The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) REPORT NO.: RES34332 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PACIFIC REGIONAL CONNECTIVITY PROGRAM SAMOA CONNECTIVITY PROJECT APPROVED ON JUNE 19, 2015 TO INDEPENDENT STATE OF SAMOA DIGITAL DEVELOPMENT DEPARTMENT EAST ASIA AND PACIFIC REGION Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Boutheina Guermazi Acting Practice Manager/Manager: Doyle Gallegos Task Team Leader: Natasha Beschorner The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) ABBREVIATIONS AND ACRONYMS CURRENCY EQUIVALENTS EXCHANGE RATE EFFECTIVE JULY 31, 2019 CURRENCY UNIT = US$1 = WST2.60 WST1.0 = US$0.38 SDR1 = US$1.38 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank CAPEX Capital expenditure CR Civil Registration DFAT Australian Department of Foreign Affairs and Trade ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan FM Financial management Gbps Gigabits per second GDP Gross domestic product GNI Gross national income ICT Information and communication technologies ID Identification IDA International Development Association Mbps Megabits per second MCIT Ministry of Communications and Information Technology MOF Ministry of Finance MOU Memorandum of understanding NDID National Digital ID OAG Office of the Attorney-General OOTR Office of the Regulator OPEX Operating expense PPP Public-private partnership SBS Samoa Bureau of Statistics SSCC Samoa Submarine Cable Company TA Technical assistance BASIC DATA The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) Product Information Project ID Financing Instrument P128904 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 19-Jun-2015 31-Jul-2020 Organizations Borrower Responsible Agency Ministry of Finance,Samoa Bureau of Statistics,Samoa Independent State of Samoa Submarine Cable Company,Office Of The Regulator Project Development Objective (PDO) Original PDO The Project development objective is to reduce the cost and increase the availability of Internet services in theIndependentStateof Samoa. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D0630 19-Jun-2015 11-Aug-2015 04-Sep-2015 31-Jul-2020 16.00 11.41 4.79 TF-A2332 23-Mar-2016 30-May-2016 16-Nov-2016 31-Jul-2020 1.50 .87 .63 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. RATIONALE FOR RESTRUCTURING 1. The original Project comprised three components: (1) Submarine Cable System; (2) Regulatory Technical Assistance, and (3) Project Management. The original Project Development Objective (PDO)—to reduce the cost and increase the availability of internet services— has been achieved. The Tui Samoa submarine cable to Fiji was installed and operational (ready for service) in February 2018 and significant technical assistance has been delivered to the Office of the Regulator (OOTR). Samoa Submarine Cable Company (SSCC) is fully operational and supplying capacity to telecommunications and internet services providers in Samoa under agreed interconnection contracts and at standardized prices. The telecommunications and internet service providers and other private sector entities have contributed share capital to the SSCC and are represented on the Board to ensure its ongoing viability. The Project is rated Satisfactory both for Progress towards Achievement of the PDO, and for Implementation Progress. 2. A restructuring, including closing date extension, is proposed to utilize US$4.382 million in IDA-funded Project savings.1 These savings were realized as the cost of the submarine cable system, financed under Component 1, was lower than anticipated, following a competitive bidding process. 3. With improved digital infrastructure and connectivity, the Government of Samoa has requested Project savings to be utilized to develop two more foundations for digital government and the digital economy, namely digital ID and a digital government platform. In line with the Government’s digital transformation policy agenda, the development of a digital ID system and a digital government platform are a natural continuation for this Project because they, like connectivity, are a prerequisite for digital government and the digital economy, and they enable the creation of use cases (e.g. financial services and shifting government services from face-to-face to online) which will allow Samoa to maximize the benefits from cheaper and better quality connectivity. Digital ID, for example, allows people to reliably prove who they are online, which is a fundamental challenge for doing secure and meaningful transactions over the internet (i.e. without an in-person interaction or the submission of physical identity documents). A digital government platform will create a virtual ‘one stop shop’ for Samoans to access government services online, simultaneously reducing costs for government and increasing accessibility of such services to the population. With these foundations in place, future digital transformation projects in Samoa could invest in the development of specific online services (e.g. license and passport applications, telemedicine, business registration, etc.), which require capacity-building and process re-engineering in responsible line ministries and agencies 4. Digital ID. There is a compelling justification for the Government to introduce a national digital ID (NDID) system 1Amounts noted in the main text of this Restructuring Paper are accurate to three decimal places, however, due to rounding, there are some small variations with the datasheet. What will happen to the ADB portion of cost savings is yet to be confirmed and so their full allocation to Component 1 has been left as the original amount. The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) with two functions: (i) providing a unique and digital legal identity to the citizens and residents of Samoa; and (ii) enabling the identity of citizens and residents of Samoa to be authenticated in real time, for both in person and online transactions. Such a foundational ID system can provide a significant boost to Samoa’s development in the following ways, inter alia: a. Inclusion: Making services (e.g. banking, remittances, passports, visa applications, and licenses and permits) more accessible and cheaper, since the digital ID should be accepted by itself as proof of identity and its authentication function will streamline the administrative processes behind these services; b. Integrity: Acting as an authoritative source of truth on identity, which will strengthen the accuracy of other information systems, databases and registries (e.g. by ensuring uniqueness), including the electronic Health Information System (HIS) being developed with support from ADB, passport applications, the voter registry, and the Student Enrollment Number (SEN) system; and c. Digital Government and Digital Economy: Facilitating the digitization of service delivery and processes in the public and private sectors, including enabling relevant public and private sector services to go online, which will make them more accessible and innovative as more Samoans get access to the internet. 