The World Bank Report No: ISR14722 Implementation Status & Results Solomon Islands Solomon Islands Telecommunications and ICT Development Project (P113148) Public Disclosure Copy Operation Name: Solomon Islands Telecommunications and ICT Development Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 08-Jul-2014 Project (P113148) Country: Solomon Islands Approval FY: 2010 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 06-Apr-2010 Original Closing Date 31-Mar-2015 Planned Mid Term Review Date 14-Apr-2014 Last Archived ISR Date 23-Dec-2013 Effectiveness Date 18-Aug-2010 Revised Closing Date 31-Mar-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project aims to facilitate increased access to a wide variety of reliable and affordable telecommunications services for the majority of the Solomon Islands population through efficient and well-regulated competition. The Project will support the development of a new regulatory institution#the Telecommunications Commission#designed to promote good governance in the sector. Further, through support for enabling infrastructure, the Project will pave the way for more widespread application of information communication technologies (ICT) supporting economic and social development, including greater opportunities for women. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Sector Policy Support 0.30 Regulatory Support 4.96 Technical Assistance for Universal Access 0.30 Public Disclosure Copy Project Management 0.39 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating High Implementation Status Overview The Project was declared effective on August 18, 2010. Achievement of development objectives is rated satisfactory. Access to telecommunications services, particularly mobile and Page 1 of 7 The World Bank Report No: ISR14722 Internet, continues to improve, with mobile penetration steady at about 57 percent (overall subscriber numbers are increasing, but population growth remains high) and Internet penetration—driven by mobile broadband— has risen to 8 percent as of March 2014. Implementation progress is rated satisfactory, with details for each component summarized below. Total disbursement of the IDA grant was 98 percent, and disbursement of the Australian cofinancing grant was 65 percent as of May 2014. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Solomon Islands Guadalcanal Province Honiara Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Improved ICT policy environment in the Text Value Basic Telecoms Policy in ICT policy documents ICT policy capacity in country. place, as adopted by Cabinet prepared. Government. in 2008 Date 04-Mar-2010 25-Jun-2014 04-Mar-2015 Comments Improved ICT policy environment defined in terms of available policy documentation, and capacity to update and implement. ICT Policy specialist deliverables specified in TOR. Will work with MOCAIT, MOFT and Consultative Group. MOCAIT ICT Director to be recruited. Legal and regulatory framework more effective Text Value Law enacted; no regulations Key sector regulations in Regs at delivering sector performance place and enforced by TCSI. enforced & updated Date 04-Mar-2010 25-Jun-2014 04-Mar-2015 Public Disclosure Copy Comments Telecoms Law enacted End target defined in terms of August 2009. Regulatory regulations in line with framework to be developed. international best practice in place and implemented as needed. Progress indevelopment of regulatory framework for new licensing, general authorizations, interconnection, spectrum, numbering. Page 2 of 7 The World Bank Report No: ISR14722 Increase in the level of competition in the ICT Text Value Incumbent monopoly Market remains competitive. At least two sector telecommunications operators Date 04-Mar-2010 25-Jun-2014 04-Mar-2015 Public Disclosure Copy Comments 5 active market participants: STL, Bemobile, Satsol, Pointcruz and Smile. Six other class licenses awarded. Class licensing regime. Increase in teledensity Percentage Value 8.00 57.00 40.00 Date 04-Mar-2010 31-Mar-2014 04-Mar-2015 Comments Limited access to telephony. Decrease in tariffs of key communications Text Value February 2010 tariffs for local Reduced tariffs Reduced tariffs for stated services mobile calls; services calls to Australia; & 128kpbs Internet access Date 04-Mar-2010 25-Jun-2014 04-Mar-2015 Comments See sub indicators. Further reduction in tariffs for mobile and mobile Internet. Some increase in fixed Internet packages but for increased value of service (bandwidth, cap) so overall unit costs lower. Increased price complexity. Impact on Telecom sector of World Bank Number Value 1.00 3.00 5.00 Technical Assistance (composite score: 1- low Date 04-Mar-2010 31-Oct-2013 04-Mar-2015 impact to 5-high impact) Comments Baseline value in PAD. Mobile competition introduced; additional Internet competition pending, and independent regulator staffed and operational. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target New ICT policy framework formulated and Text Value Basic ICT policy ICT policy framework and adopted capacity in place Date 04-Mar-2010 31-Oct-2013 04-Mar-2015 Comments ICT policy framework development in progress. Page 3 of 7 The World Bank Report No: ISR14722 Create conducive environment for competition Text Value 1 5 through establishment of a regulatory authority Date 04-Mar-2010 31-Oct-2013 04-Mar-2015 Comments Independent Regulator Need to introduce second- Public Disclosure Copy established and staffed. Basic generation regulation, in era regulatory framework in place. of convergence. New licensing regime and general authorization scompleted. Market intelligence database functioning. Further staff capacity-building needed. Telecommunications Commissioner and staff Text Value None. Commissioner and staff in appointed and retained Sub Type place Breakdown Date 04-Mar-2010 20-Apr-2013 04-Mar-2015 Comments Continuing need to manage staff retention risk. Develop regulatory instruments Text Value Law enacted; no regulation Regulations enforced and updated Date 04-Mar-2010 04-Mar-2015 Comments Settlement Agreement provides basic regulatory framework for transition from monopoly to competition. Spectrum management plan Text Value None Spectrum management plan Sub Type in place Breakdown Date 04-Mar-2010 04-Mar-2015 Comments Expected in YR2 Spectrum monitoring equipment procured and installed.Spectrum management consultations planned. Public Disclosure Copy Develop numbering plan Text Value None Numbering plan in place Sub Type Date 04-Mar-2010 04-Mar-2015 Breakdown Comments Expected in YR2 Review in 2013. Develop interconnection regime Text Value None Interconnection regime in Sub Type place and functioning Breakdown Date 04-Mar-2010 04-Mar-2015 Comments Expected in YR2 Review in 2013. Page 4 of 7 The World Bank Report No: ISR14722 Develop dispute and mediation procedures Text Value None Dispute resolution and Sub Type mediation procedure in place Breakdown Date 04-Mar-2011 15-Mar-2011 Public Disclosure Copy Comments Expected in YR2 Increase in network coverage Percentage Value 8.00 57.00 40.00 Date 04-Mar-2010 31-Mar-2014 04-Mar-2015 Comments Both operators upgrading networks and services and opening new sites. Mobile subscribers per 100 people Number Value 8.00 57.00 40.00 Sub Type Supplemental Mobile and fixed-line telephone subscribers per Number Value 8.00 57.00 40.00 100 people Sub Type Supplemental Internet service (128 kbps), business monthly Amount(USD) Value 169.00 189.00 118.30 rate Sub Type Supplemental Mobile 3 minute local call Amount(USD) Value 1.20 0.13 1.08 Date 04-Mar-2010 31-Mar-2014 Comments The cost of a one minute local Expected by YR3 mobile call is US$0.13-US $0.27 per minute (STL- Bemobile=US$0.20, Bemobile-STL=US$0.22, STL-fixed=US$0.27, Bemobile-fixed=US$0.24, STL-STL=US$0.13 and Bemobile-Bemobile=US Public Disclosure Copy $0.18). Price of 3 minute international call (Australia) Amount(USD) Value 3.60 2.85 3.06 Date 04-Mar-2010 31-Mar-2014 Comments Ranges from $2.85 to $3.06. Expected by YR3 Page 5 of 7 The World Bank Report No: ISR14722 Develop strategy for universal access Text Value None Universal Access Strategy prepared Date 04-Mar-2010 20-Apr-2013 04-Mar-2015 Public Disclosure Copy Comments Expected by YR5 Commercial rollout still ongoing, so will be launched in late 2013. Data on Financial Performance (as of 19-Jun-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P113148 IDA-H5500 Effective 06-Apr-2010 22-Jun-2010 18-Aug-2010 31-Mar-2015 31-Mar-2015 P113148 TF-96582 Effective 30-Sep-2010 21-Oct-2010 21-Oct-2010 30-Jun-2013 30-Jun-2014 P113148 TF-97221 Effective 06-Aug-2010 06-Aug-2010 07-Sep-2010 30-Jun-2013 31-Mar-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P113148 IDA-H5500 Effective USD 3.25 3.25 0.00 3.12 0.13 96.00 P113148 TF-96582 Effective USD 3.00 3.00 0.00 2.68 0.32 89.00 P113148 TF-97221 Effective USD 2.74 2.74 0.00 1.16 1.58 42.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR14722 Public Disclosure Copy Key Decisions Regarding Implementation The Government is encouraged to expedite the recruitment of ICT Director at the Ministry of Communications, Aviation and Information Technology to strengthen its capacity in this area, and consider the formal designation of a Chief Information Officer position. The Telecommunications Commission (TCSI) is recommended to enhance its efforts at public awareness, communications and outreach. The Government has indicated its intention to seek an extension of the project's closing date--and possible additional financing still to be confirmed-- to permit continuation of transitional support to TCSI pending availability of license fee income; a formal request letter is anticipated. Restructuring History Level two Approved on 13-Nov-2013 Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7