Public Disclosure Authorized . ·v
. . • THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE Public Disclosure Authorized REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS OF THE REGIONAL COMMUNICATIONS INFRASTRUCTURE PROJECT (RCIP) CR.4614-TA) FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2017 Public Disclosure Authorized
Controller and Auditor General, . National Audit Office, 16 Samora Machel Avenue, P.O. Box 9080, 11101 Dar es Salaam, Tanzania. Tel: 255 (022) 2115157/8, Fax: 255 (022) 2117527 E-mail: [email protected] Website: www.nao.go.tz Public Disclosure Authorized
January, 2018 AR/RCIP/MWTC/2016/2017 TABLE OF CONTENTS
Abbreviations ...... iii 1.0 GENERAL INFORMATION ...... 1 1 .1. Mandate ...... 1 1.2. Vision, Mission and Core Values ...... 1 1.3. Audit Objectives ...... 2 1.4. Audit Scope ...... 2 1.5. Audit Methodology ...... 2 2.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL ...... 3
11 Office of the Controller and Auditor General AR/RCIP/MWTC /2016/2017 Abbreviations CAG Controller and Auditor General ISSAls International Standard of Supreme Audit Institutions IPSAS International Public Sector Accounting Standards PAA Public Audit Act No.11 of 2008 PAR Public Audit Regulation, 2009 PAC Public Accounts Committee PFA Public Finance Regulations, 2009 PPA Public Procurement Act, 2011 PPR Public Procurement Regulations, 2013 RCIP Regional Communications Infrastructure Project
lll Office of the Controller and Auditor General AR/RCIP/MWTC /2016/2017 1.0 GENERAL INFORMATION 1 . 1 . Mandate The statutory duties and responsibilities of the Controller and Auditor General are given under Article 143 of the Constitution of the URT of 1977 (revised 2005) and in Sect. 10 (1) of the Public Audit Act No.11 of 2008.
1.2. Vision, Mission and Core Values
Vision To be a highly regarded Institution that excels in Public Sector Auditing.
Mission To provide high quality audit services that improves public sector performance, accountability and transparency in the management of public resources.
Core Values In providing quality services, NAO is guided by the following Core Values: ,/ Objectivity: We are an impartial public institution, offering audit services to our clients in unbiased manner. ,/ Excellence: We are professionals providing high quality audit services based on standards and best practices. ,/ Integrity: We observe and maintain high standards of ethical behavior, rule of law and a strong sense of purpose. ,/ People focus: We value, respect and recognize interest of our stakeholders. ,/ Innovation: We are a learning and creative public institution that promotes value added ideas within and outside the institution . ./ Results Oriented: We are an organization that focuses on achievement based on performance targets. ,/ Team work Spirit: We work together as a team, interact professionally, share knowledge, ideas and experiences.
We do this by:- • Contributing to better stewardship of public funds by ensuring that our clients are accountable for the resources entrusted to them; • Helping to improve the quality of public services by supporting innovation on the use of public resources; • Providing technical advice to our clients on operational gaps in their operating systems; • Systematically involve our clients in the audit process and audit cycles; and • Providing audit staff with appropriate training, adequate working tools and facilities that promote their independence.
© This audit report is intended to be used by Government Authorities. However, upon receipt of the report by the Speaker and once tabled in Parliament, it becomes a public record and its distribution may not be limited.
Office of the Controller and Auditor General AR/RCIP/MWTC /2016/2017 1 . 3. Audit Objectives To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and are prepared in accordance with an applicable financial reporting framework; and whether laws and regulations have been complied with.
1 .4. Audit Scope The audit was carried out in accordance with the, the International Standards of Supreme Audit Institutions (ISSAls) and other audit procedures as were deemed appropriate under the circumstances. This covered the evaluation of the effectiveness of the financial accounting system and internal control over various activities of the Regional Communication Infrastructure Project.
The audit was conducted on a sample basis; therefore, the findings are confined to the extent that records, documents and information requested for the purpose of the audit were made available to me. Audit findings and recommendations arising from the examination of the accounting records, appraisal of the activities as well as evaluation of the Internal Control System which requires management's attention and actions, are set out in the management letter issued separately to the Management of Regional Communication Infrastructure Project.
As auditor, I am not required to specifically search for fraud and therefore, my audit cannot be relied upon to disclose all such matters. However, my audit was planned in such a way that I would have reasonable expectations of detecting material errors and misstatement in the financial statements resulting from irregularities including fraud. The responsibility for detection, prevention of irregularities and the maintenance of an effective and adequate system of internal control rests with the management of the Regional Communication Infrastructure Project.
1.5. Audit Methodology My audit approach included tests of the accounting records and other procedures in order to satisfy the audit objectives. My audit procedures included the following: • Planning the audit to identify and assess risks of material misstatement, whether due to fraud or error, based on an understanding of the entity and its environment, including the entity's internal controls. • Obtain sufficient appropriate audit evidence about whether material misstatements exist, through designing and implementing appropriate responses to the assessed risks. • Form an opinion on the financial statements based on conclusions drawn from the audit evidence obtained. • Follow up on the implementation of the previous year's audit findings and recommendations.
2 Office of the Controller and Auditor General AR/RCIP/MWTC /2016/2017 2.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL
Accounting Officer, Ministry of Works, Transport and Communication-Communication Sector 3 Moshi Street, P.0. Box 677, 40470 DODOMA.
REPORT ON THE AUDIT OF FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2017
Opinion I have audited the financial statements of the Regional Communications Infrastructure Project which comprises the statement of cash receipt and payments, cash flows statement for the year then ended, Statement of comparison of budget and actual amounts and a summary of significant accounting policies and other explanatory information set out to the audited financial statement to this audit report.
In my opinion, the accompanying financial statements of the Regional Communications Infrastructure Project present fairly in all material respects, Cash receipt and payments of the project for the year ended 30th june,2017 its Financial performance and its cash flow for the year then ended in accordance with International Public Sector Accounting Standards (IPSAS) Cash basis of accounting and in the manner required by the Public Finance Act, 2001 revised 2004.
Basis for Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the financial Statements section of my report. I am independent of the Regional Communication Infrastructure Project in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to my audit of the financial statements in Tanzania, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA Code.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Key Audit Matters Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on
3 Office of the Controller and Auditor General AR/RCIP/MWTC/2016/2017 these matters. In addition to the matter described in the Basis for Opinion section I have determined that there are no key audit matters to communicate in my report.
Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IPSASs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the entity's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAls will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
In addition, Sect. 10 (2) of the PM No.11 of 2008 requires me to satisfy myself that, the accounts have been prepared in accordance with the appropriate accounting standards.
Further, Sect. 48(3) of the Public Procurement Act No. 7 of 2011 requires me to state in my annual audit report whether or not the audited entity has complied with the provisions of the Law and its Regulations.
4 Office of the Controller and Auditor General AR/RCIP/MWTC/2016/2017 ..
Report on Other Legal and Regulatory Requirements Compliance with the Public Procurement Act, 2011 In view of my responsibility on the procurement legislation and taking into consideration the procurement transactions and processes I have reviewed as part of this audit, I state that, the Regional Communications Infrastructure Project procurement transactions and processes have generally complied with the requirements of the Public Procurement Act No. 7 of 2011 and its underlying Regulations of 2013 .
8th January, 2018
National Audit Office of Tanzania, P.O. Box 9080, 11101 Dar es Salaam , Tanzania. Tel: 255 (022) 2115157 /8 Fax: 255 (022) 2117527 Email: [email protected]
5 Office of the Controller and Auditor General AR/RCIP/MWTC/2016/2017 UNITED REPUBLIC OF TANZANIA
MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION
Tanzania Communications Infrastructure and eGovernment Project (Regional Communications Infrastructure Program - RCIP Tanzania Project Cr. 4614-TA)
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2017 TH E UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMM NICATION RCIP PROJECT FINANCIAL STATEMENTS
CONTENTS
STATEMENT OF THE MANAGEMENT RESPONSIBILITY ...... l
DECLARATION OF THE HEAD OF FINANCE/ACCOUNTING ON THE FINANCIAL
STATEMENTS FOR THE PERIOD ENDED 30 TH JUNE, 2017 ...... 2
1. BACKGROUND INFORMATION ...... 3
2. PROJECT COMPONENTS ...... 5
3. INSTITUTIONAL COORDINATION OF THE PROJECT ...... 7
4. PROJECT IMPLEMENTATION STATUS ...... 10
5. COMMENTARY ON THE FINANCIAL STATEMENTS ...... 52
6. PROJECT SUCCESS AND ACIDEVEMENTS ...... 57
7. PROJECT CHALLENGES ...... 59
8. CONCLUSION ...... 60
STATEMENT OF CASH RECEIPTS AND PAYMENTS PER CATEGORIES ...... 62
STATEMENT OF CASH FLOW ...... 63
DESIGNATED ACCOUNT ACTIVITY STATEMENT ...... 66
NOTES TO THE FINANCIAL STATEMENTS ...... 67 THE NITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
PROJECT GENERAL INFORMATION
I. IDA Credit Number 4614-TA
2 Project Number Pl 11432
3. Financier International Development Association (World Bank)
4. Borrower The United Republic of Tanzania (Ministry of Fi nance)
5. Project Title Tanzania Communications Infrastructure and eGovernment Project (Regional Communications In frastructure Program - RCIP Tanzani a Project)
6. Loan Amount USO I 00 Million (SOR 67 Million)
7. Execution Period 8 years up to 31D ecember, 2017
8. Implementing Entities i) Ministry of Works, Transport and Communication ii) President's Office-Public Service Management iii) Universal Communications Services Access Fund
9. Loan Signing Date 22 July 2009
10. Loan Effective Date 19 January 2010
11. Loan Closing Date 28 February, 20 15: Extended to 31 December, 20 17 12. Disbursement Deadline 30 April 20 17
13. First Repayment Date 15 September 2019
14. Last Repayment Date 15 March 2049
15 . Loan Term 40 years
16. Grace Period IO years
17. Interest rates I%: between 15 September 2019 and 15 March 2029; 2%: between 15 September 2029 and 15 March 2049 18. Commitment fee 0.5% per annum
19. Service fee 0.75% per annum
20 Main Bankers i) Bank of Tanzania, ii) CRDB Bank Limited,
21. Auditors Controller and Auditor General, National Audit Office, P.O. Box 9080,Dar es Salaam.
II T H E UN ITED REPUBLIC O F TANZ AN IA MINISTRY OF WORKS, TRAN PORT AN D COMM UN ICATION .. RC IP PROJECT FINANCI AL ST AT EM ENTS
ABBREVIATIONS AND ACRONYMS AGC Attorney General Chambers CAG Controller and Auditor General CITCC China Internati onal Telecommunication Construction Corporation DA Designated Account DCA Development Credit Agreement LJWLJM LJ ense Wavelength Division Multiplexing EALR Enhancin g Accessibility of Land Records Proj ect Eo l Expression of Interest GoT Government of Tanzania GovNet Government Communicati ons Network HR Human Resources ICT Info rm ati on and Communicati on Techn ology ICTC ICT Commission IDC Internet Data Centre ILM IS Integrated Land Management Info rmation System IP Intern et Protocol IP/MPLS lnte rnet Protocols - Multi protocol Label Switching IPSAS International Public Sector Accounting Standards IDA Intern ational Development Associati on IF R Interim Financial Report LGAs Local Go vernm ent Authorities MCST Ministry of Communication, Sc ience and Technology MWTC Ministry of Works, Transport and Communication MDAs Ministries, Departm ents and Agencies MSD Medical Stores Departm ent MNH Muhimbili National Hospital MoFP Ministry of Finance and Planning MTB Ministeri al Tender Board NAO National Aud it Office NBAA National Board of Accountants and Auditors NICTBB National !CT Broadband Backbone OFC Optical Fi bre Cable PFA Public Finance Act PKI Public Key Infrastructure PO-PSM President's Office - Public Service Management PSRP Public Service Reform Programm e RCIP Regional Communications Infrastructure Program RFP Request for Proposal RlTA Registration, Insolvency and Tru steeship Agency SOR Spec ial Draw in g Ri ghts SDH Synchro nous Digital Hierarchy TBT Tanzania Beyond Tomorrow TOR Terms of Reference TZS Tanzanian Shillings UCSAF Universal Communications Access Fund URT United Republic of Tanzani a US D United States Dollars VAT Valu e Added Tax WB World Bank
Ill THE UN ITED REPUBLIC OF TANZANIA MINI TRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT OF THE MANAGEMENT RESPONSIBILITY
The Management is responsible for preparing Financial Statements in accordance with the Public Finance Act no.6 of2001 section 25(4) for each financial year. The Financing Agreement requires the implementin g entities to prepare financial statements for each financial year that gives a true and fair view of receipts and payments of the reporting entity as at the end of the financial year. It also requires the implementing entities to ensure that the project keeps proper accounting record s that di sclose, with reasonable accuracy, at any time the fin ancial position of the reporting entity. They are also responsible for safeguard in g the assets of the reporting entity.
The Management accepts responsibility for the annual financial statements, which have been prepared usin g appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with the Cash Basis international Public Sector Accounting Standard (IPSAS); or Financial Reporting under the Cash Basis of Accounting, and in the manner required by the Section 25(4) of the Public Finance Act 200 1 as amended in 2004. The RCIP Project financial statements have also been prepared using special purpose framework to cater special needs of specific users of financial informati on.
The Management accepts responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control. Management are responsible for safeguarding the assets of the reporting entity and hence for taking reasonable steps for the prevention and detecti on of fraud, error and other irregularities.
To the best knowledge of the Management, the system of internal control has operated adequately throughout the reporting peri od and that the record s and underlying accounts provide a reasonable basis fo r the preparation of the financial statement for the 2016/2017 financial year.
The Management accepts responsibility for the integrity of the financial statement, the inform ation it contains, and its compliance with the Public Fin ance Act 2001 and instructions from the Treasury. Procurement of goods, works, consultancy, and non-consultancy services to the extent that they are reflected in these financial statements, have been done in accordance with the Public Procurement Act No. 4 of 2004 (as amended in 2011).
The Management accepts responsibility fo r the integrity of the financial statement, the information it contains, and its compliance with the Pub I ic Finance Act 200 I with amendment made in 2004, and instructions from the Treasury.
Procurement of goods, works, consultancy, and non-consultancy servi ces to the extent that they are reflected in these financial statements, have been done in accordance with the Public Procurement Act No. 4 of 2004. Nothing has come to the attention of the Management to indicate that the Ministry will not remain a goin g concern for at least the next twelve months from the date of this statement.
Mrs. Maria Sasabo (PhD) The Permanent Secretary (Communication) & Accounting Officer Ministry of Works, Transport and Communication 30 June, 2017 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRAN PORT ANO COMMUN ICATION RCIP PROJECT FINANCIAL STATEMENTS
DECLARATION OF THE HEAD OF FINANCE/ACCOUNTING ON THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH JUNE, 2017
The ational Board of Accountants and Auditors (NBAA) according to the power confe rred under the Auditors and Accountants (Registration) Act. No. 33 of 1972, as amended by Act No. 2 of 1995, requires financial statements to be accompanied with a declaration issued by the Head of Finance/Accounting responsibl e for the preparation of financial statements of the entity concerned.
It is the duty of a Professional Accountant to assist the Governing Body/Management to discharge the responsibility of preparing financial statements of an entity showing true and fa ir view of the entity position and perform ance in accordance with applicable International Accounting Standards and statutory financial reporting requirements.
Full legal responsibility for the preparation of financial statements rests with the Management of the sector, as under Management Responsibility statement on an earlier page.
I, Seleman H. Z. Shedaffa being the Head of Finance/Acco unting of Communication Sector- Vote 68, hereby acknowledge my responsibility of ensuring that financial statements of RCIP Project for 1 the year ended 30 h June, 20 17 have been prepared in compliance with applicable Accounting standards and statutory requirements.
I thus confirm that the financial statements give a true and fair view position of RCIP Project, as on that date and that, they have been prepared Based on properly maintai ned financial records.
Signed by: Position: Ag. Chief Accountant NBAA Membership No. G. A. 1983 Date: 30 June, 2017 THE UNITED REPUBLIC OF TANZAN IA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENTBYTHEPERMANENTSECRETARY
1. BACKGROUND INFORMATION
1.1 Introduction
The Permanent Secretary ("The Accounting Officer"), in the Ministry of Works, Transport and Communication, herein submits audited financial statements of the Tanzania Communications In frastructure and eGovernment Project (Regional Communications Infrastructure Program - RCIP Tanzania Project Cr. 4614-TA) for the year ended 30 June 2017.
1.2 Project Description
The RCIP Tanzania Project worth USO I 00 (SOR 67) million is financed by the World Bank under the International Development Associati on (IDA) Credit. The Development Credit Agreement (DCA) between the United Republic of Tanzania (URT) and the World Bank was signed on 22 July 2009 and the Credit became effective on 20 January 20 l 0. The project is being implemented jointly by the Ministry of Works, Transport and Communication (MWTC) and the President's Office- Public Service Management (PO-PSM).
The original availability period of 40 years concessionary loan covers the timeframe of five (5) years with effect from January 2010 through February 2015. The principal amount plus interest shall be repaid in equal semi-annual instalments over a period of 30 years effective from 15 September 2019, upon expiry of the grace period of IO years. The interest component of the loan facility is calculated at the margin rates of l % and 2%, between 15 September 2019 and 15 March 2029; and between 15 September 2029 and 15 March 2049, respectively.
1.3 Project Disbursements
The RCIP Tanzania Project worth USO I 00 million is financed by the World Bank under the International Development Association (IDA) Credit. The Development Credit Agreement (DCA) between the United Republic of Tanzani a (URT) and the World Bank was signed on 22 July 2009 and the Credit became effective on 20 January 2010. The project is being implemented jointly by the Ministry of Works, Transport and Communication (MWTC) and the President's Office- Public Service Management (PO-PSM).
A total of SOR 44.7 million (USO 64 million), approximately 64% of the proj ect funds on a cumulative basis, had been disbursed by 30 June 20 17. Notable improvements in project disbursements have been achieved due to implementation of major contracts for eGovernment application, GOVNET and Rural Connectivity. Similarly, project activities valued at US$93,2l l,566 (93.2%) have been committed at the year-end date.
In addition, there is a significant reduction in loan amount by approximately USO 5 million due to exchange rate translation between SOR and USO. The implication to this reduction is that unallocated funds of USD 5 mill ion will be utilised to cover exchange loss.
3 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
1.4 Objective of the Project
The objective of RCIP Tanzania Project is to support the Government of Tanzania initiatives including: (i) to lower prices for international capacity and extend the geographical reach of broadband networks; and (ii) to improve the Government's efficiency and transparency through eGovernment applications. The Project also complements and supplements initiatives of the National JCT Infrastructure Development Program.
The RCIP Tanzania Project provides funding for critical Government initiatives in the Information and Communications Technology (ICT) sector including:
a) The Universal Communications Access Fund (UCSAF) - critical for the provision of high quality and affordable communication services to rural and underserved areas of Tanzania, b) e-Government Applications for enhanced efficiency in the provision of effective, transparent and affordable quality of service within the Government and to the General Public, and c) The Government Communications Network (GovNet) for facilitating voice and data communication connectivity within the Public service sector.
The implementing agencies are geared to ensure that their respective project activities are carried out in accordance with agreed project objectives and as per performance targets.
1.5 Project Closing Date
The RCIP Tanzania project became effective on 20th January 20 IO for a period of six years whereby the initial project closing date was set on 28 February, 2015. On ih January, 2015 the World Bank granted the extension of the proj ect closing date for a period of 22 months to 31st December 2016.
Delays in project implementation necessitated extending the closing date. Generally, the project progress has improved slightly as compared to last year. Delays in the critical steps in time constrained project activities are likely to affect the proj ect's completion date as well as achievement of the Project Development Objectives (PDOs).
On 21 st July, 2016 the Government requested a second extension for 12 months thereby bringing the loan closing date to December 31 , 2017.
1.6 Project delays and constraints
The major risk in the course of implementation of the RCIP Project is the likelihood of delaying the completion of scheduled project activities because of project constraints in terms of resources, time and scope as follows:
• Slow start to execute project activities during the first three years of implementation (i.e. 2009/2010, 2010/2011 and 20 11 /2012); • Lengthy process for issuance of "No Objections" from World Bank. There is also a general concern from World Bank that important documents such as terms of reference, evaluation reports, concept notes, etc. were partially completed by implementing agencies when requesting for "No Objection" from the Bank; • Limited project definition, scope design, procurement activities and implementation timeframe .
.j THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUN ICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
• Lack of human capital to manage multi-stakeholder projects due to limited skills and expertise in managing integrated ICT projects; • Low disbursement due to financial management issues; • All project activities need World Bank' s no objection as well as respective implementing agencies' Ministerial Tender Board (MTB) approvals. There were notable substantial delays in the approval process which had negative impact to the project lifecycle.
1.7 Disbursements after the Loan Closing Date
The RCIP project management team is trying every respect to ensure that a ll planned project activities are implemented within the extension period of 31 December 20 17. In order to complete disbursements for executed and delivered project activities prior to the loan closing date of 31 December 2017, all outstanding payments will be paid before the disbursement deadline date to 30 April 2018.
1.8 The Government of Tanzania Support
The Government of Tanzania recognizes that financing of ICT infrastructure in the country is a shared responsibility. The Government has been dedicating substantial resources as counterpart funding for the implementation of RCIP Tanzania Project. For example, in the approved budget for the year 2016/17, TZS 2 billion was set aside to support development and implementation of ICT projects including RCIP and NICTBB infrastructure.
The Government, through the Ministry of Works, Transport and Communication (MWTC) continues to invest in ICT infrastructure in the country. Building the National JCT Broadband Backbone (NICTBB) infrastructure is among the efforts of the Government to enable easy access of JCT services to all citizens at affordable costs.
In order to achieve this goal, the MWTC is implementing a phased approach for developing the NICTBB through the National JCT Infrastructure Development program with the primary objective of providing broadband ICT connectivity to Tanzanians at al l levels including at the national, regional, district, community, village, and households levels.
2. PROJECT COMPONENTS
The RCIP Project comprises of four major components, namely:
Component l: Enabling Environment (USO 14 million); Component 2: Conn ectivity (USO 60 million); Component 3: eGovernment Applications (USO 22 million); and Component 4: Project Management (USO 4 million).
5 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT ANO COMMUN ICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
2.1 Component 1 - Enabling Environment (US$14 million)
This component provides support for capacity building in order to strengthen the policy and regulatory environment and promote further sector reform in order to maximize benefits from access to international capacity including the following activities: i.Strengthening of the ICT policy making capacity at Ministry of Works Transport and Communication (MWTC);
ii. Capacity building for the Tanzania ICT Board;
iii.Technical assistance during implementation of the Universal Access strategy;
iv.Design of contracts for pre-purchase of international capacity;
v.Feasibility study, system design and preparation of bidding documents for the Government Communications Network;
vi.Capacity building and certification of trainers ("training the trainers") to enhance ICT use within the Government of Tanzania (GoT) through an ICT HR development program;
vii.Capacity building to deal with changing environment and fast technology evolution in areas such as cost-modelling, interconnection, regulatory tools to guarantee open access to national and international infrastructure, essential facility regulation, competition policy and regulation, spectrum and other scarce resource management; viii.Capacity building and technical support for the development and implementation of the National ICT Infrastructure Development Program; and
ix.Airing of information, education, and communication messages.
2.2 Component 2 - Connectivity US$60 million This component provides additional funding for the National ICT Infrastructure Development Program in Tanzania through the fol lowing subcomponents:
(a) Support for pre-purchase of international bandwidth for priority targeted user groups (US$ I 0 million) - Advance purchase of international bandwidth to boost the use of broadband capacity by priority groups;
(b) Financing for the Government Communications Network (Gov Net) (US$20 million) - Financing of optical fiber cable connectivity and !CT equipment for Ministries and other MDAs in Dar es Salaam; and
(c) Support for the extension of coverage and access to ICT services in rural and underserved areas using PPP arrangements (US$30 million) - Competitive award of " least-cost" capital subsidies through an OBA tender process to private operators in order to achieve universal access targets by encouraging the private sector to invest in rural and underserved areas which are commercially not viable.
6 TH E UN ITED REPUBLIC O F TANZAN IA MINISTRY OF WORKS, TRANSPORT AN D COMM UN ICATION RC IP PROJ ECT FINANCI AL ST ATEM ENT S
STATEMENT BY THE PERMANENT SECRETARY (Continued)
2.3 Component 3 - eGovernment Applications US$22 million This component fi nances the implementati on of targeted eGovernment appl icati ons such as:
(a) Nati onal Bu siness Portal - Provision of a one-stop shop (i .e., website) for all business registrati on informati on needed by th e public and business entities as well as downl oadable li censing applications and links to the national business registration database;
(b) Telemedicine System fo r the Muhimbili Nati onal Hospital (MNH) fo r improvement of health care and deli very of health services using e-referrals, e-radiology, and e-consultations amongst the major hospitals in Tanzani a;
(c) Scaling up the Nati onal Vi tal Registrati on System - Extension of the coverage of an electronic vital record s registration system fo r births, deaths, marriages, divorces, and wills;
(d) Enhancing Accessibility of Land Record s - Improvement of the quali ty of land records and associated cadastral map systems, topographic maps and im ages and making them accessible to the public through websites and mobile phone text messages. Thi s project was transferred to the PMO's offi ce in year 201 4;
(e) e-Procurement Pilot for the Medical Stores Department (MSD) - Provision of an end-to-end electronic system fo r acquisition of medi cal suppl ies fo r selection and purchase, to delivery at the MSD warehouse (linked to the warehouse system), and ultimate dissemination to the medical fac ilities; and
(f) Additional applications that the Government of Tanzania will determine at a fu ture date - introduction of new technologies is occurring at a rapid rate in the field of eGovernment and the Government needs the fl exibility to respond to changin g priorities and opportunities fo r development.
2.4 Component 4 - Project Management Support US$4 million
Thi s component supports the project management related issues including project coordination, procurement, fi nancial management, monitoring and evaluation, project communicati on, and enviro nmental and social safeguard s. T hi s component also provides support through office equipment, incremental operating costs, and audits.
3. INSTITUTIONAL COORDINATION OF THE PROJECT
The principal implementing agencies of the RCIP Tanzania Project are the Ministry of Works, Transport and Communication (MWTC) in co llaboration with the President's Office - Public Servi ce Management (PO-PSM).
3.1 Ministry of Works, Transport and Communication (MWTC)
The MWTC is responsibl e for ensuring prompt and efficient overall coord ination, monitoring, reporting, evaluation and communication of RCIP Tanzani a Project activities along with im plementation and management of the Nati onal ICT Broadband Backbone (NICTB B) Proj ect.
7 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
[n particular, MWTC is responsible for the overall coordination of the RCIP Tanzania Project as well as implementation of: (i) Enabling Environment; and (ii) Part 2(a) of Connectivity components (pre purchase of international bandwidth).
3.2 President's Office, Public Service Management (PO-PSM)
The PO-PSM is responsible for ensuring effective implementation of Connectivity component 2(b): Financing for the Government Communications Network, USD20 million and Component 3 - eGovernment Applications, USO 22 million. Component 3 is being implemented in collaboration with a number of beneficiaries including but not limited to:- i) The Ministry of Land, Housing and Human Settlements; ii) Registration, Insolvency and Trusteeship Agency (RITA); iii) Muhimbili National Hospital (MNH); iv) Public Procurement Regulatory Authority (PPRA) v) Government Procurement Services Agency (GPSA) vi) Medical Store Department (MSD); vii) Ministry oflndustry, Trade and Investment (MITI); and viii) Records and Archives Management (RAM), a Division of PO-PSM.
3.3 Universal Communications Service Access Fund (UCSAF)
The Universal Communications Service Access Fund (UCSAF) is responsible for Connectivity component 2 (c), Supporting extension of coverage and access to JCT services in rural and underserved areas using public private partnership arrangements. The Fund is also responsible for enabling accessibility and participation by communication operators in the provision of communication services, with a view to promoting social, economic development of the rural and urhirn 11nclerservecl r1rer1s ; to prnvicle for ;:iv;:iilllhility of comm11nicr1tion services hy est;:ihlishine; ;:i leg;:il framework for universal service providers to meet the communication needs of consumers.
3.4 The eGovernment Agency (eGA)/Beneficiary
The eGovernment Agency (eGA) is charged with the responsibility for the coordination, oversight and promotion of e-Government initiatives in the Ministries, Departments and Agencies (MD As.) and Local Government Authorities (LGAs). eGA is responsible for implementation of the eGovernment component in collaboration with PO-PSM.
3.5 Other Stakeholders and Beneficiaries
Other stakeholders of the project are the beneficiaries, namely: Medical Stores Department of the Ministry of Health, Community Development, Gender, Seniors and Children; Muhimbili National Hospital (MNH); Registration of Insolvency and Trustees Agency (RITA); Land Acquisition and Registration Department of the Ministry of Lands, Housing and Human Settlements; and Business Registration and Licensing Agency (BRELLA).
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STATEMENT BY THE PERMANENT SECRETARY (Continued)
3.6 The Project Steering Committee (SC)
In connection with the implementation of the National !CT Broadband Backbone (NICTBB) network, two bodies were formed for project implementation functions, these are: a Steering Committee (SC) and a Technical Team.
According to the Financing Agreement, the Project Steering Committee shall be responsible for, inter alia:
(i) Policy guidance; (ii) Review of progress made towards achieving the Project's objectives, and making recommendations for removal of any obstacles to the timely implementation of the Project; (iii) Review of consolidated Annual Work Plans and Budgets (A WPB}, and consolidated reports on the implementation of the Project; and (iv) Review of documents submitted by the MWTC and PO-PSM.
According to requirements outlined in the RCIP Project Documents, SC should meet quarterly to discuss progress of project implementation and make necessary decisions and approvals. The SC comprises of Permanent Secretaries, Chief Executives or Directors from relevant sector stakeholders as follows:
(i) President's Office - Public Service Management; (ii) President's Office - Regional Administration and Local Government; (iii) Ministry of Education, Science, Technology and Vocational Training; (iv) Ministry of Finance and Planning; (v) Ministry of Lands, Housing and Human Settlements Development; (vi) Office of the Attorney General; (vii) Ministry of Works, Transport and Communication (Works); (viii) Ministry of Works, Transport and Communication (Transport); (ix) Ministry of Finance and Economic Affairs - Zanzibar; (x) Ministry of Communications and Transport - Zanzibar; (xi) Ministry of Energy and Minerals; (xii) Ministry of Works, Transport and Communication (Communication-Chair); (xiii) ational Environment Management Council - NEMC; (xiv) Universal Communication Service Access Fund (UCSAF); and (xv) Tanzania Telecommunications Company Limited- TTCL.
From time-to-time the representatives of the following stakeholders might be co-opted into the Steering Committee as resource persons:
(i) Ministry of Industry, Trade and Investment; (ii) Tanzania Communications Regulatory Authority (TCRA); (iii) Business Registration and Licensing Authority (BRELA); (iv) Registrar and Insolvency Trustees Agency (RITA);
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STATEMENT BY THE PERMANENT SECRETARY (Continued)
(v) Ministry of Health, Community Development, Gender, Seniors and Children; (vi) Muhimbili National Hospital (MNH); and (vii) Medical Stores Department (MSD)
3. 7 RCIP Project Technical Team (TT)
The Technical Team comprises of selected technical staff from the Implementing Agencies. The beneficiaries did nom inate focal persons to join the Technical Team as needed. The Technical Team supports the Steering Committee. Technical Team meetings are held twice a month, amongst other issues to receive and discuss on progress reports of the whole project. The secretariat comprises of staff working under lCT Division in the MWTC.
4. PROJECT IMPLEMENTATION STATUS
Project disbursements of SDR 44.7 million (USO 64 million), approximately 64% of the total project funds on a cumulative basis recorded a general increasing trend as at 30th June 2017. Similarly, the undisbursed loan balance for the same period stood at USD 35,985,676. Disbursements have improved considerably due to payments of GovNet, Rural access and eGovernment applications contracts under implementations. The total di sbursed amount comprises of fo ur maj or components as well as the designated account balance (Table l ):
Component l :- Enabling Envi ronment: US O 4,873,672; Component 2: - Connectivity: US O 43,464,979; Component 3:- eGovernment Applications: US O 9,809, 179; Component 4:- Project Management: USO 3,646,809 and Designated Account balance: USO 2,219,684
Tablel: Project Expenditures by Components
SIN Project Loan Disbursed Undisbursed % Implementing Activity (USD) (USD) (USD) Disbursed Agency
l Enabling 14,000,000 4,873,672 9, 126,328 35% MWTC, POPSM Environment and UCSAF 2 Connectivity 60,000,000 43,464,979 16,535,021 72% MWTC, POPSM and UCSAF 3 eGovernment 22,000,000 9,809,179 12, 190,821 45% POPSM Appli cations 4 Project 4,000,000 3,646,809 353, 191 9 1% MWTC and Management POPSM Total 100,000,000 61,794,640 38,205,360 62%
5 Designated - 2,219,684 (2,219,684) - MWTC and Account POPSM Total 100,000,000 64,014,324 35,985,676 64% MWTC, POPSM Expenditure and UCSAF
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STATEMENT BY THE PERMANENT SECRETARY (Continued)
4.1 Component 1 - Enabling Environment
The main objective was to provide support for capacity building in ord er to strengthen the policy and regul atory environment, and promote further sector-reform in order to maximize benefits from access to international capacity. During the period, a disbursement rate of 35% per component budget (71 % per component project fund s) was recorded. In thi s area, low disbursement was recorded because the following activities were partiall y implemented usin g other resources as per Table 2 indicated below:
1. Strengthening of the ICT poli cy;
11. Technical assistance during implementati on of the Universal Access strategy;
111. Design of contracts for pre-purchase of international capacity; Table2: Expenditure by Components
SIN Project Activity Disbursed Planned Undisburse % Implementing (USD) (USD) d (USD) Disbursed Agency
I Rural Telecom 393,396 514,713 ( 12 I ,3 17) 76% UCSAF 2 GovNet 338,582 379,815 (41,233) 89% POPSM 3 Publicity and 265,990 325,976 (59,986) 82% MWTC awareness 4 NPKl 102,272 267,838 (165,566) 38% MWTC 5 eSchools I, I 06,748 1,242, 105 ( 135,357) 89% MWTC Connectivity 6 ICT & VC 199,620 940,620 (74 I ,000) 2 1% MWTC equipment 7 Science and 218, i67 218, i 67 - i00% MWTC Technology 8 Cyber Security 6 11 ,160 660,185 (49,025) 93% MWTC Laws 9 £CT 64,242 140, I 37 (75,895) 46% MWTC Commission 10 ICTBB and 277,243 480,513 (203,270) 58% MWTC Broadband I I M & E Survey 308,647 468,050 (159,403) 66% MWTC 12 Environmental 12,350 65,000 (52,650) 19% MWTC Impact Assess 13 Training and 975,256 1,120,948 (145,692) 87% MWTC workshops Sub Total 4,873,673 6,824,067 (1,950,395) 71% 14 Unallocated Funds 7, 175,933 (7, 175,933) - Total 4,873,672 14,000,000 (9,126,328) 35% Expenditure
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STATEMENT BY THE PERMANENT SECRET ARY (Continued)
4.1.1 National ICT Broadband Backbone (NICTBB)
The Government, through the Ministry of Works, Transport and Communication (MWTC) continues investing in ICT infrastructure in the country. Construction of the National ICT Broadband Backbone (NICTBB) infrastructure is among the efforts of the Government to enable easy access to ICT services to all citizens at affo rdable costs. In order to achieve thi s goal, the former Mini stry of Communication, Science and Technology introduced a phased approach for developing the NICTBB through the National !CT Infrastructure Development program with the primary objective of providing broadband ICT connectivity to Tanzanians at all levels including at the national, regional, di strict, community, village, and households levels. The program has five phases with phases 1, rr, III (sub phase I) already completed. During implementation, the NICTBB project activities such as capacity building, project management, monitoring and evaluation are mainly faci litated through RCIP funding.
Detailed implementation of the NICTBB infrastructure is provided below: Phase I & II: Covered a total distance of 7,560 ki lometres of Optic Fibre Cable (OFC) backbone covering twenty four regions of Tanzani a Mainland; connectivity to submarine cables (EASSy & SEACOM) and cross-border connectivity with neighbouring countries namely; Kenya, Uganda, Rwanda, Malawi, Burundi and Zambia. The total investment for these two phases amounted to USO 170 million and TZS 17 .72 billion (local component).
Phase III: Enhancing the national backbone infrastructure to have footprint and a service point at each district headquarters; estahl ishi ng a fu ll-m esh IP layer (TP-MPT .S) to the existing DWDM and SDH layers; implementation of Data Centres for hosting IT services, implementation of the Public Key Infrastructure, and the implementation of common interest user networks such as health, educational and research. This Phase has four components as follows:
(a) Component 1: The construction of ad diti onal OFC links into the NICTBB network to achieve a mesh OFC transmission network topology; (b) Component 2: The construction of regional and district OFC transmission networks; (c) Component 3: The construction of an IP-layer of the NICTBB and a national Internet Data Centre (IOC) faci lity of high standard; and (d) Component 4: Implementation of additional Internet-based app li cation systems for the government to extend the ongoi ng eGovernment project to local governments: ERN ET, e Schools etwork, e-HealthNet, Community Information Centres (C ICs), and Public Key Infrastructure (PKI).
The total investment required for Phase Ill of the NICTBB is estimated at USO 403 million (foreign component), TZS 2 billion (local component) and resources from RCIP funding of USO 300,000. Under Phase III , USO 93 .77 million (foreign component) was secured and disbursed fo r im plementation of the first sub phase (S ub Phase I) of Phase III. Implementation of phase III, sub phase II is currently under the planni ng stage.
Phase IV: A PPP arrangement among the MWTC and Telecommunications Operators fo r rolling out of OFC Metro Ring Networks in urban areas and building missing links to complement the NICTBB initiatives. The total investment for this phase is approximately USO 80 million which is being sourced by telecommunication operators.
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STATEMENT BY THE PERMANENT SECRETARY (Continued)
Phase V: Implementing last mile broadband connecti vity nati onwide intended to provide access to the metro networks in urban areas and the NICTBB to government institutions, businesses and the general public. The investment outlay for Phase V will be determined after completion of Phase III and Phase IV.
Benefits of NICTBB Projects
Through deployment of the NICTBB and its conn ections to Submarine Cables substantial and sustained ICT services has moved a country as a part of global community to adopt the fo urth industrial revolution in di fferent aspects as follows:
1. Improved Communication Services: The increase of 56% for the mobile phone subscriptions from 17,642,408 users in 2009 to 40,173, 783 users in 20 16; intern et services increased for 97% from 520,000 users in 2009 to I 7,263 ,523 users in 20 15; communication service tariffs decreased fo r 54% from TSh. 147 in 2009 to TSh. 67 per minute in 201 5, etc;
11. Improved Technology in the Delivery of Financial Services: Thi s is attributed to the use of mobile phones in accessing fi nancial services offered by telecommunication companies such as Vodacom, Airtel, Tigo, Zantel and Halotel, and commercial banks offering mobile banking (e-banking) services. As of June 2016, the use of mobile financial services has increased to 17.3 million adults' equivalent to more than 58% of adult population, whi ch ranks Tanzania among the top countries in the world in the use of mobile financial services.
Us.e of mobile financial servi ces has been deployed fo r micro-insurance, micro-secunt1es, micro-credit (M-Pawa and Wezesha) and micro-savings. It has also included micro-pension, payment of bills, payment of tax, road licenses, salari es and other business transactions. These services have been possible through partnerships between Mobile Network Operators (MNOs) with banks, insurance companies and the capi tal markets and regulatory authorities. The micro-credit product of M-Pawa has reached 2 miiiion subscribers with a totai transaction valu e of TZS 18.4 billion. Tanzani a has also become one of the first countries in the world to im plement interoperabil ity of mobile financial services aim s at making mobile money services more cost effecti ve and affordable.
11 1. Connecting Higher Learning and Research Institutions (HER! s) with Last Mile Connectivity; where by a total of 28 HERis with 31 campuses have been covered by the project;
1v. E-Schools Project: To date, 376 schools and centres have received ICT equipment and training on the better use of these devi ces. In total 417 schools already connected to the N ICTBB to enhance learning process.
v. Installation of Video Conference: The Government has completed the installation and the establ ishment of Video Confe rence fac ilities in several Government offices.
v1. Telemedicine: The Government th ro ugh the Dar es Salaam Institute of Technology (DIT) and in coll aboration with Universal Communication Services Access Fund (UCSAF) continued with the implementation of te lemedicine projects. So fa r, ten hospitals are already connected to telemedicine.
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v11. Establishing Housing Address and Zip Codes: Furthermore, the Government has continued with the implementation of the Settlement Plan Addresses and Zip Codes in Dar es Salaam, Arusha, Tanga and Zanzibar. etc.
4.1.2 Implementation of Rural Communications Project in Collaboration with VIETTEL Tanzania Ltd
In July, 20 14 the former Ministry of Communication, Science and Technology (MCST) signed a Memorandum of Agreement with VIETTEL to invest in the telecommunications infrastructure and services in the rural and underserved areas.. The project was initiated to support the Government initiatives for establishment of Universal Communication Services Access Fund (UCSAF) to provide the communication services in rural and underserved areas. The implementation of the Rural Telecommunications project is being implemented under PPP arrangements whereby the Ministry is required to facilitate the right of ways, monitor and provide sustainable environment to fast track its implementation.
VIETTEL provides the investment for construction of 20,000 Km of the fiber network consisting of backbone, distribution, metro and last mile connections to cover 150 District Councils in the country. The Rural project will provide optic fiber terminations and internet services to 150 District councils, 150 District Hospitals, District Police stations and 65 Postal Offices. During the implementation phase, project management support, monitoring and evaluation were mainly facilitated through RClP funding as shown below:.
SIN Assortment Description Status
1. Infrastructure Completed 4,238 BTSs (2G and 3G); and provided Completed Deployment telecommunication services to Tanzanian people; Compieted in staiiation or 80,649 wooden poles for overhead Completed optical cables; Completed deployment of 18, 192 km of optical cable, among Completed which are 12,532 km of buried cable and 5,660 km of overhead cable. 2. lmplementin Internet services for schools: 405/300 schools Completed g VlETTEL (the target of the second year deployment) commitments Optical fiber termination for Di strict Council Office: 123/ 137 Completed to the offices by optical cable Government Optical fiber termination for District Hospital: 74/92 hospitals Completed by optical cable Optical fiber termination for District Police: 111 /124 Stations Completed by optical cable Optical fiber termination for Department Post Office: 68/73 Completed Offices by optical cable Optical fiber termination for Tribunal court: 26/27 Offices by Completed optical cable Covered communication for Villages: 2536/3000 Villages Completed (Target 3000 villages).
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STATEMENT BY THE PERMANENT SECRETARY (Continued)
4.1.3 e-Schools Connectivity Project
The Government of the Uni ted Republic of Tanzania (URT) th rough the Ministry of Works, Transport and Communication (MWTC) is implementing among others, the form ulation of, coordin ati on of, development and implementati on of ICT policies, strategies, programmes and plans for enhanced natio nal socio-economi c growth. Thu s, the Connect a School, Connect a Community (CSCC) Project is in -line w ith the activities of the Ministry. The project is bein g im plemented under the collaboration of MWTC, the International Telecommunicati on Union (ITU) as project stimulators and the French Ministry of Foreign and European Affairs (MFAEE) and World Bank as the development partners (sponsors). At local level the project is coordinated by MWTC and implemented in collaboration with the Ministry of Education, Science, Technology and Vocational Training and the President's Office - Regional Administrati on and Local Government.
This initial arrangement which was coordinated by ITU at international level, successfully benefited forty nine centres among whi ch forty two are secondary schools, one primary school, three health officer schools as well as th ree Tanzani a Posts Corporation centres. Following the addition of eighty secondary schools (sponsored by the World Bank th rough RCIP Project) into thi s project, currently we have managed to equip a total of one hundred twenty nine schools (129) across the country covering 95% of al I the regions in the country but yet very far from the goal if we count the coverage district-wise. Having reached a total of one hundred and twenty nine schools across the country and for the coun try to register utmost results from thi s project, we fo und it essential to have a well qualified group of personn el with the ri ght skills to manage and support the well being of the !CT equipment and also to train fe llow teachers and students.
In fulfi llment of this requ irement, in June, 20 15 the Min istry in collaboration with the former Ministry of Educati on and Vocati onal Training (MOEVT) and other representatives from the National Team of !CT trainers fo r Second <1 ry Schools conclucted a workshop to develop a comprehensive and well customized content prior to a training program scheduled for two representatives fro m each school among the one hundred twenty nine schools already covered. The developed ICT content is according to the syll abus of the ICT/ICS in secondary schools issued by MOEVT in 2007.
Between September and October, 20 15 training was conducted and it in volved two representati ves from all the beneficiary schools. The training mai nly covered issue on computer fundamentals, Word Processing, Spread Sheet (Excel), Power Point presentation (PPT), Computer Networking and Internet and Preventive Maintenance. The trainees were examined after the training and the module included both theory and practical knowl edge though 80% was practical based.
So far the initiative has registered positi ve achievements and the targeted communities are benefitin g fro m the services at the same time the country is reali zing the goals and objectives of the pl an. Despite all the achi evements still there are some challenges posed as such which include necessity to scale up the project, fill missing links especiall y the most disadvantaged and more capacity buildin g of trainers/administrators in those schools so as to enable them to maintain the !CT equipment and enhance the teaching and learning experi ence in the education sector.
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4.1.4 Video Conference Systems
The project to install video conference systems to provide transmi ssion of full motion video images and high quality audio between multiple locations among Government offices has two phases: • Phase I was for installation of Video Confe rence (VC) systems in the Revolutionary Government of Zanzibar (Zanzibar and Pemba regional offices). • Phase II is for supply and in stallation of equipment (Bridge) for linking Video Conference stations for the Government of the United Republic of Tanzania.
The contract for supply and installation of video conferencing systems fo r Zanzibar and Pemba regional administration offices and Zanzibar State House at contract price of USO 187,620 was signed on 3 June 2014. Testing and commissioning of phase I was successfully completed in September 2014 and the systems are operational. Bidding documents fo r the tender for supply and installation uf Video Conference (VC) equipment for additional new Regions (i.e. Geita, Njombe, Simiyu and Songwe) is at the tendering stage. Phase 2 is for purchase and installation of Bridge equipment.
4.1.5 Science, Technology and Innovation (STI)
Project over view
The Government of the United Republic of Tanzania has been implementing a program of reviewin g and revitalizing the National Innovation System since 2010. Thi s review encompasses ICT as one of its key components.
This review employed the methodology developed and widely used by the Organisation fo r Economic Co-operation and Development (OECD) countries. This methodology consists of a self-assessment that culminates in a Background report, a review process done by external people that climaxed into the External Review and a Synthesis Report that consolidated the observations from the two assessments forming the basis on which the recommendations would be implemented. The review exercise benefited immensely from the di scussions and a number of presentations which were made during the Smart- Partnership Dialogue which was held in Tanzania.
The resultant recommendations from the review were presented to a number of stakehold ers and finally, to the Inter-Ministerial Technical Committee (IMTC) which is a meeting of all Permanent Secretaries. I.t was the IMTC which directed the Ministry to use the Big Result Now (B RN) based methodology to develop a clear roadmap of implementing the recommendations which are contained in the review documents. BRN methodology was preferred as it provides a pl atform fo r different stakeholders to participate in setting priorities and having a buy-in for implementers fro m different sectors.
Involvement of Stakeholders
To achieve the above goal the former Ministry of Works, Transport and Communication organized a meeting (Lab) whi ch brought together a total of 120 participants from different sectors of the economy. During the Lab-meeting stakehold ers jointly identified and agreed on targets and method of implementing the key review recommendations.
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Outcome from the Lab
The participants reached a consensus of prioritizing four main areas for implementation namely: I. Strengthening Science Technology and Innovation Governance and Leadership; 2. Refocusing Research and Development Towards Business and Enterprises; 3. Linking teaching and learning towards innovation and entrepreneurship; 4. Strengthening business firms as producers and adopter of new innovations. Syndication of the Lab report
The Lab report was presented to selected key stakeholders to enable them understand their role during the implementation of the roadmap. A total number of six stakeholders meetings were held as follows: • Tanzania Academy of Sciences; • Permanent Secretaries from the Revolutionary Government of Zanzibar; • President' s Office Planning Commission; • Members of the National Science and Technology Commission; • Medical Research Institute; and • The Working Council of the former Ministry of Communication, Science and Technology.
After syndication the report was finalized by incorporating inputs and recommendations from stakeholders.
Way Forward
The Ministry of Education, Science, Technology and Vocational Training in partnership with other stakeholders wi ll champion the implementation of the suggested solutions. The expected outcomes of the proposed change will result in the development of the STI-led socio-economic development that will help Tanzania accelerate the pace of development, to attain the middle income status as envisaged in the Vision 2025.
4.1.6 Capacity Building
PO-PSM capacity building plan with estimated cost of USD 2,387, I 00 was developed and approved by the World Bank for implementation with effect from February 2013. Activities earmarked for this plan were awareness creation programs, tailor made training, study visit programs, networking sessions through workshops and conferences, and annual e-Government events.
Implementation of capacity building for eGovernment is overseen by a training committee of ten people selected by PO-PSM from e-Government Agency (three), PO-PSM (three), PCCB (one), TRA (one), TGLA (one) and MLHSD (one). MLHSD is a representative of other beneficiaries implementing e-Government applications. Capacity Building (CB) is a cross cutting activity and will also involve MDAs and LGAs. The committee will ensure the relevance of identified CB activities and enable efficient implementation.
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CB activities conducted by PO-PSM up to 30 June 2016 are study visit to Bangladesh on birth registration by 15 people, study visit to Singapore on business portal by 15 people, study visit to Korea one-procurement by 15 people, attendance to a conference one-Government in Uganda by 5- people, conference one-Government in Korea by 5 people, conference one-Government in Kenya by 5 people, human resource training to 42 eGA staff, and participation at the 13th European Conference on eGovernment (ECEG 2013) in Italy by 5 staff. Planned conferences to France and Malaysia were not attended due to logistical problems during the period under review.
MWTC and UCSAF training plans were prepared and submitted to World Bank for review and approval in 2013. The World Bank recommended that instead of approving the plans, tailored capacity building activities which are viable and eligible under RCIP project financing can be requested through the ICT Directorate under MWTC for consideration and requesting no-objection from World Bank.
4.1.7 Cyber Security Laws
The rapid technological advances in telecommunications, information technology and broadcasting as well as the convergence of technologies, services and delivery platforms have made it necessary for countries in both the developed and developing countries to create and operate in an open, dynamic and responsive legal and regulatory framework to support the development of ICTs within the economy and society. On the other hand, [nformation and Communication Technologies (ICTs) have provided unprecedented opportunities to accelerate socio-economic development, while at the same time, the misuse of ICTs and their vulnerabilities create new and serious threats having the potential to harm the society.
In making sure that these cyber threats are dealt with, the Government of the United Republic of Tanzania enacted two very important legal instruments; the Cyber Crime Act, 2015 and the Electronic Transaction Act, 2015 on 15 Apri I 2015.
These legislations will help define the laws, create governing bodies for cyber operation on the identified cyber areas and/or add roles to the current controlling bodies to govern the new cyber issues. The legal framework will create a 'controlled environment' against virtual crimes that threaten national security and stability. Also, it will provide legal guidelines to bring to identify and charge crimes committed through or in electronic transactions and e-commerce that threaten business growth between companies, organisations, consumers, suppliers and other service providers.
The international frameworks that we abide to including East African Community (EAC) Legal Framework for Cyber Laws, 2008; Southern African Development Community (SADC) Model Laws and African Union Convention on the Confidence and Security in Cyberspace, 2012. All these legal framework, require each country to have a minimum of three fundamental cyber laws namely Cybercrimes Act, Electronic Transactions Act and Personal Data Protection Act. We already have the first two acts in place, now only remaining with the Personal Data Protection Act. In order to implement this legislation efficiently three activities were implemented during the year:
(i) Capacity building to law enforcers, Ministries and Agencies Lawyers and ICT staff; (ii) Creating awareness to the public at large regarding enforcement of the Cyber Security laws;
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In addition, the Government through the Ministry of Works, Transport and Communication (Communication section) is now continuing with processes of enactment of the Personal Data Protection Act, 2017. For the enactment processes to be successfully implemented there are some activities that will need to be covered. First one is to gather stakeholders' views which will be followed by a consolidation meeting to tinalize the cabinet paper and submit to the relevant authorities for consideration and further processes.
Secondly it is important to improve capacity of relevant officers on the necessary subject matter i.e. expertise in data protection as well as capacity building to law enforcers specifically police and prosecutors. After getting authorization from the Cabinet meeting, the Ministry will be required to draft the bill then submit it for enactment processes. Before and during legalization of the Act, MWTC need to create public awareness to the citizens to avoid legal cases due to ignorance and also make implementation of the Personal Data Protection (PDP) Act highly effective.
4.1.8 The Tanzania JCT Commission
The President of the United Republic of Tanzania issued a notice on establishment of the National ICT Commission (ICTC) vide Government Notice No. 532 of November 2015 to drive ICT development in the country. The ICTC's mandate is to provide advice, strategic planning, implementation and investment in JCT; monitor and coordinate National ICT initiatives and provide foresight in trend and opportunities for ICT uptake for the nation's socio-economic development. The ICT functions include:
• Fostering investment in ICT; • Build capacity and promote ICT profession and standards; • Advise and collaborate with other stakeholders on research, setting of standards and foresight; • Hosting and sustaining of national ICT Infrastructure and programs and any other functions.
The Ministry of Works, Transport and Communication in August 2016 allowed its six employees to work in the ICT Commission in the following positions: Business Support Services; procurement management; technical services; secretarial and reception services, driving and records management. For a period of July to September 2016, the project has also facilitated establishment of ICT Commission office premise at the Old Postal Building along Edward Sokoine.
Consultancy services for development of draft JCT Commission Bill commenced in August 2016 and completed in June 20 l 7after fulfilment of legal procurement requirements for engagement of the consultant. Secondly, the project facilitated the first workshop on ICT profession in August 2016 which gathered 76 ICT professionals countrywide to discuss and agree appropriate framework for profession recognition in the country.
The ICT Commission held its first ICT Profession workshop which focused on introducing ICT Professionals and stakeholders on the need for accreditation of ICT Professionals in Tanzania. This agenda arose from the fact that JCT Professionals practicing ICT in the industry are yet to have a legal accreditation body for their professional recognition and development. The workshop involved participation of industry ICT CEO's, professionals from within Tanzania and representative from the International Professional Practice Partnership (IP3) which is the world renowned ICT profession accreditation organization. The workshop was the first in a series of workshops that will be organized by the ICT Commission to afford a forum for topical national discussions on the JCT Profession.
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Currently the ICT Commission is setting up registration and accreditation procedures expected to commence in the year 2017.
Furthermore as. part of its 2016/2017 work plan, the ICT Commission sets to have in place national JCT innovation guidelines and programs implementation together with establishment of Software Parks towards having in place [CT Smart Cities in Tanzania.
4.1.9 Production and Airing of TV and Radio Programs, and Production and Printing of Promotional Materials and insertion of articles in newspapers and journals
The objective for development of content is to produce 20 TV & 30 Radio Programs information and messages on RCIP-Tanzania, National ICT Broadband Backbone and development of the [CT Sector in Tanzania. All of the TV and radio programs will be aired in different TV and Radio Stations then be uploaded in the Ministry's website. The TV and Radio program will cover all information about the project including activities and objectives of the project put emphasis on the following aspect;
• Interview key project stakeholders and develop video and radio content in English and Swahili to share RCIP-Tanzania activities, objectives and goals achieved; • Documenting relevant video and audio production proposals with precise spot, theme, documentary outline and other video and audio needs analysis of the Ministry of Works, Transport and Communication & RC IP-Tanzania in accordance to the policies. and guidelines; • Conducting relevant video component interviews as per the guidelines; • Carry out scripting, video shooting and supply of the equipment for the requirement; • Capture and edit video and audio as shot from the field; • Package the final product of video and audio to suit the MCST audience; • Translating the Video and audio; and Provide reports with regards to the video and audio produced and sought
Production and airing of all 20 TV & 30 Radio Programs successfully completed during the year. Also production and printing of promotional materials successfully completed. Preparations of Newsletters and insertion of articles in newspapers and journals have been completed.
4.1.10 Environmental Impact Assessment
In the course of implementing the project the World Bank Missions advised a compliance environmental audit to be conducted in order to assess compliance with safeguards policies of the bank as per requirements outlined in the Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF) for the project; and also to identify constraints in implementation, document best practices, and suggest measures for effective implementation and monitoring of environment and social issues.
The audit was conducted from February 2017. The audit was carried out using standard internal guidelines for carrying out compliance environmental audits. This involved reviewing project documents especially the ESMF and RPF; national policies; World Bank Missions reports; and many others. An intensive stakeholders consultations was conducted in Dar es Salaam and project sites.
20 THE UNITED REPUBLIC OF TANZANIA MINI TRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRET ARY (Continued)
A total of 118 tower stations sites in 26 regions; 63 Govnet sites; and 24 LGA sites in 6 regions were vi sited. A check list developed during pre-audit stage was used in collecting information apart from direct observation. A simplified risk analysis tool was used to determine the significance of identified existing and potential impacts of non-compliance scenario.
The main conclusions from the environmental audit are; i) The project has increased communication connected to many parts in Tanzania. In remote areas, communities are very happy of the project. Moreover, it has increased money transactions; ii) The RCIP implementation in Tanzania adhered to environmental and social safeguards by following national policies and legislation on environment. ESIA was conducted for most communication towers and environmental certificates are in place. Since it was envisaged at the beginning that the implementation of the Govnet project would cause minor impacts from the fact that the optical fibre cable were laid along existing road reserves or telephone ducts, no ESIA was conducted; iii) There was no Environmental Specialist in the implementation team of the client, which to a large extent affected follow up on adherence to ESIA related issues; iv) Service providers or project operators were not acquainted with ESMF and RPF documents and their requirements. Neither, they had any contractual obligation to adhere to the ESMF and RPF. However, through ESIA the contractors committed themselves to sound environmental practices as condition of Environmental Certificates; v) Major impacts that are common to many sites visited include: vegetation clearance; soil erosion; noise pollution; sanitary land and water pollution; land speculation; dominance within surroundings (visual intrusion); poor waste management; locational impacts; vi) Land speculation was rampant to site implemented by MIC, VODACOM and Airtel. This is a serious observation that must be followed up; vii) All but one service provider has a provision for constructing toilets for guards at the communication towers. A decent sanitary facility is essential to every person in modern times; viii) Poor signal or connectivity is being experienced in many remotely located areas. This frustrates the users. Some complain of spending more air times due to poor signal reception.
4.1.11 Conducting Monitoring and Evaluation Survey
A consultancy firm has been hired to conduct a survey to get updated results indicators included in the RCIP Monitoring and Evaluation (M&E) framework, and also collect data in Phase I which will enable him to analyze outcomes of the RCIP in Phase 2.
The bidding process, tender evaluation, seeking approvals of MTB and WB including tender award and execution were conducted and completed during the year. The Consultant was expected to undertake the survey twice - immediately after the contract is awarded and at the end of 2016. This would allow providing primary data to be used to measure changes in outcomes and outputs of the project and thus facilitate effective monitoring and evaluation of the RCIP. Actual project progress and performance as per surveyed results, is provided under Table 3.
2 1 THE UN ITED REPU BLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RC IP PROJECT FINANCIAL STATEMENT S
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Table 3: Actual Project Progress and Performance
Item Expected Actual Performance% E- Schools2 80 80 62 GovNet Net-MD A -connectivity 72 71 99 Rural Telecommunications- UCSAF 303 134 44 Video conferencing system 5 5 100 National Business Portal ( system) I Telemedicine system ( centers) 8 National Vital Registration System (centers) 60 e-Records/e-office ( system) EARL/IMMIS 1 e-Procurements( system) 1 Cyber Laws: Establishment of ACTs. 3 2 75 National Public Key infrastructure (system} I Establishment of ICT Commission l I 100 Production of TV Broad casting 20 10 50 Production of Radio Broadcasting 30 10 33.3 Moni toring and Evaluation 2 phases 2 l 50 International Internet Bandwidth 176 176 100
4.1.12 National Public Key Infrastructure (NPKI)
The main obj ective of the project (NPKI) is to provide verification of users' identity through certificate authority (CA) by bindings of public keys and certificate owner id enti ty information, such as name, ID No, E-mail address and so on. Through the application of advanced encryption (cryptography) technologies, which will provide four security guarantees which are confidentiality, integrity, authenticity and non-repudiation to electronic information (transactions) during exchange through a chosen network.
With this obj ective users of selected network (trusted Network) will have a secure and re li able transactions has speculated in the e transacti on Act 2015 which establishes NPKI. The table4 below summarizes the security services, threat and solutions that can be provided by PKI.
Table 4: Security services, threat and solutions
Security Services Threat Solution Confidentiality Data Leakage Encryption Integrity Data Forgery Digital Signature Authenticity Unauthorized User Digital Signature Non-repudiation Repudiation Digital Signature
This project is estimated to cost a total of USO 8 million of which US O 150,000 has been allocated from the RClP project fo r the Feasi bility study and design of the system. The Contract with Individual consultant has been signed for implementation of this activity and work started in September 2016. THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RC IP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRET ARY (Continued)
The system design and study were completed in May 2017 whereby the consultant submitted a ll contractual deliverables as per the ToRs as per table 5 below. Due to limited funds under RCIP project, MWTC wi ll solicit funds from other sources/projects for implementation of NPKI based on the feasibility study and system design. Potential sources funds to implement the PKI system include:
(i) The Government internally generated resources; (ii) NICTBB proceeds; (iii) Digital Tanzania project under WB funding and (iv) Other international financiers
Table 5: Feasibility Study and Design of PKI
SIN Deliverable Status Completion date a) ToR for Consultant to conduct Feasibility Study For Completed June 2016 NPKI submitted to WB and approved b) Consultant Procured Completed October 2016 c) Inception Report For Feasibility Study Submitted Completed November 2016 d) Draft Document Submitted; I. Business, Functional, Non-Functional Requirements, System Design Specification and Legal Framework and Policy, Legislative and Regulation Requirements/Framework
2. Tender Document for deployment of NP Kl
3. Business Operational Modell document for December NPKI Completed 2016 e) Final Document Submitted; 1. Business, Functional, Non-Functional Requirements, System Design Specification and Legal Framework and Policy, Legislative and Regulation Requirements/Framework
2. Tender Document for deployment of NP Kl
3. Business Operational Model document for Completed May 2017 NPKl THE NITED REPUB LIC OF TANZAN IA M INISTRY OF WORKS, TRANSPORT AND COMMUNICATION RC I P PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
4.2 Component 2 - Connectivity
The main objecti ve of this component for implementation of the national JCT infrastructure development program in Tanzania through pre-purchase of the government internationat bandwidth; financing of government communications Network (GovNet) and provide support for the extension of coverage and access to JCT services in rural areas using PPP arrangement is being implemented successfull y. Funds disbursements stood at 72% as per Table 6 below:
Table6: Expenditures under Connectivity component
SIN Project Disbursed Planned Undisbursed O/o Implementing Activity (USO) (USD) (USD) Disbursed Agency l Internet l 1,645,479 11 ,778,641 ( 133, 162) 99% MWTC bandwidth 2 GovNet 16,703,283 2 1,966,029 (5 ,262,746) 76% POPSM 3 Rural Telcom 15, l 16,2 18 27,711 ,446 (12,595,228) 55% UCSAF Sub-Total 43,464,979 61,456,116 (17,991,137) 71% Savings from - 1,456,116 (1,456,116) - Component 3 Total 43,464,979 60,000,000 (16,535,021) 72% Expenditure
4.2.1 Pre-purchase of international bandwidth
This sub-component has been all ocated a total of US$ 11.4 million for advance purchase of international bandwidth to be allocated to selected priority groups such as MDAs, schools, universities and hospitals. The obj ective is to lower the cost of accessing internati onal bandwidth in order to boost the use of broadband capacity for these users.
