Document of The World Bank FOR OFFICIAL USE ONLY Report No: 58263-AFR Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 19.8 MILLION (US$31.0 MILLION EQUIVALENT) Public Disclosure Authorized TO THE REPUBLIC OF SIERRA LEONE AND A PROPOSED CREDIT IN THE AMOUNT OF SDR 16.3 MILLION (US$25.6 MILLION EQUIVALENT) TO THE REPUBLIC OF LIBERIA FOR THE Public Disclosure Authorized WEST AFRICA REGIONAL COMMUNICATIONS INFRASTRUCTURE PROJECTS (APL 1A) UNDER THE FIRST PHASE OF THE WEST AFRICA REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM (APL1) IN A GLOBAL AMOUNT EQUIVALENT TO US$300.0 MILLION December 22, 2010 ICT Sector Unit Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective December 1, 2010) Currency Unit = SDR = US$ 0.6362 = SDR 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 AICD Africa Infrastructure Country Diagnostic APL Adaptable Program Loan BP Bank Procedures C&MA Construction and Maintenance Agreement CAS Country Assistance Strategy CCL Cable Consortium for Liberia EASSy Eastern Africa Submarine Cable System ECOWAS Economic Community of West African States EEZ Exclusive Economic Zone EIA Environmental Impact Assessment EMP Environnemental Management Plan ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESMAP Energy Sector Management Assistance Program FDI Foreign Direct Investment FM Financial Management Gbps Gigabit per Second GDP Gross Domestic Product GoL Government of Liberia GoSL Government of Sierra Leone GPT General Purpose Technology GSM Global System for Mobile Communication GTZ Gesellscharft für Technische Zusammenarbeit HIPPSA Harmonization of ICT Policies in Sub-Saharan Africa ICT Information and Communication Technology IDA International Development Association IFC International Finance Corporation 2 IFR Interim Financial Report IRU Indefeasible Rights of Use ISP Internet Service Provider ITES Information Technology Enabled Services ITU International Telecommunication Union IXP Internet Exchange Point LDC Least Developed Country LTA Liberia Telecommunications Authority M&E Monitoring and Evaluation Mb Megabyte MIGA Multilateral Investment Guarantee Agency Mbps Megabit per second NCBC National Communications Backbone Company OD Operational Directives OMVS Organisation pour la mise en Valeur du fleuve Sénégal OP Operational Procedures OPGW Optical Ground Wire ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PDO Project Development Objective PIU Project Implementation Unit PPA Project Preparation Advance PPIAF Public-Private Infrastructure Advisory Facility PPP Public Private Partnership RAP Resettlement Action Plan REP Regional Economic Plan RIAS Regional Integration Assistance Strategy RPF Resettlement Policy Framework R-PRSP Regional Poverty Reduction Strategy Paper SAFE South Africa Far East Cable SAT- South Atlantic 3/West Africa Submarine Cable 3/WASC SALCAB Sierra Leone Cable Limited SIL Specific Investment Loan SMART Specific, Measureable, Achievable, Relevant, Timebound SME Small and Medium Enterprise SPV Special Purpose Vehicle SSA Sub-Saharan Africa TA Technical Assistance UNPAN United Nations Public Administration Network WACS West Africa Cable System WAPP West Africa Power Pool WARCIP West Africa Regional Communications Infrastructure Program WATRA West Africa Telecommunications Regulators Authority WBG World Bank Group 3 Vice President: Obiageli Katryn Ezekwesili Regional Integration Director: Yusupha B. Crookes Sector Director: Jose Luis Irigoyen Country Director for Liberia and Sierra Leone: Ishac Diwan Sector Manager: Philippe Dongier Task Team Leaders for WARCIP: Mavis Ampah and Boutheina Guermazi Task Team Leader for WARCIP- Sierra Leone: Mavis Ampah Task Team Leader for WARCIP- Liberia: Boutheina Guermazi 4 Table of Contents I. Strategic Context ..................................................................................................................... 1 A. Regional and Country Context ......................................................................................... 1 B. Sectoral and Institutional Context .................................................................................... 2 C. Higher Level Objectives to which the Program Contributes ........................................... 8 II. Program Development Objectives ........................................................................................ 12 A. PDO ................................................................................................................................ 12 1. Program Beneficiaries ................................................................................................ 12 2. PDO Level Results Indicators for APL1-A ................................................................ 13 III. Program Description .......................................................................................................... 13 A. Program Components ..................................................................................................... 13 B. Program Financing ......................................................................................................... 16 1. Lending Instrument ..................................................................................................... 16 2. Indicative Program costing Table Financing Table. ................................................... 17 C. Lessons Learned and Reflected in the Program Design ................................................. 18 IV. Implementation .................................................................................................................. 19 A. Institutional and Implementation Arrangements ............................................................ 19 B. Results Monitoring and Evaluation ................................................................................ 20 C. Sustainability .................................................................................................................. 21 V. Potential Risks and Mitigation .............................................................................................. 21 VI. Appraisal Summary ................................................................................................................ 23 A. Economic and Financial Analysis .................................................................................. 23 B. Technical ........................................................................................................................ 24 C. Financial Management ................................................................................................... 24 D. Procurement ................................................................................................................... 24 E. Social and Environment ................................................................................................. 24 Annex 1: Results Framework and Monitoring.............................................................................. 27 Annex 2: Detailed Program Description ...................................................................................... 29 Annex 3: Implementation Arrangements ..................................................................................... 39 Annex 4 Operational Risk Assessment Framework (ORAF) ....................................................... 50 Annex 5: Implementation Support Plan ........................................................................................ 53 Annex 6: Team Composition ........................................................................................................ 56 Annex 7: Economic and Financial Analysis ................................................................................. 58 Annex 8: Cable Route Map for ACE Cable .................................................................................. 62 5 WEST AFRICA REGIONAL COMMUNICATIONS INFRASTRUCTURE PROGRAM ADAPTABLE PROGRAM LOAN (APL1-A) FOR LIBERIA (WARCIP LIBERIA) AND SIERRA LEONE (WARCIP SIERRA LEONE) PROGRAM APPRAISAL DOCUMENT AFRICA ICT Sector Unit Date: December 22, 2010 Sector(s): Telecommunications (50%), Country Director: Yusupha Information technology (50%) Crookes Sector Director: Jose Luis Theme(s): Regional integration (40%), Irigoyen Regulation and competition policy (40%), Country Director for Liberia and Infrastructure services for private sector Sierra Leone: Ishac Diwan development (20%) Sector Manager: Philippe Dongier Team Leader(s): Mavis Ampah, EA Category: B (Partial Assessment) Boutheina Guermazi Project ID: P116273 Lending Instrument: APL Project Financing Data: 6 Proposed terms: IDA Credit on regular terms, with maturity 40 years, including grace period of 10 years. [ ] Loan [ X ] Credit [ ] Grant [ ] Guarantee [ ] Other: Source Total Amount (US$M) Total Program Cost: US$300.0 million of which APL1-A US$56.6 million APL1-B US$88.0 million APL2 US$55.5 million APL3 US$94.9 million Regional Grant US$ 5 million Total Project (APL1-A) Cost US$56.6 million Co-financing: