The World Bank Implementation Status & Results Report RCIP4 - Regional Communications Infrastructure Program - APL 4 (RI) (P118213) RCIP4 - Regional Communications Infrastructure Program - APL 4 (RI) (P118213) AFRICA | Africa | Transport & Digital Development Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 12 | ARCHIVED on 14-Nov-2018 | ISR33944 | Implementing Agencies: Cellule de réformes économiques et financières (CREF) - Ministère des Finances et du Budget, Bureau RCIP-4 (4th Phase of the Regional Communications Infrastructure Program) Key Dates Key Project Dates Bank Approval Date: 10-Sep-2013 Effectiveness Date: 19-Nov-2013 Planned Mid Term Review Date: 14-Sep-2015 Actual Mid-Term Review Date: 14-Sep-2015 Original Closing Date: 30-Jun-2018 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objectives of this project, in line with the overall RCIP program, are to support the Recipient’s efforts to lower prices for international capacity and extend the geographic reach of broadband networks. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Enabling Environment: promote further regional market integration, sector liberalization (through the award of a second license), an d legal and regulatory reforms.:(Cost $4.00 M) Connectivity: finance Comoros’s membership and participation in the FLY cable and provide demand stimulation through advance purchas e of capacity, promotion of ISPs and establishing an IXP.:(Cost $25.00 M) Project management: support to finance project management costs including project coordination, procurement, financial management, m onitoring & evaluation, etc.:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions DISBURSEMENT: The project is on track to meeting the PDO. The disbursement of the original financing envelope was 95% (as of September 27, 2018). On September 28, 2018 US$10m in additional financing (AF) was approved by the Board. The team is now preparing a new round of procurement, which will speed up disbursement, following a lull in project activities pending AF approval. 11/14/2018 Page 1 of 8 The World Bank Implementation Status & Results Report RCIP4 - Regional Communications Infrastructure Program - APL 4 (RI) (P118213) ADDITONAL FINANCING: New funding will: (i) replenish the budget for regulatory activities and project management under Components 1 and 3 as well as (ii) scale up the successful demand stimulation program, launching a second phase that targets central government ministries, department and agencies (MDAs) and introduces new foundational e-government activities under sub-components 2.2 and 2.3. PROJECT STATUS: Component 1: Enabling environment The project has a solid track record of facilitating market and policy reform, successfully supporting the progressive liberalization of the local telecom market and unlocking sector development. With the introduction of competition, mobile usage has more than doubled. Notable successes include:  the passage of the 2014 Communications Act;  the licensing of a second operator in 2015 (Telma Comores);  the launch of a new authorization regime for Internet Service Providers (ISP) with at least one additional ISP due to be authorized imminently. A market observatory has been launched that will crowd-source consumer data on market performance and serve as an effective tool for citizen engagement and feedback. Nevertheless, several unresolved market and regulatory issues continue to hamper market performance and the optimization of existing infrastructure and international bandwidth (see list below), which remain key project priorities. Component 2.1: Membership and participation in the FLY-LION 3 cable consortium The project has financed the Government’s share in the new regional submarine fiber optic cable (FLY-LION3). A payment was made to the FLY-LION consortium, on behalf of the Government, in July 2017 - after all key disbursement conditions for the release of related funds had been met. Construction of the FLY-LION3 cable is due to be completed in January 2019. The project has also been supporting the expansion of the FLY-LION consortium, permitting the extension of the cable from Mayotte to Madagascar. However, Comores Cables continues to resist opening up the cable to new investors. Milestones to date include:  the preparation of all required environmental and social safeguards studies, in compliance with Bank policy, for both the new cable as well as the construction of a new FLY-LION3 landing station in Moroni;  the successful relocation of squatters, in accordance with the Bank’s resettlement policy, from the new landing station’s construction site,  the start of construction of the new landing station (also due to be completed in January 2019). The terrestrial cable segment between the beach and landing station is due to be completed between November-December 2018. Component 2.2: Demand stimulation program Phase 1: Several thousand computers, other IT equipment and internet connectivity has been provided to beneficiaries, including schools, university campuses, civil society organizations and local government organizations ("mairies"), based on an indefeasible right of use (IRU) arrangement, to create a sustainable and growing customer base. Training has also been provided to the administrators of these local IT