The World Bank KI: Telecommunications and ICT Development Project (P126324)
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1 Public Disclosure Authorized EAST ASIA AND PACIFIC Kiribati Transport & ICT Global Practice IBRD/IDA Technical Assistance Loan FY 2013 Seq No: 7 ARCHIVED on 15-Jun-2016 ISR23726 Implementing Agencies: Communications Commission of Kiribati, Ministry of Communication, Transport, & Tourism Development Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:26-Jul-2012 Planned Mid Term Review Date:-- Original Closing Date:30-Jun-2017 Project Development Objectives Effectiveness Date:09-Nov-2012 Actual Mid-Term Review Date:-- Revised Closing Date:30-Jun-2017 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) The proposed Project development objective is: to strengthen the legal, regulatory and institutional environment, enabling transition to a marketdriven telecommunications sector and facilitating improved connectivity for the Outer Islands. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name ICT Policy and Legal Support:(Cost $1.20 M) Public Disclosure Authorized ICT Regulatory Support:(Cost $1.20 M) Outer Islands Connectivity:(Cost $2.00 M) Project Management:(Cost $0.60 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate 6/15/2016 Page 1 of 12
2 Implementation Status and Key Decisions 1. Overall implementation progress is satisfactory and key elements of the sector reform and institutional development program have been completed while others are underway. As of May 9, 2016, 67 percent of IDA Grant proceeds, and 40 percent of Australian and New Zealand Grant funds (channeled through the Pacific Region Infrastructure Facility (PRIF) trust fund) had been disbursed. 2. ICT Policy. The Ministry of Information, Communications, Transport and Tourism Development ( MICTTD) has begun a review of the 2012 Telecommunications Policy identifying and detailing new policy initiatives for the broader ICT sector, e.g., cyber-security, privacy, ecommerce, e-government, disaster information management and broadcasting (including spectrum, digitalization, delivery and content regulation).and an updated policy is to be presented to Cabinet in July MICCTD has recruited a new Senior ICT Officer, and is in the process of recruiting an additional ICT officer. The main tasks of this team will be to finalize the new ICT Policy and also prepare a strategy for ICT in Government including E-Government issues. 3. Privatization. The sale of most of the assets of the incumbent operator, Telekom Services Kiribati Ltd (TSKL) to Amalgamated Telecom Holdings (ATH) Fiji was completed in May ATH-KL has now commenced operations. 4. New Market Entry. A new international telecommunications service provider, Ocean Links, has been awarded telecommunications and business licenses; it is expected to commence operations later in Regulatory reforms. The CCK Phase 1 work program addressing regulatory priorities has been completed. CCK s mandate has now increased given the liberalization of the telecommunications market. CCK is preparing terms of reference for additional support, focusing on issues such as spectrum management, convergence-related issues and consumer awareness. 6. Outer Islands Connectivity (Component 3): The Government has reiterated its commitment to Outer Islands Connectivity as a high national priority on the basis of establishing a public private partnership (PPP) between the operators and the Government. The PPP approach now supersedes an earlier universal access (UA) plan devised in early This PPP approach would also establish backbone transmission that could support direct services to island schools, clinics, Island Council offices and, if appropriate and sustainable, public access facilities. The concept of a PPP and shared infrastructure is now being progressed as there are parties in place with which to form a PPP, all of which are prospective users of the infrastructure. This will ensure that all aspects of the scheme, including technical, financial, governance and legal arrangements, can be designed and specified to align with operator / user needs and that the private sector is committed to using the network on agreed terms and the private sector and Government has agreed to contribute to the capital and to finance all operating costs. Prior agreement with the private sector for the use of the