The World Bank KI: Telecommunications and ICT Development Project (P126324)

Transcription

1 Public Disclosure Authorized EAST ASIA AND PACIFIC Kiribati Transport & ICT Global Practice IBRD/IDA Technical Assistance Loan FY 2013 Seq No: 8 ARCHIVED on 23-Mar-2017 ISR27153 Implementing Agencies: Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:26-Jul-2012 Planned Mid Term Review Date:-- Original Closing Date:30-Jun-2017 Project Development Objectives Effectiveness Date:09-Nov-2012 Actual Mid-Term Review Date:-- Revised Closing Date:30-Jun-2017 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The proposed Project development objective is: to strengthen the legal, regulatory and institutional environment, enabling transition to a marketdriven telecommunications sector and facilitating improved connectivity for the Outer Islands. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name ICT Policy and Legal Support:(Cost $1.20 M) Public Disclosure Authorized ICT Regulatory Support:(Cost $1.20 M) Outer Islands Connectivity:(Cost $2.00 M) Project Management:(Cost $0.60 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate 3/23/2017 Page 1 of 11

2 Implementation Status and Key Decisions 1. Overall implementation progress is satisfactory and key elements of the sector reform and institutional development program have been completed while others are underway. As of December 31, 2016, 72 percent of IDA Grant proceeds, and 46 percent of Australian and New Zealand Grant funds (channeled through the Pacific Region Infrastructure Facility (PRIF) trust fund) had been disbursed. 2. ICT Policy and Legislation. The Ministry of Information, Communications, Transport and Tourism Development ( MICTTD) has progressed a review of the 2012 Telecommunications Policy identifying and detailing new policy initiatives for the broader ICT sector, e.g., cyber-security, privacy, ecommerce, e-government, disaster information management and broadcasting (including spectrum, digitalization, delivery and content regulation). Impacts of the separate project to establish an optical fibre cable to Kiribati are not yet incorporated into the policy but the Government intends to ensure that this is additionally incorporated. Completion of this policy review is pending recruitment of an outside policy specialist to review and assist finalization. Upon finalization, an updated policy is to be presented to Cabinet in Q1, MICCTD has recruited a new Senior ICT Officer, and is in the process of recruiting an additional ICT officer. The main tasks of this team will be to finalize the new ICT Policy and also prepare a strategy for ICT in Government including E-Government issues. Separately, the Government has reviewed and amended the existing Telecommunications Act to correct a number of editing and other minor errors that were in the original Act. 3. Privatization. The sale of most of the assets of the incumbent operator, Telekom Services Kiribati Ltd (TSKL) to Amalgamated Telecom Holdings (ATH) Fiji was completed in May ATH-KL operations are now well established and service quality and reliability is much improved. Prices are generally lower although they now include a VAT. The improved service quality and new billing structures are however causing some consumer cost management issues. 4. New Market Entry. A new international telecommunications service provider, Ocean Links, has been awarded telecommunications and business licenses; commenced operations early in There are network development issues which are limiting expansion of services. 5. Regulatory reforms. The CCK Phase 1 work program (now completed) addressed key regulatory priorities. CCK s mandate has now increased given the liberalization of the telecommunications market. CCK has proposed two extensions of support focused on the introduction of the competitive supply of services; (a) recruitment of a support firm for 18 months to assist with economic and technical issues and matters as they arise, and; (b) recruitment of an interconnection specialist to assist review of the ATH proposed interconnection and access to facilities regime for Kiribati. Both recruitments are to be completed by April Outer Islands Connectivity (Component 3). The Government has reiterated its commitment to Outer Islands Connectivity as a high national priority on the basis of establishing a public private partnership (PPP) between the operators and the Government. The PPP approach now supersedes an earlier universal access (UA) plan devised in early 2015 (which CCK are continuing in some aspects). This PPP approach which is to be defined in concert with the operators and their expressed needs, could also establish backbone transmission that could support direct services to island schools, clinics, Island Council offices and, if appropriate and sustainable, public access facilities. The concept of a PPP and shared infrastructure is now being progressed as there are parties in place with which to form a PPP, all of which are prospective users of the infrastructure. This will ensure that; (1) all aspects of the scheme, including technical, financial, governance and legal arrangements, can be designed and specified to align with operator / user needs; and (2) that the private sector is committed to using the network on agreed terms and the private sector. Under the envisaged PPP, Government would contribute assets, land and facilities access, and some capital costs and operating costs. Prior agreement with the private sector for the use of the network is key to success of the concept. Precise terms and relevant party contributions are to be explored and addressed under the contract. Government may contribute the existing assets or build as necessary with other parties to maintain and operate relevant facilities on Outer Islands. Private sector operator(s) could use such facilities (on access terms determined by the PPP) in order to supply ICT services on agreed terms for a prescribed minimum time period. Government has determined under its National ICT Policy that it should no longer have a direct operational or financial role in the supply of ICT services to end-users. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Moderate Moderate 3/23/2017 Page 2 of 11

