Public Disclosure Copy The World Bank Implementation Status & Results Report ICT Sector Support in Somalia (P148588) ICT Sector Support in Somalia (P148588) AFRICA | Somalia | Transport & ICT Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2014 | Seq No: 1 | ARCHIVED on 26-Jan-2016 | ISR18550 | Implementing Agencies: MPT PIU Key Dates Key Project Dates Bank Approval Date:24-Apr-2014 Effectiveness Date:30-May-2014 Original Closing Date:31-Mar-2016 Revised Closing Date:31-Mar-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is “Create an enabling and trusted policy and regulatory environment to develop Somalia’s telecommunications infrastructure as a foundation for economic recovery and growth”. The outcomes are aligned with the a number of objectives with the Peace and State-building Trust Fund, including: 1.2 Partnerships are strengthened 1.4 Timely support provided for early confidence building 1.5 SPF programs are catalytic with the potential to be scaled up and/or replicated to ensure sustained support for institution building 1.6 Contributes to knowledge and learning that improves WB operations in FCS 2.1 More effective, transparent and accountable collection, management and use of public resources that builds citizen confidence Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  --  Satisfactory Overall Implementation Progress (IP)  --  Satisfactory Implementation Status and Key Decisions Note: Includes Component 1 (Bank-executed on behalf of the client) as well as Component 2 (Recipient-Executed) Component Key deliverables Progress and comments (as of 11 January 2015) 1/26/2016 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report ICT Sector Support in Somalia (P148588) 1.1 Facilitating 1. Facilitating Stakeholder consultations on Initial consultations held in all three locations. implementation of the 2014 the 2014 Communications Act, to be Communications Law has been approved by Cabinet and is Communications Law organized in Mogadishu, Garowe and now awaiting approval by Parliament. It was scheduled to be Nairobi; discussed before Parliament on October 15th. However, the political instability and subsequent no-confidence vote in the 2. Advising the government on Prime Minister, on 5 December, means that the Act will now implementation of the law. be delayed, but Parliament undertook a first reading of the Bill on 15 December and a second reading in July 2015. The final reading is due in January 2016 1.2 Capacity-Building and 3. Support for an effective ICT regulatory Board members of the SCC have been nominated. The support for an effective ICT agency through harmonizing spectrum President was waiting for the Law to be passed before regulatory agency allocations and numbering plans, providing publishing the list. However, it is now delayed until after the technical assistance, etc. passage of the Law 4. Supporting South-South Knowledge All procurement for this component has been completed, Exchange to improve the capacity of the including recruitment of firm to assist with regulatory future staff of the regulator framework (Albany). 5. Undertake capacity-building and technical assistance, with a focus on learning from Joint ITU/World Bank workshop on the regulatory framework Somalia’s neighbours. conducted on 22-23 September, in Nairobi with more than 50 6. Providing technical assistance for people including all the operators and chaired by the Minister establishing a data collection unit to of Posts and Telecommunications, ITU Representative and acquire data from operators, including on the Country Director. international traffic flows and revenues. 7. Assisting the data collection unit to conduct First report on data collection has been submitted by the surveys of users to better understand the consultant and was presented at the data collection level of ICT usage in the country. workshop, on 28 January 2015, in Nairobi with representatives from Federal Government and newly formed 8. Developing a website for the Ministry and states. the Somalia Communications Commission and establishing a baseline of telecommunication and ICT data. 1.3 Support for 9. Supporting capacity development and All procurement for this component has been completed, implementing an ICT providing technical assistance that will including recruitment of firm to assist with regulatory licensing framework allow the government understand and framework (Albany). explore license agreements for mobile operators, with interconnection obligations, Private operators reached agreement on an interconnection and class licences for internet service arrangement as of June 2014, and this is now being providers (ISPs). implemented. 10. Advising the government in establishing a Joint ITU/World Bank workshop on the regulatory framework fee structure, including by providing undertaken on 22-23 September, in Nairobi, including special benchmark license and spectrum fees from session on licensing other countries in the region. 11. Facilitating consultations with operators Work on licensing currently delayed by absence of the law, and other private sector players on the but expected to recommence once Law has been passed. draft licenses. 1.4 Capacity-building and 12. Conducting a needs assessment in the ICT Needs assessment completed and discussed at an AfDB donor coordination Ministry and future regulator, in validation workshop in Nairobi, May 2014. AfDB conducted cooperation with the African Development an assessment mission in Dec 2015 and have continued to Bank, to assess training requirements and coordinate their work with the WBG team. propose a training plan; Initial contacts established with regulatory organisations and 13. On the basis of the needs assessment, 1/26/2016 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report ICT Sector Support in Somalia (P148588) offering a program of capacity building for regional bodies in East Africa to organize a training program. policy-makers and regulators, both within Ministry team participated in ITU-PP 2014, in Busan. the country and through targeted external training; Workshop in December 2014, focussing on training for future 14. Assisting the Ministry in donor coordination regulatory body, was postponed due to political situation. among those donors interested in support Workshop for Parliamentarians held in June 2015. to the ICT sector in Somalia. In this Procurement and FM training workshop to be held in Addis, context, it is proposed to establish a in Jan 2016 regular meeting of donors and development partners for information To date, five meetings of the roundtable of ICT development sharing on ICT activities, similar to the partners have been held in Nairobi with participation of Somalia Media Strategy Group (SMSG). USAid and Swedish Aid (chairs of PSG-4). 