5. Upgrading civil registration (CR) system technology. Likewise, there is a clear need to upgrade the software that the CR system runs on which is more than 10 years old and has reached the end of its life. Apart from improving the functioning and reducing the costs of maintaining the CR system, which should in turn help increase the coverage, quality and timeliness of birth and death registration, new software (and accompanying hardware) is necessary to support the sustainability and accuracy of the NDID system. 6. Digital government platform. The development of digital government services, including integrated government back office systems and front-line services to individuals and business, will require a significant change in the approach to government information systems and data management. Specifically, this entail transitioning away from siloed approaches to a “whole of government approach.” The Government is aware of global trends and practices in this regard and is in the process of establishing a high-level agency for digital development. 7. During the Mid-term review in August 2018, and subsequent discussions with the client including follow-up missions in December 2018 and April 2019, the World Bank team assessed that a 23-month extension is needed for these new activities to be completed. II. DESCRIPTION OF PROPOSED CHANGES 8. Extension of IDA Grant closing date. The proposed change includes an extension of the closing date for the IDA grant (IDA-D0630) from July 31, 2020 to June 30, 2022. This is the first extension for the Project. 9. Addition of new Project activities. The proposed new activities for using the US$4.382 million savings in IDA funds are as follows. New Component 4. National Digital ID (NDID) system development (US$4.096 million) The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) 10. Scope and rationale. Currently, apart from the civil registration system that needs modernization, Samoa does not have a foundational ID system. The population uses a combination of IDs to identify and authenticate themselves, such as driving licenses and passports. This subcomponent will therefore finance the development and early implementation of the national digital ID (NDID) system, in line with the Principles on Identification for Sustainable Development2 as a guiding framework of international best practices and drawing on the resources and guidance of the World Bank Group’s Identification for Development (ID4D) Initiative. The NDID – linked with CR – will provide a unique and digital legal identity to all citizens and residents of Samoa and facilitate the reliable authentication of that identity and the use of electronic signatures for in-person and online transactions. Its objective will be to increase access to and enable the digitalization of public and private sector services. 11. Priority services that have been identified for the NDID include voter registration (for upcoming elections in March 2021), financial services (e.g. Know Your Customer (KYC) requirements for remittances and account opening), uniquely identifying patients in the health sector, uniquely identifying students, and passport applications. The NDID will also be instrumental in aiding trusted transactions through the digital government platform (e.g. registering businesses or property online) and in thesubc digital economy (e.g. e-commerce). Finally, the NDID and upgraded CR system will support Samoa in achieving Sustainable Development Goal (SDG) target 16.9 to “provide legal identity for all, including birth registration” by 2030 and many other SDG targets for which progress can be accelerated through digital identity (e.g. the empowerment of women and girls, safe and orderly migration, and social protection), as well as to make progress under the United Nations Economic and Social Commission for Asia and the Pacific’s (ESCAP) Regional Action Framework on Civil Registration and Vital Statistics. 12. The highest priority will be given to ensuring inclusion and non-discrimination (both in terms of enrolling in the NDID and using its authentication capabilities), data protection and privacy (particularly with respect to consent and incorporating ‘privacy by design’ features into the architecture of the system), cyber- and information security, and meeting the needs of a wide range of service providers as relying parties. As a foundational ID system, the NDID is intended to underpin “functional” ID systems and registries (used for particular purposes, e.g. Health Information Systems and Education Management Information Systems), which can involve “seeding” the unique identity number assigned to individuals by the NDID into those functional ID systems and registries, using tokenization, where appropriate, to prevent unwarranted correlation of data. 13. Proposed approach. The NDID will have the following characteristics: a. Coverage: All citizens and residents of Samoa, including all age groups, will be eligible for enrollment in the NDID free of charge. Citizens living abroad may also be eligible and could be charged a fee for cost recovery. The World Bank-financed project will prioritize registration of the population currently residing in Samoa. A strategy for registration of Samoans overseas will be prepared. Special efforts should be undertaken to provide digital IDs to first-generation Samoan migrants in Australia and New Zealand as key sources of remittances to Samoa, in recognition of the role that the NDID can play in ensuring KYC compliance for these important remittance channels. b. Data: In line with best practices around data protection, the NDID will collect and hold only the minimum data needed to establish identity for service delivery, namely: (1) name; (2) date of birth; (3) gender; and (4) appropriate biometrics (in accordance with international standards, such as the International Civil Aviation 2The 10 Principles on Identification for Development have been endorsed by 24 international and regional