3 Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Moderate Moderate Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other Overall -- Moderate Moderate Results Project Development Objective Indicators PHINDPDOTBL Improved ICT policymaking capacity (Text, Custom) Basic ICT policy in place. Limited ICT policy capacity at MCTTD. National Policy 2 is under review (Broadband, Policy, Universal Access and Cyber Security in draft) National Policy 2 is under review (Broadband, Policy, Universal Access and Cyber Security in draft) Policy capacity in MCTTD, reflecting training Date 12-Jun May Dec Jun-2017 National Policy 2 is in review. (Broadband Policy, universal access and cyber security in draft). Policy Specialist adviser recruited and completed engagement. Policy Analyst appointed Dec National Policy 2 completed with incorporation of Broadband Policy, UA and cyber security. This now needs a TA for review and finalization, possibly including submarine cable connectivity. PHINDPDOTBL Legal and regulatory framework more effective at delivering sector performance (Text, Custom) Telecommunications Act 2004 and associated instruments in need of CCK will implement the programme under the UA plan - 2 islands with CCK will implement the programme under the UA plan - 2 islands with Regulations enforced and updated 3/23/2017 Page 3 of 11

4 revision. secondary schools will be targeted for this year secondary schools will be targeted for this year Date 12-Jun May Dec Dec-2017 CCK implement the UA plan; 2 islands with secondary schools will be targeted for 2017 CCK seeking other regulatory skills e.g. Interconnection, facilities access and wider regulatory skills. Current CCK regulatory program completed. Future work includes Consumer Protection and pricing rules and enforcement is on-going Consumer Protection awareness program on South Tarawa completed by roadshow on different part of South Tarawa villages. Compliance & Monitoring of existing rules and spectrum management ongoing UA Committee operational, a UA Plan based on PPP and implementation arrangements in development for Outer islands. A firm has been recruited to develop the PPP structure and a framework for the implementation of Outer Island mobile and internet services. CCK is implementing program 2 of its UA plan that was approved by UA Committee. *Note - the end target date for this has been updated to reflect the updated closing date. PHINDPDOTBL Increase penetration of mobile telephones and Internet, including number of direct beneficiaries (% of population, of which 53% female) (Percentage, Custom) Date 12-Jun May Dec Jun-2017 Mobile penetration December 2016 = 52,000 active subscribers. Coverage now reaches 88% of population. PHINDPDOTBL Increase penetration of mobile telephones and Internet in Outer Islands (Percentage, Custom) Date 12-Jun May Dec Jun /23/2017 Page 4 of 11

5 O/I phones are 2G or 3G. Customer numbers are estimates only as O/I phones are not separately identifiable. 2G on O/I has been upgraded to 3G except Onotoa. 2G Mobile connection has been installed on another O/I (Abemama). Outer islands component will be completed by June 30, 2019; end target date has been revised. Overall Intermediate Results Indicators Component 1: Policy-making capacity established and working (Text, Custom) Basic ICT policy in place. Limited ICT policy capacity ATH (Fiji) successful bidder 31 March ATH (Fiji) successful bidder 31 March Policy-making capacity established and working Date 12-Jun Aug Aug Jul-2015 Component 1: Preferred option for reforming TSKL adopted by Government (Text, Custom) None TSKL transformation strategy fully implemented. TSKL transformation strategy fully implemented. Preferred option for reforming TSKL adopted by Government Date 12-Jun Dec Dec Aug-2014 ATHKL operate their own system on their new equipment (switch). Sale of TSKL Tarawa and Kiritimati assets completed 26 May ATHKL established to operate assets & rebuild network. ATHKL installed 4G on Tarawa and also has upgraded O/I 2G network to 3G. Implemented new 2G mobile system on Abemama (O/I). 3/23/2017 Page 5 of 11

