I. Reform and Access
- 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.abc
- 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: Going forward, IFC will (a) continue to shift its investment focus to support capital investment in, andoperation of, fixed and mobile broadband access networks and backbone infrastructure and (b) draw lessons from past public-private partnership initiatives and current Bank experience in the development and pursuit of future joint initiatives.
IFC Action A: Pursue interventions in fixed and mobile broadband access networks and backbone infrastructure Efforts will include joint WB-IFC initiatives and would be informed by lessons from PPP initiatives and Bank experience.
Indicator: DG 4c--Increase or Improve infrastructure services --Telecom
Baseline: 1.24 million telecom subscribers (IDG 4c in FY12]
Target: IDG 4c target for FY15 [to be determined in FY14 as part of IDG targets for FY15]
Timeline: FY15
Management has not provided an update on implementation progress for FY16. Implementation is therefore rated as moderate as in the previous year.
As in prior years, the management update indicating an aggregate investment amount for one fiscal year and aggregate reach data does not allow IEG to make an assessment about progress in implementing this action. Aggregate numbers of investment and subscribers do not tell us whether any shifts were made in the IFC portfolio towards broadband networks and backbone infrastructure. IFC's commitments in the sector as a whole declined significantly in FY15 compared to previous years, yet this is not reflected in the management update. It is difficult to assess the implications of the total number of subscribers reached, 11 million, without targets. Information on the type of subscribers reached, especially the underserved, and type of services provided to them, would help us make an assessment of the response.
IFC continued to strengthen its focus on broadband and invested USD126 million in eight projects in FY15, with expected total reach of 11 million subscribers with new or improved service. To arrive at the total subscriber numbers IDG methodology is followed.
(note: Omar Chaudry has reviewed and cleared the update and ratings for this recommendation as a Reviewing Manager and has authorized Kris Luniku to clear in the system on his behalf. Kris Luniku is clicking in the system on Omar's behalf).
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).
IEG acknowledges evidence offered of progress in mobile telephony connectivity and projects supporting broadband connectivity. IFC was to clarify evidence in terms of broadband access but did not provide additional evidence.
For FY14, IFC has continued to strengthen its focus on financing broadband access and backbone infrastructure with 14 commitments worth US$M 336 for IFCâs own account. Projects included Idea Cell Ltd, Milicom Chad, MovilREd, On Telecom, TCell, Internexa Brazil.
In FY14, IFC commitments will connect for the first time or improve service for 5.2 million, just below the anticipated target for FY14 of 5.65 million subscribers. The setting of targets is an annual exercise based on expected pipeline and strategic developments in the business. For FY15, the target is provisionally set for 6.6 million but may be revised during the business planning cycle. Targets for subsequent years are expected to grow by a percentage thatâs commensurate with average annual growth rate over previous years. The methodology for tracking project-by-project results follows the methodology for IDG 4c.
(2013 Management Response)
Bank will take lead on this recommendation.
No input from IFC.
(Management Rating 2013: Substantial)
(2013 Management Response)
For FY13, IFC has continued to shift its investment focus to broadband access and backbone infrastructure. Five projects in the broadband sector including Grameen Phone, Roshan, San Andres Cable Virgin Mobile Chile and Virgin Mobile Colombia were committed for a total of US$245 million for IFC's account and US$200 million for mobilization.
Status: Active