The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) EAST ASIA AND PACIFIC | Kiribati | Digital Development Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 4 | ARCHIVED on 18-Apr-2019 | ISR36546 | Implementing Agencies: Republic of Kiribati, Ministry of Information, Communications, Transport and Tourism Development Key Dates Key Project Dates Bank Approval Date: 31-May-2017 Effectiveness Date: 24-Aug-2017 Planned Mid Term Review Date: 18-Nov-2019 Actual Mid-Term Review Date: -- Original Closing Date: 30-Nov-2022 Revised Closing Date: 30-Nov-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project development objective is to reduce the cost and increase the availability of Internet services in Kiribati. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name 1 (a) Submarine Cable System:(Cost $15500000.00 M) 1 (b) (i) Cable Landing Station and Ancillary Equipment:(Cost $1500000.00 M) 1 (b) (ii) Connection of the EMC to the Pohnpei Cable Landing Station 2 Technical Assistance:(Cost $2000000.00 M) 3 (a) Project Management & Administration: Activities to Strengthen Capacity of the Recipient:(Cost $800000.00 M) 3 (b) Project Management & Administration: Program of Activities to Strengthen the Project Implementing Entity's Capacity:(Cost $200000.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions 1. Delay in EMC Cable implementation. The proposed East Micronesia Cable (EMC) system will connect Kiribati (Tarawa), Nauru and FSM (Kosrae-Pohnpei) with onward connectivity from Pohnpei to Guam (US) via the HANTRU-1 cable. Implementation of the EMC cable has been delayed pending resolution of organizational issues in FSM and the protracted negotiations among the EMC partners on the key documentation: the Construction and Maintenance Agreement (C&MA) and the IRU Deed. These documents are now in final draft form as of April 5, 2019. 4/18/2019 Page 1 of 6 The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) 2. Delay in operationalization of Bwebweriki Net Ltd (BNL). This entity has been established as an SOE by the Government of Kiribati to manage the EMC cable as well as other state-owned assets (the Outer Islands Network supported under the Telecoms and ICT Development Project-P126324; and the planned ADB-financed Kiritimati cable). BNL has a Board of Directors, one of whom is the Interim CEO and it plans to recruit two staff members. However, BNL has yet to develop a business plan and governance rules; and operating procedures. Technical and managerial functions are to be outsourced to a qualified service provider for which the REOI was published in March 2019--this is a high priority. 3. Conclusion of remaining legal agreements to meet withdrawal conditions. Once fully operational, BNL has to: (a) negotiate and sign the Project Agreement with the World Bank (draft already provided for review); (b) negotiate and sign a Subsidiary Agreement with the Ministry of Finance and Economic Development (MFED); (c) sign the proposed Construction and Maintenance Agreement (C&MA) and Indefeasible Right of Use (IRU) Agreement with Nauru and FSM counterparts. (d) register as an operator, pay operator license fees and prepare a Reference Interconnection Offer (RIO) all to be endorsed by CCK. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Substantial Substantial Substantial Other Moderate Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Direct Project Beneficiaries (No change until EMC operational). IN00687891 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15,000.00 15,000.00 15,000.00 45,000.00 Date 30-Dec-2016 25-Jul-2018 18-Feb-2019 31-May-2022 IN00687897 Female beneficiaries (No change until EMC operational). (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 4/18/2019 Page 2 of 6 The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) Value 5,000.00 5,000.00 5,000.00 25,000.00 Access to internet services (number of subscribers per 100 people). IN00687892 ►Access to Internet Services (number of subscribers per 100 people) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 89.00 89.00 45.00 Date 30-Dec-2016 25-Jul-2018 18-Feb-2019 31-May-2022 Wholesale internet bandwidth price (Mbps/Month). (No change until EMC operational). IN00687893 ►Wholesale internet bandwidth price (Mbps/Month) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 700.00 700.00 700.00 250.00 Date 30-Dec-2016 25-Jul-2018 18-Feb-2019 31-May-2022 Retail Price of Internet Services (per Mbit/s per Month, in US$) IN00687894 ►Retail Price of Internet Services (per Mbit/s per Month, in US$). (No change until EMC operational). (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 15.00 15.00 2.00 Date 30-May-2017 25-Jul-2018 18-Feb-2019 30-May-2022 Market no longer provides this product. This cost of data is declining. Entry daily plan previously was Comments: AUD$5.00 - 150MB and now is AUD$2.00 for 200MB. Available International Bandwidth (Mbps). (No change until EMC operational). IN00687895 ►Available International Bandwidth (Mbps) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 150.00 400.00 450.00 1,000.00 Date 30-May-2017 25-Jul-2018 18-Feb-2019 31-May-2022 International connectivity is in access of the initial projections for high end usage. Comments: Number of beneficiaries that feel project investments reflected their needs. IN00687896 ►Beneficiaries that feel project investments reflected their needs (number) (Number, Custom) 4/18/2019 Page 3 of 6 The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 22,500.00 Date 30-May-2017 25-Jul-2018 18-Feb-2019 31-May-2022 IN00687898 Beneficiaries that feel project inv. reflected their needs - female (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12,500.00 IN00687899 Total beneficiaries - female (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25,000.00 IN00687900 Total beneficiaries - male (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20,000.00 IN00687901 Beneficiaries that feel project inv. reflected their needs - male (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,000.00 Intermediate Results Indicators by Components 1 (a) Submarine Cable System IN00687902 ►Length of Fiber Optic Network Built (km). (No change until EMC operational). (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,144.00 Date 30-Dec-2016 25-Jul-2018 18-Feb-2019 31-May-2022 1 (b) (ii) Connection of the EMC to the Pohnpei Cable Landing Station IN00687903 ►Construction & Maintenance Agreement Signed between Kiribati, Nauru and FSM - pending negotiations (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-May-2017 25-Jul-2018 18-Feb-2019 30-Aug-2019 4/18/2019 Page 4 of 6 The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P159632 IDA-D1870 Effective USD 20.00 20.00 0.00 0.41 20.24 2% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P159632 IDA-D1870 Effective 31-May-2017 03-Jul-2017 24-Aug-2017 30-Nov-2022 30-Nov-2022 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/18/2019 Page 5 of 6 The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) 4/18/2019 Page 6 of 6