Islamic Republic of

Private Sector Development (PSD) Cluster

E-AFGHANISTAN

National Priority Program Proposal

Ministry of Communications and Information Technology

May 2011 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Contents

List of Abbreviations…………………………………………………………………………4 1. PROGRAM PROPOSAL ...... 7 1.1 SITUATIONAL ANALYSIS -- OVERALL...... 7 1.1.1 BACKGROUND ...... 7 1.1.2 ACHIEVEMENTS DURING 2001 TO 2010 ...... 7 1.1.3 ACHIEVEMENT HIGHLIGHTS DURING 2001 - 2010 ...... 9 1.1.4 CHALLENGES FOR THE FUTURE ...... 10 2. PROGRAM GOAL & OBJECTIVES (COMPONENTS) ...... 12 3. STRATEGY ...... 14 4. E-AFGHANISTAN COMPONENTS ...... 16 4.1 STRENGTHENING OF LEGAL, REGULATORY, POLICY AND INSTITUTIONAL FRAMEWORK ...... 16 4.1.1 LEGAL FRAMEWORK: ...... 18 4.1.1.1 ICT LAW ...... 18 4.1.1.2 POSTAL LAW...... 19 4.1.2 REGULATORY FRAMEWORK ...... 20 4.1.2.1 CYBER SECURITY REGULATIONS ...... 20 4.1.2.2 BROADBAND REGULATIONS ...... 20 4.1.2.3 E-GOVERNANCE REGULATIONS ...... 21 4.1.2.4 DIGITAL SIGNATURES REGULATIONS ...... 21 4.1.2.5 E-GOVERNMENT INTEROPERABILITY (SOFTWARE) FRAMEWORK ...... 22 4.1.2.6 INFORMATION TECHNOLOGY AUDITS ...... 23 4.1.2.7 ELECTRONIC CERTIFICATION REGULATIONS...... 24 4.1.2.8 QUALITY OF SERVICE REGULATIONS ...... 24 4.1.3 INSTITUTIONAL FRAMEWORK ...... 24 4.1.3.1 NATIONAL ICT COUNCIL OF AFGHANISTAN (NICTCA) ...... 24 4.1.3.2 AFGHANISTAN TELECOM REGULATORY AUTHORITY (ATRA) ...... 26 4.1.3.3 APRA ...... 27 4.1.3.4 ELECTRONIC CERTIFICATION AUTHORITY (ECA) ...... 27 4.1.4 POLICY FRAMEWORK ...... 28 4.1.4.1 BROADBAND POLICY ...... 28 4.1.4.2 REVISION OF ICT POLICY ...... 29 4.2 EXPANDING TELECOMMUNICATION NETWORK...... 30 4.2.1 BUILDING TELEPHONE LINES NETWORK ...... 30 4.2.2 BUILDING INTERNET EXCHANGE POINT ...... 31 4.2.3 OPTIC FIBER NETWORK ...... 33 4.3 E-GOVERNMENT ...... 34 4.3.1 NATIONAL IDENTITY CARDS ...... 35 4.3.2 E-GOVERNANCE RESOURCE CENTRE ...... 39 4.3.3 WEBSITES FOR SERVICE DELIVERY OR INTEROPERABILITY ...... 41 4.3.4 ESTABLISHING AN ICT VILLAGE ...... 41 4.3.5 DEVELOPING ELECTRONIC GOVERNMENT APPLICATIONS ...... 43 4.3.6 IMPROVING ICT TRAINING AND DIGITAL LITERACY ...... 44

Ministry of Communications and IT, Islamic 2 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.4 M-GOVERNMENT ...... 45 4.4.1 ENABLING MOBILE GOVERNMENT ...... 45 4.4.2 INNOVATION GRANTS PROGRAM...... 48 4.5 POSTAL SECTOR MODERNIZATION ...... 50 4.5.1 RECONSTRUCTION AND MODERNIZATION OF AFGHAN POST ORGANIZATION (APO) ...... 51 4.5.1.1 DEVELOPMENT OF SERVICES ...... 51 4.5.1.2 THE DEVELOPMENT OF AFGHAN POST...... 52 4.5.1.3 ENHANCING MAIL SERVICES ...... 54 4.5.1.4 CAPACITY BUILDING ...... 55 4.5.1.5 RECONSTRUCTION AND REHABILITATION OF THE INFRASTRUCTURE AND MODERNIZATION OF THE APO POST OFFICES ...... 56 4.5.1.6 REWRITING OF THE POSTAL LAW ...... 56 4.5.1.7 SETTING UP A POSTAL REGULATOR IN THE FORM OF AN INDEPENDENT AUTHORITY ...... 56 4.6 STRENGTHENING THE MINISTRY ...... 56 4.6.1 CYBER SECURITY CENTRE...... 57 4.6.2 CAPACITY BUILDING IN MCIT ...... 58 4.6.3 CHIEF INFORMATION OFFICE (CIO) CADRE ACROSS THE GOVERNMENT ...... 58 4.6.4 CREATING E-GOV RESOURCE CENTRE FOR THE GOVERNMENT ...... 59 4.6.5 INFORMATION AND COMMUNICATION TRAINING INSTITUTE ...... 59 4.7 STRENGTHENING THE SECTOR...... 60 4.7.1 NATIONAL INTERNET REGISTRY OF AFGHANISTAN ...... 61 4.7.2 INCUBATOR PROGRAM AND SKILLS DEVELOPMENT ...... 62 4.7.3 SKILLS DEVELOPMENT PROGRAM FOR UNIVERSITIES AND PRIVATE INSTITUTIONS ...... 62 5. PROGRAM IMPLEMENTATION ACTION PLAN (3 YEARS) ...... 63 6. IMPLEMENTATION METHODOLOGY ...... 63 7. CHALLENGE, CONSTRAINTS AND SOLUTIONS ...... 64 7.1 RISK ASSESSMENT OF MAIN CONSTRAINTS ...... 64 8. COSTING/BUDGETING ...... 66

Ministry of Communications and IT, Islamic Republic of Afghanistan 3 E-AFGHANISTAN: National Priority Program Proposal May, 2011

List of Abbreviations

AECA_ Afghanistan Electronic Certification Authority AfCERT- Afghanistan Cyber Emergency Response Team APNIC- Asia Pacific Network Information Center APO- Afghan Post Organization APRA- Afghanistan Regulatory Authority ATRA - Afghanistan Telecom Regulatory Authority CCN- Copper Cable Network CDMA- Code Division Multiple Access CIO - Chief Information Office DCN - District Communication Networks DL- Driver License DSL- Digital Subscriber Line ECA - Electronic Certification Authority EGIF- E-Government Interoperability (Software) Framework e-GMS – e-Government Metadata standards EGRC - E-Government Resource Centre EPs- Exchange Points G2B - Government to Businesses G2C - Government to Customer GDP- Gross Domestic Product GIRoA- Government of Islamic Republic of Afghanistan GSM- Global System for Mobile GWIT - Government Wide Information Technology ICT- Information and Communication Technology IDB - Information and Communication Training Institute IDLG- Independent Directorate of Local Governance ISP- Internet Service Provider ISPM - IS Program Manager ISPs - Internet service providers LIRs- Local Internet Registry MCIT - Ministry of Communication and Information Technology MCIT - Ministry of Communications and IT MCP- The Management Capacity Program

Ministry of Communications and IT, Islamic Republic of Afghanistan 4 E-AFGHANISTAN: National Priority Program Proposal May, 2011

MoAIL- Ministry of Agriculture, Irrigation and Livelihoods MoE- Ministry of Education MoECO- Ministry of Economy MoF- Ministry of Finance MoI- Ministry of Interior MoJ- Ministry of Justice MoPH- Ministry of Public Health MoPW- Ministry of Public Works MRRD- Ministry of Reconstruction and Rural Development NAPs- Network Access Points NICTA- National ICT Council of Afghanistan NICTAA - National ICT Alliance of Afghanistan NICTCA - National ICT Council of Afghanistan NID- National Identity Card NIRA - National Internet Registry of Afghanistan NIRs - National Internet Registries NIXA- National Internet Exchange of Afghanistan NPP- National Priority Program OFC- Optic Fiber Communications PAD - Project Appraisal Document’s PBC - Project Budget Committee PICU - Program Implementation and Coordination Unit PICU- Project Implementation Unit PKI- Public Key Infrastructure PMOs - Project Management Offices PSC - Project Steering Committee RFC- Request for Comments ROI - Return on Investment SME- Small and Medium enterprises TBIC - Techno-park Business Innovation Centre TDF- Telecommunications Development Fund TTC - Telecommunication Training Centre UPS - Uninterrupted power supply VCN- Village Communication Networks

Ministry of Communications and IT, Islamic Republic of Afghanistan 5 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Executive Summary

The National E-Afghanistan Program is being implemented by the Ministry of Communication and Information Technology (MCIT) with collaboration with all other entities involved in establishing ICT systems and solutions, including the to be established independent authorities (road, rail, mining, civil aviation). This program builds on the 2003 ICT strategy, is in line with the Telecommunications Law, supports the objectives of the ANDS and includes the establishment of an E-Afghanistan Portal – a one stop online service provider for citizens and a portal to all other core services of government. It also progressively seeks to deliver e-Governance solutions through improved interoperability and SMART management systems. This important program demands a strategic partnership between the public and private sector given the important contribution private capital can make in improving inter-connectivity across the entire country.

In consolidating existing gains, the E-Afghanistan Program will directly contribute to the Government’s efforts for a broad-based reconstruction effort. A modern telecommunications sector, incorporating e-Governance initiatives, will enhance the effectiveness, efficiency and transparency of the public sector and the provision of social services. All Afghans, men and women alike, will in time be able to access ICT to access information and social services, foster the rebuilding process, increase employment, create a vibrant private sector, reduce poverty and support under privileged groups. Moreover, newly established authorities will invest in SMART e-Governance solutions that minimize fiduciary risk exposure and allow for transparent and accountable business transactions.

The E-Afghanistan program provides an opportunity to bridge the communications gap that exists within the country whilst also creating new systems of data and information management within a model of new public management. To establish greater national unity, it is important that in time all districts, major villages and even remote rural areas are able to communicate with , with one another, and with the rest of the world. ICT enables the kind of informal social and economic discourse necessary to strengthen civil society and the promotion of economic activity (e.g. access to markets and pricing). To this end, the E-Afghanistan Program will also be closely coordinated with the National-Regional Integrated Resource Corridor Program, the SME Support Facility and the Advanced Reform and Restructuring Program under the Governance Cluster.

The program will: (i) improve access to telecommunication including phone and Internet services in rural and urban areas with (3.3m connections); (ii) lower unit costs of local cost landlines and mobile phones; (iii) generate jobs in the telecom industry; (iv) increase government revenues from telecommunications sector (US$100 million); (v) allow the adoption of e-Governance and national ID card project presently under preparation; and (vi) allow the introduction of fiber optic project complete for connection with Pakistan, Iran and Uzbekistan and the 80% completion of fiber optic networks to connect other countries. E-Governance will also focus on support to increased interoperability, with a focus on the provision of basic and essential citizens services accessible online (driving license applications, birth certificates, etc).

The program will also encourage full participation in the global Information Society, a task in which the ICT Council has an oversight role. In terms of ICT, the focus of investment will be on: (i) establishing policies and procedures; (ii) strengthening the legal framework for ICT; (iii) creating ICT standards; (iv) establishing proper procedures for data integrity, security and access; and (v) ensuring privacy protection. In addition to taking the National e-Governance strategy to the next level, the program will also seek to create various automated national registries, including in land ownership, ID cards, passports and other licenses. Moreover, and of great significance to linking e- Governance solutions with service delivery, over time interoperability will be built into the overall E- Afghanistan program, allowing the development of a unified national portal that provides easy user access to all vital government services.

Ministry of Communications and IT, Islamic Republic of Afghanistan 6 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Program Goal and Objectives

The ICT sector delivers vital communications based infrastructure in support of socio-economic and other development objectives. The E-Afghanistan Program, which includes ICT and broader e- Governance interventions such as the National E-Afghanistan Portal, and is being coordinated under pillar three of the ANDS and has the following objective: “To make affordable communication services available in every district and village of Afghanistan through enabling market economy, so that all Afghans, men and women alike, can use ICT to expeditiously improve government, social services, foster the rebuilding process, increase employment, create a vibrant private sector, reduce poverty and support underprivileged groups and to make Afghanistan a forefront member of the E- global society”.

Executing Ministries Ministry of Communications and IT is the lead organization for the E-Afghanistan program and the rest of the government agencies such as MoF, MoJ, MoI, MoAIL, MoEco, MoPH, MoE, MRRD, MoPW, MoT, Municipalities and some independent directorate will be partners in the implementation of this program.

1. Program Proposal

1.1 Situational Analysis

1.1.1 Background

Afghanistan started rebuilding itself after almost three decades of war and destruction, when the Transitional Government came into power in 2002. The country did not have advanced communications system, and even the rudimentary ones were also almost totally destroyed during the war. (A brief History of Telecommunication in Afghanistan highlighting major milestones achieved during last 150 years is given at Annex 1). The importance of rebuilding communication systems and giving the nation the benefits of latest technologies and advances in the Information Technology for overall growth and reconstruction of the country was immediately realized. Good communication systems and the introduction of IT was found necessary for growth in all other sectors, be it security, governance, reconstruction and development, education or trade/business. Efforts were initiated for infrastructure building for better communication and use of information technology. The Ministry of Communication and Information Technology (MCIT) was given the responsibility to lead the sector to fast growth and development. There has been lot of progress since then. In fact, the communications revolution has been a major success story in the country. The growth of the information and communication technology (ICT) sector has had significant impact on economic growth and development. It has connected the whole country, improved efficiency of the government, and provided impetus to private sector growth.

1.1.2 Achievements during 2001 to 2010

The major indicators of success in the telecommunication sector include:

GSM Subscribers 14,855,235 CDMA Subscribers 96,947

Ministry of Communications and IT, Islamic Republic of Afghanistan 7 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Landlines 63,533 Phone Penetration 55% Internet Subscribers 0.8 million Internet Users 2.5 million Investments in $ Millions 1,563 Telecom Base Station 3,822 Population Coverage Over 80%

The telecommunications sector started its development activities after Bonn agreement in 2002, when telephone penetration was less than 0.05% in the country. Telecom infrastructures were mainly damaged and telecom services were moving towards a stage of non-existence. It was a real challenge for the newly established Government of Afghanistan to meet the telecommunications requirements of the residential and business markets. The government took a pragmatic approach by ending its monopoly on the telecom sector and opened the market to private investment, applied minimum regulations and provided the required spectrum and support for the wireless access, backhaul and national backbone communication networks.

Currently, Afghanistan has more than 12.5 million telephone subscribers (50% phone- density), which are comparable with the figures in other regional countries. Investment in the telecommunications sector, as per the reports provided at the end of the last quarter of 2010, exceeds US$ 1.5 billion, and about 80% of the country’s population has access to telecommunications services. The remaining 20% of the population who do not have access to telecom services live in remote rural areas and are expected to be covered through the Universal Access Program.

There are five licensed cellular network operators at national level (4 GSM operators, one CDMA operator) and there are 23 small and medium size ISP licensees in the country serving close to about 1,000,000 Internet users throughout the country. There is strong competition in the telecommunication market. As a result, the consumers have many choices for selection of service providers to meet their needs and requirements.

In addition to the above-mentioned operators, the Afghanistan Telecom Regulatory Authority (ATRA) has also issued an LFSP license to Wasel Telecom. In accordance with the license, Wasel Telecom is authorized to provide CDMA services to 24 districts in four provinces of Balkh, Jawzjan, Baghlan and Kunduz. The latest report received from Wasel Telecom shows that this company has so far invested over US$24 million and is providing reasonably cheap and reliable voice and Internet services to around 51,000 subscribers.

In order to provide access to telecommunications services in rural areas, ATRA has started making use of the Telecommunications Development Fund, TDF (or USO), which is financed by 2.5% of gross income of the telecom operators in the country. The first Rural Telecom Development project was awarded in June 2009. Until now ATRA, using the TDF fund has enabled some of the operators to extend their area of coverage to 40 ‘very hard to reach’ districts which would have been impossible otherwise.

Quality of service is one of the main objectives and ambitions of ATRA. For this very reason, ATRA has purchased quality of service facilities and has trained a number of personnel to carry out tests in various parts and areas of the country, simply to make sure that the operators are fulfilling their obligations based on the standards set in their licenses and to make sure that the end users do receive quality services which they need and deserve.

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1.1.3 Achievement Highlights during 2001 - 2010

 Over a period of five years from 2002 to 2007, there was tenfold increase in the telephone subscriptions, indicating an annual growth rate of about 60 percent. In 2002, the country had subscription population of some 50,000, which is estimated to have risen to about 14 million in 2010. The country has evidently come a long way from having just one phone for every 540 persons in 2002 to having one phone for every two persons in 2010. Internet service was almost totally absent in 2002, and now there is an Internet subscription population of some 2 million with 32 Internet service providers.

 Afghanistan’s telecommunications industry has been growing rapidly. As of early 2010, the number of mobile telephone subscriptions was estimated to be about 13 million and the mobile telephone networks covered 80 percent of the population. The reach of mobile telephones, achieved primarily through private sector participation, creates a widely available and used platform for public service delivery.

 Intercity and international connectivity has improved significantly. The national fiber optic backbone network now connects 20 provinces and Pakistan, Iran, Tajikistan, and Uzbekistan. This is a major milestone in connecting Afghanistan to international telecommunications networks. Fibre Optic Network is likely to generate additional revenue of about USD 30-50 million every year and total cost of network will be recovered in 3-5 years. Copper Cabling Networks have been built in the major provinces of the country and it is now planned to provide these services for another 10 Provinces of the country in 1390.

