The World Bank Implementation Status & Results Report Digital Malawi Program Phase I: Malawi Digital Foundations Project (P160533) Digital Malawi Program Phase I: Malawi Digital Foundations Project (P160533) AFRICA | Malawi | Digital Development Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 4 | ARCHIVED on 24-Jun-2019 | ISR37372 | Implementing Agencies: Ministry of Finance, Economic Planning and Development, Public Private Partnership Commission, Ministry to Information and Communications Technology, Malawi Communications Regulatory Authority (MACRA) Key Dates Key Project Dates Bank Approval Date: 05-Jun-2017 Effectiveness Date: 03-Aug-2018 Planned Mid Term Review Date: 01-May-2020 Actual Mid-Term Review Date: -- Original Closing Date: 30-Jun-2022 Revised Closing Date: 30-Jun-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To increase access to affordable, high quality internet services for government, businesses and citizens and to improve the government's capacity to deliver digital public services. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Digital Ecosystem:(Cost $9.50 M) Digital Connectivity:(Cost $34.00 M) Digital Platforms and Services:(Cost $23.90 M) Project Management:(Cost $5.00 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 Moderate Moderate Implementation Status and Key Decisions Since the previous Implementation Status and Results Report (ISR), the project has progressed slowly and concerted efforts are needed for more rapid implementation. As a result of this slow progress, the implementation progress has been downgraded from Moderately Satisfactory (MS) to Moderately Unsatisfactory (MU). Critical processes such as the Grievance Redress Mechanism (GRM) are still pending and need to be finalized and implemented. The progress towards achievement of the project development objectives are retained as moderately satisfactory (MS) however implementation progress needs to accelerate significantly in order to retain his rating and upgrade the implementation progress ratings. 6/24/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Digital Malawi Program Phase I: Malawi Digital Foundations Project (P160533) During the March 2019 mission, the project team agreed on prioritizing key activities which are critical to the achievement of the Project Development Objectives (PDO). Key procurements such as the connectivity transaction advisory services which was previously delayed due to procedural issues is now progressing and at the final stage of award. The Government has confirmed the approval of the “e Government II” project and as such the Digital Malawi project will undergo restructuring and re-allocate the funds for the national data center to other activities. Both projects will coordinate closely for alignment purposes. Total disbursement of the IDA credit stands at 11%. Activities under Component 1(Digital Ecosystem) have already started to impact the telecoms sector. As indicated in the previous ISR, the Malawi Communications Regulatory Authority (MACRA) enacted 18 regulations under the Communications Act which were prepared under the Regulatory Advisory Services consultancy under the project. These regulations are expected to result in increased competition and lower prices in the sector. Interconnection rates between telecoms operators are being gradually reduced on a downward glide path which will lead to decreased retail rates. In addition, MACRA has been able to call for license applications in the voice and data markets. These license applications have been reviewed and are ready for issuance. However, MACRA licenses are issued by their Board of Directors and the Board has not yet been constituted, hence the slight issuance delay. The procurement for the consultancy for the drafting of a Data Protection and Privacy regulatory framework has been completed and the process is expected to commence shortly. MACRA is currently developing a cyber security Computer Emergency Response Team (CERT) implementation plan with the support of the International Telecommunications Union (ITU). Once this implementation plan is finalised, then it will be transmitted to the project implementation unit (PIU)for implementation. Despite two earlier failed attempts to recruit an Information and Communications Technology (ICT) partnerships and grants manager, a suitable person has finally been identified and has started work in May 2019. The three priority activities identified under component 1 include a) the preparation of a comprehensive regulatory, policy and cyber security capacity building plan b) the completion of a National ICT survey for public and private sector and c) the drafting and enactment of Regulations under the Electronics Transactions Act. Under Component 2, a key challenge that was raised by the Government during the previous mission was the poor quality of the Government Wide Area Network (GWAN.) The poor conditions of the Local Area Network (LAN) pose a key bottleneck preventing access to high speed connectivity. As such, it was jointly agreed that the project would prioritise the LAN upgrades for critical Government offices including the Accountant General, the Ministry of Finance, the Ministry of Agriculture and the Ministry of Health. As previously indicated, the Malawi Research and Education Network (MAREN)’s) management has been recruited. MAREN has submitted a license application to the Malawi Communications Regulatory Authority (MACRA) so that they can lawfully provide services. The MAREN is currently in the process of procuring 1.2 Gbps content for MAREN from Ubuntunet to support connectivity for higher institutions. One of MAREN’s priority activities is also the procurement of key technical services to establish their network. The consultancy for the Rural Broadband access solutions is underway and will support MACRA to prepare for rural connectivity projects funded by the Universal Services Fund (USF) and the Digital Malawi project. Component 3 has shown least traction under the project hence the moderately unsatisfactory (MU) rating. The Government has still not approved a series of strategies that were previously prepared including a) institutional set up of e Government capability b) Digital Government Strategy and c) Digital Government Strategy Implementation Plan. The e Government directorate has opted to establish an interim body to implement the e Government functions as opposed to the independent Digital Government Agency and IT Authority that was proposed by the Digital Government Strategy and Institutional review report. The limited capacity in the e Government department has limited the progress under this component and the project has agreed to provide them with technical assistance support in order to ensure that this interim body is effective. The project will recruit a digital Government advisor (at Chief Information Officer) level who will guide the e Government team through this institutional and technical transformation as a matter of urgency. The project will also support the recruitment of 4 additional consultants to guide the transformation process. Key Milestones and Achievements to date  18 telecoms regulations to support implementation of the provisions of the Communications Act 2016 and e-Transactions Act 2016 (prepared with technical assistance support under RCIPMW) have been developed with the project’s support. These cover critical issues such as economic regulation of dominant market players, competition, infrastructure sharing, quality of services, consumer protection, etc. which will have an impact on affordability and quality of ICT services and stimulation of private investment and competition across Malawi.  