6 Component 2: Licensing regime in place (Text, Custom) Licensed new entrant: Ocean Links Licensing regime not developed (5 licensed Service Providers namely: ATHL, WIS, Ocean Links, Speedcast and Tenicom) Six individual and twelve class licensees Licensing regime in place Date 12-Jun May Dec Jul-2015 Licensing regime operational Pintech was issued with an individual license early 2016 Component 2: Spectrum management plan adopted (Text, Custom) None. Spectrum Monitoring equipment available and monitoring activity is developing Management system is now in place. Software has been purchased but need more training on the system. Spectrum management plan adopted Date 12-Jun May Dec Jul-2015 Regime defined. Spectrum allocation and Management system (e.g. SMS4DC) yet to be developed. Staff are trained on how to allocate spectrum and requests for spectrum from service providers are being met. Spectrum monitoring skills still required. Spectrum allocation and management system is now in place. 3/23/2017 Page 6 of 11

7 Component 2: Numbering plan adopted (Text, Custom) None. ATHKL is moving to 8 digits ATHK is moving to 8 digits for fixed services Numbering plan adopted Date 12-Jun May Dec Jan-2016 The fixed service eight digit plan is beginning for new customers. Fixed customers moved to Wireless Fixed had adopted 8 digits. Component 2: Interconnection regime adopted (Text, Custom) None Interconnection and access rule in draft status Interconnection and access rule is in draft status Interconnection regime adopted Date 12-Jun May Dec Apr-2017 Application of Interconnection Rules for new entrant in work. ATHKL has supplied proposed RIO that will be reviewed with help of contracted specialist. 3/23/2017 Page 7 of 11

8 Component 2: Dispute and mediation procedures in place (Text, Custom) None Pending next phase of regulatory instruments. May be developed via retained specialist firm. Mediation process still needs to be in place. Consumer Protection Rules finalized in August 2016 Dispute and mediation procedures in place Date 12-Jun May Dec Jan-2016 There is a mechanism on how to handle consumer complaints or other disputes that may arises from time to time. Disputes that have been raised on consumer complaints on prices have been resolved. Component 2: Award of other telecommunications licenses (Number, Custom) Date 12-Jun Aug Dec Jul-2017 CCK has recently licensed a new competitor (Ocean Link) and issued 12 class licenses. Component 2: Internet broadband (minimum 256Kbps) subscribers (% of population) (Percentage, Custom) Date 12-Jun Aug Dec Jun-2019 ATHKL is offering mobile Internet services only. Tenicom offering Wifi based Internet. Download speeds subject to users online at any time but typically better than 256 Kbps. User base = 75% of Mobile plus Tenicom subscribers. *Note - this will be completed by June 30, 2019; end target date has been revised. 3/23/2017 Page 8 of 11

9 Component 2: Number of direct beneficiaries (including % female) (Number, Custom) , , , Date 12-Jun May Dec Jun-2019 Total subscribers of fixed, mobile and internet services. Total subscribers for fixed, mobile and internet services as at end of Dec 2016 about 53,000 Component 3: Mobile penetration in Outer Islands (% population) (Percentage, Custom) Date 12-Jun Aug Dec Jun census Outer Island population has increased to about 50,000, still calls could not be identified as all consolidation with South Tarawa calls. *Note - this will be completed by June 30, 2019; end target date has been revised. 3/23/2017 Page 9 of 11

10 Component 3: Internet penetration in Outer Islands (% population) (Percentage, Custom) Date 12-Jun May Dec Jun-2019 Outer Is access to Internet is through telecentres. Individual services pending WiFi / 3G rollout. ATH has upgraded O/I 2G to 3G(Abemama) has 2G mobile and they can access internet through this service. *Note - this will be completed by June 30, 2019; end target date has been revised. Overall Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IDA-H7800 Effective USD % P TF 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-H7800 Effective 26-Jul Sep Nov Jun Jun-2017 P TF Effective 20-Jan Feb Mar Dec Jun-2017 Cumulative Disbursements 3/23/2017 Page 10 of 11

11 Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 3/23/2017 Page 11 of 11