The World Bank Report No: ISR15983 Implementation Status & Results Armenia E-Society and Innovation for Competitiveness (EIC) Project (P115647) Public Disclosure Copy Operation Name: E-Society and Innovation for Competitiveness (EIC) Project Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 10-Sep-2014 (P115647) Country: Armenia Approval FY: 2011 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Enterprise Incubation Foundation, e-Government Infrastructure Implementation Unit OJSC (EKENG) Key Dates Board Approval Date 30-Nov-2010 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date 25-Oct-2013 Last Archived ISR Date 19-Apr-2014 Effectiveness Date 18-May-2011 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 03-May-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to address constraints to competitive e-Society and enterprise innovation in Armenia by strengthening the underlying infrastructure and enabling environment. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost E-Society Infrastructure Development 4.70 Fostering Enterprise Innovation 17.53 Project Management 1.77 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The ISR reports on the findings of a Bank mission in June, 2014. The project performance has significantly improved as evidenced by the completion of key implementation activities under the following sub- components: 1.2 - Computer for All Program, 1.3 - Digital Citizen Program and 2.2 - Establishment of Gyumri and Vanadzor Technology Center. The disbursement under the project reached $8 million or 40% of the total loan proceeds. The team undertook a site visit to Gyumri and observed very positive developments in the Guymri Technology Center. Gyumri Technology Center facility was fully refurbished and open to public. It hosts the first IT companies, IT training classes and is used by the Gyumri Page 1 of 5 The World Bank Report No: ISR15983 community at large for hosting galleries, school events, workshops and concerts. During the mission, the project re-structuring was finalized and the amended legal agreement sent for counter-signature. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Armenia Yerevan Yerevan ✔ Armenia Shiraki Marz Gyumri Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Access to Internet Services (number of Number Value 15.00 65.00 50.00 subscribers per 100 people) Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments Unit of measure is %. Annual Report - next due in Unit of measure is %. Baseline is a government December 2014 estimate, to be confirmed through household survey currently underway. IT/ITES Employment (number of people) Number Value 5190.00 10740.00 6900.00 Date 30-Nov-2010 13-Dec-2013 30-Jun-2015 Comments Annual Report - next due in December 2014 Access to computers (% of population using a Percentage Value 15.00 41.00 50.00 computer) Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments Baseline is a government n/a estimate, to be confirmed through household survey Public Disclosure Copy currently underway. Development of Knowledge and Technology Percentage Value 1.50 3.30 2.20 intensive industries (Ratio of IT/ITES Sector Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 revenue in GDP) Comments Includes IT services, n/a software, ISPs, and engineering services. Target values assume 15% annual growth. VTC facility is ready for occupancy Date Value 20160630 Page 2 of 5 The World Bank Report No: ISR15983 Date Comments Output indicator. Baseline not new indicator proposed under applicable restructuring. VTC is under Public Disclosure Copy design Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Residential broadband household penetration Percentage Value 8.30 54.40 30.00 in the villages under the project scope Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments Household broadband No new data available. Next penetration as of end-2009 report will be submitted in December, 2014 Price of retail broadband access as a % of Percentage Value 14.00 5.43 5.00 average monthly salary Date 30-Nov-2010 20-Jun-2014 31-Dec-2014 Comments Estimated based on a Annual report - next report is monthly broadband in December 2014 subscription fee of 14,200 AMD and a monthly average salary of 101,800 AMD Number of electronic certificates issued Number Value 0.00 175000.00 5000.00 Date 30-Nov-2010 13-Dec-2013 31-Dec-2014 Comments Percentage of households owning a computer Percentage Value 10.00 40.00 40.00 Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments Household survey underway. 10% estimated PC penetration for 2008 Number of households owning a computer Number Value 3500.00 0.00 10000.00 purchased under the Computer for All program Date 30-Nov-2010 01-Nov-2012 30-Jun-2016 Public Disclosure Copy Comments Computers sold under Computer for All pilot (6 months prior to project appraisal) Number of Matching grants approved Number Value 0.00 0.00 8.00 Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments Project did not commence. Page 3 of 5 The World Bank Report No: ISR15983 Number of projects financed through the Number Value 0.00 0.00 3.00 Venture Fund Date 30-Nov-2010 13-Dec-2013 30-Jun-2016 Comments Activity did not commence Public Disclosure Copy disbursement. Number of projects prepared and presented to Number Value 0.00 0.00 9.00 potential investors Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments Activities have not yet commenced. Number of enterprises benefited from GTC Number Value 0.00 0.00 50.00 Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments GTC has not yet opened. Occupancy rate of GTC Percentage Value 0.00 0.00 80.00 Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments GTC was open in May 2014 Number of sales and investments generated by Number Value 0.00 0.10 1.15 the representative office (million USD) Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments Office was just opened in May 2013. Number of manpower trained and certified Number Value 0.00 0.00 150.00 under the project (number of people) Date 30-Nov-2010 20-Jun-2014 30-Jun-2016 Comments Annual report - next Report in December 2014 Data on Financial Performance (as of 29-Jul-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P115647 IBRD-79630 Effective 30-Nov-2010 26-Jan-2011 18-May-2011 31-Dec-2014 31-Dec-2014 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P115647 IBRD-79630 Effective USD 24.00 24.00 0.00 10.25 13.75 43.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR15983 Public Disclosure Copy Key Decisions Regarding Implementation Key project adjustments were agreed upon through project restructuring with (i) inclusion of Vanadzor Technology Center into the scope of the project;, (iii) replacement of national broadband with rural broadband; and (iii) increase in the grant facility to support regional IT industry and SME development in Gyurmi and Vanadzor. Restructuring History Level two Approved on 16-Sep-2011, Level 2 CD Decision on 09-Jul-2014 Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5