Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD2661 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF EURO 89.2 MILLION (US$100 MILLION EQUIVALENT) TO THE Public Disclosure Authorized REPUBLIC OF BENIN FOR THE DIGITAL RURAL TRANSFORMATION PROJECT June 10, 2019 Public Disclosure Authorized Digital Development Global Practice Africa Region This document has a restricted distribution and may be used by recipients only in the performance of Public Disclosure Authorized their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2019) Currency Unit = CFA Franc Euro 0.89190 = US$1 US$ 1. 1212 = Euro 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez Ghanem Country Director: Pierre Frank Laporte Global Practice Director: Boutheina Guermazi Practice Manager: Michel Rogy Task Team Leaders: Marc Lixi, Erick Abiassi, Fatou Fadika ABBREVIATIONS AND ACRONYMS ABSU-CEP Universal Telecommunications Service National Agency (Agence Béninoise du Service Universel des Communications Electroniques et de la Poste) ADC Alternative Delivery Channel ADN Digital Development Agency of Benin (Agence pour le Développement du Numérique) AFD French Development Agency (Agence Française de Développement) AI Artificial Intelligence AML/CFT Anti-Money Laundering/Countering the Financing of Terrorism APDP Data Protection Agency (Autorité de Protection des Données à Caractère Personnel) ARPU Average Revenue Per User ARCEP Telecommunications Regulatory Authority of Benin (Autorité de Régulation des Communications Electroniques et de la Poste) ASSI Information Services and Systems Agency of Benin (Agence des Services et Systèmes d’Informations) ATDA Territorial Agency for Agricultural Development (Agence Territoriale de Développement Agricole) AWPB Annual Work Plan and Budget BCEAO Central Bank of West African States (Banque Centrale des États de l'Afrique de l'Ouest) CAA Autonomous depreciation fund (Caisse Autonome d’Amortissement) CAPEX Capital Expenditure CDMA Code-division multiple access CEA Cost Effectiveness Analysis CEI Cost Effectiveness Indicator CNIL National Commission for IT and Freedoms (Commission Nationale de l'Informatique et des Libertés) CNRA National Center for Agronomic Research (Centre National de Recherche Agronomique) CPF Country Partnership Framework CSA Agriculture Service Center (Centre de Service Agricole) DA Designated Account DAF Directorate of Administration and Finance DE4A Digital Economy for Africa (Digital Moonshot) DBI Doing Business Index DFIL Disbursement and Financial Information Letter ECOWAP Economic Community of West Africa Agriculture Program ECOWAS Economic Community of West African States EHS / OHS Environment/Occupational, Health and Safety ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FAO Food and Agriculture Organization of the United Nations FI Financial Institutions FIRCA Interprofessional Fund for Research and Agricultural Council (Fonds Interprofessionnel pour la Recherche et le Conseil Agricole) FM Financial Management FNM National Microfinance Funds (Fonds National de la Microfinance) The World Bank Benin Digital Solutions for Sustainable Development (P162599) FRR Financial Rate of Return FY Fiscal Year GBV Gender-based Violence GDP Gross Domestic Product GIL Gender Innovation Lab GPFI Global Partnership for Financial Inclusion GRM Grievance Redress Mechanisms GRS Grievance Redress Service GSMA Global System for Mobile communications Association ha Acre (hectare) IBRD International Bank for Reconstruction and Development ICT Information and Communication Technology IDA International Development Association IFC International Finance Corporation IFAD International Fund for Agriculture Development IFRs Interim Financial Statements IGF General Inspectorate of Finance (Inspection Générale des Finances) INSEA National Statistical Agency (Institut National de la Statistique et de l’Analyse Economique) IoT Internet of Things IPF Investment Project Financing KYC Know Your Customer LDC Least developed countries LiM Labor-intensive Method M&E Monitoring and Evaluation MAEP Ministry of Agriculture and Fisheries (Ministère de l’Agriculture, de l’Elevage de la Pêche) MCM Mobile Micro-Credit (Micro-credit mobile) MEF Ministry of the Economy and