The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) KI: Telecommunications and ICT Development Project (P126324) EAST ASIA AND PACIFIC | Kiribati | Digital Development Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 12 | ARCHIVED on 24-Apr-2019 | ISR36565 | Implementing Agencies: Republic of Kiribati, Communications Commission of Kiribati, Ministry of Communication, Transport, & Tourism Development Key Dates Key Project Dates Bank Approval Date: 26-Jul-2012 Effectiveness Date: 13-Mar-2012 Planned Mid Term Review Date: 30-Nov-2019 Actual Mid-Term Review Date: -- Original Closing Date: 30-Jun-2017 Revised Closing Date: 30-Jun-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed Project development objective is: to strengthen the legal, regulatory and institutional environment, enabling transition to a market- driven telecommunications sector and facilitating improved connectivity for the Outer Islands. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name ICT Policy and Legal Support:(Cost $1.20 M) ICT Regulatory Support:(Cost $1.20 M) Outer Islands Connectivity:(Cost $2.00 M) Project Management:(Cost $0.60 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Overall progress: Overall implementation progress remains satisfactory. The two remaining Project activities now underway are (a) ongoing technical and regulatory support for the regulator CCK and (b) Outer Islands Connectivity. Update of ICT policy: In late 2016, MICTTD began a review of the ICT sector policy prepared in 2012. With assistance from an international consultant (supported under this project), this policy as submitted to Cabinet in February 2019. New Operators: In March 2018, Ocean Links began offering internet services and mobile telecommunications in Tarawa. Ocean Links became fully operational on 1 February, 2019 after signing an interconnection agreement with ATHKL on 22 December 2018 and resolving technical issues 4/24/2019 Page 1 of 10 The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) in January 2019. Plans are underway for expansion into Kiritimati and North Tarawa. Ocean Links agreed with MICTTD to provide service to 2 outer islands: Butaritari and Makin; and the Butaritari site was operational in early April 2019. Regulatory Technical Assistance: CCK has concluded all three streams of planned technical assistance, - plans for digital TV licenses; quality of service and a revision of the licensing rules (following amendment to Act s.37). The World Bank has reviewed these reports and made comments. The World Bank noted that CCK has not published an Annual Report since its formation (a requirement under the 2012 Telecommunications Act). Outer Island Connectivity: ATHKL has signed an output-based PPP contract with MICTTD to provide mobile/data service to 4 outer islands during the life of this project - Arorae, Nikunau, Tamana and South Tabiteuea. Work suffered major transport delays affecting hardware supply (electronic and mechanical) to the outer islands. MICTTD and ATHKL and reviewing the project timelines and contract payment schedules. The ready for service (RFS) date is scheduled for May 2019 following which performance testing will be conducted to confirm requirements for payment have been met. Project Management: Proper monitoring of project contracts, documentation and filing continues to be an issue. Project Progress Reports must be updated. The IFR for December 31, 2018 was received by the Bank on March 20, 2019. Audited project financial statements for period ending December 31, 2018 should be received no later than June 30, 2019 by the Bank. The procurement plan has been updated and no objection submitted by the Bank on February 22, 2019. The Project monitoring framework has been updated to reflect status as at February 2019. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Moderate Moderate Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improve ICT policy making capacity IN00688428 ►Improved ICT policymaking capacity (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Basic ICT policy in place. ICT Policy no.2 MICTTD completes Value Limited ICT policy -- developed and review of all current capacity at MCTTD. presented to Cabinet ICT sector policies. 4/24/2019 Page 2 of 10 The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Legal and regulatory framework more effective at delivering sector performance IN00688429 ►Legal and regulatory framework more effective at delivering sector performance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Communications Act ACHIEVED: Sector Telecommunications Act 2013 amended to laws and rules updated 2004 and associated Value -- improve legislation and as appropriate in line instruments in need of CCK accountability - with latest Government revision. completed July 2018. policy initiatives. Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Increase penetration of mobile telephones and internet, including number of direct beneficiaries. IN00688430 ►Increase penetration of mobile telephones and Internet, including number of direct beneficiaries (% of population, of which 53% female) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 45.00 45.00 40.00 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Increase penetration of mobile telephones and internet in Outer Islands IN00688446 ►Increase penetration of mobile telephones and Internet in Outer Islands (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 32.00 32.00 30.00 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Coverage of OI is now 50% of OI population. Customer count estimated only as OI phones are not Comments: separately identifiable. A UA Plan (PPP) is in implementation for 4 additional outer islands. Decrease in tariffs of mobile services and internet access - Price of 3 minutes local mobile call. IN00688447 ►Decrease in tarrifs of mobile services and internet access - Price of 3 minute local mobile call. (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.70 0.56 0.24 0.55 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 The price for local calls in AUD$0.08 cents per minute. Comments: 4/24/2019 Page 3 of 10 The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) Cost of 3 minute call to Australia - Now effectively achieved. IN00688448 ►Cost of 3 minute call to Australia (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 2.35 2.20 5.20 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Currently it is AUD$2.40 charge per 3 minutes during the weekdays and AUD$0.60 per 3 minutes for Comments: weekends. Price of monthly internet services (256kbps) - Now achieved. IN00688449 ►Price of monthly internet serices (256 kbps) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 55.00 24.00 19.00 41.00 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019  Fixed BB (ADSL/WiMax) has been retired.  