The World Bank Report No: ISR15252 Implementation Status & Results Africa Central African Backbone - APL2 (P117652) Public Disclosure Copy Operation Name: Central African Backbone - APL2 (P117652) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 27-Jun-2014 Country: Africa Approval FY: 2011 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Adaptable Program Loan Implementing Agency(ies): Key Dates Board Approval Date 20-Jan-2011 Original Closing Date Planned Mid Term Review Date 28-Feb-2013 Last Archived ISR Date 19-Jan-2014 Effectiveness Date 06-Jul-2011 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 14-Jun-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the proposed project is consistent with the PDO for the CAB Program: To contribute to increase geographical reach and usage of regional broadband network services and reduce their prices in the territory of São Tomé and Príncipe. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1 - Enabling environment 1.10 Component 2 - Connectivity 13.30 Component 3 - Project Management 0.50 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Highly Satisfactory Highly Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview As of June 2014 CAB2 STP project has disbursed 98% out of the total amount of $14.9 million of project funds. All of the main activities of the project have largely been completed, namely the arrival and operation of the cable, the entrance of a second operator and full government divestiture from the cable company. 1. The ACE submarine cable is in operation and was commercially launched in February 2013. The use of capacity has gone from 50Mbs before the cable to 300Mbs in June 2013, 456Mbs in December 2013, and to 620Mbs in April 2014 - ie, the use has so far gone up 12 times when compared to the situation before the cable and it can still go up 7 more times Page 1 of 5 The World Bank Report No: ISR15252 before an upgrade is needed in cable capacity. Average prices are already coming down: CST is offering 4-8 times more capacity for the same price, and has launched lower end ADSL and mobile services in October 2013, which allow lower income consumers to pay 10-30 times less for more limited speed and traffic service - this trend is also likely to continue with the entrance of the second operator. Public Disclosure Copy 2. On May 23rd, 2014, the second operator, UNITEL, successfully launched technically in STP and commercial launch is expected in July 2014. Interconnection fees have now been agreed. 3. As part of the package for the second license the government has fully divested from the submarine cable vehicle (STP-Cabo) keeping only a golden share that enables it to guarantee open access principles. STP-Cabo held its first board meeting including UNITEL in April 2014. After delivering all of these activities successfully, the client team is now working on further improvements at the margin. Government was encouraged to follow-up on the adoption of the ICT strategy, and of certain regulations prepared through the project and approval of revisions to the telecom law so that these are finalized by the project closing date, in December 2014. During the MTR mission conducted on June, 2013, a consultation workshop had been carried out with stakeholders to identify ICT priority projects to be financed with (i) remaining project funds, and (ii) funds Government obtained from second operator’s license to promote ICTs in the country. It was agreed that CAB2 project proceeds will be utilized to connect secondary schools in STP to Internet, and the Government would in parallel finance the establishment of three community Telecenters, and purchasing computing devices for schools. The tender for connecting secondary schools to the internet, is expected to be launched in June 2014. This is the last activity to be financed through the project. Preparations for the project Implementation Completion Report (ICR) have started, as the project closes on December 31, 2014. Finally, a new additional financing for an education project is being discussed that could have potential synergies with the activities of CAB2 Locations Country First Administrative Division Location Planned Actual S.Tome,Principe Sao Tome Sao Tome ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Access to Internet Services (number of Number Value 0.70 0.70 1.80 Public