The World Bank Implementation Status & Results Report Palau: ICT Sector Technical Assistance (P160504) Palau: ICT Sector Technical Assistance (P160504) EAST ASIA AND PACIFIC | Palau | Digital Development Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2018 | Seq No: 2 | ARCHIVED on 19-Dec-2019 | ISR40087 | Implementing Agencies: Ministry of Finance, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 10-Apr-2018 Effectiveness Date: 01-May-2018 Original Closing Date: 30-Apr-2022 Revised Closing Date: 30-Apr-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The activity's development objective is to support the Recipient on its ongoing reforms to help create the conditions necessary to increase competition in the ICT sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Implementation Status and Key Decisions The telecom sector continues to show strong growth in Palau, largely driven by the benefits of the investments in the submarine cable system, the rollout of 4G/LTE services by PNCC and the upgrades of fixed broadband (ADSL/VDSL) to higher speeds. There is also evidence of competition in the fixed broadband market, especially for high value users, which is stimulating discounts and service upgrades for fixed broadband. Since the last support mission in May 2019, the amount of capacity sold on the BSCC cable system has increase from 4 Gbps to over 6 Gbps. The biggest limitation flattening growth over the past quarter has been service providers reaching local network capacity limits. Overall over the past 12 months traffic on the cable system has more than doubled. In the two years since the cable first entered into service traffic has increased by a factor of ten. Work to identify, evaluate and implement further regulatory and market reforms has commenced. Draft Terms of Reference for the market studies work are under preparation. The market studies report will require the recruitment of a specialist advisory firm(s) and is a key deliverable under the Project. It will focus on options to maximize the long-term benefits of competition and new private sector investment in the ICT sector, including recommendations for reorganizing the debts, assets, obligations and investment priorities of PNCC and BSCC; market architecture, including interconnection, access rules, operator licensing, numbering, spectrum and other priority regulations; and institutional strengthening for Bureau of Communications (BOC) to discharge its regulatory role effectively, and build awareness, understanding and compliance with the new regulatory regime. Government intends to complete the procurement and get this work underway during the first half of 2020. Close engagement with PNCC and BSCC will be important to build support for this work and ensure the advisers have access to all necessary information. Risks 12/19/2019 Page 1 of 4 The World Bank Implementation Status & Results Report Palau: ICT Sector Technical Assistance (P160504) Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall Moderate Moderate Moderate 5. Results Project Development Objective Indicators IN00788401 ►Strengthened policymaking for ICT sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 01-Dec-2017 01-Feb-2019 01-Feb-2019 30-Jun-2021 IN00788402 ►Strengthened regulatory capacity for ICT sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 01-Dec-2017 01-Feb-2019 01-Feb-2019 30-Jun-2021 IN00788407 ►Impact on telecom sector of World Bank Technical Assistance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 01-Dec-2017 01-Feb-2019 01-Feb-2019 30-Jun-2021 Intermediate Results Indicators IN00788403 ►Options report for reorganizing PNCC and BSCC delivered (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Dec-2017 01-Feb-2019 01-Feb-2019 30-Jun-2021 12/19/2019 Page 2 of 4 The World Bank Implementation Status & Results Report Palau: ICT Sector Technical Assistance (P160504) IN00788404 ►ICT infrastructure needs analyzed and an investment plan prepared (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Dec-2017 01-Feb-2019 01-Feb-2019 30-Jun-2021 IN00788405 ►Report on options for improving regulatory outcomes delivered (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Dec-2017 01-Feb-2019 01-Feb-2019 30-Jun-2021 IN00788406 ►Interim GM recruited internationally to lead PNCC (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Dec-2017 01-Feb-2019 01-Feb-2019 30-Jun-2021 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P160504 TF-A7208 Effective USD 0.60 0.60 0.00 0.04 0.56 6% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P160504 TF-A7208 Effective 10-Apr-2018 01-May-2018 01-May-2018 30-Apr-2022 30-Apr-2022 Cumulative Disbursements 12/19/2019 Page 3 of 4 The World Bank Implementation Status & Results Report Palau: ICT Sector Technical Assistance (P160504) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/19/2019 Page 4 of 4