A national broadband strategy has been developed (awaiting final approval).  A project team has been recruited for the Malawi Research and Education Network (MAREN).  A digital government strategy and institutional review study has been drafted, providing a vision for digital government services and recommendations for institutional set up and capacity building needed to carry out the digital government vision.  The Nationwide Digital Mapping program has been completed  An Enterprise Architecture for government IT operations and digital services has been developed  A technical audit and user requirements study for the Government Wide Area Network (GWAN) has been completed.  Key Messages:  A fully dedicated team at Ministry of ICT is needed to support effective project implementation of the Digital Malawi program. Government is encouraged to recruit a dedicated project team with the requisite technical and project management skills and outcome-based performance contracts to support project implementation.  The government is urged to move quickly to create an institution with the leadership, technical skills, authority and resources (human and financial) to achieve its ambitious digital government vision. Such an institution and its leadership will be critical to transforming how services are delivered to citizens and businesses, improving the efficiency of government operations and laying the foundations of the digital economy as a source of economic growth and job creation. Without a fundamental change, Malawi will miss out on these opportunities. 6/24/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Digital Malawi Program Phase I: Malawi Digital Foundations Project (P160533) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial High High Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial High High Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Moderate High High Fiduciary Moderate Moderate Moderate Environment and Social Moderate Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Increase access to affordable, high quality internet services IN00709857 ►Internet Users per 100 people (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 17.60 19.60 27.30 30.00 Date 30-Dec-2016 02-Feb-2018 11-Jun-2019 30-Jun-2022 IN00709859 ►Retail Price of Pre-Paid Mobile Broadband Monthly Bundle, 500MB Data Volume (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.08 4.00 2.80 3.00 Date 30-Dec-2016 02-Feb-2018 11-Jun-2019 30-Jun-2022 IN00709886 ►Number of Public Institutions Utilizing High Speed Internet Connections Under the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/24/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Digital Malawi Program Phase I: Malawi Digital Foundations Project (P160533) Value 0.00 0.00 0.00 400.00 Date 02-Jun-2017 12-May-2018 11-Jun-2019 30-Jun-2022 IN00709888 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6,280,000.00 Date 02-Jun-2017 12-May-2018 11-Jun-2019 30-Jun-2022 IN00709889 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 46.00 0.00 0.00 48.00 Improve the government's capacity to deliver digital public services IN00709858 ►Number of Transactions Per Year Utilizing the Shared Digital Services Platform (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25,000.00 Date 02-Jun-2017 12-May-2018 11-Jun-2019 30-Jun-2022 IN00709860 ►People obtaining new digital skills or knowledge under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 205.00 0.00 1,500.00 Date 02-Jun-2017 02-Feb-2018 11-Jun-2019 30-Jun-2022 IN00709887 Of which, Percentage of Women and Girls obtaining new digital skills or knowledge under the project (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.70 15.70 50.00 Intermediate Results Indicators by Components Digital Ecosystem IN00709890 ►Publication and Adoption of National Strategies for Broadband Access and Digital Government (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 6/24/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Digital Malawi Program Phase I: Malawi Digital Foundations Project (P160533) Date 02-Jun-2017 12-May-2018 11-Jun-2019 30-Jun-2022 Indicator expected to be met as of next ISR Comments: IN00709893 ►Average wholesale monthly price per Mbit/s of international internet bandwidth (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 466.00 466.00 124.00 50.00 Date 28-Feb-2017 12-May-2018 11-Jun-2019 30-Jun-2022 New data not yet reported Comments: Digital Connectivity IN00709891 ►Percentage of the population covered by at least a 3G mobile network (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 32.00 42.00 54.90 60.00 Date 31-Dec-2015 31-Dec-2016 11-Jun-2019 30-Jun-2022 Latest ITU data that has been released is for December 2016. 2017 data should be available soon. GSMA intelligence also shows growth in 3G and 4G though with a much lower baseline and current Comments: indicator (22%). IN00709894 ►Number of Higher Education Students Provided with Enhanced with Access to the Internet Under the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,000.00 Date 02-Jun-2017 12-May-2018 11-Jun-2019 30-Jun-2022 Digital Platforms and Services IN00709892 ►Number of e-Services and Applications Utilizing the Shared Services Platform (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.00 Date 02-Jun-2017 12-May-2018 11-Jun-2019 30-Jun-2022 IN00709895 ►Number of MDAs and LGAs using eProcurement System (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 02-Jun-2017 12-May-2018 11-Jun-2019 30-Jun-2022 IN00709896 6/24/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Digital Malawi Program Phase I: Malawi Digital Foundations Project (P160533) ►Digital services developed based on priorities identified through citizen engagement (Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 02-Jun-2017 12-May-2018 11-Jun-2019 30-Jun-2022 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P160533 IDA-60500 Effective USD 72.40 72.40 0.00 7.75 65.88 11% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P160533 IDA-60500 Effective 05-Jun-2017 09-Jul-2018 03-Aug-2018 30-Jun-2022 30-Jun-2022 Cumulative Disbursements 6/24/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Digital Malawi Program Phase I: Malawi Digital Foundations Project (P160533) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/24/2019 Page 7 of 7