 The telecom sector is also a success story in private sector development with about 6 big players in the market. The telecom sector generates revenues of over USD 120 million every year, which forms 12% of the total government revenue in Afghanistan. The revenue is constantly increasing.

 The telecom sector has attracted Foreign Direct Investment of about USD 1.6 billion and created 60,000 jobs directly or indirectly.

 The Ministry of Communication and IT (MCIT) has been able to put in place the essential legal and regulatory framework with the enactment of the Telecommunication Law and the establishment of the Afghanistan Telecom Regulatory Authority (ATRA). ATRA was formed in 2005 and is working well. The Postal Code has been introduced for the first time in last 9 years at the district level and is likely to improve operations in the Postal Sector.

 The Ministry has created one of the most advanced National Data-Centre in the Region for providing state-of-the-art IT facilities to the Government of Afghanistan.

 MCIT has been able to make shift from being a service-deliverer to a policy-maker.

 The Ministry has high budget execution rates (in the range of 60%), which is an acute problem in other ministries. The reasons for higher execution rates include: a) very tight monitoring at the highest levels in the ministry; b) starting tendering processes well-in- advance without waiting for receipt of actual budget approvals; and c) maintaining its own procurement directorate. The Procurement Directorate has been able to deal with all procurements and related issues. The procurement has been a major bottleneck in other ministries in achieving higher budget execution rates. MOCIT has been innovative in preparing ground for procurement contracts before the budget comes so that there are no delays.

Ministry of Communications and IT, Islamic Republic of Afghanistan 9 E-AFGHANISTAN: National Priority Program Proposal May, 2011

 The Ministry has been able to tackle its capacity problems to a large extent and has been able to support development of the sector through the Information and Communication Training Institute (ICTI), which prepares about 50 Telecom Engineers every year. There is only about 2% international staff even in private companies. The Ministry buys capacity only for the short-term in highly technical areas. The way the Ministry has solved its problem of capacity can be an example to be followed by other ministries. The management capacity problems of the Ministry have been solved through the Super-scales and MCP programs of the Government of Afghanistan. The Ministry received approval of the Civil Service Commission for placement of 150 IT managers in different ministries on higher salary rates due to market conditions.

 The use of computers in the departments and agencies of the Government of the Islamic Republic of Afghanistan (GIRA) has been growing in the last five years thanks to the large number of public sector reforms and development projects that have been undertaken during this period, and to the efforts of the departmental managements to integrate ICTs in the operations of their departments. Almost all the 35 ministries and departments have some computer hardware and foundation software resources; most of them have web sites of their own. Some of the more progressive ministries and departments have developed application software as well, which address agency specific management and operational needs. Many others are now in the process of developing similar application software.

1.1.4 Challenges for the Future

The Ministry of Communication and IT has been able to successfully meet the first generation of challenges in the sector but now is faced with second and third generation ones. The physical infrastructure for basic telephone and IT has been put in place but it needs to be further expanded, modernised and deepened. The sector has to move from providing basic services to providing value added services to its customers especially in the area of e-Governance. The Ministry has to strengthen its role as facilitator, regulator and policy-maker to face the challenges from the introduction of new technologies and services and much wider coverage. Another challenge is to keep pace with the developments in this highly capital-intensive and fast-changing sector so that the people of Afghanistan continue to get benefits of the latest in communication and IT and remain competitive.

In addition to the challenges of the future, the Ministry is also facing certain problems in its current operations such as:

a) Funds for expansion of its coverage, modernising of its networks and bringing benefits of technology to the government and the people of Afghanistan b) Problem of security in execution of its projects, which results not only in delays but also in increase of costs c) Problems of no power-supply, acquiring lands and getting right of way with the municipalities in execution of projects d) Problems in coordinating IT projects being directly executed by donor agencies or their direct contractors e) Enforcement of the Telecom Law is facing problems with the police and due to un- registered SIM cards f) Retention of competent staff in the Ministry due to mismatch between salary levels in the government and the market

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g) Shift of approach from Telecom to e-Governance in the government requires cooperation of different ministries and departments, as well as changes in procedures/processes, perceptions and attitudes across the government, which is not sufficiently forthcoming h) Academia, private sector, and ministries have to build their capacity to meet the challenges in IT and Telecom sectors i) There is no vision or guideline for Public-Private Partnership, preventing MCIT from taking proactive initiatives in the sector; and j) Many players in the Telecom sector want international loans but they are not getting them because Afghanistan is not meeting IMF conditions.

The legal and regulatory framework of the country in the Telecom and IT sector needs be brought in line with the developments in the sector. Many initiatives need to be taken in this direction. The legal framework requires enactment of ICT and Postal Laws; the regulatory frameworks are needed for cyber security, e-Governance, digital signatures, electronic certifications, e-Government interoperability, etc; and new policies are needed for Fibre- Optic Open Access, Bandwidth Allocations. There is also a need for the ICT law to be revisited.

There is need for strengthening the Afghanistan Postal Regulatory Authority (APRA) by appointing a Chairman and other commissioners. The capacity within the postal department needs to be improved. Postal department is not getting required amount of funding from the Ministry of Finance. The capacity in the overall ministry needs to be further strengthened to facilitate changes in the sector. The Ministry itself needs to be restructured to meet the new challenges by doing pay-and-grading reforms, establishing ICT regulator, E- Governance Directorate, Cyber Security Centre, and a Chief Information Officer Cadre.

The Telecommunication networks require to be expanded for Telephone Line Networks, Broadband connectivity, optic fiber network and internet exchange. In order to provide the value added services in the government to improve its efficiency, many e-governance initiatives need to be taken up such as implementing the National Identity Cards Project, establishing the e-Governance Resource Centre, developing websites of different ministries (and then bringing them under one umbrella website to provide information and e-services of the government), automated national registries including in land ownership, Passports, mobile applications in the areas of health, agriculture, education, and good governance etc. There is lot of scope for developing Mobile-services for the government and the private sector needs to be energized for this purpose.

ICT also offers the possibility of addressing some of the challenges facing the country, while creating new opportunities for inclusive growth. It will be critical for the Government to find ways in which it can improve governance, expand the reach of public services, and accelerate economic growth. Even with these challenges, Afghanistan is much better placed to realize the opportunities afforded by its strategic location, the growing number of educated young women and men, and improved connectivity with the world through better transport and communications infrastructures. Afghanistan might thus begin to exploit some of these opportunities to accelerate economic development and promote social inclusion and participate in the global information and knowledge economy.

Wider access to and use of ICT will accelerate economic growth. If broadband subscriptions increase to 10 percent of the population by 2015, the positive impact on GDP due to this growth could be upwards of US$340 million. Widespread digital telephones offer a means for citizens and the Government to communicate, and permit improved monitoring of

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programs and beneficiary verification. There is a significant opportunity to grow phone and Internet services, attracting investments, creating jobs, and connecting more businesses and citizens to regional and global networks and markets.

As the number of international and non-government organizations and private companies has grown, so has the exposure of especially young Afghans to technologies such as the Internet; Internet users are estimated at about 5 percent of the population. However, the retail Internet services market remains limited to major urban areas such as Kabul, Herat, Ningarhar and Mazar-e-Sharif. The availability of lower cost international Internet connectivity, plus the growing interest of the Government to support Internet market growth through policy measures and specific programs, should lead to an increase in availability and usage. CCN (Copper Cable Network) Project will be the best enabler to achieve this objective of providing affordable Digital Telephones and the Internet Services through the Copper Lines by using Dial-up and DSL Technologies.

Thus, although MCIT and the Telecom and IT Sector in Afghanistan have done very well in the past and have prepared foundations for faster growth in all sectors by improving communication and IT, there are significant challenges to be faced in future to further expedite the expansion and growth in the sector and provide value added services. The goals and objectives of the E-Afghanistan National Priority Program have to be formulated keeping them in mind.

2. Program Goal & Objectives (Components)

The ICT Sector strategy vision, which was first stated in May 2003 and recently presented to the ICT Council, is: “To make affordable communication services available in every district and village of Afghanistan through enabling market economy, so that all Afghans, men and women alike, can use ICT to expeditiously improve Government, social services, foster the rebuilding process, increase employment, create a vibrant private sector, reduce poverty and support underprivileged groups”.

The E-Afghanistan National Priority Program aims to fulfill the above vision with the following goal:

“To create a modern and efficient Information and Telecommunications sector and e-government to enhance the effectiveness, efficiency and transparency of the public sector, provide for social services, develop a vibrant private sector, and create a connected and productive society.”

The Program has been divided into seven components, namely:

1. Strengthening of Legal, Regulatory, Policy and Institutional Frameworks. This component aims to create the enabling environment for the working of the ICT Sector.

2. Expanding Telecommunication Network. This component aims to provide the physical backbone to the ICT Sector by creating the necessary infrastructure.

3. E-Government. This component aims to provide value added service in the government using ICT to increase efficiency, effectiveness and transparency in Government.

Ministry of Communications and IT, Islamic Republic of Afghanistan 12 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4. M-Government. This component aims to provide government services using mobile telephony to increase efficiency and effectiveness of government services.

5. Postal Sector Modernization. This component aims to modernize the postal sector to improve its reach and service delivery.

6. Strengthening the Ministry. This component aims to strengthen the Ministry of Communication and Information Technology so that it can meet the current and future challenges and do its role as a facilitator, regulator and policy-maker efficiently and effectively.

7. Strengthening the Sector. This components aim to strengthen the Sector through appropriate interventions.

Figure 1: E-Afghanistan NPP and its Components

Strengthening of Legal, Regulatory, Policy and Institutional Frameworks

Expanding Telecommunication Network

E-Government

M-Government

Postal Sector Modernisation

Afghanistan

- E Strengthening MCIT

Strengthening the ICT Sector

3. Strategy

The achievement of the E-Afghanistan Program (as in 2.0 above) requires multi-pronged action. The strategy has to necessarily build on the successes of the past, take the current challenges in consideration, and provide direction for the future. The basic elements of the strategy can be described as follows:

1. Building on successes of the past to meet challenges of the future 2. Building capacities of the Ministry, sector institutions, the private sector, and the education streams feeding the sector 3. Provision of latest and value added services 4. Productive and efficient government and people of Afghanistan

The elements of the E-Afghanistan Program Strategy are depicted below.

Ministry of Communications and IT, Islamic Republic of Afghanistan 13 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Figure 2: E-Afghanistan Strategy Building on Building Productive Capacities of the Successes of Ministry, Sector Provision of and efficient the Past to Institutions, the Latest and Government meet private Sector Value added and People and education Services of challenges of streams feeding the Future Afghanistan the Sector The sector started seeing fast-track developments after the reconstruction work started in 2002, and since then there have been many achievements. (These achievements have already been detailed in the Section 1.0: Situational Analysis). The physical network has been created providing telecom coverage to about 80% of the population and it is being upgraded through the latest technologies for efficiency and better service. The Telecom Law is in place and now the ICT Law needs to be enacted. The service-providers in the sector are doing good job and the private sector has grown fast and successful in the sector. This is one of the areas of the economy which is doing really well. The sector is generating large revenue for the government. There are achievements in almost all components of the sector. The Ministry has been able to create substantial capacity but still needs to be strengthened in order to achieve more. Future interventions need to build upon the achievements of the past. This is the theme, which cuts across all interventions suggested in the Program.

The second element of the strategy is to build capacities of all actors in the sector, be it the Ministry or the sector institutions, the sector itself (meaning downstream players and other stakeholders) and the education streams feeding the sector. There are different components of the program, which are meant to achieve this.

The capacity building will need first of all the establishment of strong physical infrastructure in terms of Copper Cabling Networks, Optical Fiber Networks, Microwave Networks, WiMax Networks and also GSM Technologies. This will be taken up under Component 2: Expanding Telecommunication Networks. In order to maintain order in the sector and create conditions for growth, it is necessary to have a strong legal, regulatory, institutional and policy framework. There has already been progress in this regard but much more needs to be done in the future and it will be accomplished through Component 1: Strengthening of Legal, Regulatory, Institutional and Policy Frameworks. There is a component of the sector, which has been functioning for a long time, i.e. the Postal Services. These services are still very useful to the common public and need to be made more and more friendly, efficient and productive. This will be achieved by modernizing the Postal Sector through Component 5: Modernizing Postal Sector of the Program. In addition to these interventions, it is necessary that the Ministry of Communications and Information Technology (MCIT), which is leading the development of the sector, has enough capacity to lead and meet the challenges of the present and the future. Massive capacity building efforts have to be taken up in the Ministry and are planned through the Component 6: Strengthening the MCIT. The developments cannot be sustained unless the sector has capacity to support the initiatives and make best use of the facilities created. The educational facilities have to be strengthened or created to meet the requirements of the sector, and also to provide expertise for downstream value-added and sector-critical services. This will be achieved through the Component 7: Strengthening the ICT Sector.

Figure 3: Components of the Program for Capacity Building

Ministry of Communications and IT, Islamic Republic of Afghanistan 14 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Building Capacities of the Ministry, Sector Institutions, the ICT Sector and the Education streams Comp 7 : feeding the Sector. Comp 6 : Strengthening the Strengthening ICT Sector MCIT Comp 5 : Postal Sector Modernisation Comp 2 : Expanding Telecommunication Network Comp 1 : Strengthening of Legal, Regulatory, Policy and Institutional Frameworks

The objective of building infrastructure and capacities is to provide value added services to people. The value added services planned under this program are to improve the efficiency and service delivery channels of the Government. The Government remains the most important service provider and citizens remain the consumer so it is necessary to first develop capacities in the government for the deployment and maintenance of value added-services. The deployment of these services will be two-prong; it will target both government agencies and the public as well. It is presumed that once these services are in place they will start percolating down to the public in addition to the government. The government will be able to better provide its services, which will impact the public. These value-added services are to be provided by components 3 and 4 for E-Government and M- Government respectively. Figure 4: Value Added Service

Component 3: E-Governance Value Added Services Component 4: M-Government

The infrastructure development, increased capacities of the ICT sector actors and the value added services all are meant to increase the productivity and efficiency of the government, private sector and the public. It is likely to result in the improvement in the quality of life of people. These are the expected impacts of the E-Afghanistan Program.

All interventions in the program are being designed with national coverage in mind, although coverage may be phased in over time due to financial and implementation capacity constraints. The implementation in insecure areas may face problems due to security but these problems will be tackled with the help of security agencies, both national and international. For example, the insurgents may threaten to damage the costly infrastructure like mobile towers, as is happening in Helmand Province. The Ministry will try to find solutions to these problems in collaboration with all other stakeholders (e.g. the Helmand problem is being addressed through shifting of critical infrastructure, like transmission towers, to secured military zones). The insurgents try to disrupt the

Ministry of Communications and IT, Islamic Republic of Afghanistan 15 E-AFGHANISTAN: National Priority Program Proposal May, 2011 communication channels because it has immediate impact on the operations of the private and public sectors though the security agencies have their secured communication channels.

4. E-Afghanistan Components

4.1 Strengthening of Legal, Regulatory, Policy and Institutional Framework

The aim of this component is to create the enabling environment for the working of the ICT Sector by establishing legal, regulatory and institutional frameworks and developing appropriate policies. The sub-components of this component are the following:

Ministry of Communications and IT, Islamic Republic of Afghanistan 16 E-AFGHANISTAN: National Priority Program Proposal May, 2011

ICT Law

Legal

Postal Law

Cyber Security

Broadband

E-Governance

Digital Signatures

E-GIF

Regulatory

IT Audit Strengthening of Legal, Electronic Regulatory, Certification Policy and Authority Institutional Framework Quality of Service

Telecom Development Fund Regulations

Strengthening the Sector Regulations

ICT Council

Institutional ATRA

APRA

Broadband

Policy Revision of ICT Policy

4.1.1 Legal Framework:

This sub-component aims to provide the legal foundation for the ICT Sector. It has been identified that the sector immediately need two laws, namely:

Ministry of Communications and IT, Islamic Republic of Afghanistan 17 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.1.1.1 ICT Law

The ICT Law has already been drafted. The aim of the draft Law is to provide for the facilitation and regulation of electronic communications and transactions; to provide for protection of consumers and personal data in the electronic environment, to set out the framework for domain name registration and regulation, the framework for content regulation, to prevent abuse of information systems; to encourage the use of e-government services; and for related matters. The law is expected to address issues such as legal recognition of electronic /digital signature and formation of electronic contracts (affecting transactions both in public and private sector), content regulation, competition regulation, electronic evidence, data privacy intellectual property rights, encryption and security, financial and banking sector law and regulation relating to electronic transfers and settlements, taxation of transfers, customs, jurisdiction, dispute resolution civil and criminal offences, limitations of liability of internet services providers, cyber piracy and digital rights management, facilitation of e- government and cross border interoperability of e-commerce frameworks affecting trade. Because the overall purpose of the Act is to enable and facilitate electronic communications and transactions in the public interest, the Law will specifically:

(a) Recognize the importance of the information economy and information- society for the economic and social prosperity of Afghanistan; (b) Promote the understanding, acceptance of, and growth in the number of electronic transactions in Afghanistan; (c) Remove and prevent barriers to electronic communications and transactions in Afghanistan resulting from uncertainties over writing and signature requirements; (d) Promote legal certainty and confidence in the integrity and reliability of data messages and electronic commerce, and to foster the development of electronic commerce through the use of electronic signatures to lend authenticity and integrity to correspondence in any electronic medium; (e) Promote the development of the legal and business infrastructure necessary to implement secure electronic commerce; (f) Promote technology neutrality in the application of legislation to electronic communications and transactions; (g) Promote e-government services and electronic communications and transactions with public and private bodies, institutions and citizens; (h) Ensure that electronic transactions in Afghanistan conform to the highest international standards; (i) Encourage investment and innovation in respect of electronic transactions in Afghanistan; (j) Develop a safe, secure and effective environment for the consumer, business and the Government to conduct and use electronic transactions; (k) Promote the development of electronic transactions services which are responsive to the needs of users and consumers; (l) Ensure compliance with accepted international technical standards in the provision and development of electronic communications and transactions;

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(m) Minimise the incidence of forged data messages, intentional and unintentional alteration of data and data messages, and fraud in electronic commerce and other electronic transactions; (n) Ensure efficient use and management of the “.af” domain name space; (o) Ensure that, in relation to the provision of electronic transaction services, the special needs of particular communities, areas and the disabled are duly taken into account; and (p) Ensure that the national interest of Afghanistan is not compromise through the use of electronic communications.