network is key to success of the concept. Under the envisaged PPP approach the Government will agree with one or more private sector operators for the supply of ICT services on the Outer Islands. Precise terms and relevant party contributions are to be explored and addressed under the contract. Government may contribute existing assets or build as necessary with other parties to maintain and operate relevant facilities on Outer Islands. Private sector operator(s) could use such facilities (on access terms determined by the PPP) in order to supply ICT services on agreed terms for a prescribed minimum time period. Government has determined under its National ICT Policy that it should no longer have a direct operational or financial role in the supply of ICT services to end-users. 6/15/2016 Page 2 of 12
3 6/15/2016 Page 3 of 12
4 Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Moderate Moderate 6/15/2016 Page 4 of 12
5 Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Moderate Moderate Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other Overall -- Moderate Moderate Results Project Development Objective Indicators PHINDPDOTBL Improved ICT policymaking capacity (Text, Custom) Basic ICT policy in place. Limited ICT policy capacity at MCTTD. New initiatives pending Policy Analyst action. National Policy 2 is under review (Broadband, Policy, Universal Access and Cyber Security in draft) Policy capacity in MCTTD, reflecting training Date 12-Jun Aug May Jun-2017 Policy Specialist adviser recruited and completed engagement. Policy Analyst appointed in Dec PHINDPDOTBL Legal and regulatory framework more effective at delivering sector performance (Text, Custom) Telecommunications Act 2004 and associated instruments in need of revision. Operator and Radcomms Licensing, Type Approval, Spectrum Plan, UA Scheme Rules, Numbering. UA Plan devised and amended 2015/08. Progress under a PPP planned and ToR prepared for 2015 execution. CCK will implement the programme under the UA plan - 2 islands with secondary schools will be targeted for this year Regulations enforced and updated Date 12-Jun Aug May Jun /15/2016 Page 5 of 12
6 PHINDIRITBL Current CCK regulatory program completed. Future work includes Consumer Protection, pricing rules, ongoing Compliance & Monitoring of existing rules and spectrum management In addition, the UA Committee is operational and a UA Plan based on PPP and implementation arrangements are in development. MCTTD is developing a PPP plan for other islands. CCK is in the process of implementing programme 2 of its UA plan that was previously approved by UA Committee. PHINDPDOTBL Increase penetration of mobile telephones and Internet, including number of direct beneficiaries (% of population, of which 53% female) (Percentage, Custom) Date 12-Jun Aug May Jun-2017 About 36,000 active customers over the population of 8 islands have access to mobile telephones (North & South Tarawa, Abaiang, Marakei, Maiana, Tab North, Onotoa and Christmas Island (2015 census)). PHINDPDOTBL Increase penetration of mobile telephones and Internet in Outer Islands (Percentage, Custom) Date 12-Jun Aug May Jun-2017 Overall Intermediate Results Indicators Component 1: Policy-making capacity established and working (Text, Custom) Basic ICT policy in place. Limited ICT policy capacity ATH (Fiji) successful bidder 31 March ATH (Fiji) successful bidder 31 March Policy-making capacity established and working Date 12-Jun Aug Aug Jul /15/2016 Page 6 of 12
7 PHINDIRITBL PHINDIRITBL PHINDIRITBL Component 1: Preferred option for reforming TSKL adopted by Government (Text, Custom) None Sale of TSKL proceeding to plan. TSKL transformation strategy fully implemented. Preferred option for reforming TSKL adopted by Government Date 12-Jun May Dec Aug-2014 Component 2: Licensing regime in place (Text, Custom) Licensed new entrant: Ocean Links Licensing regime not developed Licensing Rules ready for second mobile operator and others (5 licensed Service Providers namely: ATHL, WIS, Ocean Links, Speedcast and Tenicom) Licensing regime in place Date 12-Jun Aug May Jul-2015 Component 2: Spectrum management plan adopted (Text, Custom) None. Spectrum management system to be set up. CCK has bought Monitoring tools and awaits skills development. Spectrum Monitoring equipment available and monitoring activity is developing Spectrum management plan adopted Date 12-Jun Aug May Jul /15/2016 Page 7 of 12