On 5 June 2012, the former Ministry of Communication, Science and Technology (MCST) and Tanzania Telecommunications Company Limited (TTCL) signed a contract for procurement of internet bandwidth worth USD 9,263,000 out of which USO 8,850,000 is financed through IDA funding. The contract is for the supply of a IO year !RU of 1.55 Gbps (10 STM-1) internet bandwidth. In addition, the contract worth USO 2,572,814.18 for the supply, installation and commissioning of in ternet termination equipment between MCST and Copycat Tanzania Limited was signed on 5 June 2012.
lnstallation of equipment, commissioning and creati on of Aggregation Point of Presence (A-POP) was completed in October 2012. Similarly, the international bandwidth with capacity of 1550 Mbps was delivered in Febru ary 2013. The project was commissioned in March 2014 after successful utilization of the bandwidth capacity. The bandwidth provides subsidised internet services to target user groups such as MDAs, Schools and Hospitals. By June 2016, utilizati on based on capacity assignment reached l 00% of the entire bandwidth of l 550Mbps with over 206 Government institutions utilizing the service. Connection of additional users was temporarily stopped till in stall ation of Spam Filter. Purchase and delivery of Spam Filter was done in December 2016 and install ation was completed in January 2017. THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
4.2.2 Government Communications Network (GovNet)
The purpose of the project is to bui,ld a private government network that will facilitate not only telecommunication service but also spearhead efficiency in the government by sharing of resources ancl recl11ction of expenses ;::irisine; from 11n-coorclinMe.cl conne.ctiv ity initi ;:i tive:s within the government such as:
i) Centralizing and share some common Government Applications ii) Keeping privacy and integrity and sharing of government ICT applications and related data between relevant Institutions iii) Establish and providing reliable and high capacity voice inter·communications between institutions; iv) Establish video conferencing between institutions · v) Optimal and efficient use of the existing public infrastructure
The project extends and scale up the already installed Optical Fiber Network which currently links seven government institutions to reach and connect a total of 72 MDA's. The feasibility study was completed during the year 2013 which resulted in network design and development of three major project phases:
a) Supply, Installation and Commissioning of Network Equipment, Optic Fibre Cable (OFC) and Related Services and Accessories for Government of Tanzania Communication Network. b) Supply, Installation and Commissioning of Structured Local Area Network, Computer Equipment, IP PBX and related services and accessories for Government of Tanzania communication network. c) Supply, Installation and Commissioning of Structured Local Area Network, Computer Equipment, IP PBX and related services and accessories for Local Government Authority.
(i) Last-mile fiber optic connectivity to 72 MDAs
This phase is divided into two assortments as tabulated below:
Table 7: Last-mile fiber optic connectivity to 72 MDAs
SIN Assortment Description Contract Status
3. Assortment I Supply, Installation and Contractor: Softnet Completed Commissioning of Network Technologies Ltd Equipment for 72 MDAs in Contract value: USD Dar es Salaam, Dodoma and 5,819,808.21 Pwani based on MPLS technology 4. Assortment Supply, installation of last Contractor: TTCL Completed II mile connectivity (Optical Contract value: Fibre Cables, Accessories USO 1,964,055.43 ancl Re l;::iterl C:ivil Works) for 72 MDAs in Dar es Salaam, Dodoma and Pwani
25 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
This phase covered 72 MD As, among them, 68 are located in Dar es Salaam; 2 are located in Dodoma and 2 in Bagamoyo, Pwani. The detailed list is tabulated under Table 8 below:
Table 8: List of MDAs under GovNet
S/No Site name Region l President's Office, State House Dar es Salaam 2 Vice President's Office Dar es Salaam 3 Prime Minister' s Office Dar es Salaam 4 Prime Minister' s Office, TAMISEMI Dodoma 5 Ministry of Labour and Employment Dar es Salaam 6 Ministry of Industry and Trade Dar es Salaam 7 Ministry of Livestock Fisheries and Development Dar es Salaam 8 Ministry of Water Dar es Salaam 9 Ministry of Defense and National Service Dar es Salaam 10 Ministry of Lands, Housing and Human Settlements Dar es Salaam 11 Ministry of Community Development, Gender and Children Dar es Salaam 12 Ministry of Agriculture, Food Security and Co-operatives Dar es Salaam 13 Ministry of Education and Vocational Training Dar es Salaam 14 Ministry of Communication, Science and Technology Dar es Salaam 15 Ministry of Works Dar es Salaam 16 Ministry of Justice and Constitutional Affairs Dar es Salaam 17 Ministry of bast African Co-operation Dar es Salaam 18 Ministry of Natural Resources and Tourism Dar es Salaam 19 Ministry of Home Affairs Dar es Salaam 20 Ministry of Energy and Minerals Dar es Salaam 21 Ministry of Information, Culture and Sports Dar es Salaam 22 Ministry of Transport Dar es Salaam 23 President' s Office, Public Service Management Dar es Salaam 24 Ministry of Health and Social Welfare Dar es Salaam 25 Ministry of Finance Dar es Salaam 26 Ministry of Foreign Affairs and International Relations Dar es Salaam 27 Controller and Auditor General, National Audit Office Dar es Salaam 28 Human Rights & Good Governance Commission Dar es Salaam 29 Public Service Commission Dar es Salaam 30 Law Reform Commission Dar es Salaam 31 Judicial Service Commission Dar es Salaam 32 TACAIDS Dar es Salaam 33 PCCB Dar es Salaam 34 National Electro! Commission Dar es Salaam 35 Registrar Court of Appeal Dar es Salaam 36 Drug Control Commission Dar es Salaam 37 President's Office Planning Commission Dar es Salaam 38 Attorney General Dar es Salaam 39 President' s Office, Ethics Secretariat Dar es Salaam 40 Registrar of Political Parties Dar es Salaam
:?.6 THE UN ITED REP BLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
S/No Site name Re2ion 41 National Assembly Office (Dar) Dar es Salaam 42 National Assembly Office (Dodoma) Dodoma 43 National Archive Office (Dar) Dar es Salaam 44 Tanzania Building Agency (TBA) Dar es Salaam 45 Business Registration and Licensing Agency (B RELA) Dar es Salaam 46 Drilling and Dam Construction Agency (DDCA) Dar es Salaam 47 Eastern Africa Statistical Training Centre (EASTC) Dar es Salaam 48 Government Chemist Laboratory Agency (GCLA) Dar es Salaam 49 National Bureau of Statistics (NBS) Dar es Salaam 50 National College of Tourism (NCT) Dar es Salaam 51 Occupational Safety and Healthy Agency (OSHA) Dar es Salaam 52 Tanzania Electrical, Mechanical Electronics Services Agency (TEMESA) Dar es Salaam 53 Registration Insolvency and Trusteeship Agency (RITA) Dar es Salaam 54 Tanzania Airport Ai port (TAA) Dar es Salaam 55 Tanzania Institute of Accountancy (TIA) Oar es Salaam 56 Tanzania Food and Drug Agency (TFDA) Dar es Salaam 57 Tanzania Meteorological Agency (TMA) Oar es Salaam 58 Tanzania National Road Agency (TANROADS) Dar es Salaam 59 Tanzania Public Service College (TPSC) Dar es Salaam 60 Tanzania Government Flight Agency (TGFA) Dar es Salaam 61 Weights and Measures Agency (WMA) Dar es Salaam 62 National Food Reserve Agency (NFRA) Oar es Salaam 63 Tanzania Employment Services (TAESA) Dar es Salaam 64 Government Procurement Services Agency (GPSA) Dar es Salaam 65 Taasisi ya Sanaa na Utamaduni Bagamoyo (TaSuba) Pwani 66 Dar es Salaam Rapid Trans (DART) Dar es Salaam 67 Water Development and Management Institute Dar es Salaam 68 Agency for Education Management (ADEM) Pwani 69 National Housing and Building Research Agency (NHBRA) Dar es Salaam 70 Electronic Government Agency (EGA) Dar es Salaam 71 National ID Authority Dar es Salaam 72 National Archive Dodoma Dodoma
(ii) Installation of LAN, IP PBX and supply of computer hardware to 72 MD As.
Phase II aims to improve the structured LAN of 19 Ministries, IP PBX with IP Phones for 72 MDAs, procurement of 55 servers and 500 computers to be used to enhance government efficiency through improved infrastructure. Seven contracts worth USO 5 million were signed on 1 16 h Januarys 2015 to implement this phase with the firms indicated in Table 9 below:
'27 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Table 9 GOVNET Phase II Contracts and Progress SIN Assortment Description Contract Status
l. Assortment l Supply, installation, testing and Contractor: Computer Completed commissioning of 500 desktops, Centre (T) Limited 4 work Contract value: station computers, 3 heavy duty USO 1,700,199.01 printers, 15 medium duty printers, and 55 servers to MDAs and LGAs
2. Assortment Supply, Installation and Contractor: Techno Image Completed II Commissioning of Local Area Network Structured Cabling for Contract value: 5 Ministries (MSCT, MJCA, USO 555,3 78.80 and TZS MOHA, MODANS and PMO) 198,619,004
3. Assortment Supply, Installation and Contractor: Computech Completed III Commissioning of Local Area ICS (T) Limited Network Structured Cabling for 4 Ministries (MIST, MEAC, Contract value: MID and PMO - RALG) USD361,260.61
4. Assortment Supply, Installation and Contractor: Techno Image Completed IV Commissioning of Local Area Limited Network Structured Cabling for 5 Ministries (MNRT, MAFSC, Contract value: MLEYD, MLDF and MoHSW) USO 569,361.80 and TZS 144,601,330
5. Assortment Supply, Installation and Contractor: Computech Completed V Commissioning of Local Area ICS (T) Limited Network Structured Cabling for 5 Ministries (MEM, MICS, Contract value: MLHHS, POPSM and Mo VET) USO 499,642.26
6. Assortment Supply, Installation and Contractor: Inventions Completed VI Commissioning of IP PBX and Technologies Limited IP Phones for 72 MDAs in Dar Es Salaam, Dodoma and Pwani Contract value: Regions US O 964,272.40
7. Assortment Supply, Installation and Contractor: Techno Image Completed VII Commissioning of CCTV, Limited Video Conferencing and Access Control Systems for e- Contract value: Government Agency and USO 216,102.88 and TZS POPSM 39,176,000
28 THE UN ITED REPUBLIC OF TANZAN IA MINISTRY OF WORKS, TRAN PORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued) iii) LGAs Connectivity.
GOVNET Phase Ill implementation involves the extension of Gov Net to additional 77 LGA sites as well as connecting the current LGA/PMO-RALG network to GovNet. GovNet phase fII was initiated as a result of savings from Gov et I and II. It was decided that funds be directed towards connecting number of institutions coll ectively termed as LG As to Gov Net. Three contracts indicated in Table I 0 were signed:
T a bl e 10 : GOVNET Ph ase III C ontracts an dP rogress SIN Assortment Description Contract Status I. Assortment Supply, installation of last Contractor: Kotes Completed. Final I mile connectivity (Optic (T) Ltd Acceptance Test Fibre Cables, Contract Value: (FAT) is due by Accessories and related civil USD 1,668,127.70 December 2017 works) for 77 LGAs. 2. Assortment Supply, Installation and Contractor: Delivery and II Commissioning of COMPUTECH JCS installation of Structured LAN and IP (T) LTD, equipment to 77 is PBX with Accessories for Contract Value: complete. 77 LGAs as grouped below: USO 6,124,189.30 Provisional Acceptance Test (PAT) is due by October 20 17 ,., Assortment Supply, Installation and Contractor: SCI Completed. Final .) . III Commissioning of Power Tanzania Ltd Acceptance Test Backup, Air conditioning, (FAT) is due by CCTV, Access Control and Contract Value: December 2017 Fire Detection systems for USO 700,695.49. LGAs Computer Appli cations Systems Center at Utumishi Building, Dar es Salaam.
The connected regions and associated beneficiaries are as indicated below:
SN Region NICTBB LGAs TOTAL Points LGAs 1 Dodoma Dodoma Dodoma RS, Dodoma MC, Dodoma 4 DC, Regional Hospital 2 Arusha Arusha Arusha Rs, Arusha CC, Arusha DC, 4 Regional hospital 3 Kil im anjaro Moshi Ki limanj aro RS, Moshi MC, Moshi 4 DC, Mawenzi Hospital 4 Tanga Tanga Tanga Rs, Tanga CC, Tanga DC, 4 Bomba Hospital 5 Morogoro Morogoro Morogoro RS, Morogoro MC, 4 Morogoro DC, Morogoro Regional Hospital
29 THE UN ITED REPUB LIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUN ICATION RCIP PROJECT FINANCIAL STATEMENTS
SN Region NICTBB LGAs TOTAL Points LGAs 6 Pwani DSM Dar es Salaam RS 1 7 Lindi Lindi Lindi Rs, Lindi MC, Lindi DC, 4 Sokoine Hospital
8 Mtwara Mtwara- Mtwara Rs, Mtwara MC, Mtwara DC, 4 Mikandani Ligula Hospital 9 Ruvuma Songea Songea Rs, Songea MC, Songea DC, 4 Tunduru DC, Ruvuma Regiona l Hospital
10 Iringa lringa lringa RS, lringa MC, Iringa DC, 4 Iringa Regional Hospital 11 Mbeya Mbeya Mbeya RS, Mbeya CC, Mbeya DC, 4 Mbeya Regional Hospital 12 Singida Singida Singida Rs, Singida MC, Singida DC, 4 Singida Regional Hospital
13 Tabora Tabora Tabora RS, Tabora MC, Tabora DC, 4 Kitete Regiona l Hospital
14 Rukwa Sumbawanga Rukwa RS, Sumbawanga MC, 4 Sumbawanga DC, Rukwa Regional Hospital 15 Kigoma Kigoma-Ujiji Kigoma Rs, Kigoma MC, Kigoma DC, 4 Maweni Regional Hospital
16 Shinyanga Shinyanga Shinyanga RS, Shinyanga MC, 4 Shinyanga DC, Shinyanga Regional Hospita l 17 Kagera Bukoba Kagera RS, Bukoba MC, Bukoba DC, 4 Biharamulo , Kagera Regional Hospital 18 Mwanza Mwanza Mwanza Rs, Mwanza CC, Ilemela MC, 4 Sekoutoure Regional Hospital
19 Mara Musoma Mara RS, Musoma MC, Musoma DC, 4 Mara Regional Hospital 20 Manyara Babati Manyara RS , Babati TC, Babati DC, 4 Manyara Regional Hospital Total 77
Execution of phase Ill at a total cost of USO 8.5 million will started in December 2015. It is expected that implementation of the Gov et project fo.r all three phases wi ll be completed in December 2017.
30 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
4.2.3 Extension of Coverage and Access to ICT Services in Rural Areas
Under this sub-component, a total of US$ 30 million was allocated for the extension of coverage and access to JCT services in rural areas using Public-Private Partnership (PPP) arrangements. USO 27,711 ,447. The objective is to enable achi vement~ of univcr3al access targets by providing incentives to the private sector to invest in rural areas through provision of subsidies.
In its efforts to extend communication services to rural and urban underserved areas, the Government of United Republic of Tanzania, through the Universal Communications Services Access Fund floated and signed contracts with four major licensed telecommunications operators. This project is being implemented in collaboration with telecommunications operators; namely Tanzania Telecommunications Company Lim ited, Airtel Tanzania Limited, Vodacom Tanzania Limited and MIC Tanzania Limited that upon its implementation, 347 wards will gain communication services as analyzed under Table 11 below:
No Service Wards Wards on Subsidy USO Disbursed Disbursed provider Contracted Air USO O/o 1 Phase " l " 52 52 5,827,978 5,401,838 93% 2 Phase " 1A " 77 77 6,026,464 3,041,238 50% 3 Phase " 2A" 102 99 7,675,479 3,400,532 44% 4 Phase "2B" 116 113 8, 181 ,526 3,272,610 40% Total 347 341 27,711,447 15,116,218 55%
The kasibilily sludy and design of the Rural Telecommunication Access project was performed under the contract worth USO 348,870.30 between the Universal Communications Service Access Fund (UCSAF) and the project consultant, Mr Andrew Dymond. The design resulted into four phases (" 1" , "IA", "2A", "2B" and "3") as follows:
Phase 1
In October 2012, the Fund invited sealed subsidy bid from eli gible and qualified bidders for the provision of basic voice telecommunications services (contract UCSAF- 2012-1) in a set of currently un-served or under-served wards within the United Republic of Tanzania based on the financial feasibility criteria. The project is financed by World Bank through RCIP.
The tender comprised of 152 wards having 869 villages with a total population of 1,617,310 without communication services. The maximum allowable subsidy was set to USO l 0,990,000. After bids evaluation, 4 service providers emerged winner to extend communication service in 52 wards, having a total of316 villages with a population of737,378. The 52 wards were awarded to service providers at a contract subsidy of USO 5,827,978. Table 12 below indicates a number of wards awarded to each operator along with a contract subsidy amount provided.
J I THE UN ITED REPU BLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Table 12: Total Subsidy per each Operator
On Air Subsidy Disbursed Disbursed No. Operator Wards USD USD % 1 Airtel 12 11 2, 192,230 2,192,230 100% 2 MIC (Tigo) 19 19 1,402,150 1,402,150 100% 3 TICL 20 20 2, 130,698 1,704,558 80% 4 Vodacom 1 1 102,900 102,900 100% TOTAL 52 51 5,827,978 5,401,838 93%
Currently, all 52 wards have been connected and gained access to communication services.
Phase lA
After finalizing WB Phase l project bidding process, the Fund continued with preparation of the second bidding document for WB Phase 1A. WB Phase I A bidding document comprised a total of 168 ward s, having 968 villages with an estim ated population of 1,322,753 people having no communication services. The maximum allowable subsidy was set to US O 14,336,000. The tender was floated on 3 1 July, 2013 and according to the bidding document, the deadline to submit bidding document was set on 4th November, 2013.
On 4 November, 201 3, only one service provider, TTCL returned their bid. After bid evaluation, 33 wards were successful awarded to TICL at a contract sum of USO 6,026,464.10. The contract signing ceremony took place on 21 February, 20 14 at UCSAF Boardroom. On 15 November, 2013, the former Minister for Communication, Science and Technology, Hon Makame M. Mbarawa (MP), called for a meeting between Service Providers and the Ministry to discuss a way forward for WB Phase I A since there was a poor response from almost all the service providers with exception of TICL. It was agreed that Service Providers shou ld extend communication services to 44 wards left out from the WB Phase IA bidding document at their own cost, Vodacom henceforth took 36 wards, Airtel took 4 wards and T igo took 4 ward s.
Therefore, a total of 77 wards from WB Phase I A selected sites have received communication service after successful implementation of the respective projects.
Table 13: Total Subsidy per each Operator
On Air Subsidy Disbursed Disbursed No. Operator Wards USD USD % 1 TICL 33 33 6,026,464 3,04 1,238 50% 2 Vodacom 36 36 - - - 3 Airtel 4 4 - - - 4 MIC 4 4 - - - TOTAL 77 77 6,026,464 3,041 ,238 50%
32 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Phase 2A
After successful initial process for the first Phase of rural telecommunication project, the Fund engaged itself with implementation of WB Phase 2, which comprises ofWB Phase 2A and WB Phase 28 project. WB Phase 2A project is a rural telecommunication project to extend communication service to rural and urban underserved wards financed by WB through RCIP project.
The tender for Phase 2A was floated on 28 November, 2014, with a maximum allocated subsidy value of USO 14,213,000. In total, there were 158 wards with a total of 757 villages, with estimated uncovered population of 756,212 people. After bids evaluation, 102 wards were successful allocated to bidders [Operators] at a total contract subsidy value of USO 7,675,479 as indicated in the Table 14 below:
Table 14: Total Subsidy per each Operator for Phase 2A Project
On Air Subsidy Disbursed Disbursed No. Operator Wards USO USO % 1 Airtel 5 5 306,000 208,400 68% 2 MIC (Tigo) 41 40 1,629,278 842,492 52% 3 TTCL 20 18 2,315,60 l 979,800 42% 4 Vodacom 36 36 3,424,600 1,3 69,840 40% TOTAL 102 99 7,675,479 3,400,532 44%
During the year, 99 out of 102 wards from Phase 2A project were connected to communication services. Service providers expect to finalize site construction for the remaining wards before end of December, 2017. Phase 2B
WB Phase 2B project was designed hand in hand with WB Phase 2A. WB Phase 28 document was developed as a specific response to the fact that a large number of villages remain unserved despite mobile service coverage having reached other close-by areas, including in the same ward and, according to coverage maps made available to the Fund, to the same village. The lack of service may be due to terrain or other factors hindering the receipt of useful mobile signals. WB Phase 2B project provided subsidies for the expansion of basic voice services to a subset of those villages.
The tender document comprised a total of 240 villages located in 175 different wards, in 23 regions, treated as 17S. Bidding Lots. The maximum allocated subsidy was USO 11 , 722,705-. Each Lot was for the provision of services in one village or several villages, in one individual ward.
The subsidies were offered at an individually estimated maximum, targeted to increase coverage to all the targeted villages at a specified level of service provision. The subsidies were estimated using cost estimates that assume low-cost, limited signal range base stations using solar power generation focusing only on the main population concentrations, but also assumed very low subscriber Average Revenue per User (ARPU), reflecting latest information received by the Fund from the operators. The villages selected for this competition were primarily those within the li st of unserved villages which have total populations above 1,500.