The Draft Law has been sent to the Ministry of Justice (Taqnin Department) for vetting and approval. Once approved by the Ministry of Justice, it will be submitted for the approval of the Cabinet and the Parliament. Thereafter, the Law will be submitted for signature of the President and then gazette for implementation.

4.1.1.2 Postal Law

The Postal Law has been drafted with the following objectives:

 To encourage investment and improvements in the postal sector;  To foster effective competition and protect consumers from unfair trade practices in the postal sector;  To ensure the safety and integrity of Postal Services; and  To ensure that the Universal Service Obligation is adequately funded and efficiently carried out.

The Law envisages establishment of a Postal Commission. The object of the Commission is to encourage the expansion and improvement of Postal Services in Afghanistan, in terms of quality, availability, and price, to the ultimate benefit of consumers, while ensuring that the Universal Service Obligation is adequately funded and efficiently carried out. The functions of the Commission are:  To foster Competition and improvements in the provision of Postal Services;  To protect consumers and give them redress from unfair trade practices in the supply of Postal Services;  To monitor the performance of the Corporation against the Performance Agreement;  To monitor the postal sector generally, and in particular, in relation to Postal Operators: . levels of investment in or in relation to Postal Services; . availability and standards of Postal Services; . the price of Postal Services; . the distribution of Postal Services; and . other matters relevant to the Commission’s functions; . Together with the Designated Postal Administration for Afghanistan, to represent Afghanistan internationally in respect of postal matters; . To license and regulate Postal Operators and administer this Law impartially and objectively;

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 To educate the public and Postal Operators about the functions of the Commission, the obligations of Postal Operators, and the rights of users of Postal Services;  To advise the Minister on matters relating to the Commission, the Corporation, postal sector policy, and all other postal matters; and  To carry out any other function conferred on it by or under this Law or any other Law.

The Draft Law has been sent to the Ministry of Justice (Taqnin Department) for vetting and approval. Once approved by the Ministry of Justice, it will be submitted for the approval of the Cabinet and the Parliament. Thereafter, the Law will be submitted for signature of the President and then published publicly to begin implementation.

4.1.2 Regulatory Framework

The ICT Sector requires very strong and effective regulatory frameworks for smooth, effective and productive functioning of various parts of the Sector. The following frameworks are to be developed in the next 3 years:

4.1.2.1 Cyber Security Regulations

With the introduction of different ICT based technologies in the country, Afghanistan is moving towards embracing electronic culture in its day-to-day dealings. As these technologies are becoming popular and being widely used, it is important to put in place technological infrastructure and legal frameworks, which will safeguard the private and enterprise data flowing through these ICT based infrastructures. MCIT has already drafted an ICT law which has addressed broader cyber security related issues but in order to fully implement the Law there is need for further development of regulations in more focused areas.

Privacy of data will give confidence to: (a) entrepreneurs to do business in Afghanistan through e-commerce; (b) the government to roll-out e- administration and e-services; and (c) the public to share their personal data with both government and enterprises through electronic service delivery channels.

MCIT will be developing these regulations in the next year after the ICT Law is enacted. A Consultant will be hired to develop draft regulation suiting the needs of Afghanistan and then complete the stakeholder consultations. The final draft will be approved by the Cabinet and thereafter; the regulations will be operationalized. No funds are earmarked for this purpose and will have to be arranged.

4.1.2.2 Broadband Regulations

As MCIT is planning to open up the market for Broadband Technologies (like WiMax, 3G, LTE, etc.) and the existing laws and regulations dealing with ICT technologies are not supportive of Broadband, it is necessary to put in place

Ministry of Communications and IT, Islamic Republic of Afghanistan 20 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Broadband Regulations. These regulations will enable deployment of broadband technologies and their application.

The Ministry is recruiting a consultant for this purpose in 3rd quarter of 2011 and the draft regulations are likely to be ready by end of 2011. The draft regulations will go through the process of stakeholder consultations before submission to Cabinet for approval and thereafter operationalized.

4.1.2.3 E-Governance Regulations

A growing number of regulations will be issued concerning e-government and e- administration over the coming years, be it in the form of laws, government decrees, ministerial or municipal decrees. The reason for this trend is that in public administration it is not enough to provide technical solutions (e.g. the management of e-documents and vouchers or the application of electronic signatures), it is also necessary to create the legal environment for them. In many cases the institutions introducing information technology systems for e- administration and electronic document management also need the provision of the related special legal regulations, modifications and internal rules (Rules for Organization and Operation), procedure, filing rules, data protection rules, information security rules etc.

In the preparatory, but at the very latest in the planning phase, e-Governmental projects require profound assessment of the scope and level of direct and indirect impacts of binding laws and bylaws that affect the implementation. Thorough analysis of the regulatory environment will reveal which bylaws and higher regulations may need modification or re-drafting.

MCIT, after the promulgation of the ICT law will carry thorough study of the required e-Governance regulations and will develop them over time for the next 3-5 years.

4.1.2.4 Digital Signatures Regulations

Digital signature or digital signature scheme is a type of cryptography. For messages sent through an insecure channel, a digital signature gives the receiver a guarantee that the message was sent by the intended sender. A digital signature was motivated by and is analogous to a handwritten signature.

Digital Signature is an essential part of two-way trusted and reliable communications using the Internet. To use digital signatures in communications, there needs to be a digital signature infrastructure to oversee all aspects of using digital signature. Ministry of Communications and IT will establish an entity that would be responsible for digital signatures in the country. This entity together with Electronic Certification Authority will make sure that transactions and online communications are using the standard Electronic Certificates. Necessary regulations will be developed for facilitating operation of the Digital Signature entity and maintaining order in the Sector for this purpose. The objectives of the Regulation will be:

Ministry of Communications and IT, Islamic Republic of Afghanistan 21 E-AFGHANISTAN: National Priority Program Proposal May, 2011

 Establishing the Digital Signature Infrastructure  Promoting the use of online transaction and e-commerce by issuing the standard digital certificates.  Supervision of digital certificates used in online transaction and e- commerce

The operationalization of this regulation will involve:

 Understanding basic requirements and conditions for Digital Signature through interviews with Afghan entities.  Study PKI (Public Key Infrastructure) related laws, systems and technologies.  Gather detail requirements for Digital Signature  Establishing law/policy for Digital Signature usage  Develop procedures for the implementation of Digital Signature in the country

4.1.2.5 E-Government Interoperability (Software) Framework

E-GIF has been already prepared by MCIT with funding from the World Bank. The framework contains technical policies, guidelines and standards for achieving interoperability between the technical systems in the government. The developed framework contains in excess of 100 technical standards. The framework also provides guidelines for implementation and compliance. EGRC (E-Governance resource Centre) will take lead in the implementation of the developed e-GIF. Among others, the implementation will include the following major activities.

a) Host the e-Government website developed under the e-GIF project after updating and expanding the contents. b) Design and drafting of the technical standards for comments within the framework of e-GIF. It will involve releasing the Request for Comments (RFC) versions of various standards and after due deliberations submit the same to the National ICT council for final discussions. c) Develop the e-Government Controlled vocabulary in , Pashto and English as per the guidelines given in the e-GIF. d) Expand the localization work initiated by MCIT to include development of ICT terminology in Dari and Pashto and Optical Character Recognition engine for Pashto and Dari. e) Develop the e-Government Metadata standards (e-GMS) for Afghanistan as per the guidelines given in the e-GIF. f) Develop the final versions of the technical standards and policies and implementation procedures for adoption by the various agencies of the government. This will include the data standards for spatial information management and other applications areas, data exchange, information security and other areas of information management as given in the e-GIF. g) Assist in the development and deployment of a repository of XML schemas to facilitate systemic data exchange within the government enterprise as per the guidelines given in e-GIF and in line with the policy of the government to follow Service Oriented Architecture.

Ministry of Communications and IT, Islamic Republic of Afghanistan 22 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.1.2.6 Information Technology Audits

Empowered by ICT Law, EGRC will undertake IT and e-Governance audit role to ensure that various departments and agencies of the government are complying with the approved e-GIF, IT/e-Gov standards and policies with regard to information management, systems, data bases and applications. EGRC will lay down the procedure for IT and e-Gov audit. All the departments and agencies of the government would be required to follow the approved IT and e-Gov procedures. EGRC will assist Ministry of Commerce and Industries and Ministry of Finance to certify products and services of the vendors supplying IT products and services to the government as e-GIF complaint.

Most departments of the government are already in possession of IT systems, databases and applications. These legacy systems may need to be modified and altered to make them e-GIF, e-Gov policies and standards compliant. The EGRC will provide services to evaluate and assess the degree of compliance of the existing systems, databases and applications to these polices and standards and advice how full compliance could be achieved.

At the request of the government agencies and departments, EGRC will undertake various activities for quality assurance of the IT systems, and services that might have been procured or that may be in the process of procurement and deployment. The major activities of EGRC with regard to e-GIF and e-Gov policies compliance and quality assurance would be as follows:

 Develop e-GIF Compliance and IT Audit Policies and Guidelines. EGRC will design and develop the e-GIF compliance and IT Audit policies and procedures based on the study of the international best practices and assessment of the situation prevailing in Afghanistan. Guidelines will be prepared for IT systems designers in the government departments, Software developers and vendors and suppliers to the government with regard to e-GIF compliance. These guidelines should be comprehensive and should cover the complete development life cycle of a system, product or a software application. The Audit report will be published in public domain by MCIT.  Develop e-GIF Compliance and IT Audit skills and know how. EGRC will undertake training activities and other training events including provision of online training materials and self-study guides for the benefit of technical officials and concerned managers in the various government departments and agencies on how e-GIF compliance can be ensured and tested.  Assessment of Legacy Systems. EGRC will, at the request of the various departments and agencies, undertake assessment of the existing IT systems and applications as to the extent of their e-GIF compliance and advice as to what could be done to achieve full compliance.  Assessment of IT systems. Once the ICT law is promulgated, MCIT through this project will develop regulations for the process of assessments of the ICT products and systems in the government agencies. Planned to occur twice every fiscal year, the activity will include but not limited to list of problems, proposed solution, deadline

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for the responsible party to rectify the problem, grading, analysis of hardware, software, personnel and ICT security.

4.1.2.7 Electronic Certification Regulations

The electronic Certification regulations will cover both the Digital signatures as well as regulation of cryptographers. Electronic Certification Authority will give licenses to cryptographers, which will create need for developing regulations to regulate the cryptography algorithms, cryptographers and licensed private certification authorities. This regulation will ensure that the cryptology used for securing data communication over ICT platforms, are secured and unreachable.

A Consultant will be hired for this purpose and these regulations are likely to be ready by the next year.

4.1.2.8 Quality of Service Regulations

MCIT and ATRA (Afghanistan Telecom Regulation Authority) have issued service licenses in the areas of both voice and data. The Telecom Law has limited clauses about quality of service in these areas and, therefore, there is need for separate regulations to streamline and manage quality of services delivered under the issued licenses.

MCIT is starting to roll out mobile applications across government agencies, which will utilize the already installed telecom infrastructure. These applications are a completely new domain and will require regulations on QOS and related tariffs. The World Bank will assist in this regard.

A Consultant will be hired for this purpose this year. Once the draft regulations are ready, the Project Implementation Coordination Unit (PICU) will start Public consultations and finalize regulations based on feedback. MoJ and then Cabinet will approve the Final draft.

4.1.3 Institutional Framework

4.1.3.1 National ICT Council of Afghanistan (NICTCA)

The NICTCA coordinates the activities of all governmental sectors in support of ICT policy and strategy of the Ministry of Communication and Information Technology. The Council ensures close collaboration among the government, the private sector, non–for–profit organizations, the civil society and the international community. It also has responsibility for coordinating national ICT initiatives and projects; facilitating the implementation of programs; facilitating ICT sections of government ministries; providing advisory and technical support services to the government organizations as well to public and private sector organizations. The agency also has the responsibilities for developing national ICT standards and guidelines; ICT consultancy; and public awareness and education role in the area of information and communication technology.

Following are the objectives of Council:

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1. Establish and enforce common standards among all stakeholders of ICTs and endorsing of applications and implementations of common International ICT standards in Afghanistan 2. Provide platform for coordinating efforts in pursue of common goals pertaining to ICT policy development 3. Advocate efforts in advancement and implementation of new technologies (e-governance, internet technologies etc.) across different sectors of life through consultation with stakeholders 4. Advocate changes to ICT regulations and laws and liaise with the appropriate boards or relevant committees in order to foster unity in the ICT field in Afghanistan and create an environment for cooperation among members and sectors (Public / Private & Civil Societies) 5. Discuss national ICT Policies and Strategies in the public sector and provide confirmation, assessments and recommendations to the Government of Afghanistan. 6. Sponsoring and coordinating regular ICT conferences at a National or International level 7. Facilitate the creation of healthy and functioning ICT related industry associations to further the cause of ICT and its usage for improving conditions in Afghanistan 8. Advocate and promote gender balance in the field of ICT in Afghanistan as well as entail international feedback and consultation to improve ICT in Afghanistan based on best-practices and lessons-learned from other country experiences 9. Promote democracy and access to information through ICTs in Afghanistan and envisage government transparency, accessibility, accountability and efficiency through implementation of e-Government projects 10. Coordinate strategic planning and implementation of ICT initiatives throughout Afghanistan while upon request of any government agency or any other ICT Council member, provide advisory support 11. Encourage full scale development of the ICT industry in Afghanistan and assist the country in gaining a competitive edge in the regional ICT industry

Council Members: Source Number of Membership Seats Status Ministry of Communications 1 Permanent Ministry of Education 1 Permanent Ministry of Higher Education 1 Permanent Ministry of Finance 1 Permanent Ministry of Economy 1 Permanent Ministry of Commerce 1 Permanent Ministry of Interior 1 Permanent Ministry of Foreign Affairs 1 Permanent Ministry of Culture 1 Permanent

Ministry of Health, Ministry of Justice and 3 Rotational Da Afghanistan Bank AISA (Afghanistan Investment Support Agency) 1 Permanent National ICT Association of Afghanistan 1 Permanent Parliament 1 Permanent

Ministry of Communications and IT, Islamic Republic of Afghanistan 25 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Civil Service Commission of Afghanistan 1 Permanent Association of Private Media Organizations 1 Permanent Association of ICT Vendors 1 Permanent Consumer Advocate 1 Permanent Total number of members 19

The council’s previous decisions include: 1. Approval of Electronic National ID project and appointed Ministry of Interior, Ministry of Communications and IT, Ministry of Justice and Ministry of Finance to work on the project. 2. Approval of Super scaled salaries for 150 IT positions throughout the ministries. 3. Sanctioning the adoption of standardized content management system for government websites. 4. Approving the policy of pre-approval of IT projects from other government agencies by MCIT.

4.1.3.2 Afghanistan Telecom Regulatory Authority (ATRA)

ATRA has the following duties and authorities: 1. Regulate and supervise Operators and Service Providers, in accordance with the provisions of this law; 2. Supervise compliance by Operators and Service Providers with international obligations entered into by Afghanistan in the telecommunications sector; 3. Provide advice to Ministry of Communications in development of policies, when needed; 4. Issue licenses in accordance with the provisions of this law; 5. Prepare and publish forms relating to issuance of licenses in accordance with this Law; 6. Monitor and control compliance with the conditions included in licenses and the provisions of this law, and make such decisions as are necessary in the context; 7. Assign radio frequencies and grant permits to licensees, in accordance with the national frequency allocation table referred through the Spectrum Management Department; 8. Modify, renew, suspend or revoke licenses and permits, in accordance with this law and other enforced laws; 9. Respond to complaints of users and dispose of the disputes involving Operators and Service Providers, users and other persons, including interconnection, access to and quality of service, numbering, privacy, unacceptable interference and quality of the networks or services of grantees and other services; 10. Specify and approve technical standards for telecommunication equipment and devices; 11. Establish and maintain the numbering plan and assign numbers to applicants; 12. Establish shares of [contributions to] the Telecom Development Fund and supervise the manner for spending thereof; 13. Develop a plan for regulating the affairs related to expenditures of the Telecom Development Fund and the manner for using such funds, in consultation with the Ministry of Communications.

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4.1.3.3 APRA (Afghanistan Postal Regulatory Authority)

The Commission will have 5 members, 4 of whom possess relevant qualifications and are appointed by the Minister, and the fifth being the Commissioner of Post. The Commission with the approval of the Minister of Communications and IT will appoint the Commissioner of Post.

Except for the Commissioner, who will be a full employee of the Commission, members will be appointed and remunerated on a part-time basis, and will meet regularly to govern and direct the policy of the Commission. In addition to this, the Commission’s members will meet to make decisions they are required to make under new postal law.

