have a website, there is no common standard/look and feel, nor are data management or data protection standards in place. Some online services, for example, business registration, customs and tax payments have been developed, but remain in early stages of development and issues have been reported such as with online payments and data generation capabilities. 10. In 2017, the Cabinet approved a decision to establish a shared digital government infrastructure. In the first instance, this has entailed commissioning the establishment of a Government network and containerized data centre: through a five-year contract with TCC and its vendor, Huawei Communications. MEIDECC is currently in the process of transitioning existing databases and services to the new data centre environment. For the medium term the Government envisages this as a back- up/business continuity option. The Government is looking at options to commission a suitably qualified service provider to implement a G-cloud solution. The Government has also established a Computer Emergency Response Team (CERT), under MEIDECC provision and located at Tonga Cable Ltd (TCL). 11. The Government has adopted its first Digital Government Strategic Framework, 2019-2024 as of January 2019. The Framework is based on a holistic approach and has the following objectives: (i) Implement Digital Government Across All Government Agencies and Activities; (ii) Advance Digital Inclusion for All Tongans; (iii) Strengthen Governance and Efficiency; (iv) Promote Data Sharing and a Service-Oriented Information Systems Architecture; and (v) Enhance Citizen Engagement. The TDGP sets directions for the Government’s use of Information and Communication Technologies (ICT) or digital technologies, with the ultimate intent of improving Government business process and workflow Aug 28, 2018 Page 5 of 15 The World Bank Tonga Digital Government Support Project (P154943) efficiencies, improving the quality of life for citizens and residents, while reducing the complexity for business transacting with Government. The DGSP promotes the use of digital technologies within Government ministries and agencies. That promotion includes an ambitious transition from paper- based transactions to digital Government. As Government data and information is transitioned to a digital format Tonga will benefit from a new, modern model of ICT delivery for all agencies. This model is expected to enable a far more integrated, shared, accurate, and inclusive information flow within and across all Government agencies and also supporting open data initiatives in the future. 12. A necessary step on the path to Digital Government is the enhancing and linking Tonga’s civil registration and identification (CR & ID) systems. CR & ID systems are important for a number of reasons, including to provide for registrations of births, deaths and marriages, so all citizens and residents of Tonga have proof of their legal identity and vital events, and to enable the production of accurate vital statistics, for use in planning and governance. But most importantly for the purposes of digital government, CR & ID systems enable people to reliably assert their legal identity in contexts such as education, health and social services, employment, elections, immigration, property ownership and banking. In the context of Tonga, a trusted ID system may also make visa applications easier, cheaper and faster. The ability of many citizens and residents of Tonga to access online government and commercial services will be dependent on the development of an effective ID system that enables them to authenticate their legal identity and thus establish trust in an online environment, including through electronic signatures. In the longer term, there is also the potential to harmonize the ID system with other countries in the Pacific and more broadly to support cross border transactions and potentially for the card to be accepted as a machine readable travel document (MRTD), for example in the Pacific region. 13. Tonga’s CR system, managed by the Office of the Registrar -General (ORG) under the Ministry of Justice, is one of the stronger ones in the Pacific, using a recently-developed bespoke software and has achieved high levels of birth registration coverage (96% of children under five). However, a decrease in birth registration coverage among newborns has been experienced recently because of a new procedure by the health sector to require certain information before issuing birth notifications, which are a prerequisite for birth registration. Marriage and death registration have low coverage. While new records (the ‘flow’) are digital through the new software, the ORG has recently begun scanning archived CR records (the ‘stock’). Moving forward, the ORG is planning to amend the Births, Deaths and Marriages Registration Act 1926 and regulations to modernize the CR system and its processes, as well as carry out catch up campaigns to proactively register the births of children around the country who have not yet been registered. The Ministry of Health, with support from the Asian Development Bank (ADB), will soon introduce an electronic Health Information System (HIS), which is expected to be able to push birth and death notifications from health facilities to ORG, which can automate part of the birth and death registration process while also allowing the ORG to identify and follow up on births and deaths that have not been registered. An informal, cross-ministerial civil registration and