organizations, including the World Bank Group, the Asian Development Bank, and seven United Nations agencies. They are available at: http://id4d.worldbank.org/principles The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) Organization (ICAO) 9303 standards). Email and phone number will be optional fields to facilitate notifications and One Time Password-based authentication. Government will review the value of also collecting residential address. Biometric recognition, such as of facial images, will be used for deduplication and authentication purposes, and their security will be continuously strengthened, including, inter alia, encryption, access control, and data segmentation. Exception handling mechanisms will be introduced to ensure that people whose biometrics cannot be captured or used for authentication will not be denied access to the NDID or any service that uses the NDID for authentication. c. Credentials: A random unique identity number will be issued to all persons enrolled in the NDID. A minimal- cost card (potentially leveraging barcodes for identity authentication) will be issued to all enrolled persons beginning at an appropriate age, such as 12 years old. The first and expired cards will be free while lost or damaged cards could be replaced free or at cost price. A mobile ID, as a digital identity credential with the same effect as a physical card, will be available as an option to increase choice and convenience for end-users. d. Authentication: The NDID will facilitate identity authentication and electronic signatures through a variety of means, such as presentation of the physical card or mobile ID, facial recognition against the database or a barcode on the card, and public key infrastructure (PKI). Authentication will be possible without the possession of a physical card (e.g. the unique identity number and biometric recognition or One Time Password (OTP) against the NDID database, requiring internet connectivity). e. Linkage with CR: The NDID will be linked with the upgraded CR system, including assigning unique identity numbers to newborns through birth registration and being notified of deceased persons (to deactivate or lock those records) through death registration. f. Vendor and technology neutrality: Both the NDID and CR system will be designed and implemented in a way that reduces risks of lock-in. Open standards and design principles will be adopted for the technological solutions, and capacity-building and knowledge transfer will be integrated into the procurement of solutions. Open source software will be considered, where appropriate. 14. The initial mass enrollment will adopt a census-style approach with teams visiting communities and using mobile kits and/or tablets to collect data. After the mass enrollment, the mobile kits and/or tablets (except those needed by the NDID to carry out steady state enrollment and to update data) will be transferred to other Government institutions that can use them as authentication devices for service delivery. Furthermore, the NDID may be able to provide card personalization services to other Government departments for their functional IDs. 15. To support NDID implementation and upgrade of the CR system, the Government will need to formulate and adopt an appropriate policy, legal and regulatory framework and build the foundations for digital government implementation. 16. To the extent possible, the NDID will adopt features that could facilitate mutual recognition with other countries’ digital identity systems, particularly Australia, New Zealand and other Pacific island countries, which will enable greater integration and trade. For example, Samoans could register businesses, open bank accounts or enter into contracts in Australia using a digital identity and electronic signature issued by Samoa’s NDID, without the need to be physically present in Australia. 17. Timeline and Sequencing. In line with best practices, the NDID and associated activities should be implemented in the following sequence (timeframes are indicative): The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) a. Phase 1 (months 0-12): (i) Enacting of the NDID and the data protection and privacy law and promulgation of regulations (see subcomponent 4 (a), including public consultations and harmonization of/with other relevant existing laws and regulations. (ii) Development of implementation strategy and technical and functional requirements for the NDID system and the new CR system (iii) Establishment of entity or division to manage the NDID (iv) Initiate public engagement to raise awareness and solicit feedback on the proposed design of the NDID b. Phase 2 (months 7-12): (v) Procurement and installation of software, hardware and services for the NDID system and new CR system (vi) Preparations for mass enrollment and for public and private sector relying parties to adopt the NDID for service delivery c. Phase 3 (months 13-18): (vii) Mass enrollment and credential distribution completed (viii) Initial use cases for authentication using the NDID begins through integration into public and private sector service delivery d. Phase 4 (months 19-24): (ix) Integration of NDID into service delivery continues (x) NDID and CR system linked 18. Activities to be Financed. The proposed new Component 4 will support the Government in three interrelated key areas: enabling laws and regulations, NDID design and implementation, and digital Government platform options assessment and high-level design. Subcomponent 4 (a): Legal and regulatory enabling environment (US$0.5 million) 19. This subcomponent will provide technical assistance to support the development and implementation of a legal and regulatory framework that is consistent with the Principles on Identification for Sustainable Development (http://id4d.worldbank.org/principles), to enable digital identification, digital government and, more broadly, digital economy development, including the preparation of draft bills and associated regulations on: (i) the National Digital ID System; (ii) data protection and privacy; and (iii) other relevant laws and regulations including, but not limited to, cybersecurity, cybercrimes, electronic transactions, data governance, and birth and death registration. This technical assistance will also support analytical work, public consultations, institutional capacity building, and implementation of reforms designed to strengthen coverage and inclusion, system design and the governance of the National Digital ID System, particularly to protect users, safeguard privacy, and prevent the misuse of data. 20. Key activities to be financed under this subcomponent are: a. Consultant services: legal and regulatory technical assistance The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) Subcomponent 4 (b) Advisory Assistance on a Samoa Digital Government Platform (US$0.4 million) 21. This subcomponent will provide technical assistance to design and assess practical implementation options including costs, institutional roles and responsibilities, and suitability for a digital government platform. 