The Minister will retain the role of determining government policies for the postal sector, and will notify the APRA of these policies. The Commission will be given an independent legal status and juridical personality. Its core objectives will be to encourage the expansion and improvement of the postal sector in Afghanistan, while ensuring that universal postal services are adequately funded and efficiently carried out.

To pursue this object, the Commission will be given a wide range of functions such as fostering competition in the provision of postal services, protecting consumers from unfair trade practices, monitoring the performance of the Corporation against a Performance Agreement, regulating postal operators and administering the postal law, educating the public, and advising the Minister on postal sector policy.

4.1.3.4 Electronic Certification Authority (ECA)

One of important aspect of online transaction is ensuring the security of online transactions. One of the most common methods in securing online transaction is the use of Electronic Certificate (EC) to make sure the transaction is secure and reliable. Usually an authority in a country or region issues EC. The aim is to establish such a Certification Authority namely Afghanistan Electronic Certification Authority (ECA). Unless there is no central certification authority in a country, online business and e-commerce will not grow to the required level.

The Electronic Certification Authority (ECA) will regulate the Electronic Certification, which is an entity to issue digital certificates for use by other parties. ECAs are characteristic of many public key infrastructure (PKI) schemes. There are many commercial ECAs that charge for their services. Institutions and governments may have their own ECAs, and there are also ECAs, which are free of charge. An ECA issues digital certificates, which contain a public key and the identity of the owner. It is really an important step towards implementing e- government and e-commerce in the country. The first step in any online transaction is to have a digital certification so you would be able to start your online transaction. This entity would be able to overlook the overall status of Electronic Certificate in the country. The entity would be responsible for the issuing of such certificates to interested entities inside Afghanistan.

Ministry of Communications and IT, Islamic Republic of Afghanistan 27 E-AFGHANISTAN: National Priority Program Proposal May, 2011

The Objectives of ECA will be:

1. Establishing an Afghanistan Electronic Certification Authority in Ministry of Communications and IT 2. Providing a central body, which would be responsible for issuing Electronic Certificates to all entities that want to use Internet for their business transactions. 3. Supervision of issuing of Electronic Certification in the Country

The following actions need to be taken for establishment of ECA: 1. Recognition of Electronic Certification Authority in the interest of all stakeholders. 2. Understanding basic requirements and conditions through interviews with Afghanistan’s entities. 3. Study PKI-related laws, systems and technologies 4. Drafting the general technical, business, and operational policies for AECA. 5. Develop procedures for establishment and operation of AECA 6. Gather detail requirements for security plan 7. Establishing law/policy improvement direction 8. Establishment of AECA in Kabul.

Afghanistan’s ICT sector has significant private sector participation and includes four competitive mobile telephone companies, one local fixed service provider, and about seven operating Internet service providers (ISPs). There is also a small number of IT services companies. State-owned Afghan Telecom, which is a unified service provider, operates fixed and mobile telephone, Internet, and domestic and international connectivity networks.

4.1.4 Policy Framework

4.1.4.1 Broadband Policy

The World Bank is supporting this component through its project to develop broadband market in Afghanistan. It will support MCIT and ATRA as they develop and implement a national broadband strategy and program including specific initiatives. MCIT and ATRA aim to increase the percentage of Afghans who use Internet from the current 5 percent to 50 percent by 2015. It will also support the required reforms of the licensing regime, spectrum management, and universal service policy. In addition to advisory support for the above, this component will also enable twinning between ATRA and other regulatory agencies in support of capacity building and knowledge sharing on specific regulatory issues.

World Bank funded OFC Backbone Expansion Project has planned to provide Technical Assistance to ATRA and MCIT to evolve Regulatory and ICT Policies and Regulations which will allow Open/universal Access at level playing fields to all the interested Operators/ISPs/Public Sector Users and other Private Companies as operating in this Country. All the interested users should make including the OFC Backbone Network the Communications Infrastructure, accessible by eliminating the possibilities of becoming monopolistic user of any available

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infrastructure. These goals of Universal and Open Access can be achieved by implementing the following steps:

1. Provide technical assistance to MCIT and ATRA to update the ICT sector policy, creating an enabling environment for improved broadband Internet access and adoption in Afghanistan and strengthening the quality of mobile telephone services. Technical assistance activities will include capacity building through collaborative working between ministry and agency staff and external experts.

2. Focus on capacity building and technical assistance on topics such as quality of service, tariff regulation, Internet policy development, and radio spectrum management. When the Government restarts the process of privatizing Afghan Telecom, this policy dialogue will also support that process.

3. The Project will include technical assistance to MCIT focused on updating its ICT sector policy with a focus on enabling increased access to and adoption of ICT services and specifically, broadband Internet services. The Ministry first developed a sector policy in 2003 and updated it in the context of the Afghanistan National Development Strategy in 2005. In 2010, MCIT began revising its strategy in response to recent discussions on national priority programs, Globally, the focus for ICT sector strategies is now shifting to developing policy and strategy to support increased access to and adoption of broadband services. As Afghanistan creates the critical backbone networks and secures international Internet connectivity, and as the number of Internet users grows, the time is right for a review of the sector policy to reflect market and technological developments.

The technical assistance will support MCIT in developing a policy that spurs the both supply and demand to accelerate expansion of broadband networks and their adoption. This will include identifying actions to spur greater private sector participation in the supply of broadband services and to identify potential opportunities for Afghanistan from the evolution in wireless broadband technologies. The developed plan will also focus on facilitating demand for broadband and Internet services through links with sectors such as agriculture, education, health, and rural development. The policy update will also include links with the planned e-Government Strategic Master plan that MCIT is currently developing and IT sector development policy.

4.1.4.2 Revision of ICT Policy

MCIT developed ICT Policy in 2004. The Policy laid down roadmap for the development of the sector and introduced ICT. In the last 7 years, the sector has developed so well that there is a need for revising the previous ICT policy. The revised policy should address the new opportunities and challenges based on the lessons learnt in the past half-decade.

The revised Policy will also incorporate ICT as enabler in both social and economic sectors of the country i.e. e-government, e-health, e-commerce, etc. It

Ministry of Communications and IT, Islamic Republic of Afghanistan 29 E-AFGHANISTAN: National Priority Program Proposal May, 2011

will also address challenges on the areas of development of local ICT literate human resources, ICT enabled curriculum both for primary and higher education, promotion of entrepreneurship and local private sector.

A Consultant will be hired through the World Bank this year and the revisions are likely by end of the year.

4.2 Expanding Telecommunication Network

This component aims to provide the physical backbone to the ICT Sector by creating the necessary infrastructure. It has following four sub-components:

1. Building Telephone Lines Network 2. Building Internet Exchange Point 3. Optic Fiber Network 4. Broadband Connectivity

Figure 6 : Component 2 (Expanding Telecommunications Network)

Cmponent 2: Expanding Telecommunications Network

Building Telephone Building Internet Broadband Optic Fiber Network Lines Network Exchange Point Connectivity

4.2.1 Building Telephone Lines Network

As part of the Afghan National Development Strategy, Ministry of Communications (MCIT) has identified a strategic vision for the Information and Communications Sector of Afghanistan as “making affordable information and communication services available in every district and village of Afghanistan through enabling market economy.” Specific goals included: (i) bringing every resident, every home and school, every business and every public sector institution into the digital age and online; (ii) creating a digitally literate Afghanistan, supported by an entrepreneurial culture ready to finance and develop new ideas; (iii) ensuring that the whole process is socially inclusive, builds consumer trust and strengthens social cohesion.

The MCIT’s plans include provisioning of Internet and Communications Services throughout the Country through different Media like Copper Cabling Networks, Optical Fiber Networks, Microwave Networks, WIMAX Networks and also through GSM Technologies. The most reliable Media for Digital Phones and the Internet Services is physical Copper Lines leading up to homes. MCIT has already laid 200,000 high calibre Copper Lines in selected Provinces of the Country during last 7 years and now wishes to expand this Network by about 30,000 more lines in 1390. This will benefit the society by

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having easy access to Digital Phones, Dial-up Internet facilities and also high speed Internet facilities through DSL Technology.

Program Goal and Objectives

 Develop the capacity of the ministries and other Gov’t Agencies to communicate with the citizens of the Country through more reliable Digital Phones (wired on high grade Copper Lines) and through affordable Internet Services provided through these wired Networks by using DSL Technology.  Improve broadband connectivity across the country, including to the under- served provinces, by having Internet on wired Networks.  Reduce the costs associated with the Digital Phone and Internet Services.

Expected Results overall: 50,000 additional homes will have access to the most modern Telecommunication Services of the Country.

Timeline: Number of Years Overall: Expansion of communication services is an on-going process as there is always high demand for such services. In 1390, it is planned to commission 30,000 Copper Lines in 10 Provincial capital cities of Afghanistan.

Costing/Budgeting: The project has just passed the Conceptualization Stage of MCIT and thus, only the broad Implementation Plan, with costing has been worked out so far. Overall budget requirement is 16 Million USD in 1390, for laying of underground copper cables and connecting them with Digital Exchanges in 21 remaining provincial capital cities of the country.

4.2.2 Building Internet Exchange Point

As the Internet grows in size, number of users and Internet Service Providers (ISPs) continue to exchange increasing amount of data traffic. A basic underpinning of the Internet is points where inter-ISP traffic can be exchanged. These interconnection points are called Network Access Points (NAPs) or Exchange Points (EPs). To help cope with the ever-increasing amount of Internet traffic, many new Exchange Points have been deployed, and growth in use of existing EPs has increased. This trend is expected to continue as it seems to directly support the growth of the local and regional ISP industry, allowing local traffic exchange and reduced dependency on the large, established ISPs. (Details of Internet Exchanges are given at Annex 2).

It is proposed to establish the National Internet Exchange of Afghanistan (NIXA) with the purpose to encourage the exchange of Internet traffic in a free-market environment, between all interested parties. By locating an Internet exchange in Kabul, near the majority of Afghanistan's Internet Service Providers and large Internet users, competition will be spurred, consumer prices will drop, operational costs will be reduced, reliability and redundancy will be improved, and a vast amount of new local Internet bandwidth will be created for sale to consumers.

The National Internet Exchange of Afghanistan (NIXA) is recognized to be in the beneficial interest of all stakeholders. General National Internet Exchange of Afghanistan (NIXA) technical, business, and operational policies shall be made publicly available on the NIXA web site.

NIXA will have the following characteristics:

Ministry of Communications and IT, Islamic Republic of Afghanistan 31 E-AFGHANISTAN: National Priority Program Proposal May, 2011

 NIXA shall never impose a mandatory fee upon any member, nor shall it bill any such fee on behalf of another party. Furthermore, no monies shall ever flow between members through the NIXA Corporation. Any costs (currently foreseen to include only property insurance and electricity) shall be met through the voluntary donations of any party, whether member or non- member, and donating parties shall be encouraged to donate according to their means, but not in excess of the NIXA’s present need. NIXA board shall endeavor to operate the exchange in a manner, which insures a fairness of the value to each member.  NIXA shall not endeavor to act as a go-between, point of aggregation, or distributor of regulatory or licensing burden among its members.  NIXA shall attempt to make resources available to members in accordance with need. Specifically, the NIXA shall allocate switch ports to members based upon estimate or evidence of each member’s relative ability to fill the port with beneficial traffic. In priority, ports shall be allocated to new members before second or additional ports are allocated to existing members. Co-location space for members' routers in NIXA -maintained racks shall be limited to per member, and shall be allocated strictly on an as- needed basis.  NIXA shall impose no restriction upon the types of organization or individual who may become members and connect to the exchange.  NIXA shall impose no restrictions upon the internal technical, business, or operational policies of its members.  NIXA shall make no policy and establish no restrictions upon the bilateral or multilateral relationships or transactions, which the members may form between each other, so long as NIXA Corporation shall not be involved.  NIXA shall collect and make aggregate traffic statistics public on NIXA web site.  NIXA shall maintain reasonable security, both physical and network, regarding the switch, route reflectors, and members' interconnections with them.  Members shall be encouraged, but not required, to establish BGP peering sessions with one route reflector, which shall be operated as a publicly visible "looking glass." Members shall be required to establish a BGP peering session and advertise all customer routes to the other route reflector, which shall be operated with respect for the privacy of members' routing information, but is necessary for the safe and reliable operation of the exchange, and the diagnosis and correction of exchange operational problems.  Members shall be required to sign a copy of NIXA policies document, indicating that they understand and agree to abide by its policies, before any resources shall be allocated to them.  Members shall be required to provide and maintain current technical contact information, which shall be publicly posted on NIXA web site. This information shall include at a minimum an internationally-dialable voice phone number, a NOC email role account, the IP address assigned to the member at the exchange, and the member's Autonomous System Number if they have one.  Members shall subscribe to a NIXA announcement email list, operated by NIXA board.

Ministry of Communications and IT, Islamic Republic of Afghanistan 32 E-AFGHANISTAN: National Priority Program Proposal May, 2011

 Members have a duty of confidentiality to each other regarding NIXA affairs or information learned in the course of NIXA operation. This applies particularly to the NIXA board.  Members shall under no circumstances refer non-members to the NIXA board for resolution of technical problems.  Members shall endeavor to provide advance notice via email to each of their BGP peers, in the event that a service disruption or discontinuity of BGP peering can be foreseen.  Members may only connect equipment which they own and operate themselves to the NIXA. They may not connect equipment on behalf of third parties.  Members shall not advertise routes other than their own, without the prior written permission of the assigned holder of the address space.  Members shall not advertise a next-hop other than their own.  Members must, on all interfaces connected to the NIXA switch fabric, disable Proxy ARP, ICMP redirect, CDP, IRDP, directed broadcasts, IEEE802 Spanning Tree, any interior routing protocol broadcasts, and any MAC layer broadcasts other than ARP or inverse-ARP.  Members must, on all interfaces connected to the NIXA switch fabric, disable any duplex, speed, or other link parameter auto-sensing.  Members must set netmasks on all interfaces connected to NIXA to include the entire NIXA peering LAN.  Members must clearly label all equipment, which resides at the NIXA facility with ownership and contact information.  Members should not routinely use the NIXA switch fabric for carrying traffic between their own routers.

In order to address the issue of sustainability in long run, NIXA shall setup minimum amount of fee on peering ISPs for covering the recurring costs of NIXA.

NIXA will be monitored with the required available tools and equipment for providing routine statistics on the performance of EP, which will be available on the NIXA website.

4.2.3 Optic Fiber Network

Intercity and international connectivity has improved significantly. The national fiber optic backbone network now connects 20 provinces and Pakistan, Iran, Tajikistan, and Uzbekistan. This is a major milestone in connecting Afghanistan to international telecommunications networks.

MCIT has plans to connect all the Provinces on the OFC Backbone Networks. Such a Communications Backbone roll-out has to be done in phases and thus, every year, at least 3 to 5 provinces are being added to this Network. Accordingly, it is planned to roll out OFC Backbone Network in 5 provinces in 1390-1392 with a total investment by the World Bank amounting to $27 Million USD. In 1390, $15 Million USD will be required to connect Bamiyan, Daikundi, Chagcharan, Takhar, Faizabad and the districts enroute with the existing OFC Backbone Network of the country.

World Bank is likely to support the construction of the third phase of the national fiber optic network. About 2000 km of the planned 3100 km has been completed, mainly around the ring road. Work has also begun on a secondary network that will connect

Ministry of Communications and IT, Islamic Republic of Afghanistan 33 E-AFGHANISTAN: National Priority Program Proposal May, 2011

cities in the South East of the country (e.g. Logar, Khost, Paktya). The government now plans to construct new phases of the network to connect Kabul to Herat directly through the central provinces and to add ‘spurs’ to connect the final few provinces.

1,000 km of additional OFC Cable Routes will be laid to connect 5 more provinces with the existing Backbone Network of the country. This will give access to both the urban and the rural population of the Country to most modern Telecommunication Services of the World. This Project will also enhance the employment potential for rural population of these provinces and the districts/villages.

Implementation of this project will be monitored and controlled by the PICU of MCIT through PMO established for the project.

OFC Backbone Expansion Project (BBEP) of the World Bank has following goals:

1. Develop the capacity of the ministries and other Gov’t Agencies to communicate with the citizens of the country through more reliable Digital Phones and through affordable Internet Services provided through these integrated Networks by using OFC Technology. 2. Improve broadband connectivity across the country, including to the under- served provinces, by having Internet on Broadband OFC Networks. 3. Reduce the costs associated with the Digital Phone and Internet Services. 4. Connect the country’s provinces and districts with the neighboring countries through the most reliable and affordable media.

4.3 E-Government

This component aims to provide value added service in the government using ICT to increase efficiency, effectiveness and transparency in Government. This will be achieved through the following sub-components:

1. National ID Cards 2. E-Governance Resource Centre 3. Websites for Service Delivery or Interoperability 4. Automated National Registries including in land Ownership, ID Cards, Passports and other licenses 5. Establishing an ICT Village 6. Developing Electronic Government Applications 7. Improving ICT training and digital literacy

Ministry of Communications and IT, Islamic Republic of Afghanistan 34 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Figure 7 : Component 3 (E-Governance)

National ID Cards

E-Governance Resource Centre

Websites for Service Delivery or

Interoperability Governance - Automated National Registries including in land Ownership, ID Cards, Passports and other licenses

Establishing an ICT Village

Developing Electronic Government

Applications ComponentE 3:

Improving ICT training and digital literacy

4.3.1 National Identity Cards

Under the constitution of Islamic republic of Afghanistan the government is obliged to provide every Afghan with appropriate identification documents, which can serve as the national identity papers without the doubts of authenticity. With the prevailing security and socio-economic situation there is dire need for national identification system that cannot be forged and portrays the true national and demographic state of the country.