vital statistics (CRVS) working group helps to coordinate the efforts of different stakeholders to improve the coverage of the CR system and to maximize its utility for the production of vital statistics. Aug 28, 2018 Page 6 of 15 The World Bank Tonga Digital Government Support Project (P154943) 14. Tonga has had a national ID system since 2010, administered by the National Identity Card Office (NICO) under the Lord Privy Seal. In accordance with the National Identity Card Act 2010, all residents of Tonga aged 14 years or older are required to have a national identity card, which is applied for at branches of the Tongan Electoral Commission. The national ID register stores basic personal information, including a national ID number, but is not linked with the CR system. Apart from a photograph, no biometrics are captured, which means that uniqueness of each record cannot be assured (and thus the national ID system cannot underpin deduplication of other systems, such as the Social Registry being developed by the Ministry of Internal Affairs and Ministry of Education and Training). Initially, the national ID cards were used only when voting in elections, but through persistent effort on the part of the NICO, the Tongan public are starting to use the cards as proof of identity for a wider range of purposes, along with driving licenses and passports. So far, only the Tongan Electoral Commission has third-party access to the national ID register to validate information. 15. To build stronger foundations for digital government and the digital economy in Tonga, the CR and national ID systems need to be linked and strengthened, particularly to enable approved public and private service providers to authenticate the identity of their customers digitally, in real time. Four areas of short- and medium-term improvement have been identified: (1) expanding the national ID system to cover Tonga’s citizens and residents at all ages with national ID numbers, while physical card issuance can remain at age 14); (2) developing an online interface for approved third parties from the public and private sector to authenticate the identity of their customers (based on the customer’s consent) against the national ID system (e.g. banks using it for their Customer Due Diligence (CDD) or Know Your Customer (KYC) processes, or the Social Registry using the national ID system to ensure that people are not enrolled more than once), which could be expanded for authentication for online transactions (e.g. to access Government portals) and electronic signatures; (3) upgrading the CR system’s software to be able to assign national ID numbers at birth registration (including interfacing with the national ID system), link birth, death and marriage records on the same person (e.g. by using the unique national ID number), to receive data on births and deaths from the health sector’s future HIS, and enabling third parties in appropriate circumstances to validate or receive information (e.g. to support national ID applications or to notify the national ID system of a deceased person so that record can be deactivated); and (4) improving data protection and privacy through reforms to relevant laws and regulations and the technical design features of the CR and national ID systems.4 In the future, linkages between the CR and national ID systems will help the ORG prevent duplicate enrollments by ensuring uniqueness through the national ID numbers of parents. 16. Other authoritative core registries/databases and single source data sets are also important for digital government but are at an earlier stage of development. A basic business registration database is in operation, managed by the Ministry of Trade and Economic Development with support from the ADB, is online and the registry is hosted by a private firm in New Zealand. 5 The Ministry of Lands is 4 A useful guiding framework for the design of CR and national ID systems is the Principles on Identification for Sustainable Development, which have been developed and endorsed by more than 24 international organizations. They are available at https://id4d.worldbank.org/principles. 5 "Tonga’s Innovative Online Business Registry Goes Live – ADB." News from Country Offices. 2 December 2014. http://www.adb.org/news/tonga-s-innovative-online-business-registry-goes-live-adb. Instructions for registering a company online are Aug 28, 2018 Page 7 of 15 The World Bank Tonga Digital Government Support Project (P154943) currently developing a new land registration and administration system, supported by the Food and Agricultural Organization (FAO). A Social Registry is being developed by the Ministry of Internal Affairs and Ministry of Education and Training, supported by the World Bank through the Skills and Employment for Tongans (SET) project, and a HIS is being developed by the Ministry of Health, with support from ADB. 17. The next step will be to develop a fully integrated back end Government digital platform to facilitate consolidation of multiple independent systems, plus a front-line Government portal to enable transactional services. The interface between core and functional registers, identity management, privacy, data management and exchange, among others, will need to be developed, in addition to the Government ICT architecture to support more widespread and systematic rollout of digital services. Such architecture would provide common enablers needed by most electronic and mobile services such as identity authentication, business authentication, digital ID integration, content management, electronic payment services, data services, notification services etc. Using such enabling tools, Government ministries could potentially save 30-40 percent of the time needed for online service implementation and could reduce their overall ICT cost by 20-30 percent, based on experiences in other countries. Government is in the process of consulting with stakeholders to identify highest priority frontline services that could be deployed in the next 1-2 years. 