The World Bank Implementation Status & Results Report ICT Sector Support in Somalia Phase II (P152358) ICT Sector Support in Somalia Phase II (P152358) AFRICA | Somalia | Digital Development Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 7 | ARCHIVED on 13-May-2019 | ISR36617 | Implementing Agencies: Ministry of Posts, Telecoms and Technology, Ministry of Finance, Ministry of Posts, Telecommunications and Technology, Federal Government of Somalia Key Dates Key Project Dates Bank Approval Date: 08-Jun-2015 Effectiveness Date: 15-Jun-2015 Planned Mid Term Review Date: 15-Mar-2017 Actual Mid-Term Review Date: 24-Feb-2017 Original Closing Date: 30-Sep-2019 Revised Closing Date: 30-Sep-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The overarching Project Development Objective (PDO) for this series of projects is “to support the ICT Sector in Somalia by contributing to establishing an enabling environment and by encouraging efficiency and equity in access to connectivity”. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name 1. Enabling environment:(Cost $4.50 M) 2. Efficiency and equity in access to connectivity:(Cost $7.80 M) 3. Support the Project Implementation Unit:(Cost $1.70 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating High Substantial Implementation Status and Key Decisions Since the latest ISR, approved in November 2018, some further progress has been made in respect to Component 1, supporting an enabling environment. In particular, the independent regulatory agency (NCA) is now functioning well as sector regulator and has held five Board meetings to date. The establishment of the NCA is seen as instrumental in implementing the Communications Act, formalizing the sector by issuing operator licenses, and helping to generate government revenue. The speedy establishment of an independent, strong and effective regulatory body has been a strategic priority by the highest level of government, setting an important precedent for regulatory governance in Somalia. Other important steps include: a) the formalization of payments by operators to the National Treasury, as of 1 January 2019; 5/13/2019 Page 1 of 6 The World Bank Implementation Status & Results Report ICT Sector Support in Somalia Phase II (P152358) b) the posting of draft regulations on the NCA website as a means of promoting transparency, including the new numbering regulation and the national frequency allocation table (NFAT); c) holding a full-scale consultation meeting with stakeholders in the week of 1 May, including representatives from the NCA, MPTT, federal member states and private operators, with interconnection and licensing high on the agenda; d) Development of a national ICT strategic plan, with support from the ITU and WBG, which is now open to a public consultation; e) the operationalization of the internet exchange point (IXP) located at the landing station within Mogadishu International Airport. f) Provision of training, notably a joint program of regulatory training organized by WBG, ITU and USTTI, held in Nairobi, 27-29 March 2019, and participation in the WSIS Forum in Geneva, April 2019. To support the establishment and the technical capabilities of the NCA, an Implementation Task Team (ITT) has been recruited on a competitive basis and the Minister and General Manager of the NCA are happy with the work of the ITT so far. The staffing of the ITT was recently refreshed with three new consultants added to replace those who had left. Support to the SomaliREN (Research and Education Network) is continuing, and an upgrade in network capacity from and STM-1 to an STM 4 (655 Mbit/s) is planned For mobile money, a thematic extension of the first wave of research has been commissioned and drafts have been delivered and are currently being reviewed. This research focusses on usage of mobile money among vulnerable groups. Delays were incurred due to delays in obtaining support letters from MPTT, required to ensure field teams' safety. The letters were finally obtained in September 2018. As for the mobile money pilot program, the first wave of payments to civil servants has been completed, and the second phase, with humanitarian payments, will proceed shortly, engaging with the NGO Concern. A follow-on lending program -- SCALED-UP (Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Program) was approved by the Board in March 2019 and the financing agreement was signed in April 2019. Assuming it becomes effective, as planned, within four months of signature, there should be no break between the expected conclusion of this ICT sector support program and the new funding. Some activities currently supported, notably on regulatory support and mobile money, will continue under SCALED-UP, but there is no provision for continuing support for Government connectivity, or SomaliREN. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability High High Substantial Fiduciary High High Substantial Environment and Social Moderate Low Low Stakeholders High High Substantial Other High High High Overall High High Substantial Results PDO Indicators by Objectives / Outcomes 5/13/2019 Page 2 of 6 The World Bank Implementation Status & Results Report ICT Sector Support in Somalia Phase II (P152358) to support the ICT Sector in Somalia by contributing to establishing an enabling environment IN00689835 ►Establishing an ICT licensing and taxation framework (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2014 17-Apr-2018 17-Apr-2018 31-Dec-2018 The creation and operationalisation of the NCA is a major step towards achieving this outcome Comments: IN00689867 ►Increased contribution of ICT Sector to public treasury (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,200,000.00 19,850,000.00 22,000,000.00 12,000,000.00 Date 31-Dec-2014 31-Aug-2018 31-Mar-2019 31-Dec-2018 The indicator measures cumulative contribution, rather than simply the annual