The National Identity Cards Project is being designed to meet this prime need of the nation and its citizens. The rapid growth of mobile phones, telecommunications and Information technology, and the Fiber Optic Cable and Copper Cable Networks, provides the best infrastructure for such nationally important project. Despite likely constraints in the use of this infrastructure, this is likely to facilitate the on-time and best delivery of the end product.

The scope of this project is to develop, procure, supply, train, install and maintain software applications and equipment required for the establishment and maintenance of the information system platform for the following modules:

A. Resident Management & National ID

Afghanistan resident identification module is to develop infrastructure, which includes hardware, network, ID card issuance system, and application software to process resident data registration, resident management (notice of birth, death and change of residence), and voters’ list management. Currently, the Afghanistan government does not have an integrated resident management and management of Voters’ List based on digital data; most of them are done manually.

B. Acquisition of data for the National ID and Issuance of the ID

Ministry of Communications and IT, Islamic Republic of Afghanistan 35 E-AFGHANISTAN: National Priority Program Proposal May, 2011

This module envisions: (i) entry of personal information of the entire population to issue NID card for all residents of the country; (ii) construction of integrated image data by inputting resident photos, fingerprints, iris, signatures and such other data as per the population registration law of the Islamic Republic of Afghanistan for entire population; and (iii) issuance of 15 million new ID Cards for the registered population during the time frame of this project.

C. Driver License (DL) system

The DL involves building an application program in order to implement data registration, driver license basic (date of issuance, vehicle operation class changes, etc.). This system will be fully integrated with the resident management and national ID platform.

D. Vehicle Registration

The vehicle registration system is connected with the national ID and driver license. Information such as vehicle owner, type, class, etc allows detailed system management. The vehicle registration system will be used with the infrastructure, which is expected to increase system operation and work efficiency.

E. Digital Signature

The scope of Digital Signature system includes Root PKI and National PKI for public employees considering the following requirements during the implementation and also the establishment of the Certification Authority.

 Confidentiality: Information security by encryption of transaction data.  Integrity: Prevent forgery and alteration of transaction data.  Authentication: User identification for data transaction.  Non-repudiation: Reliability enhancement for Transaction by using electronic signature.  Access Control: Permit to access information only for selected receiver.

F. Biometrics

The biometric solutions to be introduced involve the fingerprint and iris and the management of its images and minutiae. The scope of work includes but not limited to.

 Register and manage DB for high quality iris and fingerprint images.  Capture high quality fingerprint and iris through live scanner/high resolution scanner.  Extract minutiae for accurate fingerprint and iris recognition.  Matching algorithm (1:1 verification, 1:N identification) must be able to find matching data quickly and accurately by using various extracted biometrics information from extracted algorithm.

Ministry of Communications and IT, Islamic Republic of Afghanistan 36 E-AFGHANISTAN: National Priority Program Proposal May, 2011

 Fast and accurate fingerprint pattern separation by implementing 5 separate classification of fingerprint.  By standardizing the storage pattern for biometrics minutiae, the system should build commonly shared information such as electronic resident registration card, e-passport issuance and biometrics data requested by other government agencies.  Fast access of biometrics information and resident personal information to shorten the information search time.  1:N matching is first carried out through fingerprints. If the fingerprint matching result yields duplicate data, final matching will be performed using iris data.

The project will be carried out in phases:

Phases Description

Phase 1 -Installation of main DB, PKI, Biometric and related Jun 2011- equipment in National Data Center plus expansion of the Dec 2011 Center with connectivity to other Gov offices i.e ABIS. -Installation of card printers and its related equipment and installation of the environment systems in the MoI center. -Delivery of 0.5 million ID cards to MoI. Phase 2 -Delivery of 7million ID cards to MoI. Dec-2011- -Delivery and installation of all required equipment for the Decl 2012 operation in five main provinces including its districts, i.e Kabul, Herat, Balkh, Ningarhar and Kandahar. -Acquisition of data in the five provinces i.e Kabul, Herat, Balkh, Ningarhar and Kandahar as per the population registration law. Phase 3 -Delivery of 7.5 million ID cards to MoI. Dec-2012- -Delivery and installation of all required equipment for the Dec 2013 Operation in the remaining 29 provinces including its districts. -Acquisition of data in the remaining 29 provinces including as per the population registration law.

Socio-Economic impact:

A. Driving License and Vehicle registration

The project will streamline the driving license and vehicle registration system, which will enable government to collect revenues and also report on the status of vehicles in the country. The project will equip the traffic police departments throughout the country with IT platform, which includes software and hardware.

B. Supporting elections, the Census, Democracy and other critical national projects

Ministry of Communications and IT, Islamic Republic of Afghanistan 37 E-AFGHANISTAN: National Priority Program Proposal May, 2011

The electronic National Smart Card will provide a plate-form to the government to collect basic electoral data and could be used as election cards for future elections.

The GIRoA have always tried in the past to conduct national census but not have been able to do so successfully which results in un- equal distribution of resources and lack of feasible national development strategies, while distribution new ID cards the government can use the data collection practice as partial national census, which will ultimately strengthen the fragile democracy in Afghanistan.

C. Supporting the governance and sub-national governance agenda

The IDLG wants to develop and support de-centralized/sub-national governance levels (provinces and districts) in every way. This will involve giving them access to central resources, both from the donor community as well as from the central government, and – at some point – defining them not only as administrative units but also as budgetary units.

The implementation of such projects will provide the government a decision-making support plate-form, which will strengthen governance at the grass root level. It will also strengthen the government efforts to collect primary data at the core level, which will enable them to make effective and efficient policies, and at the end will be more able to distribute resources equally, efficiently and effectively at the district and village levels.

D. Supporting primary health, education, mother/child health and other social issues.

As for the design of the National Smart Card it will be issued on the district level to every Afghan citizen, this data collection at the district level will provide government first hand insight to the primary health facilities, educational facilities and can also shed light on the mother child health issues e.g. child mortality and others.

E. Support for other public services

The National Smart Card is designed as the base for other government services which can be presented electronically in the future. These services can utilize the Tazkira databases for collection of all data necessary for optimum operations, and could include death certificate, birth certificate, driving licenses, vehicle registration, land registration, and other socio projects which will have empowering effects on the individual life of every citizen.

Ministry of Communications and IT, Islamic Republic of Afghanistan 38 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.3.2 E-Governance Resource Centre

The immediate objective of this project is to establish the E-Government Resource Centre (EGRC) within the Ministry of Communications and IT (MCIT) to provide timely and high quality advice, training, consultancy and other services in the area of e- Government to various ministries, departments and agencies of the Government of Afghanistan and donor supported development projects in order to facilitate and optimize application of information and communication technology in the public sector of Afghanistan and to catalyze e-Government transformation in the country. With the adoption of the e-Government culture GIRoA will be able to overcome the issues it is facing in the areas of transparency, efficiency and public service delivery.

The ICT Sector strategy vision, which was first stated in May 2003 and recently presented to the ICT Council, is:

“To make affordable communication services available in every district and village of Afghanistan through enabling market economy, so that all Afghans, men and women alike, can use ICT to expeditiously improve Government, social services, foster the rebuilding process, increase employment, create a vibrant private sector, reduce poverty and support underprivileged groups”.

With the above vision in mind, MCIT has archived major milestones to realize the first part of the vision, now is time to put all focus for the realization of the second half of the vision. In order to do this there is need to restructure the ministry by adding departments, which will implement the policies and strategies in the area of ICT. It is envisaged to create a Deputy Minister position for Information Technology with 3 directorates –

 ICT directorate, which will be responsible for the overall development of the ICT policies, appraisals of new projects, Coordination, benchmarking, market studies and so forth;  E-Government Directorate, which will be responsible for the e-gov consulting and advisory services, E-government human resource capacity development, E- governance standardization services and IT/e-gov audit;  Afghanistan Network Information Directorate, which will be responsible for the cyber security, IP allocation, exchange point, electronic certification and so forth.

As these activities will happen during or by end of the year 1390 (march 2011-march 2012), through this project MCIT will establish the E-Gov Resource Center, which will be transformed in to the E-Government Directorate.

Ministry of Communications and IT, Islamic Republic of Afghanistan 39 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Figure 8 : Structure of E-Governance Resource Centre

Deputy Minister (Information Technology)

Afghanistan E-Governance Network ICT Directorate Directorate Information Directorate

It is proposed that MCIT would establish the E-Government Resource Centre (EGRC) in the premises of MCIT as a Centre of Excellence in E-Government. It will be a source of technical expertise and skills, advice and guidance for development and deployment of E-Government in the agencies and departments of the GIRoA. The proposed E-Government Resource Centre will assist in the development of National E-Governance Information Management and Data Standards and policies within the framework of the already developed e-GIF and e-Gov Strategic Master Plan. EGRC will provide guidance, advice and technical expertise to GIRoA for design and development of the E-Governance program as a whole and for specific projects within it. The Centre will also provide services to donor supported projects and other agencies of the government at the central and provincial levels in the development and deployment of ICT for governance and development including training and capacity building in the agencies and in the development and implementation of E-Government projects in various application areas. As it is apparent that huge number of projects are being designed and implemented by donor organizations directly, which include the ICT module in it, the EGRC will have a unit tasked to monitor such projects by liaising with donor organizations and also monitoring their websites and bilateral agreements with the Ministry of Finance. EGRC will also deploy CIOs in these organizations, which will report on the ICT deployments in these organizations from time to time. This will ensure the implementation of common ICT policies and platforms throughout the government sector. MCIT will arrange MoUs with donor organizations, which will enable the EGRC to carry forward the coordination tasks in this area.

Services to be rendered by the proposed E-Government Resource Centre can be categorized into the following major categories:

1. E-Governance Consulting and Advisory Services 2. E- Government Human Resource Capacity Development 3. E-GIF Implementation and IT standardization Services 4. IT and e-Gov Audit

Ministry of Communications and IT, Islamic Republic of Afghanistan 40 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.3.3 Websites for Service Delivery or Interoperability

Information accessibility is one of the main issues in Afghanistan for successful development of E-Government and delivery of public services and information to the citizens. For this purpose, the government has made a plan to design and develop dynamic websites for the various agencies and departments of the government, which will help them to share the information with the citizens and also with its other stakeholders. The websites will also play a vital role in allowing government to better serve all of its citizens and provide different programs and services to its constituents in a more dynamic and interactive way; thereby increasing citizen participation.

This activity involves development and strengthening official websites of 25 GIROA ministries, 7 universities, 11 independent directorates and 34 provincial governments. This will also involve development of web portal, which will be official online gateway to the Government of Afghanistan institutions and socio economic sectors.

4.3.4 Establishing an ICT Village

Information Technology or IT is the collective term for various technologies involved in processing and transmitting information including computing, networking, multimedia, telecommunications, microelectronics, and their interdependencies.

Information Technology (IT) is a global industry showing average 10% annual growth, within IT, software and services account for over half of sales. MCIT is moving to enable the country to benefit from Information and Communication Technologies by becoming part of the global information society. In this area, MCIT is trying to encourage and strengthen all the governmental authorities and related bodies to take part in this endeavor.

The mission of Kabul IT-Park is to create a Center of Excellence, a technological park with state-of the-art infrastructure geared towards hi-tech businesses and to create a strategic base with a superior environment to enable businesses to gain the competitive advantage they seek.

The idea is to create an environment in which established and emerging members of Afghanistan’s business sector can operate, expand, collaborate, and thrive. To this end, the IT-Park will provide facilities based on relevant, needed information and communication technology (ICT), as well as consulting services. With firms conveniently located in close proximity to each other, the IT-Park will serve as a cohesive center for business development and exchange.

The first step will be the arrangement of a Public Private Partnership agreement with a local or international business firm. Second step will be the preparation of plans, architectural maps and plot distribution plans. The next step will be to establish a Techno-park business Incubator facility known as the Techno-park Business Innovation Centre (TBIC). The TBIC will provide resident businesses with finished office space and a range of office services, including:

 Heating and Air-conditioning  Furniture  Uninterrupted power supply (UPS), back-up power generation

Ministry of Communications and IT, Islamic Republic of Afghanistan 41 E-AFGHANISTAN: National Priority Program Proposal May, 2011

 Maintenance services  Networking  Reception and lobby area  Conference rooms  Storerooms  Common security systems  Common facilities such as restrooms and cantina  Overall pleasant environment. This may include but not limited to trees, flowerbeds, etc.

In addition, the TBIC will make available consultancies to businesses in the following areas:  Technology  Management  Accounting  Legal and policy  Marketing  Training  Quality control

Serving New Entrepreneurs Afghanistan’s emerging entrepreneurs are generally recent graduates from science and technology institutions who have innovative ideas for developing businesses. Technical experts from a range of public and private sectors and faculty from premier educational institutions also fall into this category.

New entrepreneurs will receive maximum support from the TBIC. They will be assisted in the preparation of business plans; the rent of office space; purchase of furniture and equipment; the procurement and use of computers and software; and management, accounting, legal, and marketing services.

Experienced entrepreneurs from business and industry and persons who previously pursued entrepreneurial activities will also be eligible for assistance for their enterprises, in particular with regard to the preparation of business plans, renting of office space and purchase of furniture. Management, accounting, legal, and marketing services will also be available.

Finally, business entrepreneurs from established companies wishing to diversify into advanced technology fields or transfer their operations to the IT-Park will have access to all of the facilities available at the TBIC.

The direct beneficiaries of this project will be IT companies in Afghanistan, which will be able to expand their businesses and generate profits for further development. The Park could respond directly to the needs of entrepreneurs and improve survival and growth prospects of start-up companies.

The Park will open employment opportunities for graduates and other qualified IT specialists thereby preventing their outflow from the country seeking employment abroad.

Educational and training institutions will benefit from the establishment of the IT-Park as a center of learning and research where students can practice their knowledge and

Ministry of Communications and IT, Islamic Republic of Afghanistan 42 E-AFGHANISTAN: National Priority Program Proposal May, 2011

where they can carry out their graduate projects and/or internship during the semester or summer/winter breaks.

The Afghanistan economy as a whole will benefit directly from the project through export earnings and improved collection of taxes and indirectly (also through e- Commerce development) by the multiplier effects on other sectors.

4.3.5 Developing Electronic Government Applications

MCIT has completed drafting of the E-Gov Strategies / Master Plan covering the next 5 years. The plan will be presented to National ICT council and after approval will be given to line ministries for implementation. MCIT will extend advisory services to line ministries in the areas of health, agriculture, educations and governance to develop e- Gov applications. This will enable these ministries to deliver their service in more efficient and transparent manner. This engagement will ensure the adoption of enterprise e-Gov architecture, which will be holistic and integrated. These applications will be in the following areas:

G2C (Government to Customer) and G2B (Government to Businesses) Services

1. Government Information available on line at the government web sites 2. Government Forms available on line for easy downloading 3. Online Registration of births and deaths 4. Online Application for various government services made 5. Land records management and information 6. Online Drivers Licensing application 7. Online Business Registration and trade licensing 8. Online Application for Customs clearance 9. Online Application for Passport 10. Online Application for admission to government education institutions 11. Online Electronic procurement and tendering 12. Online Electronic recruitment and HRM 13. Information broadcasting electronically 14. Electronic government payments 15. Citizen grievance registration and follow up 16. Delivery of health services electronically 17. Delivery of critical information to specialized citizen groups such as farmers, students, women, youth and senior citizens using electronic means such as computers and mobile phones. 18. Delivery of extension and training services to specialized citizen groups such as farmers, students, women, youth and senior citizens using electronic means such as computers, mobile phones, radio and TV. 19. Online Delivery of Educational services.

G2G (Government to Government) Services

1. Automated Government Processes including electronic storage, retrieval and processing of information for service delivery and decision-making. 2. Electronic Exchange of documents and fully operational enterprise document management.

Ministry of Communications and IT, Islamic Republic of Afghanistan 43 E-AFGHANISTAN: National Priority Program Proposal May, 2011

3. Collaboration between the government staff on line including chatting and emailing and video and voice conferencing. 4. Business Process and work flow integration between the various departments, agencies and ministries. 5. Information sharing and database integration-Enterprise Information Integration. 6. Electronic information searching across the enterprise. 7. Government Payroll and Personnel Management online 8. Government Human Resource Management and Development including Training. 9. Government Financial Management 10. Government Strategic Planning and Operational Decision making supported by agency level or enterprise MIS and DSS.

MCIT will establish the E-Gov Directorate, which will be the responsible organization for the implementation of the e-Gov strategic Master plan, which will focus on liaising, guiding, advising, implementing and the development of applications from the above tentative list.

4.3.6 Improving ICT Training and Digital Literacy

Afghanistan has a very small and nascent ICT sector. It needs to adopt innovative strategies to increase the ICT skills in the private sector and leverage opportunities emanating from projects and programs being implemented in Afghanistan by the Government, private sector and donor agencies. It will be necessary for the following skills to be developed in the Afghanistan. The three-pronged approach is defined as follows:  CHART skills (Communication, Heuristic, Analytical, Relational and Technology): focus on foundational skills needed in the ICT sector  SMART Skills (Software, Mobile, Application, Research and Technology): focused on IT industry  START Skills (Start-up, Training through Association with Remote Teams): focused on entrepreneurship and cutting edge technologies.

The objective of this activity is to develop and implement a detailed business plan for a program to develop skills for IT-based services in Afghanistan. The program will have multiple components, including a skills assessment, building partnerships with the private sector, and designing the training programs and a pilot rollout. The consultant will work with multiple stakeholders including the MCIT, Education, lead academic and training institutions in Afghanistan, local and multinational companies and agencies/ NGOs based in Afghanistan and with the ICT sector association.