18. Essential legislation needs to be enacted to enable digital government and support online transactions more broadly. With the support of the recently completed Tonga-Fiji Connectivity Project (P113184)—Regulatory TA component—the Government has prepared draft legislation to support electronic transactions, privacy and data protection, and cybersecurity. An Electronic Transactions Bill has been prepared which draws upon the Model Law on Electronic Commerce and the Model Law on Electronic Signatures, developed by the United Nations Commission on International Trade Law in 1996 and 2001 respectively. Prohibitions on unauthorized access to computer systems and data are set out in the Computer Crimes Act 2003. In May 2017, Tonga acceded to the Council of Europe Convention on Cybercrime (the Budapest Convention), becoming the first Pacific Island nation to do so. A new Computer Crimes Bill has been drafted as part of the Budapest Convention accession process and is expected to be tabled in Parliament for enactment in late 2018. More work may be required to review and amend the Births, Deaths and Marriages Registration Act 1926, the National Identity Card Act 2010 and the Health Act, to incorporate the changes planned for the CR & national ID systems, and proposed changes to the health information system (HIS) which is being developed with support from the ADB. C. Proposed Development Objective(s) Development Objective(s) (From PAD) The project development objective is to improve the Government’s capacity for digital public service delivery. here: http://www.businessregistries.gov.to/how-to-use-online-services/ Aug 28, 2018 Page 8 of 15 The World Bank Tonga Digital Government Support Project (P154943) Key Results (a) Government enterprise architecture developed and operational (yes/no) (b) Number of National Government Portal Visits Per Year (Number) (c) Unique national ID numbers assigned at birth registration (Yes/No) (d) Number of public and private sector service providers using national ID system for digital identity authentication (Number) D. Project Description Component 1. Enabling Environment and Continuous Improvement 1.1 Development of a Digital (e-Government) Government Strategic Framework (DGSF). The Tonga DGSF sets directions for the Government’s use of digital technologies, with the ultimate intent of improving Government business process and workflow efficiencies, improving the quality of life for citizens and residents, while reducing the complexity for business transacting with Government. The Government has already undertaken ministry and agency consultations. The DGSF incorporates inputs from government stakeholders to ensure alignment with the Tonga Strategic Development Framework (TSDF) and agency specific strategic plans. As noted above, the DGSF is based on an, “all of Government� approach, also providing the basis for the required governance, services delivery and implementation arrangements. 1.2 Legal and regulatory framework for Digital Government including Civil Registration and national ID systems. This subcomponent will finance advisory services for modernizing the legal and regulatory frameworks institutional and governance arrangements, data security, data protection, authentication protocols and processes, privacy, transparency, non-discrimination and support for digital transactions. This subcomponent will also finance advisory services to modernize policies, laws and regulations related to Tonga’s CR and national ID systems, including to facilitate the other activities under this activity, to put in place data protection safeguards to strengthen privacy and prevent misuse of data, and to prepare Tonga’s identity ecosystem to support digital government and the digital economy. 1.3 Expansion of the Government’s Cyber Security Program. This subcomponent will finance consultancies and capacity building activities for the development of operational and administrative standards, assurance, monitoring, audit, and Cyber-Security Emergency Response (CERT) capabilities. The Cyber Security Program will also include comprehensive security training and awareness programs for all government users, government IT and security professionals, management, citizens, and the private sector. Component 2. Government Enterprise Architecture 2.1 Priority business process review This subcomponent is to design and implement digital governance and decision-making processes to ensure timely and quality data and information accessible for informed decision making and change management. This component focuses on mapping of the existing decision- making processes and workflows to determine strengths, gaps and weaknesses and to build and streamline for more efficient systems development and sustainability. 