22. Improvements in connectivity, as Samoa is experiencing, coupled with the planned rollout of the NDID, are creating opportunities for broader digital government development. In many countries, Governments operate digital platforms, inter alia to offer public services such as online facilities to apply for licenses and permits, register businesses, pay taxes etc as well as to share information such as with open data or reusable public-sector data, and run back-office systems. Governments also can stimulate usage of digital platforms in the broader digital economy by digitizing some of their own operations or processes, such as procurement, invoicing, or communications. 23. This subcomponent will support Government with a review of options and implementation approaches to develop a Samoa Digital Government Platform, addressing the following issues. MICT will provide technical guidance and oversight for this subcomponent. a. Technical foundations: “horizontal” enablers: network (government, private-where applicable), government ICT architecture, data management, cybersecurity, use of shared services (e.g. cloud whether in country or offshore), policies and standards (e.g. on hardware, software use, networking/communications), interoperability/enterprise architecture; b. Information systems (back-office): status of main government back office systems and their deployment across government; major ongoing and upcoming systems development projects related to particular use cases (e.g. govt financial management systems, health information systems, education information systems, procurement, environment/natural resources monitoring, trade facilitation etc.)—including those supported by different development partners; c. Human resources/skills: arrangements for technical support for government information systems and networks, plus high- level review of digital literacy at different levels of government; d. Private sector service provision: review and document the availability (locally and regionally) of potential digital government support services including cloud hosting, data management and systems support. 24. Key activities to be financed under this subcomponent are: a. Consultant services: on design and practical implementation options including costs, institutional roles and responsibilities and sustainability for a Samoa digital government platform Subcomponent 4 (c): Establishing the NDID system and upgrading the CR system (US$3.196 million) 25. This subcomponent will support the Samoa Bureau of Statistics to establish the National Digital ID System, consistent with the Principles on Identification for Sustainable Development, and upgrade the existing Civil Registration System, with such establishment and upgrade to be conducted in accordance with the institutional and regulatory framework established under subcomponent 4(a) of the Project and informed by the options assessment undertaken under subcomponent 4(b) of the Project. This will be achieved by: (i) providing technical assistance to develop implementation strategies and technical and functional designs; (ii) providing hardware, software, and technical support to establish an inclusive and secure National Digital ID System, including a system The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) for generating Unique Identification Numbers and other credentials, upgrade the Civil Registration System, and link the National Digital ID System with the Civil Registration System so that, at a minimum, the Unique Identification Number can be issued at the time of birth registration; (iii) developing and implementing a communications and public outreach strategy; (vi) conducting a registration campaign to include all persons in the Independent State of Samoa, aimed at populating the National Digital ID System with required data on said persons; (v) establishing procedures to facilitate the ongoing registration of persons not covered by the initial mass registration campaign, including Samoan nationals residing outside the Recipient’s territory; and (vi) establishing procedures to facilitate reliable automated identity authentication and electronic signatures of registered persons. 26. This subcomponent will finance technical and managerial assistance to design and implement the NDID system. It will also finance new software and associated hardware and support service to upgrade the CR system that is managed by SBS, as well as establishing a linkage with the NDID to exchange data on births and deaths, which will replace existing software that is more than ten years old and is at the end of its life. Modernization of the CR system is important for ensuring universal and continuous registration of births, deaths and marriages, which, through automated data exchange, also makes the NDID more accurate and efficient. In the interest of efficiency and synergy an integrated solutions provider will be procured for the development and delivery of both the NDID and CR systems. 27. This subcomponent is designed to ensure the sustainability of the investments made. For instance, the Government of Samoa will co-finance key operating costs of the NDID, including Government staff and maintenance of the Government data center and back up site, or the subscription cost for cloud hosting services—as appropriate. Furthermore, there will be capacity-building and knowledge transfer so that the responsible Government agency can continue to operate the NDID and civil registration systems beyond the contract with vendors. To reduce the risk of vendor and technology lock-in and to promote interoperability, open source software will be assessed for their feasibility in the Samoan context (e.g. the Modular Open Source Identity Platform for the NDID and Open CRVS for the CR system). 28. Key activities to be financed under this subcomponent are: a. Consultant services: technical advisor for NDID and CR implementation strategy, technical and functional requirements for bidding documents, procurement support and capacity-building for Government b. Communications strategy development and implementation (public awareness, stakeholder engagement and public consultations) c. Combined procurement of solutions to establish the NDID system and upgrade the CR systems, including hardware, software, systems integration, installation, testing and technical support d. Mass registration activities, notably SBS staff/management costs will be financed through Government counterpart funds, and incremental operating costs will be funded under the Project Revised Component 2 29. The allocation for ICT Regulatory Technical Assistance for the Office of the Regulator (OOTR) under the existing Component 2 is to be increased by US$0.031 million to enable further survey of the uptake and impact of internet services particularly in rural communities. Revised Component 3 The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) 30. The allocation for Project Management under the existing Component 3 is to be increased by US$0.255 million to cover the additional requirements associated with the restructuring, including procurement, financial management, monitoring and reporting. PDO 31. In the light of these changes it is proposed to revise the PDO to read as follows: “The Project Development Objectives are: (a) to reduce the cost and increase the availability of internet services; and (b) to facilitate the development of initial foundations for digital government, including digital identification.” Institutional and Implementation Arrangements 32. The Government of Samoa has determined the following institutional governance arrangements for the NDID system. The proposed activities to be financed under the Project under the new Component 4 will be overseen by MOF as overall Project Implementing Entity and implemented by the Samoa Bureau of Statistics (SBS). SBS is recruiting additional staff to manage the NDID program, on top of its existing mandate for CR. 33. For the longer term, other arrangements may be made for ID management and other aspects of digital government, prospectively through the planned new Digital Transformation Authority to be established under the Office of the Prime Minister. 34. In recognition of the cross-cutting nature of the NDID, its design and development will be carried out in close consultation with a steering committee comprising at a minimum the Ministry of Prime Minister and Cabinet, MOF, SBS, Ministry of Communications and Information Technology (MCIT), Ministry for Revenue, Ministry of Health, Ministry of Education, Office of the Attorney General, and the Office of the Electoral Commissioner. 35. Where practicable and appropriate, the NDID will leverage existing infrastructure (e.g. voter data held by the Office of the Electoral Commissioner, and the data center being established by MCIT or, if not practicable, using cloud services for data hosting). Performance Indicators 36. New indicators are required for Component 4. Indicators for Components 1 and 2 have also been reviewed and adjusted. The Results Matrix has been revised accordingly. 37. Component 4. For the proposed new Component 4 the following set of performance indicators are proposed and will be included in the revised Matrix a. PDO Indicators: (i) Percentage of Samoa’s population who have received their credentials from the NDID system (of whom are women and girls) – End of Project target: 80% The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) (ii) Number of institutions using the NDID system to authenticate their clients/customers – End of Project target: 5 (e.g. 1-2 banks, Money Transfer Operators, passport applications, health information system, education management information system) b. Intermediate Outcome Indicators (i) NDID law enacted (Yes/No) (ii) NDID implementation strategy (Yes/No) (iii) NDID awareness campaign and public consultations launched (Yes/No) (iv) NDID system begins enrolment (Yes/No) (v) NDID system begins authentication (Yes/No) (vi) New CR software operational (Yes/No) (vii) NDID and CR system sharing data on births and deaths (Yes/No) (viii) Government digital platform implementation options assessment completed (Yes/No) 38. Components 1 and 2. Updated performance indicators are also proposed to monitor the outcome of activities supported under Components 1 and 2 to reflect changes in technology that have impacted internet pricing structures. Internet pricing is now quoted in terms of data volume (GB) rather than speed (Mbps) (as was the case during Project preparation). The following PDO indicators can therefore no longer be measured and are proposed for deletion: a. Retail price of internet services (US$/Mbps)-including sub-indicators for business and residential prices. 39. The proposed revised PDO indicators measuring retail internet pricing are as follows: a. Retail price of internet services (lowest published price 2Gb data volume) b. Retail price of internet services-business (lowest published price 50Gb data volume) 40. In addition, OOTR wishes to measure the impact of the Tui Samoa cable in terms of uptake of internet usage. The following new intermediate outcome indicators are therefore proposed: a. Monthly volume of data downloaded--all service providers (Terabytes) b. Monthly peak data rate (speed of data download from Tui Samoa cable to all service providers in Samoa) (Mbps) 41. Project Management. The Project Management Unit (PMU) in MOF retains responsibilities for Project management and administration. 42. Procurement. The Project Management Unit (PMU) in MOF retains responsibilities for procurement. The Procurement Plan will be revised in STEP following approval of the Restructuring Paper to include the new Component 4. Advance Contracting is being used for a number of key procurement activities. The Procurement risk remains Substantial. The summary procurement plan for Component 4 is as follows (note that this does not The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) include incremental operating costs as these are non-procurable items under the Project). CONTRACT Amount (US$) Procurement Type Legal Advisory Services 500,000 CQS Technical Advisory Services 500,000 CQS ID and CR Solution Development 2,600,000 IT Supply and Installation Communications 75,000 IC Digital Government Advisory 400,000 QCBS 43. Financial Management. A financial management assessment was carried out in accordance with the “Principles Based Financial Management Practice Manual” issued by the Vice