Organization
MIGA
Report Year
2013
1st MAR Year
2013
Accepted
Yes
Status
Active
Recommendation

II. Applications
2. Strengthen the capacity of the Bank Group to respond to client demands for ICT applications by
(i) building greater ICT expertise and awareness across the networks and the Regions regarding the potential applications of ICT, including more consistently capturing ICT aspects in country and sector strategies
(ii) building incentives mechanisms for collaboration, coordination, and joint approaches for innovation between Bank Group units, reflecting the thematic nature of ICT and
(iii) transforming the ICT unit to enable it to act as a connector between internal/client demands, and outside expertise from the public and private sectors.
abc

Recommendation Adoption
IEG Rating by Year: mar-rating-popup NYT H C C Management Rating by Year: mar-rating-mng-popup NYT H C NYT
CComplete
HHigh
SSubstantial
MModerate
NNegligible
NANot Accepted
NRNot Rated
Findings Conclusions

- Despite the frequent occurrence of ICT applications, only a few sector strategies have included ICT.
- Task team leaders lacked sufficient ICT support. Bank task team leaders are not able to secure support or advice from the ICT unit. Only one network (education) was identified as very proactive in disseminating knowledge related to the use of ICT in projects, although it was not able to offer direct support during project preparation or implementation.
- Technical and operational staff in the GICT Department increased as the Bank Group ICT portfolio expanded. Although this increase might help the ICT unit address the insufficient support that task team leaders reported for the ICT components in their operations, it probably will not be enough, and other solutions should be pursued to ensure the needed support (for example, the ICT unit could put together a roster of ICT experts that task team leaders could call when they need such support).

Original Management Response

Original Response: Management agrees that implementation of this recommendation is crucial to the Bank's effectiveness in the ICT applications area. Bank's involvement in this area is key to the relevance of the institution, at a time when all types of services are increasingly delivered using ICT. As part of the ICT Sector Strategy formulation, most other sectors are developing approaches and specific plans to mainstream ICT within their sector - this will be captured in a companion piece to the upcoming ICT Strategy. The Bank has already initiated the transformation of the ICT unit in the Sustainable Development Network of the Bank (the Bank's ICT unit) to add a function of "connector" and is piloting a number of innovative partnerships with various sources of external expertise, including Country Governments, other development agencies and the private sector. To strengthen collaboration and joint approaches among Bank Group units, Management will (a) consider introducing a Bank wide cross-sector ICT practice and ICT practice leadership including representation from IFC and MIGA (b) encourage Networks and Regions to reassess and further develop their ICT skill mix as part of the yearly strategic staffing exercise (c) leverage the Bank's new Knowledge Platform on ICT for Accountability and Service Delivery to connect clients and staff with external sources of knowledge and expertise (d) continue to make use of Networks' training and knowledge-sharing activities to raise awareness across sectors (e) pursue Trust Fund sources to strengthen the "Connector" function in a constrained budget environment and (f) develop a pool of external experts to provide support on various ICT project design issues including technical and procurement. IFC will continue to support companies that develop new IT applications or use them in new business models.

Action Plans
Action 1
Action 1 Number:
0193-01
Action 1 Title:
MIGA Action B
Action 1 Plan:

Provide MIGA guarantees for cross-border investments to companies that develop new IT applications
Indicator: Number of countries benefiting from MIGA guarantees for investments in IT applications
Baseline: 2 (between FY07 and FY11)
Indicator: 8 (between FY12 and FY16)
Timeline: FY16
Status: 4 in FY12

Action 2
Action 3
Action 4
Action 5
Action 6
Action 7
Action 8
2016
IEG Update:

Inactive because the recommendations are retired.

Management Update:
No Updates
2015
IEG Update:

IEG acknowledges MIGA’s past efforts to support operations that support IT applications, which was reflected in a High implementation rating last year. We acknowledge that MIGA’s business model makes it difficult to predict what operations it will support, but IEG expects MIGA will continue its efforts to promote IT solutions in its future operations.

Management Update:

There were no ICT applications projects that MIGA supported in FY15. However, MIGA has contributed to the broader WBG-wide discussion on greater collaboration on ICT Applications. Recognizing the transformational potential of modern, 21st - century identification systems for the improved delivery of basic services to the poor, the World Bank Group has launched the Identification for Development (ID4D) cross-practice agenda. The program aims to bring global knowledge and expertise to bear across multiple sectors and countries to tackle this fundamental development challenge. It also will engage operationally in this area, collaborating with development partners, donors, and governments to provide unified technical and financial support to low- and middle-income countries participating in this effort. The ID4D Working Group has been created to advance this agenda, coordinating across sectors and aligning the World Bank Group's approach with those of other development partners and stakeholders. The active contributors to this emerging agenda include several global practices (GPs), departments, and cross-cutting solution areas (CCSAs), as well as other parts of the World Bank Group, such as the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the Consultative Group to Assist the Poorest (CGAP). ID4D's goals and principles align not only with the World Bank Group's twin goals of ending extreme poverty and promoting shared prosperity, but also with a recently proposed Sustainable Development Goal (SDG target #16.9) of "providing legal identity for all, including birth registration, by 2030."