labs and Community Information Centers (CICs), with the support of the Technical University and Peace Corps. To date, the program has, for example, helped to increase access to ICT in schools by over 10%, nationwide, according to a recent survey undertaken by the Regulator that was supported by the project. Phase 2: The IT equipment and connectivity need among central government MDAs are currently being assessed to support the launch of a second phase of the demand stimulation program. Technical assistance and preparatory studies are also due to be commissioned to support the launch of foundational e-government platforms and infrastructure, along with a selection of strategic e-government applications such as an e-Visa scheme, as well as a central e-government agency. Foundational cybersecurity regulation and protection/response schemes will also be supported. Component 2.3: Additional measures to stimulate demand for ICT services, as well as private ICT sector development A first tranche of funding has been released to support the launch of a new co-working space, which will provide training and support local tech start-ups. Component 3: Project Management Current institutional arrangements are generally working well. The steering committee for the project will be enlarged to include new representatives from the Secretary General of Government’s Office as well as the Ministry of Interior to support the launch of new activities pertaining to e-government. A new PIU e-government focal point will also be recruited to support the coordination and implementation of new activities in this domain. OUTSTANDING ISSUES:  Achieving full interconnectivity amongst operators, including the introduction of guidelines for infrastructure-sharing and the transparent publishing of pricing.  Restructuring Comores Telecoms (CT): the incumbent has lost market share and is operating with unsustainable levels of both staff and debt.  Establishing efficient and equitable licensing fees in relation to spectrum. Lack of clarity currently deters potential investors.  Supporting the authorization of additional ISPs and closed-user group networks, as well as stimulating the creation of new ISPs.  Encouraging the restructuring of Comores Cables – the SPV created to commercialize connectivity from the new FLY-LION 3 cable. Project effectiveness was declared on 19 November 2013 and the mid-term review was completed on 7 October 2016. The project closing date has been extended to June 30 2021 under the AF. The project currently complies with all legal covenants, and the disbursement condition for the additional financing is expected to be met shortly. Risks Systematic Operations Risk-rating Tool 11/14/2018 Page 2 of 8 The World Bank Implementation Status & Results Report RCIP4 - Regional Communications Infrastructure Program - APL 4 (RI) (P118213) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Substantial Substantial Stakeholders -- Substantial Substantial Other -- Substantial Substantial Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Support the recipient's effort to lower prices for international connectivity IN00641286 ►International Internet Bandwidth (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 175 Mbit/s 10885 Mbit/s 10885 Mbit/s 3611 Mbit/s Date 31-Dec-2011 28-Dec-2017 28-Dec-2017 28-Dec-2017 Comments: Measured in Mbit/s simplex IN00641298 International Internet Bandwidth per inhabitant (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 232 bit/s 13.7 kbit/s 13.7 kbit/s 4.13 kbit/s IN00641290 ►Average price of wholesale internet capacity (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5,500.00 18.70 18.70 1,000.00 Date 29-Jun-2012 28-Dec-2017 28-Dec-2017 31-Dec-2017 Comments: Average monthly price of wholesale internet capacity (E1 or 2 Mbit/s link) from the capital city to Europe Support the recipient'e efforts to extend the reach of broadband networks IN00641287 11/14/2018 Page 3 of 8 The World Bank Implementation Status & Results Report RCIP4 - Regional Communications Infrastructure Program - APL 4 (RI) (P118213) ►Access to Internet Services (number of subscribers per 100 people) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.70 31.81 81.39 37.70 Date 31-Dec-2011 31-Oct-2017 31-Oct-2018 30-Jun-2021 Based on total internet subscription figure, divided by latest population figure. However, given that the population in likely to be larger than current figures suggests (in the absence of Comments: an updated census), and many people hold more than one sim-card, due to the absence of interoperability, this figure is likely to be somewhat inflated. IN00641297 Total number of Internet subscriptions (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 5,416.00 253,200.00 360,980.00 300,000.00 IN00641299 Mobile internet subscriptions (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 250,000.00 359,336.00 295,000.00 IN00641301 Population (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 735,375.00 796,000.00 813,912.00 800,000.00 IN00641291 ►Total number of mobile subscriptions (per 100 inhabitants) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 27.39 68.22 81.00 72.75 Date 31-Dec-2011 31-Oct-2017 31-Oct-2018 30-Jun-2021 The indicators reflects quarterly subscriptions figures divided by latest population data. Comments: IN00641306 Mobile subscriptions (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 216,438.00 530,000.00 659,336.00 582,000.00 IN00641295 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 313,562.00 442,898.00 365,562.00 Date 31-Dec-2012 31-Oct-2017 31-Oct-2018 30-Jun-2021 Comments: Direct beneficiaries are people or groups who directly derive benefits from an intervention. New mobile subscribers, since the project's inception, is used as a proxy for direct beneficiaries. This assumes that lower prices and quality improvement, stemming from changes to the regulatory environment and the introduction of competition that have been facilitated by the project have driven a rise in users. 