President, Operations Policy and Country Services (OPCS) on February 04, 2015 and as further elaborated on in the Bank Guidance “Financial Management in World Bank-Financed Investment Operations” issued by the Director, Operations Risk Management, OPCS on February 24, 2015. Under the Bank’s OP/BP 10.00 with respect to projects financed by the Bank, the borrower and the project implementing agencies are required to maintain financial management systems—including planning and budgeting, accounting, internal controls, funds flow, financial reporting, and auditing systems—adequate to ensure that they can provide to the Bank accurate and timely information regarding project resources and expenditures. These arrangements are deemed acceptable if they are capable of correctly and completely recording all transactions and balances relating to the project. In addition, such arrangements are acceptable if they can facilitate the preparation of regular, timely and reliable financial statements and safeguard the projects assets; and are subject to auditing arrangements acceptable to the World Bank. The restructure will add one more implementing agency to the Project so that there will now be four implementing agencies for the Project. The project’s overall financial management risk is rated as “Substantial”. The four implementing agencies are as follows: a. Component 1: Samoa Submarine Cable Company (SSCC). No change to the implementation arrangements for component 1, only a decrease in the value of component resulting from savings. The project’s financial management risk for SSCC is “Substantial”. b. Component 2: Office of the Regulator (OOTR). No change to the implementation arrangements for component 2. The project’s financial management risk for OOTR is “Substantial”. c. Component 3: Ministry of Finance (MOF). No change to the implementation arrangements for component 3, only a minor increase in the value of the component of USD250,000 (refer proposed components and costings below). The project’s financial management risk for SCC is “Moderate”. d. Component 4: Samoa Bureau of Statistics (SBS). The existing financial management systems for the SBS are assessed as adequate to the meet the financial management requirements as stipulated in OP/BP 10.00. The project's financial management risk for SBS is rated as "Substantial”. 44. Project Costs and Financing Sources. Overall costs and financing sources are unchanged as of the time of restructuring. The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) Project Financing Data (in USD Million) [ ] Loan [X] IDA Grant [ ] Guarantee [ ] Credit [ X ] Grant [ ] Other Total Project Cost: 49.94 Total Bank Financing: 16.0 Financing Gap: 0.00 . Financing Source Amount BORROWER/RECIPIENT 5.76 IDA Grant 16.00 Asian Development Bank 18.50 APIP 1.50 SSCC 8.18 Total 49.94 45. Disbursements. Two new disbursement categories, Category 4 and Category 5, have been added to finance activities under the new Part 4. Project proceeds have also been reallocated across categories. Disbursement Category 4 has been added in respect of non-consulting services, consultants’ services and Incremental Operating Costs for subcomponents 4(a), 4(b), 4(c)(i), and 4(c)(iii) of the Project. Disbursement Category 5 has been added in respect of Goods, Non-consulting services, Consultants’ services and Incremental Operating Costs for subcomponents 4(c)(ii), 4(c)(iv), 4(c)(v), and 4(c)(vi) of the Project (see Financing Agreement Schedule 2, Section IV.A.2). In accordance with Section IV.B.1(c) of Schedule 2 to the the Financing Agreement, Category 5 is subject to the following withdrawal condition to ensure that appropriate arrangements for data protection and privacy are put in place: “…no withdrawal shall be made under Category (5), until the Recipient has provided evidence satisfactory to the Association that the Recipient has enacted and given effect to laws and associated regulations that are consistent with the Principles on Identification for Sustainable Development and which establish and govern the implementation of the National Digital ID System in a manner which guarantees universal coverage and accessibility; ensures the design is robust, secure, responsive and sustainable; and mandates governance arrangements that build trust by protecting privacy and user rights.” 46. Safeguards. The proposed new activities comprise technical assistance and software development. As such, there is no proposed revision to the ISDS or the Project safeguards instruments. The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) I. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Legal Covenants ✔ Institutional Arrangements ✔ Implementation Schedule ✔ Other Change(s) ✔ Technical Analysis ✔ DDO Status ✔ Cancellations Proposed ✔ Safeguard Policies Triggered ✔ EA category ✔ Financial Management ✔ Procurement ✔ Economic and Financial Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action Ministry of Finance Implementing No Change Agency Samoa Bureau of Statistics Implementing Marked for Deletion Agency Samoa Bureau of Statistics Implementing New Agency Samoa Submarine Cable Company Implementing New Agency Office Of The Regulator Implementing New Agency OPS_DETAILEDCHANGES_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO The Project development objective is to reduce the cost and increase the availability of Internet services in theIndependentStateof Samoa. Proposed New PDO The Project Development Objectives are: (a) to reduce the cost and increase the availability of internet services; and (b) to facilitate the development of initial foundations for digital government, including digital identification. OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 4 (a) ): Legal and 0.00 New regulatory enabling 0.50 environment Component 4 (b) Advisory 0.00 New Assistance on a Samoa Digital 0.40 Government Platform Component 4 (c): Establishing 0.00 New the NDID system and 3.20 upgrading the CR system Component 1 (a) Submarine Component 1 (a) Submarine 37.38 Revised 33.00 Cable System Cable System The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) Component 1 (b) Landing Component 1 (b) Landing 2.85 No Change stations and ancillary 2.85 stations and ancillary requipment requipment Component 1(c) Additional Component 1(s) Additional costs 7.41 Revised 7.41 costs Component 2. ICT Regulatory Component 2. ICT Regulatory 1.44 Revised 1.47 Technical Assistance Technical Assistance Component 3. Project Component 3. Project implementation and 0.86 Revised implementation and 1.11 administration administration TOTAL 49.94 49.94 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-D0630 Effective 31-Jul-2020 30-Jun-2022 30-Oct-2022 TF-A2332 Effective 31-Jul-2020 31-Jul-2020 30-Nov-2020 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-D0630-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GO,WO,Non-CS,CS for P1(a) 10,150,000.00 6,969,281.98 6,975,000.00 43.00 43.00 iLap Category Sequence No: 2 Current Expenditure Category: GO,Non-CS,CS,TR for P2 910,000.00 541,139.80 932,500.