In access, the World Bank, IFC, and MIGA ought to:
(iii) Support catalytic public- private partnership investments to accelerate the rollout of regional and national backbone infrastructure.
(iv) Identify and support effective approaches to promote access to the underserved, building on their experience with targeted interventions in other areas.
Regional communications infrastructure and backbone projects have been highly complex and have suffered delays. As the World Bank continues to extend this type of project, it should continue to draw lessons from the implementation of these programs and incorporate these lessons into the design of any future operations. Targeted efforts to increase access beyond what was commercially viable have largely been unsuccessful. Gaps in broadband and Internet access, in the context of overall expansion of coverage, argue for a selective role in supporting private investments in difficult environments. Expanding access beyond what market players would provide on a commercial basis (for example, by using public-private partnership approaches) should remain an important priority. Because many countries are faced with unused amounts in their universal service funds, the effectiveness of World Bank support has been quite limited. Amid the major setbacks of these operations, the Bank-supported programs in Chile, Mongolia, Pakistan, and Uganda and the use of public private partnerships provide encouraging examples that these mechanisms could work. Based on the experience with universal service policies, future Bank support in this area needs to be reexamined. As mobile service is becoming ubiquitous and demand for Internet access is increasing, several countries are adopting broadband subsidy programs. Given the record so far, the Bank needs to examine its experience before engaging in these programs and incorporate the lessons of experience with universal access funds.
Original Response: Management agrees with the recommendation, which is at the core of the upcoming Sector Strategy. The Bank Group has been responsive to growing demand to provide technical assistance on next-generation reforms and to increase policy advice on broadband. The Bank Group has also been responsive by providing catalytic public-private partnership investments to accelerate the rollout of regional and national backbone infrastructure. Support to such public-private partnerships is growing rapidly. Between fiscal years 2007 and 2011, public-private partnerships for regional and national backbone infrastructure have been supported in 19 countries with another 11 planned in fiscal year 2012. Going forward, the Bank will (a) further define its broadband engagement areas, based on the forthcoming Broadband Toolkit (b) explore external funds for a technical assistance facility to provide rapid response to client countries on policy and regulatory issues, in particular in the areas of broadband and competition (c) draw lessons from ongoing public-private partnership initiatives to inform future project design and implementation and (d) provide policy direction on promoting access to the underserved and the poor, building on lessons from experience with targeted interventions.
Provide catalytic PPP investments to accelerate the rollout of regional and national backbone infrastructure for availability of high-quality broadband
Indicator: Number of countries supported with PPPs for connectivity infrastructure
Baseline: 19 (between 2007 and 2011)
Target: 22
Timeline: 20 by FY14 and 22 by FY16
IEG takes note that 22 countries had PPP for connectivity infrastructure. IEG needs information on their uptake and early results including on promoting access to the under served.
Based on the additional information received, IEG recognized the progress in supporting PPPs in 12 developing countries, however, the update did not give clear information on whether these PPPs are catalytic and how these projects will promote access to the under served.
During previous FY, the target of 22 countries with PPP for connectivity infrastructure was achieved.
MAR Action #102
- Indicator: Number of countries supported with PPPs for connectivity infrastructure
- Details: Provide catalytic PPP investments to accelerate the rollout of regional and national backbone infrastructure for availability of high-quality broadband
- Baseline: 19 (between 2007 and 2011)
- Target: 22
- Timeline: 22 by FY16
Results
- To support the growth of connectivity services (including mobile and broadband) in developing countries, the World Bank provides support in a number of ways: (a) technical assistance on policy and regulations and (b) catalytic investments in public-private partnerships (PPP) to accelerate the rollout of infrastructure.
During FY13-16, the World Bank supported PPP investments in 12 developing countries with $388 million of investment capital. In total, the World Bank is currently supporting 31 developing countries (up from 19 in FY12) with $1.1 billion in lending (up from $736 million in FY12). The total number of projects involving PPP in connectivity infrastructure are 21 (up from 10 in FY12).
