The World Bank Caribbean Regional Communications Infrastructure Program (P114963)

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1 Public Disclosure Authorized LATIN AMERICA AND CARIBBEAN Caribbean Transport & ICT Global Practice IBRD/IDA Adaptable Program Loan FY 2012 Seq No: 10 ARCHIVED on 18-Oct-2017 ISR29473 Implementing Agencies: Government of Grenada, Ministry of Finance & Energy, Caribbean Telecommunications Union (CTU), Government of St. Lucia, Government of St. Vincent and the Grenadines Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:22-May-2012 Planned Mid Term Review Date:08-Jun-2015 Original Closing Date:01-Feb-2017 Project Development Objectives Effectiveness Date:11-Dec-2012 Actual Mid-Term Review Date:15-Jun-2015 Revised Closing Date:01-Aug-2018 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The development objective of CARCIP is to increase access to regional broadband networks and advance the development of an ICT-enabled services industry in the Caribbean Region. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1 - Regional Connectivity Infrastructure:(Cost $12.57 M) Public Disclosure Authorized Component 2 - ICT-led innovation.:(cost $7.51 M) Component 3 - Implementation Support:(Cost $1.92 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 Moderate Moderate 10/18/2017 Page 1 of 13

2 Implementation Status and Key Decisions This ISR represents the findings of the Implementation Support Missions carried out from June 1 August 16, 2017, and subsequent developments. Implementation Performance: Given the stable implementation pace and progress toward the award of the Broadband contract the implementation performance of the overall project rating is maintained at Moderately Satisfactory (MS). The ratings vary among the countries and CTU, with implementation performance rated Satisfactory (S) for both St. Lucia and Caribbean Telecommunications Union (CTU), and MS for both Grenada and St. Vincent and the Grenadines (SVG). Upon the signing of Broadband contracts by all three countries (expected in December 2017), the contract commitment rate across all 3 countries will rise to over approximately 95% and at that time ratings could be considered for an upward revision. This would be the Caribbean s first regional (three country), PPP-based infrastructure program. The participating governments have invested many years and significant resources coming to this point in the broadband network tender. Once signed, the CARCIP broadband network tender will be viewed as a model for pooled PPP infrastructure investment. It will require approximately US $ 9 million in borrowers upfront contributions to leverage approximately US $ 40 million in private capital. Hence, while the regional broadband PPP tender has taken far longer than anticipated to complete, the collaborative and pooled procurement process between the countries has been shown to result in significant savings and the potential of far higher quality and more cost efficient than could be expected under separate national level procurements will soon be determined. There has been notable progress recently in several areas. These include the completion of contract negotiations of the Broadband PPP, last call for business incubation grants across all three countries, the completion of trainings in St. Lucia and preparations underway for the last call of ICT training grants in SVG and Grenada. The regional activities administered by the CTU are fully on track for completion and have produced many important regional studies and guidelines for Public Private Partnerships (PPPs), ITES regional strategy is underway, and Open Access Policy and other regulatory assessments and technical assistance. CTU has also been playing a very important regional coordination and information sharing function related to ICT skills training/certifications between both the CARCIP Phase I countries and the wider CTU regional membership. Rating for achievement of PDO: In light of the steady progress toward meeting the indicator targets for which activities are sufficiently advanced (e.g. trainings and incubates) to generate impact and likelihood of achieving the targets, the rating for achievement of the project development objective is maintained at Moderately Satisfactory. Country Level Details: St LuciaTotal disbursements have risen from US$3.529 million (as of September, 2016), to US$4.268 million or 71% of project funds (as of June, 2017). Total signed commitments are approximately US $4.242 or 71% of project funds over the same period. Key achievements since the last mission include Cabinet s approval on June 12, 2017 to begin negotiations of the Broadband Network contract with Digicel, completion of negotiations in mid- August, full acceptance of the Unified Communications System (UCS) with significant cost savings on Government s overall monthly telecom spend, and completion/award of all remaining business incubation and training grants (i.e. completion of Component 2 - ICT Led Innovation). Key achievements to date include the award of 21 business incubation grants with eight of the grantees being female beneficiaries, and a total of 728 persons trained under the program of which 382 are certified. 27 contracts awarded for training and certification were completed. NSDC completed soft skills and traineeship for 20 technical classes, and 600 graduates were recognized in a ceremony held in December Given the key achievements made since the last mission as noted above, the implementation performance of the project rating is maintained at Satisfactory. Considering the progress made towards meeting the indicator targets for which activities are sufficiently advanced to generate impact and likelihood of achieving the remaining targets after the broadband network tender buildout, the rating for achievement of the project development objective is maintained as Satisfactory. GrenadaTotal disbursements remain unchanged from the previous mission (November 2016) at US$2.29 million, or 23% of project funds as of July, Total project expenditures have risen from US$1,315,545 to US$1,957,778 over the same period. Total signed commitments have risen significantly from US$2.5 million to US$3.9 million (an increase of approximately 56%. Key achievements since the last mission include Cabinet s endorsement to begin negotiations of the Broadband Network contract with Digicel, completion of negotiations in mid- August, preparation of new training modules in animation, medical, full stack web design, and ICT for public servants to be advertised over the next three months, and final call for business incubation grants that resulted in over 88 applications at an estimated value of 3x s the budgeted amount. The award of 21 business incubation grants to date with five of the grantees being female beneficiaries, and a possible additional 32 in the final call of grant awards. Given the stable implementation pace and progress toward the award of the Broadband contract the implementation performance of the project rating is maintained at Moderately Satisfactory (MS). In light of the steady progress toward meeting the indicator targets for which activities are sufficiently advanced (e.g. trainings and incubates) to generate impact and likelihood of achieving the targets, the rating for achievement of the project development objective is maintained at Moderately Satisfactory. St. Vincent and the GrenadinesTotal disbursements have significantly increased since the previous aide memoire (November 2016) at US$ 2,562,861, or an increase of 26% and representing 43% of project funds at July Total signed commitments have risen significantly to US $2,724,780 or 10/18/2017 Page 2 of 13

