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 | Transport & Digital Development Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 3 | ARCHIVED on 10-Oct-2018 | ISR33297 | 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: 12-Nov-2018 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 Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Project Summary: 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. WB is financing Kiribati's participation in the EMC under this project, plus associated technical assistance and management support. Implementation of the EMC cable has been delayed pending resolution of organizational issues in FSM. 10/10/2018 Page 1 of 6 The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) Bwebweriki Net Ltd (Component 1): The key next step is to ensure that Bwebweriki Net Ltd (BNL - the national cable operating company - an SOE) is fully functional. BNL needs to further develop its business plan and governance rules; outsource its day to day operations/administration; recruit staff etc. The Government has already recruited technical and legal advisors to support this, so it is advisable to expedite this process now.. The aide memoire has outlined the steps and timeline within which to complete this process 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. Draft Project and Subsidiary Finance Agreements have been developed but yet to be reviewed by Government of Kiribati (GoK). EMC Implementation (Component 1): A MOU that outlined technical, managerial and financial principles for the EMC system was negotiated and signed on 17 April 2018 with FSM and Nauru counterparts. A draft C&MA was circulated on 21 June 2018 for comments. Progress of the IRU depends on progress of C&MA. Technical System Specifications of the EMC system was given to FSMTCC (to lead) in June 2018. RFB expected before end 2018 (initially in September 2018, but delayed) Technical Specifications and call for proposals (expected by mid-2018 with contract awarded by end 2018) is delayed pending resolution of organizational changes that have occurred in FSM. Anticipated that EMC will be RFS by end 2020. Technical specification for Upgrade of the Pohnpei to Guam (Hantru-1) system was prepared and passed to FSMTCC (to lead). Discussions still ongoing about financing this upgrade. Capacity Building (Component 2): Project funding will continue to support and develop skills and build capacity for MICTTD, BNL and CCK staff. Capacity development for CCK staff will focus on managing access to and services on the cable and for MICTTD, development of e- Government services. REOI for e-Government component was issued and responses received. It was decided that ToR be revised to reduce amount of time in-country and extend scope of works to include ICT policy elements. Revised RFP was issued to shortlisted firms, closing date was 12 September 2018. Review of technical proposals expected by 30 September 2018. 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). IN00616908 10/10/2018 Page 2 of 6 The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) ►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 02-Oct-2017 25-Jul-2018 31-May-2022 IN00616921 Female beneficiaries (No change until EMC operational). (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 5,000.00 5,000.00 5,000.00 25,000.00 Access to internet services (number of subscribers per 100 people). IN00616909 ►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 30-Jan-2018 25-Jul-2018 31-May-2022 Wholesale internet bandwidth price (Mbps/Month). (No change until EMC operational). IN00616910 ►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 30-Jan-2018 25-Jul-2018 31-May-2022 Retail Price of Internet Services (per Mbit/s per Month, in US$) IN00616917 ►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 30-Jan-2018 25-Jul-2018 30-May-2022 Available International Bandwidth (Mbps). (No change until EMC operational). IN00616918 ►Available International Bandwidth (Mbps) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 150.00 400.00 400.00 1,000.00 10/10/2018 Page 3 of 6 The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) Date 30-May-2017 30-Jan-2018 25-Jul-2018 31-May-2022 Number of beneficiaries that feel project investments reflected their needs. IN00616920 ►Beneficiaries that feel project investments reflected their needs (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 22,500.00 Date 30-May-2017 30-Jan-2018 25-Jul-2018 31-May-2022 IN00616922 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 IN00616923 Total beneficiaries - female (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25,000.00 IN00616924 Total beneficiaries - male (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20,000.00 IN00616925 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 (b) (ii) Connection of the EMC to the Pohnpei Cable Landing Station IN00616919 ►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 30-Jan-2018 25-Jul-2018 30-Aug-2019 1 (a) Submarine Cable System IN00616916 ►Length of Fiber Optic Network Built (km). (No change until EMC operational). (Kilometers, Custom) 10/10/2018 Page 4 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 2,144.00 Date 30-Dec-2016 30-Jan-2018 25-Jul-2018 31-May-2022 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 0.35 21.19 1.6% 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 10/10/2018 Page 5 of 6 The World Bank Implementation Status & Results Report P4: Pacific Regional Connectivity Program Phase 4: KI: Connectivity Project (P159632) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/10/2018 Page 6 of 6