IEG noticed that eight new investment operations with PPP design objectives have been approved in FY13-15. However, Management only provides the country, name and amount of the operation. IEG would appreciate receiving some basic information on the content of the operations as well:e.g. the stated objectives, type of investments, target beneficiaries and expected results.
In FY15 we added 5 new investment operations with PPP design objectives, including:
- Samoa, Pacific regional connectivity, (sub-marine cable) May 2015, US$16 million
- Dominican Republic, CARCIP2. August 2014, US$30 million
- Uganda, RCIP5, May 2015, US $75 million
- DRC, CAB5, July 2014, US$92 million
Additional Information from Management:
The World Bank has approved investment projects using PPP for broadband and telecommunications infrastructure, and has exceeded the targets set under MAR for FY16.
Prior to FY13, the World Bank approved 3 new projects dealing with PPP in ICT:
- Pacific Regional Connectivity Program (P113184, July 2011, $17.2 million): Tonga
- Central African Backbone - APL4 - Gabon CAB 4 (P122776, March 2012, $58 million): Gabon
- Caribbean Regional Communications Infrastructure Program (P114963, May 2012, US$25 million): Saint Vincent and Grenadines, Saint Lucia, Grenada
During FY13-15, the World Bank has approved 8 new projects dealing with public-private partnerships (PPP) in ICT:
- West Africa Regional Communications Infrastructure Program - APL 1C - Benin (P130184, March 2013, $35 million): Benin
- West Africa Regional Communications Infrastructure Program - APL 2 - Togo & Mauritania (P123093, May 2013, $60 million): Togo, Mauritania
- Regional Communications Infrastructure Program - APL 4 - Comoros (P118213, November 2013, $22 million): Comoros
- Central African Backbone - SOP 5 - Democratic Rep. of Congo (P132821, July 2014, $92 million): Democratic Republic of Congo
- Caribbean Regional Communications Infrastructure Program - Phase 2 - Dominican Republic (P147483, September 2014, US$30 million): Dominican Republic
- Pacific Regional Connectivity Program 2:Palau-FSM Connectivity (P130592, December 2014, $47.5 million): Palau, Federal States of Micronesia
- Regional Communications Infrastructure Program - SOP 5 - Uganda (P130871, May 2015, $75 million): Uganda
- Pacific Regional Connectivity Program: Phase 3 - Samoa (P128904, June 2015, US$16 million): Samoa
Based on the above, we propose a rating of High for exceeding proposed targets.
The recommendation calls for IFC (and the WBG) to shift towards broadband and internet access by (iii) supporting catalytic PPP interventions to accelerate the rollout of broadband infrastructure, and by (iv) identifying and supporting effective approaches to serve the underserved (targeted interventions).
The management update indicating investment volumes mostly in mobile phone operators does not permit IEG to make an assessment about shifts in its portfolio or the support to catalytic investments and the status of the development and implementation of business models to connect the underserved.
6 countries have been supported with catalytic investments in connectivity using PPP since FY13. Note that Tonga/Fiji is not initially a PPP but expected to convert to partial private over time.
FY12:
⢠CARCIP (May 2012, US$ 25 million ): Saint Vincent and Grenadines , Saint Lucia, Grenada
⢠CAB 4 (March 2012): Gabon ($58 million)
⢠PARCIP (July 2011): Tonga ($34 million)
FY13:
⢠WARCIP 1C (March 2013): Benin ($35 million)
⢠WARCIP 2 (2013-14): Togo ($ 30 million), Mauritania ($ 30 million)
FY14:
⢠RCIP4 (November 2013): Comoros ($22 million)
⢠Tonga Fiji (FY 14, $17 million)
(2013 Rating: Medium)
(Response from 2013. First MAR follow-up will be in 2014)
IEG notes the World Bank's progress in rolling out regional and national backbone infrastructure, through launching five public private partnership investments in FY13. The target number of countries supported with PPPs for connectivity infrastructure should be reviewed, because it seems conservative that the Word Bank aims to support three additional countries only during the five year implementation period from FY12 (baseline of 19) - FY16 (target of 22).
