Implementation Status & Results Nicaragua Nicaragua Rural Telecom (P089989)

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1 losure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Implementation Status & Results Nicaragua Nicaragua Rural Telecom (P089989) Operation Name: Nicaragua Rural Telecom (P089989) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 14-Nov-2014 Country: Nicaragua Approval FY: 2006 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Instituto Nicaragüense de Telecomunicaciones y Correos (TELCOR) Key Dates Board Approval Date 27-Apr-2006 Original Closing Date 30-Jun-2011 Planned Mid Term Review Date 06-Jul-2010 Last Archived ISR Date 20-Mar-2014 Effectiveness Date 05-Jan-2007 Revised Closing Date Actual Mid Term Review Date 06-Jul-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to increase access to and reduce costs of telecommunications services in rural areas of Nicaragua. Has the Project Development Objective been changed since Board Approval of the Project? Yes Component(s) Component Name No Component Cost 1. Rural Access Regulatory Capacity Strengthening and Technical Assistance to Communities Project Management and Audit 1.60 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview Access to Internet, mobile and phone services have increased dramatically in rural areas of the country at affordable prices. Broadband internet points of presence have been installed in 104 municipalities. Currently all 153 municipalities of Nicaragua have access to broadband services at the same prices as in Managua. 37 radio base stations and 101 telecenters have been installed in municipalities across the country, providing access to mobile and internet at affordable rates. Over 600 public payphones have been installed in towns and villages surrounding existing coverage areas that did not have access, out of which around 100 are equipped with solar panels in communities without electricity. Additionally, the project has successfully installed e-government application packages (e.g. financial management, cattle branding) in 78 Page 1 of 5

2 municipalities across the country. The Additional Financing of US$5million for expanding telecommunications access to the Caribbean Coast and Rio San Juan, extended the closing date of the project until March 31, In early 2014, TELCOR signed contracts with Claro (US$3.4 million) and Xinwei (US$0.8 million) to deploy telecommunications services in 29 rural and remote communities in the Caribbean Coastal region, which are expected to benefit nearly 50,000 people. After initial delays, both firms are progressing and expect to commence services by February (Claro) and April (Xinwei), 2015, for which the Government has requested an extension of the Project closing date for 3 months, until June 30, The Bank team is currently reviewing the request. Locations Country First Administrative Division Location Planned Actual Nicaragua Rivas Departamento de Rivas Nicaragua Rio San Juan Departamento de Rio San Juan Nicaragua Nueva Segovia Departamento de Nueva Segovia Nicaragua Matagalpa Departamento de Matagalpa Nicaragua Masaya Departamento de Masaya Nicaragua Madriz Departamento de Madriz Nicaragua Leon Departamento de Leon Nicaragua Leon Departamento de Leon Nicaragua Jinotega Departamento de Jinotega Nicaragua Granada Departamento de Granada Nicaragua Esteli Departamento de Esteli Nicaragua Chontales Departamento de Chontales Nicaragua Chinandega Departamento de Chinandega Nicaragua Carazo Departamento de Carazo Nicaragua Boaco Departamento de Boaco Nicaragua Atlantico Norte Region Autonoma Atlantico Norte Nicaragua Atlantico Sur Region Autonoma Atlantico Sur Results Project Development Objective Indicators Page 2 of 5

3 Indicator Name Core Unit of Measure Baseline Current End Target Access to Telephone Services (fixed mainlines Number Value plus cellular phones per 100 people) Date 17-Feb-2006 Baseline from start date of original project in 2006 (estimate by TELCOR) Access to Internet Services (number of Number Value subscribers per 100 people) Date 17-Feb-2006 Baseline from start date of original project in 2006 (estimate by TELCOR) Retail Price of Internet Services (per Mbit/s per Amount(USD) Value Month, in US$) Date 14-May-2012 approved for the AF in Baseline from original project not available as prices were then based on 128kbps(US $20) rather than Mbit/s. Direct project beneficiaries Number Value Date 17-Feb-2006 Female beneficiaries Percentage Sub Type Supplemental Value Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of Municipal Heads with Internet Text Value access Date 17-Feb-2006 Number of towns with access to public phone Number Value Page 3 of 5

4 Average distance that residents in rural Nicaragua have to travel to the nearest public phone Number of e-government and E-Commerce applications designed for the Caribbean Coast implemented Date 17-Feb-2006 Kilometers Value Date 17-Feb-2006 Number Value Date 14-May-2012 The target is intended to be reduced to one. To be formalized in a level 2 restructuring. Data on Financial Performance (as of 23-Sep-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P IDA Effective 27-Apr Jun Jan Jun-2011 P IDA Effective 14-Jun Jul Nov-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA Effective XDR P IDA Effective XDR Disbursement Graph Page 4 of 5

5 Key Decisions Regarding Implementation An important agreement was reached, in principle, between TELCOR and SINAPRED, the disaster management agency, to implement an early warning cell broadcasting system in Nicaragua with an initial pilot aimed at hurricanes in the Caribbean Coast. Additionally, a request was mde by the Government to extend the closing date by 3 months until June 30, The Bank team is currently reviewing the request. Restructuring History Level two Approved on 17-May-2011, Level 2 CD Decision on 08-May-2014 Related Projects P Nicaragua Rural Telecom Additional Finance Page 5 of 5