33 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AN D COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
The Fund received a "No Objection" from World Bank, and the tender was floated on 21st January, 2015 while deadline to submit proposals was set on 23 rd March, 2015. After bids evaluation, 116 wards were awarded to service providers as indicated in the table 15 below at a total contract subsidy value of USD 8,181 ,526. Currently, 113 out of I 16 wards are connected with communication services under Phase 2A.
Table 15: Total Subsidy per each Operator for Phase 2B
Subsidy Disbursed Disbursed No. Operator Wards On Air USO USO % 1 MIC (Tigo) 19 19 1,407,9 18 563,167 40% 2 TTCL 41 38 3,365,535 1,346,214 40% 3 Vodacom 56 56 3,408,073 1,363,229 40% TOTAL 116 113 8,181,526 3,272,610 40%
Phase 3
The final phase which comprised of all the wards that were left out in previous four phases was cancelled during the year 2016 in order to cover exchange losses. The maximum available subsidy was approximately USD 2.2 million.
4.3 Component 3 - eGovernment Applications
The project implementation plan of e-Government component was released in May 2013. The project component is mostly constrained by the involvement of many players in the project.
Origin a ll y, the RCIP program w::is pl::inneci to nm for five consecutive years starting from 2010-2015. By the time the implementation plan for thee-Government component was approved, three years had a lready elapsed and onl y two years had remained to end-up the project which resulted into low disbursement rate of 45%. According to eGovernment plan, a ll projects under e-Government application had to be implemented in two consecutive phases, namely: i. Feasibility Study and Design; ii . System Implementation as well as System Testing and Handing-over. eGovernment applications apply the judicious use of JCT to enable governments to improve their intern al systems, deliver services more efficiently and effectively, and make information more accessible to citizens. Thi s component will support selected major government services which would be candidates for transition to eGovernment through the use of technology, business process re engineering to streamline processes, and change management to ensure acceptance of the new methods of working as per Table 16 below:
34 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANS PORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRET ARY (Continued)
Table 16: Expenditure by Components
SIN Project Disbursed Planned Undisbursed O/o Implementing Activity (USD) (USD) (USD) Disbursed Agency l Business 1,178,775 1,913,310 (734,534) 62% MITI Portal 2 Telemedic ine 821 ,954 4,476,063 (3 ,654, 110) 18% MNH 3 National Reg. 3,494,870 5,594, 180 (2,099,3 10) 62% RITA System 4 EALRS 380,422 380,422 - 100% MLHHSD /ILMIS 5 eProcurement 396,712 2,47 1,299 (2,074,587) 16% PPRA
6 eRecords 766,495 1,447,2 19 (680,724) 53% POPSM 7 Designing 60,600 60,600 - 100% POPSM Server cluster 8 eMobil e 47,510 838,838 (791 ,328) 6% POPSM applications 9 eGovernment 355,735 447,017 (9 1,282) 80% POPSM Policies 10 Publicity and 248,956 335, 190 (86,234) 74% POPSM awareness 11 Training 2,057, 150 2,543, 135 (485,985) 81% POPSM POPSM/ eGA Sub Total 9,809,179 20,507,272 (10,698,093) 48% POPSM 12 Unallocated - 1,492,728 (1 ,492,728) - funds Total 9,809,179 22,000,000 (12 ,190,821) 45% POPSM Expenditure
4.3.1 National Business Portal
The National Business Portal (NBP) will build bridges between the Government and businesses by offering integrated access to information that will increase efficiency in business sector as well as improved coverage of public service delivery.
The project is expected to support government efforts to faci litate strategic marketing of products while ensuring fair returns to all stakeholders based on a competitive, efficient and an equitable marketing system. It will also provide all business information needed by the public and business entities as well as downloadable registration and li censing application forms and eventually allow for the provision of on line registration and licensing services. The beneficiary of the project is the Ministry of Industry and Trade (MIT) and as of I 51 Ju ly 2017 the management of the project will be shifted to Business Registration and Licensing Agency (BRELA) whereby the implementation is staged in two phases namely; feasibility study & system design stage and Implementation stage. Phase I has been completed whereas Phase II is in progress of implementati on.
35 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Phase I: Feasibility Study and System Design The contract to perform the first phase was signed on 18th February 20 13 for the total cost of US O 55,490.59 and final report submitted on 30 December, 20 13. The fo ll owing were the key deliverables attained during execution of phase I: a) Inception report; b} Feasibility study. report that include portal architecture. Implementation plan and bidding documents; c) Final report
Phase II: Implementation
Based on bid document developed In Phase I, the contract for the system design, development, configuration, supply, installation, and commissioning of system and hardware for the NBP was signed on l September, 2015 for the total cost of USO 1,643,800. Implementation of Phase II started in October 2015 by which 65% of contractual amount will be disbursed as of 30th September 20 17. In this phase, the supplier has delivered the Implementation plan, Functional requirement document and the Use Case document. In addition, the installation of hardware have been finalized and tested. End user training started from 5th December 2016 to 30th December 2016. The system has been migrated from test to live Environment and know accessible at http:/www.business.go.tz. Preparations are underway to launch the system. The system will be launched after completion of the following remaining activities and as indicated in Table 17:-
(i) Integration with BRELA System (ii) Integration with Government payment gateway (ii i) Additional content uploading and launching the system:
Table 17: Business Portal implementation plan
SIN Deliverables Status Completion date
1. Advance Payment Completed June 2016 2. Project implementation Plan Completed July 2016 3. Detailed System Architecture and Completed November 20 16 System Prototype 4. Supply and installation of Completed April 201 7 Hardware Equipment 5. Provisional Acceptabl e Portal Completed June 2017 System Implementation Report. 6. Execution of Training program Completed January 2017 7. Complete System Integration In Progress November 2017 (Discussions are underway to increase scope by integrating with Government Payment gateway) 8. PGP and system commissioning In progress December 201 7
36 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRET ARY (Continued)
The main challenge is integration with Government Payment gateway which is an added scope of work. Discussions are underway to ensure the scope of work is agreed and necessary changes are done for the work to be completed by November 20 L7. In addition, contract worth USD 87, IO L for providing advisory services during implementation of the project was signed in June 2015. It is envisaged that the supply, delivery, installation, nelwork.i11g, ln1i11i11g a11J commissioning of the NDP will be completed in December 20 17.
4.3.2 Telemedicine System
The Telemedicine Project aims to improve health care and health services by using Information and Communication Technologies (! CT). The project will be implemented at Muhimbili National Hospital-MNH (a referral hospital) and linked to three regional hospitals with concentration on e referral, e-radiology and e-consultation.
The scope of the project covers stages starting from the feasibility study, acquisitions oftelemedicine system and equipment, improving necessary ICT infrastructure for the system to operate, capacity building and review of busi ness operations. The beneficiary of the project is the Ministry of Health and Social welfare (MOHSW) as well as Muhimbili National Hospital (MNH) whereby the implementation is staged in two phases namely; feasibility study & system design stage (Phase I) and Implementation stage (Phase II).
Phase I: Feasibility Study & System Design The contract to perform the first phase was signed on 16th July 2013 with Swiss Tropical and Public Health Institute (Switzerland) for the total cost of CHF 692,705.88 and TZS 128,473,042.40. Sixty Per cent (60%) payment was made fo r all de liverables indicated in Table 18. The remaining 40% was undisbursed as the consultancy was not extended to perform supervisory services in Phase IL
Table 18: key deliverables of Telemedicine project under Phase I:
SIN Deliverable Status Remarks Payment a The inception report performing Report Completed 10% paid feasi bility study and design the system submitted b National Telemedicine Framework and Document Completed 15% Paid Master Plan submitted C Report on Feasibility Study and System Document Completed 15% Paid design Subm itted d Report on Implementation Plan for the Document Completed 10% Paid Pilot Project Submitted e Bidding documents for all procurements Document Completed 10% Paid identified in the Procurement Plan Submitted
Phase II: Implementation
Phase lI started in June 2016, immediately after signing the implementation contract with Samsung C&T Corporation Limited worth US$ 3,798,707.00. The implementation Phase involves eight sites (Indicated in Table 19) whereby several activities that include detailed system design, system development and customization, system in stall ation and testing, hardware procurement and installation, and trainings have been completed.
37 THE UNITED REPUBLIC OF TANZAN IA MINISTRY OF WORKS, TRANSPORT AND COMMUN ICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Table 19: Telemedicine sites
SNO Hospital District Region
1 Nyangao Di strict Hospital Nyangao Lindi
2 Nachingwea District Hospital Nachingwea Lindi
3 Kilosa District Hospital Kilosa Morogoro
4 Turiani District Hospital Mvomero Morogoro
5 Mafia District Hospital Mafia Pwani
6 Morogoro Regional Hospital Morogoro Morogoro
7 Lindi Regional Hospital Lindi Lindi
8 Muhimbili National Hospital Ilala Dar Es Salaam
On the other hand, several activities have been completed that includes: (a) Constructi on of Local Area Network (LAN) and Wide Area Network (WAN) to all eight project sites. (b) Installation of hardware and software. (c) End User trainings (d) User Acceptance Test (UAT), the system is operational and being used in pifot basis
The completion status of project deliverables is as indicated in the Table 20 below:
Table 20: Telemedicine implementation plan
SIN Deliverables Status Completion date
1. Advance Payment: Completed August 2016
2. Acceptance of delivered materials: Completed December 2016
3. Provisional Acceptance Testing, PAT In progress September 2017
4. Execution of Training program Completed May 2017
5. Snags Clearance (PAT outstanding items): In progress November 2017
6. Final Acceptance Testing In progress December 2017
38 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
The contractor is rectifying the snags observed during User Acceptance Test (UA T) whereby it is expected that by 15th November 2017 all snags will be cleared. The telemedicine system is operational and being used in pilot basis. Processes are underway to train more doctors. The challenges for omission of recurrent costs to this contract due to the guidance received during the WB Mission.
4.3.3 Birth and Death Registration System (BRS)
The overall objective of BRS system is to enhance birth and death registration through improved systems and business processes. The beneficiary of the project is The Registration, Insolvency and Trusteeship Agency (RITA) where the implementation is staged in two phases namely feasibility study & system design stage (Phase I) and Implementation stage (Phase II).
Phase I: Feasibility Study & System Design
The contract to perform the Phase I was signed on 21 st January 2014 with Compliance Alliance Ltd for the total cost of USO 690,873 and TZS. 90,940,000. Hundred Per cent (100%) payment was made fo r all deliverables indicated in Table 21.
Table 21: key project competent deliverables of Phase I
SIN Deliverable Status Remarks Payment a) The Inception report which will include Report submitted Completed 20% paid work plan and methodology be submitted 2 weeks after signing the contract. b) ICT policy paper for RTTA Document Completed 15% paid submitted c) Birth registration automation strategy Document Completed that shall include birth registration Submitted process re-engineering study d) Birth Registration System design and Document Completed 10% paid architecture including technical Submitted specifications and functions e) Registration data collection system Document Completed 15% paid design including technical Submitted specifications f) Detailed implementation and Document Completed 10% paid procurement plan including time Submitted schedules and associated cost estimates g) Bidding documents for all Document Completed 10% paid procurements identified m the Submitted Procurement Plan h) Final report that documents the Document Completed 20% - paid procurement process for selecting the Submitted implementing contractors/vendors and the introduction of vendors to the project
39 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUN ICATION RC IP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Phase II: Implementation
Phase II started in June 2016, immediately after signing the implementation contract with In fotech Private Limited worth US$ 4,753,330.28. The implementation Phase involves 60 sites (Indicated in Table 22) whereby several activities need to be performed that indudes detaited system design, system development and customization, system installation and testing, hardware procurement and in stallation, data migration and skill s transfer.
Table 22: BRS-4G sites N Region District Wards Hospital Health TOTAL 0 s s Centers ------·-- - - - ~ - - - - - 1 Geita 5 2 2 11 20 2 Shinyanga 5 2 2 10 19 3 Dar es Salaam 3 2 16 0 21
TOTAL SITES 13 6 20 21 60
The fo llowing deliverables will be attained by 30th September 2017 • The Inception report submitted. • System Design/System Requirement Document approved • Architecture and system prototype approved, • Documented change management procedures, • approach to legacy digital data migration prepared and approved, • Monitoring and evalu ation guidelines and !EC plans prepared and approved.
In addition, In stallation of hardware and software of the systems have been finalized. End user and Technical Trainings have been conducted whereby the current status is such that Contractor is rectifying snags observed during User Acceptance Test (UAT). The system wil l be launched after completion of Snags clearance processes as indicated in Table 23 .
SIN Deliverables Status Completion date l. Inception Report Completed July2016 2. Acceptabl e Detai led System Completed November 2016 Architecture and system prototype 3. Supply and installati on of hardware Completed April 2017 equipment 4. Provisional Birth and Death Registration In progress November 2017 Systems acceptance 5. Execution of user training program Completed June2017 6. Final acceptance Birth and Death In Progress December 2017 Registration Systems
40 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RC IP PRO.JECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Currently the contractors are clearing snags whose major ones are on replication and inter-site redundancy. It is expected that the system will be operation in November 2017 once the snags are cleared.
In addi tion, another consultant has been engaged to perform support supervi sion services during the implementation phase.
4.3.4 Enhancing Accessibility of Land Records Project (EALR)/ILMIS
The objective of the project is to integrate all land systems and improve the qua li ty of land records and associated cadastral map systems, topographic maps and images and making them accessible to the public through websites. and mobile phone text messages. The proj ect is under implantation by the Ministry of Land, Housing and Human Settlements (MLHHSD).
The contract for designing and implementation of Integrated Land Management Information System (ILMIS) and Enhancing Accessibility of Land Records Project (EALR) between the Ministry of Land, Housing and Human Settlements and COWi (Denmark) & Orgut Consulting (Sweden) was signed in July 201 2. The feasibi lity study, system design and bidding documents were completed during the year by which the bidding docum ents were finalized and approved by the World Bank.
After the system design, the cost to implement the system was approximated at USO 15 million which is far and above the RCIP budget of USO 3 million. Therefore, the Government decided to solicit funds for implementation of the ILMIS project usin g proceeds of "add iti onal financing" under the Private Sector Coi11pelitiveness Project-Additional Finance (PSCP-AF) which is being implemented under the Prime Minister's Office. RCIP Tanzania funding of USO 3 million have been re-allocated to finance other eGovernment applications. On completion of the consultancy services, an amount of USO 323,358 (equivalent to 80% of the contract sum) was disbursed.
4.3.5 Unified National e-Procurement System: Public Procurement Authority(PPRA) The original purpose of the project is to improve the effectiveness of procurement of drugs and medical supplies by acquisitions of e-procurement and online ordering system, improving necessary ICT infrastructure for the system to operate, capacity build ing and review of business operations. Specifically the project aims to provide end -to-end electronic system fo r acqui sition of medical suppl ies from selection and purchase, to delivery at the Medical stores Department (MSD) warehouse (linked to the warehouse system), and ultimate dissemination to the medical facilities. The beneficiary of the project was MSD where the implementation was staged in two phases namely feasibility study & system design stage (hereby referred as Phase I) and Implementation stage (hereby referred as Phase II).
Phase I: Feasibility Study & System Design
The original contract of USD 500,235.30 fo r implementation plan for feasib ility study, implementation plan, and procurement and implementation support consultancy for the unified national e-procurement system in Tanzani a was signed on 21 January 20 14. The addendum to original contract amounting to USO 264,830.45 was signed in March, 2015 after changes in the project scope to incorporate GPSA and PPRA requirements. Thu s the revised contract amount is USO 765,065.75 by which 80% payment has been made. Key project deliverables relating to system design and bidding document generation reports were completed:
4 1 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS~ TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
T a bl e 24 . K ey de r1vera bl es Ph ase I SIN Deliverable Status Remarks Payment a) The inception report performing Report submitted Completed l 0% paid of the feasibility study and design the Original system Contract sum b) Report on Feasibility Study and Docum ent Completed 15% Paid of the System design Submitted Original Contract sum c) Report on Implementation Plan and Document Completed 15% Paid of th e Procurement Plan Submitted Original Contract sum d) Revised feasibility study and Document Completed 20% Paid of design report based on the added Submitted the Remaining scope as per amended TOR Contract sum e) Revised the implementation plan to Document Completed 20% Paid of include activities based on the Submitted the Remaining added scope as per amended TOR Contract sum f) Bidding documents for all Document Completed 20% Paid of procurements identified in the Submitted the Remaining Procuremeii.t Plan Contract sum
Phase II: Implementation
Phase II started in June 2016, immediately after signing the implementation contract with EUROPEAN DYNAMICS S.A worth USO 1,706,232.80. The envisaged Unified National eProcurement system will be accessed via an online portal and will include features such as Registration, tender adverts, e-Purchasin g, e-Auction, e-Tendering, e-Contract, e-Payment, e Disputes, PMIS, security logs and help desk.. In addition, the portal will have linkages with Certification Authority, tenderers, Procuring entities and other stakeholders. Under Phase II , the supplier will perform the following activities. a) Analyse, design, develop, customi ze, supply and in stall a Unified National e-procurement system to be used GPSA, MSD and PPRA as well as l 00 Procuring entities (PEs) for CUIS in Phase l . The Implementation will depend on implementation modalities as to be proposed by bidder and agreed upon by the client. b) Prepare standard operating procedures fo r Unified National e-Procurement system. c) Develop and implement capacity building plan and associated manuals including trainings and knowledge transfer d) Establish coding system for goods and services fo r procuring entities which are in line with United Nations Standard Products and Services code (UNSPSC) e) Develop system monitoring and evalu ati on plan. f) Integrate existing systems namely ERP at MSD and PMIS at PPRA.
Implementation of the project is expected to be commissioned before December 201 7 where as the key targets are as indicated in Table 26.
-1 2 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
SIN Deliverables Status Completion date 1. Report detailing eProcurement business Completed July 2016 process operating procedures 2. Detailed System Architecture and Completed August 20 16 System Prototype 3. Supply and installation of Hardware Completed April 20 17 Equipment 4. Provisional Acceptable report for In Progress November 20 17 Unified National eProcurement System Implementation 5. Execution of Training program NIA December 20 17 6. System Commissioning NIA December 20 17
The challenge remains on integration with other systems such as IFMS due to dependency with the external systems on availability of APis. Discussions are underway between PPRA and the contractor to examine what can be done to address the challenge.
4.3.6 eRecords
The purpose of this project is to build and reinforce Records and Archive Management (RAM's) ability to ensure the management and preservation of digital records for government needs and bu siness, and citizen access. The project will create a digital repository based on the available information capable of ensuring on-going access to di gital records and enabling online access to non sensitive government information contained in the repository. The project is being implemented in two Phases as described underneath.
Phase I: Feasibility Study & System Design The consultancy contract fo r Phase I was signed on 8 June 2015 at a cost of GBP 67,71 2. The consultancy activities were finalized by which l 00% payment was made as indicated in Table 27.
Table 27: Key deliverables Phase I
SIN Deliverable Status Remarks Payment a) Inception report. Report submitted Completed 10% payment made b) System design and requirements for Document Completed 15% payment establishing Trusted Digital Submitted made Repository c) Re-engin eered processes fo r Document Completed 15% payment archives management and Submitted made preservation of di gital record s Report as well as Record s Management Framework on existing records keeping practices. d) Capacity Building requirements for Document Completed 15% payment di gital record s management and Submitted made preservation, Detailed Procurement and implementation plan.
43 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
SIN Deliverable Status Remarks Payment e) Stakeholders' engagement and Document Completed 15 % payment Final report. Submitted made t) TORs, functional requirements and Document Completed 15 % payment technical specifications Submitted made g) Bid Document Document Completed 15% payment Submitted made
Phase II: Implementation
Phase II started in September 20 16, immediately after signing the implementation contract with MF[ Document Limited worth USO 1,352,280. The contractor has already submitted the inception report, Project Implementation plan as well as detailed System Architecture and System Prototype as indicated below.
Table 28: eRecords project implementation
SIN Deliverables Status Completion date I. Project Implementation Plan Completed October 2016 2. Detailed System Architecture and Completed December 20 16 System Prototype ,., .) . Supply and installation of Hardware Completed July 2017 Equipment 4. Provisional acceptable eRecords System In progress September 2017 5. Execution of Training program In progress Septem her 2017 6. System Integration In progress November 2017 7. PGP and system commissioning NIA December 20 17
The system will be launched once scanning and ingestion of I 00,000 records will be completed. The task is expected to be finalized by 30th November 2017.
4.3.7 eOffice System enhancement
The e-Office sys.te rn is geared at automating Government daily routine business operations. The use of the system will improve efficiency, consistency and effectiveness of government responses; reduce turnaround time to meet the demands of their client service charters. In addition, the system wi ll provide for effective resource management to improve the quality of ad ministration as well as establish transparency and accountability.
The initial Focus for e-Office Development was to acquire the software from National Informatics Centre (NIC) of Department of Electronics & In formation Technology - Government of India whereby a budget set forth for this is USO 300,000 for capacity building. Software Demonstrations were done and it was observed that the system required minimal effort to customize as it met over 80% of GoT requirements. Several discussions were made with NIC on modalities to acquire the software. NIC were not ready to release the source code which was the the Major requirement of GoT to avoid dependency. In view of the above, a decision was made to develop the system internally. THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COM M UN ICATION RCIP PROJECT FINANCIAL STATEMENT S
STATEMENT BY THE PERMANENT SECRETARY (Continued)
The first module of the system that manages electroni c file transfers have been developed and deployed by which 18 Public In stitutions are using the system. Currently, the No Objection have been granted to improve the system by adding other functionality such as Claims and applications management; Personnel information management; Collaboration and messaging (communication); Training Management as well as integration with ERP system. These enhancement activities are in progress and to be completed December 2017 Furthermore, it has been observed that more storage devices are required hence the same was approved and included in the Tender o No.: ME/OOS/RCIP/2016/2017/G/22 (Procurement of Storage and server for Mobile Payment Gateway, USSD and SMS Gateway) whose contract was signed in May 2017. It is expected that by November 2017 all the hardware will be delivered to enhance storage and computing of the Infrastructure to enable more Institutions to sue the system.