2.2 Government Enterprise Architecture. This component follows component 2.1 and will finance the development of a Government Enterprise Architecture (EA). The EA will guide Ministries and Agencies Aug 28, 2018 Page 9 of 15 The World Bank Tonga Digital Government Support Project (P154943) through the business objectives, information and data requirements, need for process and workflow mapping, and technology changes necessary to execute their information systems (consultancy, software development/purchase) strategies. Component 3. Core Registries: Civil Registration and National ID Systems 3.1 Upgrade of CR System. This subcomponent will finance technical assistance to upgrade the current CR system, including to: (a) assign unique national ID numbers to Tongan citizens and residents of Tonga through birth registrations, based on the linkages established under subcomponent 3.3; (b) link birth, death and marriage records on the same individual; (b) receive automated birth and death notifications from the health sector; (b) securely push notifications of registered births and deaths to approved third parties (e.g. to notify the national ID system of deaths); (d) enable approved third parties to securely validate information (e.g. the Social Registry validating information on beneficiaries); and (e) deduplicate CR records in the future, such as based on the information of the parents (e.g. their national ID numbers). 3.2 Upgrade of ID System. This subcomponent will finance the upgrade of the current national ID system. These include: (a) developing a software module or interface for approved third parties in the public and private sectors to digitally authenticate the identity of their customers based on information in the national ID system register, which may include biometric, biographic and/or One Time Password (OTP) yes/no verification; and, if applicable, (b) expanding coverage of the national ID system, including to citizens and residents of Tonga younger than 14 (through the issuance of a unique national ID number and not necessarily a card), possibly leveraging, where appropriate, the Social Registry enrollment exercise or the ORG’s planned birth registration catch up campaign. 3.3 Development of CR-ID linkage. This subcomponent will finance the functional and technical integration between the CR and national ID systems, including building a software solution that facilitates automated exchange of data, such as to assign unique numbers from the national ID system at the time of birth registration and for the national ID system to receive information on registered deaths and to validate information at the time of enrollment. Component 4. Digital Government Infrastructure 4.1 Design of Secure Government Network and Data Center, Disaster Recovery/Business Continuity and Government Cloud (G-Cloud). This subcomponent will finance advisory services for designing the Digital Government Infrastructure and Platform to support information systems and applications for Ministry and Agency users. Proprietary and open source options will be considered. The component will consider and evaluate alternative data center or cloud computing ownership models taking into consideration climate change impacts, disaster risks security, resource management, operational and capital cost of operations, continuity of operations, and total cost of ownership. 4.2 Design and implementation of a National Government Portal. This subcomponent will finance a single window to facilitate citizen and business access to public information, interactions and transactions with Government ministries and agencies. The Single Window will require a standard (“look and feel�) Government agency landing page template to show continuity and consistency in the implementation of information services in each agency. Aug 28, 2018 Page 10 of 15 The World Bank Tonga Digital Government Support Project (P154943) 4.3 Implementation of selected e-Services-Process automation. This subcomponent will finance the development of selected digital services, for example business registration and digital procurement based on a readiness assessment digital services, for example business registration and digital procurement based on a readiness assessment (institutional as well as technical). It will also support advisory services to implement modifications of associated business processes within the ministries and agencies. Component 5: Project Management 5.1 Project management and technical support. This component will finance technical Project management support for MOF and MEIDECC. The Project manager will assist MOF and MEIDECC with Project management and coordination, communications, monitoring, and evaluation and reporting. Other aspects of Project administration (procurement, financial management, audit) will be handled by the Central Services Unit (CSU) in MOF. In addition, this component includes provision for full project documentation, logistics, consumables, office equipment, and incremental operating costs. E. Implementation Institutional and Implementation Arrangements Overall Project oversight will be provided by the Ministerial level Sector Based Project Steering Committee established by Cabinet Decision 822/Sept 21, 2019. The Committee will meet on a quarterly basis. A Technical Working Group (TWG) will provide guidance on key Project inputs and review outputs on a regular basis. The Ministry of Finance (MOF) is the Recipient of Project funds as well as the Project Implementing Entity. It has overall responsibility for implementation of the Project and will work closely with MEIDECC on technical aspects of Components 1, 2 and 4, and coordinate with other participating ministries and agencies as required. MOF will engage a technical Project Manager under Component 5. The Ministry of Justice will provide key technical inputs for Component 3, in consultation with the NICO. General Project administration will be handled by the CSU. The CSU will provide project management functions such as Procurement, Financial Management (FM), Safeguards, Monitoring and Evaluation (M&E) and contract management. The CSU has appointed a Program Manager and will be staffed with full-time experts in procurement (one Procurement Specialist and one Procurement Officer), financial management specialist (1), monitoring and evaluation specialist (1), and safeguards specialist (1), engineer (1). The CSU will liaise closely with the Technical Project manager to be engaged under the Project. . