-· 79552 INTEGRATED SA~EGUARDS DATA SHEET - .APPRAISAL STAGE Report No.: Date ISDS Prepared/Updated: Jun~;~ 13, 2013 I. BASIC INFORMATION . 1 Basic Project Data Country: Federated States of Project ID:· P132BB6 Micronesia Project Name: . Federated States of Micronesia and Palau: Telacommunlcatlons & ICT Technical · Assistance Projept · · · Taik Team llladar: Nstasha Beschorner Eetlmatad ApP,releal Date: May 91, 2013 . · t:strmated Board Date: July 20, 2013 Managing Unit: TWICT Lending Instrument: RETF ·sector: Telacommunlcations (100%) . Theme: RegUlation and competition policy (BQ%), Infrastructure for Private Sector Development (40%) Financing (In USD Million) ·, Financing Source Amount ' BORROWER/RECIPIENT 0.00 · International Oevelopmen~ Association (IDA) .0.00 Pacific Regional Infrastructure FacUlty Trust Fund 1.1 Total 1.1 ··.· Environmental Category: c -Not Required Is this a Repeater proJect? No 2. Project ObJectives The proposed development objective Is to facilitate the deveiQpment of a market-driven telacommunlcations.sec!Qr, through the provision of technical assistance focused on reforming and' strengthening tihe legal, (Sgulatory and ' institutional environment 3. ProjecfDescrlptlon The Project w!li comprlse a technical assistance grant elf US$1.1 million financed by a- Recipient-executed grant from· Australian Agency for international Development (A!JsAID) though the Pacific Region Infrastructure Faolllty (PRIF) Trust . Fund covering a two-year program of support to the Department of Transportation, Communication and lnfrastructuna In FSM, and the Ministry of Public Infrastructure, Industries and Commerce In Palau. Components are as follows: . A, ProjeCt Components Federated States of Micronesia .1. Technical a8slstimce for sector reform and analyzing Infrastructure options for Improving connectivity among the states. (US$200,000) The Project will assist the Department of Transportation, Communication and Infrastructure to underjake Its policy functions efficiently and effectively. The types of tasks that are envisaged include supporting the Department with: · (a) Secto; reform: leading the propa,sed sector reforms and guiding tlie development of a new regulatory fnsmework, Including a new Communications Law that (among other matters): Introduces a unified, technology neutral, licensing regime; establishes an Independent, Industry funded, regulator for the ICT sector, provides for wholesale access regulation, Including access to infrastructure; aCidresses anti- competitive conduct and customer protection; provides for technical regulation, including spectrum management and numb11ring; and Includes mechanisms for appeals and enforcement; (b) Improved connectivity; examining options for Improving connectivity between the four states, Including the ·technical and financial options for connecting states to submarine fibre optic cable or for the adoption of alternative forms of International connectlvit.y able to provide substantially comparable levels of service to all citizens; and · (c) Institutional capacity building: project preparation asslstanca, Including preparation of nsports, briefing notes, Cabinet Pape~ and other policy statements to support the Governmenfs ongoing program for ICT sector reform. 2. Technical assistance for the restructuring of the FSMTC (l)S$300,000). The Government hall also placed an immediate priority on introducing competition, promoting open accass to core infnsstructure and restructuring the FSM Telecommunications Corporation (FSMTC). The Projectwifl·asslst In developing and Implementing options for promoting competition and, In this context. restructuring FSMTC. The !Bsks which 11re \l"vfsa~ed Include: (a) Options for establishing ·an infrastruct~re accass entity: developing principles to guide on the possible sepanstion from FSMTC of the submarine cable system and the vesting of that system In a new entity to be established by the Government as.an open access provider of International connectivity. Th!llntenUon Is to maximize usage of the cable system. A related aspect of this work may include providing advice on possible alternative options for promoting non-discriminatory open access 'to the submarine cable system and other essential facll~ies, Including tenrestrlalllnks; · (b) Implementation of prefer.red option for Infrastructure access: providing advice and assistance to the · · Gov.emment during the conduct of the above discussions In order to provide the best achievable outcome for the Government, In Its capacity as the owner of FSMTC, as well as the best possible outcome to support market liberalization and the Introduction of competition. The scope of work could Include (I) advising on the formation of a new entity to own the submarine cable system, its legal and financial structure, Its steffing and resource requirements, arrangements for the future operation and malntena~ce of the cable