4.3.8 Designing Server Clusters
Thee-Government Agency (eGA) has started its operations and has now embarked on establishm ent of the necessary infrastructures as one of the important requirements to enable the Agency to carry out its operations. It is expected that the server clusters will solve existing ICT Infrastructure problems pertaining to: a) The Government e-resources and infrastructure are highly unconso~idated and fragmented across various MDAs/LGAs; b) Unreliable e-Government services; c) Unsecure e-Government services; d) Unshared Government Data; e) Unenforceable standards wi thin the Government.
In the current situation it is difficult to enforce or control various standards which e-government ICT platforms and services have to meet. Thi s includes security standard s, accessibility standards, platform standards, and other technology-based standard s. In this regards, the consultant was engaged to analyze, design, and determine the actual requirements and costs. necessary to establish three server clusters to support subsequent management decision.
The assignment was performed at a total cost of USO 60,600 covering the period of six months from November 201 2 to April 2013 and completed successfully. The following were the key deliverable for the assignment. a) Feasibility study report determining the actual requirements; b) Server cluster design report System proposing fully redundant cluster configuration model, architecture and modes of deploying to suit the eGA requirements with possible scalability in future; c) Draft Service Level Agreement (SLA) with the service provider to host the server clusters based on the final design to be determined by the Consultant; d) A matrix of all costs and other requirements that are needed to implement three server clusters at different locations in Tanzania in the fo ll owing manner: • High-end solution: USO 25, 172,850 • Medium solution: USO 13,600,850 • Low-end solution: USO 8,795-,900
-15 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUN ICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Based on this report, eGA solicited other sources of funds to implement the clu sters. During the year, implementation of this project was completed.
4.3.9 Government Mobile e-Services
The overall objectives of this project are to improve livelihood of Tanzani ans through delivery of quality public services through application of mobile solutions; and to improve efficiency and effectiveness of Government operations. The specific and immediate objecti-ves include the fo llowing: (a} To facilitate public institutions and private sector firms to leverage and exploit mobile technology and associated opportunities for providing quality, efficient, effective and timely services to citizens as well as improving interaction between the government and citizens.
(b) To improve accessibility of public services to the general public in terms of number of services~ delivery channels and reach, through improving mobile platform for the purpose of accommodating more services offered through mobile channel.
(c) To assess services offered via mobile channels and develop more effecti-ve integrated service ddivery through mobile solutions with greater transparency and Government's visibility.
The beneficiary of the project is eGovememnt Agency (eGA) where the implementation is. staged in two phases namely feasibility study & system design stage (hereby referred as Phase I} and System Enhancement stage (hereby referred as Phase II).
Phase I: Feasibility Study & System Design
In September, 201 3 the e-Government Agency engaged an individual consultant to identify and prioritize Government Services which can be delivered through mobile channels especially using mobile phones. The objectives of this consultancy was to prioritize at least 20 government services that can be delivered as e-service, including identification of a minimum of 5 quick wi ns that can be developed by leveraging mobile technologies within a timeframe of 12 months. The consultancy assignment was completed successfully whereby five priority mobil e services were identified. In addition, based on the output of this consultancy assignment the eGovernment Agency (eGA) has initiated efforts fo r ensuring that more mobile based e-services are deployed to be accessed by more citizens in a coordinated manner and in holistic approach.
Nine mobile based e-Services identified through a government wide pnont1zation exercise were launched in July 2014. The services include mobile based access to school test results and university admission decisions, mobile and Internet based employment/ recruitment application for Government jobs opportunities [The service is running and the number of request made since 2014 is 105,237) , identification of voting stations [The service is running and the Number of unique subscribers during the voting period October 2015 was 1,632,971 J and related information, and a service to deliver timdy and accurate weather information via mobile. Based on these report the Government through eGA have been able to implement mobile platform which support SMS gateway, USSD (menu based service) gateway and IVR payment gateway and have secured short code for Government services (i.e.* 152*00#). THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
Phase II: System Enhancement The Phase II of the Project has three major components: Mobile Infrastructure, Capacity Building, and Mobile Application Development. The details of the components and their associated status are as follows:
(a} Component 1 - Government Mobile Infrastructure. This component will provide equipment for improvement of the current Government Mobile Infrastructure. Specifically, in this component the following activities will be supported: (i) Procurement of Servers for Payment Gateway; (ii) Procurement of Servers for USSD and SMS Gateway; (iii) Procurement of Storage facility. The contract was signed in March 2017 and it is expected that by July 2017 the mobile Platform hardware infrastructure will be improved.
(b) Component 2 - Capacity Building. This component will provide support for training, knowledge and experience sharing between staff from Indian Government's eGA equivalent, DeitY and eGA staff for the purpose of making the mobile solutions locally developed and maintained by local experts to ensure sustainability of the mobile solution services. eGA intends to invite two mobile solution experts from DeitY to come to Tanzania and work with eGA's technical experts. DietY is chosen by eGA for two main reasons, first, DeitY manages India Government's mobile platform which has over 1,500 services, therefore it has rich experience in development and management of mobile solutions; and second, eGA and DietY have Memorandum of Understanding (MOU) for cooperation. The first training was conducted for 21 days in October 2016 by GoT Development team was trained by 4 experts from India.
(c) Component 3 - Applications Development. This component supports all activities related to the applications development; this will include engaging Government employees from various institutions to work together with eGA staff in developing the applications. The development is mainly in two categories: (i) Development of Payment Gateway application; and (ii} Development of USSD and SMS Gateway Application. This will also include mobilization of Government experts to form development teams. The development started November 2016 whereby Public Institution SMS Portal (http://www.mgov.ega.go.tz) and Citizen Portal (http://mportal.ega.go.tti) was developed. These improvements have given Public Institutions more flexibi lity of deploying more services ..
Notably, the Mobile Platform that enables government mobile based services to be hosted and accessed using short code (i.e. *152*00#) has been developed and operational. This provides one window for all government mobile services whose dashboard is accessible via http://mportal.ega.go.tz/. As a result, a total of 79 Public Institutions are using the platform whereby 1 11.5 million push and pull transactions will be registered by 15 h August, 2017. The leading transactions include 36% water bill notifications (36%), National Health Insurance Card Verification, Card Status Query & Claim Status Query (29%) as well as Pension notifications (20%). THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
4.3.10 eGovernment Legal Framework
During the year, other remaining sub-projects under eGovernment applications were at different stages of implementation as shown below:
a) e-Government Associated Standards and Guidelines
Creation of eGovernment Standards and Guidelines to ensure all eGovernment initiatives are implemented using same guidelines hence enhancing systems interoperability, integration as well as easy data sharing. The Guidelines have been finalized.
b) eGovernment Policies
Development of eGovernment Policy whose objective is to ensure quality and sustainable public service delivery by adopting and using Information and Communication Technologies. The use of this policy will eventually strengthen management and control of e-Government initiatives. The eGovernment Policy is under approval process.
c) ICT Units Management Framework
Review of ICT Governance Framework that would ensure ICT is wdl managed and government within the public service. It covers Development of ICT Units Management Framework to be customized in MDA's/LGA's. The Final report is under management review.
4.3.11 Capacity Building
PO-PSM capacity building plan with estimated cost of USO 2,387, 100 was. developed and approved by the World Bank for implementation with effect from February 2013. Activities earmarked for this plan were awareness creation programs, tailor made training, study visit programs, networking sessions through workshops and conferences, and annual e-Government events.
Implementation of capacity building for eGovernment is overseen by a training committee of ten people selected by PO-PSM from e-Government Agency (three), PO-PSM (three), PCCB (one), TRA (one), TGLA (one) and MLHSD (one). MLHSD is a representative of other beneficiaries implementing e-Government applications. Capacity Building (CB) is a cross cutting activity and will also involve MDAs and LGAs. The committee will ensure the relevance of identified CB activities and enable efficient implementation.
CB activities conducted by PO-PSM up to 30 June 2016 are study visit to Bangladesh on birth registration by 15 people, study visit to Singapore on business portal by 15 people, study visit to Korea one-procurement by 15 people, attendance to a conference one-Government in Uganda by 5 people, conference on e-Government in Korea by 5 people, conference on e-Government in Kenya by 5 people, human resource training to 42 eGA staff, and participation at the 13th European Conference on eGovernment (ECEG 2013) in Italy by 5 staff. Planned conferences to France and Malaysia were not attended due to logistical problems during the period under review.
MWTC and UCSAF training plans were prepared and submitted to World Bank for review and approval in 2013. The World Bank recommended that instead of approving the plans, tailored capacity building activities which are viable and eligible under RCIP project financing can be
48 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS requested through the ICT Directorate under MWTC for consideration and requesting no-objection from World Bank. Several capacity building programmes have been conducted in form of normal trainings, seminars, conferences, study vi sits, short trainings etc. The objectives of capacity building are:-
a) Build necessary technical capacity to ICT staff within MDAs/LGAs for proper management of existing ICT systems and any other that may arise due to the impact of RCIP on procurement of bandwidth and Connecting MD As/LG As.
b) Enhance the capacity of MD As and LGAs to implement e-Government policies, strategies and other eGovernment initiatives.
c) Develop the high-level awareness and commitment that will carry forward e-governance for socio-economic development.
d) Sharing experiences and provide linkages with several national and international e eGovernment players.
e) Enhance capacity to eGA staff from effective central coordination, control and management of eGovernment initiatives.
Total number of 2,232 Government employees benefits and attended various trainings and awareness programmes.as indicated in the Table 29.
Table 29: Trainings and awareness conducted
SIN Category Number of Staff a) ICT Policies, Laws and regulation related trainings 49
b) Infrastructure and Connectivity Trainings 259
c) Applications related trainings 266
d) Awareness and sensitization programmes 610
e) I st Annual eGovernment Component 770
f) Project and Financial Management 26
g) Leadership and Managerial skill s 16
h) ICT Management Trainings 150
i) Technical hard-core Trainings 12
j) Regional and International Meetings and Conference 74
Total 2,232 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJ ECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
4.3.12 Publicity -eGovernment Component
Through the programme a five year communication action plan for effective and efficient eGA communications was developed with a view to fac ilitate and foster the delivery of its mandate of tac1l1tatmg d1scuss1ons, resource mobilization, policy advice, and accessing global knowledge. tlased on the plan, several programmes have been initiated that include Production and airing e-government contents through TV. The Contract fo r production and airing 52 TV programmes was signed in September 20 16. The Scripts have been produced and production of TV programmes has been finalized. Airing of produced programmes have started in National TV every Tuesday from 6pm - 7pm since ih March 2017 whereby 28 TV programmes will be ai red in September 2017. ln addition, the Creation of documentary to ascertain RCIP achievements attained so far is in progress.
4.4 Component 4 - Project Management Support
Project management rel ated issues such Project Co-ordination; Procurement of project support activities; Finance Management; Monitoring and Evaluation; Communication and Environment; Social Safeguards; Support fo r office equipment; incremental operating costs and audits have achi eved 91 % of the component funds as per Table 30:
Table 30: Project Management Support
SIN Project Disbursed Planned Undisbursed % Implementing Activity (USD} (CJSD) (USD) Disbursed Agency
I Project 1,450,325 1,71 1,775 (26 1,450) 85% MWTCand consultants POPSM 2 Motor 148,85 l 148,851 - 100% MWTC and Vehi cle POPSM 3 ICT and other 375,505 463,505 (88,000) 8 1% MWTCand assets POPSM 4 Coding of - 37,000 (37,000) - MWTCand RCIP asset POPSM 5 Opex MWTC 862,474 1, 103,378 (240,905) 78% MWTC 6 Opex PO- 809,655 959,602 (149,947) 84% POPSM PSM Sub- 3,646,809 4,424,111 (777,302) 82% Expenditure Saving from - (424,111) 424,111 - Component I Total 3,646,809 4,000,000 (353,191) 91% Expenditure
50 THE UN ITED REPUB LIC OF TANZAN IA MINI T RY OF WORKS, TRANSPORT AN O COMMUNICATION RC IP PROJECT FINANCIAL STATEMENTS
STATEMENT BY THE PERMANENT SECRETARY (Continued)
4.4.1 Project Consultants coordination
The Procurement Speciali st and Financial Management Speciali st were engaged with effect from 14 November 20 11 . The eGovernment Coordinator responsible for coordination of the eGovernment component was engaged on 25 October 2011. Likewise, the Project Advisor who was engaged effective from 1 July 20 12 resigned in February 2014. Recruitment process to hire another Project Advisor was terminated during the year. The Monitoring and Evalu ation Specialist was recruited in April 2013.
Appointments of project consultants are on contract terms of one year, renewable subj ect to satisfactory perfo rmance. The main obj ective of the assignment is to ensure effective and flexible planning, coordination, successful implementation, monitoring and evaluation of the RCIP Tanzania project.
4.4.2 Project Support Activities
Programme support activities consist of costs for management and coordination of the project activities including procurement of ICT equipment, motor vehi cles as well as operational and maintenance costs to faci litate implementation of core activities of the project components.
Mrs. Maria Sasabo (PhD) The Permanent Secretary (Communication) & Accounting Officer Ministry of Works, Transport and Communication 30 June, 2017
5 1 THE NITED REPUBLIC OF TANZAN IA M INISTRY OF WORKS, TRANSPORT AND COMMUN ICATION RC IP PROJ ECT FINANCIAL STATEMENTS
5. COMMENTARY ON THE FINANCIAL STATEMENTS
5.1 Loan Disbursement Status
Cumulative di sbursements for the period ended "O June 2017 amounted to USD 64 mil lion, which is approximately 64% of the project funds (Plan 93%). Disbursements comprise of cumulative project expenditures of USD 6 1.8 million and di sbursed project funds held in the Designated Account of USD 2.2 mi llion. Simil arly, the undisbursed loan balance for the same period stood at USD 36 mitlion.
Low disbursements of funds was mainly caused by ddays in the public procurement process as we ll as lengthy approval of procurement project activities between the implementing agencies, beneficiaries and the World Bank. Table 31 below provides a breakdown of sources and uses of funds on a cumulative basis to 30 June 2017.
Table 31: Summary of movements in source and use of funds.
Cumulative to date 30 June 2017 Particulars Actual Planned Variance Analysis USD USD USD O/o Loan Facility (SDR 67 mill ion) 100,000,000 l 00,000,000 - - Withdrawals to date Project expenditures 6 1,794,640 93 ,2 11 ,566 (31 ,416,926) 66% De£ignated Account balance 2,2 19,684 - (2,293, 110) - Total disbursements 64,014,324 93,211,566 (29,353,726} 69% Undisbursed loan balance (35,985,676) (6,63 1,950) (29,353,726} % of disbursements 36.0% 6.6 % -
5.2 Project Expenditures by Components
The total expenditure for the year amounted to USD 17 million against the plann ed budget of USD 32.8 million, leading to a negative variance of 48%. Notabl e delays, extended procurement and approval processes attributed to the unfavourable performance during the year. The fo llowing activities were executed subsequent to the year end :
(i) Provisional Acceptable of the National Business Portal, eProcurement system, Birth and Death Registration System, Telemedicine system, and eRecords. (ii) Provisional Acceptance Testing (PAT) of LG As connectivity in 77 sites (iii) Commiss ioning and technical audit of Ru ral Telecommunicati ons Access project
Table 32 presents a breakdown of annual and cumulative expenditures by project components comparing total expenditure and planned budget as at 30 June 2017.
52 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RC IP PROJECT FINANCIAL STATEMENTS
Table 32: Expenditure by Components
Expenditure Year to Date June 2017 Cumulative to Date June 2017 by Actual Planned Variance Actual Planned Variance Components USO 000 USO 000 USO 000 O/o USO 000 USO 000 USO 000 O/o 1- Enabling 1,314.7 2,044.9 (730.2) (40) 4,873.7 6,824.1 (1 ,95 0.4) (49) Environment 2- Connectivity 9,502.9 22,054.9 (12,552) (47) 43,465 61 ,4561.t (17,99 1.6) (45) 3 -e 5,833.1 8,23 7.3 (2,404.2) (65) 9,809.1 20,507.2 (10,698. 1) (81) Government Applications 4- Project 442 546.5 (103 .5) (14) 3,646.8 4,424.1 (777.3) (22) Management Total 17,093.7 32,883.7 (15,790) (48) 61,794,6 93,211.6 (31,416.9) (52) Expenditure
5.3 Analysis of funds as per stages of implementation
During the peri od under review, projects under implementation and close-out phases focusing on project delivery stood at 50% and 41 % respectively. Similarly, total projected expenditures at the procurement phase amounted to USO 2.4 million equivalent to 2% of the project funds. The project implementation team is in the process of identifying and engaging suppliers who will provide the best value for money. Similarly, USO 7.1 million equivalent to 7% of the loan amount constitutes unallocated funds. These activities will be reallocated to cover exchange loss between USO and SOR currencies. None the less, it is notable that only USO 93 million of the total project funds will be utilised.
Chart I and Table 33 provides analysis of funds utilisation as per the project cycle in terms of completion, execution, procurement and reallocation as at 30 June 2017.
Chartl: Analysis of funds per the project implementation cycle:
Project funds USD • Exch ange Lo ss Closed % • anal sis '000 Under 5% Contracts / 41% Closed 41,057 41 Contracts
0 en Contracts 50,848 51 • Closed Contracts Procurement 3,288 3 • Open Contracts stage Under Procurement Exchange Loss 4,807 5 Total Funds 100,000 100 • Excha nge Lo ss
53 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT ANO COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
Table 33: Analysis of funds per the project implementation cycle
i) Closed Contracts
Activity Entity USD Feasibility study, design and implementation of the Rural UCSAF 4,090,676 Telecommunication Access Proiect Design and implementation of the Government Communications PO-PSM 13,076,003 Network Government internet bandwidth MWTC 11 ,729,366 Feasibility study and designing of eGovernment applications PO-PSM 1,858,014 eGovernment Standards, Guidelines and Frameworks PO-PSM 531 ,978 Training and Development (ICT) MWTC 1,064,730 eGovernment Training and Development PO-PSM 2,149,494 Project Consultants All 974,075 ICT, motor vehicle and other assets All 470,880 Procurement of Video Conferencing Systems for Zanzibar MWTC Government 199,620 Auditing Environmental Impact Assessment UCSAF 65,000 Publicity and awareness on ICT and eGovernment All 372,106 Key ICT Stakeholders participation in the Lab (STI) MWTC 218,167 Support for implementation of the NICTBB Development Program MWTC 263,917 Cyber security laws: Cybercrimes Act, and £-Transactions Act, 2015 MWTC 611, 160 Purchase of computers and IT devices for 80 schools MWTC 1, 115 ,946 PKI system design and capacity building activities MWTC 178,506 Project Opex MWTC/POPSM All 1,686,379 Development of the National Information and Communications MWTC 92,611 Technology (ICT) Commission Act RCIP Project Monitoring & Evaluation MWTC 308,647 Other project activities All
Total USD 41,057,275
ii) Projects under Implementation Stage
Activity Entity USD Implementation of the Rural Telecommunication Access Project UCSAF 24,055,269 Implementation of the Government Communications Network PO-PSM 9,296,217 eGovernment Standards, Guidelines and Frameworks PO-PSM 68,276 Training and Development All 242,290 Project Consultants All 657,700 National Business Portal PO-PSM 1,857,819 Telemedicine System for MNH PO-PSM 3,932, 169 National Vital Registration System for R[T A PO-PSM 4,848,448 e-Procurement Pilot for PPRA PO-PSM 2,471 ,299
54 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
Activity Entity USD eRecords Management and Preservation project PO-PSM 1,352,280 Mobile Payment Gateway, USSD and SMS Gateway PO-PSM 900,389 Publicity and awareness on ICT and eGovernment All 298,026 Developing e-Legislation and its regulatory framework MWTC 49,025 Purchase of computers and IT devices for 80 schools MWTC 126, 159 PKI system design and capacity building activities MWTC 89,332 Project Opex MWTC/POPSM All 376,601 ICT Commission capacity building activities and support MWTC 47,526 RCIP Project Monitoring & Evalu ation MWTC 159,403 Support for implementation of the NICTBB Development Program All 19,770
Total USD 50,847,998
iii) Projects under Procurement Stage
Activity Entity USD Implementation of the Government Communications Network PO-PSM 561 ,000 Government internet bandwidth MWTC 450,000 Procurement of Equipment (Bridge) and Video Conferencing Systems MWTC 741 ,000 Designing and implementation of eGovernment applications PO-PSM 430,000 Trnining and Developn1t;11l (ICT) All 550,000 Procurement of Baggage/Parcel Scanner MWTC 350,000 Project Consultants All 48,000 ICT, motor vehicle and other assets All 88,000 Asset Coding MWTC 70,000
Total USD 3,288,000
iv) Exchange Loss
Activity Entity USD Exchangelosscover: June , 2017 MWTC 4,403,859 Reserved for exchange loss and unallocated MWTC 402,868 Total USD 4,806,727
5.4 Project Commitments
Committed expenditures which include proj ects approved and activities under implementation stages as at 30th June 2017, amounted to USO 93 .2 million (93%) as indicated in Table 34 as per approved "Procurement Pl an", "Training Plan" and "Operational Expenditure Pl an".