Scope of the activity

1. Conduct an initial skills gap assessment 2. Develop a detailed business plan that will spell out the investments required for different components of the program together with clear timelines, responsibilities and a plan off execution. 3. Establish a private sector led initiative for the development of smart skills. The initiative shall feed into improvement of curriculum design, forging of international/ regional partnerships, sourcing of content from companies and

Ministry of Communications and IT, Islamic Republic of Afghanistan 44 E-AFGHANISTAN: National Priority Program Proposal May, 2011

universities including the use of open source content from leading universities. Work closely with the private sector to establish and run the program. 4. Establish a program of entrepreneurship in IT. 5. Establish linkages with training institutes in Afghanistan and the region. 6. Help in designing linkages with ICT companies in the country so as to develop a core talent pool that can be deployed in the mobile applications areas. 7. Assist in coordinating public-private dialogue between government, academia and industry associations; and

4.4 M-Government

This component aims to provide government services using mobile telephony to increase their efficiency and effectiveness. The following sub-components will be taken under this component:

1. Enabling Mobile Government 2. Innovations Grant Program

Figure 9 : Component 4 (M-Government)

Component 4: M- Government

Enabling Innovations Mobile Grant Program Government

4.4.1 Enabling Mobile Government

MCIT will initiate this activity to support the mainstreaming of mobile applications across Government for public service delivery and for program management. The reach of mobile telephones —more than half of Afghan households have at least one mobile telephone among its members—creates a widely available platform for public service delivery and government program management. The nationwide use of mobile telephones creates new opportunities for the government to reach and communicate with its citizens. Experiences from other conflict and post-conflict countries suggest that the time is right for Afghanistan to begin thinking about mGov and its associated applications.

These mGov applications will offer an opportunity for “anytime, anywhere” service delivery in social sectors in support of the range of programs implemented by various ministries (e.g. in health, education, agriculture, rural development). These mGov applications will also support management of geographically distributed staff and resources across the country, improving monitoring and evaluation, and strengthening delivery systems.

Ministry of Communications and IT, Islamic Republic of Afghanistan 45 E-AFGHANISTAN: National Priority Program Proposal May, 2011

In order to support mGov, the government is interested in creating the SDP (Standard Development Platform), a technical architecture to permit rapid and low-cost development, testing, deployment, provisioning, and maintenance of various mGov applications. The objective of developing the SDP is to create government-wide shared infrastructure and services to enable the rapid and inexpensive development and deployment of mGov services. The mGov SDP is an integral component of the ICT Sector Development Project’s objective to support the mainstreaming of mobile applications across government.

Apart from setting up the SDP, the ICT sector development project will also fund three related activities: (1) Creation of an Expert Group—consisting of members with wide ranging experience and knowledge of ICT innovations and mobile applications—that will work with ministries and agencies to identify possible mGov services; (2) Set up and operation of an Innovation Support Program that will reward innovation in mobile applications and support the development and rapid deployment of applications that address specific challenges identified by the Government; and (3) Set up and support to an Incubator with a possible focus on supporting early-stage firms that work in the area of mobile applications. While these activities are separate from the set up of the SDP, they will be closely linked to it.

In order to support mGov in Afghanistan, the government is interested in setting up an SDP that will provide the necessary hardware and software tools for rapid and low-cost development, testing, deployment, provisioning, and maintenance of various mGov applications.

The SDP will support mainstreaming of mGov applications across Afghanistan. First, the SDP will offer common platforms and services that can be used across government to reduce duplication of mGov systems in various ministries or agencies that might otherwise develop stand-alone systems. Such duplication would lead to duplication of infrastructure and services, fragment demand, raise costs to use m-apps and waste resources, and increase coordination costs with multiple mobile networks. The SDP will thus reduce the costs of mGov applications setup and use.

Enabling mGov in a coordinated manner across government through the SDP will reduce the total cost of operation of mGov services by providing a common pool of resources, aggregating demand for communication and IT services, and providing a platform for various ministries and agencies to test, rapidly deploy, and easily maintain mGov services across the country.

Furthermore, the SDP will also support rapid design, development, testing, deployment, and maintenance of mGov applications. Because the SDP will be readily available for any interested Government user to access and use, it will speed up the “time-to-market” for all mGov applications. This also reduces the costs of mGov applications. In a related benefit, the Platform will create opportunities for the nascent local IT industry to grow through the development of mGov applications over the SDP and, possibly, use the SDP for their own service provision for a fee.

The SDP should:  Serve as the technical architecture to support mGov applications across the Government in Afghanistan. It should include resources such as hardware and software needed to provide mGov applications, and the communication

Ministry of Communications and IT, Islamic Republic of Afghanistan 46 E-AFGHANISTAN: National Priority Program Proposal May, 2011

services to connect with users through the telephone networks (e.g. text messages, voice minutes, data services).  Be a shared infrastructure set up and operated in Kabul and be available for use to any Government ministry, department, agency, or program to provide mGov applications on a for fee-basis. It should allow any Government ministry, department, or agency to design, test, and deploy many applications rapidly and at a lower cost than if they had to each deploy their own mGov architectures. Private non-profit, firms incubated through the ICT Sector Development Project, and civil society organizations may also be permitted to use the SDP in the future.  Support the delivery of voice and data services and content in a network- and device-independent manner, reaching the largest number of potential users across Afghanistan. The Platform should offer unified connectivity with Afghanistan’s telephone networks (primarily wireless but also wireline) and possibly Internet service providers (ISPs), enabling unified content delivery to users on various mobile networks.  Allow efficient management of government-related numbers and short codes, IVRs, SMS, and easier development of mobile applications through shared tools (e.g. for surveys, data collection, hotline management).  Include some commonly used tools to enable the simplified development and deployment of m-apps (e.g. survey tools, peer-to-peer communication tools).  Have capabilities for secure service provision, controlled access, modularity, scalability, addition and subtraction of services, and testing that do not disturb the overall functioning of the SDP. The SDP should also allow metered access to enable charging of the users for the services demanded and used.  Connect with existing IT systems (e.g. databases, MIS) of the various users, and have transparent interfaces to permit connection with users’ IT systems in the future.  Be managed by a qualified and experienced Firm, hosted by MCIT using existing infrastructure such as the national data center and other databases and registries, and could be structured as a PPP arrangement to ensure long term sustainability.

A block diagram, which indicates the position of the SDP as a means to simplify and unify provision of mGov applications between various ministries and users is provided below.

Ministry X system

Mobile Mobile Ministry Y database SDP networkMobile network Network

Ministry Z Users application server (Program staff, citizens…)

Ministry of Communications and IT, Islamic Republic of Afghanistan 47 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.4.2 Innovation Grants Program

World Bank through this component will support an innovation grants program to (a) encourage various government ministries and agencies to identify specific challenges that can be addressed through the use of mobile applications, and (b) have a competitive process to award the best ideas grants (up to US$100K, for instance) to support creation and deployment.

The IS Program will take the form of a grants competition that will fund the most innovative tools that address specific development ‘innovation challenges’ in priority areas identified by various ministries and agencies of the government. The IS Program will fund the best ideas that address these innovation challenges.

The IS Program is envisaged to consist of two phases. In Phase 1, which could last for about two years, the focus will be on providing grants to address innovation challenges. The scope of Phase 1 will be wide to include the largest number of thematic areas and sectors (e.g. health, education, rural development, agriculture, livelihoods, and urban development). Phase 2, which could last another two years, could either focus on providing larger size grants to scale m-Government applications that have been successful, or could reduce the scope to cover only a specific theme or sector.

Through Phases 1 and 2, the IS Program will also support the growth of the local IT industry through competitive processes that encourage participation of competent local IT firms, individuals, or non-government organizations that respond to the innovation challenges and to scale m-Government applications. The IS Program will also encourage cooperation among partners across disciplines to develop effective and comprehensive solutions to the innovation challenges.

The Program could be designed to include one or many types of awards, e.g. exposition award, market stimulation, point solution, etc. and various means of structuring the competitions (hybrid, multistage, exhibitions). For example, one possibility is for the Program to include two streams of awards: one addresses a large group of stakeholders and constituents and mainly aims to educate participants and generate excitement about the field, while the other stream seeks to reward those who design innovative solutions to specific problems.

The budget to support all activities will be about US$5 million over the period of the Program. This includes the costs of program administration, the grants itself, and possible second stage activities. The design of the Program should minimize administrative costs. The program as a whole could be implemented in collaboration with appropriate local stakeholders such as the National ICT Alliance of Afghanistan (NICTAA), the National ICT Council of the Government, and other industry, civil society, or educational institutions and agencies.

Program management

Given that the IS Program requires competitive selection of winners based on innovation challenges, and the management of a significant fund (up to US$5 million), it is essential that the Program should have a transparent, well defined, efficient, and effective program management structure.

Ministry of Communications and IT, Islamic Republic of Afghanistan 48 E-AFGHANISTAN: National Priority Program Proposal May, 2011

In order to secure buy-in, visibility, and high-level political support, the program management should include a mechanism to have representatives from MCIT and from the Ministries of Finance, Economy, and other members of the National ICT Council of Afghanistan. This could be in the form of an Executive Board that has broad strategic oversight and guidance functions, but whose members are not directly involved in the definition of innovation challenges or in their selection, or in the day-to-day program management.

Program management functions including day-to-day management, the selection of the winners in cooperation with the Expert Group, and fund management should be with a qualified IS Program Manager (ISPM). The ISPM will handle the grants competition and related auditing, financial management, and competitive selection. Overall fiduciary management of the IS Program will remain with the Project Management Office of the ICT Sector Development Project, which will be following World Bank procedures in its work. An operations manual that establishes the operational procedures will guide the ISPM and detailed principles that govern program implementation.

Phase 1 activity: Grant competition

The Committee will issue calls for proposals—about every six months—over a period of at least two years. The Committee will evaluate proposals and identify winners through a competitive selection process. Winners will receive seed funding in the form of a one- time grant to implement their proposal.

The following provides an indicative workflow of how the Program could work during this Phase:

1. Any interested social or economic ministry or agency of the Government will work with the Expert Group to define an innovation challenge to address some specific public service delivery or program management problem; 2. The Expert Group will forward the innovation challenge to the ISPM. The ISPM will release the call for proposals to address the innovation challenge, run a competitive selection process, and select the winner of the innovation challenge along with the Expert Group; 3. The winner—an individual, a consortium, a company or a non-governmental organization—will implement the solution. The proposed solutions could include new, planned, or in-pilot-stage solutions and could use as possible and needed, the shared infrastructure and services set up through the larger project; 4. The Expert Group and ISPM will work with the winners and concerned ministries to create the enabling environment for the implementation of the solutions; 5. The ISPM will evaluate the performance of the solution on a regular basis and provides support—in conjunction with the Expert Group—to the winner to support their work.

The ISPM will also be expected to manage some mechanisms to enable discussions and exchanges among potential innovators, technical experts, non-government organizations, academic institutions, public and private sector agencies, and the public that encourage discussions about possible ideas and innovations. The participations in this discussion should focus on Afghanistan, although it might be possible that the overall mechanism is part of a global effort.

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The ISPM’s working and approach should consider the potential for political, financial, coordination, and security risks to disrupt implementation of winning proposals. The ISPM should ensure that appropriate risk mitigation measures are in place to reduce or counter these risks.

Phase 2 activities: Scale up of successful activities, focused activities

Following the completion of Phase 1 activities, the ISPM should design a follow up phase that will either scale up activities that were successful in Phase 1 or that will focus the scope of the Program to cover a selection of themes or sectors. Phase 2 activities could also include targeted investments in delivery mechanisms, the development of public- private partnership models, mainstreaming of some successful program management technique, application of ICT focused on some specific theme (e.g. maternal health, primary education, developing labor markets).

The ISPM should design proposals for Phase 2, and MCIT, the Executive Board, or some combination of strategic actors could take the decision on the way forward. The World Bank task team will also provide support and clearance for the design of Phase 2 activities when it takes place (in the second half of year two of the Program).

4.5 Postal Sector Modernization

This component aims to modernize the postal sector to improve its reach and service delivery. It will be implemented through the following sub-component:

1. Reconstruction and modernization of Afghan Post Organization (APO), 2. Rewriting of the postal law, and 3. Setting up a Postal Regulator in the form of an independent authority under the Minister of Communication and IT

Figure 10 : Component 5 (Postal Sector Modernization)

Component 5 : Postal Sector Modernization

Reconstruction and modernization of Rewriting of the Setting up a Postal Afghan Post postal law Regulator Organization (APO)

Ministry of Communications and IT, Islamic Republic of Afghanistan 50 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.5.1 Reconstruction and Modernization of Afghan Post Organization (APO)

The Afghan Post Organization (APO) is still a state entity and an administration under MCIT. Contrary to the public telecommunication operators, the Postal Sector has not yet enjoyed reforms and attracted investments. The future development strategy for the Postal Sector encompasses the need of reconstruction and modernization, rewriting of the postal law (see 3.A.2), and setting up a postal regulator in the form of an independent authority under the Minister of Communication and IT.

4.5.1.1 Development of Services

Postal organizations in the world, both private and public, are encountering more and more complex business environment. The postal sector in Afghanistan is no exception to that. It has to face the ever-faster pace of change, the impact of globalization and global communication markets. New and affordable technologies need to be introduced. Customers are more and more demanding; competition is getting tougher. It cannot, therefore, be expected to generate self-sustaining revenues based on the limited offering of basic postal services. Thus, there is a real call for traditional postal organizations to become more responsive, commercial and competitive through understanding the dynamics of the market in relation to their business. New services need to be introduced, such as:

Inter-city buses Due to the small volumes of mail involved it does not make economic sense to use a dedicated fleet for exclusive transportation of mail to the head provinces and districts, therefore due to these low mail volumes, it would make much sense from an economic and social perspective to:

 Revive the old " mail bus system " (15 to 20 buses)  Mail bus system could be started on the network's secondary routes servicing all towns with a population of 15000 to 150000.  The fleet would follow specific routes. Based on a weekly program. Carrying paying passengers, small cargo and mail.  Or alternatively use existing transport companies to minimize and rationalize the costs based on volume variations

Express Mail Services (EMS) & E-Post Taking into consideration the profitability, length of the time creating product lucrative markets (e.g. EMS, IFS and E-Post), it is desirable to offer an EMS service. One of the priorities will be to clearly re-define a strategy of its license policy, while respecting competition laws.

This activity needs the following elements and implications: . The APO in order to offer a competitive EMS service will need to operate like any other business operating in this market, which implies a complete restructuring of the postal administration in order to separate the EMS activities from the current administration . Furthermore, the current APO does not have the adequate trained staff, neither the technical capital (i.e. T&T equipment, raining, etc.) to support this new activity.

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Expansion of Internet Services Kiosks As stated above, it does not appear reasonable to equip offices that neither have the staff competence nor the electricity and network capacity to manage IT tools.

Internet kiosk services with Internet access have been set up currently in the main central post offices of Kabul. This new service appears to be rather successful in view of the number of visitors.

However, dependent on whether this is considered as part of the development strategy of the APO, Internet service could be provided to the general public using whatever networking of service is available (GCN, DCN). This would impact the proposed investment on the suggested computerization scheme of the post offices.

Financial services Setting up a postal financial institution, with low-tech investments, to offer money-transferring service, development tool for under-served populations throughout Afghanistan. By offering rudimentary financial services, taking into account the vast postal network, the APO could play a key role in providing people access to economic activities of their community.

The APO in this phase would simply offer front desk office network and seek commercial partnerships with an existing bank that would carry out real back- office banking activities. The APO would thus not be introducing a new Bank on the market, merely extending geographical coverage of an existing one and thus providing to the Afghan community, in more remote areas access to services they would not have access to otherwise.

Most banks in Afghanistan are recently re-established or newly formed; yet they would not be in direct competition as they primarily target the lucrative segments of the market. Also, the introduction of basic micro-credit money order and payment of salaries is envisaged to be offered under this project.

4.5.1.2 The Development of Afghan Post

APO will also need to modernize and offer secured and reliable mail services, as mail is its traditional core business. The big Afghan companies will send mail to their main clients (statements, official documents, etc.) for this purpose, re- engineering of mail processes and new mail products with printing services is enhanced.

In Phase 1, the APO will launch new basic services to the Afghan population. These basic services will include mail and passenger transportation in mail buses IFS- based international money transfer in mail cities, basic micro-finance services in partnership with local Afghan Bank.

Phase 2 will be devoted to launch this larger range of services. This phase will require setting up a reliable and long-term IT infrastructure, enabling the Afghan post to secure the provision of services. This IT infrastructure will bring

Ministry of Communications and IT, Islamic Republic of Afghanistan 52 E-AFGHANISTAN: National Priority Program Proposal May, 2011

communications between the APO's retail outlets and HQ and other Afghan institution so as to offer new services

A: Technical Assistance

This will consist of technical assistance covering the following:  Consulting services (global design of the projects, organizations schemes)  List of equipment, installation, materials and staff required to launch the projects  Management of the projects

This technical assistance phase will cover approx. 200-250 man/day, representing one-year preparation phase. The phase will also respect the international organizations selection processes for projects # 1 and 2.

B: Development of Telecommunication Infrastructure of APO

A major part of the development of the APO will be devoted to creating a reliable and updated telecommunications capacity. This will improve institutional and service capacity of the APO, mainly focusing on its capacity to provide access to financial service. The type of financial and business management capacity and the level of IT of APO will enable it to offer secured and performing financial and other services to the Afghan populations by using GCN and DCN facilities.