system, and the design of capacity contractS for the sale of capacity to telecommunications operators and other customel'!l; and (II) developing options to ensure cost-based and non-discriminatory ecce'ss to International .. connectivity is available to all operator&. · . · · (c) Restructuring FSMTC: providing advice on options ~r changing the financial and ownership structure of · FSMTC that will lead to Increased efficiency In FSMTC's operations and potentially the Injection of additional capital, such as via (I) a joint venture agreement wHh an International operator; (li) a management agreement with an International operator; (Ill) Issuing ney.o shares to a private Investor; and (iv) the full or partial sale of the Government shareholdlng In FSMTC to a strategic or financial investor. . Repubfic.of Palau 3. Technical assistance for structuring Government Participation In the Palau-Yap-Guam Cable, (US$200,000), Teclinlcall!sslstanca fo( the technical, legal, anil transactional aspects of the cable system, Including the structure and nature of the Government's financing of the entity leaalng the delivery of the cable system to Palau (I.e., Palau SPV); the ownerShip and management structure of that entity; and the nature and structure of the local operating company . . SPV). .that will participate In the cable project (Palau .. . 4. Technical assistance for policy, legal and regulatory functions. (US$4!10,000) Tech~lcal assistance for the following activities: · . (a) Sector Polley Development: strengthening the capacity of the Division of Communication under the Ministry of Public Infrastructure, Industries and Commerce to oversee and Implement the telecommunications sector reforms envisaged by the natlonaiiCT policy (Including the preparation of reports, briefing notes, Cabinet Papers and other policy statements to support the Governmenrs program for ICT sect!lr reform), undertake ongoing policy development and sector monHorlng functions efficiently and effectively, and develop policies and Implementation planning for a-transactions and a-payments, data privacy and protection, access to and fresdom of information, combating cybercrlme and cyber-security; · (b) Sector reform: advising on proposed sector reforms and guiding the development of a new regulatory fri!mework, Including a new Communications Law, that (among other matters): Introduces a unified, 7 technology neutral, licensing regime; establishes·an lnc:fepeodent, Industry funded, reliulator for the ICT sector; provides for wholesale access regulation Including access to Infrastructure; addresses anti· competitive conduq and customer protection; p~vldes for technical regulation, Including spectrum management and n~mberlng; and lnclud~ mechaniSms for appeals and enforcemen~ · . . • j • (c) Institutional capacity buffdlng. advising on. the establishment and operaUonallzaUon "'a new Independent ICT sector regulator In accordance ~th International best pracllce-. This will Include advice on developing key oapaciUes within the regulator, such as (0 preparing internal procedures .and documentation for the conduct of the. functions of that ofllca, Including licensing, spaclrUm lillocatiori, numbering allocation, number portability, lnterconneotlon and wholesale access services, consumer protection, and control of antlcoinpetltive behavior; (II) developing criteria for the selling of fees for licensing and the use of spectrum;· (111) establishing and maintaining lntemallinanclal controls to ensure effective financial management and proper financial reporting; and (lv) preparing plans (short; medium and longer term) for carrying out 118 resporislbllllies under _!he new legal and regulato!Y environment, and enforclng lie decisions. . I . 4. Project locaUon and salient physical characteristics ralevilnt.to the safeguard analysis '(If . known) Tht~ primary locations for the project are_ the Federated States of Micronesia and the .Repubnc· of Palau &•. Environmental and Social Safeguards Specialists on the 'ream Knut Opsal (EASER) Gerardo F, Parco ( EASPS ) e .sateguard Policies Triggered Yes No Explanation Environmental Assassment OP/BP 4.01 X The Project mainly Involves policy and regulatory support and technical assistance to the Governments of the Federated States of Micronesia and Palau to Improve the reliability ~nd afforilabllltY of telecommunlca.Uons ssrvlces. There will be no financing of any lnfrastr,uctura or construction aotlvllles In tills project. The development of InfrastructUre ' options to achieve connectivity will flag environmental and social Issues which may need to be assessed furlher, relatiVe to esch option. Natural Habitats OP/BP 4.04 ·x There will be no Impact on Natural Habllats' Fol'esls OP/BP 4.36 X There will be no Impact on forests. Pest Management OP 4.09 · X ~o pesticides will be used In this project 'Physical Cultural Resources OPiBP 4.11 X There will be no lmpacl