3 18%. Key achievements since the last mission include Cabinet s approval on May 24, 2017 to begin negotiations of the Broadband Network contract with Digicel, completion of contract negotiations in mid-august, increase in number of ICT trainees from approximately 200 to 363 in a number of basic and advanced ICT skills including networking, security, Web Page Design, Mobile Application Development and Computer Application for Office at an approximately 31 % female participation rate. The last call for business ICT trainings was issued given the limited level of funds remaining in the program procurement plan. The business incubation program has been operating within the Centre of Excellence (COE) since May Two Calls were made resulting in the awarding of grants to sixteen (16) businesses receiving incubation support under the project, ten (10) residential and six (6) virtual. The last (and final) call for grantees resulted in 14 applications of which only approximately 10 are expected to be funded, given the limited funds remaining in the procurement plan. Given the stable implementation pace and progress toward the award of the Broadband contract the implementation performance of the project rating is maintained at Moderately Satisfactory (MS). In light of the steady progress toward meeting the indicator targets for which activities are sufficiently advanced (e.g. trainings and incubates) to generate impact and likelihood of achieving the targets, the rating for achievement of the project development objective is maintained at Moderately Satisfactory. Caribbean Telecommunications Union (CTU)Total disbursements have risen from US$ 1,805,066 or approximately 60% of project funds at the time of the previous Aide Memoire (November 2016) to US$2,305,084 or approximately 77% of project funds (as of May 2017). Total signed commitments have increased to US$ 2,428,369 representing 81% of project. Key achievements since the previous aide memoire include completion of the ECTEL technical assistance and related deliverables. Additionally, successful launch of the PPP Broadband Advisory consultancy and completion of one of the two scheduled workshops/trainings, facilitating and providing technical assistance to the country teams toward finalizing the regional broadband network contract. Given the continued implementation progress and the rise in expenditures and disbursements, the implementation performance rating is maintained at Satisfactory. The rating for achievement of the project development objectives is also maintained at Satisfactory given the prospects for successful completion and impact of the activities underway. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Low Low Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other Overall -- Moderate Moderate Results Project Development Objective Indicators 10/18/2017 Page 3 of 13

