The World Bank Implementation Status & Results Report AFCC2/RI-Central African Backbone SOP5 (P132821) AFCC2/RI-Central African Backbone SOP5 (P132821) AFRICA | Africa | Digital Development Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 8 | ARCHIVED on 01-Dec-2018 | ISR34758 | Implementing Agencies: Democratic Republic of Congo, SOCOF - Société Congolaise de Fibre Optique Key Dates Key Project Dates Bank Approval Date: 16-Jul-2014 Effectiveness Date: 22-Jan-2015 Planned Mid Term Review Date: 18-Jan-2018 Actual Mid-Term Review Date: 19-Mar-2018 Original Closing Date: 31-Dec-2019 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the proposed project is to contribute to increase the geographical reach and usage of regional broadband infrastructure and to reduce the price of services so that more people in the DRC can access information and communication technology (ICT) services. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A - Emergence of an Inclusive Digital Economy:(Cost $13.20 M) Component B - Construction, Management and Commercialization of the CAB5 Infrastructure through a PPP Scheme:(Cost $71.60 M) Component C - Enabling Environment and Regulatory Effectiveness:(Cost $7.30 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This ISR follows the latest supervision mission conducted in September 2018 in Kinshasa, the previous MTR mission, the proposed restructuring of the project, and the subsequent development in the legal and regulatory environment in the ICT sector. No progress in project execution has been noted since the latest ISR. After more than 40 months of implementation (effectiveness = January 2015) the project has met only one of the three disbursement conditions : the signature of the cooperation agreement between SOCOF and the Government. The performance of the project is currently moderately unsatisfactory due to a low disbursement rate 12/1/2018 Page 1 of 6 The World Bank Implementation Status & Results Report AFCC2/RI-Central African Backbone SOP5 (P132821) 1) On the new disbursement conditions The March 2018 midterm review mission proposed the following amendments to the financing agreements:  Split the expenditure category 3 into category 3a (construction of the western cluster in Kinshasa Region) and category 3b (construction of the eastern and southern clusters in Lubumbashi and Goma Regions).  Amend the disbursement conditions of category 3 as follows: o for payments made under Category (3) (a ) – unless the Association has received: (i) the Cooperation Agreement; (ii) a decree of the Recipient setting out the conditions and modalities for the establishment and operation of optical fiber telecommunication networks; and (iii) the Recipient has adopted an option for the PPP model for the operation and commercialization of the fiber optic network built under the project, all in form and substance satisfactory to the Association.” o for payments made under Category (3b), unless the Recipient has through the SPN (Société Congolaise de Fibre Optique – SOCOF), entered into a contract with the private sector partner(s) (PPP) for the entire fiber optic network financed under the Project, in form and substance satisfactory to the Association.”  Place the requirement of the adoption of a new legal and regulatory framework acceptable to the Bank under a dated covenant.  Extend the project end date to allow the construction of the network clusters. 2) Status of the restructuring  The approval and implementation of the new law remains unclear: o An acceptable draft law has been adopted by the assembly and submitted to the Senate. o On November 12, 2018 the Senate adopted a modified draft ICT legislation restoring the rights of the government operator for a monopoly over fixed infrastructure. o The outcome of the Commission Paritaire and the adoption of the law should happen before the end of this Senate session. After this date and with the new election, the new members of the Assembly will have a new proposal, and the adoption will for certain not happen within the timeframe of the project.  The issuance of decree regulating the deployment and management of the fiber optic cables o The Ministerial Arrete for the management and commercialization of optic fiber network was issued on October 4, 2018.  