2014
IEG Update:

Per Management's comprehensive update above, MIGA has been active in support to projects that included IT solutions. The management update also indicates that MIGA plans to cooperate more deeply with the GP and IFC in this area. The level of adoption is therefore rated "high".

MIGA's support included a series of projects intended to upgrade and automatize customs inspection operations. Some of these have subsequently encountered difficulties in part due to political economy aspects of customs operations. MIGA could have drawn on this experience and lessons learned from completed project evaluations in its response above.

Management Update:

MIGA has continued to support a number of ICT applications projects in the service sector, beyond the evaluation period of the ICT Report (FY03-10). In FY11 for instance, MIGA supported the PT Natrindo Telepon Seluler (NTS) project in Indonesia, a national GSM and 3G cellular service provider of wireless communication services. Since NTS is focusing its growth on lower-income segments of the market, the beneficiaries are lower income households and remote islands. The widespread availability of telecommunications networks also provides an ICT solutions platform for the private sector and the government to deliver vital services to underserved communities throughout Indonesia.
In FY12, MIGA supported two projects that provided import verification services on behalf of the Governments of Togo and Congo (Republic of) through investment guarantees to a Swiss trade security and certification provider, Cotecna Inspection S.A. (COINS). Under the partnership, COINS acquires, installs and operates on behalf of the Governments of Togo and Congo container scanners for the verification of shipments arriving at specific ports and provides its Computerized Risk Management System (CRMS). Evidence from the FY14 self-evaluations of the Cotecna Togo and Cotecna Congo projects suggest that they have promoted greater transparency and efficiency in port operations, thereby contributing to trade facilitation and private sector development. The transparent audit trail provided by scanning data has also helped the governments secure revenues through the elimination of opportunities for fraud and fiscal evasion.
Also in FY12, MIGA supported the Société d’Exploitation du Guichet Unique du Bénin project for the creation of a virtual port single window (PSW). The PSW is expected to manage all processes and procedures related to the passage of ships and cargo for import, export, and in transit at the Port of Cotonou and improve competitiveness. The PSW is also expected to improve the transparency and reliability of information involved in port procedures, which can facilitate the collection of import duties and monitoring the quality of services provided at the port.
In FY12, MIGA also supported the Bitaka project in Tunisia to develop its operations providing E-vouchers (mobile electronic recharge), scratch cards, and SIM cards for telecom operators and expand its distribution network to cope with the growth of the mobile sector. Bitaka provides low-cost, innovative solutions to mobile operators in Tunisia. The mobile sector is mainly pre-paid (above 90 percent of overall connections) and relies on payment solutions to connect the majority of the population.
Also in FY12, MIGA supported the Open-IT SPRL project in Burundi to develop and implement health information management systems for health facilities and health-management organizations and deliver technical support and training services. Open-IT is expected to be a medical ICT solutions and consultancy service provider for the health care sector in Burundi. The ICT solution will provide knowledge transfer and job opportunities to Burundians and improve the efficiency and cost-effectiveness of hospital operations.
In FY13, MIGA supported four import verification services projects on behalf of the Governments in Madagascar, Niger, El Salvador, and Gabon. In Madagascar, the FY13 project was the continuation of the original FY08 guarantee. As in other import verification services projects, the expected development impacts include increased efficiency in port operations, creation of local jobs, better detection of irregularities and fraud, and overall improvement in transparency and accountability.
Also in FY13, MIGA supported the Nafith Logistics project in Iraq for building and managing a truck-control system that regulates the entry and flow of trucks. The project is expected to enhance port efficiency, increase port throughput capacity, and create local jobs.
In FY14, MIGA supported the Cotecna Inspection project in Burundi to provide services to the Government of Burundi to contribute to trade facilitation through more efficient verification of imported goods. The audit trail provided by scanned data is expected to protect government revenues through the elimination of opportunities for fraud and fiscal evasion.
MIGA has also contributed to the broader WBG-wide discussion on greater collaboration on ICT Applications. A good example is he Digital IDs agenda at the Bank that has been recognized as strategic, in need of a multi-sectoral approach, with participation from relevant GPs and CCSAs, IFC, and MIGA. In June 2014, the World Bank endorsed the establishment of a Joint Cross-GP Working Group (GPs, CCSAs, IFC, MIGA) that will coordinate and undertake activities related to the Digital IDs for Development program. A WBG Approach Paper on Digital IDs for Development will be drafted in the coming months with a concrete action plan and strong operational focus. The Paper will articulate an overarching framework for supporting national Digital IDs programs that would allow for sector-specific, comprehensive interventions/projects and establish clear common principles and framework, but with flexibility to adapt to the needs of a country and specific context.

2013
IEG Update:

(IEG Rating 2013: Negligible)

(Response from 2013. First MAR follow-up will be in 2014)

The Management Update, while addressing aspects of the IEG recommendation on strengthening ICT expertise among World Bank networks and regions for the design and implementation of IT applications in Bank projects, is not consistent with MIGA's Action B (related to support for investments in companies developing IT applications). IEG requests MIGA to provide information on this action.

Management Update:

(Management Rating 2013: High)

(Response from 2013. First MAR follow-up will be in 2014)

In FY 13, the Telecom team has taken a 3-day intensive course called Telecom, Datacom and Networking for Non-engineering Professionals.