World Bank's progress in implementing IEG's recommendation to identify and support effective approaches to promote access to the underserved, building on its experience with targeted interventions in other areas, has not been reported.
(2013 Rating: Substantial)
(Response from 2013. First MAR follow-up will be in 2014)
During Fiscal Year 2013, the following progress has been made regarding IEG request #102 ( i.e. Connectivity). 5 new countires/operations have been launched and 3 new operations are under preparation.
Projects Under Preparation
RCIP 4 (Comoros- $22 million)
Membership and participation of a Special Purpose Vehicle (SPV), on behalf of the Government of Comoros, in the FLY Consortium Submarine Cable, which shall ensure connectivity with the existing EASSy cable in Comoros, and with either LION-2 in Mayotte, or with LION-1 and EASSy via Madagascarâs domestic backbone network, or both, on the basis of open access principles and a PPP structure, through the financing of the Consortium Fee.
WARCIP 2 (Togo and Mauritania, $60 million)
Mauritania ($30 million) On the basis of an open access and PPP structure to leverage private sector investment: (a) building 4 fiber optic missing links (Link 1: 531km Nouakchott-Atar-Choum Link 2: 723km Rosso-Boghe Kaedi-Selibaby-Kiffa Link 3: 280km Aioun-Nema Link 4 â 43km Selibaby towards (directly or indirectly) Mali border) to provide redundancy connectivity for cross-border links towards ECOWAS - namely towards landlocked countries Mali, Niger and Burkina Faso - and towards North Africa (via the connection with Morocco when the connection will be in place) as well as dissemination of international connectivity to most provincial capitals contributing hereby to reducing the urban/rural divide in the sub-region and a IXP / Carrier hotel / Datacenter building (b) establishing a national and regional Internet Exchange Point (IXP) in this IXP / carrier hotel / datacenter building.
Togo ($30 million) Two main activities, including: (i) establishing a carrier hotel and national / regional IXP where a bandwidth market and a national / regional hub for capacity could be established in order to improve terms of access to international capacity at lower costs, and any resettlement cost associated to this and (ii) Purchase of bulk international bandwidth capacity to ensure that international (and national) capacity is available to the country at the lowest cost and highest quality. WARCIP Togo will provide resources for the launch of a competitive tender to purchase high capacity bandwidth from neighbouring coastal countries to be delivered at the carrier hotel. By doing so, Togo will benefit from similar conditions of access to connectivity (diversity of choice, low prices) as other countries in the ECOWAS region
Projects Recently Launched (and under Implementation)
CARCIP (St. Vincent, St. Lucia, Grenada, $25 million)
Currently, three countries are participating in CARCIP Phase 1 (US $ 25 million approved by the Board in May, 2012), including Grenada (US $10 million), St. Lucia (US $6 million), and St. Vincent and the Grenadines(US $6 million). The CARCIP program is also supported by three regional institutions (via a US$ 3 million regional grant), including the Caribbean Telecommunications Union (CTU), the Caribbean Knowledge and Learning Network (CKLN) and the Eastern Caribbean Telecommunications Authority (ECTEL). Connectivity components are designed to provide âmissing linksâ in broadband infrastructure including national backbone, government networks, and IXPs as may be required.
WARCIP â1 C (Benin, $35 million)
Connectivity will focus primarily on supporting Benin to have access to the ACE submarine cable and a regional connectivity component is also included to strengthening links with neighboring countries.
CAB4 (Gabon, $58 million)
On the basis of an open access and PPP structure so as to leverage private sector investment the project will provide: (i) financing of a share of the Governmentâs $15 million contribution (consortium fee) for participating in the ACE submarine cable, (ii) financing of a terrestrial fiber optic link Libreville - Franceville - Bakumba â Lekoko / Border with Congo to interconnect with the Congolese link Dolisie â Mbinda (already financed under CAB3 CG) and additional links within the first phase of roll out of a national backbone and (iii) the setup of an Internet Exchange Point (IXP) and of an interconnection point to access the national backbone capacity.