The position of the government f or the PPP option: o The Transaction Adviser recruited under the project developed a short note on the different options, their pros and cons and their business plans and sent it to COPIREP, COPIREP in turn send the options to the Minister of Portfolio and the Minister of Telecom on October 5, 2018 and prompted them to pronounce the Governments decision in this regards o MPTNTIC confirmed the option proposed by COPIREP and transmitted the document to MINPORTFOLIO on November 7, 2018. o The decision of MINPORTFOLIO has not been declared yet. 3) Safeguards studies and implementation plans  Given the nature of the fiber optic deployment, it is not possible to have a complete PAR (Plan Action Ré-installation) before a detailed plan of the deployment (Avant Projet Détaillé – APD), which is costly and timely, and is performed by the construction company. In this case it is agreed that the bank can give its non-objection to the notification of the start of the works given that no actual construction takes place before the total indemnification of the affected population. 4) The operational cost of the SOCOF  As envisaged in the financing agreements, the project will fund the operational costs of the SOCOF for the first two years of the project, after which the revenues from the commercialization of the fiber optic network will ensure that these costs are covered. Therefore the funding ended on September 30th. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- High High Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- High High Fiduciary -- High High 12/1/2018 Page 2 of 6 The World Bank Implementation Status & Results Report AFCC2/RI-Central African Backbone SOP5 (P132821) Environment and Social -- Substantial Substantial Stakeholders -- Substantial Substantial Other -- Substantial Substantial Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Project Development Objective Indicators IN00589742 ►Impact on Telecom sector of World Bank Technical Assistance (composite score: 1- low impact to 5-high impact) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 3.00 4.00 Date 24-Feb-2014 25-Apr-2018 13-Nov-2018 14-Mar-2019 IN00589743 ►Access to Internet Services (number of subscribers per 100 people) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 16.00 17.00 20.00 Date 24-Feb-2014 25-Apr-2018 13-Nov-2018 14-Mar-2019 IN00589782 ►Wholesale national Capacity Transmission Price (per Mbit/s per Month, in US$) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2,000.00 15.00 123.00 200.00 Date 24-Feb-2014 25-Apr-2018 13-Nov-2018 14-Mar-2019 IN00589785 ►Geographical reach of mobile services (percentage of population covered) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 49.10 52.00 50.00 Date 24-Feb-2014 25-Apr-2018 13-Nov-2018 14-Mar-2019 IN00589783 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000,000.00 Date 24-Feb-2014 25-Apr-2018 13-Nov-2018 14-Mar-2019 IN00589787 12/1/2018 Page 3 of 6 The World Bank Implementation Status & Results Report AFCC2/RI-Central African Backbone SOP5 (P132821) Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,500,000.00 Overall Comments PDO The construction phase of the fiber optic has not started yet Intermediate Results Indicators by Components Component A - Emergence of an Inclusive Digital Economy IN00589781 ►Number of Manpower Trained under the Project (number of people) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 141.00 141.00 100.00 Date 24-Feb-2014 25-Apr-2018 13-Nov-2018 14-Mar-2019 Component B - Construction, Management and Commercialization of the CAB5 Infrastructure through a PPP Scheme IN00589744 ►Length of Fiber Optic Network Built (km) (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 600.00 0.00 0.00 3,400.00 Date 24-Feb-2014 25-Apr-2018 13-Nov-2018 14-Mar-2019 The construction phase has not started yet Comments: IN00589784 ►Impact on IT/ITES Sector of World Bank Technical Assistance (composite score: 1 # low impact to 5 # high impact) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 4.00 Date 24-Feb-2014 25-Apr-2018 25-Apr-2018 14-Mar-2019 IN00589745 ►Private Capital Mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20,000,000.00 Date 24-Feb-2014 25-Apr-2018 13-Nov-2018 14-Mar-2019 Comments: The transaction phase has not started yet 12/1/2018 Page 4 of 6 The World Bank Implementation Status & Results Report AFCC2/RI-Central African Backbone SOP5 (P132821) IN00589786 ►Number of MoUs reached between DRC and neighboring countries to implement of a regional interconnection Regime (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 24-Feb-2014 25-Apr-2018 13-Nov-2018 14-Mar-2019 The construction phase has not started yet Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P132821 IDA-H9810 Effective USD 92.10 92.10 0.00 15.21 68.14 18% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P132821 IDA-H9810 Effective 16-Jul-2014 25-Jul-2014 22-Jan-2015 31-Dec-2019 31-Dec-2019 Cumulative Disbursements 12/1/2018 Page 5 of 6 The World Bank Implementation Status & Results Report AFCC2/RI-Central African Backbone SOP5 (P132821) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/1/2018 Page 6 of 6