on PCR. Indigenous Peoples OP/BP 4.10 X The project will not flriance any physical Infrastructure, and focuses on .capacity building and regulatory reform. It Is classified as category C· and the project does not Involve any Interventions directed at any particular community. The policy Will therefore not be b1ggered. Involuntary Resettlement OP/BP 4.12 X The project focuses on capacity building and will not flniinca physical Infrastructure or any other activities thatwlll resu~ In resetilemen~ land acquisition or loss of livelihood.. · Safety of Dams OP/BP 4.37 X Not applicable. Projects on International Waters OPIBP 7.50 X Not applicable. Projems In Disputed Areas OP/BP 7.eo X Not applicable. II. Key Safeguard Polley lsaues and Their Management A. Summary of Key Safeguard Issues 1. Describe any. safeguard Issues and Impacts associated with the proposed project. Identify an~ describe any potential large scale, significant ~ndlor Irreversible Impacts: . The proposed project will have no Impact on the physical environment The project consists of policy and regulatory support and .technical assistance to the Governments of the Federated 'Statss of Micronesia and Palau to Improve the reliability an·d affordablltty of telecommunications services. · 2. Descrlbl! any potential Indirect and/or long terin·lmpacts due to anticipated future activities In ~e project area: • Improved connectivity throughout the Federal~ States of Micronesia and Palau Is expected to help Its citizens to have greater access to Information and provide improved communications facililles to the Outer Islands. Improved connectivity may support economic activities e.g. tourism, and Improved service delivery e.g.' health and education. Social benefits are expected to be positive. There are no slgnlflcanl'long term environmental impacts related to the telecommunications faciJltles. . 3. Deecrlbe' any project alternatives· (If relevantl considered to heip avoid or miriimlze adverse Impacts. Not applicable. 4. Describe meaaures taken by the borrower to address eafeguard policy issues. Provide an assessment of . borrower capacity to plan and Implement the measures described • . Not applicable 5; Identify thll key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potantlally affected people. The key stakeholders of the project are the existing and the potential talecommunlcatlons service providers, and all the people of the Federated States of Micronesia and Palau who would benefit from improved ebcess to telecommunication s.ervlces. ' .. · B. Disclosure Requirements Environmental AssessmentfAudltfManagement Plan/Other Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-cou!)lry'' disclosure . . · Date of submission to lnfoShop For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process Was tha document disclosed prior to appraisal? . Data of receipt by the Bank Date of 'In-country'' disclosure Date of submission to JnfoShop · Technical Aaaletance Project For a TA project which will finance the preparation of a specHic s~tfeguards Instrument, please Indicate type of document dlscloead, lf'any: · . If the projacttriggers the Pest Management and/or Physical Cultural Resources policies, the rsspective Issues ars to be addressed and disclosed as part of the Environmental AssessmentfAudlt/or EMP. If In-country dl~closure of any of the above documents Is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS Is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stanc.!'alone EA (including EMP) report? Yes [ J No [X] NA [ ] , OP/BP 4.12 -Involuntary Re~ettlement Has a resettlement plan/abbreviated plan/policy framework/process framework Yes [ l , No [ J NA [X] (as appropriate) been prepared? , If yes,, then did the Regional unit responsible for safeguards or Sector Manager Yes [ 1 No [ l NA [X] review the plan? Hte World Bank Polley on Disclosure of Information Halie relevant safeguard policies documents been sent to the World Bank's Yes [ l No [X] NA [ 1 lnfoshop? · Have relevant documents been disclosed in-country in a public place In a form Yes [ 1 No [X1 NA [ I and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional. responsibilities been Yes [ 1 No [ 1 '. NA,[ ] prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been lnclu>fed in the pcoject Yes [ l No [ ] NA [ 1 cost? Does the MonltoriAg and Evaluation system of the project include the Yes { l No [ ] NA [ J monitoring of safeguard Impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower Yes [ J .No [ ] NA [ 1 and the same been adequately reflected in the project legal documents? lii.APPROVALS Signed, and submitted by: Name (\ 7 , Date Task Team Leader: Natasha Beschornei"- v UV r X June 13, 2013 Approved By: f! Regional Safeguards Coordinator: Peter Leonard PI? 'TC("'' ft' l; ,-, r11..:w ot :101~ Comments: II u f Sector Manager; Samia Melhhem, Acting Sector Manager June 27, 2013 CommeHts;, \\All 0 1·1#-· ' .,.,-- ~J