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) Physical investments to be financed by the Project are limited to hardware required for digital government systems and platforms, e.g. servers, wiring, computers. These will be installed in existing government buildings in Nuku’alofa, the capital and main urban area of Tonga, and potentially other towns in Tonga (e.g. Aug 28, 2018 Page 11 of 15 The World Bank Tonga Digital Government Support Project (P154943) Neiafu, Pangai, Mu’a). Tonga is located in the South Pacific and stretches over a distance of about 800 kilometers from north to south. Nuku’alofa is located on the main island of Tongatapu, a flat coral island with a land area of 260 km2. The island has a population of approximately 74,000 people with 22,000 living in the capital. Government buildings are located in the center of Nuku’alofa, within 1 -3 km of the coastline. G. Environmental and Social Safeguards Specialists on the Team Felix Peter Taaffe, Environmental Specialist Rachelle Therese Marburg, Social Specialist SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) The project will not trigger any physical investments, beyond computer hardware in existing government Environmental Assessment OP/BP 4.01 No buildings. Adverse impacts are considered to be negligible. Performance Standards for Private Sector No Activities OP/BP 4.03 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/BP 4.11 No Tonga is ethnically homogenous and no communities or groups meet the four defining Indigenous Peoples OP/BP 4.10 No characteristics of Indigenous Peoples. The policy is not triggered. Involuntary Resettlement OP/BP 4.12 No Safety of Dams OP/BP 4.37 No Projects on International Waterways No OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 No Aug 28, 2018 Page 12 of 15 The World Bank Tonga Digital Government Support Project (P154943) KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The proposed Project will finance digitisation of government records and systems, as well as online platforms for existing government services. The Project will include a number of plans to facilitate digital government (component 1), a digital government platform across various government ministries (component 2), and a digital civil registration and ID system (component 3). There are no adverse environmental or social impacts associated with the Project, and it is expected to lead to a reduction of use of paper and other physical filing materials. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The Project is not associated with any negative indirect or long-term impacts. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not applicable 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Not applicable 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders are various GoT ministries that will be included in the project, as well as the systems’ users, including business, organisations and individuals across Tonga. These ministries have been consulted during the project’s preparation. Ministry and agency stakeholders will be consulted during preparation of the Digital Government Strategic Plan (Component 1), and further stakeholder identification and analysis will be included in the development of the Supporting Infrastructure, Implementation, Deployment, Disaster Recovery and Continuity of Operations Plan. As the Project will span the whole of government in Tonga, consultations will continue well into Project implementation. B. Disclosure Requirements C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OPS_ PDI_ COMP_TA BLE The World Bank Policy on Disclosure of Information Aug 28, 2018 Page 13 of 15 The World Bank Tonga Digital Government Support Project (P154943) Have relevant safeguard policies documents been sent to the World Bank for disclosure? NA Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? NA All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? NA Have costs related to safeguard policy measures been included in the project cost? NA Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? NA Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? NA CONTACT POINT World Bank Natasha Beschorner Senior ICT Policy Specialist James L. Neumann Senior Counsel Borrower/Client/Recipient Ministry of Finance Ms. Balwyn Faotusia CEO ceo@finance.gov.to Implementing Agencies Aug 28, 2018 Page 14 of 15 The World Bank Tonga Digital Government Support Project (P154943) Ministry of Finance Netatua Pelesikoti Taufatofua Director, Central Services Unit npelesikoti@finance.gov.to FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Natasha Beschorner Task Team Leader(s): James L. Neumann Approved By Safeguards Advisor: Practice Manager/Manager: Jane Treadwell 08-Mar-2019 Country Director: Mona Sur 13-Mar-2019 Aug 28, 2018 Page 15 of 15