C: Development of APO's IT system

The APO presently provides an Internet kiosk in the Kabul main post office, using Afghan Telecommunications service. Since APO service should not compete with the GCN and the DCN projects or any telecommunications operator, it will use the existing infrastructures of offer additional service. Once the appropriate business functions and IT infrastructures are created and the postal outlets are interconnected, the APO will be able to launch the above-mentioned new service.

A number of requirements must be met so as to expand APO capacity to provide a full range of government, financial and other business services to the postal outlet network. These include:

• Improved functional capacity in HQ especially for functions related to the provision of the new service (cash and liquidity management, transaction support, capacity to maintain account-based relationships with client) • Appropriate IT support for all key functions (full control over IT service, modern equipment and application software) • EMS tracking and Tracing system • Multipurpose tele-centers/E-post

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The project will have four main steps that will be covered by four main types of actions:  Interconnectivity for the APO platform  National Payment system architecture  Project Management  Impact measurement of Key functions

Appropriate interconnectivity is a key requirement to enable the Afghan population to have access to financial service and to improve infrastructure in rural areas. This means that the project should include solutions that will provide appropriate interconnectivity for all the postal outlets, allow growth and accommodate other relevant functions, such as e-government. A fast and cost- effective interconnectivity solution will be selected.

Interconnectivity will include the following equipment:

• Broadband hub in APO's HQ (Broadband platform) • Communications equipment (additional communications equipment per post office, such as additional fax and telephone) • Office automation (printer, scanner, copy-machine per post office

This equipment will enable the rural access capacity to full and reliable provision of APO's service.

4.5.1.3 Enhancing Mail Services

A: Re-engineering of mail delivery The re-engineering will also require the provision of some basic additional mail management material and machines. Afghan post will offer this service in the 34 regional cities. This project will be launched as soon as the addresses system is reliable in these cities. The implementation will take approx. 2 year and will start immediately after compilation of previous activates.

B: Decentralized printing centers in the main Afghan cities Printing mail services could be relevant solutions for the Afghan post to print the forms, philatelic materials, and other items. Banks could use it for their statements, utilities for invoices and advertising.

C: Project management A management team will be dedicated to the project. This team will include a project management, supported by several specialists in financial management, procurement, especially in IT system and equipment.

D: Hybrid mail services in Kabul With the development of the IT infrastructures in Afghanistan the APO could launch internet-based hybrid mail services.

Several postal operators offer such a solution. Their solutions are not expensive to implement as IT platforms are already in place. Designing such a solution for Afghanistan would require translation into Dari and Pashto, payment of basic options purchasing and maintenance of appropriate

Ministry of Communications and IT, Islamic Republic of Afghanistan 54 E-AFGHANISTAN: National Priority Program Proposal May, 2011

printers, and franchising cost (if relevant). This project could be established in a short-term time frame (6 months including translations).

Training schemes to the APO key account managers would be required to enable them to sell the solution to potential clients. A dedicated IT customer support force would also need to be trained so as to assist clients to use the hybrid mail solution (support call center).

Postal Financial payment Architecture The postal financial payment architecture will enable to offer fast and reliable payment service to the Afghan population. This project will include three modules.

Once the national payment system is completed APO can directly interconnect to the system of utilities and authorities and then exchange information on bills to be collected and amounts collected. This will facilitate collections and improve the quality of billing service. The APO platform will also provide access to financial service in rural areas.

4.5.1.4 Capacity Building

The APO currently employs 1,260 staff, of which, 638 are civil servants. 211 people work in headquarters at Kabul. Each of 34 provinces has a Central Post Office in the provincial capital, which acts as an administrative and logistical platform for the distribution of mail for all districts. The remaining staff is under yearly contracts mostly working on clerical positions.

A large proportion of the APO staff operates out of rural areas. The qualifications of the clerks and postmen are probably lower and less marketable. It is to be mentioned that a significant proportion of women occupy different positions.

The APO staff, particularly the postmen working in the field, enjoy high respect in the local community. Due to their general level of literacy and infrequency of rural inhabitants receiving mail, they have a positive image within the districts and local communities.

Management's ability to encourage and motivate change within the current organization, and human resource development interventions related to change management, are essential for a successful turnaround of the any APO strategy.

The implementation of continuous study programs (1 to 2 weeks) targeted at middle and senior management to gain an insight into modern marketing, sales, finance and operational practices within a modern postal organization would certainly be of strong benefit to the development of new skills of the management. To meet the training requirements, a postal academy/postal college needs to be established in Kabul.

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4.5.1.5 Reconstruction and Rehabilitation of the Infrastructure and modernization of the APO Post Offices

Afghan Post is far from meeting norms set by UPU in terms of services rendered by one post office i.e. 3-4 km and/or 3000-6000 population. 82 APO owned Post Offices (82 such buildings of varying sizes and conditions located mostly in large to medium sized towns) are proposed to be provided facilities to improve heating, lighting, better accessibility and sign-posting, and also rehabilitation of buildings from small structural damages. The post offices are to be equipped with securing PO Boxes, computerization and basic equipment. In order to meet the norm set by UPU, 120 new post Offices need to be constructed throughout the country in addition to the MCIT owned post offices (approximately 188).

4.5.1.6 Rewriting of the postal law

The Postal Law is being drafted. Refer 4.1.1.2.

4.5.1.7 Setting up a Postal Regulator in the form of an Independent Authority

Afghanistan Postal Regulatory Authority is being formed. Refer 4.1.3.3.

4.6 Strengthening the Ministry

This component aims to strengthen the Ministry of Communication and Information Technology so that it can meet the current and future challenges and do it role efficiently and effectively. This component will be implemented through the following sub- components:

1. Restructuring of the Ministry 2. Cyber Security Centre 3. Capacity Building in MCIT as well as other Ministries 4. Chief Information Office (CIO) cadre across the Government, 5. Creating a Resource Center for the Government on ICT mainstreaming, 6. Information and Communication Training Institute

Figure 11 : Component 6 (Strengthening the Ministry)

Restructuring of the Ministry

Cyber Security Centre

Capacity Building in MoCT as well as other Ministries

Chief Information Office (CIO) cadre across the

Government the Ministry the

Creating a resource centre for the Government on ICT

mainstreaming Component 6 : Strengthening Strengthening : 6 Component Information and Communication Training Institute

Ministry of Communications and IT, Islamic Republic of Afghanistan 56 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.6.1 Cyber Security Centre

The recent evolution of Information and Communication Technologies (ICTs) and the substantial innovations in the sector have resulted in a significant increase in productivity as well as the emergence of a wealth of new goods and services. Keeping organizational information assets secure in today’s interconnected computing environment is a true challenge that becomes more difficult with each new “E” product and each new intruder tool. Realizing the need for information security and reliability MCIT calls for establishing AfCERT (Afghanistan Cyber Emergency Response Team). The aim of establishing AfCERT is to develop a common understanding among all stakeholders on the nature and implementation of information security measures in Afghanistan. AfCERT can rapidly respond to contain computer security incident and recover from it. Another aim of creating AfCERT will be to establish relationships with other CERTs and security organizations, which can facilitate the sharing of response strategies and early alerts to potential problems.

The objectives of the activity are: . Establishing the AfCERT in Ministry of Communications and IT . Raising the floor of Cyber Space security in assisting the sites in proactive security ventures, while increasing the awareness of security incidents and assisting the community in applying the best security practices

Proposed action plan will be . Recognition of Afghanistan Cyber Emergency Response Team (AfCERT) to be in the beneficial interest of all stakeholders. . Drafting the general Afghanistan Cyber Emergency Response Team (AfCERT) technical, business, and operational policies. . Defining Constituency/Target users . Defining scope of operations . Defining operation procedures . Defining services to be provided . Educating users . Liaison with other CERTs . Establishment of AfCERT in Kabul.

Even the best information security infrastructure cannot guarantee intrusion or other malicious acts will not happen. When computer security incidents occur, it will be critical for an organization to have an effective way to respond.

The speed with which an organization can recognize, analyze, and respond to an incident will limit the damage and lower the cost of recovery. AfCERT can be on-site and able to conduct a rapid response to contain computer security incident and recover from it. AfCERT may also have familiarity with the compromised systems and therefore be more readily able to coordinate the recovery and propose mitigation and response strategies.

AfCERT can focus attention on security, and provide awareness training to the constituency. It can also provide expertise to do preventive and predictive analysis to help mitigate against future threats.

AfCERT will assist the Ministry of Interior, Attorney General Office and Supreme Court in investigating, gathering the forensics and supporting the prosecution during court related to cyber crimes.

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4.6.2 Capacity Building in MCIT

The ministry of communications and IT has endeavored to provide its employees with on the job and class-based training programs both inside and outside the country. These trainings and capacity building initiatives and programs cover managerial and technical trainings, short term and long-term study tours and master degree programs.

MCIT will still need support from donor organizations in this area for funding more advanced technical long and short-term capacity building programs.

4.6.3 Chief Information Office (CIO) Cadre across the Government

The Ministry of Communications and IT is the core body to promote, design, implement and adopt ICT in the country. In order to establish the basis for Government Wide Information Technology (GWIT) leadership and decision-making, EGRC will establish the CIO culture within the government. This will help: (i) focus on coordination across government related to various funding sources and the private sector; (ii) focus on Return on Investment (ROI) related to both expenditure and information models; (iii) create and maintain strategy and planning models for GWIT and align it to GWIT resources; (iv) implement uniform IT Governance based on world class models; (v) establish policies and procedures for Investment Management to include budget preparation and management, requirements, procurement, vendor selection, and asset management; (vi) establish Project Management methods and metrics; (iiv) establish an Enterprise Architecture for GWIT; and (iiiv) use e-Governance to enhance citizen knowledge, contact and services.

Afghanistan has made considerable progress in the adoption of ICT for governance and development and is committed to e-Government transformation. Adoption of CIO concept and structure in the public sector of Afghanistan is a natural next step in its e- Government transformation process. Though the country has over the last several years taken important steps towards ICT adoption in the government and in the society in general, such as expansion of telephone infrastructure, development of legal and regulatory framework, establishment of ICT and e-Government standards and frameworks, expansion of ICT infrastructure and systems, and indeed the expansion of ICT skills within the government and outside. There is need for the establishment of the organizational and institutional structure within the government that would create the important institutional base to carry forward the e-Government agenda of the government. Adoption of CIO concepts and structure is one of the most important steps to be taken in this regard. The following course of action is recommended.

1. CIO Concept and Structure should be adopted within the public service of Afghanistan as an essential and integral part of the long term e-Government program of the government. 2. MCIT as the lead ICT and e-Government agency of the government should spearhead the CIO adoption process within the public service of Afghanistan. In collaboration with the Afghanistan Civil Services Commission and other relevant agencies of the government, the MCIT would need to initiate structural adjustments in the organization of its various Ministries,

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Departments and Agencies so as to establish the post of CIO in each of its institutions in senior management cadre of the Afghanistan public service. 3. A CIO council would be established under the chairmanship of the Minister of Communication and IT and executive leadership of the Director General of ICT at MCIT. An executive committee, as described in this document, would also be established to provide oversight and strategic directions for CIO adoption project of the government. CIO council would provide the forum for collaboration, information, and knowledge sharing and skill development of CIOs. A CIO council website needs to be designed and launched. 4. The recruitment and training of CIOs should be centralized with the MCIT. The CIO designates would be imparted intensive training and orientation before their assumption of duties in the various institutions of the Government. MCIT has already initiated CIO training for some officers of the Government. This training program will need to be repeated and scaled up as described in this document. Other training program may need to designed and delivered that address specific technical or management areas of interest to CIOs.

MCIT will recruit 10 CIOs through this project and will deploy them in 10 Ministries during the time frame of the project. These CIOs will be empowered by the ICT Law; they will ensure that the line ministries adopt the policies and standards and also obey the e-Gov and IT audit procedures, which will help the EGRC to maintain good inventory of ICT platforms and products across the government agencies. EGRC will revisit them on time-to-time basis to ensure the platforms are being used properly and there is no misuse of the system. This will guarantee the investments from the donor funds and as well from the development budget of the government.

4.6.4 Creating e-Gov Resource Centre for the Government

Please refer to section 4.3.2

4.6.5 Information and Communication Training Institute

In 1973, ITU in collaboration with UNDP had established a very well equipped “Telecommunication Training Centre, TTC” in Kabul, Afghanistan. At that time the TTC had been recognized as a special junior college by Ministry of Education to train the students at Telecommunication Technicians level. According to the TTC curriculum, 9th grade students of high schools were admitted to the TTC and after 5 years of successful studying and passing 14th grade they could be graduated as telecommunication technicians. This center was the only educational institute for training telecommunication experts in Afghanistan.

Most of the existing technical staff of Ministry of Communications and Information Technologies (MCIT) are graduates of this center or were trained in this center.

At the beginning of the new era in Afghanistan, the Ministry of Communications and IT included development of human resources among its highest priorities. Development of human resources in communication and information technology plays a significant and important role in the reconstruction and development of the country both from social as well as economical point of aspects. In fact, telecommunication is the key ingredient of economic development. The whole process of development of this sector depends on the availability of trained and qualified people in the market. The huge task and challenge in reconstruction of Telecom sector and its modernization, depends on

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training young Afghan students and full capacity development of the existing staff that have been disconnected from the new era of the information and communication technology and the advances made in the last two and a half decades.

The Information Communication Technology Institute (ICTI) was established in 2007. It is a well-equipped institute with a new curriculum. In Afghanistan, each academic year starts on March 21st and lasts for nine months in a form of two semesters (four months and half each) and academic holiday is in winter for three months and the academic year ends in November. Presently, a total number of 209 students are studying at ICTI; 58 out of whom are freshmen, 55 are sophomore, and 62 are junior and 34 are senior students. There are 10 female students; ICTI tries to encourage more girls to apply to this Institute. All students are introduced to this Institute by Ministry of higher education according to their grade in the national entrance exam for universities.

Ministry of Communication and IT presents this four-year educational assistance project in order to further strengthen this newly established ICT Institute.

Objectives The main objective of this project is providing capacity building facilities to the lecturers of ICTI and academic enhancement of ICTI lecturers and technicians. This includes:

 A two-year master degree courses for lecturers and instructors according to ICTI requirement  Providing non degree fellowships for ICTI lecturers and especially for technical instructors and assistant due to ICTI requirement and its curriculum  Providing refresh courses at ICTI for lecturers and technician instructors by International instructors

It is expected that at the end of “Four-Year Educational Assistance Project” i.e. at the end of 2014, the ICTI instructors will have enhanced their technological knowledge to be able to conduct their relevant academic courses without outside assistance.

Outputs: The following outputs are expected under this project:

 ICTI lecturers get master degree to get qualification for becoming future professors.  ICTI technicians gain required skills and knowledge to mange to teach and work as librarians in ICTI labs  On-the-job training and refresher courses for current lectures and technicians

4.7 Strengthening the Sector

The World Bank will support MCIT to develop the capacity of the public sector to integrate IT further in its programs, while also accelerating the development of the private IT sector. It includes four activities. First, it will include support to create an IT sector development strategy and the required legal and regulatory instruments to support that strategy.

Second, it will support one or two pilot programs for G2C service delivery to complement the work on mobile applications. These programs could use the already deployed District or Village

Ministry of Communications and IT, Islamic Republic of Afghanistan 60 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Communication Networks (DCN, VCN) to provide citizens with access to forms, documents, or information that might not be delivered over the mobile telephone platform.

The third activity will be support to MCIT to design and set up the ICT Village through PPP mechanisms. Finally, this component will enable the creation and training of a core CIO/e-Leadership cadre that includes members from across Government.

4.7.1 National Internet Registry of Afghanistan

To improve allocation and registration services for the Asia Pacific Internet community, the regional Internet Registry, APNIC (Asia Pacific Network Information Center) provides for the establishment of National Internet Registries (NIRs) within economies of the region. This structure enables registry services to be provided in the local language and culture, allowing better services to ISPs requiring Internet resources.

National Internet Registry of Afghanistan (NIRA) would be not-for-profit, Government organization responsible for providing the service of allocating and registering Internet resources (such as IP addresses and Autonomous System number).

This entity will be responsible to provide registry services in the local language and culture, allowing better services to LIRs (Local Internet Registry) and ISPs (Internet Service Providers) requiring Internet resources. Such an Afghan Internet registry will allocate IP address space, autonomous system numbers, and other identifiers that might from time to time be appropriate, maintain databases of registry information, make appropriate views of the databases (for example, DNS, WHOIS, registration of Internet resources) which will be available publicly and tasks to be performed that are expected of an Internet Registry.

Objectives of the activity are:  Establishing the NIRA in Ministry of Communications and IT  Promoting faire and equal access to public Internet resources and its internetworking technologies in Afghanistan by maintaining and evaluating effective administrative process necessary for operation of the global Internet.  Supervision of public Internet resources (IPv4, IPv6, and Autonomous Number,) in Afghanistan

NIRs (National Internet Registry) have long existed within the APNIC (Asia Pacific Network Information Centre) structure and have fulfilled an important role in serving organizations within their respective countries or economies. APNIC has NIRs in China, Korea, Indonesia, Japan, Taiwan, and Vietnam, while the LACNIC has NIRs in Brazil and Mexico.

NIRA can satisfy the need for procedures and services that take account of local cultural differences; however it is important to note that NIRA must operate in a way that is consistent with regional and global resource management policies. It is also essential that NIRA is neutral, open, and transparent in all their operations.

The National Internet Registry of Afghanistan (NIRA) would be a not-for-profit wing of the Ministry of Communications and IT (MCIT), established with the aim to carry out the functions of managing, allocating, supervising and promoting the use of Internet address, autonomous system number (ASN) in Afghanistan; providing Internet-related guidance, statistics; joining international activities on Internet.