11/14/2018 Page 4 of 8 The World Bank Implementation Status & Results Report RCIP4 - Regional Communications Infrastructure Program - APL 4 (RI) (P118213) IN00641307 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 50.00 Overall Comments PDO Both objectives, including original targets set in 2013, were achieved using the original financial envelope. The second objective remains pertinent to the additional financing package, which now features increased targets set for 2021. The fixed-line internet subscription and fixed mainline indicators have both been deleted from the ISR. These deletions were approved as part of additional financing package. These deletions were not reflected in the final Datasheet of the AF, due to portal issues, but featured in the narrative. Intermediate Results Indicators by Components 1. Enabling environment IN00641288 ►Number of licensed ISPs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 3.00 3.00 4.00 Date 31-Dec-2011 31-Oct-2017 31-Oct-2017 31-Dec-2017 Comments: Number of Internet Service Providers licensed to offer services in Comoros 2. Connectivity and demand stimulation IN00641289 ►Broadband Internet Subscriptions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 150.00 253,200.00 360,980.00 300,000.00 Date 31-Dec-2011 31-Oct-2017 31-Oct-2018 30-Jun-2021 Internet subscriptions in excess of 256 kbit/s Comments: This figures captures current mobile internet, plus fixed-broadband subscribers. IN00641300 Mobile broadband subscribers (Number, Custom Breakdown) 11/14/2018 Page 5 of 8 The World Bank Implementation Status & Results Report RCIP4 - Regional Communications Infrastructure Program - APL 4 (RI) (P118213) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 250,000.00 359,336.00 49,500.00 Date 31-Dec-2011 31-Oct-2017 31-Oct-2018 31-Dec-2017 IN00641302 Fixed and mobile broadband subscriptions per 100 inhabitants (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.02 31.81 46.12 37.70 IN00641304 Broadband subscribers as a percentage of total ICT subscriptions (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.04 45.60 55.20 50.00 IN00641292 ►Number of E-Systems connected to an interoperable Government-administered digital platform (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 02-Jul-2018 02-Jul-2018 31-Oct-2018 30-Jun-2021 This is a new indicator, which measures the number of e-Government systems that are connected to a Comments: public and interoperable platform. Candidates include e-Visa, eProcurement, Business registration etc IN00641293 ►Number of female beneficiaries of the co-working space (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 02-Jul-2018 02-Jul-2018 31-Oct-2018 30-Jun-2021 This is a new custom indicator, which is intended to measure the number of users of the proposed co- working space who are female. To calculate the percentage of users who are female, it will also be Comments: necessary to collect the total number of users of the space. IN00641294 ►Number of crowdsourced reports from citizens on quality of service for telecommunication services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 1.00 4.00 Date 28-Jun-2018 -- 25-Oct-2018 30-Jun-2020 This is a report on the quality of telecommunication services, which is compiled from crowdsourced reports from citizens. It thus also serves as an indicators of citizen engagement. Comments: It is intended to be reported twice yearly and should show trends over time and between regions. Overall Comments IR 11/14/2018 Page 6 of 8 The World Bank Implementation Status & Results Report RCIP4 - Regional Communications Infrastructure Program - APL 4 (RI) (P118213) The team is expecting a 4th ISP to be licensed shortly. The first crowdsources report from citizens on the quality of services is also due at the end of this month. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P166737 IDA-D3820 USD 10.00 10.00 0.00 0.00 10.05 0% Effective P118213 IDA-H8780 Effective USD 22.00 22.00 0.00 19.34 0.83 96% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P166737 IDA-D3820 28-Sep-2018 -- -- 30-Jun-2021 30-Jun-2021 Effective P118213 IDA-H8780 Effective 10-Sep-2013 24-Sep-2013 19-Nov-2013 30-Jun-2018 31-Dec-2019 Cumulative Disbursements 11/14/2018 Page 7 of 8 The World Bank Implementation Status & Results Report RCIP4 - Regional Communications Infrastructure Program - APL 4 (RI) (P118213) Restructuring History Level 2 Approved on 28-Feb-2018 Related Project(s) P166737-Additional Financing for the Comoros program of the 4th Phase of the Regional Communications Infrastructure Program 11/14/2018 Page 8 of 8