level of contribution. Based on recorded end-of-month figures for taxes on telecoms goods and services, noted as part of the FGS Comments: monthly revenue file. Updated figured cover also Q1 2019. to support the ICT Sector in Somalia by encouraging efficiency and equity in access to connectivity IN00689866 ►International internet bandwidth per inhabitant (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 85.00 3,496.00 7,083.00 850.00 Date 31-Dec-2014 31-Dec-2017 31-Dec-2018 31-Dec-2018 Source: Telegeography. Calculated as the total used international internet bandwidth for the country, divided by the population and expressed as bits/s per person. The end-2018 figure is based on Comments: TeleGeography estimates of 85 Gbit/s capacity divided by around 12 million inhabitants giving a total of 7'083 kbit/s per inhabitant. Intermediate Results Indicators by Components 1. Enabling environment IN00689868 ►Establishment of independent federal ICT regulatory agency (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2014 17-Apr-2018 17-Apr-2018 31-Dec-2018 Following the passage of the Communication Act, in October 2017, the NCA now legally exists, according Comments: to regulatory experts. The task team is currently supporting the NCA through tailored technical assistance 5/13/2019 Page 3 of 6 The World Bank Implementation Status & Results Report ICT Sector Support in Somalia Phase II (P152358) that support institution- and capacity building. However, for the NCA to become effective Board Members need to be appointed - at a minimum, enough appointment for there to be quorum for decision-making. IN00689871 ►Mobile licenses issued (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 31-Dec-2014 17-Apr-2018 17-Apr-2018 31-Dec-2018 Although there are at least seven active mobile operators in the country, and many of them claim to have licenses from previous or local regimes, none yet has a license issued by the new NCA or current Comments: government. NCA is finalizing a schedule of license fees for public consultation. IN00689873 ►Number of ISPs authorized (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 31-Dec-2014 17-Apr-2018 17-Apr-2018 31-Dec-2018 This will also be a key task of the NCA, to formalize the license or authorisations issued to ISPs. Comments: 2. Efficiency and equity in access to connectivity IN00689869 ►International Internet Bandwidth (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2 Gbit/s -- 85 Gbit/s 10 Gbit/s Date 31-Dec-2014 16-Oct-2017 16-Oct-2017 29-Dec-2018 The supply of international international bandwidth is likely to have increased following the arrival of the Gulf to Africa (G2A) international cable from Oman to Boassasso, and the provision of additional capacity Comments: on the EASSy cable into Mogadishu IN00689872 ►Number of communications rooms established by project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 17.00 37.00 15.00 Date 31-Dec-2014 17-Apr-2018 06-May-2019 31-Dec-2018 This indicator measures the number of Communications Rooms established in Mogadishu and the Federal Member States, including Hirshabelle. All have now been completed and procurement carried out Comments: both for equipment and bandwidth. IN00689874 ►Universities provided with improved bandwidth (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 5/13/2019 Page 4 of 6 The World Bank Implementation Status & Results Report ICT Sector Support in Somalia Phase II (P152358) Value 0.00 7.00 14.00 15.00 Date 31-Dec-2014 17-Apr-2018 06-May-2019 31-Dec-2018 The SomaliREN link went live in June 2018 and current some 14 universities or colleges are connected, Comments: mainly in the Benadir region. IN00689875 ►SIM card registration (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100,000.00 Date 31-Dec-2014 30-Sep-2018 30-Sep-2018 31-Dec-2018 The commissioned thematic extension of the mobile money research, which features another household survey, will collect baseline data on this. This will also be a key undertaking of the NCA as SIM card Comments: registration is now mandated by law. 3. Support the Project Implementation Unit IN00689870 ►Number of people trained via the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 280.00 530.00 80.00 Date 31-Dec-2014 17-Apr-2018 06-May-2019 31-Dec-2018 80 people have been trained via the project, since mid-October 2017.  A further 50 people have been trained through the SomaliREN, both via campus workshops and online courses on network design, implementation and maintenance, between Oct-Dec 2017.  A workshop on national numbering was hosted by the Bank on 8 November 2017, which featured presentations by the ITU and technical experts, which was attended by 15+ people.  On-the-ground training in spectrum measurement has also been held by Wrap, targeting 15 people. Comments:  Training also provided by ITU and AFRALTI  A joint USTTI / WBG / ITU training program was held in Nairobi in March 2019  Training for some 250+ beneficiaries of the mobile money payments was provided in Mogadishu in April 2019 Training to support use and maintenance of the new communcation rooms was also provided following official commissioning Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P152358 TF-A0175 Effective USD 7.00 7.00 0.00 6.96 0.04 99% 5/13/2019 Page 5 of 6 The World Bank Implementation Status & Results Report ICT Sector Support in Somalia Phase II (P152358) P152358 TF-A7699 Effective USD 2.50 2.50 0.00 1.19 1.31 47% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152358 TF-A0175 Effective 15-Jun-2015 15-Jun-2015 15-Jun-2015 31-Mar-2018 30-Sep-2019 P152358 TF-A7699 Effective 13-Jun-2018 13-Jun-2018 13-Jun-2018 30-Sep-2019 30-Sep-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 19-Oct-2016 ,Level 2 Approved on 13-Jun-2017 ,Level 2 Approved on 24-Apr-2019 Related Project(s) P164441-Additional Financing: ICT Sector Support in Somalia (Phase 2) 5/13/2019 Page 6 of 6