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: GO,Non-CS,CS,IOC for P3 540,000.00 337,130.64 725,000.00 100.00 100.00 The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) Current Expenditure Category: Non-CS,CS and IOC for P4(a), 4(b), 4(c)(i), and iLap Category Sequence No: 4 4(c)(iii) 0.00 0.00 650,000.00 100 Current Expenditure Category: GO, Non-CS, CS and IOC for P4(c)(ii), 4(c)(iv), iLap Category Sequence No: 5 4(c)(v), and 4(c)(vi) 0.00 0.00 2,317,500.00 100 Total 11,600,000.00 7,847,552.42 11,600,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2015 0.00 0.00 2016 1,600,000.00 1,600,000.00 2017 6,000,000.00 6,000,000.00 2018 6,400,000.00 3,800,000.00 2019 2,000,000.00 600,000.00 2020 0.00 1,000,000.00 2021 0.00 1,250,000.00 2022 0.00 1,500,000.00 2023 0.00 250,000.00 OPS_DETAILEDCHANGES_SORT_TABLE SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating at Approval Current Rating Political and Governance  Moderate  Moderate Macroeconomic  Moderate  Moderate Sector Strategies and Policies  Moderate  Moderate Technical Design of Project or Program  Substantial  Moderate The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) Institutional Capacity for Implementation and  Substantial  Moderate Sustainability Fiduciary  High  Substantial Environment and Social  Low  Moderate Stakeholders  Substantial  Substantial Other  Substantial  Substantial Overall  Substantial  Substantial OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Finance Agreement :Project management | Description :The Recipient shall appoint, by not later than three months after the Effective Date, and thereafter maintain throughout the period of Project implementation, a Project manager, within the Ministry IDA-D0630 Complied with No Change of Finance, with qualifications and experience and under terms of reference acceptable to the Association, to be responsible for supporting Project implementation. [FA Schedule 2 Section I.A.3] | Due Date :14-Dec-2015 Finance Agreement :Open Access to International Connectivity Infrastructure | Description :The Recipient shall take all measures to ensure that OoTR, shall, by not later than 3 months after the Effective Date and pursuant to Part VI of the Telecommunications Act ... IDA-D0630 Complied with No Change ensure that all international submarine fiber optic infrastructure in its territory shall be subject to independent regulation which guarantees open access .. on a cost based and nondiscriminatory basis[FA Sched 2, Sect IC]. | Due Date :14-Dec-2015 Finance Agreement :Proposed structure and implementation arrangements for SSCC | Description IDA-D0630 :The Recipient shall, by not later than 6 months after Complied with No Change the Effective Date, obtain & submit..an independent appraisal of the proposed structure for SSCC, including The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) ownership, financing & governance arrangements, business model, divestiture arrangements (including asset valuation) & the mechanism for ensuring financial equilibrium in the interests of users of ICT services...[FA Schd 2, Sect I.B.1(a)] | Due Date :14-Mar-2016 Finance Agreement :Binding offer for the private sector to participate in SSCC | Description :The Recipient shall, by not later than nine months after the Effective Date, issue a binding offer to sell shares in, or otherwise IDA-D0630 Complied with No Change provide for private sector involvement in the financing of, SSCC, all in an amount and in a manner satisfactory to the Association. [FA Schedule 2, Section I.B.1(b)] | Due Date :14-Jun-2016 Finance Agreement :Establishment and operationalization of SSCC | Description :The Recipient shall, by not later than 12 months after the Effective Date, ensure that SSCC is established & made operational, including adoption of by-laws, articles of IDA-D0630 Complied with No Change association, shareholders agreement & related contractual instruments for the financing & operation of SSCC, in conformity with the Recipient’s Laws, all in form & substance acceptable to the Association [FA Sch 2, Sect I.B.1(c)]. | Due Date :14-Dec-2017 Finance Agreement :Reference Interconnection Offer | Description :The Recipient shall, by not later than 12 months after the Effective Date, ensure that SSCC is established & made operational, including adoption of by-laws, articles of association, shareholders agreement IDA-D0630 Complied with No Change & related contractual instruments for the financing & operation of SSCC, in conformity with the Recipient’s Laws, all in form & substance acceptable to the Association [FA Sch 2, Sect I.B.1(c)]. | Due Date :30-Sep- 2016 IDA-D0630 Financing Agreement: No disbursement shall be made Not yet due New under Category (5), until the Recipient has provided evidence satisfactory to the Association that the Recipient has, consistent with the ID Principles, enacted The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) and given effect to laws and regulations for the National ID System. [FA Schedule II, Section IV.B.1(c)] Financing Agreement: The Recipient shall establish, by no later than October 31, 2019, and maintain until the IDA-D0630 Not yet due New Closing date, the NDID Steering Committee. [FA . Schedule II, Section I.A.2] The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) . Results framework COUNTRY: Samoa WS: Pacific Regional Connectivity Program: Phase 3 - Samoa Project Development Objectives(s) The Project development objective is to reduce the cost and increase the availability of Internet services in theIndependentStateof Samoa. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Impact on Telecom sector of WB Technical Assistanceomposite score:1- low impact to 5-high impact) Impact on Telecom sector of World Bank TA to OOTR (composite score: 1- low 1.00 2.00 2.00 3.00 4.00 5.00 5.00 impact to 5-high impact) (Number) Access to Internet Services (number of subscribers per 100 people) (Action: This Objective has been Revised) Access to Internet Services (number of subscribers per 27.00 28.00 29.00 35.00 45.00 55.00 55.00 100 people) (Number) Retail price of internet services (lowest published 16.00 10.00 8.00 5.00 price 2Gb data volume) (Amount(USD)) Rationale: Action: This indicator is Internet pricing is now volume based rather than speed based. New The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Retail price of internet services-business (lowest 80.00 60.00 40.00 30.00 published price 50Gb data volume) (Amount(USD)) Rationale: Action: This indicator is Internet bandwidth pricing now measures in volume rather than speed. New Retail Price of Internet Services (per Mbit/s per Month, in US$) (Action: This Objective has been Marked for Deletion) Retail Price of Internet Services (per Mbit/s per 11.00 2.00 Month, in US$) (Amount(USD)) Action: This indicator has been Marked for Deletion Retail Internet price--business services (Action: This Objective has been Marked for Deletion) Retail Internet price-- business services 630.00 630.00 500.00 450.00 400.00 300.00 100.00 (Amount(USD)) Action: This indicator has been Marked for Deletion Direct Project Beneficiaries Direct Project beneficiaries. 0.00 96,000.00 (Number) Project beneficiaries 0.00 48,000.00 (female) (Number) Action: This indicator is New The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Retail Price of Internet services - residential. (Action: This Objective has been Marked for Deletion) Retail Price of Internet Services - residential 43.00 19.00 (Amount(USD)) Action: This indicator has been Marked for Deletion Grievances registered related to delivery of project benefits addressed. Grievances registered related to delivery of 0.00 80.00 project benefits addressed. (Percentage) Grievances related to delivery of project benefits that are addressed. (Action: This Objective has been Marked for Deletion) Grievances related to delivery of project benefits 0.00 0.00 that are addressed. (Number) Action: This indicator has been Marked for Deletion Beneficiaries that feel project investments reflected their needs. (Action: This Objective has been Marked for Deletion) Beneficiaries that feel project investments 0.00 75.00 reflected their needs. (Percentage) Action: This indicator has been Marked for Deletion Female Beneficiaries. (Action: This Objective has been Marked for Deletion) The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Female Beneficiaries 0.00 50.00 (Percentage) Action: This indicator has been Marked for Deletion Beneficiaries that feel project investment reflected their needs - female. Beneficiaries that feel project inv. reflected their 0.00 36,000.00 needs - female. (Number) Total beneficiaries - female. (Action: This Objective has been Marked for Deletion) Total beneficiaries - female. 0.00 48,000.00 (Number) Action: This indicator has been Marked for Deletion Total beneficiaries - male. (Action: This Objective has been Marked for Deletion) Total beneficiaries - male. 0.00 48,000.00 (Number) Action: This indicator has been Marked for Deletion Beneficiaries that feel project investment reflected their needs - male. Beneficiaries that feel project investment 0.00 36,000.00 reflected their needs - male. (Number) Wholesale Internet Bandwith Price ($/Mbps/month) Wholesale Internet 1,500.00 400.00 Bandwith Price The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 ($/Mbps/month) (Amount(USD)) Available International Bandwidth (mbps) Available International Bandwidth (mbps). 250.00 3,000.00 (Number) Coverage of the NDID system (Action: This Objective is New) Percentage of Samoa’s resident population who have received their 0.00 0.00 25.00 80.00 credentials from the NDID system (Percentage) Action: This indicator is New Population who have received their credentials from the NDID system of 0.00 0.00 25.00 50.00 whom are women and girls (Percentage) Action: This indicator is New The NDID system is used for service delivery (Action: This Objective is New) Number of institutions using the NDID system for automated identity 0.00 1.00 2.00 5.00 authentication of their clients (Number) The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Component 1 (a) Submarine Cable System Length of Fiber Optic Network Built (km) 0.00 0.00 0.00 0.00 0.00 0.00 1,300.00 (Kilometers) Component 1 (b) Landing stations and ancillary requipment Private Capital Mobilized 0.00 2,500,000.00 2,500,000.00 3,000,000.00 0.00 0.00 8,000,000.00 (Amount(USD)) Component 3. Project implementation and administration National installed data 0.00 48,000.00 capacity (Number) Available (lit optical and contracted satellite) 250.00 3,000.00 International Bandwidth (mbps) (Number) Monthly volume of data downloaded--all service 650.00 750.00 950.00 1,250.00 providers (Terabytes) (Number) The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Rationale: Action: This indicator is This measures the extent of utilization of internet bandwidth across the Samoan market. New Monthly peak data rate (speed of data download from Tui Samoa cable to all 4.00 5.00 6.00 7.00 service providers in Samoa) (Mbps) (Number) Rationale: Action: This indicator is This measures the speed of data download from the Tui Samoa cable to all service providers in Samoa New Component 4 (a) Legal and regulatory enabling environment (Action: This Component is New) Law establishing National Digital ID System is enacted No No Yes (Yes/No) Action: This indicator is New Component 4 (b) Advisory Assistance on a Samoa Digital Government Platform (Action: This Component is New) Government digital platform implementation No No Yes options assessment completed (Yes/No) Rationale: Action: This indicator is Measures progress in technical assistance provision New Component 4 (c): Establishing the NDID system and upgrading the CR system (Action: This Component is New) The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 NDID implementation strategy developed No Yes (Yes/No) Action: This indicator is New NDID awareness campaign and public consultations No Yes Yes launched (Yes/No) Action: This indicator is New NDID system enrollment No No Yes begins (Yes/No) Action: This indicator is New NDID system begins automated authentication No No Yes (Yes/No) Action: This indicator is New New civil registration software is operational No No Yes (Yes/No) Action: This indicator is New NDID and CR systems sharing data on births and No No No Yes deaths (Yes/No) The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator is New IO Table SPACE The World Bank WS: Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904)