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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 66222-GA PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$58 MILLION Public Disclosure Authorized TO THE GABONESE REPUBLIC FOR THE GABON PROJECT UNDER THE FOURTH PHASE OF THE CENTRAL AFRICAN Public Disclosure Authorized BACKBONE PROGRAM (APL4) March 8, 2012 ICT Sector Unit Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Public Disclosure Authorized Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective January 2012) Currency Unit = Central African CFA (XAF) XAF 500 = US$1 US$ 0.002 = XAF 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS $ United States dollar, all dollars are US dollars unless otherwise indicated ACE Africa Coast to Europe AfDB African Development Bank AF Additional Financing AFD Agence Française de Développement French Development Agency ANGT Agence Nationale des Grands Travaux National Agency for Major Works ANINF Agence Nationale des Infrastructures Numériques et des Fréquences National Agency for Digital Infrastructure and Frequencies APL Adaptable Program Loan ARAP Abbreviated Resettlement Action Plan ARCEP Agence de Régulation des Communications Electroniques et des Postes Posts and Electronic Communications Regulatory Agency AU African Union BOT Build Operate and Transfer BP Bank Procedures CAB Central African Backbone CAB2 STP Central African Backbone Program APL 2 – São Tomé and Príncipe Project CAB3 CG Central African Backbone Program APL 3 – Congo Project CAB4 GA Central African Backbone Program APL 4 – Gabon Project CAGR Compound Annual Growth Rate CAPEX Capital Expenditure CAR Central African Republic CAS Country Assistance Strategy CCSPFOG Commission chargée du suivi des projets de fibre optique au Gabon Fiber Optic Commission ii CEMAC Communauté Economique et Monétaire des Etats de l’Afrique Centrale Economic and Monetary Community of Central Africa C&MA Construction and Maintenance Agreement CN-TIPPEE National Commission – Labor Intensive Small-Scale Public Infrastructure Works Commission Nationale des Travaux d'Intérêt Public pour la Promotion de l'Entreprenariat et de l'Emploi the entity established under Ministerial Decision No. 000007/PRIMPPD, dated January 4, 2006, which will be responsible for the procurement and financial management aspects of CAB4 GA (Project Implementation Unit) CPS Country Partnership Strategy CQS Consultant Qualification Selection DA Designated Account DFIs Development Financial Institutions DRC Democratic Republic of Congo EIA Environmental Impact Assessment EMP Environmental Management Plan ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FBS Fixed Budget Selection FM Financial Management FMM Financial Management Manual FMR Financial Management Report FMS Financial Management Specialist FY Financial Year GDP Gross Domestic Product GoG Government of Gabon GNI Gross National Income IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICPC International Cable Protection Committee ICT Information and Communication Technology ICS Individual Consultant Selection IDA International Development Association IFC International Finance Corporation IFR Interim Financial Report IPDP Indigenous People Development Plan IPP Indigenous Peoples Plan IPPF Indigenous Peoples Planning Framework IRR Internal Rate of Return IRU Indefeasible Right of Use ISO International Organization for Standards ISP Internet Service Provider ISR Implementation Status Report ITU International Telecommunication Union IXP Internet Exchange Point iii Kbps Kilobit per second KPI Key Performance Indicators KVA Kilo Volt Amps Mbps Megabit per second MARPOL International Convention for the Prevention of Pollution from Ships MCPEN Ministère de la Communication, de la Poste et de l’Economie Numérique Ministry of Communication, Post and Digital Economy MECIT Ministère de l’Economie, du Commerce, de l’Industrie et du Tourisme Minister of Economy, Trade, Industry and Tourism MHUEDD Ministère de l’Habitat, de l’Urbanisme, de l’Écologie et du Développement Durable Minister of Housing, Urbanism, Ecology and Sustainable Development MIGA Multilateral Investment Guarantee Agency MMPH Ministère des Mines, du Pétrole et des Hydrocarbures Minister of Mining, Petrol and Oil M&E Monitoring and Evaluation NCB National Competitive Bidding NPV Net Present Value OP Operational Manual OPEX Operating Expenses ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PAP Project Affected People PDIL Projet de Développement des Infrastructures Locales Local Infrastructure Development Project PDO Project Development Objective PFES Point Focal Environnement et Social Environmental and social focal point PFM Public Financial Management PIM Project Implementation Manual PIU Project Implementation Unit PIH Provision pour Investissement en Hydrocarbures Oil Investment fund PPA Project Preparation Advance PPP Public-Private Partnership PS Secrétaire Permanent Permanent Secretary PSGE Plan Stratégique Gabon Emergent Emerging Gabon Strategic Plan QCBS Quality and Cost Based Selection RAP Resettlement Action Plan RFS Ready For Service RPF Resettlement Policy Framework RTA Reimbursable Technical Service Agreement SETRAG Gabonese railway company Société d'Exploitation du Transgabonais iv SME Small and Medium Enterprises SNEEG Stratégie Nationale d’Égalité et d’Équité de Genre National strategy for Gender Equity SPV Special Purpose Vehicle STP São Tomé and Príncipe UNCLOS United Nations Convention on the Law of the Sea UNDP United Nations Development Program UNFPA United Nations Population Fund USD United States Dollar WACS West African Cable System WARCIP West Africa Regional Communications Infrastructure Program WBG World Bank Group XAF Franc CFA CFA franc Vice President: Obiageli Katryn Ezekwesili Country Director for CAB4 Gabon: Gregor Binkert Regional Integration Director: Yusupha B. Crookes Sector Director: Jose Luis Irigoyen Acting Sector Manager Randeep Sudan Task Team Leader for the Program: Jérôme Bezzina Task Team Leader for CAB4 Gabon: Michel Rogy v GABONESE REPUBLIC GABON PROJECT FOURTH PHASE OF THE CENTRAL AFRICAN BACKBONE PROGRAM (APL4) Table of Contents I. Strategic Context ..................................................................................................................... 1 A. Country Context ............................................................................................................... 1 B. Sectoral and Institutional Context .................................................................................... 2 C. Higher Level Objectives to which the Project Contributes .............................................. 7 II. Project Development Objectives........................................................................................... 10 A. PDO ................................................................................................................................ 10 B. Beneficiaries ................................................................................................................... 10 C. PDO Level Results Indicators ........................................................................................ 10 III. Project Description............................................................................................................. 12 A. Project components ........................................................................................................ 12 B. Project Financing............................................................................................................ 13 C. Lessons Learned and Reflected in the Project Design ................................................... 16 IV. Key Risks ........................................................................................................................... 17 V. Implementation ..................................................................................................................... 19 A. Institutional and Implementation Arrangements ............................................................ 20 B. Results Monitoring and Evaluation ................................................................................ 22 C. Sustainability .................................................................................................................. 22 VI. Appraisal Summary ........................................................................................................... 23 A. Economic and Financial Analysis .................................................................................. 23 B. Technical ........................................................................................................................ 24 C. Financial Management ................................................................................................... 29 D. Procurement ................................................................................................................... 31 E. Social and Environment ................................................................................................. 31 F. Grant conditions and covenants ......................................................................................... 33 Annex