Ministry of Communications and IT, Islamic Republic of Afghanistan 61 E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.7.2 Incubator Program and Skills Development

The World Bank, in order to support sustainable applications creation and the development of a local IT sector, is likely to support an incubator and skills development program. These programs will build linkages with local telecommunications firms and ministries’ IT departments to drive demand for skilled workers and incubated businesses.

4.7.3 Skills Development Program for Universities and Private Institutions

Afghanistan has a very small and nascent ICT sector. It needs to adopt innovative strategies to increase the ICT skills in the private sector and leverage opportunities emanating from projects and programs being implemented in Afghanistan by the Government, private sector and donor agencies. It will be necessary for the following skills to be developed in the Afghanistan. The three-pronged approach is defined as follows:  CHART skills (Communication, Heuristic, Analytical, Relational and Technology): focus on foundational skills needed in the ICT sector  SMART Skills (Software, Mobile, Application, Research and Technology) : focused on IT industry  START Skills (Start-up, Training through Association with Remote Teams): focused on entrepreneurship and cutting edge technologies.

The objective of this activity is to develop and implement a detailed business plan for a program to develop skills for IT-based services in Afghanistan. The program will have multiple components, including a skills assessment, building partnerships with the private sector and designing the training programs and a pilot rollout. The consultant will work with multiple stakeholders including the MCIT, Education, lead academic and training institutions in Afghanistan, local and multinational companies and agencies/ NGOs based in Afghanistan and with the ICT sector association.

Scope of activity 1. Conduct an initial skills gap assessment 2. Develop a detailed business plan that will spell out the investments required for different components of the program together with clear timelines, responsibilities and a plan off execution. 3. Establish a private sector led initiative for the development of smart skills. The initiative should feed into improvement of curriculum design, forging of international/ regional partnerships, sourcing of content from companies and universities including the use of open source content from leading universities. Work closely with the private sector to establish and run the program. 4. Establish a program of entrepreneurship in IT. 5. Establish linkages with training institutes in Afghanistan and the region. 6. Help in designing linkages with ICT companies in the country so as to develop a core talent pool that can be deployed in the mobile applications areas. 7. Work closely with various stakeholders in Afghanistan in designing the plan. 8. To assist with detailed project design activities in the area of Skills for the IT/ITeS industry;

Ministry of Communications and IT, Islamic Republic of Afghanistan 62 E-AFGHANISTAN: National Priority Program Proposal May, 2011

9. Discuss with stakeholders, and taking into consideration implementation of similar projects, develop detailed implementation arrangements for project implementation; 10. Assist in coordinating public-private dialogue between government, academia and industry associations; and 11. Work with the Government and World Bank team to develop the draft Project Appraisal Document’s (PAD) sections on Skills.

5. Program Implementation Action Plan (3 years)

Program implementation Action Plan is attached in Annex 2.

6. Implementation Methodology

The Project Steering Committee (PSC): MCIT has instituted a Project Steering Committee. High-level management of the Project and strategic policy guidance in its implementation will be provided by PSC, having Members from Ministry of Finance, Ministry of Economy, Ministry of Law and Justice, industry association and academia. His Excellency Minister of Communications and IT is the Chairman of PSC.

Program Implementation and Coordination Unit (PICU): MCIT is implementing a number of projects in the ICT sector funded by the government and by other development partners. To manage its portfolio of investment projects better, MCIT has established a Program Implementation and Coordination Unit (PICU). His Excellency Deputy Minister-Technical of Ministry of Communications and IT is the Chairman of PICU.

Project Budget Committee (PBC): To ensure efficient Financial and Procurement Management of all the Projects, a Budget Committee, headed by His Excellency Deputy Minister-Technical has been formed by MCIT. The Budget Committee has suitable Members from Planning, Finance, Procurement, ICT Directorates and the PMOs of the Projects.

Project Interfacing Staff: To ensure capacity building of staff in all the related Departments, MCIT has created Project Interfacing Cells in Procurement, Finance, Planning and ICT Departments of MCIT. Suitable Staff has been nominated by each Department to work for the Projects on dedicated basis. This Staff is being specially trained by the PMO and also by the Experts/Consultants who are hired under the Projects. In addition to the Internal Training of these Project Interfacing Cells by the PMO, this Project Interfacing Staff will is being subjected to the external Training Courses, covering English language, Accounting Procedures, Administration, Management, Computer Operation, Procurement/Financial/Project Management etc, which will bring up their efficiencies for execution of the Projects better.

Project Management Offices (PMOs): Two Project Management Offices have been formed which are fully dedicated to the Projects. One PMO looks after the World funded Projects of MCIT and the second PMO takes care of all other Core Development Budget funded Projects. PMO Staff of both the PMOs manages and supports MCIT with project implementation. Heads of the PMOs report to the PICU. The PMOs employ a few international and national consultants for efficient implementation of the Projects.

The respective departments within MCIT handle core financial management and procurement functions for the project with support from the PMOs. The PMOs are responsible for the fiduciary aspects of the Projects, which will be conducted in a timely manner in accordance with the

Ministry of Communications and IT, Islamic Republic of Afghanistan 63 E-AFGHANISTAN: National Priority Program Proposal May, 2011 guidelines. On overall project financial management and procurement issues, the PMOs report directly to the PICU. The PMOs also support the Finance and the Procurement Department of the Ministry. The PMOs are also responsible for all the procurement activities under the projects and help to develop capacity of the Procurement Department of MCIT.

7. Challenge, Constraints and Solutions

7.1 Risk Assessment of main constraints

Major challenge is the deteriorating security situation facing Afghanistan. MCIT has laid emphasis on finding ways and means to roll out the infrastructural development Projects by carrying out coordination with the Provincial and District level governing bodies.

The use of IT remains limited in both the public and private sectors. Afghanistan ranks poorly on international e-Government rankings and the majority of ministries do not use IT strategically to support their programs. The focus is on automating as opposed to re- engineering existing procedures and processes. Furthermore, significant investments have been made in public sector IT, but these are not adequately underpinned by a coherent strategy. In the private sector, local IT services focus on low value tasks (such as supply and maintenance) and are dependent on the ebb and flow of foreign aid funded programs. During next 5 years, MCIT plans to rollout need-based ICT services to the rural population of the country.

Moreover, MCIT is facing problems with funds in expanding its coverage, modernizing of its networks and bringing benefits of technology to the government and people of Afghanistan. The lack of power supply, acquiring lands and getting the right of way with the municipalities add to the constraints while executing the development projects

The key challenge in the ICT sector is to build on the success of the sector while capturing opportunities to create the requisite infrastructure and ecosystem to mainstream use of ICT for social and economic development in a complex and volatile environment. The strategy adopted by MCIT is to focus on high priority activities that have substantial Government support and result in irreversible gains in terms of investments, job creation and economic growth.

Last but not the least, the retention of competent staff in the Ministry is a big problem due to a mismatch between salary levels in the government and the market

7.2 Recommended Solutions

The proposed projects of MCIT build on the strong growth seen thus far in mobile service delivery while accelerating expansion and improvements in backbone network connectivity. MCIT also aims to expand broadband connectivity to retail consumers and accelerate the development of the local private sector IT industry. To address the abovementioned constraints and challenges, emphasis will be placed on monitoring adequate compliance of private providers with the terms and conditions of the respective bidding documents and contracts.

Through careful technical design and drafting of bidding documents, MCIT will continue to ensure that technology choices are largely future-proofed. However, as applicable to all other line Ministries as well, MCIT’s capacity in procurement and financial management requires strengthening. This is the focus of the proposed projects for the Period 2011-2015.

Ministry of Communications and IT, Islamic Republic of Afghanistan 64 E-AFGHANISTAN: National Priority Program Proposal May, 2011

All the proposed projects of MCIT will have positive impacts on the local community, as it will provide it with employment opportunities. The contractors will be asked to hire local people for execution of all the projects.

MCIT has learnt many lessons during successful execution of projects over the last 7 years. MCIT plans to make the best use of the lessons learnt for meeting all the challenges, constraints and risks. To ensure 100 % success during next 5 years period, MCIT has ensured the following: (a) project development objectives are realistic, focused and achievable in the country, sector and implementing agency context; (b) project components support country priorities and have broad ownership among stakeholders; (c) the public sector has a key role to play in developing backbone networks; (d) project designs are flexible to adapt to a rapidly changing environment; (e) implementation support is included in project activities with a focus on retaining staff to ensure continuity and an accumulation of capacity within the implementing agency; and (f) activities aim to yield quick returns, build basic building blocks to support transition from emergency recovery to medium to long term reconstruction and development, and are sustainable over the long term.

Ministry of Communications and IT, Islamic Republic of Afghanistan 65

8. Costing/Budgeting

No Components Sub-Components No Deliverables Budget in Million US$ 1390 1391 1392 4.1 Legal, Regulatory, Policy and Institutional Framework 4.1.1 Legal Framework 4.1.1.1 ICT Law 0.10 0.10 0.10 4.1.1.2 Postal Law 0.10 0.05 4.1.2 Regulatory Framework 4.1.2.1 Cyber Security Regulations 0.10 0.10 0.10 4.1.2.2 Broadband Regulations 0.10 0.10 0.10 4.1.2.3 E-Governance Regulations 0.10 0.10 0.10 4.1.2.4 Digital Signatures Regulations 0.10 0.10 0.10 4.1.2.5 E-Government Interoperability 0.10 0.10 0.10 (Software) Framework 4.1.2.6 Information Technology Audits 0.40 0.10 0.10 4.1.2.7 Electronic Certification Regulations 0.10 0.10 0.10 4.1.2.8 Quality of Service Regulations 0.10 0.10 0.10 4.1.3 Institutional Framework 4.1.3.1 National ICT Council of Afghanistan 0.05 0.05 0.05 (NICTCA) 4.1.3.2 Afghanistan Telecom Regulatory 1 1 1 Authority (ATRA) 4.1.3.3 APRA 0.150 0.02 0.02 4.1.3.4 Electronic Certification Authority 0.10 0.10 0.10 (ECA) E-AFGHANISTAN: National Priority Program Proposal May, 2011

4.1.4 Policy Framework 4.1.4.1 Broadband Policy 0.10 0.10 0.10

4.1.4.2 Revision of ICT Policy 0.10 0.10 0.10 4.2 Expanding Telecommunication 4.2.1 Building Broad Band City Network 20 20 20 Network 4.2.2 Building Internet Exchange Point 4.2.3 Optic Fiber Network 24 32 39 4.3 E-Government 4.3.1 National Identity Cards 40 25 20 4.3.2 E-Governance Resource Centre 1 1 1 4.3.3 Web sites for service delivery or 0.10 0.10 0.10 interoperability 4.3.4 Establishing an ICT Village 1 1 1 4.3.5 Developing Electronic Government 1 5 5 Applications 4.3.6 Improving ICT Training and Digital 1 2 2 Literacy 4.4 M-Government 4.4.1 Enabling Mobile Government 1 3 3 4.4.2 Innovation Grants Program 1 2 3 4.5 Postal Sector Modernization 4.5.1 Reconstruction and Modernization 0.05 0.05 0.05 of Afghan Post Organization (APO) 4.5.1.1 Development of Services 1 1 1 4.5.1.2 THE DEVELOPMENT OF AFGHAN 2 7 POST(Capital Investment) 4.5.1.3 Enhancing Mail Services 0.05 1.5 1.5 4.5.1.4 Capacity Building 0.10 0.05 0.05 4.5.1.5 Reconstruction and Rehabilitation 4 3 3 of the Infrastructure and modernization of the APO Post

Ministry of Communications and IT, Islamic Republic of Afghanistan 67 E-AFGHANISTAN: National Priority Program Proposal May, 2011

Offices 4.5.1.6 Rewriting of the postal law 0.05 0.05 0.05 4.5.1.7 Setting up a Postal Regulator in the 0.02 0.01 0.01 form of an Independent Authority 4.6 Strengthening the Ministry 4.6.1 Cyber Security Centre 0.10 0.10 0.10 4.6.2 Capacity Building in MCIT 0.10 0.10 0.10 4.6.3 Chief Information Office (CIO) 0.20 0.20 0.20 Cadre across the Government 4.6.4 Creating a Resource Centre for the 0.50 0.50 0.50 Government on ICT 4.6.5 Information and Communication 0.10 0.20 0.20 Training Institute (IDB) 4.7 Strengthening the Sector 4.7.1 National Internet Registry of 0.10 0.10 0.10 Afghanistan 4.7.2 Incubator Program and Skills 0.20 0.20 0.10 Development 4.7.3 Skills Development Program for 0.10 0.50 0.50 Universities and Private Institutions Total / year 101.57 107.98 6.41 Total for 3 years 215.96

Additional Annexes

Annex 1: A Brief History of Telecommunication in Afghanistan Annex 2: Program Implementation Action Plan

Ministry of Communications and IT, Islamic Republic of Afghanistan 68 ANNEX 1

A Brief History of Telecommunication in Afghanistan

The Ministry of Communications and Information Technology (MCIT) of Afghanistan was set up in the year 1855. Afghanistan stepped in to the world of electric communication in 1898 by installing a one-to-one wired telephone at Arg Palace (Royal residence) in Kabul. In 1908 a small telephone system with 25-line capacity was installed at the northern tower of Arg Palace.

Telegraph service was the next telecommunication facility launched in Afghanistan in 1914. The telegraph installation with 2 KW power using mainly for military purposes has been set up in Babour Bagh (a historical garden in Kabul City, which carries the name of the first emperor of the Mughal dynasty, Zahir-ud Din Mohammad Babour). In 1919, several 50-line and 100-line telephone systems (switchboards) were installed in the Shahi-Du-Shamshera post office in Kabul. For the first time 14 students were given scholarships to get educated in wireless telegraphy abroad.

In 1920, another telegraph machine made in Britain was installed in Kabul, which was in use until 1932. Afghanistan became a member of the International Telegraph Union (ITU) on April 12, 1928 (The ITU established in 1865 was renamed as International Telecommunications Union in 1932). In 1930, seven short wave telegraph and telephone machines were purchased from the Marconi company and installed in Kabul, Heart, Mazar, Maymana and Khost cities. Later in 1933, another system with higher power antennas was purchased for the company and installed at the central telegraph building in Kabul.

In 1949, an automated relay telephone switch with the capacity of 1,300 lines was purchased and its cable network was completed in 1950. In 1953, another telephone switch with the capacity of 5,000 lines was provided from Siemens Company and after completion of the network, it was activated in 1957. Providing stations accessories from Siemens Company, the ministry established telephone links between Kabul and Mazar and between Kabul and Kandahar in 1959.

In 1961, a 1,500-line switch was purchased from Czechoslovakia and installed in Kandahar City. In the same year, there was established link between Kabul and Kandahar. Also Kabul was linked with Torkham and southern part of the country. Using 3-channel and 12-channel systems and about 14,000 km timber lifted wire line network in Afghanistan at that time, telephone communication services were provided across the country. The ground links were also used for international and transit calls with some neighboring countries Pakistan, Iran and Turkey. The total number of the channels that time exceeded 120.

Due to increasing demand for telephone services, a network expansion plan was launched in Kabul City in 1964. According to which, 3,000 telephone lines were expanded in Sher Shah Mena, 3,000 telephone lines were expanded in Shar-i-Naw, 200 telephone lines were expanded in Policharkhi and 5,000 telephone lines were expanded in the central area of Kabul City. The network was fully activated in 1969.

The first international radio transceiver station with the power of 20 kW was installed in Kabul, which linked Kabul-Paris by radio. All international calls were transiting through Paris that time. Later in 1964, one 10-kW radio transmitter and two receiver stations were provided from Philips company (Netherlands) and used to communicate with transit centers in Paris, New Delhi, London and Moscow.

In 1973, a network expansion project (the Second Telecommunication Project) was launched with the technical consultation of ITU in Kabul City. By the implementation of the project three automated sub-city switches were installed in Shar-i-Naw, Khair Khana and Microrayan. Providing E-AFGHANISTAN: National Priority Program Proposal May, 2011 network equipment from Siemens Company, there have been activated 13,200 new telephone lines in the city. Since 1979, Afghanistan is a member of APT.

In 1983-84, there have been installed telephone switches called Crossbars in provincial cities Jalalabad, Parwan, Polikhomri, Shebarghan, and Kanduz in mid 70s’s, basic telecommunication services including wired telephone and telegraph were accessible in district levels in Afghanistan. Although the telecommunication system mostly was limited to some government sections, the local residents had also limited access to the services.

In the last 2 decades (80s and 90s), socio-political upheavals and war not only destroyed Afghanistan’s infrastructures and wealth, but it also destroyed the telecommunication system. The system was mostly demolished and not taken care of telecommunication system. In most part of the country even very essential telecommunication services were not available. After the Interim Government in 2001 established in Afghanistan, the country obtains new horizons of political and socio-economic rehabilitation and reconstruction.

During the year 2002, when the Transitional Government and then in 2003 and 2004 when the government was constituted and then elected, along with the process of political stability, the government makes enabling environment for private sector to enter the rebuilding spheres of Afghan lives by approving the privatization system officially.

Due to geographical location of Afghanistan which most parts of Afghanistan is surrounded by mountains and a large number of Afghan people scattered in and out of Afghanistan made the telecommunication services and facilities a necessary issue for Afghanistan’s immediate reconstruction.

Since 2001 the Ministry of Communications and Information Technology (MCIT) was the first among the new political bodies of Afghanistan to design new strategy and policy for the sector the implementation of which enables the private organizations and companies to take care of the telecommunication system and invest in Afghanistan.

Ministry of Communications and IT, Islamic Republic of Afghanistan 70