Disclosure Copy subscribers per 100 people) Date 01-Dec-2010 31-Dec-2013 31-Dec-2014 Comments Access to Telephone Services (fixed mainlines Number Value 67.00 77.00 78.00 plus cellular phones per 100 people) Date 01-Dec-2010 31-Dec-2013 31-Dec-2014 Comments Previously reported June 2013 figure correct value should have been 76 International internet bandwidth Number Value 51.00 2823.00 500.00 Page 2 of 5 The World Bank Report No: ISR15252 Date 31-Dec-2007 31-Dec-2013 31-Dec-2014 Comments Unit of Measure: Bits per Unit of Measure: Bits per Unit of Measure: Bits per second per person second per person second per person Public Disclosure Copy Note that the value that had previously been indicated for Dec 2012 was wrong (shouldhave been '309'). Direct project beneficiaries Number Value 113900.00 130900.00 134300.00 Date 01-Dec-2010 31-Dec-2013 31-Dec-2014 Comments Previously reported June 2013 figure should have been lower correct value should have been 129200 Female beneficiaries Percentage Value 50.50 50.50 50.50 Sub Type Supplemental Access to telephone services (cellular phones Number Value 63.00 73.00 77.00 per 100 people) Date 01-Dec-2010 30-Jun-2013 31-Dec-2014 Comments Previously reported June 2013 figure correct value should have been 71 Average monthly price of wholesale Text Value US$9,000 2500 US$4,500 international E1 capacity link from capital city to Date 01-Dec-2010 31-Dec-2013 31-Dec-2014 Europe Comments US$/month/2Mbps US$/month/2Mbps Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of operators and service providers with Percentage Value 0.00 100.00 100.00 Public Disclosure Copy access to the Regional infrastructure deployed Date 01-Dec-2010 31-Dec-2013 31-Dec-2014 (ACE cable) Comments no cable. The submarine cable has Cable has landed and is gone into operation in Feb operational 2013. Retail Price of Internet Services (per Mbit/s per Amount(USD) Value 852.00 52.00 340.00 Month, in US$) Date 01-Dec-2010 31-Dec-2013 31-Dec-2014 Comments per Mbps monthly (USD) per Mbps monthly (USD) per Mbps monthly (USD) (640 euros/month) (40€/month) Page 3 of 5 The World Bank Report No: ISR15252 Increased access to ICT services: Percentage Percentage Value 56.00 70.00 100.00 of localities with broadband Internet access Date 01-Dec-2010 31-Dec-2013 31-Dec-2014 (256Kbps) Comments same value Public Disclosure Copy Mobile cellular price of a 3 minute local call Amount(USD) Value 0.42 0.40 0.20 (peak) Date 01-Dec-2010 31-Dec-2013 31-Dec-2014 Comments The second operator has done technical launch and commercial launch is planned for July 2014, so next indicators should reflect that. Additional number of operators in the market Number Value 0.00 0.00 2.00 Date 01-Dec-2010 30-Jun-2014 31-Dec-2014 Comments The license has been awarded, the operator has launched technically and plans to do the commercial launch by July 2014 Impact on Telecom sector of World Bank Number Value 0.00 5.00 4.00 Technical Assistance (composite score: 1- low Date 01-Dec-2010 31-Dec-2013 31-Dec-2014 impact to 5-high impact) Comments The cable has landed and is structured under open access - visible results. Gov't has divested from the cable. The second license has been awarded and just the prospect of competition is bringing results. Interconnection rates agreed (TA from project). Commerciallaunch in July 2014. Public Disclosure Copy Data on Financial Performance (as of 25-Apr-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P117652 IDA-H6420 Effective 12-Jan-2011 24-Jan-2011 06-Jul-2011 31-Dec-2014 31-Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P117652 IDA-H6420 Effective XDR 9.80 9.80 0.00 9.59 0.21 98.00 Page 4 of 5 The World Bank Report No: ISR15252 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The project team will shortly launch the bidding documents for connecting schools to the internet, the last activity to be financed through the project. In parallel, the government will confirm the use of proceeds from sale of the second license to finance Telecenters project and possibly computing devices for education. The ICT and Education teams will collaborate to find suitable synergies between CAB2 and the Additional Financing for the Education project currently being prepared. Restructuring History Level two Approved on 04-Feb-2012 Related Projects Public Disclosure Copy There are no related projects. Page 5 of 5