All now mobile internet 3G/4G plans.  Daily Plan - $2.00 - 300MB Comments:  Weekly Plan - $5.00 - 750MB  Monthly Plan - $19.00 - 3GB; $30.00 - 5GB  Various promotions and bonus data allocations generally improve the standard offer. Intermediate Results Indicators by Components ICT Policy and Legal Support IN00688450 ►Component 1: TSKL restructured. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Basic ICT policy in place. ATHKL expanding TSKL transformation Value Limited ICT policy -- services and and strategy fully capacity coverage. implemented. Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 ATHKL has 4G on Tarawa and upgraded most O/I 2G networks to 3G. 20 BTS operational. Total coverage - 88,432 census). Equivalent to 80.4% population. 7 O/I covered: Comments: 1. Marakei (2,799) 2. Abaiang (5,568) 4/24/2019 Page 4 of 10 The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) 3. North Tarawa (6,629) 4. Maiana (1,982) 5. Abemama (3,262) (2G) 6. N/Tabiteuea (3,955) (2G) 7. Onotoa (1,393) (2G) Program to provide services to 4 additional islands (Tab South(1306), Nikunau (1789), Tamana (1104), Arorae (1011 will raise total with coverage to 85%. ICT Regulatory Support IN00688451 ►Component 2: Reformed Spectrum Management. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Management system is now in place. Existing spectrum plan Spectrum Software has been Value designed for sole -- management plan purchased but need operator. adopted. more training on the system. Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 IN00688453 ►Component 2: Updated telecom numbering plan adopted. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 8 digit is now in place 5 digit numbering plan in Numbering plan Value -- only for mobile and use. adopted wireless fixed lines. Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Five digit dial plan remains till PSTN retirement. Wireless Fixed services are assigned 8 digit numbers according to new Number Plan. Comments: IN00688455 ►Component 2: Interconnection regime adopted. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Interconnection and Interconnection and Access rules has been Access rules finalized. Value None -- finalized and ATHKL RIO adopted approved. and published. Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Interconnection of new operator achieved 1 Feb 2019. Competition effective in South Tarawa. Comments: IN00688456 ►Component 2: Dispute and mediation procedures in place. (Text, Custom) 4/24/2019 Page 5 of 10 The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) Baseline Actual (Previous) Actual (Current) End Target Consumer Protection Rules finalized in Dispute and mediation Value None in place. -- August 2016. procedures in place Consumer Protection is now in place. Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Consumer complaints or other disputes mechanism in place with Consumer protection Rules. Disputes Comments: on prices have been resolved. IN00688457 ►Component 2: Licensing regime in place. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New entrant licensed - Licensing regime Ocean Link. 5 Multi-operator licensing operational - 6 Licensee SPs (ATHL, Value regime not developed. -- individual, 13 class WIS, Ocean Link, licensees Speedcast and Tenicom). Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Licensing regime operational. Taotin was issued with a TV broadcast license and registered as an ISP in 2018. Comments: IN00688458 ►Component 2: Award of other telecommunications licenses. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 13.00 1.00 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 CCK licensed (Ocean Link - mobile telecoms) Mar 2016, Taotin (TV broadcast) in 2018 and issued 13 Comments: class licenses. IN00688459 ►Component 2: Internet broadband (minimum 256Kbps) subscribers (% of population). (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 89.00 89.00 20.00 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Internet cafes for approximately 10 per cent of the population. Mobile internet via 3G & 4G accessible by 45 per cen population. Tenicom and Taotin offering Wifi Internet. Download typically better than 256 kbps. User base = 75% o café users plus Tenicom and Taotin subscribers. Comments: IN00688460 ►Component 2: Number of direct beneficiaries (including % female). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 4/24/2019 Page 6 of 10 The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) Value 0.00 88,432.00 88,432.00 40,000.00 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 Beneficiaries are total population with mobile access = 88432 = 80.4% (per 2015 Census). This will increase with additional 4 islands, estimated increase being to about 85 per cent. 70 per cent of women Comments: and 40 per cent of men are benefitting from use of services now available. Outer Islands Connectivity IN00688452 ►Component 3: Mobile penetration in Outer Islands (% population) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 32.00 32.00 40.00 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 201 5 Ce nsu s OI (ex cl Sth Tar aw a& Kirit ima ti) pop ulat ion Comments: app roxi mat ely 47, 000 . 2G (G PR S) /3G cov era ge in De ce 4/24/2019 Page 7 of 10 The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) mb er 201 8 is 25, 588 = 54 %o f OI pop ulat ion. A n add itio nal 4 isla nds will be con nec ted in 201 9 to rais e tota l pop ulat ion of OIs wit h cov era ge to 30, 598 -. Pe netr atio n est. , is any OI 4/24/2019 Page 8 of 10 The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) resi den t wh o is or has bee na sub scri ber (est ., 65 % of cov era ge = 32 % pop ulat ion) . IN00688454 ►Component 3: Internet penetration in Outer Islands (% population). (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.50 32.00 32.00 20.00 Date 12-Jun-2012 25-Jul-2018 18-Feb-2019 30-Jun-2019 When the project is implemented in the additional 4 islands, penetration will increase. Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P126324 IDA-H7800 Effective USD 1.00 1.00 0.00 0.90 0.13 87% P126324 TF-11213 Effective USD 4.10 4.10 0.00 3.25 0.85 79% Key Dates (by loan) 4/24/2019 Page 9 of 10 The World Bank Implementation Status & Results Report KI: Telecommunications and ICT Development Project (P126324) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P126324 IDA-H7800 Effective 26-Jul-2012 26-Sep-2012 09-Nov-2012 30-Jun-2017 30-Jun-2019 P126324 TF-11213 Effective 20-Jan-2012 13-Feb-2012 13-Mar-2012 01-Dec-2015 30-Jun-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 02-May-2017 Related Project(s) There are no related projects. 4/24/2019 Page 10 of 10