4 Regional Grant: Policies developed for PPP and Open Access (Number, Custom) Value Regional Grant: Coordinated activities in network and ICT-led innovation (Number, Custom) Value Regional Grant: Regional regulations for Open Access (Number, Custom) Value IT/ITES employment (Number, Custom) Value , IT/ITES employment - St. Vincent and the Grenadines (Number, Custom Breakdown) Value /18/2017 Page 4 of 13

5 Date 22-May Sep Jul Aug-2018 IT/ITES employment - Saint Lucia (Number, Custom Breakdown) Value IT/ITES employment - Grenada (Number, Custom Breakdown) Value Businesses receiving Support through the project (Number, Custom) Value Businesses receiving Support through the project - Saint Lucia (Number, Custom Breakdown) 10/18/2017 Page 5 of 13

6 Value Businesses receiving Support through the project - St. Vincent and the Grenadines (Number, Custom Breakdown) Value Businesses receiving Support through the project - Grenada (Number, Custom Breakdown) Value Direct project beneficiaries, (% of which are female) (Number, Custom) Value , , , Direct project beneficiaries - St. Vincent and the Grenadines (Number, Custom Breakdown) 10/18/2017 Page 6 of 13

7 Value , Percentage of which are female (Percentage, Custom Supplement) Value Direct project beneficiaries - Saint Lucia (Number, Custom Breakdown) Value , , , Percentage of which are female (Percentage, Custom Supplement) Value Direct project beneficiaries - Grenada (Number, Custom Breakdown) 10/18/2017 Page 7 of 13

8 Value , , , Percentage of which are female (Percentage, Custom Supplement) Value Overall Comments Intermediate Results Indicators People trained under the project in gainful ICT employment (Number, Custom) Value Date 22-May Sep Sep Aug-2018 People trained under the project in gainful ICT employment - Grenada (Number, Custom Breakdown) Value /18/2017 Page 8 of 13

9 People trained under the project in gainful ICT employment - Saint Lucia (Number, Custom Breakdown) Value People trained under the project in gainful ICT employment - St. Vincent and the Grenadines (Number, Custom Breakdown) Value People trained under the project (Number, Custom) Value , , Date 22-May Sep Sep Aug-2018 People trained under the project - Grenada (Number, Custom Breakdown) Value /18/2017 Page 9 of 13

10 People trained under the project - Saint Lucia (Number, Custom Breakdown) Value , People trained under the project - St. Vincent and the Grenadines (Number, Custom Breakdown) Value , Number of public buildings/facilities connected to networks under the project (Number, Custom) Value Number of public buildings/facilities connected to networks under the project - St. Vincent and the Grenadines (Number, Custom Breakdown) Value Date 22-May May Aug Aug /18/2017 Page 10 of 13

11 Number of public buildings/facilities connected to networks under the project - St. Lucia (Number, Custom Breakdown) Value Date 22-May May Aug Aug-2018 Number of public buildings/facilities connected to networks under the project - Grenada (Number, Custom Breakdown) Value People certified after training under the project (Number, Custom) Value People certified after training under the project - St. Vincent and the Grenadines (Number, Custom Breakdown) Value /18/2017 Page 11 of 13

12 People certified after training under the project - Saint Lucia (Number, Custom Breakdown) Value People certified after training under the project - Grenada (Number, Custom Breakdown) Value Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IDA Effective USD % P IDA Effective USD % P IDA Effective USD % P IDA-H7720 Effective USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P IDA Effective 22-May Jun Dec Feb Aug-2018 P IDA Effective 22-May Jun Dec Feb Aug /18/2017 Page 12 of 13

13 P IDA Effective 22-May Jun Sep Feb Aug-2018 P IDA-H7720 Effective 22-May Jun Apr Feb Aug-2018 Cumulative Disbursements Restructuring History Level 2 Approved on 24-May-2016 Related Project(s) There are no related projects. 10/18/2017 Page 13 of 13

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