Finance (Ministère de l’Economie et des Finances MFD Maximizing Financing for Development MENC Ministry of Communication and Digital Economy (Ministère de l’Economie Numérique et de la Communication) MFI Microfinance Institution MIS Management Information System MNO Mobile Network Operator MOD Delegated Management Contract (Maîtrise d’Ouvrage Déléguée) NGO Non-governmental organization NPF New Procurement Framework NPV Net Present Value NRA National Regulatory Authority NRI Network Readiness Index NSRM National Strategy for Rehabilitation and Maintenance OCRC Central Office for the Suppression of Cybercrime (Office central de répression de la cybercriminalité) Page 4 of 111 The World Bank Benin Digital Solutions for Sustainable Development (P162599) OP / BP Operational Policy / Bank Policy PA Project Account PAG Government Action Plan (Programme d’Actions du Gouvernement) PADA Agriculture Sector Support Project (Projet d'Appui à la Diversification Agricole) PDO Project Development Objective PEFA Public Expenditure and Financial Assessments PIM Project Implementation Manual PIMA Public Investment Management Assessment PIU Project Implementation Unit PFM Public Financial Management PFR Rural Land Plan (Plan Foncier Rural) PPA Preparatory Project Advanced PfPPP People-first Public Private Partnership PPP Public Private Partnership PPSD Project Procurement Strategy for Development PSW Private Sector Window RAF Finance officer (Responsable Administratif et Financier) RAP Resettlement Action Plan RC Rural Communities RED Road Economic Decision model REOIs Requests for Expressions of Interest RPF Resettlement Policy Framework SCD Systematic Country Diagnostics SDG Sustainable Development Goal SMEs Small and Medium Enterprises SMS Short Message Service SoE Statement of Expenditures SPN Specific Procurement Notices SSA Sub-Saharan Africa TA Technical Assistance TIC Information and Communication Technology (Technologie de l’Information et de la Communication) ToR Terms of Reference UCS Use of Country System VAT Value-added Tax VfM Value for Money WAAPP West Africa Agricultural Productivity Program WAEMU West African Economic and Monetary Union WARCIP Western Africa Regional Communications Infrastructure project WSIS World Summit on the Information Society Page 5 of 111 The World Bank Benin Digital Rural Transformation (P162599) BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Benin Digital Rural Transformation Project Project ID Financing Instrument Environmental Assessment Category Investment Project P162599 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 01-Jul-2019 31-Jul-2024 Bank/IFC Collaboration No Proposed Development Objective(s) To improve access to broadband services in targeted rural communities and promote the use of digital solutions to improve efficiency of selected value-chains, financial inclusion and access to markets. Components Component Name Cost (US$, millions) Extending connectivity in rural areas 45.00 Page 1 of 111 The World Bank Benin Digital Rural Transformation (P162599) Digital financial inclusion and skills 16.00 Digital solutions for rural development 10.00 Access to markets 20.00 Project implementation 9.00 Organizations Borrower: Republic of Benin Implementing Agency: Ministère de l'Economie Numérique et de la Communication PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 100.00 Total Financing 100.00 of which IBRD/IDA 100.00 Financing Gap 0.00 DETAILS-NewFinEnh1 World Bank Group Financing International Development Association (IDA) 100.00 IDA Credit 100.00 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount National PBA 100.00 0.00 0.00 100.00 Total 100.00 0.00 0.00 100.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2020 2021 2022 2023 2024 2025 Page 2 of 111 The World Bank Benin Digital Rural Transformation (P162599) Annual 8.34 18.06 24.97 25.24 23.39 0.00 Cumulative 8.34 26.40 51.37 76.61 100.00 100.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Agriculture, Finance, Competitiveness and Innovation, Digital Development Transport Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of Yes country gaps identified through SCD and CPF b. Specific action(s) to address the gender gaps identified in (a) and/or to improve