Paraíba (Volumes 1, 2, 3, 4 & 6 Issued Separately)
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Definitional Mission to Evaluate ICT Projects in Brazil Volume 5: Paraíba (Volumes 1, 2, 3, 4 & 6 Issued Separately) Final Report Submitted by Hellerstein & Associates December 2016 This report was funded by the U.S. Trade Development Agency (USTDA), an agency of the U.S. Government. The opinions, findings, conclusions, or recommendations expressed in this document are those of the author(s) and do not necessarily represent the official position or policies of USTDA. USTDA makes no representation about, nor does it accept responsibility for, the accuracy or completeness of the information contained in this report. Final Report - DM - Brazil ICT Projects, Paraíba - CODATA Hellerstein & Associates The U.S. Trade and Development Agency The U.S. Trade and Development Agency (USTDA) advances economic development and U.S. commercial interests in developing and middle income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. Operating at the nexus of foreign policy and commerce, USTDA is uniquely positioned to work with U.S. firms and host countries in achieving the agency’s trade and development goals. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services 2 Final Report - DM - Brazil ICT Projects, Paraíba - CODATA Hellerstein & Associates TABLE OF CONTENTS II. PROJECT DESCRIPTION .................................................................................................................... 5 A. Introduction ......................................................................................................................................... 5 Brazil .................................................................................................................................................................................................. 5 The state of Paraíba ...................................................................................................................................................................... 9 CODATA ........................................................................................................................................................................................ 10 B. THE PROJECT ...................................................................................................................................... 11 Design and implementation of an integrated and consolidated data center system ............................................ 11 The State Corporate Network Project (Rede Paraibana de Alto Desempenho - REPAD) ................................ 21 III. GOVERNMENT COMMITMENT ..................................................................................................... 28 IV. POSSIBLE SOURCES OF PROJECT FINANCING ......................................................................... 28 V. POTENTIAL FOR US EXPORTS AND FOREIGN COMPETITION ................................................ 29 VI. FOREIGN COMPETITION AND MARKET ENTRY ISSUES ....................................................... 31 VII. PRELIMINARY DEVELOPMENT IMPACT REVIEW .................................................................. 31 VIII. EVALUATION STRATEGY ............................................................................................................... 33 IX. ENVIRONMENTAL IMPACT ........................................................................................................... 34 X. IMPACT ON US LABOR ........................................................................................................................ 35 XI. JUSTIFICATIONS & RECOMMENDATIONS ................................................................................ 35 XII. QUALIFICATIONS OF PROFESSIONALS IN PARAÍBA BROADBAND NETWORK AND DATA CENTER PROJECT .............................................................................................................................. 35 XIII. SUGGESTED EVALUATION CRITERIA ......................................................................................... 41 XIV: BUDGET ................................................................................................................................................... 41 ANNEX I CODATA DATA CENTER EQUIPMENT LISTS .................................................................... 52 ANNEX II: REPAD ......................................................................................................................................... 61 ANNEX III MUNICIPIOS WITH DATA CONNECTIONS LEASED FROM OI ..................................... 67 3 Final Report - DM - Brazil ICT Projects, Paraíba - CODATA Hellerstein & Associates Paraíba Data Center and Hybrid Broadband Network Project Definitional Mission Report Section 1: INTRODUCTION The U.S. Trade and Development Agency (USTDA) has provided a grant in the amount of US$733,830 to the Paraíba State Data Processing Company (the “Grantee”, or Companhia de Processamento de Dados do Estado da Paraíba - “CODATA”) in accordance with a grant agreement dated May 25, 2018 (the “Grant Agreement”) to fund a Technical Assistance (“Technical Assistance”) for a Paraíba State ICT Modernization Project (“Project”) in Brazil (“Host Country”). This Technical Assistance will help expand the broadband network and upgrade the data center in the Brazilian State of Paraíba. Grantee: The Paraíba State Data Processing Company (CODATA) Activity Budget: $733,830 USD. U.S. Export Potential: Fiber optic cables; optical electronics; wireless equipment such as antennas, transmitters, and receivers; systems and application software, Servers, Switches, Storage, virtualization software, other data center equipment, and cloud storage services; total approximately US$63.6 million. Section 2: BACKGROUND SUMMARY The Paraíba State Data Processing Company (Companhia de Processamento de Dados da Paraíba – CODATA) CODATA, is a mixed capital company, belonging to the indirect administration of the State of Paraíba. It is a company with government participation in its capital and administration for carrying out economic activities. It is governed by the rules of commercial companies, Law No. 6404/1976. CODATA has the following characteristics: legal personality according to private law; (Pessoa Jurídica de Direito Privado): the capital is public and private; it conducts economic activities; the coating of a corporation; the detention by the Government of at least a majority of the shares entitled to vote; the exceptions of private law by public law; and the creation by specific legislative authorization. There may be private capital, but we the control is public, and the state has the absolute majority of the shares entitled to vote. Private law does not apply in its entirety to CODATA. CODATA is linked to the Secretariat of Administration of GEPB. CODATA was and created in 2003 by Complementary Law 049/2003 to provide information and communications technology services (ICT) to centralized and decentralized organs of the State Public Administration. The company’s mission is to provide solutions using information technology, thereby contributing to the modernization of public administration, with transparency, sustainability and standardization for excellence in service to citizens. Accordingly, CODATA aims to propose and provide integrated solutions of means, methods and skills, making intensive and appropriate use of information technology; channeling efforts to improve the services provided by the state public administration; and preserving the management, control and the integrity of strategic state information. CODATA seeks technical assistance for an international consultancy financed by USTDA to: • Estimate state government demand for data center services over the next five years; 4 Final Report - DM - Brazil ICT Projects, Paraíba - CODATA Hellerstein & Associates • Assess the current capacity of CODATA’s data center, the other principal state data centers and smaller server rooms (particularly for the Secretariat of Revenue (Secretária de Receita) regarding equipment, software and physical facilities. • Design a plan for the integration and consolidation of the state’s data centers, including full active-active backup of all the data centers, to ensure they operate securely under a cloud computing architecture, significantly reduce costs and improve quality of service as compared to the present system and satisfy the projected demand for data center services and • Determine the requirements for new hardware and software for the integrated and consolidated system of data centers, including the possible use of a private or public cloud computing architecture; • Propose a design and business model for the expanded broadband network; and • Support implementation of the upgraded data center and backup data center. The scope of work of the Definitional Mission (DM) for USTDA requires development of detailed terms of reference (TOR) for activities recommended by the consultants, detailed consultant qualifications, and a detailed Project budget, with final approval of the activities by USTDA. This Final Report contains