1.5: Cost-benefit analysis of 15. In cooperation with the MPT and the Recruitment of two consultants for this sub-component the contribution of telecoms Ministry of Finance, develop a study that completed. to public finance will lay out various revenue generation scenarios on the potential level of Final reports were submitted after the validation workshop contribution to the public treasury from the and have been delivered to the Ministry for comments. ICT sector, taking into account license fees, spectrum usage, excise tax, sales tax Workshop on financial contribution took place on January 22- on calls and subscriptions etc. 23, 2015, in Nairobi with more than 35 participants including representatives from the Federal Government, Somaliland, Puntland, and the new States such as Interim Jubbaland 16. Developing a report on the benefits that Administration and Southwest and chaired by the WB country would accrue to operators from a more representative. Representatives from MoF and PFM also stable regulatory environment, such as attended and presented the fiscal strategy and revenue mobile roaming agreements, foreign generation scheme. investment, protection from spectrum interference etc. Operators reached an informal agreement with the Ministry of Finance to submit around US$400k per month in financial contribution, until payments are regularised following passage of the Law. The total contribution in FY2014 reached $4.8m according to the Public Treasury. 2.1: Open access to 17. Setting up a special purpose vehicle (SPV) Existing contract to manage .soNIC, held by GMO (Japan) international bandwidth or operator consortium to manage has been revised. It is planned to repatriate this function in bandwidth on an open access basis, two phases, initially bringing it to UAE and later to including establishing an Internet Mogadishu. However, the procurement process for this did Exchange Point (IXP). not provide a viable outcome, and will need to be revisited. 18. Bringing back to Somalia the management The EASSy cable reached landfall in Mogadishu in of the .so country code top-level domain November 2013 and is now operational. Capacity has been (currently managed from Japan) by upgraded on the cable. Another 2 cables are operational: creating a .so Network Information Centre fiber reached Somali-Kenyan border and Somaliland from (.soNIC). Djibouti. 19. Exploring additional connectivity options. A proposal of a feasibility study for establishing a PPP for ICT infrastructure, and a network master plan, submitted to PPIAF, has been accepted for funding for US$338k. 2.2: Installing 20. Developing a standard offer for Selection process completed for international bandwidth and communication rooms in communications rooms in ministries. A distribution network in mid 2015, and for Communications key ministries and basic configuration of these communication Rooms in November 2015. development partners rooms could be designed, for instance, to include a speaker phone, a video camera, Three Ministries selected for initial pilot: MPT, Higher a large screen, a mail server and Education and Finance. appropriate software such as Skype, 1/26/2016 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report ICT Sector Support in Somalia (P148588) Google Hangout, Adobe Connect etc. Other key ministries have been identified and discussions are 21. Selecting a small number of key ministries under way to conclude agreements for internet connectivity. and offices and assisting them in the installation and operation of Some 8km of the fibre local loop around Ministries in communication facilities. Mogadishu has been completed. The remaining 32km will be financed under Phase 2. 2.3: Establishing a Project The Bank team will work closely with the Project manager appointed along with Deputy project Management Unit government in establishing a small project manage and accountant and procurement expert management team to implement component 2 and to prepare phase 2 of the program, in particular Designated account created at Central Bank of Somalia. providing assistance with Bank procedures for procurement and financial management Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  Substantial  --  Substantial Results Project Development Objective Indicators 1/26/2016 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report ICT Sector Support in Somalia (P148588) PHINDPDOTBL Establishing an effective ICT regulatory authority (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 31-Dec-2012 -- 17-Mar-2015 31-Mar-2016 Comments Creation of National Communications Commission delayed because awaiting Communications law to be passed PHINDPDOTBL Access to Internet Services (number of subscribers per 100 people) (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.30 -- 2.98 2.00 Date 31-Dec-2012 -- 30-Sep-2015 31-Dec-2016 Comments Number of subscribers has increased since arrival of undersea cable. Data source = GSMA Intelligence PHINDPDOTBL Access to Internet Services (number of subscribers per 100 people) (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 23.00 -- 89.00 30.00 Date 31-Dec-2012 -- 30-Sep-2015 31-Dec-2015 Comments Only mobile subscriptions per 100 as fixed line subscriptions are non-existent. Data source = GSMA Intelligence PHINDPDOTBL Retail Price of Internet Services (per Mbit/s per Month, in US$) (Amount(USD), Core) Baseline Actual (Previous) Actual (Current) End Target Value 1400.00 -- 100.00 500.00 1/26/2016 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report ICT Sector Support in Somalia (P148588) Date 31-Dec-2012 -- 30-Sep-2015 31-Dec-2015 Comments Price of bandwidth has fallen substantially since arrival of fibre optic cable in Mogadishu, and target already exceeded. Price is based on Hormuud package 2 for DSL, with a 70 GB price cap, source TeleGeography. Overall Comments Intermediate Results Indicators PHINDIRITBL Price per GB of mobile data (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1000.00 -- 25.00 250.00 Date 31-Dec-2012 -- 30-Jun-2015 31-Mar-2016 Comments Mobile broadband is still banned in Mogadishu, following threats from Al-Shabaab. Data collected for WDR2016. PHINDIRITBL Number of project beneficiaries female (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 850000.00 770000.00 Date 31-Dec-2012 -- 30-Sep-2015 31-Dec-2016 Comments Target exceeded. Target based on number on 50% of the incremental number of new subscriptions since baseline Overall Comments Data on Financial Performance Disbursements (by loan) 1/26/2016 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report ICT Sector Support in Somalia (P148588) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P148588 TF-17371 Effective USD 0.80 0.80 0.00 0.73 0.07 92% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P148588 TF-17371 Effective 30-May-2014 30-May-2014 30-May-2014 31-Mar-2016 31-Mar-2016 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 1/26/2016 Page 7 of 7 Public Disclosure Copy