55 THE UNITED REPUBLIC OF TANZANIA MINI TRY OF WORKS, TRAN PORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
However, it is indicated in the World Bank system that there has been a reduction in loan amount by approximately USO 4.6 million due to variations in conversion of SOR to USO. The implication to this reduction is that some project activities will not be implemented. This has resulted in an available balance of US$ 3.2 million that have been be committed to other project activities still in the ptanning stage as per Table 34.
Table 35 presents a breakdown of cumulative project commitments under implementation by project components; comparing total planned project funds against commitments as at 30 June 2017.
Table 34: Projects in the planning stage
SIN Description Amount The active equipment that will allow 11 MDAs to be connected to the 60,000 l GOVNET GOVNET License: License renewal for Cisco and Cyberoam/Sophos 471,000 2 equipment for three years eOffice: Enhancement will cover additional features, integrations with 300,000 3 other systems, technical and end user trainings 4 Technical and Financial Trainings at POPSM, eGA 200,000 e-Records Ingestion of records: The installation and commissioning of the Digital Records management and preservation system will be 40,000 5 completed by end of September 2017. NPB Integrations: NBP need to be integrated with: Online Registration 50,000 6 System: Government payment gateway Video Conference (VC) Trainings: Focus will be to train and sensitize high level officers to use the Video Conference in order to reduce 50,000 7 associated travel costs and risks 8 Activities of enhancing BRS System 40,000 Supply and Installation of Equipment (Bridge) for linking 85 Video 541,000 9 Conferencing Stations 10 Procurement of [CT Equipment for MWTC and ICT Commi ssion 68,000 11 Video Conferences for 4 Regions 200,000 12 Furniture for [CT Commission 20,000 13 Provision of Asset Coding Services 30,000 14 Assistant Financial Management specialist 48,000 15 Procurement of Baggage/Parcel Scanner 350,000
16 SmartNet for A-POP: SLA fo r bandwidth manager 50,000 17 Procurement of additional international bandwidth 350,000 Asset Coding: To ensure that procured and registered project asset are properly identified, tracked and controlled using unique and uniform 70,000 18 asset tags 19 Shifting of systems and !CT equipment to Dodoma 30,000 20 Capacity Building activities at MWTC, ICTC, UCSAF 300,000 TOTAL-USD 3,268,000
56 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AN D COMMUNICATION RCIP PROJECT FINANCIAL STATEMENT S
Table 35: Project commitments
Expenditure by Project Funds Committed Uncommitted Performance Components USD USD USD % 1- Enabling 14,000,000 6,824,067 7,175,933 49% Environment 2- Connectivity 60,000,000 61 ,456, 116 (1 ,456,116) 102% 3 -eGovernment 22,000,000 20,507,272 1,492,728 93% Applications 4- Project 4,000,000 4,424,111 (424,111) 111 % Management Total 100,000,000 93,211,566 6,788,434 93% Expenditure
6. PROJECT SUCCESS AND ACHIEVEMENTS
Major achievements during the period comprise but not limited to the fo llowing project activities:
6.1 Legal and Regulatory Environment
i) The Government of the United Republic of Tanzania enacted the Cyber Crime Act, 2015 and the Electronic Transaction Act, 2015 on 15 April 2015. This has created an environment to foster implementation of electronic systems as electronic transactions are now recug11izeJ a11J prutecteJ by law.
ii) Creation of eGovernment Standards and Guidelines to ensure all eGovernment initiatives are implemented using same guidelines hence enhancing systems interoperability, integration as well as easy data sharing.
iii) Development of eGovernment Policy whose objective is to ensure quality and sustainable public service delivery by adopting and using Information and Communication Technologies. The policy is in the final stages of approval. The use of this policy will eventually strengthen management and control of e-Government initiatives.
iv) Review of ICT Governance Framework that would ensure ICT is well managed and government within the public service.
v) In November 2015, the Government establi shed the National ICT Commission (ICTC) vide the Government Notice No. 532 to drive ICT development in the country. The ICTC's mandate is to provide advice, strategic planning, implementation and investment in ICT; monitor and coordinate National ICT initiatives and provide foresight in trend and opportunities for ICT uptake fo r the nation' s socio-economic development. 6.2 Improving and lowering the cost of internet connectivity
i) Procured bulk international Internet bandwidth for IO years which is being distributed to Government in stitutions. These institutions are now utilizing centrally procured and
57 THE NITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
managed Internet access at low cost. Thi s has made significant savin g between 50% - 90% to institutions using the servi ce whose number has reached 206 institutions.
6.3 Extending Communication Services in Rural areas
i) The implementation of the universal access program financed through the RClP project has resulted in over 341 unserved or under-served wards in rural areas have gaining access to mobile communication services including Mobile Money Transfer services (Financial Inclusion) such as Mpes.a, Tigo Pesa, Airtel Money etc. The geographical coverage includes more than 2.6 million people from 1,393 villages countrywide.
6.4 Improving government efficiency
i) Launched implementation of the Government Communication Network (GovNet) aiming at providing inter-MDAs communications services like data exchanges, sharing network resources, IP Telephony, Video Conferencing etc. Total of 72 MDAs have been connected to the GOVNET usin g high-speed data connection. This has brought big positive impact in terms of reduction on internal communication, easy of sharing of data and other resources as well as easy of managing internal information resources.
ii) In collaboration with the Government, Designed Government mini data centre which has been implemented for the Government institutions to host or co-allocate their systems. RCIP did the design and the Government through other sources did the implementation. The use of this facility has improved availability and reliability of Government systems.
6.5 Improving service delivery
i) JCT Infrastructure in place, which have been deployed by the government includes the National ICT Broadband Backbone (NICTBB) that enable easy access of ICT services to all citizens at affordable costs. Through NJCTBB number of services are possible, i.e. Electroni c banking servi ces through banks (CRDB, NMB, NBC, etc.); mobile banking servi ces i.e. M-Pesa, T igo-Pesa, Z-Pesa and Airtel Money; online bills payments i.e. TA ESCO services (Luku), DAW ASCO for water servi ces, TAX payments, Set Top Box (STB) fo r television services, tickets online buying; and other online services like video conference, e-schools and e-Government services.
ii) In collaboration with the Government, designed mobile platform that is now hosting various mobile applications. Some of the services developed by the Government and are avail able included the voter's mobile application that was used during national election 2015 for voters to verify their ID card s and check their polling stations. A number of voters used the application during the national elections. Another hosted application in this platform is the job applications by which a number of seekers have used the system to apply job within the Government. Plans are underway through RClP to build capacity to Government staff in order to expand the mobile platform so as to accommodate additional mobile delivery channels as we ll as increasing ten additional mobile based e-services.
58 THE UNITED REPUBLIC OF TANZANIA MINI TRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
7. PROJECT CHALLENGES
7.1 Project Closure
The RCIP project management team is trying every respect to ensure that all planned project activities are implemented within the extension period of 31 December 2017. In order to complete di sbursements for executed and delivered project activities prior to the loan closing date of 31 December 2017, all outstanding payments will be paid before the disbursement deadline date to 30 April 2018.
The RClP Tanzania project became effective on 20th January 2010 for a period of five years whereby the project closing date was set on 28th February 2015.
On ?1h January, 2015 the World Bank granted the extension of the project closing date for a period of 22 months to 31st December 2016 due to delays in project implementation. Generally, the project progress has. improved slightly as compared to last year.
Delays in the critical steps in time-constrained project activities are likely to affect the project's completion date as well as achievement of the Project Development Objectives (PDOs). On 21 st July, 2016 the Government requested a second extension by 12 months thereby bringing the closing date to December 31, 2017.
7.2 Project delays and constraints
The major impact in the course of implementation of the RCf P Project is the likelihood of delaying the completion of scheduled project activities because of project conslrainls i11 lerms of rcsourcc3, time and scope as follows:
• Slow start to execute project activities during the first three years (i.e. 2009/20 I 0, 2010/2011 and 2011/2012); • Lengthy process for issuance of "No Objections" from World Bank. There is also a general concern from World Bank that important documents such as terms of reference, evaluation reports, concept notes, etc. were partially completed by implementing agencies when requesting for "No Objection" from the Bank; • Limited project definition, scope design, procurement activities and implementation timeframe. • Lack of human capital to manage multi-stakeholder projects due to limited skills and expertise in managing integrated ICT projects; • Low disbursement due to financial management issues; • All project activities need World Bank's no objection as well as respective implementing agencies' Ministerial Tender Board (MTB) approvals. There were notable substantial delays in the approval process which had negative impact to the project lifecycle.
7.3 Disbursements after the Loan Closing Date
The RCIP project management team is trying every respect to ensure that all planned project activities are implemented within the extension period of 31 December 2017. In order to complete disbursements for executed and delivered project activities prior to the loan closing date of 31 December 2017, all outstanding payments will be paid before the disbursement deadline date to 30 April 2018.
59 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
Final payment for retention money (I 0%-20%) for GovNet Ill, eGovernment applications and rural telecommunications access projects should be extended for payment by March, 2018. Thi s will give room for finalizing few remaining activities and giving a minimum of 6 months grace period of successfuL service provisioning.
7.4 Foreign Exchange Risk
There is a significant foreign exchange ri sk that exists because project financial transactions are denominated in USD while the base currency of the loan is nominated in SDR. Subsequent to the year end, transactional exposure arising from exchange rate movement is approximately USO 5 mittion.
7.5 Project Sustainability Plan
Organisational and financial sustainability issues of several projects. are critical to ensure the results obtained are maintained upon completion and closure of RCIP. Some of the sustainability parameters where sought and implemented on course of implementing the projects that includes capacity building and skill s transfer to staff who will manage the systems, housing the applications in centralized managed data centre to minimize cost of managi ng isolated systems, acquisition of source codes etc. some of these need to be further analysed specifically for each project. A team have been formed towards this endeavour to ascertain sustainability issues including asset management[ asset coding] that will be performed before closure of the project.
7.6 Lack of insufficient financial resources
Inadequate allocation of financial resources for infrastructure development and maintenance support as well as fast-changing telecommunication sector pose a significant challenge of managing RCIP telecommunication and ICT assets go ing foward .
8. CONCLUSION
The Project implementing agenc ies and beneficiaries are committed to ensure that the project 1s delivered as planned notwithstanding the above constraints and challenges.
The Government and World Bank are closely managing the on-going project act1v 1t1es through monitoring and controlling the project variables such as time, resources, scope, technology and processes against the pl an to ensure the project attains its goals and objectives effectively.
Mrs. Maria Sasabo (PhD) The Permanent Secretary (Communication) & Accounting Officer Ministry of Works, Transport and Communication 30 June, 2017
60 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT OF CASH RECEIPTS AND PAYMENTS PER COMPONENTS For the year ended 30 June 2017
Note 2017 2016 USD USD RECEIPTS IDA Proceeds 4 18,842,095 15,878,923 Counterpart Funds 5 Government of Tanzania 6 Total Receipts 18,842,095 15,878,923
PAYMENTS Component 1 - Enabling Environment 7 1,314,721 1,425,859 Component 2 - Connectivity 8 9,502,867 13,052,694 Component 3 - eGovernment application 9 5,833,091 1,573,240 Component 4 - Project management IO 442,996 848,007 Total Payments 17,093,675 16,899,800
Increase/(Decrease) in cash 1,748,420 (1 ,020,877) Cash at the beginning of the year 471,264 1,492, 141 Cash at the end of the period 2,219,684 471 ,264
Mrs. Maria Sasabo (PhD) 30 June, 2017 Accounting Officer Date
6 1 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FI NANCI AL STATEMENTS
STATEMENT OF CASH RECEIPTS AND PAYMENTS PER CATEGORIES For the year ended 30 J une 2017
Note 2017 2016 USD USD RECEIPTS IDA Proceeds 4 18,842,095 15,878,923 Counterpart Funds 5 Government of Tanzania 6 Total Receipts 18,842,095 15,878,923
PAYMENTS 11 12,960,340 10,076,000 Category 1: works, goods, consultants' services, training, operating costs and non-consulting services
Category 2: capital subsidies 12 4,133,335 6,823,800 PPF Refinancing Unallocated Total Payments 17,093,675 16,899,800
Increase/(Decrease) in cash 1,748,420 (1,020,877) Cash at the beginning of the year 471 ,264 1,492,141 Cash at the end of the period 2,219,684 471 ,264
Mrs. Maria Sasabo (PhD) 30 June, 2017 Accounting Officer Date
62 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT OF CASH FLOW For the year ended 30 June 2017
Note 2017 2016 USD USD Cash flow from operating activities RECEIPTS IDA Proceeds 4 Counterpart Funds 5 Government of Tanzania 6 Total Receipts
PAYMENTS Enabling Environment 7 970, 165 1, 11 4,817 Connectivi ty 8 49,275 54,567 eGovernment applications 9 889,372 839,190 Project Management 10 4 10,264 776,553 Total Payments 2,319,076 2,785,127
Net cash flow from operating activities 2,319,076 2,785,127
Cash flow from investing activities Purchases of property, planl amJ e4uipmenL 13 5,697,545 6,556,823 Purchases of intangible assets 14 4,943 ,719 734,050 Rural access capital subsidies 12 4,133 ,335 6,823,800 Net cash flow from investing activities 14,774,599 14,114,673
Cash flow from financing activities IDA proceeds 4 18,842,095 15,878,923 Interest payment Repayment of borrowings Net cash flow from financing activities 18,842,095 15,878,923
Net (decrease)/increase in cash 1,748,420 (1,020,877) Cash at the beginning of the year 471,264 1,492, 14 l Cash at the end of the period 2,219,684 471 ,264
Mrs. Maria Sasabo (PhD) 30 June, 2017 Accounting Officer Date
63 -
THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNT For the year ended 30 June 2017
Sources of Funds Note Year to Date June 2017 Cumulative to Date June 2017 Actual Planned Variance Actual Planned Variance USD USD USD USD USD USD Opening Cash Balances Project Account -MWTC 2 2,787 41,758 (8,971) Project Account- POPSM 2 204,422 65,937 138,485 IDA Designated Account 3 234,055 4,405,099 (4 ,171 ,044) Total 471,264 4,512,794 (4,041,530) Add: Receipts IDA 4 18 ,842,095 30,883,719 (12,041 ,624) 64,014,324 95 ,368,050 (31 ,710,036) Counterpart 5 Government of Tanzania 6 Total Financing 18,842,095 30,883,719 (12,041,624) 64,014,324 95,368,050 (31,710,036) Less: Expenditures Enabling Environment 15 1,314,721 2,044,867 (730, 146) 4,873,673 6,824,067 (1,950,394) Connectivity 16 9,502,867 22,054,973 (12,552,106) 43 ,464,979 61 ,456,116 (17,99 }, 137) eGovemment application 17 5,833,091 8,23 7,327 (2 ,404,236) 9,809,179 20,507,272 (10,698,093) Project Management 18 442,996 546,552 (103 ,556) 3,646,809 4,424, 111 (777,302) Total Expenditure 17,093,675 32,883,719 (15,790,044) 61,794,640 93,211,566 (31,416,926)
Closing Cash Balances Project Account -MWTC 2 33,022 41,758 (8,736) 33,022 41,758 (8,736) Project Account- POPSM 2 123 ,461 65,93 7 57,524 123,461 65 ,937 57,524 ,.., IDA Designated Account .) 2,063,201 2,405,099 (341,898) 2,063 ,201 2,405,099 (341 ,898) Total 2,219,684 2,512,794 (293,110) 2,219,684 2,512,794 (293,110)
SAscJsol Mrs. Maria Sasabo (PhD) 30 June, 2017 Accounting Officer Date
64 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
STATEMENT OF DISBURSEMENTS PER CATEGORIES For the year ended 30 June 2017
Type of Disbursement Year to Date June 2017 Allocated Disbursed Undisbursed Disbursed snR SDR SDR O/o Disbursement per category Category l 41 ,500,000 32,606,740 8,893,260 79% Category 2 20,000,000 10,532,089 9,467,911 53% PPF Refinancing 500,000 250 499,750 0% Unallocated 5,000,000 5,000,000 0% Designated Account 1,574,836 (1,574,836) Total 67,000,000 44,713,915 22,286,085 67%
USD USD USD O/o Category l 62,000,000 46,678,030 15,321 ,970 75% Category 2 30,000,000 15 ,116,2 18 14,883,782 50% PPF Refinancing 700,000 392 699,608 0% Unallocated 7,3 00,000 7,300,000 0% Designated Account 2,219,684 (2,219,684) Total Expenditure 100,000,000 64,014,324 35,985,676 64%
Mrs. Mari a Sasabo (PhD) 30 June, 2017 Accounting Officer Date
65 TH E UN ITED REPUBLIC O F TANZANIA MINISTRY OF WORKS, TRANS PORT AN D COMM UN ICATION RC IP PROJ ECT FINANC IAL ST AT EMENTS
DESIGNATED ACCOUNT ACTIVITY STATEMENT For the year ended 30 JUNE 2017 Note Year Cumulative to Date to Date
Opening Cash Balances 471,264
Add: Receipts Initial Deposit 5,000,000 IDA Replenishm ents 7,190,149 14,764,35 0 Interest Earnings Total Financing 7,190,149 19,764,350
Less: Expenditures Enabling Envi ronment 1,314,72 1 4,873,672 Connectivity 92 1,388 2,838,090 eGovernment Applicati ons 2,762,624 6,186,486 Project Management 442,996 3,646,418 Total Expenditure 17,544,666
Closing cash balances in the Designated Account 2,219,684 2,219,684
Represented by:
Project Account -MWTC 2 33,022 33,022 Project Account- POPSM 2 123,46 1 123,461 IDA Designated Account 3 2,063,201 2,063,201 Closing cash balances in the D.A. (A) 2,219,684 2,219,684
Total advances accounted for:
MCST/1 10 108,572 108,572 MCST/109 592,522 592,522 MCST/105 971 ,994 971 ,994 Applications not yet credited in the D.A. (B) 1,673,087 1,673,087
Amount recovered by World Bank (C) 1,107,229 1,107,229
Total advances by World Bank (A+B+C) 5,000,000 5,000,000
Mrs. Mari a Sasabo (PhD) 30 June, 2017 Accounting Officer Date
66 THE UNITED REP BLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
1. Significant Accounting Policies
The princlpal accounting policies adopted in the preparation of these financial statements are set out as below. These policies have been consistently applied throughout the reporting period.
1.1 Basis of Preparation
The financial statements have been prepared under the historical cost conversion including the application of the IPSAs cash basis of financial reporting. The cash basis of accounting recognises transactions and events only when cash is received or paid by the implementing entities. The RCIP Project financial statements have also been prepared using special purpose framework to cater special needs of specific users of financial information. These financial statements provide users (including lenders} with information about the sources of cash raised during the period, the purposes for which cash was used and the cash balances at the reporting date. The measurement focus in the financial statements is balances of cash and changes therein. Notes to the financial statements provide additional disclosures about liabilities and inventories in line with accrual basis IPSASs.
1.2 Statement of Compliance
The financial statements have been prepared in accordance with International Public Sector Accounting Standards (IPSASs) issued by the Public Sector Committee of the International Federation. The financial statements also comply with the Public Finance Act of 2001 as amended in 2004.
1.3 Accounting period
The project prepares. its financial statements for the period of twelve months ending on 30th June each year.
1.4 Accounting Convention
The financial statements have been prepared using the hi storical cost convention.
1.5 The Statement of Budget and Actual Expenditure
The IPSASs require a comparison of the approved budget amounts and the actual amounts arising from execution of the budget to be included in the financial statements. The IPSASs also require disclosure of an explanation of the reasons for material differences between the budget and actual amounts. This statement has been incorporated in the financial statements appropriately.
1.6 Foreign Currency Translation
The financial statements are presented in United States Dollars (USD) which is the functional and presentation currency of the term loan. All foreign currency transactions are translated into USD using the exchange rates prevailing at the dates of the transactions. Monetary items denominated in foreign currencies are re-measured at the rates of exchange ruling at a settlement date or the reporting date.
67 THE UNITED REPUBLIC OF' TANZANIA MINI TRY OF' WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (Continued)
1.7 Cash and Cash Equivalents
Cash and cash equivalents comprise of cash in hand, deposits held at call with commercial banks and the Bank of Tanzania (BoT).
1.8 Taxes
RCIP Tanzania Project is not exempted from taxes. Expenditures are inclusive of all taxes including Value Added Tax (VAT).
1.9 The Budget
The budget and the financial statements are prepared and presented on the same basis.
2. Project Bank Accounts
MWTC and PO-PSM operate separate project accounts at the CRDB Bank Limited, Azikiwe Branch. Funds from the Designated Account are transferred regularly into these accounts to meet operational and other costs of the RCIP Project. Cash and cash equivalents comprise of the following:
Name of Account TZS Exchange Rate USD
Project Account (MWTC) 71 ,417,227 2,162.72 33,022 Project Account (PO-PSM) 273,670,370 2,216.65 123,461 Total 345,087,597 237,209
3. Designated Account
MWTC maintains the Designated Account at the Bank of Tanzani a as required by the World Bank regulations. As at 30 June 2017, the projects had fund balances amounting to USO 2.2 million, comprising of funds in the Designated Account and local project accounts as tabulated below:
Year Cumulative to Date to Date
Opening cash balance 471,264 Add: Project receipts from World Bank 7,190, 149 19,764,350 Less: Project expenditures 5,441 ,729 17,544,666 Closing cash balances in the Designated Account 2,219,684 2,219,684
Represented by: Project Account -MWTC 33,022 33,022 Project Account- POPSM 123,461 123,461 IDA Designated Account 2,063,201 2,063,20 l Closing cash balances in the Designated Account 2,219,684 2,219,684
68 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUN ICATION RCIP PROJECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Cumulative disbursements through the designated account for the entire project period up to 30 June 2017 amounted to USD 19, 764,3S.O, which is approximately 19.8% of the project fu nd s. Low disbursement of funds was mainl y caused by lengthy delays in effectiveness includ ing complicated legal processes fo r approval of procurement project activities among the implementing agencies and World Bank.