8 PHINDIRITBL PHINDIRITBL Regime defined. Spectrum allocation and Management System (e.g. SMS4DC) yet to be developed. Staff are trained on how to allocate spectrum and to ensure requests for spectrum from service providers are being met. Component 2: Numbering plan adopted (Text, Custom) None. ATHKL to consider fixed network change to 8 digits. ATHKL is moving to 8 digits Numbering plan adopted Date 12-Jun Aug May Jan-2016 The fixed service eight digit plan is beginning for new customers Component 2: Interconnection regime adopted (Text, Custom) None Draft Interconnection guide available per new entrant analysis. Interconnection and access rule in draft status Interconnection regime adopted Date 12-Jun Aug May Jan-2016 Interconnection requirement pending new entrant being licensed and interconnection sought. Interconnection rules will be finalised after the workshop on Interconnection rules which will be held on the 31 May The IRO from ATH has been completed while The IRO and Interconnect contract for OceanLinks is still yet to be completed. 6/15/2016 Page 8 of 12
9 PHINDIRITBL PHINDIRITBL PHINDIRITBL Component 2: Dispute and mediation procedures in place (Text, Custom) None Pending next phase of regulatory instruments. May be developed via retained specialist firm. Pending next phase of regulatory instruments. May be developed via retained specialist firm. Mediation process still needs to be in place. Dispute and mediation procedures in place Date 12-Jun Aug May Jan-2016 The law provides for disputes between licensees regarding interconnection and access, and also provides for persons affected by CCK decisions to apply for reconsideration or to apply to a Court for relief. Consumer Protection still needs to go to the Board for approval. Component 2: Award of other telecommunications licenses (Number, Custom) Date 12-Jun Aug Aug Jul-2017 As at 23 May '16-5 Individual and 12 Class Licenses CCK has recently licensed a new competitor (Ocean Links) and issued 12 class licenses. Component 2: Internet broadband (minimum 256Kbps) subscribers (% of population) (Percentage, Custom) Date 12-Jun Aug Aug Jul G - $10.2/6.36 3G - $3.00/2.64 ATH- $3.00/3.00 Flashnet/pocket wifi Plans $5 150MB 6 days $ MB 11 days $ MB 20 days $ GB 30 days Call cost via the 3G network are reduced to $2.70. The call to Australia for 3 minute is $3.00. This has increased. No Off Peak prices 6/15/2016 Page 9 of 12
10 PHINDIRITBL PHINDIRITBL indicated for International calls. Mobile internet 3G/4G Plan Day Plan - $2. 60Mb Weekly - $ MB Monthly - $ GB This Wimax product was $100/month in ADSL equivalent is uncapped and costs $250 excl VAT. 2015/07 Mobile data (3G) data cost is $50/GB. Mobiledata cost is $0.99/MB. ATHKL introduced data plans with different durations. They are discontinuing the usage of wireless modem and ADSL services. Component 2: Number of direct beneficiaries (including % female) (Number, Custom) Date Aug May Total subscribers of fixed, mobile and internet services data pending ATH consolidation = 36,000 subscribers Component 3: Mobile penetration in Outer Islands (% population) (Percentage, Custom) Date 12-Jun Aug Aug Jul-2017 Percentage (%) of Outer Islands population of 47,000 (2015 census). It is difficult to identify outer island data as usage are all consolidated under 1 category. There are now 6 outer islands with 3G mobile service. 6/15/2016 Page 10 of 12
11 PHINDIRITBL Component 3: Internet penetration in Outer Islands (% population) (Percentage, Custom) Date 12-Jun Aug May Jul-2017 Outer access to Internet is through telecentres. Individual services are pending WiFi / 3G rollout. ATH has upgraded outer island 2G to 3G hence they can enjoy access to internet through using mobile services. As of May 2016, 16,000 out of 47,000 (2015 census) have access to broadband. 3G now encompasses 5 outer islands (Abaiang, Marakei, Maiana, Tab North and Onotoa). Overall Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IDA-H7800 Effective USD % P TF Effective USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P IDA-H7800 Effective 26-Jul Sep Nov Jun Jun-2017 P TF Effective 20-Jan Feb Mar Dec Jun-2017 Cumulative Disbursements 6/15/2016 Page 11 of 12
12 Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/15/2016 Page 12 of 12
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