4. IDA Proceeds Di sbursements made by World Bank during the year 2017/20 16
Application Name of Payee Currency Amount Category Date Paid MCST/ 101 In fotech Private Ltd USD 1,208,474 l 20-Jun-l 7 MCST/100 MFI Ltd USD 265,872 l 24-May- 17 MCST/99 TTCL USD 193,077 l 26-Apr-l 7 MCST/99 TTCL USO 53 ,560 2 26-Apr-l 7 MCST/99 TTCL USD 143,957 2 26-Apr-l 7 MCST/94 MIC Tanzania Ltd USD 397,858 2 l 7-Mar- 17 MCST/93 Infotech Private Ltd USD 402,824 l 15-Mar-l 7 MCST/92 SCI Tanzania Ltd USO 278,280 l l 7-Feb-17 MCST/91 Computech ICS (T) Ltd USD 2,408, 156 l 26-Jan-l 7 MCST/90 TTCL USD 486,695 2 7-Dec-16 MCST/84 MFI Ltd USO 265,872 1 28-Nov-16 MCST/83 Computer Centre Ltd USO 614,845 l 3 l-Oct-16 MCST/57 MIC Tanzania Ltd l JS O 444,634 2 31-0ct-16 MCST/82 Infotech Private Ltd USO 604,237 l l 9-0ct-16 MCST/78 AIRTEL Tanzania Ltd US O 1,2 14,790 2 9-Sep- 16 MCST76 MFI Ltd USD 323,188 1 2-Sep- 16 MCST/75 Softnet Technologies Ltd US D 572,117 l 2-Sep-16 MCST77 Techno Image Ltd USO 264,833 I 2-Sep- 16 MCST/73 TTCL USO 303,385 1 17-Aug-l 6 MCST/72 TTCL USO 1,205,293 2 17-Aug-16 Sub Total payment to Suppliers 11,651,947 MCST/98 MWTC USD 1,2 13, 107 30-Mar-l 7 MCST/97 MWTC USO 1,838,497 30-Mar-l 7 MCST/88 MWTC USD 427, 169 30-Nov-1 6 MCST/89 MWTC USO 1, 171 ,947 30-Nov-16 MCST/85 MWTC USO 43 1,043 28-Nov-16 MCST/81 MWTC USO 772,276 29-Sep-16 MCST/79 MWTC USO 210,448 28-Sep-16 MCST/74 MWTC US O 1, 125 ,661 l 8-Aug- 16 Sub advances to the designated account 7,190,148 Grand Total 18,842,095
69 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRAN PORT AND COMMUN ICATION RCIP PROJECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (Continued)
The above applications were effected to suppliers as well as advances to the designated account usin g the direct payment method for the cost of proj ect expenditures.
5. Counterpart Funds
The RCIP Tanzania Project is mostly financed by the World Bank.
6. Government of Tanzania
The RCIP Tanzania project is the Loan Agreement of 40 years between United Republic of Tanzania and World Bank through its financier International Development Association (IDA)
7. Component! -Enabling Environment: USD 14 million
This component provides support fo r capacity building in order to strengthen the policy and regulatory environment and promote further sector reform in order to maximize benefits from access to international capacity including supporting the capacity of MWTC and other key agencies involved in ICT sector.
2017 2016 USD USD eSchuub ICT e4uiµ111e11l 344,556 303, 156 Video conference equipment 7,886 Property, plant and equipment 344,556 311,042 Rural Telecom Services 4,263 70,889 GovNet Implementation 61,446 84,488 Publici ty and awareness 198,758 34,407 NPKI 68,078 eSchools training and supervision 16,839 344,488 Science and Technology 48,195 Cyber Security Laws 57,656 29 l 443 ICT Commission 53 ,939 NICTBB and Broadband Strategy 57,774 59,398 Monitoring & Evaluation Survey 241,498 Environmental Impact Assessment 12,35 0 Training and Development 197,564 181 ,509 Operating activities 970,165 1,114,817
Total Payments 1,314,721 1,425,859
8. Component 2 - Connectivity: USD 60 million
This component provides additional funding fo r the National ICT Infrastructure Development Program in Tanzania through the fo llowing subcomponents:
70 THE UN ITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUN ICATION RC IP PROJ ECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(i) Pre-purchase of international bandwidth for priority targeted user groups; (ii) Government Communications Network - fiber connectivity and eq uipment for Ministries, Departments, and Agencies (MDAs); and (iii) Extension of coverage and access to ICT services in rural areas using public-private partnership arrangements.
2017 2016 USD USD International internet bandwidth Bandwidth management system 83 ,887 34,936 License renewal 49,275 54,567 Government communication network 5,236,370 6,139,391 Rural access capital subsidies - UCSAF 4, 133,335 6,823 ,800 Total Payments 9,502,867 13,052,694
9. Component 3 - eGovernment Applications: USD 22 million
This component funds the implementation of targeted e-Government applications and capacity building activities as follows:
2017 2016 USD USD ational Business Portal 796,198 327,087 Telemedicine for Muhimbili Hospital 329,359 160,299 National Registrati on System 3,043,458 174,035 eProcurement system for PPRA 9 1,793 eRecord s for National Archive 682,9 1 L 72,629 Sub-total Intangible assets 4,943,719 734,050 eGovernment Policies 45 ,353 259,736 Publicity and awareness 95 ,480 Training PO-PSM and eGA 748,539 579,454 Sub- total operating activities 889,372 839,190
Total Payments 5,833,091 1,573,240
10. Component 4 - Project Management: USD 4 million
This component consists of support the MWTC and PO-PSM capacity for management and coordination of the Project activities induding, procurement, financial management, monitoring and evaluation, communication of Project activities, and environmental and social safeguards.
71 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2017 2016 USD USD Project consultants 232,895 292,340 Coding of RCIP asset Opex MWTC 101,233 175, 179 Opex PO-PSM 76,136 309,034 Subtotal operating activities 410,264 776,553 Motor Vehicle ICT and office equipment 32,732 71,454 Total Payments 442,996 848,007
11. Category 1
Category one comprise of the following project activities:
(i) Goods, consultants' services, training and operating costs for all components (ii) Works for Connectivity and e-Government Applications. (iii) Non-consulting services for all components.
2017 2016 USD USD Enabling Environment 1,314,721 1,425,85-9 Connectivity 5,369,532 6,228,894 eGovernment Applications 5,833,091 1,573,240 Project Management 442,996 848,007 Total Payments 12,960,340 10,076,000
12. Category 2
Project activities for capital subsidies to support extension of coverage and access to ICT services in rural areas using public private partnership arrangements. This project activity is being implemented in collaboration with telecommunications operators; namely Tanzania Telecommunications Company Limited, Airtel Tanzania Limited, Vodacom Tanzania Limited and MIC Tanzania Limited.
2017 2016 USD USD MIC Tanzania Ltd 842,492 843,597 Airtel Tanzania Ltd 1,401 ,338 122,400 TTCL 1,889,505 3,124,734 Vodacom Tanzania Ltd 2,733,069 Total Payments 4,133,335 6,823,800
72 THE NITED REPUBLIC OF TANZAN IA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (Continued)
13. Property, plant and equipment
2017 2016 USD USD Internet bandwidth equipment 83 ,887 34,936 Government communication network 5,236,370 6, 139,39-l eSchools !CT equipment 344,556 303, 156 Video Conference equipment 7,886 ICT and office equipment 32,732 71 ,454 Total Payments 5,697,545 6,556,823
14. Intangible Assets
2017 2016 USD USD National Business Portal 796,198 327,087 Telemedicine System 329,359 160,299 National Registration System 3,043,458 174,035 eProcurement system 91,793 eRecords 682,9 11 72,629 Total Payments 4,943,719 734,050
15. Component I - Enabling Environment
Activity Year to Date June 2017 Cumulative to Date June 2017 Actual Planned Variance Actual Planned Variance USD USD USD USD USD USD Ru ra l Telecom Services 4,263 41 ,102 (36,839) 393,396 514,713 (121,317) GovNet Implementation 61 ,446 72,765 (11 ,319) 33 8,5 82 379,815 (41 ,233) Publicity and awareness 198,758 254,589 (55,831) 265,990 325,976 (59,986) NPKT 68,078 233,644 (165,566) 102,272 267,838 (165,566) eSchools Connectivity 361 ,395 467,119 (105 ,724) 1,106,748 1,242, 105 (1 35,357) JCT & VC eq uipment 199,620 940,620 (74 1,000) Science and Technology 2 18,167 218, 167 Cyber Security Laws 57,656 67,194 (9,538) 611 ,160 660,185 (49,025) JCT Commission 53,939 87,096 (33, 157) 64,242 140,137 (75,895) NICTBB and Broadband 57,774 212,012 ( 154,238) 277,243 480,513 (203,270) M&E 241 ,498 297,918 (56,420) 308,647 468,050 (159,403) Environmental Impact 12,350 65,000 (52,650) 12,350 65,000 (52,650) Training and workshops 197,564 246,428 (48,864) 975,256 I, 120,948 (145,692) 1,314,721 2,044,867 (730,146) 4,873,673 6,824,067 (1,950,394) Total expenditure
73 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (Continued)
The unfavourable variance of USO 1,95.0,394 between actual expenditures and the budget is mainly attributabte to:
Activity Variance analysis as at 30 June 2017 Variance USD Rural Supervision; monitoring and evaluation; technical audit 121 ,317 Telecommunications and asset management activities are on going Access Project
Government Supervision; monitoring and evaluation; acceptance 41 ,234 Communications Network testing and asset management activities are on going (GovNet)
Publicity and awareness Implementation of airing TV and Radio programs are stilt 59,986 in progress. The variance is due to delays in implementation of contracts and approval of content for newsletters and insertion of articles in newspapers and journals National Public Key The system feasibility study and design were completed in 165,566 Infrastructure (NPK[) May 2017 and payment to the consultant was effected subsequent to the year-end eSchools Connectivity Delivery of eSchools power equipment was completed 135,35-7 Project subsequent to the year end
ICT equipment & Video Re-tendering process for bridge equipment is in progress 741 ,000 Conference Systems and Tender documents for new VC equipment are in the process of approval Cyber Security Laws Present Cabinet paper to Cabinet Secretariat. 49,025 J Continue with capacity building of law enforcement officers. Tanzania ICT 60% payment for Provision of Consultancy Services for 75,895 Commission the Development of the National Information and Communication Technology ([CT) Commission Bill will be completed in August 2017 National ICT Broadband The tender for consultancy service for preparation of 203,270 Backbone (NICTBB) Broadband Strategy was cancelled during the year
Monitoring & Evaluation Implementation of phase one was completed in June 159,403 December 2016.Implementation of phase two Has not yet been conducted which recorded the variance Environmental Impact 80% payment of the contract price upon acceptance of 52,650 Assessment the final report for Provision of Consultancy Services for carrying out an environmental and social compliances audit will be completed in September 2017 Training and workshops Training activities will be conducted before 31 145,691 December, 2017 Total variance 1,950,395
74 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (Continued)
16. Component 2 - Connectivity
Activity Year to Date June 2017 Cumulative to Date June 2017 Actual Planned Variance Actual Planned Variance USD USD USD USD USD USD Internet Bandwidth 133,162 217,049 (83 ,887) 11,645,479 I I ,778,64 I (133,162} GovNet 5,236,370 8,232,858 (2,996,488) 16,703,282 21,966,029 (5,262,747) Rural access 4,133,335 13,605,066 (9,471 ,73 1) 15,116,218 27,711 ,446 (12,595,228) Total Expenditure 9,502,867 22,054,973 (12,552,106) 43,464,979 61,456,116 (17,991,137)
The difference between actual expenditure and budgeted project act1v1t1es under category two recorded a negative variance of USD 17,991,137. Predominantly, the difference related to the Government communications network and Provision of Rural Telecommunications Services project activities as follows:
Activity Variance analysis as at 30 June 2017 Variance USD Pre-purchase of international Final payment against completion of supply, 113,162 bandwidth installation, testing and acceptance of spam protection system in the "Government International Bandwidth Management System" will be completed in July 2017. Government Communications • Delays in getting permission to use NICTBB 5,262,746 Network (GovNet) and TTCL facilities in order to integrate 77 sites to the GovNet (discussion between NICTBB, TTCL, TAMISEMI and eGA have been finalized and construction work is in progress). • 10% retention money will be paid in March 2018 Rural Telecommunications • Phase one completed all 52 wards, 20% final 12,595,228 Access Program payment will be paid subsequent to the year end • Phase lA - All 77 wards completed and final payment will be paid before the disbursement deadline. • Phase 2A: 83 wards out of l 02 completed . • TTCL still has 18 wards incomplete while MIC has one site pending • Phase 2B: 77 wards out of 116 are completed, TTCL still have 39 wards incomplete • Retention money covering 20% of the contract will be in year 2018 Total Variance 17,991,136
75 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (Continued)
17. Component 3 - eGovernment Applications
Activity Year to Date June 2017 Cumulative to Date June 2017 Actual Planned Variance Actual Planned Variance USD USD USD USD USD USD National Business Portal 796,198 813,746 (17,548) 1, 178,775 1,913,309 (734,534) Telemedicine for MNH 329,359 1,229,778 (900,419) 821 ,954 4,476,063 (3,654,109) National Reg. System 3,043,458 2,989,070 54,388 3,494,870 5,594,180 (2,099,31 O} EALRS /ILMIS 380,422 380,422 eProcurement for MSD 91 ,793 904,253 (812,460) 396,712 2,471 ,299 (2,074,587) eRecords 682,911 822,723 (139,812) 766,495 1,447,219 (680,724) Designing Server cluster 60,600 60,600 eMobile applications 47,510 838,838 (791,328) eGovernment Policies 45,353 133,066 (87,713) 355,735 447,017 (91,282) Publicity and awareness 95,480 216,159 (120,679) 248,956 335,190 (86,234) Training POPSM/ eGA 748,539 1,128,532 (379,993) 2,057,150 2,543,135 (485,985) Total Expenditure 5,833,091 8,237,327 (2,404,236) 9,809,179 20,507,272 (10,698,093)
Unfavourable vari·ance of USD l 0,698,093 reported during the year. Substantial delays were noted with reference to the anticipated time in implementation of the eGovernment Applications projects due to lengthy procurement procedures for hiring of consultants as well as lack of resources in terms of time, costs and human capital as described below:
Activity Variance analysis as at 30 June 2017 Variance USD National Business Portal Integration with Online Registration System (ORS) 734,534 managed by BRELA and Government payment Gateway will be completed during the year Telemedicine for MNH Clearance of snags is in progress. The contractor 3,654,110 has not raised invoices per project milestones National Registration System The Contractor is clearing the snags. The system 2,099,310 will be launched once two main snags are cleared (I.e Addition of RAM, Inter-site Switching) that are estimated to be completed in November 2017 eProcurement for PPRA Finalization of the system was affected by changes 2,074,587 in procurement regulations. The contractor has estimated re-customization to be completed October 2017. eRecords System testing, Trainings and User Acceptance Test 680,724 1 are planned to be conducted from 20 h August 2017 Procurement of Storage and server for Mobile 791,328 eMobile applications Payment Gateway, USSD and SMS Gateway P-Government Policies 10% of the contract price is pending. The policy is 91 ,282 in the final stage of approval Publicity and awareness • Production of TV programmes finalized 86,234 • Production of Graphical signature tune and 8 76 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
Activity Variance analysis as at 30 June 2017 Variance USD Video clips for advertising finalized • Aring of TV progarmmes in progress (20Programmes will be Aired by 3 1st July 2017) Training POPSM/ eGA Training for technical ICT staff from MDAs and 485,985 LG As was. not conducted as planned due to delays in procurement process. In addition, study visits in overseas countries were cancelled . Total Variance 10,698,093
18. Component 4 - Project Management
Activity Year to Date June 2017 Cumulative to Date June 2017 Actual Planned Variance Actual Planned Variance USD USD USD USD USD USD Project consultants 232,895 247,535 (14,640) 1,450,325 1,711 ,775 (261 ,450) Motor Vehicle 148,851 148,851 ICT and other assets 32,732 33,408 (676) 375,5 05 463,505 (88,000) Coding of RCIP asset 37,000 (37,000) OpexMWTC 101 ,23-3 145,512 (44,279) 862,473 1,103,378 (240,905} Opex PO-PSM 76, 136 120,097 (43,961) 809,655 959,602 (149,947) Total Expenditure 442,996 546,552 (103,556) 3,646,809 4,424,111 (777,302)
The eGovernment coordinator, GovNet Consultant, Procurement Specia li sts and M&E Specialist are on board. Contracts for the Project Advisor and Financial Management Speciali st were closed during the year. Project operating costs (Opex) incurred by the MWTC and PO-PSM in the course of the implementation of the proj ect; include operation and maintenance costs, office supplies communications services, consumables, travel costs, per diems and accommodation. The variance of USD 777,3 02 was mainly attributed by delays in procurement of office equipment and furniture as well as operations expenditures for the Project.
Activity Variance analysis as at 30 June 2017 Variance USD Project consultants Contracts fo r the Project Advisor, Financial 26 1,450 Speciali st, Procurement Speciali sts and M&E Speciali st have been closed. ICT and other assets Procurement of ICT Equipment for MWTC and ICT 88,000 Commi ssion are still in the procurement process Coding of RCIP ass.et Approval by World Bank is required for the task to 37,000 be implemented by internal staff using RCIP funds.
Opex MWTC Costs cover the peri od from July 2017 to December 240,905 20 17
77 THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RC IP PROJECT FINANCIAL STATEMENTS
Opex PO-PSM Costs cover the period from Ju ly 2017 to December 149,947 2017 Total Variance 777,302
19. Expenditure by Categories
(i) Category 1 comprise of: Works, Goods, Consultants' services, Training and Operating Costs for Components 1 through 4 of the Project; and Non-consulting Services for Components " 1" ,"2"and "3-" of the Project.
(ii) Category 2 covers Capital Subsidies under Component 2 (iii) of the Project that include extension of coverage and access to ICT services in rural areas using PPP arrangements.
20. Project Risk Management
The RCIP Tanzania Project is exposed to a number of risks that might have significant impact on the overaH project management during planning and execution phases. The Wodd Bank, MWTC and PO PSM are conducting a comprehensive risk management containment covering risk planning, identification, analysis, responses, monitoring and control to ensure that all significant risks are mitigated for eventual successful implementation of the project within the agreed timeframe and resources. This is being undertaken through regular mission visits, technical audit by TCRA, internal and external audits as well as conducting Steering Committee and Technical Team project meetings.
21. Account Payables
Account payables are contractual obligations to pay for goods or services that have been received or supplied, and have been invoiced or formally agreed with the supplier (and include payments in respect of capital subsidies owed to mobile operators). At the year end, the following liabilities were outstanding: 2017 2016 USD USD
Property, plant and equipment 850,780 1,9n,s93 fntangible assets 26S.,699 401,120 Capital subsidies 4,978,263 2,420,082 Training 78,381 272,104 eGovernment appl ications 1,958,749 1,586,332 Project consultants 159,134 67,351 Project Opex 132,024 68,756 Total Payments 8,423,030 6,814,638
22. Inventories
Consumable supplies are expensed in the period in which they are paid for. However, a memorandum record is maintained in the inventory register at cost and disclosed in the statement of stores and other assets.
78 THE UNITED REPUBLIC OF TANZAN IA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION RCIP PROJECT FINANCIAL STATEMENTS
23. Lease of Internet Bandwidth
Finance lease is one in which risk and rewards incidental to the ownership of the leased asset are transferred to lessee but not the actual ownership.
In February 2012, the former Ministry of Communication, Science and Technology (MCST) and Tanzania Telecommunications Company Limited (TICL) commissioned a finance lease for procurement of internet bandwidth worth USO 9,26},000 out of which USO 8,850,000 is financed through IDA funding. The contract is for the supply of a l O year IRU of 1.55 Gbps (10 STM-l) internet bandwidth.
The bandwidth w·ill provide subsidised internet services to target user groups such as. MDAs, Schools and Hospitals. By June 2017, utilization based on capacity assignment reached 100% approximately 1S.00Mbps out of 1550Mbps with over 206 Government institutions utilizing the service.
Under this lease, risk and rewards incidental to the ownership of the leased asset have been transferred to lessee but not the actual ownership.
24. Project Commitments
Project commitments as at 30 June 20 l 7 amounted to USO 93 million out of which USO 61.8 million; equivalents to 66% of the committed funds have been disbursed as shown below:
Type of Component Committed Disbursed Performance USD USO %
Component 1- Enabling Environment 6,824,067 4,873,672 71% Component 2- Connectivity 61,456,116 43,464,979 71% Component 3- eGovernment applications 20,507,272 9,809,179 48% Component 4- Project Management 4,424, l 11 3,646,809 82% Total 93,211,566 61,794,640 66%
The Project Plan Team Members are working hard to ensure that these planned project activities are carried out in an effective and efficient way while ensuring that measurements against project plans, specifications, and the original project feasibilities are on truck.
25. Principal Place of Business
3 Moshi Street, P.O. BOX 677, 40470 DODOMA
Mrs. Maria Sasabo (PhD) 30 June, 2017 Accounting Officer Date
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